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<br />. ~ <br />. ~~HILLS <br /> ME 1\10 RAN () lJ 1\1 <br /> DATE: ~o\'cl1lb('r 27.. 2006 .\GE~DA ITEM 7E <br /> TO: l'vlaynr and City Council <br /> FROM: Michelle Wolfe, City Administmto, ~ <br /> Sf'IUECT: Payment to Lake Johanna Firc Department in the amount of $70.000 for <br /> reimburscment ofthc cost lor purchase of Fire Enginc fl.l. <br /> _u... - <br /> BAC'KGROlJND <br /> The City Council has had two \Vork Session discussions regarding the funding fonllula for Lake <br /> Johanna Fire Department capital purchases. The most reccnt discussion took placc on September <br /> 1 B. 1006. At that meeting staff provided an overvicw of a proposal to apply the current f()[Jnula <br />. uscd lor the operating budget. for the capital equipment budget. Cities would cover I OO(~,;) of the <br /> cosls for the stations in their community (for Arden Hills, Station #1). This is the cun-cnt <br /> practice for station capital items. Lastly. thc proposal included a rccommendation to implement <br /> a "catch-up" provision to equalize past city contributions for capital cquipment. The minutcs <br /> li'om the Septemher 8 Work Session arc attached. <br /> DISCUSSION <br /> The 20m budget has becn prepared with thc understanding that the proposed tonllula would he <br /> Implemented. At the Septcmbcr 8 Work Session. Council indicated supP0l1 !()r the proposal. <br /> Subsequently the Fire Board approved implementation of the new formula. <br /> The '\:ateh-up" provision ill\'oln'd thL' citics of l\rden Ilills and North Oaks covering the cost t()l' <br /> a n.'ccntly-purchase Fire Engine. There would he a fe\v additional incremental paymcnts built <br /> into the hudget in future years. As discussed at thc Work Session, stall analyzed the proposed <br /> change in formula \'crsus proceeding with the currcnt method l()r financing capital equipment <br /> purchases. and even with the catch-up provision includcd, in the long term the City of Arden <br /> i Ijlb will pay less than under the ClllTent proccss (assuming no changes in the formula.) A copy <br /> of the staff rcport from September 8 is attached I()r background. <br /> Arden I [ills recently received an invoicc in the amollnt of 570.000 lor Engine III reimbursement. <br /> The action to be requested at the Novemher 27 meeting is to approve payment of the invoice. <br />. <br />