Title
Resolution Appropriating $17,270.00 of the Unassigned General Fund Balance to the Fiscal Year 2017 Operating Budget of the City Attorney as Authorized by Virginia Code §58.1-3969
Purpose
Purpose/Background:
The Treasurer has the authority sell land for delinquent taxes in accordance with Code of Virginia §58.1-3965 et. seq. Those sections require the filing of suit and the appointment of a special commissioner to conduct the sale of the property by auction. Pursuant to Code of Virginia §58.1-3969, the court shall allow as part of the cost payable from the proceeds of such land sales a reasonable sum to defray attorneys’ fees and other expenses relate to such suits. The majority of localities employ outside counsel to conduct these sales. Prior to 2015, sales in Hampton were conducted by outside counsel. Outside counsel took their fees from the sale prior to the satisfaction of delinquent taxes for the properties. Beginning in 2015, the arrangement with outside counsel was terminated and the process was brought in house for the City Attorney and her staff to personally assist the Treasurer with this process. The City Attorney’s office only receives attorneys’ fees if there are surplus funds after the delinquent taxes on the properties are paid.
On September 15, 2016, the Treasurer, with the assistance of the City Attorney, conducted an auction for sale of certain properties, including (1) 319 Ivy Home Road (LRSN: 2002133), an improved parcel with a current assessed value of $96,900; (2) 945 Mason Street (LRSN: 8000798), an unimproved parcel with a current assessed value of $20,100; and (3) Fulton Street Parcel ID # 1261330000009 (LRSN: 12002107), an unimproved parcel with a current assessed value of $3,600.00; and (4) 15 Lacrosse Street (LRSN: 12002724), an unimproved parcel with a current assessed value of $13,300.
By Orders entered by the Circuit Court of the City of Hampton on November 18, 2016, the Court ordered Attorneys’ Fees as follows: (1) in Case No. Case No. CL15-2182 in the amount of $3,500.00 for the sale of 319 Ivy Home Road; (2) in Case No. CL15-2189 in the amount of $2,000.00 for the sale of 945 Mason Street; (3) in Case No. CL16-1290, in the amount of $470.00 for the sale of the Fulton Street parcel.
The successful bidders paid, in full, the bid price and all costs and fees owed pursuant to the sales described above. On January 20, 2017, the Treasurer transferred the total sum of $5,970, which is the combined total of Attorneys’ Fees awarded in the Orders described above. Those funds are currently held in the Unassigned Fund Balance.
By Order entered by the Circuit Court of the City of Hampton on January 3, 2017 in Case No. CL16-1294, the Court ordered Attorneys’ Fees in the amount of $400.00 for the sale of 15 Lacrosse Street, also sold during the September 15, 2016 auction.
The successful bidder paid, in full, the bid price and all costs and fees owed pursuant to the sales described above. On February 7, 2017, the Treasurer transferred the total sum of $400, which is the combined total of Attorneys’ Fees awarded in the Orders described above. Those funds are currently held in the Unassigned Fund Balance.
On December 15, 2016, the Treasurer, with the assistance of the City Attorney, conducted an auction for sale of certain properties, including (1) 216 Manchester Drive (LRSN: 3002821), an improved parcel with a current assessed value of $141,900; and (2) 28 Mitchell Road (LRSN: 8002515), an unimproved parcel with a current assessed value of $32,000.
By Orders entered by the Circuit Court of the City of Hampton on January 24, 2017, the Court ordered Attorneys’ Fees as follows (1) in Case No. CL16-1806 in the amount of $7,000.00 for the sale of 216 Manchester Drive; and (2) in Case No. CL16-1648 in the amount of $3,900.00 for the sale of 28 Mitchell Road.
The successful bidders paid, in full, the bid price and all costs and fees owed pursuant to the sales described above. On February 7, 2017 the Treasurer transferred to the total sum of $10,900, which is the combined total of Attorneys’ Fees awarded in the Orders described above. Those funds are currently held in the Unassigned Fund Balance.
