MEMEORANDUM

KENAI PENINSULA BOROUGH

FINANCE DEPARTMENT

TO: Ronald Drathman, President

THRU: Mike Navarre, Mayor

FROM: Jeffrey Sinz, Finance Director

DATE: April 8, 1999

SUBJECT: Ordinance 99-24, Appropriating Supplemental Funding for the Road Service Area

The winter of 1998-99 produced unusually heavy snowfalls and extremely cold temperatures throughout the borough. Snowfall levels in the Homer and Seward areas were extraordinarily heavy. As a result, the Road Service Area has incurred costs significantly beyond budgeted levels. Because the FY1998-99 Roads budget included excess funding of about $97,000 for state capital grants matching purposes, much of the snow related costs have been handled through budget transfer. If this hard winter is followed by a hard break-up, the Road Service Area may not have sufficient appropriations to ensure that service area roads are kept safe and passable.

The attached ordinance provides the Road Service Area with a supplemental appropriation of $100,000 from its unappropriated fund balance to ensure they can continue providing basic road maintenance services for the balance of this fiscal year. In the event this year's break-up is relatively mild, it may be possible to keep costs within current budget levels. If this occurs, the supplemental funding will lapse back to the Road Service Area fund balance.

The Road Service Area Board will meet on April 13, 1999 to further evaluate the need for supplemental funding. The attached ordinance is submitted in advance of their meeting in order to put this issue in front of the assembly should the Road Board decide a supplemental appropriation is needed. In the event they do not, we will be asking that this ordinance be withdrawn.