City Council to consider credit card fees

POST FALLS -The City Council will consider how to manage credit card use fees at its meeting tonight at 6.

Credit card charges for parks and recreation programs have totaled $4,700 so far in 2010 - and for utilities, $20,200.

Only the Utilities Division accepts online credit card payments, but the parks and recreation and police departments are about to do the same.

"It is anticipated, as the city brings parks and recreation (and police) online, that there will be a significant increase in credit card usages," Shelly Enderud, finance director, wrote in a memo to the council.

Such was the case in 2007 when the city brought utility payments online.

The city started accepting credit cards for parks and recreation and utilities in 2006. The council passed a $1 convenience fee at that time to help offset the costs of accepting the cards, but due to issues of collecting the dollar and the small amount of cards being used at that time, the fee wasn't implemented, Enderud said.

However, credit card usage for city services is on the rise due to convenience and rewards offered by card companies for usage, she said.

The city has the option with the credit card processor charge the customer using a credit card a 3.95 percent fee.

"The finance department performed an analysis on past months and the 3.95 percent would have more than offset the associated credit card charges to the city," Enderud wrote.

With utility customers, the processor allows for an electronic check and the fee would be $4 per electronic check used.

A public hearing would be held on Jan. 4 on any new or changed fee proposals.

There are no public hearings scheduled tonight.