MEMORANDUM

TO: Timothy Navarre, Assembly President

Members, Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Mayor

Bill Popp, Assembly Member

THRU: Jeff Sinz, Finance Director

FROM: Gary Davis, Roads Director

DATE: April 18, 2001

SUBJECT: Ordinance 2000-19-29, appropriation for road service area (RSA)

As detailed in the attached RSA resolution, severe icing caused a need for extended sanding in the RSA in the winter of 2000-01. The RSA has transferred funds to the extent possible from other line items to cover winter maintenance expenses, but finds a transfer of $200,000 from fund balance is necessary to meet the RSA's obligations before the end of this fiscal year. The increase in the mill levy in FY-01 was dedicated to rebuilding the dwindling RSA fund balance and to provide much needed road improvements. While winter conditions are unpredictable, it is anticipated that more funding will be initially budgeted to the RSA's road maintenance functions in FY-02.