MEMORANDUM

TO: Timothy Navarre, Assembly President

Members, Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Mayor

FROM: Jeffrey Sinz, Finance Director

DATE: September 26, 2002

SUBJECT: Shared Fisheries Business Tax Program

(AS 29.60.450)

In order for the Kenai Peninsula Borough to participate in the FY03 Shared Fisheries Business Tax Program, the Borough Assembly must submit resolutions indicating the adoption of an alternative method for allocation of the FY03 available funding. If the municipalities within each fisheries management area choose not to select the alternative method, it would then become necessary to gather and submit data on actual cost impacts of commercial fishing within each designated area. Given the relatively small amount of funds available, this approach would not be cost effective. Resolutions adopting the alternative method are attached for your approval.

The Kenai Peninsula Borough is located in the Cook Inlet Fisheries Management Area. The municipalities located in this area include Anchorage, Homer, Kenai, Kenai Peninsula Borough, Kachemak, Seldovia, Seward, and Soldotna. The FY03 program total allocation to be shared within this area is approximately $44,089. The Kenai Peninsula Borough's share will be approximately $6,298.43.

The Kenai Peninsula Borough is also located in the Prince William Sound Fisheries Management Area. The municipalities located in this area include Cordova, Kenai Peninsula Borough, Valdez, and Whittier. The FY03 program allocation to be shared within this area is approximately $97,817. The Kenai Peninsula Borough's share will be approximately $24,454.25.