Request By:
Mr. James Hite Hays
Attorney at Law
521 Main Street
P.O. Box 88
Shelbyville, Kentucky 40065
Opinion
Opinion By: Robert F. Stephens, Attorney General; By: Charles W. Runyan, Assistant Deputy Attorney General
You ask about the proper procedure for selling surplus county personal property.
There is no express statute covering this situation. However, the legislative policy relating to county surplus real estate is dealt with in KRS 65.010. In that statute the fiscal court must first determine by an appropriate order that the real estate is no longer needed to carry on the governmental functions of the county or that other property is more suitable for the county governmental purpose than the property to be sold. While the statute does not expressly mention personal property, it is our opinion that under general consideration of public policy and the wise and business like use of county property, bought by taxpayer's money, the fiscal court should not sell or dispose of county personal property unless it is first determined under an appropriate fiscal court order that either the property is no longer needed for county governmental purposes or that other property is more suitable for county purposes.
It is up to the fiscal court to regulate and control the fiscal affairs and property of the county. KRS 67.080(6). Implicit in this responsibility is the duty to use good business judgment in acting for the public benefit, that is, an exercise of sound discretion. Boyd County v. Boyd County Fiscal Court, 247 Ky. 183, 56 S.W.2d 959 (1933) 961. If this property is equipment used in the county attorney's office, then the fiscal court should consult with him in determining whether such property is surplus or not.
If the property is determined to be surplus, then the property to be sold should be appraised by at least two competent and independent appraisers. And then such property should not be sold for less than the appraised value on a negotiated basis or by written bids, whichever is calculated to bring the best price.
This is also a matter which should be discussed in the open meeting of fiscal court, unless the publicity of the intended sale would be likely to adversely affect the value of the specific property to be sold. See KRS 61.810(2).