[00:00:02] GOOD EVENING AND WELCOME TO THE JANUARY 6TH, 2026 REGULARLY SCHEDULED MEETING IN [1. CALL TO ORDER. ] NACOGDOCHES CITY COUNCIL. WE'LL CALL THIS MEETING TO ORDER. CHAD, WOULD YOU LEAD US IN PRAYER, PLEASE? I'LL BE GLAD TO. STAND FOR THE PLEDGES, PLEASE. FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS. ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL. TEXAS FLAG. I PLEDGE ALLEGIANCE. TEXAS ONE, STATE ONE AND INDIVISIBLE. NEXT ITEM IS OPEN FORUM AND WE DON'T HAVE ANY, DO WE, KAREN. OKAY, NOTHING IN OPEN FORUM. ITEM FOUR ITEMS TO BE REMOVED FROM THE CONSENT AGENDA, [5. CONSENT AGENDA] IF ANY. SECOND MOTION. SECOND. ALL IN FAVOR? AYE. MOTION CARRIES UNANIMOUSLY. [6.A. Discussion of electronic bill presentment and payment options for City utility and other eligible receivable accounts. (Assistant Director of Finance)] NOW WE HAVE ONE ITEM ON THE REGULAR AGENDA. ITEM SIX A DISCUSSION OF ELECTRONIC BILL PRESENTMENT AND PAYMENT OPTIONS FOR CITY UTILITY AND OTHER ELIGIBLE ACCOUNTS RECEIVABLE. KEVIN. ASSISTANT DIRECTOR OF FINANCE, CITY COUNCIL. KEVIN, ASSISTANT DIRECTOR OF FINANCE. WIDELY KNOWN. IT'S WIDELY KNOWN THAT PAYMENT PROCESSORS CHARGE CREDIT CARD FEES, AND CURRENTLY THE CITY ABSORBS THOSE FEES. AND I'VE PUT TOGETHER IN THE SLIDE IN FRONT OF YOU WHAT THAT LOOKS LIKE SEPARATED BY FUN FOR LAST YEAR. NOW, THE CITY ALSO OFFERS SEVERAL OTHER PAYMENT OPTIONS THAT ARE FREE OF CHARGE FOR THE CUSTOMERS. AND SO WITH THAT, FINANCE IS RECOMMENDING WE MOVE TOWARDS A FLAT RATE MODEL WHERE WE'RE PASSING ON THE CONVENIENCE FEE TO THE TO THE CUSTOMERS AND A PERCENTAGE BASE FOR NON-UTILITY PAYMENTS. NOW ON THE NEXT SLIDE, WE HAVE SOME OF THOSE PAYMENT OPTIONS THAT ARE FREE OF CHARGE RIGHT NOW. AND IT WOULD REMAIN THAT WAY WITH THE EXCEPTION OF THE THE LAST ONE THERE BEING THE THE ACH WILL HAVE A $0.75 PER TRANSACTION. NOW WE'RE BRINGING THIS TO OPEN FOR INPUT. AHEAD OF US BRINGING AN AGREEMENT FORWARD. AND WITH THAT, I'M OPEN TO ANY QUESTIONS. THANK YOU FOR THAT. GO BACK TO THAT FIRST LINE. OKAY. I'M THE ONE THAT KIND OF GOT INTO THIS THING BECAUSE I'M IN RETAIL AND I HAVE TO DEAL WITH THIS EVERY SINGLE DAY, EVERY SINGLE YEAR. AND, AND BASICALLY WHAT YOU'RE DOING IS YOU'RE GIVING AWAY $216,000, RIGHT? THE CITY IS PAYING FOR THAT CONVENIENCE FEE, RIGHT? AND THAT'S, THAT'S, THAT IS IN THE UTILITY FUND. BUT WHEN WE HAVE, WHEN WE GET HIT, EVERY OTHER MEETING ABOUT UTILITY FUND TRANSFERS, THERE'S, YOU