Wow. Threads like this defintely confirm my choice to live in the middle of 55 acres and keep up a long driveway. And outside any municipality.
Interestingly enough, a similar deal was how I wound up w/ a 1/2 acre that joined my property. Long story short, I had a fence built along my property line, fence curved over onto this 1/2 acre. Owner (absentee, BTW) came to the house and asked me about. I totally understand his concern. W/ only a 1/2 acre, even a couple inches encroachment is a big deal. So I posed the question, instead of me moving the fence, how much will you take for the land? It was August, hot and humid, and I had much rather have the land anyway. He named a price and I wrote a check.
So, someone else posted about swapping some land out to cover the "overage". Is that an option? I am definitely against the red faced, jumping up and down screaming scenario (at least at first).