MEMORANDUM

TO: Pete Sprague, Assembly President

Kenai Peninsula Borough Assembly Members

THRU: Dale Bagley, Mayor

FROM: Ed Oberts, Assistant to the Mayo

DATE: June 26, 2003

SUBJECT: Ordinance 2003-19-05: An Ordinance Appropriating $25,000 from Central Emergency Service Area to Funny River Emergency Services, Inc. for Prepaid Rent of Space in the Funny River Fire Station.

On June 19, 2003, the Central Emergency Service Area (CESA) board passed a motion requesting the appropriation of $25,000 from CESA fund balance to fund completion of the station. In exchange, the borough will receive the right to use a portion of the facility to house CPEMSA equipment. An agreement will be presented to the assembly for approval when negotiated.

In support of service area funds being utilized for this project, it is important to take into consideration that the Funny River area is within the Central Peninsula Emergency Medical Service Area. This area currently has a taxable value of $54,589,150, which, at the current 1.0 mill tax rate, generates $54,589 of revenue annually.