8.4 Issue T-Notes
City Of Salina
Request for Commission Action
Date
7/10/2000
Time
4:00 PM
8
ORIGINATING DEPARTMENT: APPROVED
FOR AGENDA
AGENDA SECTION:
FINANCE
ITEM NO.:
4
BY: Rodney Franz
~
Item: Resolution # 00-5618 authorizing and directing the issuance, sale and delivery of
$800,000 principal amount of General Obligation Temporary Notes, Series 2000-3 of the
City of Salina, Kansas, providing funds to pay the cost of making certain street, drainage,
subdivision, and other improvements in the City, and prescribing the form and details of
said notes.
Background: This action authorizes the sale of temporary notes to finance the
development of East Bank Estates, Twin Oaks, and Woodland Hills subdivisions, and to
re-finance the South 9th Street Water and Sewer Improvements. The total amount of notes
to be issued is $800,000, with maturity of August 1,2001, at which time they will be rolled
into long term financing.
We will be receiving and opening bids on Monday, July 10 and will have a report at the
meeting.
Recommendation:
A. Accept low bid for Temporary Note 2000-3
B. Adopt resolution #00-5618.
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PRELIMINARY OFFICIAL STATEMENT DATED JUl'\r:E 19, 2000
In the opinion of Gilmore & Bell, P.e., Kansas City, Missouri, Bond Counsel, under existing law and assuming continued compliance with certain
requirements of the Internal Revenue Code of 1986, as amended, the interest on the Notes and Bonds (including any original issue discount properly
allocable to an owner thereof) is excluded from gross income for federal income tax purposes, and is not an item of tax preference for purposes of the
federal alternative minimum tax imposed on individuals and corporations. The interest on the Notes and Bonds is exemptfrom Kansas income taxation.
The Notes and Bonds are "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended.
See TAX MATTERS herein.
New Issue
Book-Entry Only
Bank Qualified
Moody's Rating-
"Applied For"
$800,000
CITY OF SALINA, KANSAS
GENERAL OBLIGATION TEMPORARY NOTES
SERIES 2000-3
Dated: July 15,2000
Due: As Shown Herein
The Series 2000-3 Notes (the "Notes") will be issued as fully registered notes in the denomination of $5,000 or any integral multiple thereof. The
Notes shall be initially registered in the name of Cede & Co., as nominee of The Depository Trust Company ("DTC"), New York, New York, to which
payment of principal and interest will be made. Individual purchases of Notes will be made in book-entry form. Purchasers will not receive certificates
representing their interest in the Notes purchased. Interest on the Notes will be payable at maturity. Principal and interest on the Notes will be payable
by check, draft, or wire transfer from the City Treasurer (the "Note Paying Agent"). The Notes are subject to redemption at the option of the City as
further described herein.
MATURITY SCHEDULE (See Inside Front Cover)
The Notes and interest thereon will constitute general obligations of the City, payable in part from special assessments levied upon the property
benefited by the construction of certain improvements, from the proceeds of general obligation notes or bonds, or from both, and ifnot so paid, from ad
valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial
limits of the City. The balance of the Notes is payable from the proceeds of general obligation notes or bonds, and if not so paid, from ad valorem taxes
which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the
City. See THE NOTES - "Security" herein.
BIDS FOR THE PURCHASE OF THE NOTES WILL BE RECEIVED AT: CITY/COUNTY BUILDING, 300 WEST ASH,
ROOM 206, SALINA, KANSAS 67402-0736, ATTENTION: BARBARA WEBER, ACTING CITY CLERK. ON OR BEFORE
1:00 P.M., CENTRAL DAYLIGHT TIME, ON MONDAY, JULY 10,2000.
New Issue
Book-Entry Only
Bank Qualified
Moody's Rating-
Bidder's Option Insurance
"Applied For"
"Applied For"
$3,885,000
(subject to change)
CITY OF SALINA, KANSAS
GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS
SERIES 2000-A
Dated: July 15,2000
Due: As Shown Herein
The Series 2000-A Bonds (the "Bonds") will be issued as fully registered bonds in the denomination of $5,000 or any integral multiple thereof.
The Bonds shall be initially registered in the name of Cede & Co., as nominee of DTC to which payment of principal and interest will be made.
Individual purchases of Bonds will be made in book-entry only form. Purchasers will not receive certificates representing their interest in the Bonds
purchased. Principal on the Bonds will be payable on each October 1 in the years shown herein. Interest on the Bonds will be payable semiannually on
April I and October I of each year until maturity, commencing on April I, 2001. The principal of and interest on the Bonds will be payable by check,
draft, or wire transfer of the Treasurer of the State of Kansas (the "Bond Paying Agent). The Bonds are subject to redemption at the option of the City as
further described herein.
MATURITY SCHEDULE (See Inside Front Cover)
The Bonds constitute general obligations ofthe City, payable as to both principal and interest in part from special assessments levied upon property
benefited by the construction of certain improvements and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or
amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The balance of the Bonds are payable as to both
principal and interest from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and
personal, within the territorial limits of the City. See THE BONDS - "Security" herein.
SEALED BIDS FOR THE PURCHASE OF THE BONDS WILL BE RECEIVED AT: CITY/COUNTY BUILDING, 300 WEST
ASH, ROOM 206, SALINA, KANSAS 67402-0736, ATTENTION: BARBARA WEBER, ACTING CITY CLERK. ON OR
BEFORE 2:00 P.M., CENTRAL DAYLIGHT TIME, ON MONDAY, JULY 10,2000.
The Notes and Bonds are offered when, as and if issued by the City and received by the Successful Bidders subject to the approval of Bond
Counsel. It is expected that the Notes and Bonds will be available for delivery through the facilities of The Depository Trust Company, New York, New
York, on or about July 27, 2000.
TIllS COVER PAGE CONTAINS INFORMATION FOR QUICK REFERENCE ONLY. IT IS NOT A SUMMARY OF THE ISSUE. INVESTORS MUST READ THE ENTIRE OFFICIAL STATEMENT TO
OBTAIN INFORMA nON ESSENTIAL TO THE MAKING OF AN INFORMED INVESTMENT DECISION.
MATURITY SCHEDULES
GENERAL OBLIGATION TEMPORARY NOTES
SERIES 2000-3
Maturitv
08-01-01
Amount
$800,000
Rate
Price
The Notes will be subject to redemption prior to maturity at the option of the City on Aprill, 2001, and any time
thereafter, in whole or in part, upon thirty days written notice at a price equal to 100% of the principal amount
thereof, plus interest accrued to the redemption date. See THE NOTES - "Redemption Provisions" herein.
GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS
SERIES 2000-A
Maturitv Amount Rate Yield Maturity Amount Rate Yield
10-01-01 $335,000 10-01-09 $330,000
10-01-02 335,000 10-01-10* 330,000
10-01-03 330,000 10-01-11 * 115,000
10-01-04 330,000 10-01-12* 115,000
10-01-05 330,000 10-01-13* 115,000
10-01-06 330,000 10-01-14* 115,000
10-01-07 330,000 10-01-15* 115,000
10-01-08 330,000
*The Bonds maturing on or after October 1, 2010, will be subject to redemption prior to maturity at the option of the
City on October 1,2009, and thereafter, as a whole on any date, or in part on any interest payment date, in principal
amounts of$5,000 or any integral multiple thereof, at a price equal to 100% of the principal amount of Bonds to be
redeemed plus accrued interest to the date fixed for redemption. See THE BONDS - "Redemption Provisions"
herein.
