2015-28890 Reso RESOLUTION NO. 2015-28890
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE
RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECTS
COMMITTEE TO APPROVE THE CONTINUATION OF THE BMG
MONEY LOANS-AT-WORK PROGRAM AS A BENEFIT OF
EMPLOYMENT WITH THE CITY OF MIAMI BEACH
WHEREAS, there City of Miami Beach has been offering a direct-to-consumer loan,
designed for employees who do not have access to traditional credit options since January
2012; and
WHEREAS, between January 1, 2012 and November 30, 2014, 188 employees have
made use of the program; and
WHEREAS, the program provides employees the opportunity to obtain funds they may
need to cover unexpected or emergency expenses, such as medical bills, or home and vehicle
repairs; and
WHEREAS, the Finance and Citywide Projects Committee members reviewed the
options available to employees without access to traditional credit opportunities at the
December 12, 2014 meeting; and
WHEREAS, a report will be provided to the Finance and Citywide Projects Committee at
its December 2016 meeting;
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby accept the recommendation of the Finance and Citywide Projects
Committee to approve the continuation of the BMG Money Loans-at-Work Program as a benefit
of employment with the City of Miami Beach.
PASSED AND ADOPTED this IV day of Ja#iWr4�- , 2015.
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COMMISSION ITEM SUMMARY
Condensed Title:
A resolution of the Mayor and City Commission of the City of Miami Beach, Florida, accepting
the recommendation of the Finance and Citywide Projects Committee to continue offering the
BMG Loans-at-Work program as a component of the employment benefits with the City of Miami
Beach.
Key Intended Outcome Supported:
Streamline the delivery of services through all departments
Item Summary/Recommendation:
The BMG Money Loans-At-Work program is a direct-to-consumer loan, designed for employees
who do not have access to traditional credit options. These loans are unsecured and based on
the following: (1) borrower's employment; (2) borrower's bi-weekly net take-home pay; and (3)
the ability to repay. The program does not verify the employee's credit worthiness but does
provide the opportunity to build good credit, as the loans are reported to the credit reporting
agencies when paid off.
Through the BMG Money Loans-At-Work program, employees with one year of service who are
at least 21 years old may: •
• Borrow up to 20% of their net take-home pay (minimum of$500 to a maximum of$5,000);
• Pay loan interest rates from 23.75% to 29.75%; loans are repaid using simple interest -
interest is computed daily based on the loan outstanding loan balance;
• Qualify for loans which are based solely on take home pay, ability to repay and are not
subject to credit worthiness;
• Pay a $25 application fee (per loan);
• Select their repayment period, at either 6, 12, 18 or 24 months; and
• Pre-pay the outstanding loan amount at any time without penalty.
Should the employee default on the loans as they had either cancelled their payroll contribution
or left the employment of the City, BMG Money would be responsible for collecting any
outstanding loan balance directly from the employee. The City would not have any
responsibility for collecting delinquent loan balances or be liable in any way.
Advisory Board Recommendation:
At the December 12, 2014, Finance and Citywide Projects Committee meeting, members
unanimously voted to continue offering this benefit to employee and recommended that staff not
call it a "pilot program" but review its performance every two to three years.
Financial Information:
Source of Amount Account
Funds: 1
2
OBPI Total
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Sylvia Crespo-Tabak, Human Resources Director
Sign-Offs:
Department Director ACM/ FO City M nager
SC-T -i' KGB JLM
T:WGENDA\2015\January\Human Resources\BMG Money Loans-at-Work Summary.docx
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M1AMIBEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISS ON MEMORAMDUM
TO: Mayor Philip Levine and Members of the City •ommission
FROM: Jimmy L. Morales, City Manager
i.
DATE: January 14, 2015
SUBJECT: RESOLUTION ACCEPTING THE OMMENDATION FROM THE FINANCE
AND CITYWIDE PROJECTS COMMITTEE TO CONTINUE THE BMG
LOANS-AT-WORK PROGRAM OFFERING TO ACTIVE CITY OF MIAMI
BEACH EMPLOYEES.
BACKGROUND
The BMG Loans-At-Work Program was implemented on trial basis for the period
January 1, 2012 through December 31, 2012. At the January 24, 2013, Finance and
Citywide Projects Committee (FCWPC) meeting, the Committee recommended
executing a month-to-month agreement with BMG Loans while the Administration
researched loan options.
At the December 12, 2014 meeting, the FCWPC recommended that the City continue
with the program as a benefit of employment and that staff review its performance and
report back to the Committee every two to three years.
BMG Money
BMG Money provides active employees voluntary loans through their program called
Loans-At-Work. The BMG Money Loans-At-Work program is a direct-to-consumer loan,
designed for employees who do not have access to traditional credit options. These
loans are unsecured and based on the following: (1) borrower's employment; (2)
borrower's bi-weekly net take-home pay; and (3) the ability to repay. The program does
not verify the employee's credit worthiness but does provide the opportunity to build
good credit, as the loans are reported to the credit reporting agencies when paid off.
Through the BMG Money Loans-At-Work program, employees with one year of service
who are at least 21 years old may:
• Borrow up to 20% of their net take-home pay (minimum of $500 to a maximum of
$5,000);
• Pay loan interest rates from 23.75% to 29.75%; loans are repaid using simple
interest - interest is computed daily based on the loan outstanding loan balance;
• Qualify for loans which are based solely on take home pay, ability to repay and are
not subject to credit worthiness;
• Pay a $25 application fee (per loan);
• Select their repayment period, at either 6, 12, 18 or 24 months; and
• Pre-pay the outstanding loan amount at any time without penalty.
BMG Money Loans-At-Work Program
January 14,2015
Page 2
•
In addition to their loan program, BMG Money also provides employees with financial
education tools through their interactive website. Through their Money Matters
education tool, employees can watch a step-by-step video on financial management,
and access a "Spending Diary" and a "Debt Worksheet" when directed to help them
create a budget. Through their "Other Resources" link, employees may access the
FDIC's Money Smart programs. In addition, BMG Money will conduct financial
management training sessions for employees, either directly or with their partner, though
The United Way of Miami's Center for Financial Stability
The BMG Loans-At-Work program is currently offered to the several public employers
including the City of Doral, City of Hialeah, City of Hialeah Gardens, Jacksonville
Transportation Authority, Palm Beach County Clerk & Comptroller, Palm Beach County
Tax Collector, Town of Surfside, City of Sweetwater, and City of Fort Lauderdale.
Should the employee default on the loans as they had either cancelled their payroll
contribution or left the employment of the City, BMG Money would be responsible for
collecting any outstanding loan balance directly from the employee. The City would not
have any responsibility for collecting delinquent loan balances or be held liable in any
way.
RECOMMENDATION
The Administration supports adoption of the FCWPC recommendation to continue the
BMG Money Loans-At-Work program as an alternative for individuals who would not
otherwise have the ability to borrow from an institution. Also based on the FCWPC's
recommendation that staff report of the program's performance at regular intervals, the
Administration further recommends that the report be placed on the Committee's
meeting agenda for December 2016.
JLM/K B/SC-T
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