Title
Resolution Amending the Fiscal Year 2020 Council Approved Budget and Appropriating $18,564.00 from Assigned Fund Balance - City Attorney Fees to the Fiscal Year 2020 Operating Budget of the City Attorney as Authorized by Virginia Code §58.1-3969
Purpose
PURPOSE/BACKGROUND: The Treasurer has the authority to sell land for delinquent taxes in accordance with Code of Virginia §58.1-3965 et. seq. Those sections generally 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. For sales that do not require the filing of a suit, attorneys' fees are also specifically authorized by the relevant section of the Code of Virginia. 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.
Discussion:
On September 17, 2018, the Treasurer, with the assistance of the City Attorney, conducted an auction for the sale of certain properties, including five properties which sold for an amount in excess of the amount of the taxes due and cost of the sale. These properties were 1) 1 Silk Tree Place (RPC #4003145), assessed at $154,500.00; 2) 21 East Sherwood Avenue (RPC #12002384), assessed at $37,500.00; 3) 69 Cape Dorey Drive (RPC #7002648), ass...
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