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CENTENNIAL FIRE DISTRICT JOINT POWERS AGREEMENT 8.2 Steering Committee Budget Process. The Fire Chief shall submit an operating and capital equipment budget to the Committee by July I st of 1990, and each subsequent July 1st thereafter. The budget shall be submitted for the year 1992, in 1990 and for the next year in subsequent years. The Committee shall then review the proposed budget and make a recommendation to the member municipalities by October 1st of 1990 and every October 1st thereafter. Each municipality shall have until November 30, 1990 to adopt the 1992 budget and each subsequent November 30 thereafter. If all member municipalities have not accepted the budget by November 30 in the appropriate year, the committee will make an attempt to resolve outstanding issues and shall report back by February I st of the following year. The municipalities will then have from February 1 st to March 15 to approve the proposed budget. All new budgets must be agreed to by all member municipalities, to become effective. 8.3 Base Budget. If by March 15 the municipalities in the District are unable to mutually agree on the proposed budget for the upcoming year, the amount of the previous years operating budget will be increased by the lesser of the following: (a) The increase in the July, Minneapolis and St. Paul Consumer Price Index for All Urban Consumers (CPI -U) for the period ending most immediately prior to the commencement of the budget year over the same index for the previous year. or (b) The increase in the most restrictive levy limit applicable to the budget year placed on any of the member municipalities over the levy limit for that member municipality for the prior year. In the event (a) or (b) decreases, the operating budget shall remain the same. The capital expenditure contribution will, if there is no mutually agreed on number, revert to $100,000 for the upcoming budget year. SECTION IX FUTURE FIRE STATION CONSTRUCTION 9.1 Procedure. Each municipality not having an existing fire hall meeting District standards, as outlined in the addendum referred to below shall be responsible for the construction of one (1) fire hall within its municipal borders which will be functional by December 31, 1992. Future fire stations beyond the minimum of one (1) will be located, with the exception of common facilities. (The standard specifications will be outlined in an addendum to this agreement to be supplied by the Fire District.) Common facilities such as district offices and training centers shall be paid for in the same manner in which the operating costs are presently assessed. Upon dissolution of the District, the municipality wherein the facility is located shall be required to reimburse the remaining member municipalities the costs they invested into the facility, minus depreciation based upon straight line method Asset Depreciation Range. Page 9 9