MEMORANDUM

TO: Pete Sprague, Assembly President

Members, Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Mayor

FROM: Jack Brown, Community and Economic Development Division

Colette Thompson, Borough Attorney

DATE: May 22, 2003

SUBJECT: Ordinance 2003-024, Arctic Winter Games approval.

As required by Resolution 2003-044, this ordinance offers for assembly approval the proposed budget for borough funds by the Kenai Peninsula Arctic Winter Games Host Society. Borough funds of $200,000 are included in the annual budget submitted in Ordinance 2003-19. In the event that the assembly does not approve that amount, the administration will request that this ordinance be modified accordingly.

The proposed budget is estimated based upon expected expenditures. The personnel budget is intended to include funds to pay the salary, withholding, and benefits for a general manager for six months and an administrative assistant for eleven months. The transportation and subsistence amount is an estimate of the costs to be incurred for traveling to Washington D.C., Juneau, Anchorage, and other areas for fund raising purposes. It also includes travel to Wood Buffalo to attend the 2004 Arctic Winter Games. The advertising expense listed is for advertising in the Milepost and other publications. The advertising is not expected to be published until the following fiscal year, but significant lead time is frequently required to purchase such advertising. The rent and operating lease funds are expected to be used for renting a copier. Office machines to be acquired will include at least one computer and printer, a fax machine, and other required office machines. As this is an estimated budget, a contingency of $8,850 is requested to cover any additional unexpected costs.

Also, this ordinance specifies that the borough is authorized to support this project through its economic development powers, the exercise of land management powers, and through the exercise of other borough authority. It clarifies that KPB Chapter 19.30 does not apply: that chapter was intended to govern external proposals submitted to the borough for economic development projects. This project was initiated by the borough. It is expected to provide economic development in the form of community promotion for tourism and many other potential business opportunities, capital investment in the community, dollars spent before and during the games by visitors, the creation of temporary jobs, and in numerous other direct and indirect ways. Alaska Statute 29.35.210 authorizes the borough to provide for economic development on a nonareawide basis. In order for the cities to be directly involved, agreements will have to be negotiated with the cities.

Your support of this ordinance would be appreciated.