MEMORANDUM

TO: William Popp, Assembly President

Members, Kenai Peninsula Borough Assembly

FROM: Paul Fischer, Assembly Member

DATE: February 3, 2000

SUBJECT: Ordinance 2000-09, supplemental appropriation of $400,000 for the road service area

The accompanying ordinance provides supplemental funding for the road service area from the federal government's payments in lieu of taxes ("PILT" funds). Such funds are available for any governmental purpose. See 31 USC Section 6902(a)(1). I am proposing this for the assembly's consideration at this time because I believe that road maintenance is an extremely high priority for the borough. Also, I have heard numerous complaints from citizens that their borough road maintenance requests are not adequately being addressed due to budgetary shortfalls. This proposal is not intended to replace the proposal discussed by Mayor Bagley which would increase the road service area mill levy and offset that increase with a general fund mill levy decrease.

It is also my intention that this type of supplemental appropriation continue on an annual basis much the same as the assembly appropriates funds for the Economic Development District, Inc., the Kenai Peninsula Tourism and Marketing Council, and will do for dog control. Although an annual appropriation is not guaranteed, and the source of funds is not guaranteed, I believe it is appropriate to provide this supplemental funding for this important service at this time.

Shortened hearing is requested because the service area is expected to need these funds before March 21, 2000, which is the next meeting at which this ordinance would be heard.