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MINUTES <br />CITY COUNCIL <br />MARCH 8, 2006 <br />ACCOUNT wherein pre-tax dollars can be set aside from employee's pay checks to <br />pay medical, dental, and day care expenses. The benefit program has been <br />working very well, and is currently up for renewal. The Clerk reported <br />thaC the City's personnel committee is recommending that the cap on the <br />amount of money that employees can set aside for these expenses be <br />increased from $2,500 annually to $3,000. The cap for daycare expenses <br />is at $5,000, the maximum allowed. The committee is also recommending <br />that the program be expanded to allow Council Members to participate as <br />well as switch the plan to a calendar year basis. <br />The Clerk explained the risk to both the City and employees under this <br />program. The risk to the employee is that if funds set aside are not used in <br />the benefit year, they revert to the City. The risk to the City is that an <br />employee can have expenses reimbursed before they are actually deducted <br />from the employee's paycheck. In that case, if the employee leaves the <br />City, the City has no means to collect these funds. Given the stability of <br />City staff, it is felt that this risk is minimal. It was also noted that the <br />monthly fee charged to the City by the service provider is offset by the <br />FICA savings the City realizes. <br />Mr. LaValle introduced Che following resolution and moved its adoption: <br />RESOLUTION NO.2006-3-60 -APPROVING THE CHANGES TO <br />THE FLEXIBLE SPENDING ACCOUNT BENEFIT PROGRAM AS <br />OUTLINED IN THE PERSONNEL COMMITTEE'S MEMO DATED <br />MARCH 2, 2006 <br />The foregoing resolution was duly seconded by Keis. <br />Ayes (5). <br />Nays (0). Resolution declared adopted. <br />TOBACCO The City Administrator reviewed staff's recommendation to increase <br />LICENSE tobacco license fee from $200 per year to $250. He pointed out the <br />rEE City's expense in processing tobacco licenses as well as the fact that the <br />Ramsey County Sheriff's Department conducts two compliance checks on <br />tobacco license holders each year. The cost of doing so is passed on to the <br />City via its contract with the Sheriff's Department. <br />Mr. Blesener introduced the following resolution and moved its adoption: <br />RESOLUTION NO.2006-3-67 -INCREASING THE CITY'S <br />TOBACCO LICENSE FEE TO $250 PER YEAR <br />7 <br />