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Tax-collection firm MBM outlines 10% fee, two-year contract and customer-first approach to Munhall council
Summary
MBM representative Jennifer Sars told Munhall Borough Council the firm focuses solely on delinquent real-estate tax collections, takes a 10% collection fee, keeps client funds in dedicated accounts, offers hardship payment plans, and prefers a two-year auto-renewing contract; councilors asked about reporting, staff size and termination options.
Jennifer Sars, representing MBM NBM Law Collections, presented the company’s delinquent real-estate tax collection program to Munhall Borough Council and outlined contract terms and operational safeguards.
Sars said MBM specializes in delinquent real-estate tax work and maintains a dedicated bank account for each client to avoid commingling. “We give ourselves 10% and then the rest of that money goes to penalty, face, penalty, interest,” Sars said, describing the firm’s allocation policy and adding that the remainder goes to the taxing authority. She emphasized voluntary compliance first, flexible payment plans for hardship cases — often geared toward elderly or disabled taxpayers — and a single assigned customer-service representative for each client’s accounts.
The presentation included performance examples Sars said reflected improved collections after MBM replaced prior collectors. Councilors asked detailed questions about staffing, reporting and the legal framework. On fees and statutory allocation she referenced the applicable framework under Act 20 and said sheriff-sale costs are typically passed through to the taxpayer.
When asked about contract length, Sars said she prefers a two-year initial agreement followed by automatic annual renewals, so the borough has time to evaluate transition effects and collections performance. She said MBM would provide monthly standard reports and could create customized reports if the borough supplied the necessary data.
Council members pressed on termination and performance remedies. Sars said MBM tries to be proactive about client concerns and meeting responsiveness and that executive partner Lawrence Mayo (mentioned in the presentation) would be involved in contract-level questions. “If you tell me, I don't want to take anybody to sale, we don't take anybody to sale,” Sars said, stressing the firm will follow the borough’s direction on enforcement aggressiveness.
Councilors said they wanted assurances on responsiveness and an ability to terminate or remedy poor performance within a clearly defined timeframe. The presentation closed with members noting concerns about prior collector customer-service problems and requesting follow-up materials and references from MBM.
The council did not vote on a contract at the meeting; staff were asked to review proposals and return with a recommendation and contract details.
