Title
Consider and take action on a resolution authorizing a credit card convenience fee of 3.8% to be added to credit card payments on transactions from building and planning to offset bank fees (Director of Finance)
Background:
Approval of this resolution will authorize a credit card convenience fee of 3.8% on credit card transactions for payment on building and planning credit card payments. In the 12-month period ending June 30, 2022, $3,340,382 of these transactions were paid by credit card resulting in approximately $124,318 in banking fees.
It is anticipated that the credit card convenience fee will generate approximately $126,935 in additional revenue which will be used to offset the associated banking fees. If the new fee causes a reduction in use of credit cards, the estimated revenue will be less and banking fees will decrease as well.
Attachments:
1. Data Sheet
2. Proposed Resolution
3. Credit Card transaction calculations and estimates
FUNDING
{X} Funds in the amount of $175,000 are included as a general fund revenue in the FY2023 adopted budget.
STRATEGIC PLANNING
{X} Addresses Strategic Planning Critical Success Factor # 2 Financially Sustainable