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ARDEN HILLS CITY COUNCIL — August 31, 2009 { <br />MOTION: Mayor Harpstead moved and Councilmember McClung seconded a <br />motion to Approve Budget Amendment to the 2009 Budget in the <br />Public Safety Department an increase of $13,348 for Fire Contracts. <br />Councilmember Grant asked if the City was paying based on this position being <br />there. <br />Finance Director Iverson clarified that the City had already been charged for it <br />and already paid for it because it was part of the contract amount for 2009. <br />Councilmember McClung asked what happens at the end of the year if the <br />position is not filled until the beginning of 2010. <br />Finance Director Iverson stated that she had discussed this with the Finance <br />Director from Shoreview. She had stated that they used to adjust to actual costs but <br />this was discontinued about ten years ago. Currently what happens is the overage is <br />rolled over to the general fund or to another line item if the department was over <br />budget in another area. <br />Councilmember McClung clarified that the overage was arbitrarily shifted around <br />without input from the City. <br />Finance Director Iverson stated that this was correct. <br />Councilmember Holden clarified that there are years that the fire department does <br />spend more than the contracted amount and they do not come back to the City for <br />additional funds. <br />Mayor Harpstead stated that this information is provided to the City in an audited <br />report every year. <br />Councilmember McClung stated that any other department within the City would <br />need to request additional funds from the City if they were over budget. <br />Finance Director Iverson stated that this was correct. <br />Mayor Harpstead clarified that the fire department was a separate legal contract <br />that the City has. Within this contract, responsibility is endowed in a Board and the <br />City of Arden Hills has one member out of seven. The contract is explicit that the <br />shares of the fire department's expenses are divided according to a prearranged, <br />agreed upon, formula. At the beginning of the year when the budget is agreed to, <br />the City is contractually obligated to fulfill the City's portion. <br />