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