03-08-2006 Council Agenda - Laserfiche WebLink

Home Browse Search

(4+ 1 4i ceergiaik 515 Little Canada Road, Little Canada, MN 55117 -1600 (651) 766 -4029 / FAX: (651) 766 -4048 www.ctlittle-canada.mn.us MEMORANDUM TO: Members of the City Council FROM: Personnel Committee Mayor Blesener Council Member Keis Shelly Rueckert, Finance Director Kathy Glanzer, City Clerk DATE: March 2, 2006 RE: Flexible Spending Account MAYOR Bill Blesener COUNCIL Jini LaValle Rick Montour Barbara Allan John Reis ADMINISTRATOR Joel R. Hanson As you will recall, last fall the City implemented a Flexible Spending Account Plan for City employees wherein employees can set aside dollars on a pre -tax basis for reimbursement of medical, dental, and other related expenses. The Plan has an April lst renewal date. The Plan has been working very well from both the City's and employees' standpoints. In considering the upcoming renewal, the Personnel Committee discussed the following modifications to the Plan: Expansion of the Plan to allow the Mayor and Council Members to participate, if they so choose. • Change in Plan year to a calendar year basis. The reason for this change would be to mirror the December 3ls` date that would signify the end of an elected official's term. • Increase the annual amount that an employee can put into this account from $2,500 to $3,000. The maximum allowed by law is $5,000 per year. The reason that we are proceeding cautiously in this area is due to the City's risk an employee leave the City before their entire annual designation can be collected through payroll deduction. Given the longevity of the City's staff, it is felt that this risk is minimal. The Committee recommends approval of the above changes for the April 1s` renewal of the Flexible Spending Account.