HomeMy WebLinkAbout4.e. Transfer/Loan Flexble Spending Account ,
+ ' CITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCfL MEETING DATE: October 18, 1994
AGENDA ITEM: Transfer/Loan - Flexible Spending Account AGENDA SECTION:
Consent
PREPARED BY: Jeff May, Finance Director AG�NDA ��� � ��
ATTACHMENTS: Copy of Purchase Order APPROVED BY:
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 shortened plan year
10/'1/94 to 12/31/94. These funds will be used to cover potential overages in that account.
We are addressing a 3-month period only as we are currently in the process of switching our
plan year to a calendar year beginning 1/1/95.
Once again, entering the 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 afi the
time that the claims are made.
The amount being requested is the total amount that wi11 be required to cover all deposits made
by employees during the upcoming plan year. 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 forwarded to the Flexible Spending
Checking Account.
We have done this for the Iast four years and this process has worked very well in handling the
Flex Account.
RECOMMENDED ACTION:
. Approve a transfer of S 1,770.00 from the General Fund to the Flexible Spending Checking
Account on a temporary basis, to be paid back through employee withholdings as the
withholdings occur.
COUNCIL ACTION:
' PURCHASE ORDER
. Vendor #: P.O. # 2 7 6 3 4
�il� o�C�J�,osemouni .
2875 145th St. W. • PO Box 510 P.�. �ate 1 J't�-�
Phone (612) 423-4411 (�JeW ❑
FAX (612) 423-5203
Rosemount, MN 55068-0510 �
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