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Council explores Venmo and other digital donation options after state auditor guidance
Summary
Council discussed using Venmo or similar services for event donations and small municipal transactions; staff will investigate controls and a clearing-account procedure recommended by finance staff after a state auditor letter.
Ferron City Council discussed allowing digital donations (including Venmo) for municipal events and programs and directed staff to research required controls and account procedures following guidance from the state auditor.
Staff told the council they had received a letter from the state auditor and discussed the matter with Gary (city finance staff). The recommended approach is to open a clearing account for third-party payments and then transfer funds into the city's main account so that existing controls and reconciliations remain intact. Staff noted that some third-party platforms deduct transaction fees when funds are transferred; council members discussed alternatives such as Zelle, which may not deduct fees but is less commonly used by residents.
Council asked staff (Jackie and others) to investigate municipal account options, fee structures and whether Venmo or a municipal-specific account type would reduce fees. Jackie and another staff member said they have devices that could access returned transactions and would continue to gather information and report back.
Next steps: staff will research municipal account configurations, transaction fees and the clearing-account approach recommended by finance staff and return with recommendations for a secure process that preserves controls and minimizes fees.
