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 2006-19-28, an ordinance appropriating interest income from the bonds issued for school projects in 2000

Kenai Peninsula Borough Ordinance 2000-19-17 appropriated $7,429,000 in bond proceeds to pay the cost of numerous capital improvement projects. The majority of these projects were completed in FY2003 leaving unexpended funds that were available for appropriation. In FY2003, Ordinance 2002-19-38 appropriated $1,487,299 of unexpended proceeds along with $403,175 of unappropriated interest proceeds. These funds were used to complete five capital projects authorized by Resolution 2003-34.

All projects have now been completed. Currently, there remains $117,500 in unappropriated interest income. The administration requests that these funds be appropriated to cover expenditures associated with the school water quality/arsenic removal program that were incurred prior to June 1, 2006.