MEMORANDUM

Members, Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Mayor

FROM: Craig Chapman, Acting Finance Director

DATE: August 21, 2003

SUBJECT: Ordinance 2003-19-17, Appropriating $10,500,000 in South Kenai Peninsula Service Area General Obligation Bond Proceeds and $6,500,000 in net revenues generated through hospital operations for the South Peninsula Hospital capital improvement project

The attached ordinance appropriates $10,500,000 in service area general obligation bond proceeds and $6,500,000 in net revenue generated through hospital operation to the service area's capital project fund for costs associated with capital improvements related to the South Peninsula Hospital.

As provided in Resolution 2003-086, the bonds are expected to be sold through the Alaska Municipal Bond Bank in mid-September. The results of the sale will be reported at the October 14th assembly meeting when this ordinance is scheduled for public hearing and assembly action