Bonner County Tax Collector proposes switch to Veil Lockbox for cost savings

The Bonner County Board of Commissioners convened on March 4, 2025, to discuss several key agenda items, with a significant focus on the county's property tax payment processing system.

The meeting began with a presentation from the Bonner County Tax Collector's Office regarding the current lockbox payment processing service utilized for property tax payments since 2023. The Tax Collector highlighted the necessity of this service to manage the high volume of payments received during the December 20 collection period efficiently, without increasing staffing levels.

However, the Tax Collector reported a substantial price increase from the current provider, Wells Fargo Bank, due to changes in service flexibility. To address this issue, two additional proposals were obtained: one from Retail Lockbox Incorporated, which partners with a bank, and another from Mountain West Bank, which contracts with Deluxe Payment Processing. Both proposals were found to be similar in pricing, based on an estimated volume of 16,000 transactions. Retail Lockbox Incorporated offered the lowest bid at $16,581.16, along with a one-time setup fee of $2,745.

The Tax Collector requested approval to proceed with Retail Lockbox Incorporated, emphasizing that the transition would result in significant cost savings. The current arrangement with Wells Fargo costs approximately $54,000, which the Tax Collector deemed excessive, as not all payments require processing through the lockbox. The proposed switch would allow for more selective processing of payments, thereby reducing costs.

The Board engaged in a discussion regarding the potential savings, even if transaction volumes were to decrease. The Tax Collector confirmed that the proposed changes would still yield substantial savings compared to the current system.

Following the discussion, the Board moved to approve the recommendation to switch vendors and authorized the Bonner County Treasurer to sign the agreement with Retail Lockbox Incorporated. This decision marks a strategic shift aimed at enhancing operational efficiency while reducing costs for the county's tax collection process.