Finance director: switching to commercial paid family medical leave could lower homeowner rate increase to about 4.9%

Finance Director Dave Little told the Bangor City Council at its May 7 budget workshop that the finance committee recommended the city move to a commercial paid family medical leave plan and that the change would reduce the budget’s projected impact on the average residential homeowner.

“At the finance committee, the finance committee made a recommendation for the council to consider going to a commercial plan for paid family medical leave. And 1 of the pieces of information we put in there is over the period of time, we expect to save about $850,000,” Little said.

Little said the budget process began with personnel assumptions in January and staff keep revisiting those assumptions as hires, turnover and other changes occur. He said the combination of the assessor’s revised valuation assumptions and the estimated costs for paid family medical leave produced a materially lower homeowner impact in the proposed budget. “When we started the proposed budget process, we were looking at about a 7.8% average increase to the average residential homeowner. The change in the values assumptions that Phil shared with us, the change in, the estimated costs related to paid family medical leave has actually allowed that number to come down … It is now sitting at about 4.9%,” Little said.

Little cautioned that review of personnel and other line items is ongoing and the budget is not finalized. He urged councilors to continue identifying potential reduction targets so staff can refine reduction plans and produce updated figures.

No formal decision was taken at the workshop; Little framed the committee recommendation and the updated estimate as information for council deliberations.