Lake Forest shifts credit card transaction fee to passthrough model; council approves resolution

The Lake Forest City Council on Sept. 16 adopted a resolution to update the city’s credit card transaction fee, moving from a fixed 3% cap under the user fee schedule to a passthrough model that directly reflects charges from third-party payment processors.

Director of Finance Kevin Shiro told the council that the city’s two main payment systems—ActiveNet, used for recreation registrations and facility reservations, and Tyler, used for building permits and other services—apply transaction fees automatically. He said changes in processor charges prompted the recommendation to move to a passthrough approach to provide staff flexibility when processor rates change.

Shiro noted that because the change concerns user fees it required a four-fifths vote of the council. No members of the public spoke on the item. The council approved the resolution 4-0 with Councilman Doug Serbo absent.

The change allows staff to pass actual third-party fees to users rather than maintain a 3% cap that may not cover processor costs; staff presented the update as an administrative change rather than a new ongoing program.