1984-01-24 - Laserfiche WebLink

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I I I Council Minutes January 24, 1984 Council Business Pat Weber, Field Representative, stated that general revenue sharing was authorized, Senator Boschwitz does not favor putting a cap on the IRS and that he is committed to balanc- ing the budget and will introduce the Fair Play Budget to balance the budget within five years. Mayor Harcus briefed Ms. Weber on our water contamination/ Army/claim situation and the lack of response. She will contact Ci ty Attorney for a response. Benke indicated that it is essential that we retain the current eligibility on IRBs, and anything the Senator can do to actively work toward that would be appreciated. Benke as ked what the Sena tor I s feel i ngs were with regard to cable television. Ms. Weber indicated that filibustering is happening with the utilities bill and that will delay those accesses until 1985 and granting the subsidies to long distance users. City Manager reviewed the staff report regarding the Health Expense Account Fringe Benefit for Full Time Employees. He indicated that the IRS has no rulings on it and that cities are getting into it, noting that Hennepin County has had a similar program for two to three years. City Attorney indicated that the program seems almost too good to be true. The Internal Revenue Code on these cafe- teria plans leaves a lot of unanswered questions. Both the City Attorney and the City Accountant have some concerns about the plan. They think it might work, but won't know for sure until Treasury comes out with something definite; it may be that the full dollar reimbursement won't be per- mitted. Both agree that it needs some work and refinement. If what is proposed is an outline to Council, we can go back and make a policy out of it. The list is described and lets employees know about the taxes. As far as the City is concerned, the downside risk seems to be quite small. Mayor Harcus asked if there would be any penalty to the City. City Attorney responded that there may be a slight increase i n FI CA . Mayor Harcus indicated he was in favor of giving something to the employees at little or no cost to the City. Motion by Harcus, seconded by Blomquist to approve a RESOLU- TION AUTHORIZING HEALTH CARE EXPENSE ACCOUNT AND DEPENDENT CARE ASSISTANCE PROGRAM subject to review by the City Attor- ney and City Accountant. 4 Ayes - 0 Nayes, Motion Carried Page Two Senator Boschwitz's Field Representative Repoi't #84-13 Health Expense Account Fringe Benefit for Full Time Employees Report #84-14 Resolution #84-3