KNOW, AGAIN, A CHECK CAN BE WRITTEN AND IT DOESN'T APPLY. SO THAT'S ONE WAY TO AVERT IT. AND IT DOESN'T AS FAR AS I'M CONCERNED, IT DOESN'T MAKE ANY DIFFERENCE WHETHER IT'S UTILITY FUND OR GENERAL FUND. IT'S STILL $216, $676. THAT'S A LOT OF MONEY. YOU KNOW THAT THAT WOULD GO A LONG WAY. AND BASICALLY WHAT YOU END UP DOING IS YOU'RE. PAYING FOR SOMEBODY'S VACATION IS WHAT YOU'RE DOING BECAUSE THEY GET POINTS AND THEY GET THIS AND THEY GET THAT ON THEIR CREDIT CARDS OR DEBIT CARDS OR NOT DEBIT CARDS. BUT, BUT I'M, I'M ALL IN FAVOR OF PASSING THIS ALONG. AND I'VE MADE THIS STATEMENT BEFORE THAT WE HAVE GIVEN AWAY ENOUGH REVENUE. THIS IS NOT COSTING ANYBODY ANYTHING BUT THE CITY. IT'S NOT COSTING THE CONSUMER ANYTHING. ARE THEY GOING TO BE A LITTLE BIT INCONVENIENCED? THEY MIGHT GET THEIR POINTS ON THEIR WHATEVER CARD THEY USE. SO IT'S $216,000, WHICH IS A LOT OF MONEY TO ME, [00:05:01] WHETHER IT BE IN THE UTILITY FUND OR THE GENERAL FUND. AND LET ME THROW ONE OTHER THING OUT. I HATE TO HATE TO HATE TO POINT THIS OUT, BUT YES, I KNOW WE'RE GOING TO GET GOLFERS ULTIMATELY COMING THROUGH HERE AND THEIR GOAL STREAMS AND THINGS, BUT IF YOU CAN AFFORD A PLANE JUST LIKE A BOAT, YOU KNOW, YOU, YOU PUMP GAS AT A MARINE, IT'S GOING TO BE EXPENSIVE. IF YOU'VE GOT A GULFSTREAM, BY ALL MEANS, YOU BETTER HAVE A GOLD CARD. SO I DON'T THINK Y'ALL SHOULD FEEL REAL BAD ABOUT IT. I HAVE A QUESTION. SO IS THE PROPOSAL. FIRST OF ALL, EVERYBODY DOES THIS. I MEAN EVERYBODY PASSES ALONG THE CREDIT CARD CHARGES TO THE CONSUMER. YEAH. SO I'M NOT ARGUING ABOUT THE LAST TWO TWO DIFFERENT CITIES I WAS AT. WE ENDED UP DOING THE SAME THING FOR THE SAME REASON. SO MY QUESTION IS ARE YOU GOING TO TAKE CREDIT CARD PAYMENTS AND THEN CHARGE A LOT OF PEOPLE LIKE CHARGE 3.5% FOR A CREDIT CARD USAGE OR I DON'T I DON'T KNOW WHAT'S BEING PROPOSED. IT'S OH, YOU CAN'T SEE THE. LET'S SEE. GO GO BACK BOTTOM. SO YOU'RE SAYING THAT YOU WILL CHARGE. OH I SEE, SO YOU FOR A CREDIT CARD, SAY I COME IN AND PAY $300 ON MINE. YOU WOULD EITHER CHARGE ME $1.90 3 OR 2.85%, OR IF IT'S UTILITIES WOULD BE THE FLAT RATE. AND THEN IF YOU'RE IF YOU'RE A HIGH ROLLER AND YOU GOT A G WAGON AND A GULFSTREAM, YOU'RE GOING TO GET HIT WITH 2.85% ON YOUR ON YOUR GAS UP. THE CITY'S NOT RECEIVING THAT REVENUE. THE I UNDERSTAND THAT THE PROCESSOR IS THE ONE THAT'S GETTING THAT MONEY. I UNDERSTAND THAT I'M JUST TRYING TO I THINK THE YOU KNOW, WHAT I'VE SEEN IS, YOU