Title
Consider adopting Ordinance No. 3889 authorizing the acceptance of payments of utility bill charges and fees by credit card; establishing a processing fee to be collected at the point of sale for the use of a credit card; providing for the collection of a service charge if, for any reason, a payment by credit card is not honored by the credit card company on which funds are drawn; and take appropriate action.
Body
REQUESTOR:
Finance, Fleet, and Facilities Department
BACKGROUND:
During the City Council Study Session on June 18, 2024, staff presented a cost-saving proposal for charging an allowable convenience fee on credit card transactions. The presentation provided a comparison of neighboring cities, with a processing fee ranging from 2.0 to 3.0%. Farmer’s Branch City Council provided consensus to charge 2.5% for utility bills.
DISCUSSION:
Finance estimates a potential cost savings of $200,000 for the Water/Sewer fund. Merchant processing fees for the Water/Sewer fund are currently $455,000 and have more than doubled since the fiscal year 2021-2022. Ordinance No. 3889 would establish a processing fee at the point of sale. Utility customers will be notified in advance of their monthly statements and Branch Review.
FISCAL IMPACT:
Budgeted Financial Impact (Proposed Budget for 2024-25 has Merchant fees for Water/Sewer at a reduced budget of $124,900)
DISTRICT:
Citywide
POSSIBLE COUNCIL ACTION:
1. I move to approve Ordinance No. 3889 as presented.
2. I move to approve Ordinance No. 3889, with modifications.
3. I move to table the issue for further study or take no action.
ATTACHMENT(S):
1. Ordinance No. 3889
2. Presentation