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Information regarding the potential transition to a fire district <br />9/14/2023 <br />Notes <br />Question : :What is a realistic timeline to implement afire district? <br />................................ ...................................................................................................................................................................................................................... .................................................................................................... <br />Answer It would likely take one-year to complete !Opinion of Chief Boehlke <br />,uestion2 : :Will the fire department need to disband or dissolve? <br />........................ ...................................................................................................................................................................................................................... ....................................................................................... <br />Answer ::The financial and operational functions can be kept separate or they can both be handled by ::Opinion from attorney Erich Hartmann <br />:the Fire District. In other words, two structures could be used: (1) the Fire District could be <br />used merely to levy taxes, manage the budget, and handle the financial aspects only while the <br />:fire protection operations are accomplished by the Fire Department; or (2) the Fire District can <br />:handle all the financial and operational functions as an entity that directly employs firefighters,:: <br />:owns the fire stations and equipment, and is managed by a single board. The second option <br />:the Fire District operating as a fire department, makes sense because it eliminates the <br />Ireclunclancy of administering two boards and maintaining the Fire Department as a separate I <br />:entity, including corporate and financial recordkeeping and reporting. It would be appropriate <br />Ito dissolve the Fire Department after the Fire District has been established and the merger is <br />:completed. Dissolving a nonprofit corporation such as the Fire Department involves several <br />::steps, as outlined below, and takes several months to complete. Thus, you should anticipate <br />:an interim period during which the Fire Department will continue to operate in concert with <br />:the Fire District until all assets and liabilities of the Fire Department are transferred to the <br />:District and the Fire Department is dissolved. <br />Question What would the fire department need to do to become part of the new fire district? <br />......................... ...................................................................................................................................................................................................................... ....................................................................................... <br />Answer ::An initial overview of the steps to transition from the Fire Department to the Fire District <br />:Opinion from attorney Erich Hartmann <br />:follows: a. Each municipal partner must approve a resolution and an agreement concerning <br />:the Fire District, as outlined in Joe Kelly's December 27, 2021, memo and pursuant to Minn. <br />:Stat. § 144F.01. b. The municipal resolution or agreement must specify that the Lake Johanna <br />lFirefighters Relief Association pension plan is associated with the Fire District. § 144F.01, Subd.:: <br />12(c). c. The Fire District must file the establishing resolution and required agreements (and any <br />:amendments) with the Minnesota Department of Revenue. d. Bylaws of the Fire District <br />:should be prepared for execution upon formation of the Fire District. e. I anticipate that the <br />::Fire Department will dissolve, following this process: a. Prepare resolutions of Fire Departmenti <br />lboard and members approving the dissolution of the Fire Department and transfer of all its <br />:assets to the Fire District. b. Prepare notice of meeting of Fire Department members stating <br />:that a purpose of the meeting is to consider dissolving the corporation. c. Hold meetings of <br />:board and members. d. Proceed with dissolution (Minn. Stat. § 317A.701(a)(2)): i. Prepare and I <br />:file Notice of Intent to Dissolve with Secretary of State. ii. Submit Notice of Intent to Dissolve I <br />irequired by Minn. Stat. § 317A.811 with Attorney General. iii. Commence winding up process <br />317A.725 and 317A.735). 1. Collect any debts owed to the Fire Department. 2. Pay or <br />:rnake arrangements to pay debts, liabilities, and obligations of the Fire Department. Chief <br />:Boehlke April 5, 2023 Page 3 3. Complete § 317A.811 requirements prior to transfer of Fire <br />Department assets to Fire District. 4. Obtain waiver or satisfy 45-day notice period (to AG) in § <br />::317A.811, Subd. 2. 5. Transfer assets in accordance with § 317A.735. a. Confirm adequate <br />iinsurance is in place for the Fire District. b. Deed the real estate to the Fire District. c. Assign <br />::trucks, equipment, and personal property to the Fire District. 6. Submit to Attorney General a <br />:list of persons to whom assets were transferred pursuant to § 317A.811, Subd. 4. 7. Prepare <br />:and file Articles of Dissolution with Secretary of State. <br />Question !What would the governance structure of afire district be? <br />................................ ................................................................................................... <br />Answer ::The bylaws of the fire district would likely determine this; board members must be elected :Minn. Stat. § 144F.01 <br />:officials. <br />Question lWould the fire department be able to keep its tax-exempt status? <br />............................................................................................................................................................................................................................................................................................................................................................ <br />Answer ::The Fire District will be exempt from tax as a special taxing district that operates a fire ::Opinion from attorney Erich Hartmann <br />:department. I recommend having an initial discussion now with your accountant. <br />Question ::What would the fire districts' budget and finance controls look like? <br />................................ . ...................................................................................................................................................................................................................... a.................................................................................................... <br />Answer ::The bylaws of the fire district would determine this. :Statement from Brad Martens <br />