ADMINISTRATIVE REPORT
MEETING DATE: May 27, 2026 AGENDA CATEGORY: Consent - Agreements TO: Honorable Mayor and City Council
FROM: Randy McKeegan, Finance Director
DATE: May 13, 2026
SUBJECT: Agreement with Paymentus Corporation to provide electronic bill payment services for utilities, business licenses, and other customer charges.
RECOMMENDATION:
Staff recommends approval of the agreement.
BACKGROUND:
The City currently utilizes Paymentus Corporation to provide electronic payment services for utilities, business licenses, and other customer-related charges. These services allow customers to make payments through multiple channels, improving accessibility and customer convenience.
Paymentus was initially chosen in 2019 after a data breech occurred with the previous processor.
Paymentus was selected based on its ability to best meet the operational, financial, security, and customer service needs of the department. The evaluation process included a review of transaction fees, software compatibility, security compliance, reporting capabilities, and implementation support. As the City wraps up the ERP conversion and the final transaction pieces are fully implemented, Paymentus will allow more modern options for customers. This can include pay -by-email, pay -by-text, 24 -hour automated phone payments, and paperless billing options.
Paymentus' fees are collected through the standard credit card merchant charges that are incurred on individual transactions and total costs for the contract are based solely on customer usage (See Schedule A of accompanying agreement). The total cost to the City is not expected to increase as these fees were also paid to the previous service provider.
FISCAL IMPACT:
The convenience fee model is utilized to cover the cost of accepting credit card payments. The vast majority of transaction fees associated with electronic payment services are paid directly by cust omers.
There are minimal fees that are absorbed by the City for certain card transactions, and as such there is no significant fiscal impact expected to the City General Fund.
COUNCIL GOAL:
Innovative and Efficient City Government
ATTACHMENTS:
1. Paymentus Agreement