Kenai Peninsula Borough leaders introduced an ordinance to appropriate $31,340 to send two mailings to holders of the current $50,000 residential real property tax exemption, which borough officials said expires Dec. 31.

The ordinance, presented during the Finance Committee meeting, would fund two different letters to previous exemption holders and cover implementation costs for the new $75,000 exemption. Mayor Michicky said, "The key issue is that the $50,000 exemption doesn't exist after December 31." Adena Wilcox of the assessing department said, "This ordinance appropriate $31,340, to allow the assessing department to mail, 2 different mailing letters out to all of the previous $50,000 exemption holders."

Officials said the mailings are intended to direct current recipients to reapply for the new $75,000 exemption and to allow the assessing department to perform audits required periodically by the state. Wilcox told the committee the audit is part of the state-required process and that when the $50,000 exemption was implemented an audit likely was not performed at that time. She said funds would also cover additional envelopes and overtime or temporary staff in the assessing department needed to implement the new exemption.

The measure was listed as eligible for the consent agenda. Committee members asked no substantive follow-up questions during the introduction.

If approved at subsequent steps, the assessing department will mail the notices and begin reapplication and audit work for affected property owners. The ordinance was introduced; a public hearing and final action will follow the borough's standard process.