KNOW, 0.5 PERCENT FOR. WELL, THIS IS ACTUALLY. KEVIN. CAN YOU SPEAK TO THIS? BECAUSE THIS IS ACTUALLY NOT THIS IS KIND OF. GO AHEAD. YEAH. SO HERE WE SEE IT'S SPLIT INTO MODELS. SO THE NON UTILITY AND THE UTILITY AND THE REASON FOR THAT IS UTILITY HAS A UNIQUE FACTOR TO IT BECAUSE THERE ARE CERTAIN THRESHOLDS AND IT'S PREDICTABLE WHERE THEY'RE ABLE TO OFFER US A FLAT RATE. AND SO IF YOU LOOK AT AN AVERAGE BILL, LET'S SAY 160, AND YOU CHARGE A FLAT RATE JUST THERE, AND THEN BY SWITCHING TO THIS MODEL, YOU'RE CUTTING IT BY 58% REGARDLESS OF WHO'S OBSERVING IT OR NOT. SO THAT ON ITS OWN IS ALREADY ONE OF THE ATTRACTIVENESS OF MOVING TO A FLAT RATE MODEL. NOW EVERYTHING ELSE WILL NEED TO GO THROUGH A NON UTILITY BECAUSE IT THAT THAT DEAL IS ONLY AVAILABLE FOR, FOR UTILITY PAYMENTS. SO MAKE THIS REAL SIMPLE FOR ME AND FOR EVERYBODY WHEN I BRING MY CREDIT CARD TO THE OFFICE FOR MY $300 WATER BILL, WHICH INCLUDES WHATEVER, YOU KNOW, THE GARBAGE AND THE WHOLE THING. WHEN I BRING THAT, WHAT WILL I BE CHARGED? 193 FLAT RATE ALWAYS. YEAH, IT'S A FLAT. IT'S A FLAT RATE. REGARDLESS, REGARDLESS OF THE AMOUNT OF THE BILL, IT COULD BE $10 OR $10,000. AND THAT WILL COVER ALL OF OUR FEES. WELL NOT AGAIN, THIS WOULD BE GOING DIRECTLY TO THE PAYMENT PROCESSORS AT THIS POINT WHEN WE MOVE TOWARDS A PASS THROUGH MODEL. THE CITY HAS DOESN'T TOUCH THAT THAT PORTION OF IT ANYMORE. WHAT WHAT'S HAPPENING NOW IS WITH THE ABSORBED MODEL, THEN THAT BILL COMES TO THE CITY. WITH THIS, THEY'LL BE PAYING IT RIGHT WHEN THEY'RE PASSING THE CARD. SO IT DOESN'T IT DOESN'T TOUCH THE CITY'S ACCOUNTS. OKAY. SO YEAH, I MEAN, I'M JUST WONDERING IF IT WOULD COVER IT BECAUSE SAY I'VE COME IN AND PAY $1,000. IT'S STILL $1.93. IT IS. YES. THERE ARE CERTAIN THRESHOLDS WITHIN THE AGREEMENT. AND AT A LATER TIME WE'RE GOING TO BE PRESENTING THAT AGREEMENT ALSO. BUT THERE ARE CERTAIN THRESHOLDS, BUT IT'S GOING TO BE TO THE NORTH OF OVER 1000, UP TO 5000. I THINK THERE ARE CERTAIN CRITERIA FOR IT TO QUALIFY AS A UTILITY BILL. GO DOWN THERE AND PAY A TICKET AT SCOTCH. IT'S GOING TO BE 2.85%. IT'S PLEASING THE SKY. AND AGAIN, IF YOU WRITE A CHECK IT'S NOT NOT APPLICABLE. BUT THE CHECK IS $0.75 RIGHT? NO. SO THESE ARE THE OTHER FORMS OF PAYMENTS THAT ARE COMPLETELY FREE. JUST THE DEBIT. YEAH. SOME OF US STILL HAVE CHECKBOOKS. OKAY. I APPRECIATE THE FINANCE DEPARTMENT LOOKING AT. I'D LIKE FOR US TO. [00:10:21] GOTTA HAVE REVENUE. ONE THING WORTH SAYING