01-11-2021 Council Work Session Packet

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DRAFT Comprehensive Fire Service Study MEDINA, MINNESOTA Matrix Consulting Group Page 84 to bear the cost for the additional staffing with little control of the staffing model. In terms of financial resources, the following table illustrates the cost differences. City of Medina Financial Comparison 2021 2022 2023 2024 2025 Status Quo $1,143,085 $1,168,157 $1,205,701 $1,234,950 $1,262,920 Municipal Dept. $630,129 $701,509 $714,406 $688,824 $701,341 JPA $491,051 $664,406 $670,889 $677,502 $691,126 The status quo is based on the 10-year projection that also includes capital expenditures for Hamel, Loretto, and Long Lake Fire Departments. The Municipal Department is based on the projections from Chapter 6 that includes the capital items of apparatus and a fire station. The apparatus, as outlined in Chapter 6, would be paid over a period of five years would be completed by 2026. This would reduce the annual cost by approximately $105,000. The fire station cost, using the calculations in Chapter 6, is $167,000 annually and would be for a period of 15 to 20 years depending on the financing arrangements. The JPA cost is based on the funding formula previously illustrated and the projected costs of the JPA that has Medina providing 45.8% of the funding for the JPA. The capital cost is included in the previous table as illustrated in the Municipal Department Chapter with the apparatus payments being completed in 2026. For the City of Medina there is not much difference between a municipal fire department and a joint fire district partnership in terms of the needed capital items such as a fire station and apparatus. The advantage to all participants in a joint fire district is the sharing of operational costs and eventually capital costs. Should the Joint Fire District secure the right to levy a tax and become self-sufficient, the Joint District would assume all the responsibility. 7 Implementation This process will require time to complete as there are many moving parts to address within each organization and jurisdiction. The Cities of Medina, Long Lake, Orono and Loretto have expressed interest in the establishment of a joint powers agreement. Long Lake Fire Department and the Loretto Fire Department have also expressed their interest in the joint powers agreement. The Hamel Fire Department has expressed their desire to be absorbed by the City of Medina in lieu of the joint powers agreement. The first step is to bring those interested entities together for the purposes of outlining the desired organization and the commitment to pursue the fire district. Within this first step