Pasco staff recommends switch to Tyler Payments; council signals support to pass credit-card fees to users

City staff told the Pasco City Council on Sept. 15 that switching the city’s online payment processor from Paymentus to Tyler Payments would reduce processing costs and provide tighter integration with the city’s financial and utility-billing software.

Interim Director Garcia said a July comparison of actual transactions showed lower fees under the Tyler proposal and highlighted operational efficiencies because Tyler is the native payments provider for the city’s financial and utility systems. “In every category, Tyler payments is the less expensive option,” Garcia told the council, and staff said several implementation costs were being waived because of the existing software relationship.

Staff proposed a fee structure under which the city would continue to absorb ACH and debit fees and would pass through credit-card processing fees to customers who choose to pay with a card. Garcia said the change would be transparent on the payment screen and on customer receipts; she provided examples showing a $150 utility payment would carry a roughly $2.25 convenience fee when paid by credit card. Staff estimated a multi‑month behavior shift as customers opt for the lower-cost ACH/debit option, and they recommended a public education plan, including inserts, automated calls and staff help sessions during the transition.

Council discussion focused on customer impacts and transition timing. Several members praised the cost savings and asked staff to minimize hardship for customers who use autopay. Mayor Pro Tem Charles Grimm suggested waiving late fees for an initial transition period to reduce unintended penalties for residents who need time to reestablish automatic payments under the new system. Council did not take a roll-call vote at the meeting but signaled support for staff to proceed; staff said the vendor could be implemented with a late‑November go‑live date if council formally approves and directs implementation.

Why it matters: The change could lower the city’s annual payment-processing cost, streamline staff workflow and change how residents pay utility bills. Staff emphasized outreach and temporary accommodations to reduce customer disruption during the changeover.

Speakers who discussed the payment-processor issue included Interim Director Garcia (finance/IT), Mayor Pro Tem Charles Grimm, Councilmembers Barajas and Blaisdell and the city manager. No formal vote to execute a contract was recorded on Sept. 15; staff requested council guidance and will return with any required contract documents for formal approval.