HomeMy WebLinkAbout20184047.tiff2019 BUDGET MESSAGE
OFFICE OF THE WELD COUNTY PUBLIC TRUSTEE
PUBUC TRUSTEE SYSTEM
Colorado is unique in that it has a Public Trustee system that was established in 1894. The Office was
created in response to abuses of Coloradans' property rights during the Panic of 1893, and continues in
this mission to this day. Most other states handle foreclosures through a private trustee system or
through the judicial system. In Colorado, as in other states, foreclosures can also be handled judicially
through a Sheriff's sale. The Weld County Public Trustee is dedicated to protecting the rights of
borrowers, lenders and lien holders.
The primary function of the Public Trustee system is to provide an efficient and low cost way for a
creditor (lender) to have recourse on a debt secured by real property and, at the same time, provide
safeguards to the owner of the property. The Public Trustee system succeeds when it provides a
balance of procedural rights between borrowers and lenders. This is the primary mandate and strength
of the Public Trustee system in Colorado — an independent, impartial, neutral balance between two
parties of interest involving the business of lending money, acceptance of debt and recourse when
property pledged as security for the debt is released after the debt is paid, or the property is demanded
to be produced and sold so that the debt can be paid in the case of foreclosure.
In 1907, the appointment of class one and two counties was transferred from the Supreme Court to the
Governor. Since 1907, the Governor has appointed Public Trustees in the largest counties. In 2007,
Susie Velasquez was appointed by former Governor Ritter and re -appointed by Governor Hickenlooper.
Appointed Trustees serve at the pleasure of the Governor.
THE OFFICE OF THE WELD COUNTY PUBUC TRUSTEE
The Office of the Weld County Public Trustee is fully funded by fees collected for services provided. The
Office is not tax supported. Any funds received in excess of operating expenses are turned over to the
Weld County General Fund, after ensuring the maintenance of an operational reserve, as required by
law.
The Office manages the release of deeds of trust and foreclosure of deeds of trust on properties in Weld
County. This is done in accordance with guidelines and timelines set by Colorado law. The powers and
duties of the Office and procedures for the operation of the Office are defined in Title 38 of the
Colorado Revised Statutes.
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Cammunic.A.Eiains
2018-4047
BUDGET
With the passage of HB 12-1329, each Public Trustee must adopt a budget pursuant to the requirement
of Part 1, Article 1 of Title 29, C.R.S. and shall submit the budget to the Board of County Commissioners
for review. The adoption of the budget creates more transparency as the budget becomes subject to
the format and content of the Local Government Budget Law and new audit requirements.
Each Trustee's office depends on fees for services that are set pursuant to C.R.S. 38-37-104. There are
no state or county general funds in the trustee budget and the law is specific that trustees charge only
those fees authorized by law. For example, each trustee is allowed to charge $15.00 for release of a
deed of trust. In 2017, the Weld County Public Trustee released 20,355 deeds of trust for a total of
$305,598 in income. Additional income of $73,850 was derived from foreclosures, cures, etc. The total
revenue for 2017 reached $381,702 with expenditures and adjustments of $302,731. The difference
between revenue and expenditures totaled $78,971. The Public Trustee's budget has been reflected in
the county budget. It is, and has been, subject to annual audit by the county. The office of the Public
Trustee is subject to an individual annual audit pursuant to section 29-1-603(1.5) of the Colorado
Revised Statutes.
REVENUES
The income (revenue) of the Public Trustee office is estimated from the volume of releases and
foreclosure actions anticipated for the coming year. As the economy rises and falls, activity within the
real estate sector, foreclosure market and interest rates help estimate and plan for the coming year.
In 2017, total revenue was $381,702. Projected revenue for 2018 is $328,685. The 2019 Proposed
Budget shows a decrease to $325,800. The income from foreclosures peaked in 2009 when a total of
3,354 foreclosures were processed. During the past year, and into FY 2018, foreclosures have
decreased. Through October 2018, there is a decrease in the number of foreclosures filed compared to
the same time period in 2017. Releases have also decreased. Through October 2018, the Weld County
Public Trustee's office processed 14,181 releases. For the same time period 2017, 17,117 releases were
processed showing a decrease of 2,936 releases so far in 2018.
EXPENDITURES
Personnel salaries and benefits comprise the largest portion of expenses. Corresponding benefits that
vary in direct proportion to salary, some of which are statutory, such as FICA and Medicare, are also
included. Employees contribute toward medical insurance benefits. The Public Trustee office follows
state and county fiscal policy determinations in the granting of annual increases.
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ASSIGNED FUND BALANCE (Reserve Account)
The Public Trustee reserve account fluctuates from year to year. The maximum amount allowed in the
reserve account in any given year is always equal to the Public Trustee's previous year's actual operating
expense. The reserve account is typically adjusted up or down in the first quarter of each year. For FY
2017, the reserve account is set at $302,730.99.
