To: BOARD OF SUPERVISORS
From: Auditor-Controller Treasurer-Tax Collector
Meeting Date: February 24, 2026
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Department Contact: |
Chamise Cubbison |
Phone: |
707-234-6860 |
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Department Contact: |
Cheyanne Gordon |
Phone: |
707-234-6875 |
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Item Type: Consent Agenda |
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Time Allocated for Item: N/A |
Agenda Title:
title
Approval of Agreement with American Financial Credit Services, Incorporated in the Amount of $1,000,000, Paid Directly by the Taxpayer, to Provide Delinquent Tax Recovery Services for Collection of the County of Mendocino’s Delinquent Unsecured Property Taxes, Effective Upon Execution through June 30, 2030
End
Recommended Action/Motion:
recommendation
Approve Agreement with American Financial Credit Services, Incorporated in the amount of $1,000,000, paid directly by the taxpayer, to provide delinquent tax recovery services for collection of the County of Mendocino’s delinquent unsecured property taxes, effective upon execution through June 30, 2030; authorize Treasurer-Tax Collector or designee to sign any future amendments that do not increase the maximum amount; and authorize Chair to sign same.
End
Previous Board/Board Committee Actions:
None.
Summary of Request:
The Treasurer - Tax Collector utilizes multiple collection methods. The Treasurer-Tax Collector’s office would like to employ additional tools to increase revenue collections, one of which is the collection of delinquent unsecured property taxes through a contract with an outside collection agency as allowed by Government Code.
California Government Code Section 26220 (b) The board of supervisors may, by a four-fifths vote of its members, and with the approval of the tax collector, assign for purposes of collection under such terms and conditions as the board may prescribe, any or all delinquent unsecured taxes 90 days after the date upon which they are due and delinquent when, in the judgment of the tax collector, the remedy set forth in Section 2951 of the Revenue and Taxation Code will not be used by the tax collector.
American Financial Credit Services, Inc. (AFCS) is a vendor that currently provides services to multiple counties for collection of delinquent unsecured property taxes. They have created a delinquent tax recovery program at no cost to counties who are looking for options to increase revenue and resolve delinquencies. The 25% collection fee is collected directly from the taxpayer and collected revenue is remitted to the County on a net basis.
The Treasurer-Tax Collector’s office will continue to collect current unsecured property taxes and will continue to pursue collection of delinquent accounts. Delinquent accounts will be evaluated for referral to AFCS for collection. Prior to referral to AFCS, taxpayers will receive two notices that their account will be referred to outside collection, that once that account is referred to outside collection a 25% collection fee will be imposed, and that account will no longer be able to be paid directly to the County.
Alternative Action/Motion:
Return to staff for alternative handling
Strategic Plan Priority Designation: An Effective County Government
Supervisorial District: All
Vote Requirement: 4/5ths
Supplemental Information Available Online At: N/A
Fiscal Details:
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source of funding: N/A |
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current f/y cost: N/A |
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budget clarification: No cost to County. Fee paid by taxpayer to AFCS |
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annual recurring cost: N/A |
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budgeted in current f/y (if no, please describe): N/A |
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revenue agreement: Yes |
AGREEMENT/RESOLUTION/ORDINANCE APPROVED BY COUNTY COUNSEL: Yes
CEO Liaison: Executive Office
CEO Review: Yes
CEO Comments:
FOR COB USE ONLY
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Executed By: Atlas Pearson, Senior Deputy Clerk |
Final Status: Approved |
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Date: February 24, 2026 |
Executed Item Type: Agreement |
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Number: 26-012 |
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