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9.2 Budget Process <br />By August 15 of each year during which this agreement remains in effect, the <br />City of Long Lake will provide an Annual Fire Services Operating Budget and an <br />Annual Fire Services Capital Budget covering the costs related to the provision of <br />fire protection for the next year. The budgets presented to the Contracting cities <br />must have been presented to the Joint Advisory Committee prior to August 1 for <br />discussion and review. Although it is expected that the Annual Fire Services <br />Operating and Capital Budgets which are provided to the Contracting Cities by <br />the City of Long Lake will have the consensus support of the Joint Advisory <br />Committee, that is not a requirement since each Contracting City has the <br />opportunity for final ratification or rejection. <br />10. Term of this A eern <br />This Agreement covers the period January 1, 2002 through December 31, 2020. A <br />contract year covers the period January 1 through December 31 of a calendar year. <br />This Agreement will become effective upon ratification by the Contracting Cities. The <br />term of this agreement will be extended for a period of five years unless this Agreement <br />is terminated as provided in Section 20 of the Agreement. <br />11. Capital Expenditures <br />Capital expenditures include major equipment and major maintenance, repair, or <br />rehabilitation to the fire station. Major equipment is defined as "rolling stock" or similar <br />major equipment assets required for performing the fire department mission in the Fire <br />Protection Area. To qualify as major equipment, such assets must have an initial <br />purchase value of at least $10,000. To qualify as major maintenance, repair, or <br />rehabilitation, the cost must be at least $10,000. <br />The City of Long Lake and the Long Lake Fire Department shall prepare a 15 -year major <br />equipment replacement plan, and a I5 -year plan for major maintenance, repair, or <br />rehabilitation items related to the fire station. These 15 -year plans will be the basis for <br />the preparation of an annual capital budget. Neither the approval nor lack of disapproval <br />of the 15 -year plans by the Contract Cities creates any obligation for final approval or <br />funding of any specific capital expenditure. Final approval of capital expenditures occurs <br />as part of the Annual Fire Services Capital Budget approval process. <br />Capital expenditures must be approved by a minimum of two cities and the combined <br />funding shares of the two cities must be greater than 60%. Once this level of approval is <br />obtained, all Contract Cities are obligated to fund their share of the expenditures. <br />The final approval of capital expenditures occurs as part of the Annual Fire Services <br />Capital Budget approval process. When a city approves the Annual Fire Services Capital <br />Budget, the city is also agreeing to pay its share of the cost of capital expenditures <br />4 <br />