MEMORANDUM

To: William Popp, Assembly President

Members, Kenai Borough Assembly

Thru: Dale Bagley, Mayor

From: Jeffrey Sinz, Finance Director

Date: February 17, 2000

Subject: Anchor Point Fire and Emergency Medical Services Supplemental Appropriation

The Anchor Point Fire and Emergency Medical Service Area is experiencing unexpected high maintenance bills on their ambulance beyond the amount budgeted. The current ambulance is undependable and places the care of patients at risk. The Service Area has been transferring funds from other budget accounts to pay for higher than expected maintenance cost.

Funding for a new ambulance is currently budgeted in the FY2001 Capital Project Fund. The Anchor Point Fire and Emergency Medical Service Area is requesting that the purchase be accelerated to the current year, FY2000. The projected cost of the ambulance is $120,000. They are proposing that $55,000 be appropriated from the service area's operating fund balance and that the remainder be reappropriated from previously appropriated projects.

The Anchor Point Fire and Emergency Medical Service Area sponsoring physician, Dr., Paul Raymond, MD has also requested that the service area upgrade their heart monitor machines. The portion of the supplemental appropriation going to the operating budget would provide the necessary funding for this purchase.

It should also be noted that the service area is spending more money than they are currently taking in. We anticipate that with approval of this appropriation, the assembly can expect the need for a mill rate increase for this service area within the next two years.