MEMORANDUM

TO: Members, Kenai Peninsula Borough Assembly

FROM: William R. Popp, Assembly President

DATE: February 15, 2000

SUBJECT: Proposed Amendments to KPB Ordinance 2000-09

KPB Ordinance 2000-09 is scheduled for introduction in today's assembly meeting. As the road service area ("RSA") is facing a budget shortfall due to the recent weather conditions, I intend to support introduction of this ordinance. The RSA Board recently passed RSA resolution 2000-04 requesting a supplemental appropriation of $400,000, a copy of which is being provided to you.

However, as written, ordinance 2000-09 would transfer funds from the federal payments in lieu of taxes ("PILT") in the general fund and appropriate them to the road service area fund. The RSA still has a fund balance of at least $464,000. This memorandum is to notify you and the public that on February 29, 2000 I intend to propose the following amendments to this ordinance, which would transfer the $400,000 from the RSA fund balance instead of the general fund. I believe these existing service area funds should be used before the borough taps PILT funds for service area purposes.

Amend the title as follows:

AN ORDINANCE APPROPRIATING $400,000 FROM

THE ROAD SERVICE AREA FUND BALANCE

FEDERAL PAYMENTS IN LIEU OF TAXES

FOR THE ROAD SERVICE AREA

Delete the second and third "Whereas" clauses and substitute the following underlined language:

WHEREAS, snowfall this year has resulted in expenditures beyond the amount budgeted for snow removal in the FY-2000 budget, and the road service area has a fund balance of approximately $464,000; and

Amend Section 1 as follows:

SECTION 1. The sum of $400,000 shall be transferred from the general fund the road service area fund balance and appropriated to the road service area road maintenance account No. 236.33950.00000.46910 to provide supplemental funding for essential road maintenance services.