MEMORANDUM

KENAI PENINSULA BOROUGH

FINANCE DEPARTMENT

TO: Pete Sprague, Assembly President

Members of the Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Mayor

FROM: Jeffrey Sinz, Finance Director

DATE: November 27, 2002

SUBJECT: Assembly Ordinance 2002-40 Tote Road and Echo Lake Road Subdivision Utility Special Assessment District

Attached please find the ordinance of assessment and the final assessment roll for the Tote Road and Echo Lake Road Subdivision Utility Special Assessment District. The gas mainline has been constructed and a bill has been presented to the borough for payment. The gas mainline benefits 288 lots within the district. The total cost of the assessment is $628,407.36. Based on equal allocation of the total cost of the project, the special assessment per lot in the district is $2,181.97. The assessment may be prepaid without interest within thirty days of the notice of assessment. If not prepaid, the assessment is payable over a ten-year period in equal installments with interest accruing as provided in the attached ordinance. The assessment constitutes a lien on each parcel within the district.

Section 7 of the attached ordinance includes a new provision calling for the annual refund of balances in the reserve and refund account when the account balance exceeds $25 per lot. Previously, refunds from this account were payable at either the end of the ten-year payback period or upon discharge of all indebtedness to the borough.