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Rawlins staff brief council on $27,000 annual processing fees and proposes convenience charges for card payments
Summary
City staff told the council the city pays about $27,000 a year in payment‑processing fees and proposed keeping e‑checks free while assessing convenience fees for card payments; staff described vendor options to reduce phone calls and exempt e‑checks from fees.
City budget staff told the Rawlins City Council at a workshop that payment‑processing costs for utilities and other transactions are rising and the draft budget needs to reflect that reality.
Staff reported the city pays about $27,000 per year in processing fees and said debit cards represent roughly 70% of current card transactions. Staff advised that MasterCard processing runs around 2.3% and that credit‑card fees can range from about 2.5% to 5%, and recommended offering at least one free payment option (e‑checks) while adding a convenience fee for card payments to avoid shifting the full cost to the general taxpayer.
The staff presentation included options provided by Express Bill Pay to reduce incoming phone volume (a designated vendor phone line) and to exempt e‑checks from convenience fees while charging for card transactions. A staff suggestion captured in the workshop was to continue covering the small e‑check fee (about $0.74 per transaction) and to levy a convenience fee on card payments.
Council members asked about whether the proposed fee schedule will be incorporated into the temporary budget and were told the fee schedule will appear in the upcoming ordinance reading; the budget itself will follow a three‑reading process. Staff said the matter will return to council for formal approval of any fee changes.
No final decision was made at the workshop; councilors were briefed ahead of the first budget reading.
