Administration Committee - Tax Prepayments
Page 2

The advantage t: che City is only to provide increased service to our taxpayers.

As far as costs go, we should break about even on out of pocket costs with the
cost of accessing taxpayers accounts costing 8 cents per transaction. As the
interest would fluctuate with bank prime, we should be able to maintain a spread
of 3/4 of 1 percent. The City would break even on an installmer:. payment of
$128 per month, with the spread the City makes on the investmen: covering the
banks cost of processing.

Administratively there would be some increased costs such as a higher volume of
NSF cheques however we can set some policies to try and keep this to a minimum.

Attached are a proposed ad for the upcoming newsletter and a proposed set of terms
and conditions.

JM/ms
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