Lake County hires outside collector for unsecured property tax backlog; vendor adds 25% fee to delinquencies

LAKEPORT, Calif. — The Lake County Board of Supervisors on May 20 approved a contract with American Financial Credit Services Inc. (AFCS) to collect unsecured delinquent property taxes, a step county officials said is intended to address a long-standing backlog and improve fairness among taxpaying businesses.

Treasurer‑Tax Collector Patrick Sullivan told the board the county’s delinquent unsecured roll is about $6.8 million in aggregate but that much of that total dates back many years and may be uncollectible. He said roughly $300,000 a year currently goes uncollected. Sullivan asked the board to waive formal bidding and to authorize the treasurer to sign the agreement with AFCS so outside collections can begin.

Sullivan said the county will not pay AFCS from its budget. Instead, AFCS’s fee will be added to accounts and collected from delinquents; the contract establishes a vendor fee of up to 25 percent added to amounts due. “The county would still be receiving the full amount, but…there’s a 25% fee added on,” Sullivan said.

Supervisors and staff discussed how the county will prioritize accounts and preserve flexibility for taxpayers who need payment plans. Sullivan said the county can review higher‑value cases before referral and can require the vendor to use discretion about lien placement, bank levies or wage garnishments. “We do have quite a bit of discretion,” he said. Board members pressed for use of that discretion where appropriate to avoid bankrupting small businesses while still enforcing collections.

The board approved two related actions: a waiver of the formal bidding requirement under Lake County Code section 38.2 and the AFCS agreement. The motions passed without recorded opposition.

Why it matters: County officials said limited staff capacity and recent leaves in the treasurer’s office mean Lake County cannot tackle a multi‑year backlog internally. The board’s decision is aimed at recovering otherwise lost revenue while providing options such as payment plans for eligible debtors.

Key details - Delinquent unsecured roll: about $6.8 million (county estimate). Much of that predates 2010 and may be uncollectible. - Typical annual unsecured shortfall: about $300,000 a year. - Vendor fee: up to 25% added to delinquent accounts (collected from the taxpayer, not the county). - Board action: waiver of bidding (Lake County Code §38.2) and approval of agreement with AFCS; motions carried 5–0.

What’s next: County staff and AFCS will develop a prioritized referral plan and a process for offering payment plans and other discretion on enforcement. The treasurer’s office will supply the vendor with the unsecured list for initial outreach.

Quotes - “We do have quite a bit of discretion. And we can indicate how far we want to go,” Treasurer‑Tax Collector Patrick Sullivan said as he described options such as liens and bank account levies. - “Please utilize that discretion,” Supervisor Sabatier said, adding that staff should try to preserve small businesses if feasible.

Provenance - topicintro: excerpt from the Treasurer’s presentation explaining the $6.8 million delinquent roll and vendor fee (transcript block beginning ~2786.07). - topfinish: board approvals and vote (transcript block beginning ~3511.13).