MEMORANDUM

Kenai Peninsula Borough

Finance Department

TO: Tim Navarre, Assembly President

Kenai Peninsula Borough Assembly Members

THRU: Dale Bagley, Mayor

FROM: Jeffrey Sinz, Finance Director

DATE: December 24, 2001

SUBJECT: Ordinance 2001-01, Rescinding Authorization for Previously Authorized But Unissued General Obligation Bonds

The borough currently recognizes a total of $794,000 in authorized but unissued general obligation bonds. This total consists of $792,000 originally authorized for capital improvements within the South Peninsula Hospital Service Area and $2,000 for capital improvements to solid waste facilities. These authorizations have become dated, but nonetheless are technically still considered valid and must therefore be recognized and disclosed in the borough's accounting statements.

The first was originally authorized 26 years ago. Through the enactment of Ordinance 75-02, borough voters approved the issuance of $1,500,000 to fund capital improvements within the South Peninsula Hospital Service Area. Of the amount authorized, only $708,000 was issued leaving $792,000 in authorized but unissued bonds.

The second was originally authorized twelve years ago. Pursuant to Ordinance 89-32, Borough voters approved the issuance of $4,662,000 in general obligation bonds to fund solid waste capital improvements in Seward and Soldotna. Of the amount authorized, $4,660,000 was issued leaving $2,000 in authorized but unissued bonds.

In both cases, the projects are considered completed and the unissued funds are not needed to fund the projects as originally envisioned. It is therefore recommended that the assembly enact the attached ordinance rescinding the previous authorization for unissued general obligation South Peninsula Hospital Service Area bonds of $792,000 and solid waste bonds of $2,000.