Starting June 1, all Palm Coast customers paying their utility bills by credit or debit card–67 percent of customers last year–will see their bills increase by $1.95 per month, or 3.5 percent if they pay in person. Payments by electronic checks will cost 43 cents per transaction.
The Palm Coast City Council in February, overriding its finance director’s recommendation, unanimously approved changing the payment model to pass those costs on to customers. Until now, the city was absorbing $700,000 worth of such fees a year ($728,000 in the past year).
Customers may still avoid paying the new transaction fees if they pay bills by check (by mail or in person) or in cash, in person. The new model is similar to that of Flagler Beach. Ormond Beach still absorbs transaction fees.
While customers are used to paying transaction fees for most of the services they pay for, the timing of the city’s new transaction costs may create an additional if temporary headache for the council: the fees are in addition to the 36 percent utility rate increase over the next 30 months that the council approved two weeks after approving the new transaction fees. The rate increase kicked in last month.
Utility bills include water, sewer, garbage and stormwater fees. A household paying $200 a month will see an additional $1.95 per month, or $23 per year, for the transaction fee, unless the 2.45 percent fee applies, which would then raise the monthly transaction cost to $4.90, or $59 for the year.
Until this year, only building department fees were passed on to customers. All other transaction fees were absorbed by the city. The city’s golf club and its tennis club also started passing transaction fees on to customers this year.
Utilities, stormwater and garbage accounts are run as “enterprise funds,” meaning that they are self-sustaining and fee-based, rather than tax-supported. But business tax recipes and code enforcement fines will also be subject to transaction fees from now on.
“I don’t think that everything should be run like a business,” Council member Theresa Pontieri said. “I don’t think Parks and Rec should be run like a business in the city. But I do think that the enterprise funds should be so in my estimation. User fees like this should be passed on to the user for an enterprise fund” like the utility and stormwater fund.
“I agree that the enterprise prize fund should be like that as well as at a minimum, I think code should be that way,” Council member Ty Miller said, “I don’t see any world that the city should be absorbing costs associated with code violations.”
The change in policy was part of the city’s approval in February of new contracts with Paymentus and Tyler Technologies, the two companies that process electronic payments for the city’s customers. So far this year, the city has paid its payment-processing companies $639,000.
City Finance Director Helena Alves asked the council whether it wanted to continue along the same model–absorbing the fees rather than passing them on. “We would propose to maintain the same type of arrangement unless you wanted to change it,” Alves told the council.
Alves had spoken about the options with the city’s rate consultant, who recommended against adding another layer between the customer and the city–that layer being the processing fee. “Do I want to pay the fee, or do I want to process by check?” Alves said, imagining a customer’s thinking, when faced with new fees, and knowing that the majority of customers pay by credit card, remotely. “You already have your account set up, you have your credit card in, and there only seems to be an interruption in that bill-to-payment when your credit card is set to expire and you have to go in and renew it, versus you’re adding another decision point.”
Miller said customers face decision points innumerable times, and still have the option to avoid fees. And there’s no question that the city would save considerable sums.
“The savings to the city would be approximately $700,000 because that’s what costs to process our payments. That would be a fee that you would pass on to your users,” Alves said. But she also said something that appeared not to register with council members: the costs the city was absorbing were already built into the rates currently paid by the residents. “Same as if you’re walking in paying by cash,” Alves said. “Those costs are calculated into the rates that are paid by the residents.”
In other words, the current rates reflect the cost of the transaction fees, but now that the city will no longer bear that cost, it will, in effect, realize an additional windfall.
The amended master service agreement with Tyler Technologies “will allow customers to see real-time payments through the customer portal and allow the city to upgrade the cashiering software with minimal budget impacts,” a memo to the council stated. “The new master services agreement with Paymentus will allow the City to utilize some of the new features such as real-time lockbox payments, scan-to-pay at local retailers, and allow customer[s] to keep their current Utility customer portal.”
On Thursday, the city issued the following breakdown of how fees will and will not apply, starting June 1.
Fee Structure Effective June 1, 2025:
In-Person Payments:
- Customer Service payments made by credit/debit card: 3.5% processing fee (minimum fee: $2.50)
- Community Development payments made by credit/debit card or digital wallet: 2.45% processing fee (
minimum fee: $2.50)
Online Payments:
- Utility Bills (credit/debit/digital wallet): $1.95 per transaction
- Utility Bills (ACH/eCheck): $0.43 per transaction
- All other non-utility payments (credit/debit/digital wallet): 2.45% processing fee
- All other non-utility payments (ACH/eCheck): $0.43 per transaction
Transaction Limits:
- Maximum online payment for non-Utility Billing (e.g., Building Permits): $50,000
- Maximum online payment for Utility Bills: $10,000
No fees will be charged for payments made by cash, personal or company checks, money orders, or bill payments initiated directly through your bank.
