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<br /> <br /> STAFF REPORT <br /> <br /> <br />TO: Mayor Fischer and Members of City Council <br /> FROM: Laura Linehan, Acting City Administrator <br /> <br />DATE: March 26, 2025 <br /> <br />RE: 2025 Little Canada Fire Department Contract <br /> <br /> <br />ACTION TO BE CONSIDERED: <br />Approval of 2025 Little Canada Fire Department Contract <br /> <br />BACKGROUND: <br />Attached is the Fire Protection Contract with the Little Canada Fire Department for 2025. <br /> <br />The City of Little Canada is authorized by law to provide fire protection services for all property <br />in City of Little Canada, and the Little Canada Fire Department is a volunteer fire department <br />that operates as a non-profit association under the laws of the State of Minnesota. <br /> <br />The City agrees to pay the following amounts to the Little Canada Fire Department for fire <br />protection services: <br />a. $482,435 shall be paid in quarterly installments. The City will issue the first quarterly <br />check immediately following the first City Council meeting of the contract year. <br />Subsequent quarterly payments will be issued immediately following the Council <br />meetings preceding April 1st, July 1st, and October 1st. <br /> <br />b. $37,333 or the “required contribution” as calculated pursuant to statutory requirements <br />for deficit retirement associated with the fire relief association, whichever is greater, <br />shall also be paid in quarterly installments for Little Canada Fire Relief funding. This <br />contribution will be increased on an annual basis according to the Cost of Living <br />Adjustment (COLA) increase for staff based on the Consumer Price Index (CPI). <br /> <br />c. Within 30 days of receipt, the City shall remit to the Fire Department a lump sum <br />payment in the same amount of Fire State Aid received from the State of Minnesota. <br /> <br />Staff has reviewed the Little Canada Fire Department budget request and the attached contract <br />with Fire Chief Don Smiley. As done historically, the contract amounts were also included in the <br />City’s final recommended budget and levy for 2025. <br /> <br />Contract Modifications <br />In reviewing the agreement, Chief Smiley noted in Section 2 of the agreement, calls for service <br />were limited to “within the legal limits of the city.” However, as part of mutual aid agreements <br />with the Capital City Mutual Aid organization, calls are responded to outside of city limits. <br />Historical records note that the Little Canada Fire Department has been part of the Capital City