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CCP 06-12-2006
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CCP 06-12-2006
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<br />percentage of this equipment. In addition, Engine #3 was refurbished in 1997, with costs paid by <br />the Fire Depmtment. Fire Engine #2 was refurbished in 2001, with costs split by North Oaks and . <br />Shoreview. <br /> <br />Most of the other major equipment items have been purchased over the years based on the old <br />formula. Essentially, the equipment was paid for by the City where the piece of equipment <br />would be "housed". For example, if a piece of equipment was "housed" at Station #1, Arden <br />Hills was responsible for purchasing it. However, even this formula was not consistently <br />followed, A taJ1ker purchased in 2002 was split among all three cities. Cars for use by LJFD <br />staff were split among all three cities. When a three-way split was used, it was based on the old <br />formula (Arden Hills 25%, North Oaks 12,5%, and Shoreview 62.5%), <br /> <br />Analysis has been done to estimate as closely as possible historical spending for capital <br />equipment, to determine if each City has paid its "fair share". Using the concept of the formula, <br />there would need to be some "catch up" by Norlh Oaks and Arden Hills. Two mechanisms for <br />catching up have been discusscd if the new formula is implemented. One possibility is direct <br />reimbursement from the two cities to Shoreview. Then, the three cities would reimburse the <br />LJFD for their appropriate sharcs of a used engine that was purchased last year. This purchase <br />was to be financed via the sale of a commaJ1d vehicle (sold in November 2004) aJ1d a split <br />between the cities for the balaJ1ce. The reimbursement from the cities to the Fire Department <br />General Fund was delayed until the cities worked out a cost sharing arrangement for capital <br />purchases. The other option would be for Arden Hills and North Oaks to split the cost of the <br />used engine (based on each city's share of "catch up") and reimburse the LJFD General Fund <br />direct! y. <br /> <br />CAPITAL FINANCING FOR BUILDINGS (FIRE STATIONS <br /> <br />. <br /> <br />Buildings and repairs have been paid for by each City according to the following formula: <br /> <br />AH Station 1 <br />SV Stations 3, 4 and Y2 Station 2 <br />NO Y2 Station 2 <br /> <br />DISCUSSION <br /> <br />The Fire Board is now considering a proposal to apply the new operating budget formula to <br />capital equipment purchases. (Station maintenaJ1ce and repairs would remain under the current <br />formula outlined above,) There are maJ1Y reasons for considering this change: <br /> <br />. The current process for funding capital equipment is inconsistent, difficult to understaJ1d, <br />and difficult to explain. <br />. It is very difficuIt to document how much each city has contributed to equipment <br />purchases in the past. <br />. The current system subjects member cities to large ebbs and flows in capital spending <br />from year to year, depending on whether or not a large piece of equipment needs to be <br />funded. <br /> <br />. <br />
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