MEMORANDUM

To: Timothy Navarre, Assembly President

Kenai Peninsula Borough Assembly Members

Thru: Dale Bagley, Borough Mayor

From: Bonnie Golden, Grants Manager

Gary Davis, Roads Director

Date: September 5, 2002

Subject: Resolution approving capital projects for funding under the State's fiscal year 2003-2004 municipal capital matching grant program.

In 1993 the legislature established the Municipal Capital Project Matching Grant Program, governed by the provisions of AS 37.06. According to AS 37.06.010(d), applications for grants under this program must be submitted no later than October 1 of each year. The Borough has participated in this program since its inception. Each year we have requested funding for road improvements.

The attached resolution approves the capital project to be submitted to the state for funding under the FY 2004 matching grant program. As in the past, the only project on the application is our road improvement program. The Road Service Area Board is scheduled to meet on September 10^th to discuss the grant application and approve a list of roads for funding. A copy of the approved list will be provided to the Assembly at their meeting on September 17^th. Upon Assembly approval, the application will be submitted to the Department of Community and Economic Development.

The level of funding for the program is determined during the legislative session, but is expected to remain at the same level as the past few years - approximately $496,000. The required 30% matching portion will be provided from Road Service Area funds. The road list includes more projects than can be funded under the State's program. Requesting more than the anticipated amount provides the Road Service Area flexibility in completing their projects. If for some reason a project cannot be initiated or completed as originally anticipated, road crews can immediately proceed to the next project on the list. Projects will be completed in priority order until grant funds are depleted. Remaining projects will be kept on the Road Service Area's list of projects and completed when funding is available.

/bg

Attachments (Resolution, Grant Application)