Skibum says
Oh yeah, the city thinks they are so swift by making this change, do they? Well I have some news for the city. For several years, the City of Palm Coast has had a concerted effort to persuade utility customers to “go paperless”, enroll in the online payment portal with a credit card attached to the online account for automatic payments, as well as to receive no actual paper utility statements in the mail. Well, I did my part several years ago and followed through with the city’s request because it was said that doing so would save me time and would also save the city money because they would not need to send monthly statements to my house through the U.S. Postal Service. So I guess all that effort was now somehow misguided, or maybe even “fraudulent” because it has been costing the city and extra $700,000? How could this be?
OK, I got the latest message LOUD and CLEAR! I am going to go online and CANCEL my automatic payment authorization, delete the credit card information from my utility account, and stop the paperless authorization. Back to square 1, so starting the first of next month, the city can MAIL my utility bill to me and I will enclose a check and mail it back or drop it off in person if I am near city hall. I am not paying the extra charge, and if doing this results in extra work in the utility department for staff, they will just have to deal with it because of this stupid, backwards thinking and inefficient burden they are placing on residents.
Joe D says
Okay….to my knowledge, the cost to process a paper check is MUCH more expensive than a debit card payment. In Flagler Beach, I’m used to paying a no fee (at least at the moment) electronic check.
The REAL issue should be: let’s take a look at the PROCESSING COMPANY they are using that charges $700,000 per year in processing fees!?!
I have no problem with a fee to use a credit card, I remember in my younger married days when my wife and I ran a Historic 6 room Bed and Breakfast as a second business, the processing fees WE paid to process credit card using guests (95% of them), were considerable, and we just “ate” it as as a cost of business. I see now, that wasn’t fair to our CASH paying customers (since part of the room charge was based on covering those fees).
Debit cards and electronic check payments should be no charge. Since they process almost immediately.
I SERIOUSLY think it’s time to rethink those PROCESSING COMPANY contracts. Those fees seem high…but it also is ridiculous that Palm Coast was “absorbing” $700,000 in fees!!
FLF says
Just set up a electronic payment from your checking account, I’ve been doing it for over 20 years, not one problem.
JC says
Sadly I support the council on this decision. Payment fees via debit/credit card acceptance has been rising over the years and it is becoming a bigger hit on companies bottom lines. This is on top of fees that a payment provider would charge extra just to use them as the payment provider towards the city. Flagler County been charging card fees for years, which is why I prefer paying Personal Check or Online ACH/eCheck since it is no extra charge. Can’t say I am a fan of Palm Coast charging 43 cents extra for Online ACH/eCheck, but I will live.
Before people say Palm Coast can afford $700,000+ of fees per year, that is still $700,000+ per year on fees. With a growing population the amount of payment fees will only go up, which Palm Coast will have no choice but to push those fees towards the customer.
A good bit of small businesses in Palm Coast that I do business with do charge extra for paying with a debit/credit card. Those are a hidden cost of business, and those businesses really prefer if you pay cash since you don’t get hit with the surcharge and it keeps the business running. Either that or raise prices for everyone so even cash customers are in a way paying for surcharge fees.
If you are a friend of a small business owner, ask them how much they pay extra just to accept debit/credit card payments. It can be shocking.
Susan says
Let’s all mail our payments in and with the post office delivery you can bet the payments won’t arrive on time.
I never heard of being charged to pay a bill. This is outrageous. The City of PC and the Mayor along with all their council members sure know how to disappoint their taxpayers.
Ken says
Processing costs are part of doing business and should already be part of the free. Well I hope they enjoy cashing the less time consuming and hassle free cashing ot my checks.
Dennis G Lynch says
I guess council members live in some places of the city that does not experience what I do. About every 3 to 4 days I have to scrub the toilets in my house to rid them of the reddish, pinkish stain at the water line of the toilets. I have been using a pumis stone to clean the stain, as regular household cleaning products don’t do the job. I wouldn’t drink the water this city provides to our residences, because I don’t trust the quality of the water. Now I’m reading they want even more for this crap they call water. Anybody considering moving to this city would do well by themselves and their families to reconsider. I’d won’t mind so much paying for quality water, but you ain’t getting here!
Robjr says
So these folks are putting an additional tax onto the carrying charge.
They know exactly what they are doing.
Squeezing the taxpayers wherever they can.
