CLARKSVILLE, TN (CLARKSVILLE NOW) – The Clarksville Gas and Water Department proposed an ordinance during Thursday’s City Council meeting to add a new fee for clients who pay their bill with credit and debit cards. That fee would be set at 2.95% of the payment amount, with a minimum amount of $1.95 per transaction.

The reason for their proposal is that the city had to absorb $700,000 in credit and debit card fees last year. If the ordinance doesn’t pass and the modifications aren’t made in 2023, the city is estimated to absorb around $880,000, according to Clarksville Gas and Water General Manager Mark Riggins.

Riggins told the City Council that this is a convenience fee, and it’s something they’ve never done before. He also clarified that the fee was estimated by an outside vendor.

“The reason that we’re proposing to charge it now is because fees are going up, and more people are paying with credit cards,” Riggins said during the meeting. “There was a time that we were willing to absorb or eat those fees, because it allows people to pay online and it keeps them out of the office, which keeps my number of staff down.”

Riggins listed other options for clients who don’t want to pay a fee:

  • Paying with cash, a check, money order or bank draft at the Clarksville Gas and Water office.
  • Paying through an ACH (Automated Clearing House) online instead of plugging in a credit or debit card.

Clarification on estimates

Councilperson Wanda Allen asked how the vendor estimated a loss of $880,000 and Riggins said the number was calculated by two factors: the increased fees the city’s being charged now and the estimated amount of customers that will be paying with credit or debit cards.

Allen asked what the city is actually paying in fees and does that offset the customer fees being proposed. Riggins said he’ll get that information to the council over the next week.

Councilperson Keri Lovato asked for the formula used to calculate the new fee, and Riggins said he’ll share that information as well.

Councilperson Karen Reynolds said she is concerned about the new fee because it’ll act as an extra burden for community members in the wintertime who are floating their gas and water bill from credit card to credit card. Reynolds said rent is already so high, and this fee will only add to the community’s problems.

Riggins said he understood Reynolds’ concerns, which is one reason his department does adjustments and payment plans.

“When it comes to a service and the hat I have to wear to comply with the Comptroller’s Office and the State Water and Wastewater Finance Board, for me … I have to watch how we subsidize any amount. I believe there are places in government where you can do that. When it comes to a utility and providing a service where you pay per unit, I think you could get into some trouble.”

Councilperson Wallace Redd said that in his business, he’d rather receive a credit card payment and lose 3%, compared to receiving an increase in bad checks.

Council members Travis Holleman and Brian Zacharias said they are concerned about the snowball effect if the council did not pass this proposal. They said they are all for the customer fee, along with Councilperson Stacey Streetman.

The City Council is set to vote on the ordinance at their regular session on Thursday, Sept. 7, at 6 p.m.