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Fire Protection Service Contract Page 4 <br /> ARTICLE 5 <br /> Payment <br /> Payment for the services provided by the Fire Department shall be as follows: <br /> 5.1 Each City shall pay its share of the annual cost for fire protection to the Cities, which <br /> shares shall be determined, unless otherwise agreed by the Cities, using the following formula: <br /> A.C. = (F.C. + A.V.) X (O.C. - O.R.) <br /> (2) <br /> A.C. Annual Cost <br /> F.C. The percentage that the total number of fire calls to each City for the previous <br /> three years bears to the total number of fire calls to the Cities of Spring Lake <br /> Park, Blaine, and Mounds View for the same period. <br /> A.V. The percentage that the Assessed Valuation (unadjusted tax capacity valuation) <br /> of each City bears to the total Assessed Valuation (unadjusted tax capacity valu- <br /> ation) of the Cities. <br /> O.C. Total Budgeted Operating Cost as approved by the Cities. <br /> O.R. Budgeted Non-City Revenues - to include only other contract funds. <br /> 5.2 The annual amount determined in 5.1 shall be paid in nine monthly installments by the <br /> 15th of each month as follows: <br /> January - March 16% per month <br /> April - September 8 2/3% per month <br /> ARTICLE 6 <br /> Determination of Fire Department Budget <br /> 6.1 The annual Fire Department budget shall consist of the entire cost of operation of the <br /> Fire Department including the costs incurred by the Fire Department in financing the special fund <br /> of the Spring Lake Park Firemen's Relief Association, which shall be determined pursuant to the <br /> provision of Minnesota Statute 69.774. <br /> 6.2 Funds from non-City sources, including payments from the MAC, United States <br /> Army and mutual aid agreements shall serve as an offset against amounts required to be <br /> contributed by the Cities to the Fire Department Budget. <br /> 6.3 The Cities' Administrative Committee shall serve as a budget review committee. On <br /> or before June 15 of each year the Fire Department shall submit to the Cities' Administrative <br /> Committee a copy of the annual budget request for the succeeding year. <br /> - 4 - <br />