Treasurer outlines personnel reallocation, foreclosure collections and new investment pool charges

Deborah Gardner, Caltech County treasurer, presented proposed budget adjustments that would shift portions of payroll and IT allocations across three funds the treasurer manages and described steps the office has taken to reduce delinquent personal property collections. “If this gets approved in the personnel process in October… we’re looking at saving the general fund around $43,000,” Gardner said, adding that if the personnel request is approved the savings could increase to “more like $89,000”.

The treasurer’s office manages three funds in Gardner’s description: the general fund (treasurer’s general fund), the treasurer’s O&M (operations and maintenance) fund that covers direct costs arising from foreclosure and restraint on property, and a treasurer investment fund that pays for the county’s investment pool. Gardner said the O&M fund is intended to cover costs arising from foreclosure and restraint on real and personal property for delinquent taxes and cited RCW 84.56.020 as the statute under which that restricted fund operates.

Gardner described steps to reduce costs and reallocate expenses: she proposed shifting a percentage of her salary and a chief deputy’s salary to other funds, changing combo codes for positions that serve multiple funds, and reworking one deputy’s job description so foreclosure and collections duties are shared. “We put a small percent… changing our cost combo codes for those… and that saved a little bit,” she said. If the personnel change is approved, Gardner said the change would allow 50% of a position’s cost to be paid from the treasurer O&M fund and 50% from the general fund.

On collections, Gardner said the office has been more proactive on personal property delinquency. She said her office inherited a backlog of delinquent personal property accounts when the current foreclosure deputy took over and that the backlog has been substantially reduced: “When she took over… there were around 300 properties that were delinquent in personal property… As of today… we’re just looking at 25 delinquencies.” She described closer coordination with the assessor’s office to update records and identify closed businesses to improve collection outcomes.

Gardner also described the treasurer investment fund and the investment pool the county established in 2023. The pool uses SymPro software for portfolio accounting and an adviser paid out of the investment fund. Gardner said the county charges participating entities a fee based on the pool’s expenditures and the fund balance to cover SymPro and adviser costs and that starting January 1, 2026 the payroll for the investment banking officer will be split 50/50 between the general fund and the investment fund rather than being fully charged to the general fund.

Gardner said she does not control general fund revenue streams (property taxes, leasehold tax, timber tax, penalties and interest) but that she and the finance director estimated conservative interest earnings for the budget given changing Federal Reserve policy. She told commissioners she will bring the personnel changes back through the personnel process and to the board if required.