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HomeMy WebLinkAbout26-28787 - City Council - OrdinanceORDINANCE 26-28787 AN ORDINANCE AMENDING CHAPTER 2 "ADMINISTRATION," OF THE CODE OF THE CITY OF FORT WORTH, TEXAS (2015), AS AMENDED, TO REVISE SECTION 2-11, "CONVENIENCE FEES AND SERVICE CHARGES"; MAKING THIS ORDINANCE CUMULATIVE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A SAVINGS CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, credit cards provide a convenient method for members of the public to pay amounts owed to the City of Fort Worth such as water bills, court fines, and permitting fees; and WHEREAS, when an individual makes a payment with a credit card, financial institutions known as merchant processors handle the transaction and charge fees for their services, with such fees generally ranging from 1.5 percent to 3.5 percent of the transaction amount; and WHEREAS, when two customers pay identical bills to the City and one uses a payment method that processes as a credit card, which imposes a merchant processing fee, and the other uses a form of payment such as cash that does not require a merchant processing fee, the City receives less revenue from the individual using the card; and WHEREAS, Chapter 132 of the Texas Local Government Code authorizes government entities, including cities, to accept various means of payment such as credit cards and authorizes cities to collect a fee of up to 5.0 percent for processing credit card payments; and WHEREAS, in September 2025, the City Council adopted Ordinance 27978-09-2025 enacting a convenience fee of 2.5 percent for credit card use, with such amount based on staff's calculation of the City's organization -wide average merchant processing fee; and WHEREAS, specialty merchant processors utilized by some City departments impose a merchant processing fee in excess of 2.5 percent; and WHEREAS, staff recommends revising the ordinance and set the fee as the lesser of 5.0% or the amount the merchant processor charges so that residents are not paying more than is required but the City stops incurring merchant processing costs for transactions where those fees are between 2.5 and 5.0 percent; and WHEREAS, other payment methods such as cash continue to be available for customers wishing to make payments without incurring such a fee. Ordinance No. 26-28787 Page 1 of 3 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH THAT: SECTION 1. The findings set forth above form the basis for adoption of this ordinance and are incorporated into the body of this Ordinance as if fully set forth herein. SECTION 2. Chapter 2, "Administration," Article I, "In General," of the Code of the City of Fort Worth, Texas (2015), as amended, is hereby revised to amend Section 2-11, "Convenience Fees and Services Charges," to adjust the amount of the convenience fee for payment transactions utilizing a payment method that processes as a credit card in order to offset the merchant processing fees such payment methods incur and to read as follows: Section 2-11 Convenience Fees and Services Charges Pursuant to Chapter 132 of the Texas Local Government Code, as amended, to the extent any fine, permitting fee, or other financial obligation owed to the City is paid utilizing a Davment method that processes as a credit card, there is hereby established and authorized a convenience fee charge to the customer equal to the lesser of five percent (5.0% we - and one half percent (2.5%) of the amount of such payment or such lower percent as char4ed by the merchant processor _as aconvenienee e to the customer in order to ramburze the City for cover the merchant processing costs such credit transaction would otherwise impose on the City. SECTION 3. This ordinance shall be cumulative of all provisions of ordinances and of the Code of the City of Fort Worth, Texas (2015), as amended, except where the provisions of this ordinance are in direct conflict with the provisions of such ordinances and such Code, in which event conflicting provisions of such ordinances and such Code are hereby repealed. SECTION 4. It is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses and phrases of this ordinance are severable, and, if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs and section of this ordinance, since the same would have been enacted by the City Council without the incorporation in this ordinance of any such unconstitutional phrase, clause, sentence, paragraph or section. Ordinance No. 26-28787 Page 2 of 3 SECTION 5. That all rights and remedies of the City of Fort Worth, Texas are expressly saved as to any and all violations of the City Code, or any amendments thereto that have accrued at the time of the effective date of this ordinance; and as to such accrued violations, and all pending litigation, both civil and criminal, same shall not be affected by this ordinance but may be prosecuted until final disposition of the courts. SECTION 6. This ordinance shall take effect on adoption, and the convenience fee charge authorized hereby may be applied to any and all payments made on or after that date, regardless of when the underlying payment obligation first arose. APPROVED AS TO FORM AND LEGALITY Denis McElroy Assistant City Attorney ADOPTED: September 15, 2026 EFFECTIVE: September 15.2026 Ordinance No. 26-28787 Page 3 of 3 CITY SECRETARY Jannette S. Goodall City Secretary rEXX—