This statement is in response to several front page articles that appeared in the Greeley Tribune regarding the Office of the Public Trustee (“ the Office”). This statement clarifies various inaccuracies and responds to other criticisms that have been included in these articles.
Colorado is the only state in the United States with a Public Trustee/Deed of Trust system. The Office was established by state legislation as a specific, independent office and its duties are specifically defined by statute. As such, the Office of the Public Trustee is intended to be autonomous so that it can act as a neutral party between the foreclosing party and the lenders.
The Office is very different from a county department. Where counties are given general and usually broad powers, Public Trustees are given specific duties. The Public Trustee cannot use discretion to create new ways of processing foreclosures or deeds of trust. In addition, the statute requires a legal notice be published in a newspaper of general circulation with every foreclosure. However, if the foreclosing party designates a certain newspaper to be used for the legal notice, the Public Trustee must comply with that designation. Legal notices from the Office of the Public Trustee are published in two newspapers, the Greeley Tribune and Windsor Beacon.
The Greeley Tribune at one time published all legal notices from the Office of the Public Trustee. In 2006, after a lawsuit by the Greeley Tribune against the former Public Trustee, a settlement agreement was reached by the Greeley Tribune and the former Public Trustee. As a result of that settlement agreement and because law firms designated the choice of publication, the Greeley Tribune now receives a much smaller number of legal notices from the Office of the Public Trustee than does the Windsor Beacon. For example, the Greeley Tribune’s revenue for the one year period of July 11, 2011 to July 11, 2012 totaled $69, 296.98. During that same time period, the Windsor Beacon’s revenue totaled $181,506.21.
The Greeley Tribune, in the past and recently, contacted the Office of the Public Trustee in person and by email requesting information on how they can make a bid for the legal notices published by the largest law firms. The Greeley Tribune by the terms of the Settlement Agreement was put on notice that there is not a bid process for foreclosure notices. State statute dictates the process for obtaining publications and that is by designation. The two largest law firms have designated the Windsor Beacon as their choice for publication of legal notices. In spite of the settlement agreement entered by the Greeley Tribune and in spite of the law firms designating the Windsor Beacon as their choice for publication, the Greeley Tribune continues to contact the current Public Trustee, most recently by email dated June 25, 2012, attempting to obtain the publications that are designated to be published in the Windsor Beacon.
The Office of the Public Trustee receives NO TAX DOLLARS. The Office is funded completely by the fees that are paid by the parties using its services. In the past few years when the number of foreclosures has been high, there have been enough fees to cover expenses. However, in the event that fees are low and inadequate to cover the Public Trustee salary then the Public Trustee would not be paid. Statements that the taxpayers could save money by rearranging the Office of the Public Trustee are premised on a misunderstanding of its funding since taxpayers have NEVER funded the Office of the Public Trustee.
The Public Trustee discussed having the Office pay the attorney registration and bar dues with the Director of Finance for the county. According to notes dated April 16, 2007, the Public Trustee, in a meeting with the Director of Finance, was advised that attorney registration and bar dues were allowable expenses. Based on the advice of the Director of Finance, bar dues in the amount of $310 to the Colorado Bar Association and attorney registration of $225 to the Colorado Supreme Court were indeed paid. The Public Trustee is willing to cover the attorney registration expense if the County now thinks their former position was ill advised. The Office benefits from having an attorney serve as the Public Trustee and the Public Trustee does not use the attorney license to practice law at any other office. It is unfair to portray the Public Trustee as attempting to act surreptitiously or unprofessionally in this regard. Claims of “extra” spending and “questionable” payments are simply unfounded. All of the expenses of the Office are reasonable and related to its operations.
The Office of the Public Trustee in Weld County is in an even more unique situation in that Weld County is one of only two Home Rule Counties. Each Home Rule County has its own unique Home Rule Charter which grants authority and provides the law under which the County must operate. The Public Trustee is appointed by the Governor, hence, the Office of the Public Trustee is not a recognized department of Weld County. In addition, the Weld County Treasurer cannot absorb the duties of the Office of the Public Trustee as this action is not authorized by the Charter. Accordingly, the County Commissioners have consistently refused to recognize the Office of the Public Trustee and its employees as being part of Weld County. Weld County has consistently refused to provide any form of benefits to employees of the Office of the Public Trustee. Some former Public Trustees have specifically requested that Public Trustee employees receive insurance coverage from Weld County but those requests were denied. Attached is a memo and letter from the County that were issued by two former Weld County administrations rejecting those requests. The claim of some that the employees of the Office could have received County employee benefits is contrary to the longstanding legal position taken by Weld County over the years. The Office of the Public Trustee provides insurance coverage for its employees and this has been the practice since well before the current Public Trustee was appointed. The Office of the Public Trustee acts within its legal authority to provide this benefit to its employees.
Statements were made by Weld County public officials that the Office could have had free office space. Weld County officials have never offered any space for lease or otherwise to the current Public Trustee. Statements that the Office of the Public Trustee could have had free space for its office provided by the County are inaccurate.
The statute does require the county to provide all office supplies to the Office of the Public Trustee each year, but the Office has been self-supporting relying only on the fees paid to the office. Weld County has never provided office supplies to the Office of the Public Trustee as required by state statute.
The state statute requires the Office of the Public Trustee to provide to the county a financial report on a quarterly basis, and the county also audits all of the Public Trustee’s financial records annually. In addition, the statute requires that any funds in the Office that are not required to pay for any of its expenses be paid over to the County. Only recently, when larger sums of excess funds have been paid to the County, the County has taken an interest in the Office of the Public Trustee. It is likely that the phenomenon of excess funds will diminish in the future as a result of a lower number of foreclosures.
Weld County officials have had the opportunity to review and audit the financial reporting, and they appear to have taken advantage of those opportunities. Regardless, they have never raised any questions or concerns about the income or expenses of the Office. In addition, the expense for health insurance coverage for the employees of the Office has been included in the financial reports. Weld County officials cannot now claim surprise that these expenses were paid by the Office of the Public Trustee.
The Office of the Public Trustee has been run in an efficient and cost effective manner. Any claims to the contrary are unsupported. The Office has become technologically efficient, becoming totally electronic in 2007, and implements the state statutes to the best of its ability. Its employees perform their duties very well and are to be commended for their service to the public.
In closing, I thank the Greeley Tribune for the opportunity to respond to its articles. The Office of the Public Trustee will take this opportunity to review its operations and if it identifies any deficiencies in its office operations, it will correct them consistent with Colorado law. The Office of the Public Trustee will continue to provide the superb service as it has done in the past.
Respectfully submitted by
Susie Velasquez, Public Trustee
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