MEMORANDUM

TO:                 Ron Long, Assembly President

Kenai Peninsula Borough Assembly Members

THRU:           John J. Williams, Mayor

FROM:          Craig Chapman, Finance Director

DATE:            September 27, 2006

SUBJECT:     Ordinance 2006-19-26, an ordinance appropriating interest income from the 2003 Solid Waste Bonds.

Kenai Peninsula Borough Ordinance 2003-19-01 appropriated $7,040,000 in bond proceeds for the Central Peninsula Landfill Expansion Project to pay the cost of planning, designing, site preparation, constructing and equipping a regional solid waste facility located near Soldotna. This project is substantially complete. The solid waste department has identified the need to purchase a loader and additions to the compacter, which are estimated to cost $100,000, and the need for additional construction work estimated to cost $60,000 at the new cell. Unappropriated interest of approximately $160,000 from the 2003 bonds is available to fund the purchase of equipment and additional construction expenditures needed at the landfill. The administration is requesting that the unappropriated interest be appropriated to fund these items.