Title
Consideration of and action on an ordinance creating Chapter 2, Section 2-262 Processing Fees and amending Section 2-262 of Appendix B to include processing fees for credit card, debit card and electronic check transactions.
Body
Summary:
At the City Council Workshops held on August 5, 2025 and September 2, 2025, staff discussed assessing processing fees for credit and debit card transactions and implementing an electronic check payment option which would also assess a fee.
Staff is proposing to add Appendix B, Chapter 2, Section 2-262 of the Code of Ordinances to read as follows:
Processing Fees:
Returned unpaid or dishonored check, draft, order or other instrument or form of remittance - $30.00
Credit or debit card transactions made for utility services, permits, inspections, the fire department, emergency medical services, animal control services, or records requests - 2.5% of the transaction
Credit or debit card transactions made for municipal court fines or fees - 3.95% of the transaction, $2.50 minimum
Electronic check transactions made for utility services, permits, inspections, the fire department, emergency medical services, animal control services, or records requests - $1.95
Fiscal/Budgetary Impact:
The City will still incur processing fees from the merchant in both the General Fund and Water and Sewer Fund that will be recorded as expenditure; however, these fees will be offset by revenues. Revenue from processing fees will be recorded in accounts 010-000-35010, Processing Fees for the General Fund and 400-000-35010, Processing Fees for the Water and Sewer Fund.
Recommended action
Approve the ordinance amending Appendix B to include processing fees for credit card, debit card and electronic check transactions.