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THE CITY OF 9 <br /> CITY COUNCIL AGENDA REPORT <br /> pLE ASANTON <br /> September 21 , 2021 <br /> Finance <br /> TITLE: ADOPT A RESOLUTION ESTABLISHINGA CONVENIENCE SURCHARGE <br /> OF 2.5 PERCENT FOR CREDIT CARD PAYMENTS MADE TO THE CITY <br /> OF PLEASANTON <br /> SUMMARY <br /> The City receives credit card payments for services that cost the City a significant <br /> amount in surcharges charged by the credit card companies. In FY 2020/21, the City <br /> paid a little more than $356,000 in credit card fees of which 52 percent are for Utility <br /> Billing and 48 percentfor General Fund related services. These surcharges equal <br /> approximately 2.5 percent of the revenue collected from credit cards. Government <br /> agencies are increasingly recovering this expense through administering a surcharge to <br /> the end user. The proposed 2.5 percent credit card convenience surcharge is consistent <br /> with that charged by other govern mentagencies. <br /> RECOMMENDATION <br /> Staff recommends that the City Council authorize the City Manager to establish a 2.5 <br /> percent convenience surcharge on all payments made to the City using a credit card. <br /> This is strictly cost recovery and does not generate additional revenue for the City. <br /> FINANCIAL STATEMENT <br /> Establishing the surcharge will recover approximately $250,000 to $300,000 annually <br /> from credit card payments. <br />