Memorandum

TO: Pete Sprague, Assembly President

Members, Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Borough Mayor

FROM: Scott Holt, Finance Director

DATE: June 24, 2004

SUBJECT: Ordinance 2004-24, Providing for Submission to the Qualified Voters of the Nikiski Fire Service Area the question of authorizing the issuance of General Obligation Bonds in an amount not to exceed one million nine hundred ninety-five thousand dollars ($1,995,000) to pay the costs of a new station, at a Regular Election in and for the Nikiski Fire Service Area on October 5, 2004

The attached ordinance, if approved, would ask voters within the Nikiski Fire Service Area to consider authorizing the issuance of up to $1,995,000 in general obligation bonds to fund the construction of a new station to be located in the Holt Lamplight area. The capital improvement project has evolved over a period of several years. Service Area representatives will be in attendance at the July 6th meeting to provide an overview of the project.

The Service Area has requested that the issue be put before service area voters. The issuance of $1,995,000 of general obligation bonds will impact the annual tax levy by approximately $13 per $100,000 of assessed taxable property value (based on the estimated total 2004 assessed valuation, a 5.10% average rate of interest, and a 20-year payback period).

In light of the revised assessed values provided by the assessor's office, the Nikiski Fire Service will be having a special meeting in July to review the soundness of this project.