NOTICE OF SALE
$800,000
GENERAL OBLIGATION TEMPORARY NOTES
SERIES 2000-3
AND
$3,885,000
GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS
SERIES 2000-A
OF THE CITY OF SALINA, KANSAS
SALINA, KANSAS (the "City"), will receive bids addressed to BARBARA WEBER, ACTING
CITY CLERK, at ROOM 206 AT THE CITY/COUNTY BUILDING, 300 WEST ASH, SALINA,
KANSAS 67402-0736 (785-826-7240), on
MONDAY, JULY 10, 2000
for the purchase of $800,000 principal amount of General Obligation Temporary Notes, Series 2000-3
(the "Notes") and $3,885,000 principal amount of General Obligation mtemal hnprovement Bonds,
Series 2000-A, of the City (the "Bonds"), at which time and place such bids will be publicly read. Bids
for the Notes will be read at 1:00 p.m., local time on that day. Bids for the Bonds will be read at 2:00
p.m., local time, on that day. The bids for the sale of the Notes and Bonds will be considered at a
meeting of the City Commission at 4:00 p.m. on said day and the City Commission will thereafter accept
the best bids or reject all bids at that meeting. No oral or auction bids will be considered.
THE NOTES
Not~ n~t::lils. The Notes will be dated July 15, 2000 and will become due on August 1, 2001.
The Notes will consist of fully registered notes in the denomination of $5,000 or any integral multiple
thereof. The Notes will bear interest from the dated date at the rate determined when the Notes are sold,
which interest will be payable at maturity on August 1, 2001.
Rook-Entry Only Syst~m. The Notes will initially be registered in the name of Cede & Co., as
nominee of The Depository Trust Company, New York, New York, to which payments of principal of and
interest on the Notes will be made. mdividual purchases of Notes will be made in book-entry form only.
Purchasers will not receive certificates representing their interest in Notes purchased.
Pl::lC~ of P::lym~nt ::lncl Not~ R~eistrntion. The interest on the Notes will be payable in lawful
money of the United States of America by check, draft or wire transfer of funds from the Treasurer of the
City (the "Note Paying Agent" and "Note Registrar"), to the registered owners whose names are on the
registration books of the Note Registrar as of the fifteenth day (whether or not a business day) of the
calendar month next preceding the interest payment date. The principal of the Notes will be payable to
the registered owners thereof at the offices of the Note Paying Agent upon surrender of the Notes for
cancellation and payment.
Redemption of Note~ Prior to Matnrity. The Notes shall be subject to redemption prior to
maturity at the principal amount thereof plus accrued interest thereon to the date of redemption from the
proceeds of general obligation bonds issued to permanently finance certain improvements or from other
available funds of the City. At the option of the City, Notes may be called for redemption in whole or in
part (selection of Notes to be designated by the Note Registrar in such equitable manner as it may
determine) on April I, 2001, or on any date thereafter, at the redemption price of 100% of the principal
amount plus accrued interest thereon to the date of redemption.
Whenever the Note Registrar is to select Notes for the purpose of redemption, it will, in the case
of Notes in denominations greater than $5,000, if less than all of the Notes then outstanding are to be
called for redemption, treat each $5,000 of face value of each such fully registered Note as though it were
a separate Note in the denomination of $5,000.
Unless waived by any owner of the Notes to be redeemed, if the City elects to call any Notes for
redemption and payment prior to the maturity thereof, the City will cause the Note Registrar to give
written notice of its intention to call and pay said Notes on a specified date, the same being described by
maturity, said notice to be mailed by United States first class mail addressed to the owners of the Notes
mailed not less than 30 days before the date fixed for redemption. The City shall also give such
additional notice as may be required by Kansas law in effect as of the date of such notice. If any Note is
called for redemption and payment, all interest on such Note will cease from the date for which such call
is made, provided funds are available for its payment at the price specified.
Anthority, P1l1po~e and Secnrity, The Notes are being issued pursuant to the laws of the State of
Kansas, including without limitation K.S.A. 10-101 et seq. and, K.S.A l2-6aOl et seq., all as amended
and supplemented, for the purpose of paying the cost of certain street, drainage, subdivision and other
improvements in the City. The Notes and the interest thereon will constitute general obligations of the
City. The Notes are payable as to principal and interest in part from special assessments levied upon the
property benefited by the construction of said improvements, from general obligation bonds or from both;
and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount
upon all the taxable tangible property, real and personal, within the territorial limits of the City. The
balance of the principal and interest on the Notes is payable from general obligation bonds and, if not so
paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all taxable
tangible property, real and personal, within the territorial limits of the City. The full faith, credit and
resources of the City are irrevocably pledged for the prompt payment of the principal and interest on the
Notes as the same become due.
THE RONOS
Rond~ Oetai1~. The Bonds will be dated July 15,2000, and will mature serially on October 1 in
the years and in the amounts set forth below. The Bonds will consist of fully registered certificated
bonds, each in the denomination of $5,000 or integral multiples thereof. Interest will be payable
semiannually on April 1 and October 1 (the "Interest Payment Dates"), beginning April 1, 2001.
The principal of the Bonds will be payable at the principal office of the Treasurer of the State of
Kansas (the "Paying Agent" and "Bond Registrar") to the registered owners thereof upon presentation of
the Bonds for payment and cancellation. Interest on the Bonds will be payable to the registered owners
appearing on the books maintained by the Bond Registrar as of the 15th day of the month preceding each
interest payment date (the "Record Dates"). The fees of the Bond Registrar for registration and transfer
of the Bonds will be paid by the City.
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The Bonds will become due on the stated maturity dates as follows:
PRINCIPAL
AMOTJNT
MATURITY
OCTORER 1
PRINCIPAL
A MOTJNT
MATURITY
OCTORER 1
$335,000
335,000
330,000
330,000
330,000
330,000
330,000
330,000
2001
2002
2003
2004
2005
2006
2007
2008
$330,000
330,000
115,000
115,000
115,000
115,000
115,000
2009
2010
2011
2012
2013
2014
2015
Optional Rprlemption. Bonds maturing on or after October 1, 2010, will be subject to
redemption prior to maturity at the option of the City on October 1,2009, and thereafter, in whole at any
time or in part on any interest payment date, in such principal amounts for such maturities as shall be
determined by the City (selection of Bonds for partial redemption of Bonds of the same maturity to be
made in such manner as the Bond Registrar shall determine), at a redemption price of 100% of the
principal amount of Bonds redeemed plus accrued interest to the redemption date, without a premium.
Mandatory Reclemption. A bidder may elect to have all or a portion of the Bonds scheduled to
mature in 2011 to 2015, inclusive, issued as term bonds scheduled to mature in 2015 and subject to
mandatory redemption requirements consistent with the schedule of serial maturities set forth above,
subject to the following conditions: (1) Serial Bonds in inverse order of maturity, including not less than
all Bonds of the same serial maturity, shall be converted to term bonds with mandatory redemption
requirements and (2) a bidder shall make such an election by completing the applicable paragraph on the
Official Bid Form.
Rook-Entry Only System. The Bonds will initially be registered in the name of Cede & Co., as
nominee of The Depository Trust Company, New York, New York, to which payments of principal of and
interest on the Bonds will be made. Individual purchases of Bonds will be made in book-entry form only.
Purchasers will not receive certificates representing their interest in Bonds purchased.
Anthority, Pnrpose and Secnrity. The Bonds are being issued pursuant to the provisions of the
laws of the State of Kansas, including without limitation K.S.A. 10-101 et seq., K.S.A. l2-6aOl et seq.
and K.S.A. 12-685 et seq., all as amended, for the purpose of fmancing the cost of constructing certain
street, utility, drainage, signalization, subdivision and other improvements in the City. The principal of
and interest on the Bonds will be payable in part from special assessments levied upon the property
benefited by the construction of said improvements and, if not so paid, from ad valorem taxes which may
be levied without limitation as to rate or amount upon all of the taxable tangible property, real and
personal, within the territorial limits of the City. The balance of the principal of and interest on the
Bonds will be payable from ad valorem taxes which may be levied without limitation as to rate or amount
upon all of the taxable tangible property, real and personal, within the territorial limits of the City. The
full faith, credit and resources of the City are irrevocably pledged for the prompt payment of the principal
and interest on the Bonds as the same become due.
