CCP 11-27-2006 - Laserfiche WebLink

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determine cost splits, however, various capital items that are older were often times purchased . directly by the Fire Department which makes determining the cost split by community very di fficult. Between 1979 and 1992, five pieccs of equipment were purchased dircctly by the Firc Department from their capital fund. It is difficult to dctennine which community paid for what percentage of this equipment. In addition, Engine #3 was rcfurbished in 1997, with costs paid by the Fire Department. Fire Enginc #2 was refurbishcd in 2001. with costs split by North Oaks and Shorevicw. Most of the other major equipment items have been purchased over thc years based on the old formula. Essentially, the equipment was paid for by the City whcre the piece of equipmcnt \\'lluld be "housed". For example. if a piece of equipment was "housed" at Station Ifl, Arden Hil]:" was responsible for purchasing it. However, even this fonnula was not consistently followcd. A tanker purchascd in 2002 was split among all threc cities. Cars for usc by UFD ;;(,11'(' \\cre split among all three cities. Whcn a three-way split was lIsed, it \vas based on the old ;;l!'J1lula (Arden lIills 2sr~;,. North Oaks 12S};J, and Shoreview 62.5'j'o). That same three-way ~p! it was used fi.lr somc general equipment purchases that wercn't specitic to a station. Analysis has been done to estimate as closely as possible historical spending for capital equipment. to determine if each City has paid its "bir share'-. Using the concept of the formula, there would nL'ed to be some "catch up" by North Oaks and Arden Hills (Approximately 5174,704). Two mechanisms for catching up have been discussed if the nc\\' formula is . implemented. One possibility is direct reimbursement irom the two cities to Shorcview. Then, the three cities would reimburse the lJFD for their appropriate sharcs of a used engine that was purchased last year. This purchase was to be financed via the sale of a command vehic\c (sold in November 2004) and a split betwcen the cities for the balance. The reimbursement from the cities to the Fire Department General Fund \vas delayed until the cities worked out a cost sharing arrangement for capital purchases. Thc other option would be for Arden Hills and North Oaks to split the cost of the used engine (based on each city's share of "catch up") and reimburse the LlFD General Fund directly. If that was done, it would be approximately $70,000 for the City of Arden Hills and S35,OOO for the City of North Oaks. The balance of our "catch-up" would be paid back over period of years (probably five years) by incorporating it into the budget. CAPITAL FINANCING FOR BUILDINGS ((<'IRE STATIONS) Buildings and repairs have been paid for by each City according to the following formula: AH Station I SV Stations 3, 4 and ~/2 Station 2 NO 1/2 Station 2 DISClJSSION The Fire Board is now considering a proposal to apply the new operating budget formula to capital equipment purchases. (Station maintenancc and repairs would remain under the current . formula outlined above.) There are many reasons for considering this change: