11-039 - O TOWN OF PROSPER, TEXAS ORDINANCE NO.
AN ORDINANCE OF THE TOWN OF PROSPER, TEXAS
ESTABLISHING A PROCESSING OR HANDLING FEE TO BE
COLLECTED AT THE POINT OF SALE FOR THE USE OF A CREDIT
CARD TO PAY A MUNICIPAL FEE, FINE, COURT COST OR OTHER
CHARGE,IF NECESSARY; PROVIDING FOR THE COLLECTION OF A
SERVICE CHARGE; PROVIDING FOR REPEALING, SAVINGS AND
SEVERABILITY CLAUSES; PROVIDING FOR PUBLICATION; AND
PROVIDING FOR AN EFFECTIVE DATE OF THIS ORDINANCE.
WHEREAS, Chapter 132 of the Local Government Code authorizes municipalities to
collect a fee for processing or handling at the point of sale for the use of a credit card to pay a
municipal fee, fine, court cost or other charge, said amount being reasonably related to the
expense incurred in processing or handling the credit card payment, not to exceed five percent
(5%)of the amount of the fee, fine, court cost or other charge ("Fee"); and
WHEREAS, Chapter 132 of the Local Government Code further authorizes
municipalities to collect a service charge if, for any reason, a payment by credit card is not
honored by the credit card company on which the funds are drawn, said amount being equivalent
to that charged for the collection of a check drawn on an account with insufficient funds
("Service Charge"); and
WHEREAS, Chapter 132 of the Local Government Code also authorizes municipalities
to charge a reasonable fee designed to recover the costs incurred in providing through the
intemet: access to information, collection of payments for taxes, fines, fees, court costs, or other
charges; or other services authorized by law; and
WHEREAS, Chapter 132 of the Local Government Code also allows municipalities to
contract with a vendor to provide access, collect payments or provide authorized services; and
WHEREAS, the Town Council of Prosper ("Town Council") has investigated and
determined that the Town of Prosper, Texas ("Town") receives many requests to pay for
municipal fees, fines, court costs and other charges through the use of a credit card; and
WHEREAS, the Town Council has further investigated and determined that it is in the
best interest of the Town and its citizens to allow individuals to pay for municipal fees, fines,
court costs and other charges through the use of a credit card; and
WHEREAS, the Town Council has further investigated and determined that allowing the
payment of municipal fees, fines, court costs and other charges through the use of a credit card
requires the Town to incur additional expenses for offering this service; and
WHEREAS, the Town Council has further investigated and determined that it would be
beneficial to the citizens of the Town to provide access to information, collect payments of taxes,
fines, fees, court costs, or other charges, or other municipal services authorized by law through
Ordinance No. 11- Establishing Processing or Handling Fee
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the internet; and
WHEREAS,the Town Council has further investigated and determined that providing the
access to information, collect payments of taxes, fines, fees, court costs, or other charges, or
other municipal services authorized by law through the internet is not feasible without the
imposition of a charge designed to recover the costs directly and reasonably incurred in
providing the access or service; and
WHEREAS, the Town Council has further investigated and determined that the
additional expenses incurred by the Town for offering this service will be significantly less for
payment of charges commonly found on utility bills by credit card, as opposed to the payment of
all other municipal fees, fines, court costs or other charges by credit card; and
WHEREAS, as a result of this discrepancy between utility bills and all other municipal
fees, fines, court costs and other charges, the Town Council has investigated and determined that
it is in the best interest of the Town to collect one processing and handling fee for the payment of
utility bills, by credit card, and another processing and handling fee for payment of all other
municipal fees, fines, court costs and other charges, by credit card; and
WHEREAS, the Town Council has further investigated and determined that it is in the
best interest of the Town and its citizens to charge the Fee and Service Charge, if necessary, to
offset the cost of providing this service of convenience as set forth below.
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE
TOWN OF PROSPER, TEXAS:
SECTION 1: Findings Incorporated. The findings set forth above are incorporated into
the body of this Ordinance as if fully set forth herein.
