City Council Meeting Date: August 17, 2021
To: Honorable Mayor & City Council
From: Ben Martig, City Administrator
Subject:
TITLE
Consideration of 2022 Northfield Area Fire & Rescue Services Budget and Capital Improvement Plan (CIP) and Related City of Northfield of Fire Department 2022 Contribution.
BODY
Action Requested:
The Northfield City Council approves the 2022 budget request from the Northfield Area Fire and Rescue Service (NAFRS) with the proposed budget expenditures of $802,000, of which Northfield’s financial contribution is $580,400.
Summary Report:
The City Council reviewed the attached budget request from NAFRS related to the 2022 Budget and Capital Equipment Plan at the August 11th City Council meeting. The NAFRS board approved the final 2022 Budget and Capital Improvement Plan at their meeting in on July 15th. The final approved 2022 budget and Capital Improvement Plan was the same as preliminary NAFRS budget and Capital Plan was also reviewed.
The operating costs increase was very minimal with a majority of costs related to the debt repayment on the Fire Station renovation and expansion (via lease payment) and personnel related expenses.
There are no capital vehicles planned for 2022 but there are two major trucks coming with a pumper truck (2023) and a tanker truck (2024). We will be planning for those with our vehicle equipment fund analysis.
The formula for contribution rates by members (established through the joint powers agreement) will be updated with new census data expected to be announced this week. The city contribution will be adjusted to reflect the new formula once that is received and will be adjusted in the budget thereafter. That information will be provided to the City Council once it is received.
Alternative Options:
Not applicable.
Financial Impacts:
2022 NAFRS Operating Budget = $802,000
2022 NAFRS Capital Equipment Budget = $0
2022 NAFRS Total Preliminary Operating & Capital Equipment Budget = $802,000
2022 Northfield Operating Budget Contribution = $580,400 (72.55%)
2022 Northfield Capital Equipment Budget Contribution = $0 (72.55%)
2022 Northfield Total Operating and Capital Contribution = $580,400 (72.55%)
* Note: the contribution rates are scheduled for an update this year. The demographers office is scheduled for update in August and the city contributions will be adjusted to reflect the new formula.
2021 NAFRS Operating Budget = $799,000.00
2021 NAFRS Capital Equipment Budget = $380,000.00
2021 NAFRS Total Preliminary Operating & Capital Equipment Budget = $1,179,000.00
2021 Northfield Operating Budget Contribution = $579,674.50 (72.55%)
2021 Northfield Capital Equipment Budget Contribution = $275,690.00 (72.55%)
2021 Northfield Total Operating and Capital Contribution = $855,364.50 (72.55%)
2020 NAFRS Operating Budget = $836,748
* for purposes of calculating the parties contribution using $834,748 as there is an additional $2,000 in revenues from training fees (fire extinguisher training) offsetting from the total.
2020 NAFRS Capital Equipment Budget = $75,000
2020 NAFRS Total Operating & Capital Equipment Budget = $911,748
2020 Northfield Operating Budget Contribution = $605,609.67 (72.55%)
2020 Northfield Capital Equipment Budget Contribution = $54,412.50 (72.55%)
2020 Northfield Total Operating and Capital Contribution = $660,022.17 (72.55%)
2019 NAFRS Budget = $817,000 (includes small equipment budget $10,000)
Note: $529,000 with lease omitted for comparison purposes to 2018.
2019 Northfield Budget Contribution = $584,726.90 (71.57%)
Note: includes lease contribution.
2018 NAFRS Budget = $525,000
2018 Northfield Contribution = $375,742.50 (71.57%)
2017 NAFRS Budget $525,000.00
2017 Northfield Contribution = $378,945.00
2016 NAFRS Budget = $525,000
2016 Northfield Contribution = $379,155
Tentative Timelines:
ü July 15th NAFRS Board Recommended Budget and CIP - Note: The Joint Powers Agreement Fire Protection and Rescue Services requires board adoption of a budget by August 1.
ü August 10th - City Council budget worksession review of NAFRS budget
• August 17th - City Council consideration of approval of contribution
Note: The Joint Powers Agreement requires that the City of Northfield, as a governing body of the agreement, shall act to approve or disapprove the NAFRS budget submitted on or before September 30.