MEMORANDUM

KENAI PENINSULA BOROUGH

FINANCE DEPARTMENT

To: Ronald Wm. Drathman, Assembly President

Members, Kenai Borough Assembly

Thru: Mike Navarre, Mayor

From: Jeffrey Sinz, Finance Director

Date: April 8, 1999

Subject: Ordinance 99-22, Appropriating Funds For School Purposes For Fiscal Year 1999-2000.

Ordinance 99-22 appropriates local funding for the FY1999-2000 school district budget. The amounts contained in the ordinance anticipate that the assembly will approve a resolution on May 4, 1999 setting local school funding at the maximum allowable level under state statutes. The estimated maximum local funding was calculated by the school district based on their projected enrollment. This same amount will be included in the mayor's proposed FY1999-2000 budget scheduled for presentation to the assembly on May 4, 1999. The local school funding totals $29,435,314, consisting of $23,513,189 in direct operational funding and in-kind services of $5,922,125.

Section 2 of the ordinance provides that any direct operational funding appropriated will be distributed to the school district through monthly payments in the amount necessary to cover the difference between actual school district expenditures and revenues received from other sources. At year-end, the balance of the appropriated direct operational funding, up to the maximum local contribution based on actual enrollment data, will be paid to the school district. This language is being added to clarify that it is the intent of the assembly to allow the school district to generate and accumulate their own fund balance, and to clarify that the appropriation is intended to equal the actual maximum local funding under state statutes.