City reports record month, weighs new online payment system after fraud incident

City finance staff reported a record month for July and outlined steps to strengthen payment controls while pursuing a replacement for the municipality's current online payments vendor. Finance staff said July produced a profit figure highlighted in the meeting packet and that year-to-date collections were higher than the prior year. Staff also described opening a new bank account, closing a prior operating account, and enabling "positive pay," a bank control designed to prevent forged checks. The discussion included a fraud investigation. Staff said officers recovered the funds and that the matter would require assignment to a detective because it was treated as a felony; however, staff cautioned that audits tied to the matter remain incomplete and that an auditor’s formal presentation is expected at the September meeting. Staff also described limitations with the current online payments vendor, PaySimple, including an inability to preset recurring payments, an inability to post a zero-dollar transaction, and an automated “known bad list” that requires manual intervention when a payment is returned. Staff proposed evaluating an alternative vendor referred to in the packet as Goebo, which staff said would cost about $9,000 in upfront fees but could provide broader functionality and lower long-term costs. Staff recommended enabling beverage-tax payments online, saying the change could increase online collections. The meeting record shows the finance reports and the recommendation to review a new vendor were discussed, and the board voted to approve the month’s financials. How this matters: the payment-system choices and new bank controls affect how quickly the city can collect taxes and fees, how staff responds to returned payments, and the city’s exposure to fraud while audits are finalized. Details and next steps: staff said the positive-pay setup will require uploading a monthly file of authorized checks so only matching checks will clear. The finance packet included monthly collection totals and delinquent-collection figures. Staff advised the alternative vendor would require additional data before a final recommendation. The auditor named Jason Lemon was reported to be preparing audit materials and staff said the audit would be presented at the September meeting. No ordinances or regulatory changes were proposed during the discussion, and the meeting record shows the board approved the financial statements by voice vote.