7.2 Joint Powers Agreement with Breezy Point

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The annual Payment Amount provided above and as annually adjusted is based on the application of the following formula: S=U+TxC 2 C=Total estimated cost of fire department operations in dollars. S=Each contracting Party's share of total cost expressed in dollars. T=Building market value of each contracting party expressed as a percent of the sum of the building market value of all contracting parties. U=Use of fire department services in each contracting Party expressed as a percent of the total use of fire department services by all contracting parties. U(Use)+T(Building Market Value)is a method of arriving at the percent of costs that should be charged to each contracting party. To this is added .005 % of the current building market value for Firemen's Relief Association using the same fairshare formula for calculation. ARTICLE X BUDGET AND JOINT FIRE FUND Subdivision 1. Prior to August 1 in each year,the governing body of each Party shall act to approve or disapprove the District budget submitted by the Board for the next calendar year. If either of the two governirng bodies of the Original Parties do not approve the Board's recommended budget,then the Parties shall forthwith convene a meeting of the two city councils to consider the matter.Until the new budget is approved by both Original Parties,continuing District expenditures shall be in accord with the last approved budget. Subdivision 2. On the first business day of January,April,July, and October of each year, each Party shall pay to a joint fire fund an amount equal to one quarter of that Party's share of the annual District budget. The fund shall be administered by the Board or by the Fiscal Agent as designated bythe Board. Funds paid therefrom shall be approved by the Board as provided in this Agreement. Subdivision 3. Interest accruing to the fire fund shall become part of the fire fund and be used towards the District annual budget.Funds on hand at year end shall be reserved and separately accounted to and dedicated for future fire equipment and capital replacement or purchases. Subdivision 4. The Board shall prepare and submit to the City Administrator of each Party a written quarterly financial report of the Board's revenues and expenditures for the prior quarter and current fiscal year. Subdivision 5. Fees and payments from all fire contracts and other services rendered shall be deposited into the fire fund upon receipt.Fees and payments for fire contracts and other services Joint Powers Agreement to Provide Fire Services Page 9 of 26