INCLUDES:
1.  Seeking electronic scheduling & payroll submittal.  (Grayslake)
2.  Responses to Insurance Benefits for Disabled Officers (Freeport)
3.  Seeking Public Officials Bond (Springfield) 

Note: We have had some email issues the past two weeks.  If you have recently sent me an email and I have not responded, please send again. Thanks!

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1. ELECTRONIC SCHEDULING & PAYROLL SUBMITTAL

I would like to automatically populate the payroll data entry from a scheduling software.  Obviously there would be exceptions for OT and unscheduled leaves.  However, I believe the police dept's staff could be electronically scheduled for work hours, vacation leave, work comp leave by the Police Commander.  This initial scheduling would populate the work hours for payroll, before exceptions.  Shift Commanders would enter the approved OT from their shift.  I am currently using MSI software and intend to get their feedback.  The good news is that the Village Manager supports the project and will set aside funds to make the tedious payroll processing more efficient for the Police Dept and Finance.

If you are using a similiar approach or know of software or good programmers for this project, please email me.

Thanks
Michael Peterson
Village of Grayslake
mpeterson@villageofgrayslake.com

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2. ARE INSURANCE BENEFITS FOR DISABLED OFFICERS FREE?

We have a disabled police officer who is receiving a duty related disability pension check. He also qualifies for the health coverage "free" from the city based on the Public Safety Employee Benefits Act.

Because his disability is duty related, it is tax-free. The City is taking the stance that the insurance benefits have a value to him and he should be given a W-2 for the value of the health care premiums he isn't paying. They want to issue a W-2 for taxable income for $14,962.68.

My thoughts are that if the pension is tax-free, why wouldn't the insurance benefits be tax-free? Has anyone encountered this situation? Does anyone know if there is an IRS ruling on this?

Any information would be greatly appreciated!

Linda Buss
Freeport
lbuss@cityoffreeport.org

Linda, I contacted our IRS agent that has attended a few IMTA functions and her response is below.

Good Luck
Michael

Mike,
First and foremost, I cannot provide written advice on a specific set of facts and circumstances. I can provide "oral" guidance but not written advice. However, I will state this generically:

Section 106 of the Internal Revenue Code provides that the gross income of an employee does not include contributions which the employee's employer makes to an accident or health plan for compensation (through insurance or otherwise) for personal injuries or sickness to the employee or the employee's spouse or dependents.

I am not familiar with the Public Safety Employee Benefits Act. Therefore, the deciding factor would be what the Act actually stipulates that an employer must do. If the employer is required to provide the total health insurance "free" (by State law or statute), it appears that 100% of the amount is an EMPLOYER contribution (by obligation) under section 106 and thus not taxable to the employee. It is up to the entity to review the substance of the Act and come to an understanding of what its contractual and legal obligations are to the employee.

Again, this is merely an opinion based on a reading of Internal Revenue Code section 106 and the situation as represented to me. It cannot be cited as an official IRS ruling or policy. If the entity wants something in writing, it will need to secure a private letter ruling (for a fee) from our offices in Washington, D.C.

Joyce Reinsma
FSLG Field Specialist
 

TUSCOLA response:
Hi Linda,
We just had the same issue with a police officer this year. All of our legal representation (many lawyers involved as lawsuits have been filed) have agreed that ALL wages and benefits must continue exactly as if he were working for one year after the accident and that NONE of the wages and benefits are subject to federal or state taxes. After 6 months, the wages are also not subject to FICA.

So, I would agree with you that you cannot send him a w-2 showing taxable income (or fringe benefit) for the time he was injured.

Alta L. Long
City Treasurer
City of Tuscola 

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PUBLIC OFFICIALS BOND- Springfield

Mike,
Please add the following inquiry to the IMTA Help.

The Public Officials Bond coverage (Illinois Compiled Statutes 65 ILCS 5/3.1-10-30) prescribes "The treasurer's bond shall be an amount of money that is not less than 3 times the latest Federal census population or any subsequent census figure used for Motor Fuel Tax purposes."  I am interested in knowing:

1.  Municipality Name-
2.  Your minimum Bond coverage as outlined in 65 ILCS 5/3.1-10-30?   $
3.  Actual Bond coverage your municipality carries on the Treasurer.  $
4. Does your municipality carry crime or bond insurance to protect against theft? If so, what is the coverage amount?

