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92-126 .. . . . RESOLUTION NO. 126 -92 A RESOLUTION AMENDING THE HEALTH CARE REIMBURSEMENT PROGRAM PORTION OF THE SHOREWOOD CAFETERIA PROGRAM WHEREAS, the Shorewood City Council established the Shorewood Cafeteria Program effective January 1, 1990; and, WHEREAS, the Health Care Reimbursement Program portion of that program set a maximum participation ceiling of $1,000 per employee per program year; and, WHEREAS, the City Council has reviewed the program and determined it in the best interests of the City and its employees to amend the maximum participation ceiling. THEREFORE, BE IT RESOLVED by the City Council of Shorewood to amend the Health Care Reimbursement Program portion of the Shorewood Cafeteria Program to allow a maximum participation of $1,500 per employee per program year. ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 14th day of December, 1992. ATTEST: ". . . MAYOR Barb Brancel COUNCI L Kristi Stover Bob Gagne Rob Daugherty Daniel Lewis , CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD . SHOREWOOD, MINNESOTA 55331 . (612) 474-3236 MEMO TO: MAYOR AND COUNCILMEMBERS AL ROLEK {If!-- FROM: DATE: DECEMBER 7, 1992 INCREASE IN MAXIMUM SECTION 125 HEALTH CARE REIMBURSEMENT CONTRIBUTION RE: The ciuy Council established the Shorewood Caf~teria Progra~ in 1990. This program allows employees who participate to witphold part of,thefr salary to pay for insurance prendums, health care costs and dependent care costs with pre-tax dollars. The program is of benefit to both the employee and the city in that no taxes, including FICA, are withheld from the dollars contributed to the pre-tax p~an. At the time/the program was established, the Council set a maximum withholding of $1,000 per employee per program year for the Health Care Reimbursement Program.: There has beep interest by employees to increase the maximum to $1,500 per employee per program year. Because the program has worked very weLl in the past ~hree years, and because the City saves FICA contributions on these contributions, this would be a win/win proposal for the City and its employees. It is, thel$efore, recommended that the . City Council amend the Shorewooa,. Cafeteria Program to allqw paI'ticipation in, the Health Care Reimbursement Program toa maximum of $1, 500 p~r employee per program year. A resolution which would amend the program is incluqed in your council agenda/packet. Should you have any question relative to this matter, please give me a call. A Residential Community on Lake Mitmetonka's South Shore