I am still waiting for streets I travel to be paved so I won’t have to
continue to dodge potholes.
Mark says
Would be nice if you could still pay in person on Utility Drive or drop your payment in the collection box there.
Eileen S Araujo says
another way for the city to overcharge the customers who pay their bills on time
Richard Fay says
I read this article and I left with a sinking feeling that there may be some sort of double dipping going on. If I read this quotation appropriately : ‘ … she also said something that appeared not to register with council members: the costs the city was absorbing were already built into the rates currently paid by the residents. “Same as if you’re walking in paying by cash,” Alves said. “Those costs are calculated into the rates that are paid by the residents.” In other words, the current rates reflect the cost of the transaction fees, but now that the city will no longer bear that cost, it will, in effect, realize an additional windfall. ‘
When will the potential $700,000.00 windfall be returned to customers?
Linda Cohen says
For over 25 years I have asked why those of us who have set up payment thru a credit card were receiving an ENVELOPE to MAKE OUR PAYMENT! What a waste of $$$$ on envelopes that go into the garbage! Never received an answer! And now a fee for paying your bill ! Ridiculous. Makes things worse for Senior citizens and others who don’t want to give out bank info or who don’t use computers!
David L Gardner says
Geez, there is a cost and other risks (embezzlement) in handling cash transactions, and check transactions. After getting hammered with the costs of the new waste water facility, this is just irritating. What’s next? Parking meters at Town Center?
Clueless council says
This city council is absolutely clueless. I am canceling my auto pay and will request a paper bill. That will cost them way more!
PB says
This absurdity makes me where they will be putting the toll booths on 100 or Belle Terre!
How do politicians sleep at night?
Atwp says
Republicans, Republicans, Republicans, O Republicans.
Deborah Coffey says
Stop complaining Palm Coasters. YOU keep voting in these horrible Republicans that are willing to bleed you dry. YOU are getting exactly what you continually vote for…incompetence and theft! But sure, you’re busy “owning the libs.”
Penny says
Is there a fee for paying in person in Pennie’s? Is that considered cash? I think I can order the Pennie’s from my bank monday for next months bill.
Km says
Typical heinous Small government municipality. Squeeze you citizens to death while allowing mass building with no infrastructure ready for it. Well done as$hol3s
PeachesMcGee says
Don’t go to one of the asian markets. 4% for cards now.
Many businesses charge to offset fees. PC is no different.
JimboXYZ says
My bank processes my ACH/e-checks for free currently. Why would there be a charge of $ .43 per transaction ? I guess the 43 cents is cheaper than the $ 1.95 for a debit/credit card charge. I’m going to terminate the credit card & pay thru my banks e-check to save $ 1.52. Pretty messed up, a paper check is free, an e-check is 43 cents ?
JimboXYZ says
And here’s a question, under Alfin the Utility Lobby at
2 Utility Drive Palm Coast, FL 32137
was permanently closed 10/18/2024. Their reasoning, verbatim ?
“This change is part of our ongoing efforts to enhance customer satisfaction by optimizing resources and providing more efficient service to our residents.”
Growth that nobody wanted, that was supposed to pay for itself. Closing the Utility Payment Lobby for more efficient service. Definitely not any better convenience for the entire City for location(s). They found creative ways to defeat everything that they’ve improved for everyone over the last 4 years. But we can build a Splash Pad, pickle ball courts for a Tennis center expansion. The “Quality of Life” just keeps improving with every improvement. I’m just so happy now. that I can’t stand this much happiness. Nobody should be this happy, have a right to be this happy, have this much happiness in their daily lives ? How did this change slip by under the radar ? Everything else went thru the city council for utility increases ? Was it part of the package deal of bending us over for the ankle grab ? Don’t recall it being art of the $ 512 million in deb for the Sewage Treatment Facility fiasco of the last Mayor that ran for re-election on a self proclaimed record of fiscal responsibility. Alfin was simply the biggest mistake for being a special election replacement for Holland. This just shows up 2 weeks before being implemented 06/01/2025. I feel for Norris, his 4 years have been sabotaged & sandbagged by Holland & Alfin Mayoral administrations. And in the end, each & everyone of us has to take a bite of this poop sandwich.
https://www.palmcoast.gov/newsroom/home/details/closure-of-utility-lobby
I guess the location that we would schedule to send thru our bank would be this location. I wouldn’t expect a transaction fee, my bank doesn’t charge me for one ?
160 Lake Avenue Palm Coast, FL 32164
There should be zero charges since the bank doesn’t charge for that ACH/e-check, rather than use the Palm Coast Connect Portal (PCCP) ?
