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this ordinance be withdrawn.