MEMORANDUM

TO: Timothy Navarre, Assembly President

Members, Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Mayor

FROM: Jeff Sinz, Finance Director

Colette Thompson, Borough Attorney

DATE: June 4, 2002

SUBJECT: Challenger Learning Center request for funding

Mayor John Williams and Steve Horn, executive director for the Challenger Learning Center of Alaska, met with the Finance Director and Borough Attorney to discuss funding options that may be available in response to the Challenger Learning Center's request for $100,000 dated May 30, 2002. In reviewing the proposal, we cannot conclude that the borough has the power to fund the proposal as written. Although the Department of Education and Early Development advised the Challenger Learning Center that appropriation by the borough directly to the Challenger Learning Center would not count as a local appropriation to the school district, the borough does not have other clear authority or power to fund the listed programs.

However, the Kenai Peninsula Borough has in the past funded capital improvement projects for the benefit of the school district outside of the cap and within the borough's educational funding powers. It may be possible for the borough to provide capital improvement funding for technology or construction at the Challenger Learning Center to the extent the capital improvements are owned by and for the benefit of the school district. Accordingly, Mayor Williams and Mr. Horn will review their proposal and current situation with respect to their proposed project, and may provide the assembly with an alternative proposal for the use of these funds.

Thank you for your consideration of this matter.