City credit/debit surcharge on Tuesday agenda

FORT MADISON – The Fort Madison City Council on Tuesday will consider instituting a 2.5% surcharge on all debit and credit card transactions starting May 1.
According to a report from city Finance Director Peggy Steffensmeier, the city averages about $190,000 a month in credit card receipts and has been absorbing about 2% in credit card fees, or about $3,660 per month.
She said the city currently receives a small discount for not passing along the surcharge to customers, and that benefit would be forfeited if the new policy is enacted at Tuesday’s meeting.
Estimates are that processing fees would be between 2% and 3% and a surcharge of 2.5% would allow the city to recoup most of those fees. Customers can still use cash, checks, or autopay to avoid the additional fees on the payments.
Steffensmeier reported that about 1/3 of all city transactions are conducted with debit or credit cards each month.
The city will also be voting to adopt the proposed budget for the 2025-26 fiscal year beginning on July 1. The city is proposing a levy of $18.24 which would generate $5.8 million. The levy includes an $8.21 general fund levy, a 38-cent insurance levy, a $6.26 levy for employee benefits, and a $3.39 debt service levy.
The budget needs to be approved and submitted to the Lee County Auditor’s office this month.
In other action, the council is slated to discuss and vote on the following items:
• plans and specifications on the Denmark Hill Booster Station Improvement Project, including a construction contract for $670,302 to Blue Top Excavating LLC of Wever for work on the project.
• the final reading of an ordinance to rezone Ridgewood Addition from R-1 single family to R-4 Single Family.
• setting public hearings to follow Planning and Zoning Commission public hearings, for a voluntary annexation of property at 6224 Avenue O from R-1 single family to B-2 Business district general retail.
• three change orders on the Avenue L 20th to 30th Streets overlay project.
• the appointment of Nannette Griffin to the Southeast Iowa Regional Planning Commission’s Loan Review Committee for a two-year term ending Dec. 31, 2027.
• appointment of Lisa Gould to the city’s Planning and Zoning Commission for a three-year term ending March 31, 2028.