Director Jason Burke told the Board of Public Utilities on Oct. 2 that Santa Rosa Water plans to begin recovering customer credit-card processing fees starting Jan. 6 and will preserve a fee-free electronic payment option via bank debit.

Burke said the change reflects industry practice and city direction to reduce operating subsidies for routine transaction costs. “This new fee will allow Santa Rosa Water to recover the credit card processing fees that we currently, are charged and pay for on behalf of our customers,” he said, adding staff expect to recover about $600,000 to $700,000 annually by passing the fee to customers instead of absorbing it.

Under the announced policy, the transaction fee will be 2.95% of the payment amount with a minimum charge of $1.95 when the percentage would be less. Burke said the city will run a communications plan — including website guidance, bill inserts, email and postcards — to notify customers and to explain fee-free options.

Burke credited deputy director of administration Nick Harvey and revenue operations supervisor Kenny Cook for developing the implementation plan. “We will continue to have all other payment options available for our customers,” he said.

The announcement was informational; the presentation said the city council received the information the same morning and the fee will take effect Jan. 6. No additional board action was recorded at the meeting.