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market value option would likely increase the cost to North Oaks, while decreasing the cost to both Arden Hills and Shoreview (we would see our percentage drop from 25 percent to 22 percent). It is believed that should the cities use a formula with the fire district that the cities would still then be responsible for presenting the fire district's items through our Truth in Taxation process, which may give the optics to residents that the fire district taxes are part of the city's taxes. Another point to consider, is while the fire district would still have one elected from each City for representation, the district would be acting independently at the direction of the fire district board. Attached is information that has been presented to the current board for consideration (see Attachment A); the board has not yet made a recommendation for or against a fire district, but is looking for feedback from the City Councils. Constructing a New Headquarters The three cities, via a Joint Powers Authority (JPA), have been awarded approximately $6.37 million in State funding for the construction of a new headquarters (must be spent or encumbered by 12/31/2027). Recent estimates have put the cost of the station close to $19 million, which leaves approximately $13 million to be paid for by the three cities. Arden Hills portion of this would be 25 percent, or $3.25 million. Should the three cities decide to move forward with construction, the City of Arden Hills would likely need to bond for its portion of the project. Assuming a 5 percent interest rate, it can be assumed the annual cost to the City would be approximately $260,788 per year. Our current levy for the General Fund is $4,098,680, and our overall levy is $4,718,680, this addition would equate to a 6.4 percent increase and a 5.5 percent increase in the General Fund and overall levy, respectively. New Staffing The department is seeking to hire additional full-time staffing in the upcoming years. To help offset those costs the department is pursuing a SAFER Grant through the Federal Government, which would pay for the new positions for the first three years (an approximate total value of $2 million). The cities would be responsible to pay for the positions following the grant period. Regardless if the grant is received or not, the fire department is planning to have six of these new positions in next year's budget. At full cost, the new positions would cost approximately $900,000, with Arden Hills' portion being 25 percent, or $219,502. Not accounting for the future fire station cost increase, this alone represents a 5.4 percent and 4.6 percent increase to the General Fund and overall levy, respectively. For 2024, the fire department is anticipate hiring these positions in March and in July, which would result in a cost savings. For 2024, the costs for Arden Hills due to the Captains is estimated $138,001. Budget Impact The City will need to consider how to balance current spending priorities along with the proposed fire department costs. The City could push out the fire station project and increase the levy in anticipation of construction. The proposed 2024 budget for the department is attached and included in the budget are summary tables that provide for different scenarios with and without the new station. Attachments • Attachment A: Fire District Information Presented to the LFJD Board • Attachment B: Proposed 2024 LJFD Budget Page 3 of 3