PROPOSITION SUMMARY

Do you approve the exercise of powers necessary to provide fire protection and emergency medical services within the Lowell Point Emergency Service Area established by Kenai Peninsula Borough Ordinance 2003-03?

YES [A Yes vote authorizes the Borough to exercise fire and emergency service powers within the service area. Taxes will be assessed against properties located within the service area to cover costs. It is the intent of the Assembly at this time to limit this tax levy to 1.75 mills. The actual tax rate will be set by the Assembly during the budgetary process each year.]

NO [A No vote prohibits the exercise of fire and emergency service powers within the service area.]

At its annual meeting in July 2002, the Lowell Point Community Council voted unanimously to request the formation of a borough service area to provide fire services to the Lowell Point Community. Based on this request, the Borough Mayor conducted a study of the need for the service, the assessed value of the area and the estimated cost of the service area. In his report to the Assembly on November 19, 2002, Mayor Bagley recommended that the Assembly move forward with a public hearing and an election to determine if the service area should be formed.

On January 11, 2003, a public hearing was conducted in Seward. Everyone who testified at the hearing spoke in support of the proposed service area. As a result, Ordinance 2003-03, establishing the Lowell Point Emergency Service Area and providing for an elected board, was introduced at the February 4, 2003 Assembly meeting. Following public hearing, the Assembly enacted the ordinance on March 11, 2003.

The Community Council originally requested a tax cap of 1 mill to provide fire services to the service area. It was determined that 1 mill of property tax would not raise sufficient funds to cover the insurance and administrative costs of the service area. Therefore, the ordinance provides that the mill levy will be capped at 1.75 mills unless an increase is approved (by the assembly) during the budgetary process.

A yes vote on this proposition indicates your approval of the proposal to provide fire and emergency services in your area. A no vote on this proposition indicates your opposition to the Borough providing fire and emergency services in your area.

If a majority of those voting on this proposition vote YES, the proposition will be approved and a 5-member board will be appointed to oversee operations of the service area for terms to expire in October 2005. Appointments will be made by the Mayor and confirmed by the Assembly. Board seats filled at the October 2005 election will be for staggered terms. Thereafter, members of the service area board will be elected for 3-year terms.