The
Christiansburg Finance Committee held a meeting Tuesday. Present were Council members Ann Carter and Mike Barber, Town Manager R. Lance Terpenny and Finance Director Valerie Tweedy.
Tweedy inquired on whether Council was satisfied with the revised format used on the Town's bills. Payments over $5000 now include an explanation.
She also updated the committee on her research for instituting merchant services, which would
allow debit or credit card payments for taxes, recreational fees or water and sewer bills. No specific request for service was sent out, but the related expense to the town
assumed annual transaction fees of at least $45,000. Additionally, every teller window would be equipped with a credit card terminal costing between $550 to $750 each. Terminal costs could be higher if telephone lines were utilized, rather than
DSL service. Actual costs could vary depending on volume and amounts collected. With no history, these expenses could only be estimated at this time.
Tweedy stated a different system was in use at the Recreation Center and the Aquatic Center was looking at Paypal, which has even higher transaction costs. It was uncertain whether a computer software upgrade, currently scheduled during December's tax season, would support all three different cash handling systems.
When questioned about including a check scanning process, (which immediately removes funds from an account just like a credit/debit card,) Tweedy indicated "staff might get overwhelmed" by too many changes at one time. That feature would require additional equipment purchases and it is uncertain if existing computer software is compatible.
The committee noted these expenses were not included in the
current fiscal year, and may require a budget amendment. That would require Public Hearings as well as determining how to fund this expense. Barber stated he didn't see why all citizens should foot a cost created by those who used debit or credit cards, and pointed out that most checking accounts provide free online banking.
There has been no public education campaign to notify citizens on how to use online banking, or that this capability currently exists for town residents and businesses to make electronic payments for water, sewer or taxes.
Tweedy also indicated the town's financial reports would shift from an accrual to cash basis, and concurred with council that (depending on whether
revenues or
expenses were being discussed), negative amounts could be confusing. There is no summary or cover sheet provided in these reports, and formats are unique from those used in other organizations.
"On the one side, a minus or bracketed amount is a good thing. It means there's still money in the budget. On the other side, it means we've billed for water or taxes but haven't actually collected them yet," Tweedy explained. She stated this change was in conformance with
GAAP and that once the
town auditors completed year end adjustments, Council would see this reflected in reports they will receive on a monthly basis.
The Finance Director will prepare a summary for the full council detailing vendors, costs and possible approaches for implementing merchant services many residents have stated they wanted. Council would then determine how to proceed -- and pay for these services -- based upon the recommendations. The bottom line is that all transactions (depositing cash or checks, processing plastic credit/debit cards, or electronic checks and online payments), have some type of fee and related labor costs.