JimboXYZ says
This is the way to beat the fees. I have no reason to use the Palm Coast Connect Portal beyond seeing the monthly ebilling statement.
“No fees will be charged for payments made by cash, personal or company checks, money orders, or bill payments initiated directly through your bank.”
Greg says
Cancelled my paperless bill and payment. You can now mail me my bill and will pay by chevk
Tracy says
Maybe I will pay my bill with change….
Just Saying says
There’s something shady going on in the City of Palm Coast that might warrant an investigation. Did anyone else notice that they billed us for the untility increase in March before it took effect on April 1st? Then they decide to hit everyone up for paying their bills by credit card, etc., when supposedly, it was already included in the April 1st increase. We need accountability here! How much more can they extrapolate from the unsuspecting residents of Palm Coast?
tulip says
TO PennySays-who made the comment about paying in pennies. Think about hoe much $100.00 in pennies would weigh. It’s a fun thought though, but definately not easily done
Louise says
STUPID STUPID STUPID!!!!!
THIS IS ABSOLUTELY RIDICULOUS!!! AND TO TOP IT ALL OFF, OUR BILLS ARE NOT MONTHLY, THEY ARE EVERY 28 DAYS!!!! MY BILL IS NOW $223 FOR 3 OLDER ADULTS IN ONE HOME!!!! SO SOMETIMES WE HAVE 2 BILLS DUE IN ONE MONTH!!! THAT’S $400-$500 IN A MONTHLY BUDGET THAT IS WITH A MINIMAL INCOME OF SOCIAL SECURITY!!!!
And we were told when they sold the crippling water company that we wouldn’t get punished for their total misuse of millions of dollars in loans. What a bunch of crap!!!!!
Rick says
Let me say that this is only the beginning of up charges, it will only morph into up charges for many other things including property taxes and more, if you are intelligent you would get the heck out of PC while the getting is good, before you may even be stuck in the ever increasing traffic, which is getting worst by the day, tring to navigate streets not designed for the traffic applied, nor the traffic control signals.
Our house is under contract to close within a week – and GOOD BY PALM COAST, THANK GOD WE GOT OUT IN TIME !
🙂🙃🙂
Alice says
I received our June bill and not notice in there about this fee information. So they didn’t even notify people in their monthly bill. If you don’t go into Flagler Live you never would know about this.
Sneaking for sure. Another example how Unprofessional the City of PC Mayor and Council Members operate.
Notsofastcrooks says
Turned on paper billing to cost them money and setup billpay through my bank. We can play this game too
Pennies says
Tulip – $100 in pennies weighs just over 55 lbs. I’ll owe about 170 lbs in pennies. I think I can leave that on the lobby floor; just roll it in on a dolly. That’ll be a nice monthly workout for me.
Pennies are legal tender, and I think they have to post somewhere, online, in the office, someplace obvious that I can see and get to – that they do not accept pennies as payment. Morgan and Morgan will know!
Skibum says
For those of us old enough to remember… when this idiotic change to the city’s utility billing was approved and implemented by the air heads on the city council I immediately was reminded of what all of the banks did to customers not long after the new technology of ATM machines were fairly new. Many banks tricked customers into using the ATM machines outside banks and other locations by telling customers it would be so much more convenient AND FREE for them, no waiting in lines, etc. etc. Then, after customers got used to using ATM machines, the banks cut teller jobs to save themselves money and then started adding fees for this and fees for that on many of the ATM machines that customers had become used to!!!
This hairbrained scheme by the city council resulted from the city having an agreement with the company that processes online payment transactions. First, if they couldn’t calculate the costs involved properly when the city contracted with the company, that is their own fault, NOT all of the customers who were duped into setting up the online accounts on the city’s website. Secondly, I doubt very much anyone on the city council even questioned whether the $700,000 expense was still a savings to the city compared to how much money it cost the city to have a sufficient staff of employees at city hall to process all of the manual payments. I would bet it is still cheaper to use the payment processing system than it is to pay all of the salaries and benefits to the employees needed if the city did not have a contract for the online payments. Boneheads usually act first, then regret their mistakes later!
Volodymyr Zelenskyy says
Whoever handles the Treasury Operations for the City of Palm Coast is doing a terrible job.
The city needs to find a new Merchant Services provider to process their electronic payments as the current fee structure is NOT COMPETITIVE.
$0.43 to process an electionic check is absurd. That is nothing but an ACH Transfer [same as “direct deposit” for paychecks] and should cost no more $0.10.
3.5% for debit and credit card payments is also ridiculous. That should be no more than 2.5%.
