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provide herein. However, for each successive year, the amount due under this <br />contract is subject to adjustment in the manner described in Paragraph 4. <br />4. Adjustment. Annually by March 31, the amount of compensation will be evaluated <br />and if, in the opinion of the City Manager, an adjustment is necessary, the Manager <br />shall forward a written statement of the new fee to the County Manager to adjust the <br />rate for this service. <br />a. To determine the fee for the contract, annually a calculation will be <br />performed. The evaluation will analyze the cost per call; cost per capita; the <br />cost per square mile; the cost per property value in the service district, and <br />then take an average of the three lowest bases. <br />b. The cost per call will analyze the average number of calls in the district over <br />the last three years multiplied by the cost per call for the fire expenses. <br />Selected expenses of the fire department, as defined herein, divided by the <br />number of calls will equals the costs per call in the city. Then the average of <br />the number of calls over last three years will be multiplied by cost per call. <br />"Selected expenses" are the actual expenses of the fire department for service <br />in the City that will be provided to the district, i.e., last completed year's <br />budget for personnel, operations and depreciation, subtracting the personnel <br />expense for the fire inspectors and capital purchases. <br />c. The cost per capita basis takes the total annual fire expenses in the city <br />divided by the city population to arrive at the cost per capita within the city. <br />This sum is multiplied by the population of the district to get the cost per <br />capita in the district. <br />d. The cost per square mile takes the annual expenses in the City divided by the <br />number of square miles in the City to get the cost per square mile. That is <br />multiplied by the number of square miles in the district. <br />e. The value of the service area basis divides the tax value of the service district <br />land and buildings by the tax value of the City land and buildings arriving at a <br />percent of total value. The total annual fire expense is then multiplied by the <br />percent of value of the service district. <br />f To arrive at the fee, the City will average the three lowest bases, and then <br />round the number up to an even thousand for the cost per service. <br />5. Notices. Notices shall be forwarded to the addresses listed below: <br />City of Sanford <br />P.O. Box 3729 <br />Sanford, NC 27331 <br />ATTN: City Manager <br />ATTN: Fire Chief <br />Lee County <br />P.O. Box 1968 <br />Sanford, NC 27331 <br />ATTN: County Manager <br />