Beginning city transactions involving credit cards will incur a direct convenience fee of 2.23% or $1, whichever is greater, as part of a phased municipal rollout designed to recover escalating merchant processing expenses previously absorbed by local reserves.
Fee Structure Transfers Merchant Charges to Cardholders
- Cost Shift: The fee structure transfers merchant processing charges directly to cardholders, eliminating absorption by municipal reserves.
- Implementation Timeline: Rollout begins in fall 2026 for public safety and clerk departments, extending through spring 2027 for utilities and administrative services.
- Exempt Channels: Residents retain access to zero-fee payment alternatives, including cash and check transactions at city facilities.
Budget Pressures and Processing Expenses
The adjustment originates from the 2025 budget process, when the City Council reviewed a menu of options to reduce reliance on municipal reserves. Financial disclosures show that processing costs for electronic payments have escalated steadily. The municipality paid $1.1 million in credit card fees in 2024, a figure that increased to $1.3 million in 2025.
A majority of City Council members expressed support for transferring credit card fees during that period. The policy was incorporated into the adopted fiscal 2025 budget and the subsequent fiscal 2026 budget. City staff noted during budget deliberations that full implementation across all departments would require an extended rollout schedule.
| Fiscal Year | Total Credit Card Fees Paid | Policy Status |
|---|---|---|
| 2024 | $1.1 million | Absorbed by municipal reserves |
| 2025 | $1.3 million | Fee structure approved in budget |
| 2026 | Variable | Implementation begins in fall 2026 |
Departmental Rollout Schedule
The transaction service fee of 2.23% or $1, whichever is greater, is not a new tax or a revenue-generating measure for the administration. Departmental implementation begins in fall 2026 and continues into spring 2027 across designated payment channels.
The initial phase covering the Police and Fire departments alongside the City Clerk’s Office encompasses vital records such as birth and death certificates, FOIA requests, and city seal transactions. Between fall 2026 and spring 2027, the rollout expands to the Law and Health departments for liquor licensing and public health permits.
Public Works and Community Development will integrate the fees for building permits, contractor licenses, and related trade permits. The City Manager’s Office will apply the charge to general business licenses, special assessments, and property transactions.
Departments Implement Fee for Utility and Administrative Payments
Additional departments follow in early 2027. The Water Bureau implements the convenience fee in January 2027 for utility billing, including water and sewer accounts. Administrative Services and Human Resources will apply the fee to administrative charges and internal service payments.
Administrative Adjudication will incorporate the fee for municipal citations, ordinance violations, and administrative hearings. Finally, the City Collector’s Office will implement the structure across centralized cashiering and front-desk collections.
To bypass the charge, local community members can utilize complimentary payment methods such as cash or check transactions at municipal locations. For questions regarding the fee structure or payment methods, residents can call or text 847-448-4311 or dial 311 while in Evanston.
