Councilors say state sets utility privacy fee; city eyes new payment software and sewer billing changes

A speaker identified in the transcript as Steve Fisher told the board that the privacy fee appearing on utility bills is established by state law and is not settable, waivable or changeable by the city. “That is not something the city sets. We cannot waive it. We cannot reduce it. We cannot change it,” Fisher said. Fisher cited the statutory source for the fee in the course of his remarks and explained that the city is allowed to retain 2% of the fee for collection costs, with the remainder remitted to the state. He also described the fee tiers discussed on the bill and the form of billing (once per account), noting the city’s limited authority over the charge. On payments processing, staff reported they have been reviewing replacement options for the current vendor (transcribed as “Tylen”); one vendor reviewed so far offers a convenience fee under 3%, versus a current 6.6% fee the city is seeking to reduce. Staff said they have additional vendors to review and hope to make a recommendation to the board soon. Fisher and staff also previewed forthcoming work on private-side inflow and infiltration (I&I) and sewer billing, saying the sewer fund is under financial pressure from improper private connections (e.g., downspouts into the sanitary system) and that staff will bring options on billing and rates. The board was reminded that the city committed to an annual review of rates during budget season and that the next scheduled rate discussion will align with the 2027 budget cycle. No immediate fee changes or vendor selections were made at the meeting; staff said more information and recommendations will follow.