Kenai Peninsula Borough

Finance Department

Memorandum

To: Pete Sprague, Assembly President

Members, Kenai Peninsula Borough Assembly

Thru: Dale Bagley, Mayor

From: Scott Holt, Finance Director

Craig Chapman, Controller

Date: June 15, 2004

Re: Ordinance 2003-19-54(Mayor Substitute), Increase in Health Insurance Claims

As mentioned in the memo dated May 20, 2004, the Borough's health insurance claims came in at a rate substantially higher than the budgeted amount. Since May 20, the estimated Borough General Fund expense increased from $340,000 to approximately $450,000. The estimated Service Area and other fund expenses have increased from $330,000 to approximately $440,000.

Although most of the projected increases can still be absorbed within each department, the attached substitute ordinance would appropriate the corrected estimated amounts.