HomeMy WebLinkAboutMINUTES - 08052014 - C.41RECOMMENDATION(S):
ADOPT Resolution No. 2014/270 to permit bank card service fees associated with payments made by bank card to
County Departments, other than the Treasurer-Tax Collector’s Office, to be collected by third-party service
providers, rather than treating such fees as a departmental expense; and DIRECT the Treasurer-Tax Collector, or
designee to report back to the Finance Committee in five years on the implementation and outcomes of the resolution.
FISCAL IMPACT:
No negative financial impact on the County. Adopting Resolution No. 2014/270 has the potential for substantial
reduction of departmental expenses for those County departments accepting bank cards for the payment of fees, fines,
goods and services.
BACKGROUND:
The Contra Costa County Board of Supervisors authorized County departments to accept bank cards for the payment
of fines and fees in 1997. The Board also directed County departments to treat bank card fees as a departmental
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 08/05/2014 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I Supervisor
Candace Andersen, District II
Supervisor
Mary N. Piepho, District III
Supervisor
Karen Mitchoff, District IV
Supervisor
Federal D. Glover, District V
Supervisor
Contact: Brice Bins, 925
957-2848
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board
of Supervisors on the date shown.
ATTESTED: August 5, 2014
David Twa, County Administrator and Clerk of the Board of Supervisors
By: Stacey M. Boyd, Deputy
cc: Russell Watts, Treasurer-Tax Collector, Robert Campbell, Auditor-Controller
C.41
To:Board of Supervisors
From:FINANCE COMMITTEE
Date:August 5, 2014
Contra
Costa
County
Subject:Bank Card Service Fees
BACKGROUND: (CONT'D)
expense. There are currently ten County departments and four voluntary pool participants that absorb the bank
card service fee as a departmental expense. An analysis of bank card transactions (excluding those involving the
Tax Collector) revealed that 60,678 transactions generated $9,568,000 in revenue between April 2012 and March
2013. Although actual fees varied, depending on the type of bank card used, the departments reviewed absorbed
approximately $167,000 in bank card service fees as departmental expenses during this period.
In 2008, Visa implemented the Visa Tax Payment Program. Prior to the implementation of this Program, county
tax collectors were responsible for bank card services fees incurred when a taxpayer made a payment of property
taxes by bank card. The Program changed the payment structure by permitting third-party service providers to
charge and collect a bank card service fee from the taxpayer separate from the payment of property taxes. The
Visa Tax Payment Program in 2008 did not change the requirement for non-taxing government agencies. Under
the Visa Standard Fee Program, these agencies were still required to absorb the service fee.
Likely due in part to the success of the Visa Tax Payment Program, Visa expanded the program in 2012 to include
higher education and non-taxing government agencies, such non-taxing County departments, through the Visa
Government and Higher Education Program. In accordance with this expanded program, third-party service
providers may accept bank card service fee payments from cardholders for bank card payments to non-taxing
government agencies of fines, fees, goods and services. As a result of the change, bank card service fees are paid
by the cardholder thereby eliminating a significant departmental expense that departments incurred to give
cardholders the convenience of paying by bank cards.
On July 28, 2014 the Treasurer Tax Collector's Office presented the proposal to the Finance Committee. The
Finance Committee approved the proposal for the Board of Supervisor's consideration and adoption, and
requested that a report on the implementation and experiences of the new policy be provided to the Finance
Committee in 2019.
CONSEQUENCE OF NEGATIVE ACTION:
Departmental expenses related to the payment of fines, fees, goods and services by bank cards will increase
annually as payment by these means increases.
CHILDREN'S IMPACT STATEMENT:
Not applicable.
ATTACHMENTS
Resolution No. 2014/270
C.109_02.18.1997