The Metropolis of Morgan Hill spends greater than $200,000 per yr in charges for processing bank card funds for numerous metropolis companies—together with utilities, enterprise licenses and recreation.
These prices got here up throughout a dialogue of latest and up to date charges for metropolis companies on the April 5 Morgan Hill Metropolis Council assembly. The council finally authorised a rise within the bank card service price for funds for improvement companies and transient occupancy taxes from 2% to 2.7%; and a brand new enterprise license renewal price of $14 per renewal.
Each charges had been advisable by metropolis workers in an effort to get better extra of the town’s prices in processing these funds and companies.
The enterprise license renewal price will save the town about $49,000 per yr in third-party contractor’s prices, in keeping with Morgan Hill Finance Director Dat Nguyen. Previous to the April 5 assembly, the town had been paying its contractor, HdL Corporations, a price of $14 per account for the processing of enterprise licenses and renewals.
The elevated bank card processing price for improvement companies and TOT funds to metropolis places of work will improve income to the town’s basic fund and improvement companies fund by about $14,000 yearly, in keeping with Nguyen.
The town’s value for bank card processing is at the moment 2.71% per transaction.
The town council authorised each advisable gadgets unanimously.
However council members additionally need metropolis workers to look into recovering extra of the cash that Metropolis Corridor at the moment pays to banks and bank card corporations in transaction processing charges. For now, the town isn’t charging clients with bank card processing charges for smaller-ticket funds for utility payments, enterprise licenses, recreation companies and different small charges.
Nguyen stated the bank card processing charges paid by the town for these companies add as much as about $202,000. Of this quantity, about $148,000 is for the processing of utility funds; $46,000 is for recreation companies; and about $8,000 is for enterprise licenses.
Metropolis Council member Rene Spring famous that the sum of $202,000 is equal to the town’s value for a full-time worker comparable to a police officer.
“I would love us to contemplate charging the bank card price on different transactions shifting ahead,” Spring stated.
Metropolis workers indicated they might return to the council at a future assembly with a proposal to get better the processing charges from clients who pay for companies with bank cards.