KENAI PENINSULA BOROUGH

FINANCE DEPARTMENT

MEMORANDUM

TO: Gary Superman, Assembly President

Kenai Peninsula Borough Assembly Members

THRU: Dale Bagley, Mayor

FROM: Scott Holt, Director of Finance

DATE: April 7, 2005

SUBJECT: Resolution 2005-036, Determining The Amount To Be Provided From

Local Sources For School Purposes During Fiscal Year 2005-2006

The attached resolution establishes the amount from local sources that will be provided to fund the FY 2006 school district budget. The amount of $35,054,596 is the maximum local share allowable under AS 14.17.410, as calculated by the school district administration. The FY 2006 local share represents an increase of $1,632,821, or 4.9%, compared to the amount to be provided in FY 2005. The local share is increasing due to a slight increase in the projected school district enrollment and 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 7, 2005. The assembly may take action on the attached resolution anytime 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 April 19, 2005 assembly meeting.