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Lake Johanna Fire Department Board of Directors Fire District Discussion Revised 6/20/23 Why the interest in creating a Fire District? In 2021, the Minnesota State Legislature amended Statute 2020, section 275.066 Special Taxing Districts adding Fire Protection Special Taxing Districts under 2990.01 giving authority for two or more cities municipalities to establish a special taxing district to provide fire protection or emergency medical services within the area of the district. At a Board of Directors meeting, Arden Hills Councilmember and Board of Directors Representative Dave McClung informed the board members of this new legislation. At that time, it was generally agreed that this might be a good alternative for the cities to consider given significant future operating and capital funding needs in the future. Current Governance Model The Fire Chief reports to the Board of Directors. The Board of Directors consists of seven (7) Board Members allocated as follows: City Representatives Shoreview — 2 Board Members Arden Hills —1 Board Member North Oaks — 1 Board Member Fire Department Representatives At -Large — 3 Board Members The Fire Chief serves as the Chief Executive Officer and is responsible for day-to-day operations of the Fire Department, recommends policies and programs, has the authority to hire, discipline and terminate all staff. The Fire Chief prepares operating and capital budgets for the Board of Directors. Historically, if one city is not in favor of the proposed budget(s), the budgets are adjusted until all three cities are in favor. Historically, the board voting on approving budgets does not occur until all three cities are in favor of the budgets. Once the board approves the operating and capital budgets, each city must individually approve their percentage share of the budgets for the following year. The Board of Directors has adopted a "Fire Distribution Formula" based on the following criteria: 25% Population, 25% Households, 10% Market Value, and 40% Fire/EMS calls. For 2023, the cities' share of the budget is: Arden Hills 24.9%, North Oaks 14.4%, and Shoreview 60.7%. This formula is also averaged over a five-year period creating stability. For historical purposes, no city has gone up or down more than 1.4% in total between 2015 and 2023. Year over year, no city has gone up or down more than 0.5%.