The current contract covers all insurance costs; salaries, fringe benefits, and overtime; equipment costs, apparatus acquisition, and maintenance; non-prosecution consulting fees; holiday and severance pay; unemployment benefits; utilities; telephone service, gas and oil for police cars; books and periodicals; wearing apparel; officer equipment; rental costs; and all other expenses normally associated with the operation of a nine-officer police department. In determining cost allocations to the participating cities, the entire budget is first prepared. A formula for cost allocation is then applied. Factors in the formula are city population, city assessed valuation, city area, and the number of miles of city roads. Each contract party decides its service level based on the amount of money it wishes to spend. The contract has proven successful largely because the police chief reports only to the Orono city administrator; city council representatives meet monthly; and each city council is willing to negotiate, share costs, meet and confer, and become informed on law enforcement issues.