HomeMy WebLinkAboutX-E-02 (a,b) Accounting Software Changeover
City Council Memorandum
To: Mayor Fasbender & City Councilmembers
From: Chris Eitemiller, Finance Manager and Ashley DeBernardi, Assistant
Finance Manager
Date: May 6, 2024
Item: Finance System Project Overview
Council Action Requested:
Approve Resolution for Temporary Waiver of Utility Late Fees
Background Information:
The City is in the latter stages of implementing a new finance system. This is the
culmination of a two-year project. Staff’s intention is to provide information to Council
and the public.
• The current finance system will be shut down at the close of business on Tuesday
May 7. This is necessary to allow our new software vendor, BS&A, to migrate
and validate data.
• The City will be unable to accept electronic payments from May 8-12, either in
person or online.
o Cash or check in person can be accepted, but cannot be processed until
Monday May 13, when the new system goes online.
• Due to the data migration, any customers who are enrolled in a form of
automatic payment, will have to re-enter their data.
o Users will be able to enter their payment information starting Monday
May 13.
o We expect that some utility customers currently on auto-pay may get
caught with a late fee before they re-register their account in the new
system. Because this is due to the City’s software change, we recommend
the attached resolution allowing temporary waiver of late payment fees.
• City staff will not handle a customer’s personal payment information.
o This is to improve data security and is also required for PCI compliance.
• BS&A software provides greatly improved cyber security.
o As one example, when users enter their bank information, there are
security measures that can verify if the account information is accurate to
the user identity that has been entered.
• Public messaging explaining this transition has been ongoing since Thursday
May 2 on various platforms.
• New fee structure for automatic payments:
o Credit card fees will now be 2.95%, plus $0.50 per transaction.
o ACH payments, which had been free previously, will now cost $3 per
transaction up to $1,000, $6 for transactions up to $5,000 and $12 for
transactions above $5,000.
X-E-02 (a,b)
o These fees will be passed directly to customers through the BS&A
software and will not impact the City’s revenues or expenses.
• Cash and check payments will not be subject to a transaction fee.
Financial Impact:
N/A
Attachments:
Resolution Approving Temporary Waiver of Utility Late Fees
X-E-02 (a,b)
CITY OF HASTINGS
DAKOTA COUNTY, MINNESOTA
RESOLUTION ____________
A RESOLUTION APPROVING TEMPORARY WAIVER OF UTILITY LATE FEES
WHEREAS, the City has encourages customers to be on an auto-pay system for payment of their
utility bills;
WHEREAS, the City will be changing over to a new accounting software system this month;
WHEREAS, customers will need to re-register in order to be on the auto-pay with the new
accounting software;
WHEREAS, the City is providing notices to customers about the need to re-register any auto-pay
accounts;
WHEREAS, the City recognizes that some customers may inadvertently get caught with a late fee
before being able to re-register;
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Hastings,
Minnesota:
Notwithstanding any provision to the contrary, the Finance Department and City Administration
are authorized to waive late fees and penalties for late payment of municipal utility fees imposed
during the next three months.
Adopted this 6th day of May, 2024.
______________________________
Mary D. Fasbender, Mayor
ATTEST:
____________________________
Kelly Murtaugh, City Clerk
X-E-02 (a,b)