JOHN J. WILLIAMS

          MAYOR

TO:                 Ron Long, Assembly President

                        Kenai Peninsula Borough Assembly Members

FROM:          Craig Chapman, Finance Director

DATE:           October 12, 2006

SUBJECT:    Ordinance 2006-19-33, an ordinance providing for a supplemental appropriation from the Nikiski Senior Service Area in the amount of $30,200 to provide additional funding for the operations of the Nikiski Senior Center

When the Nikiski Senior Service Area (NSSA) board prepared the service area FY2007 budget, $30,200 was inadvertently left out of its operating budget, which is an amount equal to the funding provided by the Borough for operations of the senior citizen grant program.

The Nikiski Senior Citizens, Inc, (NSC) a private nonprofit corporation, provides services and programs for the NSSA through a service and operating agreement, and had prepared its FY2007 operating budget with the assumption these funds would be provided.

Without this funding, NSC will have to cut programs and services. At its September 12, 2006, meeting, the Nikiski Senior Service Area board authorized the use of fund balance to increase the funding amount provided to NSC for operations of the Nikiski Senior Center.