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HomeMy WebLinkAbout2011-10-24 11-312 ORDERItem No. 11 312 Date: October 24 2011 Item/Subject: Order, Amending the City of Bangor Fund Balance Policy Responsible Department: France Commentary: This orderwill amend the Fund Balance Policy W pnchude a mechanism In which forfeited employer contributions W retirement accounts may be accessed bythe Finance Directorand the Pty Manager W pay currentyear retirement contributions. For employees hired after March 31, 2001, the City of Bangor offers a 401(a)defined conh'ibution plan as a redremem plan. Employessarevestedinthe plan after the completion of one year of service. Separation from employment prior W vesting results In the forf6Wm of the 6tys (employer's) mntribution. All forfefted employercontribudons are held by the plan sponsor and may only be used to pay rurrentemployercontdbutions. Wither, should the use of these funds result in current year budgetary savings, the amendment will allow the France DVector in consultation with the City Manager to place those savings in the City's Benefit Reserve. This amendment was reviewed and unanimously recommended fir passage by the Finance Committee on October 17111. Department Head Manager's Comments: UEEm.Cma City Manager As io dated Information: Order Finance Director X Passage First Reading Page _ of _ Referral 11-312 October 26. 2011 AwiOned to councibr _ mum hette CITY OF BANGOR (TITLE.) Order, Amending the City of Bangor Fund Balance Policy ny the Ory counn/ofthe city OfEangon ORDERED, THAT Section 5.1 General Fund Assigned Fund Balances is hereby amended as follows: The Benefit Reserve provides financial Flexibility to the City for the potentially unpredictable costs associated with employee benefits. On an annual basis, the Finance Director, in consultation with the City Manager, may place any savings realized if benefits are budgeted at a higher amount than actually required into this fund balance, as II as the f forfeited 401 () contributions used to day Current year ntributions provided he current year contributions were included in the adopted budget S CITY COOP L October 24. zou sd n n�v (yltte.l dmo a the City a IlBau Fund MO Policy nniwwa mcwnabr �A NCX�JU-n J