MEMORANDUM

TO: Pete Sprague, Assembly President

Members of the Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Borough Mayor

Jeff Sinz, Finance Director

FROM: Bonnie L. Golden, Grants Manager

COPY: Aud Walaszek, KPTMC Executive Director

DATE: April 3, 2003

SUBJECT: Resolution transferring $17,500 in available funds to KPTMC for Milepost advertisement

Last fall the Kenai Peninsula Tourism Marketing Council (KPTMC) approached the Borough with an opportunity to obtain advertising in the 2003 Milepost, a highly used Alaska travel guide. The advertisement would consist of a pull-out map, one of the features that makes the Milepost popular. This opportunity very rarely becomes available. Through adoption of Resolution 2002-118, the Assembly approved the transfer of $17,500 for purchase of advertising in the 2003 Milepost.

It was the intent of KPTMC to purchase this same pull-out map for the 2004 Milepost. However, because of increased competition for the advertising space and because the Milepost is requiring an earlier commitment date, this space must be reserved by May 2003. KPTMC does not have sufficient funds in its current budget to commit for the 2004 publication. Therefore, additional funds are needed to retain this highly sought advertising space.

The FY2003 approved budget includes $110,000 for a state and federal lobbyist. A state lobbyist has not been hired for the current legislative session, nor are there plans to do so. The administration is requesting that a portion of these unused funds, $17,500, be transferred within the general fund non-department account from contract services (lobbyist) to peninsula promotions (KPTMC). Authorization of the transfer would allow the Borough, through KPTMC, to reserve the advertising space in the 2004 Milepost. A small portion of the funds would be used to slightly modify the current map and print extra copies. Modifications would include items such as adding a notation regarding the 2006 Arctic Winter Games. The map currently includes information on the Kenai Wild program. KPTMC intends to reserve and pay for the 2005 Milepost advertisement from its FY2003/2004 budget.