HomeMy WebLinkAbout2007-06-11 07-222 ORDERItem No,
Dale: June 11, 2007 07 2222
Item/Subject: Order, Tronsfening $295,000 of Unanticipated Building Permit Fees to the
General Fund's Benefit Reserve
Responsible Deparbnenb Finance
As you are aware, the City will be seeing an unprecedented Increase in the cost of employee health
insurance (49.09%) as a result of extremely high benefit utilization over the past year. Beginning
with fiscal year 2000, the City had intended to limit the growth in the Cftys contribution for health
insurance to a percentage equal to two times the LD 1 limit. However, given this approach our
employees would have seen an increase In their premiums of more than 100%. Therefore, the
proposed budget, which recommends a change in the cost sharing formula, attempts to limit the
financial impact to tooth our employees and the City,
In order to offset a portion of the impact of this rate increase, Me proposed fiscal year 2008 budget
recommends that $295,000 be appropriated from a benefit reserve to be established this year.
The attached Order would provide initial Funding for the benefit reserve by appropriating $295,000
in unanticipated building perm t revenues received in fiscal year 2007. This will not haves negative
Impact on Code Enforcement's revenue budget for this year, as it has already met its revenue
projections from other projects.
DepartneM Head
Recommend approval.
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Associated Information:
Budget Approval:
F�cce Director
Legal Approval:
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Introduced for
Passage
_X. First Reading Page _ of _
Referral
07 222
F AatigodbCO�ucit�r stone Tme il'. 2007 ..
CITY OF BANGOR
(TITLE.) Order, Transferring $295,000 of Unanticipated Building Permit Fees to the General
Needs Benefit Reserve
BE IT ORDERED BY THE CITY COUNCIL OF THE CIT' OF BANGOR THAT
$295,000 of unanticipated building permit fees received in fiscal year 2007 are hereby
transferretl to the General Fund's Benefit Reserve Account.
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