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Westchester trustees direct staff to pursue passing credit-card processing fees to users
Summary
Trustees discussed a plan to stop absorbing roughly $80,000–$100,000 in annual card-processing costs and indicated administrative direction to notify the village's vendor and pursue implementation details, while some trustees urged waiting for a finance director.
Trustees at the Village of Westchester's Committee of the Whole meeting on Jan. 13 directed staff to pursue steps toward having card users pay credit-card processing fees instead of the village should a preferred vendor and fee structure be available.
A staff member leading the project told the board that, based on recent analysis, the village currently "eats" roughly $80,000 to $100,000 a year in processing fees tied to online and over-the-counter card transactions and that switching to the BS&A processor could speed deposits and offer flexibility. "If you take that analysis about using the credit card gross, it's over $5,000,000 we're absorbing as a village, roughly $80,000 in that fee," the staff member said.
Trustees discussed fairness and equity, noting that absorbing fees from the general fund effectively charges non-users through reduced general-fund capacity. One trustee argued the change would make the cost a user fee rather than a general tax: "I'd rather have it as a user tax, user fee," the trustee said.
Some trustees urged caution and recommended delaying a formal implementation until a finance director is on board to review contract and budget impacts. "Until we get a finance director, I would like to see this tabled," a trustee said, citing concerns about the next steps and potential reprogramming costs if changes happen after the BS&A system goes live.
Other trustees pushed back that delaying could needlessly forgo revenue and that initial administrative steps could proceed. Board members reached a consensus to have staff notify the vendor and continue technical and financial comparisons, while reserving any formal policy or ordinance for a later board action. Staff said no formal resolution was required for the administrative notification and that any final policy would be brought back to the board.
Staff also said they would compare processors and report on whether BS&A's processor or alternate vendors offer lower net fees or different implementation costs, and they warned that adding the fee after a system go-live could incur change fees.
The board did not adopt any ordinance or formal fee schedule at the meeting; trustees asked staff to return with specific cost comparisons and possible implementation timelines for future action.
