ENM Council moves forward with contract

The Elko New Market City Council approved a tentative motion to move forward with its Fire and Rescue Service Contract concerning its cost allocation formula. The action came during the council’s Thursday, June 8, meeting, after discussion with representatives of New Market Township.

The Elko New Market Fire Department, a municipal fire department, serves the city, New Market Township and the eastern third of Cedar Lake Township. The department is supported in the city by a general tax levy and annual charges for service to the townships.

In 2015, the Fire Department Workgroup, an advisory group to the council, requested a Fire Department Budget and Cost Allocation Summary for a 2007-2015 memorandum. It was to be used as an informational and educational document for the Fire District’s elected and appointed officials, as well as the general public. During the work on the summary, a discrepancy in the property valuation information provided by Scott County was found. It was found the valuation information was based on total property value - including land value. This was inconsistent with the understanding that operating costs for the department be based on the assessed market value of improvements to the property within the jurisdictions, or portions thereof, within the fire district, not including the value of land.

After this discovery the workgroup has been discussing a new cost allocation formula that will be for a five year period. Originally the group came up with four factors for the formula, which included calls, population, valuation and structures. It was decided that valuation would not be counted. The workgroup reached a stalemate with the two townships favoring a formula that places 25 percent on calls for service, 55 percent on population and 20 percent on the number of structures. The city representative favored a slightly different formula - 25 percent on calls, 50 percent on population and 25 precent on structures. Under both proposed formulas, Cedar Lake Township’s allocation would increase. The formula favored by the two townships would increase Cedar Lake’s allocation to $4,113, while that allocation would increase to $7,112 under the formula favored by the city.

The council was asked to provide direction concerning the cost allocation formulas.

Mayor Bob Crawford noted they dropped valuation as one of the factors because it raised Cedar Lake Township’s allocation even higher.

Council member Trish Timmons asked for a definition concerning structures. City Administrator Tom Terry responded it meant everything from a $4 million house to a simple corn crib. Timmons believed the two formulas were so close that it seemed as if they were splitting hairs.

New Market Township representative Mike Huntington said they...

To see more on this story pick up the June 22, 2017 print edition of The New Prague Times.