CCP 11-27-2006 - 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 ycar and reimburse the UFD General Fund directly. If this proposal was accepted by the City Council, it \VOllld 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 CIP budget i()f the LIFO. thc City would financially benefit from the proposed fonnula changc in the future. Councilmember Larson noted that a positive of the proposed formula is that all equipment purchases impact the three cities (Ardcn Hills, North Oaks, and Shoreview) that comprise the Lake .Johanna Fire Departmcnt because cquipment is uscd in all three cities. City Adminsitrator Michellc Wolfe said that the old capital cquipment funding formula was antiquated and in necd of revision. The new fonnula will take into consideration future growth and changes in markct values amongst the three communities. Councilmember Holdcn asked about the cost fonllula for salaries and benefits. City Administrator Wolfe said that thc City of Ardcn Hills is currcntly paying 26.3% of the cost for salaries and benefits. In 2007, the City will be responsiblc for 27.1 % of the cost for employee salaries and benefits through thc UFD. . Counci Imcmber Pellcgrin askcd what \vas incquitable about the last fimding formula. Lake Johanna Fire Department Chief Tim Bochlke stated that the individual communities paid for ddTcrent picces of equipment. Once the trucks were moved to a di fferent station or used by the other cities, the purchasing City did not want to pay for the maintenance costs associated with that piecc of equipment. "rhercfore. it is more equitable to have all three of the communities sharc in costs associated with purchasing a piecc of equipment and have joint ownership. Councilmember Larson stated that the proposed f01l11lda is fair because all three communities will eventually use a particular piece of cquipmcnt over time. C'ounci Imember Holden asked about thc trade-in of fire tmcks #840 and #841. Fire Chief Tim Boehlke stated that the City of Shoreview originally purchased the two fire trucks outright. Thercf()re, it is only hlir that thc City of Shoreview received the trade-in value for the two fire trucks. Councilmember Holden asked how otten the proposed funding formula will bc reviewed. Fire Chief Boehlke said that the UFO Board will review the funding fOllllUla on annual basis. . 2