MEMORANDUM

TO: Pete Sprague, Assembly President

Members, Kenai Peninsula Borough Assembly

FROM: Ron Long, Assembly Member

DATE: January 8, 2004

SUBJECT: Ordinance 2003-19-34, authorizing a $50,000 intergovernmental loan and appropriating funds to the Seward-Bear Creek Flood Service Area

The Seward-Bear Creek Flood Service Area was approved by the voters October 7, 2003, which was after adoption of FY2004 budget. This ordinance would authorized a $50,000 intergovernmental loan from the general fund to the Seward-Bear Creek Flood Service Area to provide start-up costs and initial funding for preliminary studies to be used in preparing the development plan. It is anticipated that the annual revenue from property taxes will be approximately $120,000, which should provide adequate funding for the service area to repay the loan in full on or before November 30, 2004. Interest will only accrue on the amount actually borrowed by the service area and not repaid. Your support of this ordinance would be appreciated.