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Lino Lakes, Minnesota – Fire Department Analysis Page 31
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<br />Table 4: Potential costs and revenue requirements of new fire department
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<br />The costs related to construction and operations at the new station will require revenues in excess of the
<br />city’s current annual contribution to CFD, which is budgeted at $592,963. We estimate that capital and
<br />startup costs will require an additional $699,000 in revenue for the department. In subsequent years, this
<br />amount would drop to $353,500, rising gradually with inflation. Figure 12 shows a projection of the
<br />contributions required by the city over the next ten years.
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<br />To emphasize, the costs involved in constructing and equipping a new fire station will be necessary
<br />regardless of which option the City chooses for providing fire service to the community, if the southern
<br />area of Lino Lakes is to receive a suitable level of service. Our cost projections for operations, apparatus,
<br />training, and turnout gear are likely to be high as we have no clear basis on which to make assumptions
<br />about the exact number and amount of personnel and equipment from the CFD that will be available to
<br />the new department. As more detailed cost estimates become available and as you develop the budget
<br />details we advise and recommend that you refine the preliminary cost projections on an ongoing basis.
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<br />REVENUES 2015 2016 2017 2018 2019
<br />Current Contract 592,963 592,963 592,963 592,963 592,963
<br />Additional Levy 698,808 353,517 368,593 384,046 399,885
<br />State Grants/Reimbursements 10,000 10,250 10,506 10,769 11,038
<br />Charges for services 27,100 27,778 28,472 29,184 29,913
<br />Miscellaneous 275 282 289 296 304
<br />TOTAL REVENUES 1,329,146 984,789 1,000,823 1,017,258 1,034,103
<br />OPERATING EXPENSES
<br />Personnel
<br />Salaries 310,869 318,640 326,606 334,771 343,141
<br />Payroll Taxes 32,900 33,723 34,566 35,430 36,315
<br />Payroll Benefits (Insurance)25,900 26,548 27,211 27,891 28,589
<br />Work Comp 23,100 23,678 24,269 24,876 25,498
<br />Fire Relief Pension 17,850 18,296 18,754 19,222 19,703
<br />Supplies 47,495 48,682 49,899 51,147 52,426
<br />Contracted Services 77,659 79,601 81,591 83,630 85,721
<br />Maintenance 54,740 56,109 57,511 58,949 60,423
<br />TOTAL OPERATING EXPENSES 590,513 605,276 620,408 635,918 651,816
<br />TOTAL OPERATING INCOME 738,633 379,513 380,415 381,340 382,288
<br />STARTUP COSTS
<br />Training for new recruits 120,000 - - - -
<br />Personal protective equipment 240,000 - - - -
<br />TOTAL STARTUP COSTS 360,000 - - - -
<br />CAPITAL COSTS
<br />Debt service - new station 130,212 130,212 130,212 130,212 130,212
<br />Debt service - new apparatus 213,221 213,221 213,221 213,221 213,221
<br />Personal equipment replacement 25,200 25,830 26,476 27,138 27,816
<br />Other fire equipment replacement 10,000 10,250 10,506 10,769 11,038
<br />TOTAL CAPITAL 378,633 379,513 380,415 381,340 382,288
<br />REVENUE OVER/(UNDER) EXPENSE - - - - -
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