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AGENDA ITEM <br />Prepared By: RJO Reviewed By: Approved By: <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />1. Purpose. To reject the 2023 Long Lake Fire Capital Improvement Budget. <br /> <br />2. Background. The terms of the 2002 Agreement and Contract for Fire Protection between <br />the Cities of Long Lake, Medina, and Orono, requires the City of Long Lake to provide an <br />updated 15 year Capital Improvement Plan (CIP) for the next year by August 15th. Long Lake <br />has provided the CIP to the contract cities for their approval <br /> <br />Orono is a strong supporter of the fire fighters, and will continue to support the proper funding of <br />the fire department’s operating budget. Orono is also committed to ensuring that the fire fighters <br />have the necessary equipment to complete their public safety mission. <br /> <br />However, the 15-year CIP being presented tonight has been prepared without adequate funding <br />in place to purchase the identified equipment. The 2023 purchases alone will require over 13- <br />years of the department’s annual funding assumptions of $104,000. Approval of a CIP without a <br />long term funding plan would be inconsistent with how we currently approve Orono’s annual <br />CIP. <br /> <br />In addition, the Cities of Orono and Long Lake are currently in negotiations concerning the <br />future of the fire department. It would be fiscally irresponsible to approve a CIP authorizing the <br />purchase of equipment that may not be appropriate for a reorganized fire service area. Orono <br />remains willing and committed to consider the purchase of needed equipment on a case by case <br />basis. <br /> <br />3. Cost. CIP costs are allocated to each contract city based on the same formula as the operating <br />budget. Orono’s cost for the 2023 CIP items is estimated to be $1,176,696. <br /> <br />4. Funding. The cost of the fire services provided by the Long Lake Fire Department will be <br />paid out of the Improvement & Equipment Outlay Fund. The current cash balance in the fund is <br />$675,000. The amount of the balance designated for fire equipment is only $300,000. <br /> <br />5. Staff Recommendation. Staff recommends rejection of the 2023 Long Lake Fire <br />Department Capital Improvement Budget as presented. <br /> <br />COUNCIL ACTION REQUESTED <br />Motion to reject the 2023 Long Lake Fire Capital Improvement Budget and to approve 2023 <br />capital requests on an individual basis as they are brought the Council. <br /> <br />Exhibits <br />A. 2023 Long Lake Fire Capital Improvement Budget <br />Item No.: 9 Date: September 26, 2022 <br />Item Description: Reject 2023 Long Lake Fire Capital Budget <br /> <br />Presenter: Ron Olson, Finance Director Agenda <br />Section: <br />Consent Agenda