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RIDS FOR NOTES AND RONDS
Conrlitions of Rirls. Bids may be submitted for the Notes and/or the Bonds. Bids will be
received for the Notes and for the Bonds bearing such rate or rates of interest as may be specified by the
bidder subject to the following conditions:
For the Notes: The same interest rate shall apply to all Notes. The interest rate specified shall be
a multiple of 11100 of 1 %. The interest rate may not exceed a rate equal to the index of 30-year treasury
bonds published by The Ronrl Ruyer in New York, New York, on the Monday next preceding the day of
which the Notes are sold, plus 2%. No bid of less than 99.50% of the principal amount of the Notes and
accrued interest thereon to the date of delivery will be considered and no supplemental interest payments
will be considered. Bids for less than the entire issue of Notes will not be considered.
Each bid must specify the total interest cost to the City during the term of the Notes on the basis
of such bid, the discount, if any, the premium, if any, offered by the bidder, and the net interest cost to the
City on the basis of such bid, all certified by the bidder to be correct and the City will be entitled to rely
on the certificate of correctness of the bidder. Each bid must also specify the average annual net interest
rate to the City on the basis of such bid.
For the Bonds: The same rate shall apply to all Bonds of the same maturity. Each interest rate
specified shall be a multiple of one-eighth (1I8th) or one-twentieth (1I20th) of one percent (1 %). The
difference between the highest and lowest rates specified in any bid shall not exceed two percent (2%).
No interest rate may exceed the maximum interest rate allowed by Kansas law, said rate being the daily
yield for the thirty-year treasury bonds published by The Ronrl Ruyer in New York, New York, on the
Monday next preceding the day on which the Bonds are sold, plus 2%. No bid of less than par and
accrued interest will be considered and no supplemental interest payments will be considered. Bids for
less than the entire issue of Bonds will not be considered.
Each bid must specify the total interest cost to the City during the term of the Bonds on the basis
of such bid, the premium, if any, offered by the bidder, the net interest cost on the basis of such bid and
the TIC (as hereinafter defined) on the basis of such bid, all certified by the bidder to be correct and the
City will be entitled to rely on the certificate of correctness of the bidder.
Goorl F::lith Dt>,posit.
For the Notes: A good faith deposit will not be required for the Notes.
For the Bonds: Each bid must be accompanied by a good faith deposit ("Deposit") in the form of
a certified or cashier's check or a Financial Surety Bond in the amount of 2% of the principal amount of the
Bonds, payable to the order of the Acting City Clerk. If a check is used, it must accompany each bid. If a
Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the
state of Kansas, and such bond must be submitted to the City or the Financial Advisor hereinafter referred to
prior to the opening of the bids. The Financial Surety Bond must identify each bidder whose Deposit is
guaranteed by such Financial Surety Bond. If the Bonds are awarded to a bidder utilizing a Financial Surety
Bond, that successful bidder is required to submit its Deposit to the City in form of a cashier's check (or
wire transfer such amount as instructed by the City or its Financial Advisor) not later than 2:00 P.M., local
time on the next business day following the award. The Deposit of the successful bidder shall constitute a
good faith deposit and shall be retained by the City to insure performance of the requirements of the sale by
the successful bidder. In the event the successful bidder shall fail to comply with the terms of its bid, the
Deposit will be forfeited as full and complete liquidated damages. Upon delivery of the Bonds, the Deposit
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will be applied to the purchase prices of the Bonds, but no interest shall be allowed thereon. After the
award is made to the successful bidder, the Deposit of the unsuccessful bidders will be returned forthwith.
Rid Forms. All bids must be made on forms which may be procured from the Acting City Clerk
or the City's financial advisor. No additions or alterations in such forms shall be made and any erasures
may cause rejection of any bid.
Snhmission of Rids. Bids must be submitted and addressed to the Acting City Clerk. Bids for
the Notes and the Bonds may be submitted by mail or delivered in person to the Acting City Clerk. No
bids will be accepted via fax. Bids for the Notes must be received before 1:00 p.m., local time, on the
sale date. Bids for the Bonds must be received before 2:00 p.m., local time, on the sale date.
R~sis of Aw~rd.
For the Notes: The award of the Notes will be made on the basis of the lowest net interest cost to
the City, which will be determined by adding the amount of the discount bid, if any, and subtracting the
amount of the premium bid, if any, from the total interest cost to the City. If there is any discrepancy
between the net interest cost and the interest rate specified, the specified interest rate shall govern and the
net interest cost specified in the bid shall be adjusted accordingly. If two or more proper bids providing
for identical amounts for the lowest net interest cost are received, the governing body will detennine by
lot which bid, if any, will be accepted, and its determination is [mal.
For the Bonds: Following the opening of the bids for the Bonds, the low bidder will be
designated by a representative of the City. The low bidder will be the bidder whose bid will result in the
lowest "true interest cost" ("TIC"), detennined as follows: the TIC is the discount rate (expressed as a per
annum percentage rate) which, when used in computing the present value of all payments of principal
and interest to be paid on the Bonds, from the payment dates to July 15, 2000 (the dated date of the
Bonds), produces an amount equal to the principal amount of the Bonds, plus premium, if any. Payments
of principal and interest on the Bonds will be based on the principal amounts set forth in this Notice and
the interest rates specified by each bidder. Present value will be computed on the basis of semiannual
compounding and a 360-day year of twelve 30-day months. ill the event there is a discrepency between
the TIC specified by a bidder and their indicated interest rates, the interest rates shall govern and the TIC
shall be adjusted accordingly. ill the event that two or more bidders offer bids at the same lowest TIC,
governing body of the City will detennine by lot which bidder will be designated as the low bidder.
The City reserves the right to reject any and/or all bids and to waive any irregularities in a
submitted bid. Any bid for the Notes received after 1 :00 p.m., local time, on the date of sale will not be
considered. Any bid for the Bonds received after 2:00 p.m., local time, on the date of sale will not be
considered.
Dp.livp.ry ~nd P~ymp.nt. The City will pay for preparing the Notes and the Bonds. The
purchaser(s) of the Notes and the Bonds will be furnished with a complete transcript of proceedings
evidencing the authorization and issuance of the Notes and the Bonds and the usual closing proofs, which
will include a certificate that there is no litigation pending or threatened at the time of delivery of the
Notes and the Bonds affecting their validity. Payment for the Notes and the Bonds will be made in
Federal Reserve Funds or other immediately available funds by approximately 10:00 A.M., local time, on
the day of delivery. Delivery of the Notes and the Bonds will be made to the successful bidder(s) on or
about July 27, 2000, through the facilities of The Depository Trust Company in New York, New York.
The purchase price for the Notes and the Bonds, including accrued interest from the date of the Notes
and the Bonds to the date of delivery, will be paid at delivery or the good faith deposit will be forfeited.
-~-
T ,ee::ll Opinion. The Notes and the Bonds will be sold subject to the approving legal opinion of
Gilmore & Bell, P.c., Kansas City, Missouri, Bond Counsel, which opinions will be furnished and paid
for by the City and will accompany the Notes and the Bonds and will be delivered to the successful
bidder(s) when the Notes and the Bonds are delivered. Said opinions will also include the opinion of
Bond Counsel relating to the exclusion of the interest on the Notes and the Bonds from gross income for
federal and Kansas income tax purposes. Reference is made to the Preliminary Official Statement for
further discussion of federal and Kansas income tax matters relating to the interest on the Notes and the
Bonds.
Certific::Ition ::I~ to Offerine Price~. To provide the City with information necessary for
compliance with Section 148 of the Internal Revenue Code of 1986, as amended (the "Code"), the
successful bidder(s) will be required to complete, execute and deliver to the City prior to the delivery of
the Notes and the Bonds, a certificate regarding the "issue price" (as defined in Section 148 of the Code)
of the Notes and the Bonds, as applicable, reflecting the initial offering prices (excluding accrued interest
and expressed as dollar prices) at which a substantial amount (Le., 10% or more) of the Notes and/or the
Bonds of each maturity have been or are expected to be sold to the public. The term "public" excludes
bond houses, brokers or similar persons, or organizations acting in the capacity of underwriters or
wholesalers. Such certificate shall state that 10% or more of the Notes and/or the Bonds of each maturity
have been or are expected to be sold to the public at prices no higher than such initial offering prices.
