Agenda Item: 12(a) |
Prepared By: Guillermo A. Polanco |
Business: Resolution |
Department: Finance |
Subject:
Title
Resolution to Approve Convenience Fee Rates
Body
BACKGROUND:
As the City continues to move forward in automating its processes in order to provide a higher level of customer service, it is necessary to set convenience fee rates that allow for online fee payments. The following excerpt from the Florida Statutes permits the use of convenience fees to recoup the costs incurred to provide these services.
Section 215.322, Acceptance of credit cards, charge cards, debit cards, or electronic funds transfers by state agencies, units of local government, and the judicial branch.-
(1)It is the intent of the Legislature to encourage state agencies, the judicial branch, and units of local government to make their goods, services, and information more convenient to the public through the acceptance of payments by credit cards, charge cards, debit cards, or other means of electronic funds transfers to the maximum extent practicable when the benefits to the participating agency and the public substantiate the cost of accepting these types of payments.
(5)A unit of local government, including a municipality, special district, or board of county commissioners or other governing body of a county, a consolidated or metropolitan government, and any clerk of the circuit court, sheriff, property appraiser, tax collector, or supervisor of elections, is authorized to accept payment by use of credit cards, charge cards, bank debit cards, and electronic funds transfers for financial obligations that are owing to such unit of local government and to surcharge the person who uses a credit card, charge card, bank debit card, or electronic funds transfer in payment of taxes, license fees, tuition, fines, civil penalties, court-ordered payments, or court costs, or other statutorily prescribed revenues an amount sufficient to pay the service fee charges by the financial institution, vending service company, or credit card company for such services. A unit of local government shall verify both the validity of any credit card, charge card, bank debit card, or electronic funds transfer used pursuant to this subsection and the existence of appropriate credit with respect to the person using the card or transfer. The unit of local government does not incur any liability as a result of such verification or any subsequent action taken.
The City currently charges convenience for face to face Utility payments per the schedule below:
Up to $200.99 $2.50
$201 - $400.99 $5.00
$401 - $600.99 $7.50
$601 - $800.99 $10.00
$801 - $1000.99 $12.50
$1001 - $1200.99 $15.00
The proposed fees for Utility payments would be a flat $3.50 for every $750 tier, as prescribed by merchant card rules.
In addition, the City also charges convenience fees for the building permits paid over the phone at a rate of $2 per transaction, regardless of the amount of the transaction. The proposed rate for these items would be a 2.5% per transaction.
All other departments would charge the 2.5% rate per transaction. These departments do not currently charge to process credit card payments.
The City has compared the proposed rates to Collier County and City of Naples as noted below:
Collier County - 2.5% per transaction or a minimum of $2 for property tax payments. All other transactions are charged $2.50 per $100 and $2.50 for echeck.
City of Naples - Increases the total cost of its services to cover payment processing related expenses.
FUNDING SOURCE / FISCAL IMPACT: Reduction of fees currently absorbed by the City as part of its operating costs, approximately $14,000 for Utilities and $6,000 for Building Services.
RECOMMENDATION: Staff recommends that City Council adopt the resolution in order to provide a higher level of customer service by making online payments available.
POTENTIAL MOTION: "I move to adopt Resolution 14-68."