Thank you,
Jim Langfelder
JLangfelder@cwlp.com

NOTE:
Below I copied the responses that I received from Timberlane's request, made Oct 7th.

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PUBLIC OFFICIALS BOND- Timberlane

I'm the Treasurer of the Village of Timberlane and my Public Official's Bond is up for renewal. I did a little research and can't find any clear

guidelines for the amount I should be bonded for. Are there any laws or best practices, formulas, calculations, etc. related to the amount a

Treasurer should be bonded for?

Thanks,
Sylvia Gorman , Treasurer
Village of Timberlane

Thanks to everyone who responded. I looked in the statutes originally, but didn't find that section. This is a great resource!

Sylvia

RESPONSE

In regards to the public officials bond question from Sylvia Gorman, in the 2000 Illinois Compiled Statutes 65 ILCS 5/3.1-10-30, it states that, "The treasurer's bond shall be an amount of money that is not less than 3 times the latest Federal census population or any subsequent census figure used for Motor Fuel Tax purposes."

Thank you,
Denise Jobe, Treasurer
City of Robinson
treasurer@cityofrobinson.com

(65 ILCS 5/5-3-9) (from Ch. 24, par. 5-3-9)
Sec. 5-3-9. Officers; oath or affirmation; bond

(b) Before entering upon the duties of their respective offices, all officers, except those specified in Section 5-3-8, shall execute a bond with security to be approved by the corporate authorities. The bond shall be payable to the city or village in the penal sum directed by resolution or ordinance, conditioned upon the faithful performance of the duties of the office and the payment of all money received by the officer, according to law and the ordinances of that city or village. The bond may provide that the obligation of the sureties shall not extend to any loss sustained by the insolvency, failure, or closing of any bank or savings and loan association organized and operating under the laws of either the State of Illinois or the United States in which the officer has placed funds in the officer's custody if the bank or savings and loan association has been approved by the corporate authorities as a depository for these funds. The treasurer's bond shall be in an amount of dollars that is not less than the greater of $50,000 or 3 times the latest Federal census population or any subsequent census figure used for Motor Fuel Tax purposes. These bonds shall be filed with the city or village clerk, except that the bond of the clerk shall be filed with the city or village treasurer.

Reginald Willis
RWillis@ci.peoria.il.us

Mike, In response to the question on the treasurer's bond:

 (65 ILCS 5/3.1-10-30) (from Ch. 24, par. 3.1-10-30)

    Sec. 3.1-10-30. Bond. Before entering upon the duties of their respective offices, all municipal officers, except aldermen and trustees, shall execute a bond with security, to be approved by the corporate authorities. The bond shall be payable to the municipality in the penal sum directed by resolution or ordinance, conditioned upon the faithful performance of the duties of the office and the payment of all money received by the officer, according to law and the ordinances of that municipality. The bond may provide that the obligation of the sureties shall not extend to any loss sustained by the insolvency, failure, or closing of any bank or savings and loan association organized and operating either under the laws of the State of Illinois or the United States in which the officer has placed funds in the officer's custody, if the bank or savings and loan association has been approved by the corporate authorities as a depository for those funds. In no case, however, shall the mayor's bond be fixed at less than $3,000. The treasurer's bond shall be an amount of money that is not less than 3 times the latest Federal census population or any subsequent census figure used for Motor Fuel Tax purposes. Bonds shall be filed with the municipal clerk, except the bond of the clerk, which shall be filed with the municipal treasurer.

(Source: P.A. 87-1119.) 

Linda Buss
City of Freeport

****I believe the only stipulation is that it be not less than 3 X the population used in your Motor Fuel calculations.   That amount for us is ridiculously low.  When you have some types grant funds, there is a stated amount for the treasurer's bond which is usually sufficient to cover the amount of the grant.

Alta Long [along@tuscola.org]