However, such certificate may indicate that the successful bidder(s) will not reoffer the Notes and/or the
Bonds for sale.
Cn~ip Tnentific::Ition Nnmhers. CUSIP identification numbers will be printed on the Notes and
the Bonds. All expenses in relation to printing of CUSIP numbers on the Notes and the Bonds and the
expenses charged by the CUSIP Service Bureau for the assignment of said numbers shall be the
responsibility of and shall be paid for by the City.
Mnnidp::ll Bonn Tn~nrnnce. The City has applied to AMBAC Indemnity Corporation, Financial
Guaranty Insurance Company, Financial Security Assurance Inc. and MBIA Insurance Corporation for a
policy of bidder's option municipal bond insurance on the Bonds. The City will not pay the premium or
associated rating costs required in connection with any municipal bond insurance policy desired by the
successful bidder, with the exception of the fee of Moody's Investor Service. If the successful bidder
elects to purchase a policy of municipal bond insurance, it will be the responsibility of the successful
bidder to provide for the payment of all costs associated with the issuance of the policy. Information
concerning the final availability of policies from these companies and the associated cost will be
available only from the respective company officials.
R::Itine~. The City has applied to Moody's Investors Service for a rating on the Notes and the
Bonds. Such application and rating are further described in the City's Preliminary Official Statement
relating to the Notes and the Bonds, copies of which may be obtained from the City or the City's financial
advisor.
If the successful bidder for the Bonds elects to purchase a policy of municipal bond insurance,
then the Bonds may be assigned the ratings of "Aaa" by Moody's Investors Service, Inc. and "AAA" by
Standard & Poor's Ratings Group. These ratings are contingent upon the purchase of a municipal bond
insurance policy and payment of any rating fees and are based on the current ratings of the insurance
companies.
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Any explanation as to the significance of the ratings, when received, may be obtained only from
the rating agencies. Ratings are not recommendations to buy, sell, or hold the Notes and the Bonds, and
such ratings may be subject to revision or withdrawal at any time by the rating agencies. Any downward
revision or withdrawal of either or both ratings may have an adverse affect on the market price of the
Notes and the Bonds.
A""e""erl V::IhHltion ::md Bonded Tndehtedne"". The equalized assessed tangible valuation for
computation of bonded debt limitations is $314,487,783. The total general obligation indebtedness of the
City as of the date of the Notes and Bonds, including the Notes and Bonds being sold but excluding the
temporary notes to be retire with the proceeds of the Notes and Bonds being sold, is $35,790,000.
Preliminary Offic.ial St::ltement ::Ind Offid::ll St::ltement. The City has prepared a Preliminary
Official Statement dated June 19, 2000, copies of which may be obtained from the undersigned or the
City's financial advisor. The Preliminary Official Statement is in a form "deemed fmal" by the City for
the purpose of Rule l5c2-l2(b)(1) of the Securities and Exchange Commission (the "Rule"). Upon the
sale of the Notes and the Bonds, the City will furnish the successful bidder(s) a reasonable number of
copies of the final official statement without additional cost. Additional copies in excess of a reasonable
number may be ordered by the successful bidder(s) at the expense of the successful bidder(s).
C'ontinnine Di"c.lo"llTe. The City will agree in the proceedings authorizing the Notes and the
Bonds to provide annually certain financial information and operating data and other information
necessary to comply with the Rule, and to transmit the same to certain national repositories and the
Municipal Securities Rulemaking Board, as applicable. For further information, reference is made to the
caption "Continuing Disclosure" in the Preliminary Official Statement and APPENDIX B to the
Preliminary Official Statement.
Offic.ial TnformMion. Additional copies of this Notice of Sale, Official Bid Forms or further
information may be obtained from the undersigned or George K. Baum & Company, Twelve Wyandotte
Plaza, Kansas City, Missouri 64105 (816-474-1100), the City's financial advisor.
Dated June 19,2000.
SALINA, KANSAS
By Barbara Weber
Acting City Clerk
Room 206
City/County Building
300 West Ash
Salina, Kansas 67402-0736
(785-826-7240)
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(TmS PAGE LEFT BLANK INTENTIONALLY)
CITY OF SALINA, KANSAS
300 West Ash
City/County Building - Room 206
P. O. Box 736
Salina, Kansas 67402-0736
CITY COMMISSION
Alan Jilka, Mayor
Kristin M. Seaton, Commissioner
Don Heath, Commissioner
Monte Shadwick, Commissioner
Larry Mathews, Commissioner
CITY STAFF
Dennis M. Kissinger, City Manager
Michael Morgan, Deputy City Manager
Rodney Franz, Finance Director
Judy D. Long, City Clerk
Barbara Weber, Acting City Clerk
CITY ATTORNEY
Greg Bengtson
Clark, Mize & Linville, Chartered
Salina, Kansas
BOND COUNSEL
Gilmore & Bell, P.C.
Kansas City, Missouri
FINANCIAL ADVISOR
George K. Baum & Company
Kansas City, Missouri
No person has been authorized by the City or the Successful Bidders to give any information or to make
any representations with respect to the Notes or Bonds to be issued, other than those contained in this Official
Statement, and if given or made, such other information or representations not so authorized must not be relied upon
as having been given or authorized by the City or the Successful Bidders.
This Official Statement is not to be used in connection with an offer to sell or the solicitation of an offer to
buy in any state in which such offer or solicitation is not authorized or in which the person making such offer or
solicitation is not qualified to do so or to any person to whom it is unlawful to make such offer or solicitation.
All fmancial and other information presented herein, except for information expressly attributed to other
sources, has been provided by the City from its records and is intended to show recent historic information. Such
information is not guaranteed as to accuracy or completeness. All descriptions of laws and documents contained
herein are only summaries and are qualified in their entirety by reference to such laws and documents. Information
and expressions of opinion herein are subject to change without notice and neither the delivery of this Official
Statement nor any sale of the Notes or Bonds shall, under any circumstances, create any implication that the
information contained herein has remained unchanged since the respective dates as of which such information is
glVen.
