MEMORANDUM

TO: Pete Sprague, Assembly President

Members, Kenai Peninsula Borough Assembly

FROM: Ron Long, Assembly Member

DATE: March 20, 2003

SUBJECT: Ordinance 2003-14, conforming the language in various service area codes relating to mill levy establishment

At its March 11, 2003 meeting, the assembly enacted Ordinance 2003-03 establishing the Lowell Point Emergency Service Area, and placed a proposition on the ballot for its formation. At that meeting an amendment was made to the proposed service area code to clarify that the assembly establishes the mill levy during the budgetary process and that a vote of the people is not required in order to increase the mill levy. Four other service areas also contain language requiring a popular vote prior to increasing a service area mill levy. These service areas are Kachemak Emergency Service Area, Central Emergency Service Area, Central Peninsula Emergency Medical Service Area, and Nikiski Senior Service Area. The remaining service area codes are silent on the issue of mill levy caps. At the March 11, 2003 meeting the assembly discussed conforming the service area codes so that they are consistent and not misleading to the public regarding the process for increasing the mill levy. The attached ordinance makes the language in the four service area codes that contain mill cap language consistent with the current status of the law on the issue.

The public hearing is being scheduled for May 20 in order for the affected service areas to have an opportunity to review the ordinance.