09-23-2002 Council Packet - Laserfiche WebLink

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9.2 Budget Process By August IS of each year during which this agreement remains in effect, the City of Long Lake will provide an Annual Fire Services Operating Budget and an Annual Fire Services Coital Budget covering the costs related to the provision of fire protection for the next year. The budgets presented to the Contracting cities must have been presented to the Joint Advisory Committee prior to August 1 for discussion and review. Although it is expected that the Armual Fire Services Operating and Capital Budgets which are provided to the Contracting Cities by the City of Long Lake will have the consensus support of the Joint Advisory Committee, that is not a requirement since each Contracting City has the opportunity for final ratification or rejection. 10. Term of this Agreement This Agreement covers the period January 1,2002 through December 31,2020. A contract year covers the period January 1 through December 31 of a calendar year. This Agreement will become effective upon ratification by the Contracting Cities. The term of this agreement will be extended for a period of five years unless this Agreement is terminated as provided in Section 20 of the Agreement. 11. Capital Expenditures Capital expenditures include major equipment and major maintenance, repair, or rehabilitation to the fire station. Major equipment is defined as “rolling stock" or similar major equipment assets required for performing the fire department mission in the Fire Protection Area. To qualify as major equipment, such assets must have an initial purchase value of at least S10,000. To qualify as major maintenance, repair, or rehabilitation, the cost must be at least $10,000. The City of Long Lake and the Long Lake Fire Department shall prepare a 1 S-year major equipment replacement plan, and a I S-year plan for major maintenance, repair, or rehabilitation items related to the fire station. These 1 S-year plans will be the basis for the preparation of an annual capitr.l budget. Neither the approval nor lack of disapproval of the 1 S-year plans by the Contract Cities creates any obligation for final approval or funding of any specific capital expenditure. Final approval of capital expenditures occurs as part of the Annual Fire Services Capital Budget approval process. Capital expenditures must be approved by a minimum of two cities and the combined funding shares of the two cities must be greater than 60%. Once this level of approval is obtained, all Contract Cities are obligated to fund their share of the expenditures. The final approval ofcsq>ital expenditures occurs as part of the Annual Fire Services Capital Budget approval process. When a city approves the Annual Fire Services Capital Budget, the city is also agreeing to pay its share of the cost of capital expenditures