5.11 SR 01-03-2023Request for Action
To Item Number
Ma ror and Cinr Council 5.11
Agenda Section Meeting Date Prepared by
Consent January 3, 2023 Lauren Wipper, Human Resources Manager
Item Description Reviewed by
Amend and Restate the City's Fle�ble Benefits Cal Portner, Citv Administrator
Plan Reviewed by
Action Requested
Adopt, b�r motion, a Yesolution amending and Yestating the cityr's Fle�ble Benefits Plan effective Januaryr 1, 2023.
Background/Discussion
In DecembeY of 2013, ouY Health Fle�ble Spending Account (HFSA), which is one component of ouY Fle�ble
Benefits Plan, was amended to remove the Grace Period and add a Limited Carryover. The carryTover amount was
stated to be $500.00.
The IRS has been increasing this amount each year and the 2023 allo�ved carryTover is $610.00. We would like to
amend our plan to provide for the ma�mum carryTover amount allo`ved byT the IRS each yTear.
Financial Impact
These are funds that are set aside b�T emplo�Tees to pa�T for allowed medical expenses. There is no additional cost to
the cityT to increase the carryTover amount.
Mission/Policy/Goal
The Elk RiveY l��ission
Attachments
■ Resolution amending and Yestating the city's Fle�ble Benefits Plan effective Januaryr 1, 2023.
■ Amendment to the Cit�T of Elk River Fle�ble Benefits Plan
The Elk River Vision
A 2a�elcolning co�nlnunity 2a�ith T evolutiona� y and spizzted T esou� cefulness, exceptional
se�vice, and coln�nunity engagelnent that encou�ages and ins�iz•es pTo�pe�zty.
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Up�iited.• August 2020
City of
Elk -�-�
River
City of Elk River
City Council
Resolution 23-
A Resolution of the City Council of the City of Elk River to Amend and
Restate the City's Flexible Benefits Plan
WHEREAS, the City of Elk River previouslyT adopted the Cit�T of Elk River Fle�ble
Benefits Plan ("Plan") on June 6, 1988, to permit eligible employTees to elect to receive a
portion of their compensation as regular taxable income or as nontaxable payTment of the
employTee's premiums for employer-sponsored insurance and for reimbursement of the
employTee's health care expenses and dependent care expenses; and
WHEREAS, the plan has continued in force at all times since its effective date; and
WHEREAS, the most recent revision and restatement of the plan was Januar�T 1, 2020;
and
WHEREAS, The Cityr of Elk RiveY desires to amend and restate the plan to incorpoYate
the adjustment of the maximum carryTover for the Health Flexible Spending Account to the
maximum allowed by the IRS beginning JanuaryT 1, 2023.
NOW, THEREFORE, BE IT RESOLVED byT the CityT Council of the CityT of Elk
River, iVlinnesota, as follows: The CityT of Elk River Flexible Benefits Plan be amended and
Yestated effective Januaryr 1, 2023.
Passed and adopted this 3Yd da�r of Januar�r 2023.
John J. Dietz, Mayor
ATTEST:
Tina Allard, CityT Clerk
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AMENDMENT TO
CITY OF ELK RIVER FLEXIBLE BENEFITS PLAN
BY THIS AMENDMENT, the CityT of Elk River Flexible Benefits Plan (herein referred to as the
"Plan") is herebyT amended as follo`vs:
1. AUTHORITY AND SCOPE. This Amendment is being made pursuant to the Plan sponsor's
general authority to amend and modify the Plan.
2. WORDS AND PHRASES. The words and phrases used in this Amendment are intended to have
the same meaning as the same defined teYms used in the Plan.
3. CARRYOVER AMOUNT UNDER MEDICAL EXPENSE REIMBURSEMENT PLAN.
The Plan is hereb�T amended, effective Januar�T 1, 2023, to allow the maximum carr�Tover provided
annuallyT byT the IRS. This `vill begin `vith 2022 balances carryTing into 2023.
4. SUPERSEDING EFFECT. The provisions contained herein shall applyT not�vithstanding anyT
language in the Plan to the contraryT.
IN WITNESS WHEREOF, this Amendment has been executed this 3rd day of Januaryr 2023.
City of Elk River
li
Its Ma�Tor
li
Its Cit�T Clerk