11/06/1975 Council Minutes - Laserfiche WebLink

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OCTOBER 23, 1975 SOURCES OF INCOME (CONTINUED) City Service $ 25,000.00 Utility 18,000.00 Cent. Cont. 20,000.00 Levy Abate 405.81 Total $333,240.93 Assessed Valuation $9,306,089.00 Personal Peroperty 858,882.00 TOTAL $10,164,971.00 ESTIMATED MILL RATE 14.76 NOVEMBER 6, 1975 The eight budger meeting was called to order at 8:15 P.M. by Mayor Bohjanen on November 6, 1975. Council members present: McLean and Zelinka. Absent: Marier and Jaworski. Newly elected Council members Schneider and Karth were in the audience. Mayor Bohjanen said this meeting had been called to consider the Lexington Fire Contract and their method of arriving at the cost figures. Mr. Benjy Munson, Lexington Fire Chief, was present to explain. Mayor Bohjanen turned the meeting over to Mr. Munson. Mr. Munson went through the formula that was used to compute the costs allocated to the City of Lino Lakes for fire protection. The number of calls for the past four years and the first 9 months of 1975 had been computed and averaged in order to arrive at the percentage of cost to be allocated. It was found that 60.6% of the calls are for Lino Lakes. The value of the equipment and buildings had been added on a percentage basis. The assessed valuations had been totaled and averaged. The operating costs, depreciation costs on equipment and buildings and a 10% administration costs had been added and multiplied by the percentage of use. Mr. McLean questioned the 10% administration costs. He felt this charge had already been accounted for in the operating costs. After some discussion on this, Mr. Munson agreed. Mr. McLean asked if the contract could be adjusted to reflect this and Mr. Munson said that it could be. He will re- compute the figures and get a copy back for the Council. Mr. Zelinka computed the costs and found that the Contract for Fire Coverage with the City of Lexington for 1976 would be $11,575.00. Mr. McLean complinmented Mr. Munson on the formula. He felt this is a much more efficient way of computing costs. Mr. Munson said this is an accepted way �f computing cost by the Fire Association. He said that the City of Lexington would like to talk to the Council about a contract for a longer period of time than one year.