TABLE OF CONTENTS
Pa2e
INTRODUCTORY STATEMENT.................... 1
General.............. ........................... ............. ....... 1
Additional Information..................................... 1
THE NOTES ...................................................... 2
Description ...................... .......... ........... ..... ....... 2
Redemption Provisions..................................... 2
Authority ........................... ...... ....... ........ .......... 2
Security............................................................. 3
Registration and Transfer ................................. 3
THE BONDS...................................................... 3
Description ........................ ... .............. .... .......... 3
Redemption Provisions..................................... 3
Authority ........................................... .... ........... 4
Security............................................................. 4
Registration and Transfer ................................. 4
BOOK-ENTRY ONLY SYSTEM ..................... 4
BIDDERS OPTION MUNICIPAL BOND
INSURANCE .......... ...... .......... ........... ....... ..... 6
THE FINANCING PLAN.................................. 6
The Projects.... ................ ..................... ............. 6
SOURCES AND USES OF FUNDS.................. 7
FINANCIAL OVERVIEW................................ 8
THE CITY OF SALINA, KANSAS .................. 9
Location and Size ............................................. 9
Government... ............................. .... .... ......... ..... 9
Kansas Public Employees Retirement
System (KPERS) ............................................ 9
Kansas Police and Fire Retirement................... 10
Population.. ...... ................ ...... .... ....... ...... .......... 10
Police and Fire Protection ................................ 10
Economic Characteristics ................................. 10
Industry.. ................. ....................... ......... .......... 11
Income ............... ..................... ............. .... ......... 11
Recent Economic Development ....................... 12
The Salina Airport Authority............................ 13
Major Employers .............................................. 13
Unemployment Rate......................................... 14
Education.......................................................... 14
Kansas State University-Salina ........................ 14
Transportation ............... ......... ................. ......... 15
Utilities. ..................... .................. ..................... 15
Pa2e
Health Facilities ............................................... 15
Financial Institutions ........................................ 15
Other Information. ...... ................ ...... ................ 15
DEBT SUMMARy............................................ 17
Current Indebtedness........................................ 17
Overlapping Debt............................................. 18
Historical Debt Information ............................. 19
Legal Debt Limits ............................................ 19
Annual Debt Payments..................................... 19
Future Indebtedness ......................................... 20
Debt Payment Record ...................................... 20
FINANCIAL INFORMATION ......................... 21
Financial Statement Summary.......................... 21
Assessed Valuation .......................................... 22
Estimated Actual Valuation ............................. 22
Largest Taxpayers ............................................ 23
Special Assessments......................................... 23
Tax Collections ................................................ 24
Sales Tax ............... .... .......... .... ........ .......... ... .... 24
Tax Levies ........ ............ .......... ...... ...... ........ ...... 25
Building Permits .............................................. 25
Budgeting Procedures ...................................... 26
Appraisal and Assessment Procedures ............. 26
Property Assessment Rates .............................. 26
Equalization Ratios .......................................... 27
LEGAL MATTERS ........................................... 27
TAX EXEMPTION ........................................... 28
Federal Tax Exemption.................................... 28
Original Issue Discount.................................... 28
Kansas Tax Exemption .................................... 29
Other Tax Consequences.................................. 29
RATINGS .. ........................ .......... ...... ........ ........ 29
UNDERWRITING............................................. 29
ABSENCE OF MATERIAL LITIGATION ...... 29
CONTINUING DISCLOSURE ......................... 30
CERTIFICATION OF THIS OFFICIAL
STATEMENT .................................................. 30
APPENDIX A - Financial Statements
APPENDIX B - Continuing Disclosure Instructions
CITY OF SALINA, KANSAS
GENERAL OBLIGATION
TEMPORARY NOTES
$800,000
SERIES 2000-3
GENERAL OBLIGATION
INTERNAL IMPROVEMENT BONDS
$3,885,000 (stc)
SERIES 2000-A
INTRODUCTORY STATEMENT
General
The purpose of this Official Statement is to present certain information concerning the City of Salina,
Kansas (the "City"), and the issuance of its $800,000 General Obligation Temporary Notes, Series 2000-3 (the
"Notes"), and $3,885,000 (subject to change) General Obligation Internal Improvement Bonds, Series 2000-A (the
"Bonds"), both dated July 15, 2000. The Notes and Bonds are being issued to provide funds to fmance certain
capital improvements within the City. See THE FINANCING PLAN herein.
The Notes and interest thereon will constitute general obligations of the City, payable in part from special
assessments levied upon the property benefited by the construction of certain improvements, from the proceeds of
general obligation notes or bonds, or from both, and if not so paid, from ad valorem taxes which may be levied
without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial
limits of the City. The balance of the Notes is payable from the proceeds of general obligation notes or bonds, and if
not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable
tangible property, real and personal, within the territorial limits of the City. See THE NOTES - "Security" herein.
The Bonds constitute general obligations of the City, payable as to both principal and interest in part from
special assessments levied upon property benefited by the construction of certain improvements and, if not so paid,
from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible
property, real and personal, within the territorial limits of the City. The balance of the Bonds are payable as to both
principal and interest from ad valorem taxes which may be levied without limitation as to rate or amount upon all
the taxable tangible property, real and personal, within the territorial limits of the City. See THE BONDS -
"Security" herein.
APPENDIX A, containing selected fmancial data relating to the City, is an integral part of this Official
Statement and should be read in its entirety.
All fmancial and other information presented herein has been compiled by the City's fmancial advisor,
George K. Baum & Company, Kansas City, Missouri (the "Financial Advisor"). Such information has been
provided by the City and other sources deemed to be reliable. The presentation of information herein is intended to
show recent historic information and is not intended to indicate future or continuing trends in the financial position
or other affairs of the City. Gilmore & Bell, P.C., Kansas City, Missouri, Bond Counsel, has not assisted in the
preparation of this Official Statement, except for the sections titled INTRODUCTORY STATEMENT, THE
NOTES, THE BONDS, LEGAL MATTERS, TAX EXEMPTION, CONTINUING DISCLOSURE, and
APPENDIX B and, accordingly, expresses no opinion as to the accuracy or sufficiency of any other information
contained herein.
Additional Information
Additional information regarding the City or the Notes and Bonds may be obtained from George K. Baum
& Company, Twelve Wyandotte Plaza, 120 West 12th Street, Kansas City, Missouri 64105, telephone
816/474-1100. George K. Baum & Company has received permission from the City to submit a bid for the purchase
of the Bonds.
THE NOTES
Description
The Notes will be issued in the principal amounts and mature on the dates shown on the inside cover page
hereof, will be dated July 15, 2000, and will consist of fully registered notes without coupons. When issued, the
Notes will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New
York ("DTC"). Purchases of the Notes will be made in book-entry only form as described below (without
certificates), in the denomination of $5,000 or any integral multiple thereof. Interest on the Notes will be payable at
maturity. Interest will be paid on the basis of a 360-day year consisting of twelve 30-day months, without
compounding. Interest will be paid to the registered owners of such notes as shown on the registration books
maintained by the City Treasurer (the "Note Paying Agent") as of the fifteenth day of the month next preceding the
date on which interest is payable (the "Record Date"), by check or draft mailed by the Note Paying Agent to the
address of such registered owner shown on the registration books; provided that payment of principal of and interest
on the Notes registered in the name of Cede & Co. shall be payable in same-day funds on the payment date.
Principal on the Notes will be payable upon presentation and surrender of the Notes by the registered owners thereof
at the office of the City Treasurer. So long as the Notes are registered in the name of Cede & Co., principal and
interest payments on the Notes shall be made to DTC for disposition as hereinafter described. See BOOK-ENTRY
ONLY SYSTEM herein.
Redemption Provisions
Optional Redemption. At the option of the City, the Notes will be subject to redemption and payment prior
to maturity on April 1, 2001 and thereafter, in whole or in part upon thirty days written notice at a redemption price
of 100% of the principal amount thereof, without premium, plus accrued interest to the date fixed for redemption.
Selection of Notes to be Redeemed. Specific amounts of Notes called for redemption in advance of their
stated maturities may be selected by the City as it determines. In the event of a partial redemption of Notes, the
Notes to be redeemed will be selected in such manner as the City may determine. Notes will be redeemed in
integral multiples of $5,000. If less than all Notes are called for redemption, the Note Paying Agent shall, in the
case of Notes in denominations greater than $5,000, treat each $5,000 of face value as though it were a separate
Note.
Notice and Effect of Redemotion. If the City elects to call any Notes for redemption and payment prior to
the maturity thereof, the City will cause the Note Paying Agent to give written notice of its intention to redeem said
Notes on a specified date. The Note Paying Agent will notify holders of the Notes of such call by mailing, or
causing to be mailed, the notice of call to the noteholders by fIrst class mail at least thirty days prior to the
redemption date. Interest on any Note so called for redemption and payment will cease from and after the date for
which such call is made, provided funds are available for payment thereof.
So long as DTC is effecting book-entry transfers of the Bonds, the Bond Paying Agent shall provide the
notices specified above to DTC. It is expected that DTC will, in turn, notify the DTC Participants and that the DTC
Participants, in turn, will notify or cause to be notified the Beneficial Owners. Any failure on the part of DTC or a
DTC Participant, or failure on the part of a nominee of a Beneficial Owner of a Bond (having been mailed notice
from the Bond Paying Agent, a DTC Participant or otherwise) to notify the Beneficial Owner of the Bond so
affected, shall not affect the validity of the redemption of such Bond.
Authoritv
The Notes are issued pursuant to and in full compliance with the Constitution and statutes of the State of
Kansas, including particularly K.S.A. 12-6aOI et seq., as amended, and the resolution adopted by the City on_,
2000, authorizing the issuance of the Notes (the "Note Resolution").
2
Security
The Notes and interest thereon will constitute general obligations of the City, payable in part from special
assessments levied upon the property benefited by the construction of certain improvements, from the proceeds of
general obligation notes or bonds, or from both, and if not so paid, from ad valorem taxes which may be levied
without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial
limits of the City. The balance of the Notes is payable from the proceeds of general obligation notes or bonds, and if
not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable
tangible property, real and personal, within the territorial limits of the City.
