MEMORANDUM

TO: Pete Sprague, Assembly President

Members, Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Borough Mayor

FROM: Jeffrey Sinz, Finance Director

DATE: June 5, 2003

SUBJECT: Ordinance 2003-27, Providing for Submission to the Qualified Voters of the Central Kenai Peninsula Hospital Service Area the Question of Authorizing the Issuance of General Obligation Bonds in an Amount Not to Exceed Forty Nine Million Nine Hundred Thousand Dollars ($49,900,000) to Pay the Costs of Hospital Capital Improvements, at a Regular Election in and for the Central Kenai Peninsula Hospital Service Area on October 7, 2003

The attached ordinance, if approved, would ask voters within the Central Kenai Peninsula Hospital Service Area to consider authorizing the issuance of up to $49,900,000 in general obligation bonds to fund the expansion and improvement of the Central Peninsula General Hospital. CPGH, Inc. in conjunction with the service area board has been working for several years on the development of a long-term facilities master plan including programmatic design. This ordinance if approved would allow service area voters to decide if the plan should become a reality.

Representatives of the Service Area Board and CPGH, Inc. will be providing the assembly with information about the project at the July 17^th assembly meeting. If the assembly enacts the ordinance, CPGH, Inc. and the Service Area Board will conduct an extensive public informational campaign between enactment and the October general election. This effort will be intended to provide service area voters access to information necessary to make an informed decision regarding this very significant and important service area project.