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REQUEST FOR COUNCIL ACTION Date: 12/11/O1 Item No.: C-6 Department ApprovaL Manager Reviewed Agenda Section �� /� �� '�GP.�P� Consent .l Description: Authority To Accept Payment by Credit Card or Other Methods Background The 200 1 Legislature approved new language for statutory and home rule charter cities or counties which affirms the use of credit cards, debit cards etc. for payment by citizens of local government billings. The major change is that the local government may pass the costs of such convenience on to the using customers. However in order for the City to fully implement the use of credit cards, the local government must adopt policies and procedures regarding such payments. Below is a proposed policy for the Council to consider. Policy : Use of Credit Card or Other Forms of Electronic Funds Transfer Policv. To provide convenience to Roseville citizens and others who may be using City services, City Departments are authorized to accept major credit cards, debit cards, or all forms of electronic or wire �nds transfer. Expenses incurred by the City in accepting such charges shall be considered as a cost of doing business and are to be included in the budgeting and costing of city services except where such costs cannot be recovered. YVhere rates or fees cannot be adjusted or are set by other agencies e.g. State ofMinnesota, costs for the use of credit cards or other forms of electronic funds transfers, shall be charged directly to customer at the time of use. Examples of the above policy would be the use of credit cards by utility customers, golf customers etc. where the setting of utility rates and fees can be done with the costs incurred included in the overall costs to the consumer. Examples of where such rates cannot be adjusted would be in the case of City's License Center, where motor vehicle license fees and DNR fees are set by the State of Nlinnesota. Recovery of credit card fees could only be done on the basis of adding the costs to the fee at the time of the transaction. Financial Implications The City has been utilizing the above policy for the past three years and as a result of the Council's formal approval, we would not expect to see any major change from the City's current budget position. Currently, we do not accept credit cards at the License Center and with the ability to charge credit card fees back to the individual customer, we would expect higher credit card charges by our bank but those costs would be offset by customer credit card fees. We do foresee the need to be able to take credit cards or there could be a negative effect on our future sales. Staff Recommendations Staff is recommending that the City Council approve the above Use of Credit Card or Other Forms of Electronic Funds Transfer Policv. CouncilAction Motion to approve the Use of Credit Card or Other Forms of Electronic Funds Transfer Policv as shown above in this Request For Council Action.