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Card payments on water, sewer and trash bills would carry no processing fee under ordinance set for Monday

A proposed ordinance would drop the fee Sherman charges customers who pay utility bills by credit card. City staff put the card costs tied to utility payments at about $360,000 a year.

Vance Kowalski· AI-assisted, edited by Jake Team

October 28, 20262 min read

Civic Utility Payment - illustration, Jake Team LLC

Sherman residents who pay their water, sewer and trash bills with a credit card would stop paying a processing fee on those payments under an ordinance the City Council takes up Monday.

Ordinance No. 6975 is set for a public hearing and a possible vote at the council's Nov. 2 meeting, which starts at 5 p.m. at City Hall, 220 W. Mulberry St. The agenda and packet were posted Tuesday.

What would change

According to a staff report from Chief Financial Officer Mary Lawrence, the ordinance "eliminates the reimbursement fee charged to customers for utility payments made by credit card," while still letting the city recover processing costs on other kinds of payments it takes.

The ordinance gives the city manager or a designee authority to accept cards and other electronic payments for all city fees, fines, court costs and other charges, and to set a processing fee that is "reasonably related" to what the city pays to process them.

That fee would be added at the point of sale, except on payments for municipal water, sanitary sewer and solid waste service.

It also sets a service charge for a card or electronic payment that the card company or bank does not honor, equal to the charge the city already applies to a check returned for insufficient funds.

The packet does not say how much the current utility card fee is, and it does not list the processing fees that would apply to other payments.

The cost

Card fees connected to utility payments run about $360,000 a year, the staff report says. Staff recommend approval. The report lists two alternatives: the council could reject the ordinance and pay all card fees, or change it so the city is reimbursed for all of them.

The item originated with the City Council, according to the report. At its Oct. 19 meeting, the council's closed session included legal advice on paying fees and other costs by credit card or other electronic means. Draft minutes show the council took no action after returning to open session.

Also on the consent agenda

The council is also scheduled to approve a $50,680-a-year contract with Axene Continuing Education for physician medical direction of the fire department's EMS crews, a second-year payment of $134,000 to Motorola Solutions for police body cameras, in-car video and cloud service, and the city's investment report for the quarter that ended Sept. 30.

Sources

shermantx.api.civicclerk.com

shermantx.api.civicclerk.com

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Vance Kowalski· AI-assisted, edited by Jake Team

Vance Kowalski covers Sherman city government and Grayson County politics.

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