MEMORANDUM

TO: Pete Sprague, Assembly President

Members, Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Mayor

FROM: Scott Holt, Finance Director

DATE: May 20, 2004

SUBJECT: Resolution 2004-055 setting the rate of levy for tax year 2004

The attached resolution establishes the property tax rates for tax year 2004. The tax revenue generated from these rates will provide the largest single source of funding for the borough's FY2005 budget.

The administration is proposing the following changes from the 2003 tax year levels:

2003 Proposed 2004

Kenai Peninsula Borough 6.50 6.80

Central Emergency Services 2.60 2.35

Road Service Area 1.50 1.40

Central Kenai Peninsula Hospital Service Area 0.50 1.00

Lowell Point Emergency Service Area (new) 0.00 1.75

Seward-Bear Creek Flood Service Area (new) 0.00 0.50

All other tax rates are proposed to remain the same.