HomeMy WebLinkAbout6.f. Tranfer/Loan for Flexible Spending AccountCITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: January 21, 2003
AGENDA ITEM: Transfer /Loan — Flexible Spending Account
AGENDA SECTION:
Consent
PREPARED BY: Jeff May, Finance Director
AGENDA�j ' M
'ATTACHMENTS: Copy of Purchase Order
APPROVED BY:
r
Attached you will find a purchase order with a request for funds to be paid to the Flexible Spending
Checking Account for the City of Rosemount employees for the plan year 1/1/03 to 12/31/03. These
funds will be used to cover potential overages in that account.
Once again, entering a new plan year, we are facing the same federal law that requires the employer
to set aside a sufficient amount of dollars to cover all claimed expenses throughout the plan year,
even though the amounts may not have been withheld from an employee at the time that the claims
are made.
The amount being requested is the total amount that will be required to cover all deposits made by
employees during the upcoming plan year. Any additional amounts to cover the 2002 final year -end
adjustment necessary to balance out the account for that calendar year (to cover the many new hires
and employees who left the City) will be administered internally as our year -end process is
completed. Also, any new hires and terminations will be handled internally during the year to cover
any potential overages or underages as they occur. As we have done in the past, when the money is
withheld from the employee's payroll checks, it will be deposited into the General Checking Account
to reimburse that account for the funds that were advanced to the Flexible Spending Checking
Account.
We have done this since 1990 and the process has worked very well in handling the Flex Account.
RECOMMENDED ACTION:
Motion to approve a transfer of $50,809.20 from the General Fund to the Flexible Spending
Checking Account on a temporary basis, to be paid back through employee withholdings as the
withholdings occurs.
COUNCIL ACTION:
Fed. Tax No. 41- 6005501 Minn. Tax No. 0070716421
PURCHASE ORDER
P.O. Date: l us NO. 60312
Employee Signature Vendor #
upervisor Signature
F] New F-1 Temp
Do Not Write In This Area
Includes
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2875 145th St. W. Rosemount, MN 55068 -4997
Phone (651) 423 -4411 FAX (651) 423 -5203
TO:
Fed. Tax No. 41- 6005501 Minn. Tax No. 0070716421
PURCHASE ORDER
P.O. Date: l us NO. 60312
Employee Signature Vendor #
upervisor Signature
F] New F-1 Temp
Do Not Write In This Area
Includes
` 11(!:; Tax
Copied for
Use Tax
4- s\--N ) �' 0 d�)
lt'))- -(3
Return Check t0:
Copied for Fixed
�, Arss.ets /Insurance � �—