SECTION 2: Establishment of Processing or Handling Fee. A processing or handling
fee of three percent (3%) is hereby established to be charged by the Town at the point of sale for
processing or handling each time a credit card is used to pay a utility bill. For the purposes of
this Ordinance, a utility bill includes those charges commonly found on a Town utility bill,
including but not limited to charges associated with water, sewer, trash, storm drainage and
optional donations. A processing or handling fee of four percent(4%) is hereby established to be
charged by the Town at the point of sale for processing or handling each time a credit card is
used to pay all other municipal fees, fines, court costs or other charges. The Town Council finds
that said amounts are reasonably related to the expense incurred by the Town in processing or
handling the credit card payment.
SECTION 3: Establishment of Service Charge. A service charge in an amount
equivalent to that charged for the collection of a check drawn on an account with insufficient
funds is hereby established to be charged by the Town if, for any reason, a payment by credit
card is not honored by the credit card company on which the funds are drawn.
SECTION 4: Savings/Repealing Clause. All provisions of any ordinance in conflict
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with this Ordinance are hereby repealed to the extent they are in conflict; but such repeal shall
not abate any pending prosecution for violation of the repealed ordinance, nor shall the repeal
prevent a prosecution from being commenced for any violation if occurring prior to the repeal of
the ordinance. Any remaining portions of said ordinances shall remain in full force and effect.
SECTION 5: Severability. Should any section, subsection, sentence, clause or phrase of
this Ordinance be declared unconstitutional or invalid by a court of competent jurisdiction, it is
expressly provided that any and all remaining portions of this Ordinance shall remain in full
force and effect. The Town hereby declares that it would have passed this Ordinance, and each
section, subsection, clause or phrase thereof irrespective of the fact that any one or more
sections, subsections, sentences, clauses and phrases be declared unconstitutional or invalid.
SECTION 6: Effective Date. This Ordinance shall become effective immediately upon
its passage.
DULY PASSED AND APPROVED BY THE TOWN COUNCIL OF THE TOWN
OF PROSPER, TEXAS on this day of 2010.
RAY SMITH, Mayor
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ATTESTED TO AND
CORRECTLY RECORDED BY:
Karen Gill, Interim Town Secretary
Date of Publication Dallas Morning News
Ordinance No. 11- Establishing Processing or Handling Fee
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558990.v2
PUBLISHERS AFFIDAVIT
Proof Of Publication
The State of Texas
County of Grayson:
Before me,the undersigned, a Notary Public in and for Grayson County, Texas,
this day personally appeared Linda Dixon who, being duly sworn, according to
law, says that she is the Classifieds Manager of the Prosper Press, a weekly
newspaper published at 278 N. Dallas, Van Alstyne, Texas, in said county and state,
and that NOTICE OF ORDINANCE# 11-039
was published in said newspaper on APRIL 20, 2011 .
r
Subscribed and sworn to before me, a Notary Public, this28 day oflp'i!, 2011
;' CP PEGGY SCHOGGINPV (� �,
10 Notary Public '� `U,,,
k, STATE OF TEXAS v
of My Comm.Exp.03/06/2012
TOWN OF PROSPER, TEXAS
ORDINANCE NO. 11-039
AN ORDINANCE OF THE TOWN OF PROSPER, TEXAS ESTABLISHING A
PROCESSING OR HANDLING FEE TO BE COLLECTED AT THE POINT OF SALE
FOR THE USE OF A CREDIT CARD TO PAY A MUNICIPAL FEE,FINE,COURT COST
OR OTHER CHARGE, IF NECESSARY; PROVIDING FOR THE COLLECTION OF A
SERVICE CHARGE; PROVIDING FOR REPEALING, SAVINGS AND SEVERABILITY
CLAUSES; PROVIDING FOR PUBLICATION;AND PROVIDING FOR AN EFFECTIVE
DATE OF THIS ORDINANCE.
TOWN OF PROSPER, TEXAS
NOTICE OF PUBLIC HEARING
1. Notice is hereby given that a public hearing will be held at the Town Council meeting
on Tuesday, May 10, 2011 at 7:30 p.m. in the Town of Prosper Municipal Chambers at
108 W. Broadway Street, to consider and act upon a request to rezone 11.3± acres,
located on the southeast corner of Dallas Parkway and First Street, from Commercial
Corridor(CC)to Commercial (C). (Z11-0006).
All interested citizens and property owners are hereby notified of their right to appear and
be heard on these matters