Lastly, accepting electionic payments is the cost of doing of doing business and should be “built in” to the monthly service fees. Adding a surcharge like this is nothing but a bad business practice at best and at worst, a new source to generate revenue.
I would also like to point out that Business Transaction fees, according to GAAP [General Accepted Accounting Principles] can be written off. In other words, they can be used as a deduction against taxable income.
If the city is now charging a processing fee, they are no long eligible to use this deduction.
Unfortunately, I don’t have enough faith in the city to properly account for this, so it would not surprise me if they continue using this deduction.
The Truth says
The biggest issue I have with this is the lack of communication from the City. No notice of this in our recent bills. Absolutely absurd.
If you use a 2% cash back card you are getting $2 for every $100 spent. That alone would cover the processing fee so you are still coming out ahead. I understand how upset people are but since the fee for CC is a flat $1.95 I’ll continue using my CC since my rewards more than cover the fee
Mr. David says
I just assumed responsibility for my deceased father’s home in Titusville, about an hour south of PC. Vacant house using no water, so the bill was just the fees. Guess how much?
$13.68.
laurel says
Well, local governments sure know how to make their constituents happy! The fiscally responsible Republicans strike again!
Actually, we are all now caught in the fee trap. Everywhere you turn, there is a hand out pointing to your wallet. It’s crazy. First, as Skibum correctly noticed, we were told to go paperless to save money on monthly bills. Each month, the bills showed up on our credit cards, supposedly to save trees and the expense of the paper. Lowe’s said we could save 5% by using their card, but then decided to charge us $2 a month fee for sending us a bill! So now I use VyStar credit card instead of Lowe’s. So pay the VyStar charge by check. Now, VyStar charges $9 for new checks, and calls it shipping expense…for two, small books. If you order from Harland directly, it’s $16 and also called “shipping.”
Linda Cohen noted that each auto pay bill sent to us includes an envelope. I pay my Back of America credit cards by auto pay, and yes, for each one, they send me an envelope every month! So it’s not just government, it is the way of today. This is bean counters in action. We have a bean counter epidemic, and they do not have their act together.
We noticed a local restaurant that automatically assumes you will pay be credit card, and charges the fee on each bill. Shops are charging (various rates) fees for purchases. Some young folks use credit cards everything they purchase, right down to chewing gum. That’s got to add up! Just when cash was about antiquated, it’s back!
It’s probably going to get worse before it gets better…if it does get better.
Throw the bean counters out!
Robjr says
DO NOT FORGET to disable to PAPERLESS button on your Palm Coast customer portal utility bill web site. When you receive your hard copy invoice go to your bank web site and set up a payer. A hard copy check will then be mailed to the City of Palm Coast.
PB says
You all are being unfair to our glorious elected officials. Isn’t it their job to find a new way to TAX us? They are doing what all politicians do best!
Jay Tomm says
For those that keep harking about republicans….This is not a party problem. Can’t keep living in your bubble & blaming them. Wake up. It’s a greed problem & city miss management.
In the digital age PC is going backwards. The fact they are going to charge a fee to do what they have wanted everyone to do for years is insane! Yes I think I will also cancel my payments & send in a check.
Joe D says
Reply for Mr David:
I can top your $13.68 TITUSVILLE VACANT HOUSE bill.
My vacant Flagler beach house for 1 month $118. No water use (except the ice maker )/ no trash/ no plumbing draining (just replaced all the water lines, so no leaks).
Now that does include the basic monthly fees including the mosquito spraying and some disaster management program (?), and fees taxes….but only ice maker water use!
The place had no other occupancy.
PB says
I moved here from Cape Canaveral. They don’t have water. They buy it from the city of Cocoa. My last full bill was $38.
Rich says
transactional fees now? is this a job in city government to make up bullshit names to get more money i was told years ago from someone from the utility dept.that we should have approximately 80 psi of water coming into our household, well i can piss more than what i see coming out of my garden hose,. keep on building more homes , disrupt wildlife and send all the hogs tearing up beautiful lawns . politicians , builders and developers do not give a shit about us. its all about the $$$$$$$. this city is turning into a not so nice place like people thought it would be 20 years ago , i am still young to make one more move in my life
Solar sam says
If there is a future at all it will be clean renewable energy not the greed based pollution program we have now. rcons are paid well to represent anti science and anti factual stances on this ticking global disaster. Good news is we doubled warming rates in just 20 years! The line must go up!!! Spot on MIT projections from 1970! Also means we due to drop billions in population fairly quickly! No need to buckle up when you ran off the cliff!
CH says
“Tyler Technologies?” Sounds like another DOGEr getting set up in their new life on Easy Street.