HomeMy WebLinkAbout20143829.tiff 2015 BUDGET MESSAGE
OFFICE OF THE WELD COUNTY PUBLIC TRUSTEE
PUBLIC TRUSTEE SYSTEM
Colorado is unique in that it has a Public Trustee system. 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 Sheriffs 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
in 2011 and 2012. Appointed Trustees serve at the pleasure of the Governor.
THE OFFICE OF THE WELD COUNTY PUBLIC 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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2014-3829
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 will create 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 2013, the Weld County Public Trustee released 17,631 deeds of trust for a total of
$267,313 in income. Additional income was derived from foreclosures,cures, etc. until the total
revenue for 2013 reached $460,156, with expenditures and adjustments of$421,889. The difference
between revenue and expenditures totaled $38,267. 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 2013, total revenue was$460,156 and projected revenue for 2014 is$337,482. The 2015 budget
shows an increase to$371,000. The income from foreclosures appears to have peaked in 2010. During
the past year, and into FY 2014,foreclosures have decreased. Through September 2014,there is a
decrease in the number of foreclosures filed over 2013. Releases have decreased due to stricter credit
requirements. Through September 2014, the Weld County Public Trustee's office processed 10,094
releases. For the same time period 2013, 14,243 releases were processed showing a decrease of 4,149
releases.
EXPENDITURES
Personnel benefits comprise the largest portion of the Public Trustee expenses. Corresponding benefits
that vary in direct proportion to salary, some of which are statutory, such as RCA and Medicare, are also
included. The Public Trustee office follows state fiscal policy determinations in the granting of annual
increases. The expenditures are budgeted in anticipation of possible approval through the state
budgeting process as authorized by the Governor. Employees contribute toward medical insurance
benefits.
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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
2013, the reserve account is set at$421,888.
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 2015.
CONCLUSION
Public hearing will be held on Friday, December 5, 2014, 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 svelasquez@wcpto.com.
Respectfully submitted,
Susie Velasquez
Weld County Public Trustee
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