Hopatcong tax collector urges end to borough-paid eCheck fees; council says resolution and staff follow-up needed

Hopatcong's tax collector told the council on April 15 that the borough absorbed nearly $9,500 in 2024 eCheck merchant fees (99¢ per eCheck) for residents using the borough's online eCheck portal. The tax collector asked the council to either (1) split the processing cost across the relevant water, sewer and tax budget lines or (2) return the 99¢ processing fee to the resident when they pay by eCheck.

Context: The tax collector said the borough currently pays the 99¢ eCheck fee for users and that practice dates to COVID-era board action; removing the borough subsidy would shift a small cost back to users who opt for eCheck convenience. The collector noted that eCheck processing averaged about 800 payments per month, costing the borough roughly $792 monthly and about $9,500 for calendar 2024; she also said the online volume includes payments for water, sewer and taxes and that current budgeting charged most of the fees to the tax-collection contractual services budget line.

Council direction: Council members agreed a change should be made by resolution and asked staff to prepare options. They discussed two choices: continue paying the fee for residents (currently an administrative practice done by resolution) or have residents pay the 99¢ per eCheck (the collector noted credit-card surcharges already apply for card payments). Councilors asked finance staff to draft budget-line reallocations so costs are divided between water, sewer and tax lines when the borough continues to absorb fees; they also asked for language for a resolution if the council chooses to stop paying the fee on residents' behalf.

Why it matters: The change would shift a small recurring expense from the general tax base to users of the online eCheck service, or it would require an explicit municipal appropriation across utility and tax lines. The tax collector said returning the fee to residents would cost an average user with water, sewer and taxes approximately $12 per year if they paid all three through eCheck; the exact household impact depends on usage and how many services are billed online.

Next steps: Staff will prepare a budget-line reallocation proposal and a draft resolution for the council to consider at a future meeting; any change would be implemented by council resolution per the collector's explanation.

Ending: The tax collector asked the council to be mindful of fairness across the tax base; councilors said they would consider whether the convenience fee belongs with the payer or with the entire taxpayer base.