ALSO MOVING TOWARDS THIS MODEL, IT EXPANDS THE PAYMENT OPTIONS FOR, FOR CUSTOMERS ALSO, SO THEY CAN USE THE OTHER ONLINE FORMS OF PAYMENTS. IT ALL FALLS THROUGH THE SAME MODEL. AND SO IF THEY USE PAYPAL OR VENMO OR WHATEVER. YOU ASK WHAT IS THAT'S THE, THE DRIVE THROUGH. THERE'S A LITTLE KIOSK THERE. IT'S AN ACTUAL COMPUTER THING. YEAH. WELL, FOR THE UTILITY PORTION, IT'S GOING TO BE PER BILL. SO FOR WATER BILL YOU'LL HAVE THAT FEE OCCURRING TO IT. NOW AS FAR AS SEEING ALL OF WHAT YOU'RE PAYING THE CITY, YOU WOULD BE ABLE TO SEE IT ON A UNIFIED PORTAL AT THAT POINT. PART OF MOVING TOWARDS THIS MODEL. YES. EVERYTHING IN ONE PLACE. AND BUT IT WOULD BE CHARGED SEPARATELY FOR FOR THE UTILITY. NOW, AS FAR AS GOING IN THERE AND BEING ABLE TO EXECUTE THE PAYMENT FOR ALL OF IT, YOU WOULD HAVE THAT FLEXIBILITY. YES. YOU CAN GO IN THERE AND SELECT ALL OF YOUR BILLS, INCLUDING ANY, ANY OTHER THINGS THAT YOU'RE PAYING TO THE CITY IN ONE PLACE, WHICH IS ONE OF THE REASONS FOR US TO MAKE THIS UPGRADE BECAUSE RIGHT NOW IT'S KIND OF SEGMENTED IN DIFFERENT PROCESSORS, AND THAT JUST MAKES IT A LITTLE BIT DIFFICULT FOR THAT. BUT ONCE IT'S ALL IN ONE PLACE, THEN YES, YOU'LL BE ABLE TO SEE ALL OF THEM IN THERE. THE HISTORY OF ALL OF IT AND BE ABLE TO PAY. BUT HE WOULD PAY. 225 RIGHT. IF HE HAD THREE ALL AT ONCE. THREE METERS. IS THAT CORRECT? HE WOULD PAY 193 FOR EACH METER. YEAH. OR I'M TALKING ABOUT IF YOU HAD IT ON A DEBIT. ACH YEAH. OH YEAH. ACH YEAH. YOU'LL PAY $0.75 AT THAT POINT. YEAH. ACH, IF YOU'RE PAYING ANYTHING THROUGH ACH, IT'S A FLAT FEE. IT'S ALSO A FLAT FEE, AND IT'S GOING TO BE $0.75 PER PER PAYMENT. YEAH. WHAT ARE WE GOING TO DO WITH ALL THIS EXTRA MONEY? WELL, IT'S IN IT'S ON THE IT'S ON THE UTILITY FUND SIDE. SO AGAIN, IT'S YOU KNOW, WE'VE TALKED ABOUT THIS. YES, WE'VE BEEN AS, AS A PERCENTAGE OF THE BUDGET THE LAST SEVERAL YEARS, WE'VE ACTUALLY REDUCED THE PERCENT OF TRANSFERS. BUT THAT THAT'S THAT MUCH LESS, YOU KNOW, REDUCE THE COST, REDUCE THE TRANSFERS. YOU MENTIONED. I THINK THIS IS ALL GREAT. I THINK IT'S CHEAP. I THINK, YOU KNOW, IF WE WERE GOING TO I DON'T KNOW, I WOULDN'T BE ADVERSE TO AS LONG AS WE COVER ALL THE COSTS OF THE. BUT BUT YOU SAID YOU'RE GOING TOWARDS SOMETHING ELSE. CAN YOU TELL ME A LITTLE BIT ABOUT WHERE WE'RE HEADED IN THE BILLING AND. WELL, WHAT I CAN SAY IS THROUGHOUT THIS REVIEW PROCESS, WE WE'VE REACHED OUT TO DIFFERENT PROCESSORS TO TRY TO SEE WHICH ONES WE WOULD BE