Re2:istration And Transfer
As long as any Note remains outstanding, the Note Paying Agent will maintain a note register in which all
transfers and exchanges of the Notes will be registered. All Notes presented for transfer or exchange must be
accompanied by a written instrument of transfer or authorization for exchange in a form and with guarantee of a
signature satisfactory to the Note Paying Agent. Notes may be exchanged for Notes in the same aggregate principal
amount and maturity upon presentation to the Note Paying Agent, and upon payment of any tax, fee or other
governmental charge required to be paid with respect to any such registration, exchange, or transfer. The foregoing
provisions for the registration, transfer and exchange of the Notes will not be applicable to Beneficial Owners of the
Notes so long as the Notes are subject to the DTC or other book-entry only system.
THE BONDS
Description
The Bonds will be issued in the principal amounts and mature on the dates shown on the inside cover page
hereof, will be dated July 15, 2000, and will consist of fully registered bonds without coupons. When issued, the
Bonds will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York,
New York ("DTC"). Purchases of the Bonds will be made in book-entry only form as described below (without
certificates) in the denomination of $5,000 or any integral multiple thereof. Interest on the Bonds will be payable
semiannually on April 1 and October 1 in each year, beginning on April 1, 2001. Interest will be paid on the basis
ofa 360-day year consisting of twelve 30-day months. Principal will be payable upon presentation and surrender of
the Bonds by the registered owners thereof at the office of the State Treasurer of the State of Kansas in Topeka,
Kansas (the "Bond Paying Agent"). Interest will be paid to the registered owners of such Bonds as shown on the
registration books maintained by the Bond Paying Agent as of the fifteenth day of the month next preceding the date
on which the interest is payable (the "Record Date") by check or draft mailed by the Bond Paying Agent to the
address of such registered owner shown on the registration books; provided that payment of principal of and interest
on the Bonds registered in the name of Cede & Co. shall be payable in same-day funds on each payment date (or the
equivalent under existing arrangements with the City and Bond Paying Agent). So long as the Bonds are registered
in the name of Cede & Co., principal and interest payments on the Bonds shall be made to DTC for disposition as
hereinafter described. See BOOK-ENTRY ONLY SYSTEM herein.
Redemption Provisions
Optional Redemption. The Bonds maturing on or before October 1, 2009 shall become due without option
of prior payment. At the option of the City, Bonds maturing on or after October 1, 2010, may be called for
redemption and payment prior to maturity on October 1, 2009, and thereafter, in whole at any time, or in part on any
interest payment date, at a redemption price of 100% of the principal amount thereof, without premiwn, plus
accrued interest to the date fixed for redemption.
Selection of Bonds to be Redeemed. The Bonds and the specific annual maturities of Bonds called for
redemption in advance of their stated maturities may be selected by the City as it determines in its sole discretion. In
the event of a partial redemption of Bonds of a given maturity, the Bonds to be redeemed will be selected in such
manner as the Paying Agent acting on behalf of the City may deem equitable. Bonds will be redeemed in integral
multiples of $5,000. If fewer than all Bonds of a given maturity are called for redemption, the City and the Bond
3
Paying Agent shall, in the case of Bonds in denominations greater than $5,000, treat each $5,000 of face value as
though it were a separate Bond.
Notice and Effect of Redemotion. If the City elects to call any Bonds for redemption and payment prior to
the maturity thereof, the City will give the Bond Paying Agent written notice of its intention to redeem said Bonds
on a specified date, the same being described by maturity. The Bond Paying Agent will notify holders of the Bonds
of such call by mailing, or causing to be mailed, the notice of call to the bondholders by first class mail at least thirty
days prior to the redemption date. Interest on any Bond so called for redemption and payment will cease from and
after the date for which such call is made, provided funds are available for payment thereof.
So long as DTC is effecting book-entry transfers of the Bonds, the Bond Paying Agent shall provide the
notices specified above to DTC. It is expected that DTC will, in turn, notify the DTC Participants and that the DTC
Participants, in turn, will notify or cause to be notified the Beneficial Owners. Any failure on the part of DTC or a
DTC Participant, or failure on the part of a nominee of a Beneficial Owner of a Bond (having been mailed notice
from the Bond Paying Agent, a DTC Participant or otherwise) to notify the Beneficial Owner of the Bond so
affected, shall not affect the validity of the redemption of such Bond.
Authoritv
The Bonds are issued pursuant to and in full compliance with the Constitution and statutes of the State of
Kansas, including particularly K.S.A. 12-6aOl et seq., and K.S.A. 12-685 et seq., as amended; and an ordinance and
resolution adopted by the City on _' 2000, authorizing the issuance of the Bonds (jointly referred to herein as
the "the Bond Ordinance").
Security
The Bonds constitute general obligations of the City, payable as to both principal and interest in part from
special assessments levied upon property benefited by the construction of certain improvements and, if not so paid,
from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible
property, real and personal, within the territorial limits of the City. The balance of the Bonds are payable as to both
principal and interest from ad valorem taxes which may be levied without limitation as to rate or amount upon all
the taxable tangible property, real and personal, within the territorial limits of the City.
Relrlstration and Transfer
As long as any Bond remains outstanding, the Bond Paying Agent will maintain a bond register in which all
transfers and exchanges of the Bonds will be registered. All Bonds presented for transfer or exchange must be
accompanied by a written instrument of transfer or authorization for exchange in a form and with guarantee of a
signature satisfactory to the Bond Paying Agent. Bonds may be exchanged for Bonds in the same aggregate
principal amount and maturity upon presentation to the Bond Paying Agent and upon payment of any tax, fee or
other governmental charge required to be paid with respect to any such registration, exchange, or transfer. The
foregoing provisions for the registration, transfer and exchange of the Bonds will not be applicable to Beneficial
Owners of the Bonds so long as the Bonds are subject to the DTC or other book-entry only system.
BOOK-ENTRY ONLY SYSTEM
The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for the
Bonds. The Notes and Bonds will be issued as fully registered securities registered in the name of Cede & Co.
(DTC's partnership nominee). One fully registered Note and Bond certificate will be issued for each maturity of
such series of the Notes and Bonds, in the aggregate principal amount of such maturity, and will be deposited with
DTC.
4
DTC is a limited-purpose trust company organized under the New York Banking Law, a "banking
organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a
"clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency"
registered pursuant to the provisions of Section 17 A of the Securities Exchange Act of 1934. DTC holds securities
that its participants ("Participants") deposit with DTC. DTC also facilitates the settlement among Participants of
securities transactions, such as transfers and pledges, in deposited securities through electronic computerized book-
entry changes in Participants' accounts, thereby eliminating the need for physical movement of securities
certificates. Direct Participants include securities brokers and dealers, banks, trust companies, clearing corporations,
and certain other organizations. DTC is owned by a number of its Direct Participants and by the New York Stock
Exchange, Inc., the American Stock Exchange, Inc., and the National Association of Securities Dealers, Inc. Access
to the DTC system is also available to others such as securities brokers and dealers, banks, and trust companies that
clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect
Participants'). The Rules applicable to DTC and its Participants are on file with the Securities and Exchange
Commission.
Purchases of the Notes and Bonds under the DTC system must be made by or through Direct Participants,
which will receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each
Note and Bond ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records.
Beneficial Owners will not receive written confirmation from DTC of their purchases, but Beneficial Owners are
expected to receive written confirmations providing details of the transactions, as well as periodic statements of their
holdings, from the Direct or Indirect Participants through which the Beneficial Owners entered into the transactions.
Transfers of ownership interests in the Notes and Bonds are to be accomplished by entries made on the books of
Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing
their ownership interests in the Notes and Bonds, except in the event that use of the book-entry system for the Notes
and Bonds is discontinued.
