Approving the payment card processing fee policy. 

As discussed at a Council Study Session on September 14, the Payment Card Processing Fee Policy establishes a consistent and transparent framework for managing processing fees associated with customers using payment cards, including credit cards, debit cards, and other electronic payment methods, when making payments to the City for goods, services, permits, and other municipal obligations.

The policy allows the City to continue to offer modern and convenient payment options while responsibly passing along eligible processing fees through service charges or surcharges when permitted by state and federal law, payment card network rules, and applicable service agreements. The policy establishes consistent procedures for how service charges and surcharges are applied, disclosed, and administered.  In addition, the policy exempts transit services and parking ramp usage from these charges and continues to allow for payment by non-processing fee options such as cash, check, money order, and ACH.  

Overall, the policy benefits the City and its tax levy by reducing the financial burden of transaction fees on taxpayers, ensuring compliance with applicable requirements.  Standardizing practices across departments, increasing transparency for customers, and supporting efficient and secure payment operations. 

The policy provided for adoption exempts payments for transit services and parking ramp usage from the fee.  

During analysis of this policy, careful consideration was given on how service charges and surcharges may affect equitable access to municipal services.  While the policy helps recover processing fees, ensuring that alternative, no-fee payment methods - such as cash, check, money order, and ACH - remain readily available and clearly communicated is essential for maintaining equitable access.  The exemptions for transit services and parking ramp usage also may also help reduce disproportionate impacts on individuals as well. 

September 14, 2026, Council Study Session - Presented Payment Card Processing Fee Analysis  

Implementing this policy allows the City to recover eligible processing fees rather than subsidizing them through the general fund or higher service fees. By passing along these fees through service charges and surcharges for certain City services, the City reduces financial pressure on its budget and preserves resources for core services.  

Alternative actions would be that the City could choose to continue to absorb all payment card processing fees within departmental operating budgets.  At this time, it would be challenging to limit the acceptance of card payments and the City has specific high-volume or high-service users on an alternative payment method.