YALE — Yale commissioners made the decision to postpone further action regarding a card payment fee during their most recent meeting.
While having previously given the go ahead for a two percent fee on credit card payments, commissioners back tracked after questions arose about legality, public notice, and administrative complications resulting in the proposed ordinance being tabled.
The ordinance would have amended Section 25-4 of Chapter 25 of the Yale City Code — establishing certain charges when a payment is made by card. City Attorney Roger McMillan explained the ordinance was on the agenda to be amended with new provisions.
Longtime resident Maurice Lozier said several citizens had contacted him about debit cards not being included on the agenda. He also claimed that debit card transactions typically do not incur fees for the city unless processed through a third party and that the public had not had an opportunity to comment on the inclusion of debit cards.
Mayor Jason Brown clarified the proposed amendment to the ordinance explicitly included debit cards in the wording — stating any court or billing fees paid by debit or credit card would incur a charge. Lozier addressed that the inclusion of debit cards had not been part of prior public discussion.
Yale resident Robert Chrisjohn questioned the legality of the proposed fee, citing a law passed last November that limits fees to recouping costs rather than generating profit. According to Chrisjohn, recouping costs would justify only a 1.38 percent fee leading to commissioners debating whether the proposed two percent fee complied with state regulations.
At which point, McMillan said he could not recall the exact limit on municipal caps leading to him recommending the matter be tabled so that he could review the law further.
“I’d want to check it again,” he said. “Of course, it’ll cost us $800 to $900 for tabling a month but that would probably be the safer option rather than trust my memory tonight.”
Following discussion, Adsit made a motion to table the ordinance, which was seconded by Griffin. The motion passed unanimously, 5-0.
City Clerk Deanna Couch verified that the ordinance is not in effect and will only take effect after approval of an ordinance.
“They did not approve the ordinance so it is not in effect at this time,” Couch said on Feb. 23.
When the ordinance goes before the commission again then the time of effect will be determined by how the matter is approved.
“If there is an emergency ordinance passed then it will go into effect immediately, if not then it will be published in the newspaper and go into effect 30-days following publication,” she explained. “For this, we probably wouldn’t make the policy change at the staff level util the first of the month for ease.”
Whilesomecommissioners supported the fee, others expressed concerns about administrative complications, inequities for small transactions, and the burden on citizens. Danae Reece argued that the city already earns enough revenue from utilities and that card fees would create additional work for staff.
“In my opinion, the city already has enough profit coming in on the utilities that there is no sense to charge a fee on cards at this time,” said Reece. “I don’t feel like we’re doing enough for the citizens to make them pay for something else.”
The ordinance was initially adopted in concept during a January discussion, but during the Feb. meeting the need for additional clarification and public notice was highlighted — particularly regarding debit card inclusion and compliance with state regulations.
Another ordinance regarding card fees is anticipated to be on the agenda for the next regular meeting scheduled for March 10.