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Council removes $500 online payment cap despite affordability concerns
Summary
Council voted to amend the city’s express bill pay contract to remove a $500 per‑transaction cap and adjust the processing fee structure to a 3.5% effective rate; at least one council member opposed the change citing affordability for small transactions.
The council debated an amendment to the city’s express bill pay agreement that removes a $500 per‑transaction limit and standardizes the fee structure. Shali Shemaker, the city treasurer, explained the change allows customers to pay larger sums by card without splitting transactions and that the fee would effectively move from 3% plus a small fixed fee to a 3.5% rate passed through to the payer.
Several council members expressed concern that the higher percentage makes small transactions more expensive for residents who choose to use a credit card, with one council member calling the increase an additional tax on residents. Despite those objections, the resolution passed on roll call. The council recorded a mix of yes and no votes and the chair announced the motion carried.
What this means: residents can pay larger fees with a single credit card transaction online, but the per‑transaction cost to customers will change modestly. Staff said they will continue to explore payment platform options as part of a wider financial systems review.
