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HomeMy WebLinkAboutOrdinance 11083~>. ~ n ~, .2`' .~ ~ ORDINANCE NO ~ ~3 AN ORDINANCE AMENDING SECTION 2-117 OF THE CODE OF THE CITY OF FORT WORTH TO INCREASE THE SERVICE CHARGE FROM FIFTEEN DOLLARS TO TWENTY-FIVE DOLLARS PER CHECK FOR CHECKS WHICH ARE RETURNED AS NONNEGOTIABLE/ NONCASHABLE TO ANY DEPARTMENT, DIVISION OR ENTITY OF THE CITY, PROVIDING FOR ENGROSS- MENT AND ENROLLMENT; AND PROVIDING FOR AN EFFECTIVE DATE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS. SECTION 1 Section 2-117 of the Code of the City of Fort Worth is amended to read as follows. "Sec 2-117 Returned Check Charge In addition to any other authorized penalty or interest, there is hereby established a service charge of twenty-five dollars ($25 00) per check for any checks returned as nonnegotiable/noncashable to any department, division or entity of the city SECTION 2 The City Secretary of the City of Fort Worth is hereby directed to engross and enroll this ordinance by copying the caption and Section 1 in the minutes of the City Council and by filing the ordinance in the ordinance records of the City SECTION 3 This ordinance shall take effect and be in full force and effect from and after its passage, and it is so ordained APPROVED AS TO FO AND LEGALITY o~F~CIA! ~ECO~Q City Attorney ~~r~ 5~~~~T~ p~ Date ~ ~ Z ~ ~ ~ ~ ~ ~r. ~oRroF Adopted ~ ~ ~~ k~lASPER ffLE I ACCOUNTING 2 ~~-/~ ~ OV Fort ~l~~~h_ / ~~/]C tYRANSPORTAT10 N~PUBLIC WORKS/ ~~J,/ v' ~ ~•''~•'' ~ `'J 1 WV 44ATER AOMINIS' F .i n,~c or and Cou~;cil C'~-mmunicati~~n y FINANI uw~ r .C=1 DATE REFEREN E NUMBER ** LOG NAME PA E f 1 1 04/28/92 G-9632 13NSF o ~1I~JECT ORDINANCE AMENDING SECTION 2-117 OF THE CITY CODE TO INCREASE THE SERVICE CHARGE ON CHECKS RETURNED AS NONNEGOTIABLE NONCASHABLE RECOMMENDATION: It as recommended that the City Council adopt the attached ordinance amending Section 2-117 of the City Code to increase the service charge from $15.00 to $25.00 per check for checks which are returned as nonnegotiable/noncashable to any department, division or entity of the City. ~' D^ISCUSSION: The State Legislature amended Article 9022, Vernon's Texas Civil Statutes, to allow a holder of a check returned to the holder, following its dishonor by a payor, to charge the check's drawer or endorser a reasonable processing fee, not to exceed $25. This ordinance will amend the City Code to increase the charge on "bad checks" from $15.00 to $25.00 per check and allow the City to be more fully compensated for the added staff time required to handle and record such checks. This will increase City revenue by approximately $57,000, based on an estimate of 22 returned checks per day. Most of the returned checks are on payments to the Water Department. FISCAL INFORMATION/CERTIFICATION: The Director of Fiscal Services certifies that the additional revenue generated by this ordinance will be credited to the appropriate operating funds. CB: j ~.wcav~p ~~1G6~t RE~O~ ~ ~ECR~TRRY f T® ORTR, T~-. Su mitte or City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by to ~~~~QE/~~ ~~ ~ Charles Boswell 8500 ~U1~~~~ ~ - Ad Or~ Hatin De artment Head: O~f~(f 0!'(~1Cd 3t1C ~ g g p c 0 ~0,~ ~ APR 2~ 1992 Judson Bailiff 8185 rom For Additional Information ~, ~~ Contact: Judson Bailiff 8185 , ~ ~ cT ~ ~"aat w~ -rwl~o ~~ Printed on recycled paper