City of Peru Finance Committee met Feb. 27

By Angelica Saylo Pilo

Apr 26, 2023

Here are the minutes provided by the committee:

ROLL CALL: Aldermen Payton, Buffo and Tieman present. Alderman Sapienza absent.

OTHER ALDERMEN PRESENT: Aldermen Waldorf, Lukosus and Edgcomb

PRESENTATION

None

PUBLIC COMMENT

None

MINUTES

Alderman Tieman made a motion to approve the Finance Committee Minutes of February 13, 2023. Alderman Buffo seconded the motion; motion carried.

DISBURSMENTS

Committee reviewed and approved the disbursements for payment on March 1, 2023.

OLD BUSINESS

Finance Director Tracy Mitchell reported budget conversations are ongoing with a couple department heads left.

Finance Director Tracy Mitchell reported a large CD is maturing soon and looking for local options to reinvest.

Mayor Kolowski discussed reinstating a credit card fee for city utility payments Alderman Payton stated fees were eliminated because of COVID-19. Mayor Kolowski stated prior to the pandemic, credit card users were charged 1.5% fee on the balance. Mayor Kolowski stated fees from the past four years were reviewed and reports on $1.25 per transaction fee charged to the city from the Incode software. Alderman Payton stated removing the fee was to help people during the pandemic and make it easier for residents to pay remote and paperless and agreed that the city should reinstate the fees. Finance Officer Tracy Mitchell stated paying by credit card is a convenience and a choice and if residents don’t want to pay the fee, they can sign up for automatic draft pay withdrawal from their checking or savings, drop off cash or check payments or mail them. Clerk Bartley stated because the due date schedule for utility payments is irregular, bank draft is the easiest way to pay the bill. Peru’s bill cycle runs every four weeks, as opposed to being due on the same day each month. Mayor Kolowski said the lack of a credit card fee is costing the city money. Finance Officer Tracy Mitchell stated the city pays an average of $3.95 for every credit card payment processed via the web. Finance Officer Tracy Mitchell stated in January of 2023, the city paid an average of $5.61 for each credit card transaction processed for a payment that was called or walked in during office hours. Mayor Kolowski stated that by reinstating the fee, the city could get closer to breaking even with what the city is being charged and what residents are paying. Mayor Kolowski stated he would ask for the full 3% (charge) and stated it’s being done everywhere, cities around us are doing the same thing. Corporate Counsel Scott Schweickert stated the city can’t make a profit on the credit card fee. The city must break even on utility payments or pay out of pocket to fund the difference. Schweickert said a 3% charge would get the city close to even without going over.