Thank You Councilman Pitts

[hotcookie1965]

Originally Posted by Luke

For full cost accounting purposes it is not just a 44 cent stamp. You need to include the cost of the envelope (2 cents) and the cost of the check (8 cents) which was issued to pay the utility bill. You now have 54 cents. Then multiple by two households and you have $1.08 each month. Over a ten year period that would be almost $130 dollars spent. Then once the bill is mailed it's got to be processed by the utility clerk in city hall. For which the customer has had to pay for because it is incorporated into the electric rate. Along with it you have to pay for the space the clerk occupies in city hall because that's incorporated into the electric rate. The best I can determine from the city budget, the city charges the customer approximately $5 dollars for each bill payment it processes each month. So, take that times 2 for the 2 households and you got $10 per month, which over 10 years equates to $1,200. The $1,200 + $130 equates to $1,330 extra that is being spent over 10 years by this customer who is paying for two households all because the city refuses to have online bill paying service. What a waste of money. And we wonder why we have a 40% increase in the electric bill? Plain and simple....it's pure mismanagement of finances at city hall.

luke, regardless of how you pay the bill, the person who records the bill is still needed, so im not sure how you can feasible say that is an "extra fee" that could be elimanted by having the online payment option.

[AFRetired]

Originally Posted by hotcookie1965

luke, regardless of how you pay the bill, the person who records the bill is still needed, so im not sure how you can feasible say that is an "extra fee" that could be elimanted by having the online payment option.

When money is tranfered by a computer system a routing number is used. The number deposits the money in the account which indicates a credit. No person is involved in the process at all. Running a software program will detail who has or has not paid up by a certain date. Paying by mail or in person requires someone to post the transaction in the computer. Each month millions of people get retirement checks directly deposited in their checking accounts. Its safer because people are not involved in the process. My credit union will not even send out a statement in the mail without charging extra. Statements are sent through email accounts to save on people and postage/envelopes/etc. Some banks charge a fee if you use a live teller trying to get every transaction done on line.

[hotcookie1965]

Originally Posted by AFRetired

When money is tranfered by a computer system a routing number is used. The number deposits the money in the account which indicates a credit. No person is involved in the process at all. Running a software program will detail who has or has not paid up by a certain date. Paying by mail or in person requires someone to post the transaction in the computer. Each month millions of people get retirement checks directly deposited in their checking accounts. Its safer because people are not involved in the process. My credit union will not even send out a statement in the mail without charging extra. Statements are sent through email accounts to save on people and postage/envelopes/etc. Some banks charge a fee if you use a live teller trying to get every transaction done on line.

who do you think sets up the accounts to accept payments and keep track that each person is getting the right credit, oh yeah all that is done by computer,LOL...it still takes a live person to verify the payments are received etc...

[Luke]

Originally Posted by hotcookie1965

who do you think sets up the accounts to accept payments and keep track that each person is getting the right credit, oh yeah all that is done by computer,LOL...it still takes a live person to verify the payments are received etc...

The "who" of who will setup the accounts to accept payments is the customer through the online e-portal that the city should have for the customers. Self-service is one of the big advantages to e-commerce. I'm just guessing but by the statements you have made it seems maybe you have none or very limited experience with e-commerce. You make many assumptions based on your knowledge of how the current paper system works now instead of based on a potential e-commerce system. I hope the mayor and city council don't make the same assumptions as you. E-commerce is a very powerful tool which is used by thousands of cities and businesses throughout the USA. There are literally billion of transactions that take place on e-commerce systems daily.

The banks are all electronic these days. Did you know when you pay by check that the paper checks are no longer presented back to your bank for payment. Once the city deposits your check into their account at their bank there is an electronic request to deduct your money from your bank account. That is not how it worked just 6 years ago. The "Check Clearing Act of the 21st Century" went into effect on 28 OCT 2004 which implemented this paperless check clearing process. Read more at http://www.consumersunion.org/finance/ckclear1002.htm. Many customers use e-commerce systems to pay all their bills except the city utility bill because the city does not offer this service.

I would encourage the mayor and city council to fully study the implementation of e-commerce in Lebanon. The savings would significant. In our example posted for a person taking care of 2 households the savings is over $1,300 dollars in ten year period. The current system (civicplus.com) we use for the city website is fully capable of supporting e-commerce. Many other cities who use civicplus.com have already implemented e-commerce. Lebanon needs to transition into the 21st century and start using e-commerce.