After the reserve account is adjusted, the remainder of all other money, after expenses, is paid to the
county each quarter in the form of excess funds. These funds are held in the county's Public Trustee
Fund account until the end of the year when they are transferred to the county's general fund unless
any of those funds are needed for Public Trustee 4th quarter expenses.
BASIS OF BUDGETARY ACCOUNTING
The budget for the Public Trustee office is presented on the modified accrual basis which is consistent
with generally accepted accounting principles (GAAP). This means that revenues are recognized when
earned and expenditures are recognized when the liability is incurred.
FUTURE
Foreclosures decreased as the economy improved and the backlog of foreclosures was addressed.
Releases of deeds of trust should stabilize or increase as the real estate market improves and interest
rates remain low. It is not anticipated that additional staff will be required in 2019.
CONCLUSION
Public hearing will be held on Friday, December 7, 2018, at 9:00 a.m. at the office of the Public Trustee,
1701 23rd Avenue, Suite 250, Greeley, CO 80634. Questions or comments may also be submitted to
Susie Velasquez, Public Trustee, by calling (970) 352-4365 or email svelasauez@wcpto.com.
Pub i eld County
Susie Velasquez
Public Trustee
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RESOLUTION
OFFICE OF THE PUBLIC TRUSTEE
WELD COUNTY
STATE OF COLORADO
WHEREAS, Pursuant to C.R.S. 38-37-104(6), I, Susie Velasquez, in my capacity as the
Public Trustee of Weld County, Colorado, and as the sole officer of the Office of the Public
Trustee for that county, adopt by resolution the attached budget for the 2019 budget year and
authorize the appropriation of funds in conformity with that budget.
WHEREAS, I certify that this budget has been prepared pursuant to the requirements of
the Local Colorado Government Budget Law, 29-1-101 et seq., C.R.S. and the statutes governing
the Office of the Public Trustee 38-37-101 et seq., C.R.S.
WHEREAS, this budget is effective immediately.
RESOLVED this
(SEAL
Susie Vslesques
Public Trustee
day of December 2018.
OFFICE OF T . ' u BIC'PRUSTEE
WELD CO % TY, COLO
By:
usiublic Trustee
) 2019
WELD COUNTY PUBLIC TRUSTEE
BUDGET
2017
2018
2019
Adopted
INCOME
EXPENSE
Personnel:
Release Income after Recording Fees
Foreclosure Income from Statutory Fees
Interest Earned on Balances
Total income
Public Trustee Salary
Staff Salaries
Temporary Labor
FICA/Medicare Contribution
SUTA Taxes
Workers Comp
Retirement Plans
Medical Insurance
Education/TraininglMisc
Misc./Other
Subtotal Personnel
Operating Expenses:
AccountinglLegal Services/Contract Services
Audit CRS 38-37-104 (7)
Building/Office RentaUStorage
Dues and Meetings
Equipment Maintenance/Rental
IT Support
Office Supplies
Postage
Insurance/Bond/Liability
TelephonelUtilitles
Travel/Mileage Relmb.
Bank Fees/Corrler/Mlsc
Subtotal Operating
Capital Outlay:
Software (upgrades/new)
Computer Hardware Purchases
Office Furniture
MisciOther-relocation
Subtotal Capital Outlay
Total Expenses
NET FUNDS PAYABLE TO PUBLIC TRUSTEE SALARY FUND
Beginning Fund Balance
2017 Actual
305,598
73,850
2,254
381,702
72,500
101,111
0
13,143
515
446
13,324
31,945
808
0
233,792
2,336
10,000
25,619
1,044
4,043
7,954
8,258
226
800
3,861
1,595
3,203
68,939
0
0
0
0
302,731
78,971
312,279
2018 Actual as of 2018
2018 Budget 09/30/2018 Projected
275,000 189,977 253,303
77,000 57,903 72,000
1,800 2,536 3,382
353,800 250,416 328,685
72,500 54,375 72,500
118,000 75,896 101,195
O 0 0
15,000 9,472 12,829
600 372 495
600 400 400
13,000 9,972 13,296
34,000 25,849 34,465
1,800 75 100
O 0 0
255,500 176,411 235,082
1,700 1,211 1,614
10,000 5,750 11,000
30,000 23,928 31,904
1,300 2,128 2,837
5,000 1,739 2,319
8,100 6,047 8,063
6,500 1,234 1,645
180 569 758
800 0 0
4,100 2,617 3,489
1,400 943 1,257
3,900 2,165 2,887
72,980 48,329 67,772
0 0 0
O 0 0
O 0 0
O 0 0
O 0 0
328,480 224,741 302,854
25,320
25,676 25,831
302,731 305,267
2019 Adopted
255,000
88,000
2,800
325,800
72,500
110,000
0
14,000
550
450
13,750
37,000
500
0
248,750
1,700
12,000
32,500
2,500
2,800
8,100
1,800
650
800
3,800
1,500
3,500
71,650
0
0
0
0
0
320,400
5,400
308,067
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