11-10-1997 Council Packet - Laserfiche WebLink

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9.2 When during the first contract year of any three year period covered by the Agreement the Annual Budget Package is ratified by Contracting Cities by October 1, this Agreement shall be extended by one contract year. When during the second contract year of any three year period covered by the Agreement the Annual Budget Package is ratified by Contracting Cities by October 1, this Agreement shall be extended by two contract years. When during the third contract year of any three year period covered by the Agreement the Annual Budget Package is ratified by Contracting Cities by October 1, this Agreement shall be extended by three contract years. The elements of the Annual Budget Package so ratified will replace the elements of the previously ratified Annual Budget Package. 9.3 When during the first contract year of any three year period covered by the Agreement the Annual Budget Package Is not ratified by Contracting Cities by October 1, the amount previously ratified as the Year Two Budget shall become the Annual Operating Budget for the second contract year and the term of this Agreement shall not be extended. 9.4 When during the second contract year of any three year period covered by the Agreement the Annual Budget Package is not ratified by Contracting Cities by October 1, the amount previously ratified as the Year Two Budget shall become the Annual Operating Budget for the third contract year and the term of this Agreement shall not be extended. 9.5 When during the third contract year of any three year period covered by the Agreement the Annual Budget Package is not ratified by Contracting Cities by October 1 this Agreement will terminate at the end of that contract year. 10. Annual Audit of Actual Co.^ts The Contracting City understands and agrees that it impossible to project with complete accuracy the actual costs of labor and equipment as well as the service to be required by each Contracting City for the forthcoming contract year and thereby hereby agrees to a yearly audit to adjust the prior year's estimated cost of service as set forth above to the a^ual costs incurred by the City of Long Lake. On or before April 30th of each year the City of Long Lake will tabulate the actual cost of the fire department budget for the prior contract year and will submit to the Contracting Cities a summary of the actual costs. The actual costs set forth for the prior contract year may result in either a surplus or deficit with respect to that year's Annual Operating Budget. Any surplus shall be refunded to the contract cities in the same ratio as the cost allocation formula. Any deficit shall be funded by the wntract cities in the same ratio as the cost allocation formula. It is expected that expenditures will remain within the Annual Operating Budget amounts and will only exceed such budget amounts in the case of an extraordinary event or when mutually agreed to by the Contracting Cities as provided in Section 12. 11. Contract Payments The City Budget Share(See Section 16.2) of each Contracting City shall be paid in equal quartei^ Installments on January 1, April 1, July 1 and October 1 of the next contract year by the Contracting City to the City of Long Lake.