To facilitate subsequent transfers, all Notes and Bonds deposited by Participants with DTC are registered in
the name of DTC's partnership nominee, Cede & Co. The deposit of Notes and Bonds with DTC and their
registration in the name of Cede & Co. effect no change in beneficial ownership. DTC has no knowledge of the
actual Beneficial Owners of the Notes and Bonds; DTC's records reflect only the identity of the Direct Participants
to whose accounts such Notes and Bonds are credited, which mayor may not be the Beneficial Owners. The
Participants will remain responsible for keeping account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to
Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by
arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time.
Redemption notices shall be sent to Cede & Co. If fewer than all of the Notes and Bonds within an issue
are being redeemed, DTC's practice is to detennine by lot the amount of the interest of each Direct Participant in
such issue to be redeemed.
Neither DTC nor Cede & Co. will consent or vote with respect to the Notes and Bonds. Under its usual
procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy
assigns Cede & Coo's consenting or voting rights to those Direct Participants to whose accounts the Notes and
Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).
Principal and interest payments on the Notes and Bonds will be made to DTC. DTC's practice is to credit
Direct Participants' accounts on payable date in accordance with their respective holdings shown on DTC's records
unless DTC has reason to believe that it will not receive payment on payable due. Payments by Participants to
Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities
held for the accounts of customers in bearer form or registered in "street name" and will be the responsibility of such
Participants and not of DTC, the Note Paying Agent, Bond Paying Agent, or the City, subject to any statutory or
regulatory requirements as may be in effect from time to time. Payment of principal and interest to DTC is the
responsibility of the Note Paying Agent and Bond Paying Agent, disbursement of such payments to Direct
Participants shall be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners shall
be the responsibility of Direct and Indirect Participants.
5
DTC may discontinue providing its services as securities depository with respect to the Notes and Bonds at
any time by giving reasonable notice to the City or the Note Paying Agent and Bond Paying Agent. Under such
circumstances, in the event that a successor securities depository is not obtained, Note and Bond certificates are
required to be printed and delivered as provided in the Ordinance and Note Resolutions. The Beneficial Owner,
upon registration of the Notes and Bonds held in the Beneficial Owners name, shall become the Note and Bond
Owner thereof under the terms of the Ordinance and Note Resolutions.
The City may detennine to discontinue the system of book-entry transfers through DTC (or a successor
securities depository). In such event, the Notes and Bonds are to be delivered as provided in the Resolution or
Ordinance and the Note Paying Agent and Bond Paying Agent is entitled to rely on information provided by DTC
and the Participants as to the names and principal amounts in which the Notes and Bonds are to be registered.
The City, the Note Paying Agent, and the Bond Paying Agent, so long as a book-entry system is used for
the Notes and Bonds, are to send any notice of redemption or other notices required to be sent to Owners, only to
DTC. Any failure by DTC to advise any Participant, or by any Participant to notify the Beneficial Owner, of any
such notice and its content or effect shall not affect the validity of the redemption of the Notes and Bonds called for
redemption or of any other action premised on such notice.
The City, the Note Paying Agent, and the Bond Paying Agent cannot and do not give any assurances that
DTC, the Participants or others will distribute payments on the Notes and Bonds made to DTC or its nominee, as the
registered Owner, or any redemption or other notices, to the Beneficial Owners, or that they will do so on a timely
basis or that DTC and the Participants, or any successor depository, will serve and act in a manner described in this
Official Statement.
NEITHER THE CITY, THE NOTE PAYING AGENT, NOR THE BOND PAYING AGENT WILL HA VB
ANY RESPONSffiILITY OR OBLIGATIONS TO SUCH PARTICIPANTS OR THE PERSONS FOR WHOM
THEY ACT AS NOMINEES WITH RESPECT TO THE PAYMENTS TO OR THE PROVIDING OF NOTICE
FOR THE PARTICIPANTS, THE INDIRECT PARTICIPANTS, OR THE BENEFICIAL OWNERS.
The information in this section concerning DTC and DTC's book-entry system has been obtained from
sources that the City, the Financial Advisor and Bond Counsel believe to be reliable, but the City, the Financial
Advisor and Bond Counsel take no responsibility for the accuracy thereof, and neither the DTC Participants nor the
Beneficial Owners should rely on the foregoing information with respect to such matters but should instead confirm
the same with DTC or the DTC Participants, as the case may be.
BIDDERS OPTION MUNICIPAL BOND INSURANCE
The City has applied to AMBAC Indemnity Corporation, Financial Guaranty Insurance Company,
Financial Security Assurance, and Municipal Bond Investors Assurance Corporation for a bidders option municipal
bond insurance policy on the Bonds. Information concerning the availability of such a policy from each company
and the associated cost thereof will be available only from representatives of the companies approximately one
business day prior to the sale of the Bonds. If the Successful Bidder elects to purchase a municipal bond insurance
policy on the Bonds, it will be the bidder's responsibility to pay the cost of the insurance policy and all related costs
thereof, excluding Moody's bond rating fee.
THE FINANCING PLAN
The Proiects
Proceeds from the sale of the Notes will be used to provide initial fmancing for certain capital
improvements and redeem outstanding temporary notes (the "Note Projects"). Proceeds from the sale of the Bonds
will be used to redeem outstanding temporary notes to provide long-term financing for certain capital improvements
within the boundaries of the City (the "Bond Projects"). The Note Projects and the Bond Projects are collectively
referred to herein as the "Projects". The Projects primarily involve various street, water, and sewer improvements in
the City.
6
The cost of constructing a portion of the Projects was initially provided with proceeds from the sale of
general obligation temporary notes of the City. Proceeds from the sale of the Notes and Bonds will be used to
redeem the outstanding temporary notes, pay additional Project costs, and pay the costs associated with the issuance
of the Notes and the Bonds.
SOURCES AND USES OF FUNDS
Funds to be used in the financing of the Project, exclusive of accrued interest, will be provided and applied
approximately as follows.
Sources of Funds:
Note and Bond Proceeds
Prepaid Assessments
Other Available Funds
Total Sources of Funds
Notes
$800,000.00
0.00
0.00
$800,000.00
Bonds
$3,885,000.00
109,572.99
957.454.34
$4,952,027.33
Uses of Funds:
Issuance Costs
Additional Project Cost
Temporary Note Redemption
Total Application of Funds
$ 0.00
800,000.00
0.00
$800,000.00
$ 41,704.00
0.00
4,910.323.33
$4,952,027.33
(THIS SPACE LEFT BLANK INTENTIONALLY)
7
FINANCIAL OVERVIEW
CITY OF SALINA, KANSAS
Net of
Gross Self-Supporting
Debt Debt (1)
1999 Estimated Actual Valuation (2) $ 1,953,641,508.76 $
1999 Assessed Valuation (3) $ 314,487,783.00 $
General Obligation Bonds (4) $ 28,990,000.00 $ 19,925,000.00
Population - 1998 U.S. Census Estimate 44,020
General Obligation Debt Per Capita $ 658.56 $ 452.64
Ratio of General Obligation Debt to Estimated Actual Valuation 1.48% 1.02%
Ratio of General Obligation Debt to Assessed Valuation 9.22% 6.34%
Outstanding Temporary Notes (5) $ 6,800,000.00 $
Outstanding Lease Obligations $ 187,857.00 $
Outstanding Revenue Bonds $ 14,555,000.00 $
Overlapping General Obligation Debt (6) $ 62,973,898.00 $
Direct and Overlapping General Obligation Debt (7) $ 98,763,898.00 $ 89,698,898.00
Direct and Overlapping Debt Per Capita $ 2,243.61 $ 2,037.69
Ratio of Direct and Overlapping Debt to Estimated Actual Valuation 5.06% 4.59%
Ratio of Direct and Overlapping Debt to Assessed Valuation 31.40% 28.52%
(1) The City intends to provide for payment on its Series 1998-A Bonds and its Kansas Revolving Loan with net
revenues derived from the operation of its water and sewage system. The column titled "Net of Self-
Supporting Debt" therefore excludes the Series 1998-A Bonds and the Kansas Revolving Loan. The Series
1998-A Bonds and the Kansas Revolving Loan are ultimately secured, however, by the City's ability to levy
unlimited ad valorem taxes.
