FAYETTEVILLE -- Washington County has enlisted the help of a state legislator to negotiate with the state over the payment of $1 million the county owes from foreclosure fees, the county attorney said Tuesday.
Attorney Steve Zega gave an update on the issue during the Quorum Court finance committee's evening meeting. Updates on last month's county sales taxes, spending and other concerns also were part of the meeting.
Unpaid fees
Washington County could owe the state the following amounts for foreclosure 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 revealed last month the county hadn't transferred fees for non-judicial foreclosures, which start at $140, to the state since the fee was put in place in 2008. They said it was an honest mistake they reported to state officials as soon as they noticed it late last year.
The county kept about $1 million from the fees as "miscellaneous fees" in the general fund instead of sending it as required by law to the state's Administration of Justice Fund. The Arkansas Department of Finance and Administration oversees the fund.
"Basically everybody involved in the justice system gets a little piece of it (the fund)," county attorney Steve Zega said Tuesday. He said discussions with the finance department on how to pay back the money so far had been blunt. "They want all of their money. Condition 2 is they want it in a calendar year."
Zega went to the county's representatives in the General Assembly to talk with state officials about softening the blow, either with some amount forgiven or a more gradual payment plan. Whatever the county owes would come from the general fund, which 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 for unexpected or major expenses.
Rep. Micah Neal, R-Springdale, agreed to take the lead in the discussions, Zega said. Neal didn't return a phone message requesting comment Tuesday evening.
"I'm going tomorrow to have a face-to-face with him in Little Rock," Zega told the committee members Tuesday.
The justices of the peace said they were in no hurry to pay back the money until the discussions were done. Lisa Ecke, Republican of Springdale, said Zega should "appeal and appeal and appeal" to fight the state's demands. Joel Maxwell, Republican of Siloam Springs, noted the state's own auditors missed the mistake for seven years.
"It's kind of their job to make sure it doesn't get to this point," he said.
Harvey Bowman, a Springdale Republican, asked if other counties are having similar issues, saying Washington County could join with them instead of being a "lone soldier in the field with everybody firing at us." Zega said he didn't know for sure but suspected at least a couple of the state's larger counties had the same problem.
"I get the sense the state had things it didn't want asked," Zega said. "I suspect that there's sort of a vigor about collection (on the state's part) that suggests we're not the only county."
In other business, the treasurer said last month's sales tax revenues, which go to roads, the county jail and the general fund, were the highest they'd been in years. The county's preliminary assessed property value this year is also up about 1 percent from last year's, reaching $3.37 billion, he said.
"All in all, a very good month," Hill said.
Dan Holtmeyer can be reached at dholtmeyer@nwadg.com and on Twitter @NWADanH.
NW News on 03/11/2015