MEMORANDUM

TO: Pete Sprague, Assembly President

Members, Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Mayor

FROM: Scott Holt, Finance Director

DATE: March 25, 2004

SUBJECT: Ordinance 2003-19-43, Appropriating $293,091.15 in South Peninsula Hospital Service Area Fund Balance for interest payment on the South Peninsula Hospital Service Area General Obligation Bonds.

The attached ordinance appropriates $293,091.15 in service area fund balance for interest payment on the service area general obligation bonds associated with the capital improvement project at South Peninsula Hospital. These bonds, which were authorized by the voters of the service area on July 1, 2003, were sold September 30, 2003. The first interest payment is due June 1, 2004.

Because the bonds were authorized after the start of the fiscal year, no provision was made in the FY04 budget for this payment. Subsequent debt requirements will be included as part of the operating budgets.