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<br />Council Member Broussard Vickers asked what happens to the employees that are still <br />working for the City and what has happened since October of 2001. Ms. Moore-Sykes <br />indicated that as of January 1,2002, the City is taking out Medicare and FICA. <br /> <br />Council Member Capra raised another concern that there may be employees who <br />received a cash benefit instead of putting it toward deferred compensation. She then <br />indicated that the City would need to research to see if any checks were issued to <br />individuals rather than the insurance company. <br /> <br />Ms. Moore-Sykes indicated that would not be part of deferred compensation so the <br />auditor did not review it. <br /> <br />Motion bv Council Member CaprL seconded bv Council Member Nelson to <br />authorize Mr. Hoeft to contact the Attornev General's Office to request an opinion <br />on the deferred compensation issue. All in favor. Motion carried unanimously. <br /> <br />Mayor Swedberg asked if the back taxes should be paid now or after receipt of the <br />Attorney General's opinion. City Attorney Hoeft suggested paying the back taxes now <br />that the City is aware of the amounts owed and decide whether to try to collect from the <br />employees at a later date. <br /> <br />Council Member Capra indicated the City needed to amend W2's and suggested <br />authorizing Abdo, Abdo, Eick & Meyer to do so because it would be easier for them than <br />it would be for the City. <br /> <br />Council Member Capra indicated that the individual who had exceeded the maximum <br />contribution amount by $112.50 had brought it to her attention that the overage resulted <br />from a timing issue where PEBSCO received the funds earlier than they should have. <br /> <br />Motion by Council Member Nelson. seconded bv Council Member Broussard <br />Vickers to authorize Abdo. Abdo. Eick & Mever to prepare corrected W2 forms for <br />each year from 1996 throul!:h 2001. to create the recommended form 1099& and to <br />pav the back taxes of $5.954.32. <br /> <br />Council Member Capra asked if Abdo, Abdo, Eick & Meyer would be contacting the IRS <br />to find out if the penalty and interest could be waived. <br /> <br />Vote: All in favor. Motion carried unanimously. <br /> <br />Council Member Nelson asked whom to contact to have the penalties removed. City <br />Attorney Hoeft indicated there is a former IRS agent in his office who is an attorney and <br />does that type of work. <br /> <br />Motion bv Mavor Swedberl!:. seconded bv Councll Member Nelson to have the IRS <br />al!:ent from City Attornev Hoeft's office contact the IRS on behalf of the City. All in <br />favor. Motion carried unanimously. <br /> <br />Page 12 of28 <br />