MEMORANDUM

KENAI PENINSULA BOROUGH

FINANCE DEPARTMENT

TO: Pete Sprague, Assembly President

Members of the Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Mayor

FROM: Scott Holt, Finance Director

DATE: October 11, 2004

SUBJECT: Assembly Ordinance 2004-31 Char Subdivision Utility Special Assessment District

The Kenai Peninsula Borough applies interest to special assessment projects at a rate equal to the prime rate plus two percent (2%) on the date of passage of the Ordinance of Assessment.

The prime rate effective October 11, 2004 is 4.75%. Therefore, Ordinance 2004-31, Section 4 needs to be amended to read 6.75% (Prime Rate (4.75%) plus (2%) equals 6.75%).