05-A Fees and Other Costs - Laserfiche WebLink

Home Browse Search

AGENDA INFORMATION SHEET PROJECT: Consider an ordinance creating a new Article XII to Chapter 2 of the Code of Ordinances of the City of Paris, entitled "Payment of fees and other costs," to authorize the payment of City fees and other charges by cash, check, or credit card where appropriate. BACKGROUND: The City Council has requested the Finance Department to implement a program authorized under State law whereby the City can accept payment of fees, fines, court costs, and other similar charges by credit card. Chapter 132 of the Texas Local Government Code authorizes such arrangements, subject to the terms and provisions of said Code. As a consequence of said request, the City Attorney's office in conjunction with the Finance Department has prepared an ordinance amending the Code of Ordinances to add a new Article XII which would address the issue of payment of fees, including payment by credit card. DESCRIPTION: The proposed ordinance tracks very closely the provisions of Chapter 132 of the Texas Local Government Code. As a consequence of adopting this ordinance, the City Finance Director would be authorized, where appropriate, to accept credit cards where the City has equipment available to process same for payment of City fees, fines, court costs, or other similar charges. By adoption of this ordinance the City would be able to accept payment by MasterCard or Visa Credit Cards. There are certain limitations contained in the statute and also contained in the ordinance as to those payments. Payments by credit card would not be permitted where the charge was less than $25.00; this reflects the City's need to collect an appropriate convenience fee as authorized by the statute in the amount of five percent (5%) as the amount reasonably necessary and related to the expense incurred by the City in accepting payment by credit card. Although the statute does not explicitly address the issue, the ordinance also authorizes payment by debit card. Other charges authorized in the statute, such as service charges for payment by a credit card which is not honored by the credit card company, are likewise authorized by the ordinance, in a manner similar to a fee which is charged for collection of a check which is returned for insufficient funds. Finally, the Director of Finance is authorized to enter into all necessary agreements with approved credit card issuers and other vendors necessary to implement the program. COST: The cost to the City of Paris will be the additional cost of processing payment through credit card issuers. In return for that expense, the City will be able to assess a statutorily authorized 5% convenience fee. RECOMMENDED ACTION: Consideration of the Ordinance. STAFF CONTACT: Gene Anderson, Director of Finance, and Larry W. Schenk, City Attorney SCHEDULE: The program will be implemented as agreements are signed between approved credit card issuers and the City and agreements with vendors of equipment necessary to implement the program, as well as a training period for City staff. COUNCII, DATE: Consider approval ofthe ordinance at City Council's January 14, 2002, regular Council meeting. ADDITIONAL MATERIALS: See enclosed ordinance.