Do you approve the exercise of powers necessary to provide trails services within the Kenai Peninsula Borough Trails Service Area established by Kenai Peninsula Borough Ordinance 2003-22? It is expected that services provided by this service area would be funded by property taxes.

YES [A Yes vote establishes the service area and authorizes the exercise of trails powers to accept, manage, construct and maintain trails located within the service area.]

NO [A No vote will result in no change to powers and authorities currently held by the borough.]

Since 1998, public interest in trails appears to have increased as evidenced by the expansion of a number of existing trails operated by both private and public organizations. Given this apparent increased interest in trails, the assembly agreed that it was appropriate to once again ask the voters if they wished to authorize the exercise of trails powers.

Ordinance 2003-22, adopted by the assembly on August 5, 2003, established the Kenai Peninsula Borough Trails Service Area. This service area comprises all of the land in the borough lying outside of the six incorporated cities. If approved by the voters, the seven-member service area board would be appointed by the mayor and confirmed by the assembly. The board would consist of at least one member from each of the four regions (northern, central, eastern and southern) defined in the Road Service Area rules and regulations plus an additional three members selected at large. This board of directors would oversee the acceptance, improvement, management, construction and maintenance of public trails within the service area; award grants for trails purposes subject to the appropriation and availability of funds; and coordinate with other local trails associations, commissions, government agencies and the North Peninsula Recreation Service Area Board regarding trails planning and development and to assure that services are not duplicated.

If approved by the voters, these trails services will be funded by property taxes levied within the service area. It is anticipated that the mill levy for these services will not exceed 0.1 mills, or $10 for each $100,000 of assessed property value. The actual mill rate would be set annually by the assembly during the regular budgetary process.

Shall the Kenai Peninsula Borough incur indebtedness and issue up to $49,900,000 of bonds for capital improvements related to the Central Peninsula General Hospital?

The bond proceeds of $49,900,000 will be used to pay the costs of planning, designing, acquiring property for, site preparation, constructing, acquiring, renovating, installing and equipping the Central Peninsula General Hospital located within the Central Kenai Peninsula Hospital Service Area.

The indebtedness will be repaid from ad valorem taxes levied on all taxable property located within the Central Kenai Peninsula Hospital Service Area. The Central Kenai Peninsula Hospital Service Area will pledge its full faith and credit for repayment of the indebtedness; however, it is expected that a portion of the indebtedness may be repaid from revenues generated by the Central Peninsula Hospital.

Voter approval for this proposition authorizes an annual tax on real and personal property in the Central Kenai Peninsula Hospital Service Area in an amount sufficient to pay principal and interest on the proposed indebtedness when and as due. Based on the revenues that the Central Kenai Peninsula Hospital Service Area expects to receive from the Central Peninsula General Hospital, the amount of the annual tax would be approximately $50 for each $100,000 of assessed real and personal property in the Central Kenai Peninsula Hospital Service Area (based on the estimated 2003 tax year assessed valuation). Without those revenues, the amount of the annual tax would be approximately $121 for each $100,000 of taxable assessed value.

(Ordinance 2003-27)

YES [A Yes vote approves the sale of the bonds and construction of the hospital improvements.]

NO [A No vote prohibits the issuance of the bonds and construction of the hospital improvements.]

Following completion of a facility master plan, the service area funded a programmatic study and schematic design for a facility expansion project. This study confirmed that facility improvements were needed to keep pace with the growing and maturing population. The final design, approved by CPGH Inc. and endorsed by the service area board, calls for renovation of approximately 46% of the existing building, plus the construction of an additional 74,000 sf of new space. This expansion will increase both inpatient and outpatient services and will add new services currently unavailable in the community.

Based on expected revenues from hospital operations, it is anticipated that issuance of the bonds will result in a tax increase of 0.5 mills. This equates to an annual tax increase of $50 per $100,000 of assessed value. If these revenues are not forthcoming, the amount of the annual tax increase would be 1.21 mills, or $121 for each $100,000 of assessed value.

Shall the Kenai Peninsula Borough be authorized to exercise powers to provide flood planning, protection and mitigation services in the Kenai Peninsula Borough Seward-Bear Creek Flood Service Area within the service area boundaries defined in Ordinance 2003-30?

YES [A Yes vote establishes the service area and authorizes the exercise of flood planning, protection and mitigation powers within the service area.]

NO [A No vote opposes formation of the service area and the exercise of flood planning, protection and mitigation powers.]

On March 21, 2003, the borough clerk certified a petition to establish the Seward-Bear Creek Flood Service Area to provide flood protection, response, and recovery services. On June 16, the assembly conducted a public hearing in Seward to receive comments from area residents regarding the need for the service area. Seventeen people testified at the hearing, and all were in favor of forming the service area.

Subsequently, the assembly adopted Ordinance 2003-30, establishing the Seward-Bear Creek Flood Service Area. (See map on opposite page for service area boundaries.) The ordinance provides for a seven-member elected service area board consisting of four residents of the City of Seward and three residents of the area outside the Seward city limits. If approved by the voters, the first board will be appointed by the mayor and confirmed by the assembly for one year terms. In October 2004, all board seats will be placed on the regular election ballot for election by residents of the service area.

The board will be responsible for developing, implementing and updating a development plan for furnishing flood protection services and for determining the level of such services to be provided by the service area. The services are intended to primarily address service area flood issues and reflect fair use of the tax levy for watershed-wide benefit.

Since this proposed service area includes areas both inside and outside an incorporated city, it must be approved by majority vote within the City of Seward and within the Bear Creek voter precinct. If the proposition fails in either area, the service area will not be formed.

It is anticipated that the tax levy for this service area will not exceed 0.5 mills, or $50 for each $100,000 of assessed property value. The actual mill rate will be set by the assembly each year during the regular budgetary process.