Memo 028-2012 BMG Money Loans-At-Work Program MIAMI BEACH�_
OFFICE OF THE CITY MANAGER MEMORAMD.0
028 -2012
TO: Mayor Matti Herrera Bower and Members of the City Commission 'J r
FROM: Kathie G. Brooks, Interim City Manager
DATE: September 20, 2012
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SUBJECT: BMG Money Loans -At -Work Program, Update on Usage
This Memorandum is to provide the Mayor and Commission an update on the BMG Money
Loans -At -Work Program (BMG) that was made available to all active City employees, on a
one year trial basis, effective January 1, 2012.
As a reminder, an item requesting approval of an offering of the BMG Money Loans-At-
Work Program to City employees as a loan option for emergency funds and to help them
learn to make educated financial decisions was presented at the December 14, 2011 City
Commission Meeting. Upon approval, the City Commission asked the Administration to
provide them with periodic updates.
As you may recall, the BMG program provides employees with little or no credit the ability to
receive small, unsecured loans for emergencies such as medical bills, home and vehicle
repairs. These loans are based on the employee's take home pay and ability to repay the
loan. If the employee meets the loan qualifications, funds are distributed directly to the
employee and bi- weekly installment payments to repay the loan are arranged with the
employer to be deducted directly from the employee's payroll check. The program also
provides participants resources to help with debt management, instruction on responsible
borrowing and access to tools to help participants make educated financial decisions.
After an explanation of the program by representatives from . BMG, the City Commission
discussed and agreed that the program's interest rates were extremely high. However,
realizing the need for this type of loan program which eliminates the employee accessing
funds through payday loan programs with significantly higher interest, they understood the
possible need of an employee's access to emergency loan funds and agreed to provide the
BMG Money Loans -At Work- Program to City employees on a one year trial basis with
quarterly participation reports to be provided to the City Commission.
Since January 1, 2012 through August 31, 2012, a total of ninety -one (91) City employees
have utilized the emergency loan services provided by the BMG.
BMG has issued a total of one hundred thirty -three (133) loans totaling $358,787. Of this
total loan number, ninety -one (91) were new loans and forty -two (42) are loans that
employees have refinanced, requesting an increase in the amount of their initial loan
request.
Should you have any questions, or need additional information, please feel free to contact
me.
KGB /RJI /SR
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