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
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