MEMORANDUM

TO:                     Ron Long, Assembly President

                        Members, Kenai Peninsula Borough Assembly

THRU:           John J. Williams, Mayor

FROM:          Craig Chapman, Finance Director

                        Shane Horan, Director of Assessing

DATE:           June 7, 2006

SUBJECT:    Resolution 2006-061 transferring funds between departments to cover costs in excess of budgeted amounts

The assessing department is currently meeting with Tesoro regarding pending appeals of their assessed property values. These meetings are taking place in Dallas, Texas and are being attended by borough personnel and professional firms representing the Borough. It is estimated that the Borough will incur $20,000 representing the Borough’s interest. These costs have not been budgeted. The administration has identified funds in the planning department that will not be spent in FY2006 and are available for redirection. The requested transfer would move $20,000 from account 100.21110.00000.43011 (contract services), and increase 100.11510.00000.43011(contract services) by $10,000 and increase 100.11510.00000.43210 (travel) by $10,000.

The mayor’s department incurred costs associated with its transition team totaling approximately $10,000 and travel costs of $5,000 in excess of budgeted amounts. The administration has identified funds in the community and economic division that will not be spent in FY2006 and are available for redirection to cover these costs. The requested transfer would move $5,000 from account 100.11225.00000.43011 (contract services) and $10,000 from account 100.11225.00000.40110 (wages); and increase 100.11210.00000.40120 (temp wages) by $10,000 and increase 100.11210.00000.43210 (travel) by $5,000.

Assembly approval of these transfers is respectfully requested.