KENAI PENINSULA BOROUGH

FINANCE DEPARTMENT

MEMORANDUM

TO: Pete Sprague, Assembly President

Kenai Peninsula Borough Assembly Members

THRU: Dale Bagley, Mayor

FROM: Jeffrey Sinz, Director of Finance

DATE: April 24, 2003

SUBJECT: Resolution 2003-049, Determining The Amount To Be Provided From

Local Sources For School Purposes During Fiscal Year 2003-2004.

The attached resolution establishes the amount from local sources that will be provided to fund FY 2004 school district budget. The amount of $31,100,465 is the maximum local share allowable under AS 14.17.410, as calculated by the school district administration. The FY 2004 local share represents an increase of $379,863, or 1.2%, compared to the amount to be provided in FY 2003. The local share is increasing even though the projected school district enrollment is decreasing because of increases in the borough's taxable assessed property valuations. In this particular case, the increase in taxable valuations is sufficient to cause a noticeable shift in the financial responsibility for education from the state to the local government.

The assembly is required to determine the amount of funding to be made available from local sources within 30 days of receipt of the school district budget. The school district budget was presented to the borough on April 24, 2003. The assembly may take action on the attached resolution any time within the 30-day time period.

The appropriation of the local school funding, along with the remainder of the borough budget, will be accomplished through a single ordinance scheduled for introduction at the May 6, 2003 assembly meeting.