HomeMy WebLinkAboutResolution 6916RESOLUTION 6916
• CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
ADOPTING ATTORNEY'S RECOMMENDATION IN REGARD TO TAXABILITY OF
EMPLOYEE SEVERANCE BENEFITS
WHEREAS, The City Council approved Resolution No. 5313, which granted Mr.
Ramacher severance benefits equal to 100% of his accumulated vacation time in a
lump sum payment and 1,393 hours of accumulated and banked sick leave to be used
for his health irTSUrance premium payments for as long as the funds were available, and
WHEREAS, Mr. Ramacher contends that the City did not offer him the option to receive
any of his accrued sick leave in the form of a lump sum cash payment at the time of his
retirement, and
WHEREAS, various options were discussed by the Council, but an investigation by the City
Attorney has indicated that there is nothing in the record to suggest that Mr. Ramacher had
an option to receive an immediate cash payment, and
WHEREAS, the City Attorney, in a memo date July 20, 2006, has recommended that the
• City Council approve Mr. Ramacher's request and direct City staff to refrain from reporting
future payments of Mr. Ramacher's health insurance premiums to the IRS as part of his
gross income, and
WHEREAS, in addition, the City Attorney has recommended that prior submissions to the
IRS should be amended to accurately reflect Mr. Ramacher's income paid by the City, and
WHEREAS, the City Attorney has also recommended that Mr. Ramacher be advised of the
Council's decision and be reminded that such Council action does not constitute a legal
determination as to the taxability of such payments and that he could ultimately be liable
for taxes on such payments if the IRS were to determine otherwise.
NOW, THEREFORE, BE IT RESOLVED by the Mounds View City Council of the City
of, Ramsey County, Minnesota as follows:
City staff is hereby directed to:
Refrain from reporting future payments of Mr.
Ramacher's health insurance premiums to the IRS as
part of his gross income;
2. Amend W-2 forms previously filed with the IRS, as able,
• to eliminate the health insurance payments made bythe
City on Mr. Ramacher's behalf; and
3. Advise Mr. Ramacher of the Council's decision and
remind him that such Council action does not constitute
a legal determination as to the. taxability of such
•
payments and
taxes on such
otherwise.
that he could ultimately be liable far
payments if the IRS were to determine
Adopted this 14th day of August 2006.
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Rob arty, Mayor
ATTEST:
(seal)
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-<r~~ ~ ~
Kurt Ulrich, City Administrator
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