City Council Meeting Date: August 21, 2018
To: Honorable Mayor & City Council
From: Ben Martig, City Administrator
Subject:
TITLE
Consider Approval of Fire Department 2019 Capital Equipment Budget Contribution.
BODY
Action Requested:
The Northfield City Council approves the 2019 Northfield Area Fire and Rescue Service (NAFRS) capital contribution in the total cost of $630,000, of which Northfield’s contribution is $450,891.00.
Summary Report:
Please see attached background information related to the 2019 budget request by NAFRS (Attachment 1). The Joint Powers Agreement Fire Protection and Rescue Services requires board adoption of a budget both for operating and capital by August 1. The board made their recommendation at the meeting in June for the operating budget and in July for the capital budget. The Joint Powers Agreement requires action by the governing bodies of each of the parties for the operating budget and capital contribution for the upcoming year on or before September 30 in each year.
The City Council reviewed the operating budget request at the July 10th Council meeting and adopted the budget at the July 17 Council meeting under the consent agenda. The total expenditures approved in the operating budget are $807,000, of which Northfield’s contribution is $577,569.90.
The NAFRS Board approved the recommendation of the 2019 Capital Equipment Plan at their meeting on July 19, 2018. The City Council was presented the preliminary recommended 2019 Capital Equipment Plan at their meeting on July 10th (Attachment 3).
The final capital contribution for 2019 approved by NAFRS and requested for Party authorization is $630,000 as outlined in the attached request letter (Attachment 1). The capital items are included in the preliminary budget. Staff is recommending Northfield’s pumper contribution to be funded from general fund reserves that would be transferred to the capital equipment fund. The final funding would be determined through the final 2019 budget approval process.
Alternative Options:
Pull from the consent agenda for further discussion.
Financial Impacts:
2019 Proposed Capital Equipment purchase $630,000
- Northfield Contribution @ 71.57% = $450,891.00
2019 Proposed NAFRS Budget = $809,000
Note: $529,000 with lease omitted for comparison purposes to 2018.
2019 Proposed Northfield Contribution = $577,569.90 (71.57%)
Note: $378,605.30 with lease omitted for comparison purposes to 2018 (+2,862.80).
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:
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.
NAFRS is currently working on receiving bids for the pumper that will be replacing the 1987 pumper. This is scheduled for a review at the September NAFRS Board meeting. There may be a request (or may not) to consider a cash up front purchase to reduce costs. Staff has tentatively put this on the upcoming agenda on October 2, 2019.