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DRAFT Comprehensive Fire Service Study MEDINA, MINNESOTA <br /> <br />Matrix Consulting Group Page 73 <br />Initially the fire district will rely on the municipalities to provide funding for the operation of <br />the district. In order for the fire district to become a taxing district the Minnesota State <br />Legislature must pass a law providing the authority. Another mechanism to fund the fire <br />district would be to establish a property tax rate that would sustain the fire district and <br />apply that to each individual member of the fire district. The table that follows uses the <br />taxable market value of the four municipalities to determine the percentage of <br />contribution. <br /> <br />JPA Taxable Funding Formula <br /> <br />Taxable Market Value Pct of the Total <br />Long Lake $296,371,990 5.3% <br />Orono $3,419,069,460 60.6% <br />Medina $1,855,481,106 32.9% <br />Loretto $71,764,455 1.3% <br />Totals $5,642,687,011 100.0% <br /> <br />While this mechanism seems to create a heavier burden to Orono, if the fire district <br />becomes a taxing authority the funding will in fact become a heavier burden to the Orono <br />area. The table that follows provides another mechanism that takes in to account the <br />area, population and calls for service. <br /> <br />JPA Funding Formula <br /> Sq Miles Population Call Volume Contribution Pct. <br />Long Lake 0.86 2.0% 1,816 10.4% 67 11.1% 7.8% <br />Orono 15.92 37.4% 8,339 47.6% 280 46.4% 43.8% <br />Medina 25.55 60.0% 6,712 38.3% 236 39.1% 45.8% <br />Loretto 0.26 0.6% 664 3.8% 21 3.5% 2.6% <br />Totals 42.59 100.0% 17,531 100.0% 604 100.0% 100.0% <br /> <br />This method is similar to the existing method but is somewhat simplified. All three <br />components are expressed as a percentage of the total for that component. When added <br />together then divided by three the percentage of contribution is developed. In this <br />scenario the municipalities that are the largest in size, population, and users of the system <br />contribute more. <br /> <br />The following table illustrates anticipated projected expenditures for five years for the <br />Joint Powers Agreement. It is based on the Long Lake Fire Department budget as that <br />budget was detailed and contained many of the expected line items for a joint venture.