The Finance Committee met on February 22, 2011 and were presented with the costs associated with the city accepting credit cards for payments (summary is attached). The data presented was based on last year's revenue collections in the city and a "what if" costs if a certain percentage of customers would have paid via credit card. The associated fees would amount to approximately $13,500 annually. This amount could be higher or lower based on actual usage.

 

Three credit card firms were presented - those firms that offered the capability of being able to interface with the City's utility billing system (OPUS 21). The finance committee made the recommendation to choose RevTrak who offers utility billing interfacing and web store capabilities. The finance committee also made the recommendation that the associated credit card fees would be absorbed by the city as part of the costs of doing business.

 

RevTrak will be attending the worksession to present their contract for proposed credit card services and how the credit card process will work for processing payments related to utility bills, permits, special assessments, etc.  OPUS 21 will also be present at the worksession to summarize the current process they use in processing utility billing payments via credit card.  As the city has over 8,600 utility billing customers, a large focus of the credit card usage will be attributed to utility payments.  

 

RevTrak only offers a monthly contract with a 1.99% "swiped" rate and $.35 per item. Staff had concerns regarding the possibility of an interest rate changing monthly. RevTrak, who currently contracts with 52 cities, (listing attached) gave the example of Shoreview. They begin credit card services with Shoreview in 2002 with a 1.99% "swiped" rate and $.33 per item. As of today, they are still charging the 1.99% "swiped" rate and $.35 per transaction. RevTrak would need two weeks for implementation with the city and Opus 21 four weeks.

 

A consent item for contract approval with RevTrak has been added to the March 22 City Council meeting if council is in agreement at the worksession.

 

Further discussion regarding the city's acceptance of using credit cards and respective contract with RevTrak based on the Finance Committee recommendation of February 22, 2011.