09-27-1993 Council Packet - Laserfiche WebLink

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previously ratified as the Year Two Budget shall become the Annual Operating 1 udget for the second contract year a'^d the term of this Agreement shall not be extended. 9.4 V/ben during the second contract year of any three year period covered by the Agreement the /Annual Budget I’ackage is not ratified by Contracting Cities by October 1, the amount previc usly ratified as the Year Two Budget shall become the Annual Operating Budget for the third contract year and tbe term of this Agreement shall not be extended. 9.5 When during the third contract year of any three year period covered by tne 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 .^udit of Actual Costs The Contracting City understands and agrees that it impossible to project with complete accuracy the actual costs ot labor and etjuipment as well as the si *vice to be reejuired by each Contracting City for die forthcoming contract year and thereby hereby agrees to a yearly audit to adjust the prior year's estimated cost of service as set forLh 'we to the actual costs incurred by the City of Long Lake. On or before April 1 of each year the City of Long Lake will tabulate the actual cost of tlie 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 tor the prior contract year may rt.,c''. in either a surplus or deficit with respect to that year s Annual Opetwting Budget. Any surplus shall be refunded to the contract cities in the same ratio as the cost allocation formula. Any defi.it shall be funded by the contract cities in the same ratio as the cost allocation tor nula. It is expected that expenditures will remain within the Annual Operating Budget amounts and will only exceed such budget xmounts in die case of an extraordinary event or when mutually agreed to by the Contracting Cities as proviued in Section 12. 11 ■ Contract Payments 'llie City Budget Sharc(See Section !6.2) of each Contracting City shall be paid in equal quarterly installments on January 1, April 1, July I and October 1 of the next contract year by the Contracting City to the City ot Long Lake. Long I ake agrees to piovide the Ci'nti.uting C ity with rea‘>onably det.iile.l information rel.ifing to the actual expenditures against die Annual Operating Budget at its request and agiees to make its records available to die Contracting City for inspection for the puriiose of determining the ba.sis for the allocation of costs to fire protection. 12. Unforecasted Expenditures Notwithstanding any of the above, the Contracting CL/es shall have the right to be heard regarding any prop<)sed expenditures which are not identified in the Annual Operating Budget and which exceed $5,000.00 . Notice of such propo.sed. non-budgeted expendioires shall be given in writing to the Contracting Cities prior to actual expenditures for such items and the Contracting cities shall thereafter have 21 days in which to approve or disapprove the same in writing and if there is no response which disapproves the expenditure, it is agreed that such