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<br /> ARDEN HILLS CITY COUNCIL WORK SESSION - JUNE 12, 2006 2 <br /> . . It was not always clear to whom the equipment belongs: To a specific city or cities, to the <br /> Fire Department, or to a combination of both? <br /> . Because it was not clear who the equipment belongs to, it was not clear who should keep <br /> proceeds from a sale. <br /> . This system docs not acknowledge the reality that while a piece of equipment may be <br /> housed in a certain station, the reality is that aU equipment was available to respond to <br /> caUs in all three cities, and they are used in aU three cities. <br /> Under the new formula, the following advantages would result: <br /> . Capital expenditures would be more "even" over time and large peaks could be <br /> avoided, aUowing for easier financial planning and budgeting. <br /> . AU equipment would clearly be assets of the LJFD and its member cities based on a <br /> clear financing formula. <br /> . This would acknowledge that all LJFD equipment is used in aU three member cities. <br /> . The funding formula would be consistent, easy to understand, and easy to explain. <br /> She requested Council provide direction to staff and the LJFD liaison regarding capital <br /> equipment financing. The LJFD Board of Directors would meet again in July and would be <br /> discussing the proposal. Council direction was needed as to whether or not the City would <br /> support this proposed change, so that can be conununicated to thc Board. <br /> . Couneilmember Larson stated it did not make sense to try and divide up the capital investment <br /> among the Fire Department like they did in the past. He indicated the Fire Department served all <br /> of the Cities and he looked at this as a positive development and believed it would make things a <br /> lot easier in the future in determining what each Cities share was. <br /> Couneilmember Holden asked what would happcn if one City was not willing to contribute to a <br /> piece of equipment, or did not have the resources to pay their share. Chief Boehlke, responded <br /> that happened under the old funding plan. He noted when that occurred, they put off the <br /> purchase until a future date. <br /> CouneiImember Larson responded the Board tricd to operate by consensus, which was a good <br /> thing. A representative of the Fire Department stated their equipment needs did not change <br /> much and they knew years in advance when equipment would need to be replaced. <br /> Couneilmember Larson noted at some point the cities would have to pay Shoreview back some <br /> money because they had purchased the largest share of equipment. He indicated one way to do <br /> that was when the next truck was purchased, the City of Arden Hills and the City of North Oaks <br /> would pay a larger share than the City of Shoreview. He stated then the trucks would be owned <br /> by all three Cities as a whole and the only thing that was left were the buildings. <br /> Couneilmember Holden stated she objected to the formula and to paying back to Shoreview for <br /> . purchases made in the past. Couneilmember Larson stated Council had discussed and voted on <br /> the formula for the operating budget and when they weighted all of the factors, thcre was very <br />