SUBJECT: FINAL READING OF ORDINANCE 2002-O-132

An Ordinance Amending Chapter 30 of the Code of Ordinance of the City Of Laredo, Texas to include Section 30-4 Credit Card Payment Processing Fee to establish a credit card payment-processing fee for the payment of property taxes. The fee will be based on the amount of the payment processed and will be equal to 1.8% of the amount of the transaction. (As Amended)

INITIATED BY:

Larry Dovalina, City Manager

Cynthia Collazo, Assistant City Manager

STAFF SOURCE:

Rosario C. Cabello, Finance Director

Phyllis J. Colon, Tax Assessor Collector

PREVIOUS COUNCIL ACTION:

None.

BACKGROUND:

The City of Laredo is accepting payment by credit cards as an additional payment option to the City’s taxpayers. The City has added this new payment option in order to expedite the collection of fees and taxes and as a convenience to the taxpayer who wants to pay by credit or debit card. The additional service is provided at an additional cost of processing to the City. Section 130.0045 CREDIT CARD PAYMENT PROCESSING FEE of the Local Government Code allows for the Tax Assessor-Collector to collect a fee for the processing of a credit card payment. The assessor-collector shall set a fee that is reasonably related to the expenses incurred in processing the credit card payment and not to exceed five percent of the amount of the tax. The fee is in addition to the amount of taxes, penalties and or interest. The City has elected to pass along part of the additional cost to the taxpayer by implementing the proposed credit card payment-processing fee. The fee will be equal to 1.8% of the amount of the transaction.

FINANCIAL:

The implementation of these fees will generate additional sources of revenues for the General Fund and will be used to offset additional processing fees incurred by the City.

COMMITTEE RECOMMENDATION:

STAFF RECOMMENDATION:

Conduct Public Hearing and introduce Ordinance.

ORDINANCE 2002-O-132

WHEREAS, The City of Laredo has adopted Chapter 30 of the Code of Ordinances of the City of Laredo as amended; and

WHEREAS, the City of Laredo will start to accept Property Tax payments by credit card as a convenience to the taxpayer; and

WHEREAS, the City hereby is establishing Section 30-4 CREDIT CARD PAYMENT PROCESSING FEE in order expedite the collection of taxes and fees by offering the taxpayer an option of paying their taxes by credit card payment.

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LAREDO THAT:

Section 1: Chapter 30 of the Code of Ordinance of the City of Laredo is amended to include Section 30-4 “Credit Card Payment Processing Fee” which shall read as follows:

Section 30-4 - Credit Card Payment Processing Fee – A fee is hereby established for the collection of credit card processing fee that will be used to offset the additional expense incurred in the processing credit card payments. The fee will be equal to 1.8% of the amount of the transaction.

Section 2: Effective Date.

The Ordinance shall become effective not less than sixty (60) days from the date of the public hearing on this ordinance, in accordance with the City Charter.

Section 3: Publication.

This Ordinance shall be published one (1) time in accordance with the provisions set forth in Section 2.09 (D) of the City Charter.

PASSED BY THE CITY COUNCIL AND APPROVED BY THE MAYOR ON THIS

THE _______________ DAY OF ________________________, 2002.

________________________

ELIZABETH G. FLORES,

MAYOR

ATTEST: APPROVED AS TO FORM:

_________________________ ____________

GUSTAVO GUEVARA, JR., JAIME L. FLORES

CITY SECRETARY CITY ATTORNEY