ABLE TO NEGOTIATE EVERYTHING THAT WE CAN. BECAUSE ONE OF THE OTHER THINGS IS THERE'S THE VOLUME. SO THESE THIS IS BEING PROCESSED THROUGH THE CITY. AND SO THAT GIVES US THE LEVERAGE TO. ALSO, EVEN IF IT IS A PASS THROUGH MODEL THAT WE'RE NEGOTIATING THE BEST RATE FOR, FOR THE CUSTOMERS. AND SO THIS RIGHT HERE REALLY, REALLY CONSOLIDATES THAT. IT PUTS IT ALL UNDER ONE SINGLE MODEL WHERE IT REALLY IS VERY COMPETITIVE. WE'RE COUNTING WITH. SO WE'RE COUNTING THAT THERE IS GOING TO BE SOME CHANGE IN HOW THE [00:15:06] THE REVENUE IS COMING IN. BUT WHAT WE ARE CONSIDERING IS THAT THERE ARE GOING TO BE SOME POSITIVE CHANGES BECAUSE WITH ADOPTION RATE INCREASING, THAT MEANS MORE PEOPLE ARE GOING TO END UP BEING AUTOPAY OR ACH. AND WITH THAT, IT, IT IT CUTS ON HAVING TO PRINT THE BILL. AND THERE ARE OTHER SAVINGS THAT ARE GOING TO BE INHERENT TO THIS PROCESS THAT ARE NOT BEING SHOWN HERE. ASIDE FROM FROM THE, THE DOLLAR AMOUNT FOR, FOR THE ACTUAL FEE. SO THERE ARE SOME COLLATERAL SAVINGS THAT ARE GOING TO HAPPEN JUST ON BILLS ALONE. THE CITY PAYS NORTH OF, OF 5 TO 10,000 TO PRINT THOSE BILLS. SO THAT IS ANTICIPATED. AND THE STAFF TIME JUST THAT'S THE OTHER PIECE I THINK THAT'S KEVIN TRYING TO GET AT IS THAT IT'S LABOR INTENSIVE. BUT YOU DON'T NEED A THIS IS JUST DISCUSSION, RIGHT? THIS IS JUST FOR INPUT. YES. OH, YOU'RE BRINGING AN AGREEMENT AT A LATER DATE. ANY OTHER QUESTIONS? GOOD JOB, KEVIN AND FINANCE DEPARTMENT. THANK YOU VERY MUCH. THANK YOU. OKAY. REGULAR. MEETING THE NIGHT [7. EXECUTIVE SESSION] WENT TO TEXAS. GOVERNMENT CODE, SECTION 551.072. WE WILL ADJOURN INTO EXECUTIVE SESSION AND BE BACK SHORTLY. THANK YOU VERY MUCH FOR COMING. 609 WE'RE RETURNING FROM EXECUTIVE SESSION AND DO I HAVE A MOTION. TO ACCEPT THE. SECOND. ANY DISCUSSION? WELL, I JUST WOULD LIKE TO SAY THAT THAT IN CASE ANYONE'S MISUNDERSTANDING HERE, THE CITY IS TRYING TO PROTECT THIS STONE FORT. WE'RE NOT TRYING TO TAKE IT AWAY FROM ANYBODY. WE'RE TRYING TO GIVE IT A LOT LONGER LIFE SPAN WITH A LOT MORE ATTENTION THAN IT'S EVER GOTTEN. IT'S WHAT STEPHEN F AUSTIN AND THE UNIVERSITY OF TEXAS SYSTEM WANTS, AND SOMEBODY'S GOING TO TAKE IT. AND I THINK IT'S BEST IN THE HANDS OF THE CITY. ABSOLUTELY. SECOND, WE HAVE A MOTION. AND SECOND, ALL IN FAVOR? AYE. CARRIES UNANIMOUSLY. THAT CONCLUDES TONIGHT'S MEETING. IT IS 610. GOD BLESS THE GREAT CITY OF NACOGDOCHES, TEXAS. * This transcript was compiled from uncorrected Closed Captioning.