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Table 1 — Utility Bill Payments via Credit Cars for 2021 (Jan-Jun) Number of Credit Amount Fee Paid Month Card Transactions Collected (Approximately) January 2,310 $781,516 $19,538 February 2,338 763,818 19,095 March 2,416 706,980 17,674 April 2,196 545,820 13,645 May 1,791 787,918 19,698 June 2,206 813,333 20,333 Total 13,257 $4,399,383 $109,985 As previously noted, several municipalities assess a surcharge to offset the costs incurred from credit card payments. These charges vary from a flat dollar amount to percentage based. The most common used rate is approximately 2.5 percent of the transactions, which aligns with what most credit card companies charge the municipalities. The exception is Visa, which provides a discounted rate for utility bills. Staff is recommending a 2.5 percent surcharge ratherthan a flat dollar amount because it reflects the actual costs incurred to accept credit card payments. A flat fee would result in over charging those who have small credit card charges and undercharge those with large credit card charges. Setting up and collecting the convenience surcharge will allow the City to recover expenses that are currently being absorbed by City funds that the City can use towards other needs.This charge will be established in a way that allows the citizens to be fully aware of and agree to paying the convenience surcharge when using their credit cards as a means of payment. Submitted by: Approved by: Tina Olson Nelson Fialho Director of Finance City Manager Page 3 of 3