Proposition No. 2

CENTRAL EMERGENCY SERVICE AREA BONDS

To be voted on by voters residing in the Central Emergency Service Area

Shall the Kenai Peninsula Borough incur indebtedness and issue up to $2,500,000 of bonds for the costs of planning, acquisition, designing, constructing, equipping and financing a fire station in Kasilof and renovating the fire station in the Funny River area, all within the Central Emergency Service Area?

The indebtedness will be repaid from ad valorem taxes levied on all taxable property located within the Central Emergency Service Area. The Central Emergency Service Area will pledge its full faith and credit for repayment of the indebtedness.

Voter approval for this proposition authorizes for each $100,000 of assessed real and personal property value in the Central Emergency Service Area (based on the estimated 2005 tax year assessed valuation) an annual tax of approximately $15 to retire the proposed indebtedness. [KPB Ordinance 2005-28(Sub)]

YES [A Yes vote approves the sale of the bonds and construction of a fire station in Kasilof and renovations at the Funny River Fire Station.]

NO [A No vote prohibits the issuance of the bonds and construction/renovation.]

PROPOSITION SUMMARY:

In 2004, voters approved to expand fire protection and emergency medical services through the expansion of the Kenai Peninsula Borough Central Emergency Service Area into the Funny River and Kasilof/Cohoe/Clam Gulch areas.

A new fire station in Kasilof would reduce local response times for fire and other emergencies. Renovations to the existing Funny River Fire Station would include facilities for staffing the station, thereby reducing local response times.

The Central Emergency Service Area Board unanimously supports the construction of a new station in Kasilof and upgrading the existing facilities at the Funny River station. The Central Emergency Service Area has the responsibility to provide prompt and responsive fire and other emergency services to all its constituents.