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27t%'4 Cea/nac /a <br />515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(612) 484 -2177 / FAX: (612) 484 -4538 <br />January 7, 1994 <br />TO: Mayor Hanson <br />Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />MAYOR <br />Raymond G. Hanson <br />COUNCIL <br />Beverly Scalze <br />Jim LaValle <br />Steve MoreIan <br />Bob Pedersen <br />ADMINISTRATOR <br />Joel R. Hanson <br />RE: City Reimbursement Plan (Premium Only Plan) <br />Attached is a resolution enacting a reimbursement plan for <br />the City of Little Canada. This plan will allow the <br />employees to have their share of health insurance <br />contributions deducted on a pre -tax basis. This will <br />generate savings to them equal to their personal tax rate <br />and as a result lessen the impact of the contribution from <br />their disposable income. This will only apply to employee <br />health insurance contributions. This resolution format is <br />required by our health insurance agent in order that we can <br />properly establish the plan. <br />Not only does this plan benefit City employees, but it will <br />provide some minimal savings to the City in that the City's <br />FICA contribution would not be applied against this <br />amount. These savings will more than offset the minimal <br />administrative costs incurred by the City incurred in the <br />management of this plan. <br />This has been thoroughly discussed with City employees and <br />there is unanimous support for its implementation. This <br />plan would be effective on the first day of January 1994. <br />JRH /mbg <br />Page 59 <br />