Title
A Resolution Approving a Cash-Payment Rounding Policy for Village Water and Other Municipal Bills
History
The federal government has ended production of new pennies, and banks are increasingly unable to distribute them as existing inventories decline. Staff recommends a symmetrical rounding policy for the final amount paid in cash when exact change is unavailable. Village bills will continue to be calculated to the exact cent, and all check, card, ACH, online, and other non-cash payments will remain payable for the exact amount due.
The proposed Resolution would establish a consistent, transparent, and neutral method for completing cash transactions when exact change in one-cent increments is unavailable.
The proposed policy will reduce recurring cash overages and shortages, provide clear direction to employees and customers, and preserve exact-cent billing for all non-cash payments. The underlying bill will remain calculated to the exact cent, and checks, cards, ACH, online payments, and other non-cash payments will not be rounded.
This policy is expected to be implemented December 1, 2026, following Board approval of this policy.
Financial Impact
The fiscal impact is expected to be immaterial. Because the symmetrical method rounds some cash transactions down and others up, the adjustments should generally offset over time. Minor one- or two-cent differences will be recorded as separate cash-rounding adjustments. Existing staff and payment systems will administer the policy, subject to any minor configuration costs, and staff will monitor results for any material or systematic financial effect.
Recommended Action/Motion
I move to recommend to the Village Board adopting the Resolution as presented.
(Full motion - not necessary to be read)
I move to recommend to the Village Board adopting a Resolution entitled: “A RESOLUTION APPROVING A CASH-PAYMENT ROUNDING POLICY FOR VILLAGE WATER AND OTHER MUNICIPAL BILLS.”