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Winnebago County to sell 2018 loader to Brown County, accept projected $61,000 paper loss
Summary
County staff recommended selling a 2018 loader to Brown County for $40,500 (plus transfer of a 2012 loader valued at $14,500) and noted a depreciation scheduling error that produced a projected $61,000 budget loss; the board approved the transaction.
Winnebago County operations staff presented a plan to replace a 2018 loader and to sell that machine to Brown County, explaining a discrepancy between the asset’s book value and market/trade‑in value due to an extended 15‑year depreciation schedule applied at purchase.
The presenter (S7) said the 2018 loader’s current net book value was approximately $116,000 under the county’s records but that an assessment tied to a state RFP and Volvo’s market assessment placed the current market/trade value at about $55,000. Brown County offered $40,500 cash plus transfer of a 2012 loader (valued at $14,500) for a combined $55,000. Staff recommended completing the sale and taking the anticipated net paper loss of about $61,000, which staff said was attributable to the prior depreciation schedule rather than an operational loss.
Board members discussed the accounting framing and whether the motion should include language about the loss; some members suggested the loss was a bookkeeping issue tied to the earlier depreciation schedule. The motion to sell the 2018 loader to Brown County, accept the trade and the projected net budget adjustment was made, seconded and approved by voice vote.
What happens next: staff will complete the sale/transfer and record the accounting adjustment in the county’s financials; finance staff had asked the board to approve the transaction as presented.
