MEMORANDUM

TO: Ronald Wm. Drathman, Assembly President

Members of the Kenai Peninsula Borough Assembly

THRU: Mike Navarre, Borough Mayor

FROM: Bonnie L. Golden, Assistant to the Mayor

DATE: August 26, 1999

SUBJECT: Ordinance Authorizing the Receipt of a Municipal Capital Matching Grant from the State of Alaska for Road Projects; and Appropriating $494,609 to a Capital Project Account

The Alaska Legislature has appropriated $494,609 to the Kenai Peninsula Borough for its allocation under the FY'00 capital matching grant program. This is a $2,254 increase to the amount received from the State last year ($492,355). Grant funds are to be used to continue our borough-wide road improvement program. Projects under this program were approved by the Road Service Area Board and the Assembly through adoption of KPB Resolution 98-073.

The State's share must be matched by a local share on a 70/30 split based on the total project cost. Therefore, using the appropriated amount of $494,609, the required local share is $211,975. The local share for the Road Service Area was approved within the service area's budget as a contingency item. It must be transferred from the contingency account to the capital improvements account prior to expenditure. The attached ordinance transfers these funds to the road improvement program, as well as appropriates the State's share to the same account.

/bg