HomeMy WebLinkAboutResolution 2026-051 RESOLUTION NO. 2026-051
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORTH.
RICHLAND HILLS, TEXAS, AUTHORIZING THE RECOVERY OF
ELECTRONIC PAYMENT PROCESSING COSTS THROUGH FEES;
ESTABLISHING A MAXIMUM RECOVERY AMOUNT OF FIVE PERCENT
(5%) OF THE TRANSACTION AMOUNT; AUTHORIZING THE CITY
MANAGER OR DESIGNEE TO ESTABLISH AND IMPLEMENT THE
APPROPRIATE RECOVERY METHOD AND AMOUNT FOR DIFFERENT
DEPARTMENTS, PAYMENT PROCESSORS, AND TRANSACTION
TYPES; PROVIDING FOR COMPLIANCE WITH APPLICABLE LAWS;
AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of North Richland Hills, Texas accepts electronic payments for
various City services including permits, utility payments, recreational
activities, municipal court payments; and
WHEREAS, the City currently absorbs the electronic payment processing fees
associated with such transactions, resulting in significant annual costs; and
WHEREAS, the City utilizes multiple payment processors and payment platforms across
various departments, and the costs and capabilities associated with
processing electronic payments vary depending upon the department,
processor, payment platform, transaction type, and method of payment;
and
WHEREAS, City staff has determined that different departments and payment
processors require different methods and amounts of cost recovery in order
to appropriately recover the City's electronic payment processing costs; and
WHEREAS, the City Council desires to authorize the recovery of electronic payment
processing costs, while providing flexibility to utilize the recovery method
most appropriate for the applicable department, processor, payment
platform, and transaction type; and
WHEREAS, the City Council finds that establishing a maximum recovery amount of five
percent (5%) of the transaction amount provides appropriate flexibility to
recover applicable electronic payment processing costs while establishing
a reasonable maximum amount that may be charged to customers; and
WHEREAS, the City Council intends that the electronic payment processing cost
recovery program be implemented in accordance with all applicable federal
and state laws, rules, regulations, and requirements governing payment
processing fees, surcharges, convenience fees, service fees, and other
transaction charges.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
NORTH RICHLAND HILLS, TEXAS:
Resolution No.2026-051
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SECTION 1. The City Council hereby authorizes any employee of the City collecting any
fee, fine, court costs, or other charge to accept electronic payments and
authorizes the City to recover electronic payment processing costs.
SECTION 2. The maximum amount that may be recovered from a customer for
electronic payment processing costs shall not exceed five percent (5%) of
the applicable transaction amount. The maximum authorized amount is
intended as a ceiling and does not require the City to charge five percent
(5%) on any particular transaction.
SECTION 3. The City Manager, or designee, is hereby authorized to establish and
implement the specific electronic payment processing cost recovery method
and amount applicable to each City department, payment processor,
payment platform, and transaction type, provided that:
1. The amount charged does not exceed the maximum authorized by this
Resolution;
2. The recovery method is permitted under applicable federal and state
laws and applicable payment regulations;
3. The recovery method and amount are appropriately disclosed to
customers prior to completion of the transaction; and
4. The recovery amount is directly related to the City's electronic payment
processing costs and the requirements of the payment processor or
payment platform.
SECTION 4. The City Manager or designee is further authorized to utilize different
recovery methods as appropriate for different departments, payment
processors, payment platforms, and transaction types. Such methods may
include, to the extent permitted by applicable laws and payment
regulations, a surcharge, convenience fee, service fee, or other
appropriate transaction cost recovery mechanism.
SECTION 5. The City Manager or designee is further authorized to modify the applicable
recovery method or amount as necessary to accommodate changes in
payment processors, payment platforms, processing costs, technology, or
applicable laws and payment regulations, provided that the recovery
amount remains within the maximum authorized by this Resolution.
SECTION 6. Nothing in this Resolution shall be construed to authorize the City to
impose a fee, surcharge, or other charge in a manner prohibited by
applicable federal or state laws, applicable payment regulations, or the
terms of an applicable payment processing agreement.
Resolution No.2026-051
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SECTION 7. The City Manager or designee is authorized to take all actions necessary
and appropriate to implement the electronic payment processing cost
recovery program authorized by this Resolution.
SECTION 8. It is hereby declared to be the intention of the City Council that the sections,
paragraphs, sentences, clauses, and phrases of this Resolution are
severable, and if any section, paragraph, sentence, clause, or phrase of
this Resolution 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 sections, paragraphs, sentences, clauses,
and phrases of this Resolution, since the same would have been approved
by the City Council without the incorporation in this Resolution of any such
unconstitutional section, paragraph, sentence, clause, or phrase.
SECTION 9. This Resolution shall become effective upon its adoption by the City
Council.
PASSED AND APPROVED this 24th day of August, 2026.
CITY OF NORTH RICHLAND HILLS
� .0w1g§88,sn�m�� ck McCarty, Mayor
1 ATTEST: ®m°°°°
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Alicia Richardson S °°.® °.°e
City Secretary/Chief Goverr
APPROVED AS TO LEGALITY:
Bradley Anderle, City Attorney
APPROVED AS TO CONTENT:
tr f Cal
Step 'en Barnes, Director of Finance
Resolution No.2026-051
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