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Council debates whether to absorb new front‑desk convenience fee; staff estimates ~$14,640 annual impact
Summary
Council members heard that a new front‑desk/online convenience fee (about $1.30–$1.95 per transaction) could cost roughly $14,640 annually if the city absorbs it; members expressed concern about shifting the burden into enterprise utility rates and discussed alternatives such as bank pay, dropbox or passing fees to users.
Staff presented details of a merchant/front-desk convenience fee that now applies when customers pay utility bills through a third‑party front-desk processor. Based on customers enrolled as of Aug. 1, staff estimated the fee will average about $1.30 for smaller bills and about $1.95 for larger bills; if the city absorbed the cost it would add approximately $14,640 annually to the water/sewer enterprise fund.
Council members debated whether to absorb the fee or require customers to elect a fee-bearing payment method. Several members said absorbing the fee would only shift the expense into utility rates and eventually be borne by ratepayers; others noted free alternatives such as bank-initiated payments or in-person dropboxes. Staff also noted administrative complications during the front‑desk rollout (automatic‑charge customers being temporarily inactivated when switching to new processing) and said the city will continue outreach about alternatives.
Next steps: no final policy decision was taken; staff will continue public communication and the council may revisit the proposal during budget review or when the processor rollout is complete.
