Form revised August 4, 2003

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Executive Administration	Gregg Johanson/3.9833	Jennifer Devore/5.1328

Legislation Title:

AN ORDINANCE relating to the City’s acceptance of credit cards, debit cards, and other electronic commerce methods for payment of taxes, license fees, fines, other fees, and City services; authorizing acceptance by City departments of these forms of payments for these purposes; authorizing the Director of Executive Administration to determine when City departments may accept, and set and impose service and other fees for, credit cards, debit cards, and electronic commerce payments; providing for the adoption of City-wide policies and procedures for the acceptance of credit cards, debit cards, and electronic commerce; and amending Chapter 5.22 of the Seattle Municipal Code.

· Summary of the Legislation:

The proposed ordinance clarifies sections of the Seattle Municipal Code pertaining to the acceptance of credit and debit cards by City departments for City fees, taxes, and charges. The Director of Executive Administration (“Director”) would issue policy guidelines to City departments for credit and debit card payment options. The goal is to expand payment options within a consistent framework that balances the values of citizen convenience and fiscal prudence while providing managers with the flexible to tailor business practices to specific department needs. Departments wishing to expand payment options to include credit card payments for new services or through new channels will submit an application to the Director. The Director will evaluate whether the department has made a solid business case for accepting credit cards, has a realistic budgetary plan for handling anticipated credit card fees, and ability to administer the credit card option using sound transaction management practices that maintains a high standard of customer security and limits risk for the City.

· Background: (Include brief description of the purpose and context of legislation and include record of previous legislation and funding history, if applicable):

The Director of Executive Administration has had the responsibility to determine whether or not credit card payments may be accepted, on a case-by-case basis (Ordinances 117375 and 117524). It is in the City’s and the public’s interests to continue to have central oversight by the Director of Executive Administration, to ensure that the electronic commerce practices by the various City departments are: cost-effective and appropriate to the service, managed with proper financial controls and proper security for both the City and the customer, and integrated with the City’s other financial operations. Recently, the use of credit and debit cards has become prevalent in everyday financial transactions, and citizen demand has risen dramatically for the availability to pay for City taxes, license, fees and services by credit cards, debit cards, and electronic commerce methods. The proposed ordinance will allow City departments for the first time to accept credit and debit cards in payment of taxes.

Credit card companies impose various types of fees for use of the card; at the same time, the credit card companies place restrictions on the types and amount of “convenience fees” that the City might choose to impose to recover part of the cost of accepting credit and debit cards. Central oversight by the Director of Executive Administration will allow the City to minimize the cost impacts of various fee restrictions, provide for maximum flexibility for the requirements of different City departments, and ensure that the City maintains appropriate financial controls and security.

· Please check one of the following:

__X_ This legislation does not have any financial implications. (Stop here and delete the remainder of this document prior to saving and printing.)