MEMORANDUM

TO:                     Ron Long, Assembly President

                        Members, Kenai Peninsula Borough Assembly

THRU:           John J. Williams, Mayor

FROM:          Craig Chapman, Finance Director

DATE:           May 3, 2006

SUBJECT:    Resolution 2006-049 setting the rate of levy for Tax Year 2006, which will be used to fund Fiscal Year 2007

The attached resolution establishes the property tax rates for Tax Year 2006. The tax revenue generated from these rates will provide the largest single source of funding for the borough's Fiscal Year 2007 budget.

The administration proposes the following changes from the 2005 tax year levels:

                                                                                       2005                Proposed 2006

Borough                                                                         6.50                          6.70

Nikiski Fire Service Area                                              2.30                          2.80

All other tax rates are proposed to remain the same.