HomeMy WebLinkAbout5.p. Transfer / Loan - Flexible Spending AccountF....._.. .i
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: November 5, 1991
AGENDA ITEM:
AGENDA SECTION:
Transfer/Loan - Flexible Spending Account
Consent
PREPARED BY:
AGENDITC.M
'1Y►11 # 5 P
Jeff May, Finance Director
ATTACHMENTS: Copy of 1/15/91 Green Sheet,APP
D_ Y
Memo to Wm Michaels Ltd, Copy of P.O.
e211
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Attached you will find documentation that closes out the 10/1/90
through 9/30/91 Flex Plan year. If you recall, back in January of
this year, we transferred the balance of the plan year's deposits
to the Flexible Spending Account to cover potential overages in
that account. Due to employee turnover, we did not need all of
that money in that account, so the unused portion will now be
returned to the General Fund.
Entering the 10/1/91 through 9/30/92 Flex Plan year, we are facing
the same federal law that caused us to make the transfer earlier
this year. This law requires that the employer 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.
Because of the timing of this request, we are requesting that an
amount equal to 24 of the 26 pay periods for the new plan year be
"borrowed" to the Flexible Spending Account to cover any possible
overages that could occur throughout the plan year. The dollar
amount of this "loan" would be $6,601.92.
RECOMMENDED ACTION:
Adopt a motion to transfer $6,601.92 from the General Fund to the
Flexible Spending Account on a temporary basis, to be paid back
through employee withholdings as the withholdings occur.
COUNCIL ACTION:
CITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: JANUARY 15, 1991
AGENDA ITEM:
AGENDA SECTION:
TRANSFER -FLEXIBLE SPENDING ACCOUNT
NEW BUSINESS
PREPARED BY:
AGENDA
STEPHAN JILK, CITY ADMINISTRATOR
ITE # 6B
ATTACHMENTS: _
APP VED BY•
MEMO FROM JEFF MAY, FINANCE DEPT.
t�r�
We are into our second year for our flexible spending account program for
our employees. This program allows pre-tax withholding of monies from
employee wages for medical and child care expenses.
This program saves employees, who take part, many state and federal tax
dollars by allowing them to have to claim not just a portion of these
expenses on tax returns but all of them by getting the money before it is
taxed.
This year,the new federal law requires that the employer set aside a
sufficient amount of dollars to cover all claimed expenses through the plan
year. The attached memo from Jeff May explains the results of that ruling.
I recommend we transfer the amount necessary to cover potential claims as
indicated in Jeff's memo.
RECOMMENDED ACTION:
Adopt a motion to transfer $9582.90 from General Fund to the Flexible
Spending Account on a temporary basis to be paid back through employee
withholdings.
COUNCIL ACTION:
Approved.
PHONE (612) 423-4411
FAX (612)423-5203
DATE:
TO:
FROM:
0.
Of Rosemount
2875 - 145th Street West, Rosemount, Minnesota MAYOR
Mailing Address: Vernon Napper
P. O. Box 510, Rosemount, Minnesota 55068-0510 COUNCILMEMBERS
Sheila Klassen
John Oxborough
Harry Willcox
Wippermann
October 28, 1991
DennisADMINISTRATOR ADMINISTRATOR
Stephan Jilk
Tammi Hawbaker
Jeff May
SUBJECT: Closing out 10-1-90 thru 9-30-91 Plan Year
As per our telephone conversation of today, I am writing you to
request a check being drawn to the City of Rosemount, from the
Flex Account, to close out the 1991 plan year. There was a
deposit put into the Flex Account earlier this year that covered
the whole year's worth of deposits. Due to employee turnover, we
did not need that whole amount and would like to reimburse our
General Account at this time. The amount of the check I am
requesting will be $1,436.07. The following will show how I came
up with that number:
Balance after all 1991 plan year check requests $1,986.23
Deposit made 10/17 for 1992 plan year(to be left) { 275.08)
Deposit made 10/29 for 1992 plan year(to be left) ( 275.08)
Balance to be drawn out of Flex Account $1,436.07
By doing this, we will leave a balance of $550.16 in the Flex
Account that will cover 1992 plan year transactions to this point
in time. Sometime in the future, we will be making a large
deposit to cover the 1992 plan year deposits as we did for the
1991 plan year.
If you have any questions, please free to contact me.
Thank you,
C�)
J fre M y, Finance irector
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PURCHASE ORDER
Minn. Tax Exempt Status No. 9757275
Fed. Tax No. 41-6005501 (PdY o{ J�psenzouil1
2875 145th Street West • 'PO Box 510
Phone (612) 423-4411
Rosemount, MN 55068-4997
16021
Dept.
Distr.
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