CLARKSVILLE, TN (CLARKSVILLE NOW) – At last week’s City Council executive session, the Clarksville Gas and Water Department proposed an ordinance that would add a new fee for clients who pay their bill with credit and debit cards. But after further research, CGW General Manager Mark Riggins asked the council on Thursday to hold off.
Riggins said his department is reversing course because the vendor who estimated the fee sent in multiple versions of percentages and minimal payments used by other relative utilities throughout the state, but he still has some remaining questions.
Riggins also said a councilperson provided him with information that involved an Attorney General’s opinion on the matter from 2001, and that will need further review.
He said his department plans to study the topic more, alongside the Water and Wastewater Finance Board and the State Comptroller’s Office. He plans to return once he can ensure fairness and equity to customers, as well as compliance with the rules and regulations.
The council unanimously voted to remove the debit and credit transaction fee changes from the agenda, based on Riggins request.
City estimated to absorb $880,000
The reason behind the Clarksville Gas and Water Department’s request is the city had to absorb $700,000 in credit and debit card fees last year. Riggins said last week that next year, the city is estimated to absorb around $880,000.
Riggins previously told the City Council that this is a convenience fee, and it’s something they’ve never done before.
“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 last week’s 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.”