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County agrees formula to cover post‑judgment property sale losses, to use contingency account
Summary
After staff reported one auctioned parcel yielded a surplus and another will sell at a loss, the committee agreed on a contingency‑fund approach to cover post‑judgment sale losses net of municipal reimbursements and asked staff to return with policy language; committee consensus was 5‑0.
County staff told the Personnel & Finance Committee that a recent auction produced a small surplus (about $2,500) but that another property will likely sell at a loss. To address post‑judgment sale costs (utility bills, lawn and snow removal, appraisals, recording fees), staff has established a liability account to record these expenses and proposed that a contingency fund cover net losses after municipal reimbursement.
The presenting staff member said the county will bill municipalities for their share of special assessments where applicable; in a recent example staff said the city covered $19,000 of a $20,000 loss on a prior property, leaving the county exposure limited to the county's tax share. Supervisors discussed setting a reserve amount and using a contingency account so losses do not repeatedly flow through operating budgets.
Supervisors agreed on a practical formula for tracking and handling losses, asked staff to bring back a formal usage policy for the Opportunity/contingency fund and voted to proceed by consensus (5‑0). Staff said they will return next month with more detailed numbers and policy language.
