HomeMy WebLinkAbout#14 - Online Credit Card Payment Charges
STAFF REPORT
DATE: July 3, 2018
REGULAR
ITEM# 14
TO: Mayor and City Council
FROM: Sue Iverson, Finance Director
AGENDA ITEM: Online/Credit Card Payments
REVIEWED BY: Kristina Handt – City Administrator
BACKGROUND:
Part of the new accounting system updates and efficiencies was to accept online and credit card payments.
A component of this is to establish a policy for processing fees.
QUESTION BEFORE THE CITY COUNCIL:
1) Should the online check and credit card processing fees be charged to the customer or absorbed
in the utility operating budgets?
DISCUSSION:
The payment modules give the City the ability to take check, credit card or to set up ACH for those that
want to set up auto pay for their utility bills via a Customer Portal. The Customer Portal gives Customers
the ability to view bills online, obtain their billing history, and make one time or recurring payments. The
City would also be able to email bills to those that wish to opt out of paper bills. To finish these modules,
a policy on how to handle processing fees needs to be adopted.
The Finance Committee discussed three options:
1. Fees paid by your Customers
2. Fees paid by the City of Lake Elmo
3. The City of Lake Elmo pay the check fees and Customers pay the credit card fees
During a lengthy discussion by the Finance Committee, each of the three members supported a different
option. The committee as a whole did not make a recommendation leaving it to a City Council decision.
FISCAL IMPACT:
There will be a processing fees on each transaction (on average transaction fees on a $100 charge would
amount to between $2.50 and $3.00). The fees can either be classified as an operating cost to the utility
funds or a separate convenience fee for using credit cards and online payments can be established.
RECOMMENDATION:
1) Motion to adopt “Fees paid by the Customers” for online and credit card payments.
Or
2) Motion to adopt “Fees paid by the City of Lake Elmo” for online and credit card Payments.
Or
3) Motion to adopt “The City of Lake Elmo will pay the check fees and Customers pay the credit
card fees.
ATTACHMENT:
Transaction Fee Options