02 City Council Min 07-12-04 - Laserfiche WebLink

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Regular City Council Meeting July 12„ 2004 Page 4 ahead and approves this, then you add the flexible spending account and that fee would be implemented at that time. Councilwoman Fisher asked Ms. Reed, regarding the Flexible Spending Account, if the employees are allowed to only use so much insurance money in a year and if something happened to them and they use it all and did not have any left in the Flexible Spending Account. Ms. Reed advised that on a Flexible Spending Account the Council has to allocate what they think they will use for deductibles, co-pays, glasses, over the counter medication, predictable expenses, things of that nature. She said that if they do not use that amount, they will lose it and they make sure that people do not put in more than they can use in a year because they do not want them to lose it. Councilman Bell said he has seen this plan in action and he thinks it is a wonderful tool for employees and they can save tax money. They have to understand what they are doing and when they say they want $30.00 taken out of their paycheck and put into this plan, as Ms. Reed said, you use it or you lose it. He pointed out that there would be a need for educating the employees. After discussion, it was the consensus of the City Council to pursue this plan and instructed Mr. Anderson to research further and so whatever the Council decides. Mr. Anderson advised that he would like approval of the concept and he would also like directions from the Council on how they wanted staff to deal with it. Mayor Fendley said what he was hearing was to go forward with the IRS Section 125. Mr. Anderson stated that he wanted someone to do an explanation and someone who will not give hard a sell on these other items. He felt that they needed to be presented the information and if they wanted it or if they do not,