CITY OF POMONA
COUNCIL REPORT
December 15, 2025
To: Honorable Mayor and Members of the City Council
From: Anita D. Scott, City Manager
Submitted By: Andrew Mowbray, Finance Director / City Treasurer SUBJECT: ADOPT MERCHANT SERVICE FEES FOR CREDIT CARD TRANSACTIONS TO THE CURRENT MASTER FEE SCHEDULE RECOMMENDATION:
It is recommended that the City Council adopt the following resolution (Attachment No. 1):
RESOLUTION NO. 2025-144 A Resolution OF THE CITY COUNCIL OF THE CITY OF POMONA, california, ADOPTING MERCHANT SERVICE FEES FOR CREDIT CARD TRANSACTIONS TO THE CURRENT MASTER FEE SCHEDULE EXECUTIVE SUMMARY:
As part of the ongoing ERP Implementation, the Core team is actively streamlining existing processes and programs. A significant improvement involves updating how payments are processed, particularly regarding credit card transactions within City facilities.
This enhanced process introduces a standardized merchant service fee of 2.25%, which will be applied to all in-person credit card transactions.
SB1439/GOVERNMENT CODE §84308 APPLICABILITY:
☐ When this box is checked, it indicates the agenda item is subject to the Levine Act SB1439 requirements. Council members are reminded to check their campaign contributions and determine whether they have received a campaign contribution of $500 or more that would require disclosure and/or recusal from discussing or acting on this agenda item. Campaign contributions of $500 or more made 1) by any person or entity who is identified in the agenda report as the applicant or proposer or 2) on behalf of the applicant or participant, including a parent, subsidiary or otherwise related business entity, or 3) by any person who has a financial interest in the agenda item requires a councilmember to comply with SB1439.
FISCAL IMPACT:
The implementation of this Merchant Service Fee will not have a fiscal impact on the City, as the fee is directly passed to and collected from the end customer by the merchant processor.
PUBLIC NOTICING REQUIREMENTS:
Public Notices informing the public of this Public Hearing were posted in the Daily Bulletin on November 28, 2025, and December 5, 2025 (Attachment No. 3). The FY 2025-26 proposed Merchant Service Fees for Credit Card Transactions to the current Master Fee Schedule were made available for the public to view on November 28, 2025.
PREVIOUS RELATED ACTION:
There is no prior history or related action for this item.
DISCUSSION:
During the ERP Implementation, the Core team has identified opportunities to streamline existing processes and programs. A key improvement involves updating how payments are handled, particularly credit card transactions at City Hall. The team evaluated several merchant providers, including our primary financial institution, to ensure seamless integration with the new system. We have selected Elavon, a US Bank affiliate, as the optimal provider for its compatibility and functional alignment with our new infrastructure. As part of this transition, a standardized merchant service fee of 2.25% will be introduced and applied to all in-person credit card transactions. Please note that online merchant service fees will temporarily remain varied, as they are managed through separate software programs for services like utility billing, business licenses, and permits. A future objective is to standardize all city-wide transaction fees.
As part of this action, all active merchant service fees currently in use Citywide for business license, utility billing, permitting, and recreation software will be added to the Master Fee Schedule Finance Fees Worksheet.
Prepared by:
Shar Perez
Revenue Operations Manager
ATTACHMENT(S):
Attachment No. 1 – Resolution No. 2025-144
Attachment No. 2 – Proposed Merchant Services Credit Card Fee Attachment No. 3 – Public Hearing Notice
MERCHANT SERVICE FEE FOR CREDIT CARD TRANSACTIONS