The total amount of Court-Ordered Attorneys’ Fees is $17,270.
The City Attorney’s office expended personnel costs and other office resources for the purpose of instituting the requisite suits, proceeding with auction, confirming the sales and all other actions necessary for the sale of those parcels. Primary counsel to the Treasurer in those matters was Brandi Law.
The purpose of the resolution below is to appropriate to the City Attorney’s office those sums ordered by the Circuit Court of the City of Hampton to be paid to the treasury of the City to defray the costs incurred by the City Attorney’s office.
Discussion:
See Purpose/Background above.
Impact:
See Purpose/Background above.
Recommendation:
Rec
Approve the Resolution.
Body
WHEREAS, the Treasurer has the authority sell land for delinquent taxes in accordance with Code of Virginia §58.1-3965 et. seq.;
WHEREAS, instead of using an outside law firm, the City Attorney is now providing legal assistance to sell the aforementioned land at a cost savings to the City;
WHEREAS, pursuant to Code of Virginia §58.1-3969, the court shall allow as part of the cost payable from the proceeds of such land sales a reasonable sum to defray the cost of its attorneys (“Attorneys’ Fees”);
WHEREAS, the City Attorney has chosen not to recover Attorneys’ Fees unless there are sufficient proceeds to pay off delinquent taxes and administrative fees first;
WHEREAS, on September 15, 2016, the Treasurer, with the assistance of the City Attorney, conducted an auction for sale of certain properties;
WHEREAS, on November 18, 2016, the Circuit Court of the City of Hampton ordered Attorneys’ Fees to be paid in the following amounts:
$3,500.00 in Case No. CL15-2182 for the sale of 319 Ivy Home Road (LRSN: 2002133),
$2,000.00 in Case No. CL15-2189 for the sale of 945 Mason Street (LRSN: 8000798),
$470.00 in Case No. CL16-1290 for the sale of Fulton Street Parcel ID # 1261330000009
(LRSN: 12002107);
WHEREAS, on January 20, 2017 the Treasurer transferred to the General Fund the total sum of $5,970, which is the combined total of Attorneys’ Fees awarded in the Orders described above;
WHEREAS, by Order entered by the Circuit Court of the City of Hampton on January 3, 2017 in Case No. CL16-1294, the Court ordered Attorneys’ Fees in the amount of $400.00 for the sale of 15 Lacrosse Street (LRSN: 12002724), also sold at the September 15, 2016 auction;
WHEREAS, on February 7, 2017 the Treasurer transferred to the General Fund the total sum $400, respectively which is the total of Attorneys’ Fees awarded in the Order described above;
WHEREAS, on December 15, 2016, the Treasurer, with the assistance of the City Attorney, conducted an auction for sale of certain properties;
WHEREAS, on January 24, 2017, the Circuit Court of the City of Hampton ordered Attorneys’ Fees to be paid in the following amounts:
$7,000.00 in Case No. CL16-1806 for the sale of 216 Manchester Drive (LRSN: 3002821);
$3,900.00 in Case No. CL16-1648 for the sale of 28 Mitchell Road (LRSN: 8002515);
WHEREAS, on February 7, 2017 the Treasurer transferred to the General Fund the total sum of $10,900, which is the combined total of Attorneys’ Fees awarded in the Orders described above;
WHEREAS, the total amount of Court-Ordered Attorneys’ Fees in the above referenced orders is $17,270.00; and
WHEREAS, the City Attorney expended personnel costs and other office resources for the purpose of instituting the requisite suits, proceeding with auction, and all other actions necessary for the sale of the sale of certain land.
NOW, THEREFORE, BE IT RESOLVED by the City Council of Hampton, Virginia, that the sum of $17,270.00 is hereby appropriated from Unassigned General Fund Balance to the Fiscal Year 2017 Operating Budget of the City Attorney in reimbursement for costs incurred in the sale of certain land in accordance with Code of Virginia §58.1-3965 et. seq.