Sarasota Commission moves toward potential credit card fee changes for utility payments

The City of Sarasota held a Regular City Commission Meeting on April 21, 2025, where key discussions centered around proposed changes to the utility billing process, specifically regarding credit card transaction fees.

The meeting began with a presentation from the utilities department, which proposed an amendment to the current credit card processing agreement. The amendment aims to transition from an "absorb model," where the city covers credit card fees, to a "convenience fee model," where customers opting to pay their utility bills with credit cards would incur an additional fee. This change is in line with a national trend, as 84% of government and utility billers have adopted similar models since February 2023.

The utilities department highlighted the rising costs associated with credit card processing, noting that fees had escalated from $92,000 in 2010 to $509,000 in 2024. The department emphasized that the proposed change would not affect customers who choose alternative payment methods, such as checks or ACH transactions, which would remain fee-free.

Public comments during the meeting reflected significant concern regarding the potential financial burden on residents, particularly those with lower incomes. Several speakers criticized the convenience fee as a regressive tax that disproportionately impacts the city's most vulnerable populations. One resident argued that the city should prioritize supporting disadvantaged residents rather than imposing additional fees.

In response to public concerns, city officials clarified that the current meeting was focused solely on moving language within the ordinance to enhance transparency regarding the utility's ability to charge fees. The actual decision on whether to implement the convenience fee would be addressed in a future meeting, allowing for further public input.

The commission ultimately voted unanimously to approve the proposed ordinance amendment on first reading, which will facilitate further discussions on the credit card fee structure in subsequent meetings.

Additionally, the commission discussed a request to fly the LGBTQ+ pride flag at City Hall from May 5 to May 12, which is pending approval. The meeting concluded with a commitment to continue engaging with the community on these important issues.