Indianola council and IMU trustees agree to pass credit‑card processing costs to users; staff to set rate and notify customers

At the March 17 joint meeting, council members and IMU trustees authorized staff to proceed with a plan to pass credit‑card processing costs to paying customers via a service charge on utility and city bills, with staff to return a recommended percentage and formally adopt the fee as part of each entity’s fee schedule at a future meeting.

Presenters said credit‑card fees paid by the city have grown in recent years (the city paid roughly $27,000 in FY23 and roughly $42,000–$47,000 more recently) and that passing the cost to users would stop subsidization by other revenue sources. Chris (IMU/city payments lead) described implementation options and recommended a flat percentage 'service charge' rather than a convenience fee; he cautioned the exact percentage depends on card mix and suggested it would likely "float around that 2%." "I do know that it's probably going to float around that 2%," Chris told the council.

Staff described implementation logistics and an outreach plan: an individual mailing to current card users (estimated cost about $550–$600), bill messaging and social‑media notices, and inclusion of the service charge in both the IMU and city fee schedules. Council members emphasized two constraints: providing free alternative payment methods (for example, ACH or mailed checks) and ensuring the charge neither becomes a profit center nor exceeds actual processing costs.

Council and trustees moved and seconded a motion to proceed; roll calls were recorded and members present voted in favor. Staff will calculate a recommended percentage based on transaction data and include the new line on the upcoming fee schedules for formal adoption at the next regular meeting.