KENAI PENINSULA BOROUGH

FINANCE DEPARTMENT

MEMORANDUM

TO: Pete Sprague, Assembly President

Kenai Peninsula Borough Assembly Members

THRU: Dale Bagley, Mayor

FROM: Scott Holt, Director of Finance

DATE: April 22, 2004

SUBJECT: Resolution 2003-047, Determining The Amount To Be Provided From

Local Sources For School Purposes During Fiscal Year 2004-2005

The attached resolution establishes the amount from local sources that will be provided to fund the FY 2005 school district budget. The amount of $32,635,743 is the maximum local share allowable under AS 14.17.410, as calculated by the school district administration. The FY 2005 local share represents an increase of $1,535,278, or 4.9 percent, compared to the amount provided in FY 2004. 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 assembly on April 6, 2004. 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 4, 2004 assembly meeting.