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Council rejects $4 convenience fee for over-the-phone utility payments
Summary
Council declined to authorize a $4 convenience fee to allow continued over-the-phone utility payments; proponents said the fee would reduce PCI/security exposure and encourage autopay, but a majority voted to discontinue phone payments rather than keep the service with a fee.
The Pekin City Council voted against an ordinance that would have allowed the city to continue accepting over-the-phone utility payments with a $4 convenience fee.
Finance staff said over-the-phone payments generate about 100 calls per week and represent five to eight staff-hours per week; staff argued the fee would cover processing costs, reduce security risk related to card payments over the phone, and encourage customers to use alternatives such as autopay, drop boxes or in-person payments. Staff said the fee would be split between garbage and sewer charges and that if the ordinance failed, the city would discontinue phone payments after a transition period.
Councilmembers who opposed the ordinance said they preferred to discontinue phone payments rather than charge callers a convenience fee; the roll call recorded a majority 'no' vote and the motion to establish the $4 convenience fee failed. Staff said they will inform customers of alternative payment methods and use website, invoice headers and outreach to notify residents of the change.
Council action: ordinance establishing a $4 convenience fee for phone payments failed; staff will implement outreach and discontinue phone payments per the discussed transition plan.
