CCWS 09-18-2006 - Laserfiche WebLink

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ARDEN HILLS CITY COUNCIL - SEPTEMBER 18, 2006 . provision have been discussed. The first option is for the Cities of Arden Hills and North Oaks to directly reimburse the City of Shoreview for catch-up amount. A second option would be for the Cities of Arden Hills and North Oaks to split the cost of the used engine that was purchased last year and reimburse the LJFD General Fund directly. If this proposal was accepted by the City Council, it would be approximately $70,000 for the City of Arden Hills and $35,000 for the City of North Oaks. The balance of the catch-up funding would be paid back over a period of years by incorporating the cost into the City's annual budget. Based upon the proposed ten year CLP budget for the LJFD, the City would financially benefit from the proposed formula change in the future. Councilmember Larson noted that a positive of the proposed formula is that all equipment purchases impact the three cities (Arden Hills, North Oaks, and Shoreview) that comprise the Lake Johanna Fire Department because equipment is used in all three cities. City Adminsitrator Michelle Wolfe said that the old capital equipment fimding formula was antiquated and in need of revision. The new formula will take into consideration future growth and changes in market values amongst the three communities. Councilmember Holden asked about the cost formula for salaries and benefits. City Administrator Wolfe said that the City of Arden Hills is currently paying 26.3% of the cost e for salaries and benefits. In 2007, the City will be responsible for 27.1 % ofthe cost for employee salaries and benefits through the LJFD. Councilmember Pellegrin asked what was inequitable about the last funding formula. Lake Johanna Fire Department Chief Tim Boehlke stated that the individual communities paid for different pieces of equipment. Once the trucks were moved to a different station or used by the other cities, the purchasing City did not want to pay for the maintenance costs associated with that piece of equipment. Therefore, it is more equitable to have all three of the communities share in costs associated with purchasing a piece of equipment and have joint ownership. Councilmember Larson stated that the proposed formula is fair because all three communities will eventually use a particular piece of equipment over time. Councilmember Holden asked about the trade-in of fire trucks #840 and #841. Fire Chief Tim Boehlke stated that the City of Shoreview originally purchased the two fire tmcks outright. Therefore, it is only fair that the City of Shoreview received the trade-in value for the two fire trucks. Counci1member Holden asked how often the proposed funding formula will be reviewed. . Fire Chief Boehlke said that the LJFD Board will review the funding formula on annual basis. 2