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Commission discusses credit-card processing fees; decides to defer immediate changes pending rate study
Summary
Staff presented analysis of credit- and debit-card processing fees and current billing mix. Commissioners favored keeping fees absorbed by the city for now and asked staff to revisit the issue after a renewed utility rate study and efforts to increase automatic-debit enrollment.
City staff presented an analysis of credit- and debit-card processing fees and the commission discussed whether the city should continue absorbing those costs for utility customers or pass fees to customers.
Nicole Jenkins (presenter) described payment-method proportions for a one-month sample and explained that FIS — the processor used by the city's Edmonds billing software — provides an overall invoice that cannot be split by department. Jenkins said fiscal-year 2023–24 credit-card processing invoices totaled $113,608; the city currently waives processing fees only for utility payments and historically has absorbed those fees as a utility operating cost while charging fees to customers in other departments such as building and parks and recreation.
Commissioners reviewed practices in nearby jurisdictions: Leesburg charges a $3.50 flat fee for utility credit-card transactions, Claremont charges 2.5 percent, while Mount Dora and Tavares do not charge fees. Commissioners raised concerns that the billing system (Edmonds) and the processor could not provide a breakdown of utility versus non-utility transactions, limiting the city's ability to allocate fees precisely. Staff said Edmonds' contract with FIS prevented the current level of detail but that staff is seeking an RFP and consultant assistance to update billing technology that would allow finer reporting.
Several commissioners said the fees appear to be built into utility rates and that, given the economic strain on residents, they preferred to continue absorbing the fee for now and revisit the question when the rate study resumes. Jenkins noted the city's paperless incentive (a $25 one-time credit for customers who sign up for e-billing and automatic withdrawal) has roughly 766 signups, about 10% of customers, seven weeks into the program. Commissioners asked staff to bring a fuller report as the city reengages the utility rate study and to estimate how much of the processor invoice is attributable to non-utility payments where possible.
No formal vote was taken; the commission directed staff to continue current practice for utility customers and return with more detail as the rate study and system RFP process proceed.
