FAYETTEVILLE -- Washington County could owe the state up to $1 million in foreclosure filing fees, the county treasurer said Tuesday.
Fees for non-judicial foreclosures, which start at $140, are supposed to go to the state's Administration of Justice Fund, which distributes the money to Legal Aid of Arkansas, the State Police and other legal and law enforcement groups. Washington County hasn't turned in the money to the state since the fee was put in place in 2008.
Unpaid Foreclosure Fees
Washington County could owe the state the following amounts for fees it neglected to pay:
• 2008: $151,200
• 2009: $213,239
• 2010: $248,495
• 2011: $158,200
• 2012: $78,960
• 2013: $107,380
• 2014: $42,560
• Total: $1,000,034
Source: Washington County
Treasurer Bobby Hill, County Judge Marilyn Edwards and Circuit Clerk Kyle Sylvester blamed "a series of clerical errors" for the mistake in a letter to the Quorum Court. The county could owe between $500,000 and $1 million, the letter states. The officials wrote they're working with the state to soften the blow, either with some amount forgiven or a payment plan.
Whatever the county owes would come from the county's general fund, Cheryl Bolinger, comptroller, said. The general fund sustains county courts, Sheriff's Office patrols and most county administration. This year the fund's budgeted to spend about $28.5 million, leaving over about $6.5 million in all-purpose reserve.
Hill broke the news Tuesday evening during the Quorum Court's first Financial Committee meeting of the new term.
"I don't know if it's human error, computer error or what," Hill, who became treasurer last month after working as deputy treasurer under Roger Haney, told the panel. He said he found the mistake late last year.
The problem grew unnoticed because the circuit clerk's office tagged the money as general "miscellaneous fees" instead of on its own, Hill said. When the treasurer's office receives "miscellaneous fees," it simply moves them into the county's general fund. An average of $143,000 each year was moved by mistake this way, according to the letter to the Quorum Court.
The mistake began before Hill, Sylvester or Edwards came into their current offices, the letter states. State auditors also missed the mistake every year, it says.
Hill said he fixed the problem and reported it to the state. The Finance Committee took the news calmly.
"It's unfortunate that this has happened when we're in a tight budget year," Ann Harbison, Democrat of West Fork, told Hill. "I'm hoping that we can work out an agreement where we don't have to pay the full amount."
The news comes amid several simultaneous budget troubles.
The Quorum Court set this year's $58.7 million overall budget by slashing about $4 million from from last year's, much of it from the Road Department and general fund. The cuts were an effort to rebuild the county's reserve, which generally goes toward emergencies and large projects and has dwindled in recent years because of growing costs of the county jail and road maintenance.
Hill reported Tuesday the jail needed an $800,000 infusion from the general fund in January so it had enough cash on hand to operate. That amount is a third of what the Quorum Court set aside in the general fund to help the jail in such a situation for the entire year. The jail's 2015 budget is almost $14 million.
The state is also behind on its reimbursement payments to the jail for holding hundreds of state inmates, Hill said. The state paid about $960,000 out of $1.24 million in bills from the county between July and Feb. 5, according to the Department of Correction.
Lisa Ecke, Republican from District 6 in southeast Springdale, got some laughs from other Quorum Court members when she suggested the state put the missing amount toward the county's filing fee debt.
NW News on 02/11/2015