(2) For a further description of how Estimated Actual Valuation is calculated and additional historical figures see
the section titled FINANCIAL INFORMATION - "Estimated Actual Valuation".
(3) Real property, personal property, and state assessed utility valuations were released in 1999 and used in
computing tax levies for the City's 2000 Budget. Motor vehicle valuations were released January 2000.
(4) Does not include bonds previously escrowed to stated maturity dates or escrowed to stated call dates. Includes
the Bonds.
(5) Includes the Notes. Does not include notes to be redeemed with Note or Bond proceeds.
(6) For a more detailed explanation of the overlapping debt of the other jurisdictions, see DEBT SUMMARY _
"Overlapping Debt".
(7) Includes outstanding general obligation bonds and temporary notes of the City and overlapping jurisdictions.
8
THE CITY OF SALINA, KANSAS
Location and Size
The City of Salina is located in north central Kansas, near the geographic center of the contiguous United
States. It is the seventh largest city in Kansas, with a 1998 U. S. Census Bureau estimated population of 44,020.
The City is the county seat for Saline County, which had a population of 51,617 in 1998.
Situated at the intersection of Interstate Highways 70 and 135, the City of Salina is centered in one of the
largest wheat producing areas in the world. Kansas City, Kansas, and Wichita, Kansas, are 175 and 95 miles away,
respectively, via the direct access of these two major highways. The City encompasses a total area of approximately
20.31 square miles.
Government
The Town of Salina was organized in 1858 under the Town and Village Act in the State of Kansas. The
City has had a Commission-City Manager form of government since 1921. The Commission comprises five
members elected at-large. Each year the Commission chooses one member to act as Mayor. The City Manager is
appointed by the Governing Body and acts as its primary agent in accordance with state statute. Other city officers
and employees are appointed by the City Manager. The Governing Body is responsible for the policy determination,
and the City Manager is responsible for the administration of the municipal government.
Salina became a City of the First Class on July 9, 1920. The City currently has 474 full-time employees,
including police and fITe employees, and 11 part-time employees. There are no organized city employee unions.
The present elected officials of the City, along with the expiration of their current terms of office, are as follows:
Name
Alan Jilka
Kristin M. Seaton
Don Heath
Monte Shadwick
Larry Mathews
Title
Mayor
Commissioner
Commissioner
Commissioner
Commissioner
Term Expires
2001
2003
2001
2001
2003
Kansas Public Emplovees Retirement Svstem (KPERS)
The City participates in the Kansas Public Employees Retirement System (KPERS) which was established
by the 1961 Kansas Legislature. There are approximately 182,800 current and former public employees in Kansas
who are members of the Kansas Public Retirement System. These members represent over 1,200 state and local
agencies and include the state, all counties, all unified school districts, community junior colleges, area vocational
technical schools, various cities, and other instrumentalities. The KPERS program covers all of the City's full-time
employees.
The purpose of the KPERS program is to provide an orderly means of financing the pension benefits of
retiring public employees and to extend life insurance coverage; long-term disability and service connected death
and disability benefits to members and their beneficiaries.
A nine-member Board of Trustees governs KPERS. The Governor appoints four members to the Board,
the Speaker of the House of Representatives and the President of the Senate appoint one member each, two members
are elected by the Board members themselves, and the State Treasurer is a member.
City employees annually contribute 4% of their gross salary to the System. The City's contribution varies
from year to year based upon the annual actuarial valuation and appraisal made by the actuary of the KPERS
program. For 2000, the City's contribution will be 3.22% of each employee's gross salary.
9
Kansas Police and Fire Retirement
The City has established membership in the Kansas Police and Fire Retirement System for its police and
ftre personnel. Beneftts are determined by total years of service and fmal average salary. The State of Kansas
administers the plan. An actuarial study is made annually and the City's annual contribution is adjusted to meet
current fund requirements. Payment of employee retirement beneftts is the sole responsibility ofKP&F. Currently
the City contributes 11.4% of employees' gross compensation, and the majority of employees contribute 7.0% of
their gross salary.
Population
The City of Salina has a population that is approaching metropolitan area status. This is defined by the
U.S. Census Bureau as cities with 50,000 inhabitants or more. According to the Salina Chamber of Commerce, the
City's citizens had a median age of 35.6 years in 1998. The following table shows the population for the City for
selected years from 1950 to 1998, as provided by the U.S. Census Bureau.
Year
1950
1960
1970
1980
1990
1991
1992
1993
1994
1995
1996
1997
1998
U.S. Census
Bureau Population
26,176
43,202
37,714 *
41,843
42,918
43,244
43,724
44,000
43,942
44,233
44,176
44,600
44,020
*The decline in population between 1960 and 1970 reflects the closing of Schilling Air Force Base in 1965.
Police and Fire Protection
The City of Salina provides police and fITe protection services to residents of the City and surrounding
areas. Fire ftghting services are provided from four stations located throughout the City with 89 full-time employees.
The fire department operates 22 vehicles and provides emergency medical services. The police department employs
approximately 74 full-time employees and operates 31 police vehicles, including patrol vehicles, motorcycles, and
cushmans.
Economic Characteristics
The City of Salina benefits from its location at the junction of Interstate Highways 70 and 135. This
convenient location has drawn numerous national and regional companies to open manufacturing or distribution
centers in the City. Such companies include Raytheon Aircraft (formerly Beech Aircraft), Pepsi-Cola, and Tony's
Pizza, all located within the City, and Exide Battery, Parts America, and Philips Lighting which are located
immediately outside city limits. Currently, manufacturing, retail trade, and service industries rank as the three
primary employers in the City. No single industry is clearly the leader. The government sector and wholesale trade
industries make up the second tier of Salina employers. There is approximately 2,200 retail, commercial, and other
business establishments located in the City.
10
The City serves as a regional trade center for north central Kansas. Many individuals and businesses
within a 70-mile radius travel to the City to purchase consumer goods and services. This designation as a regional
trade center is supported by the fact that Saline County had the third highest "trade pull factor" of all Kansas
counties in 1998 according to Kansas State University. Trade pull factor is measured by dividing the county sales
tax collections per capita by the average statewide sales tax per capita.
In December 1999, the Kansas Department of Human Resources estimated the civilian labor force in the
City of Salina to be 26,470 persons. The U.S. Census Bureau determined that the median household income for the
City was $25,084 in 1990. Homeowner occupancy rates in the City were 98.6% in 1990.
The City of Salina has made a conunitment to plan for its future through capital and economic
development planning. In 1992, the City Conunission approved a comprehensive and transportation plan designed
to encourage and manage growth in the City during the next 15 to 20 years. A firm based out of Chicago
specializing in such studies developed the plan. Among its numerous recommendations, the plan calls for several
street and intersection improvements, revisions to certain zoning and construction standards and policies,
landscaping projects, historic preservation, and business/government cooperation. Significant public improvement
projects have been completed in the fust seven years. The study will provide guidelines for encouraging growth
within the City and expansion of certain city limits.
Industrv
Although Saline County is located in the center of one of the most productive agricultural areas in the
United States, Salina is a city centered more around industry than agriculture. Currently, there are approximately
100 manufacturing and processing companies located in the City.
The City, Saline County, the Chamber of Commerce, and the Salina Airport Authority have developed
several economic incentives which they can offer companies as an inducement to opening a new industrial facility in
Salina. These include property tax abatement for basic industry, the waiving of building permit and inspection fees,
refunding of sales tax paid on machinery and equipment, and providing training for employees through the Salina
Area Technical School and the Kansas State University-Salina, College of Technology. Additionally, a "build-to-
suit-tenant" agreement is available on sites in the Airport Industrial Center that can provide 1 00% financing for land
and building costs.
Income
The following table shows the per capita personal income for residents of Saline County and the State
during the years indicated:
Year
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
Saline
County
$16,948
18,194
19,929
20,107
21,086
21,451
22,715
23,528
25,049
26,422
State of
Kansas
$16,062
16,818
17,968
18,559
19,541
20,213
20,784
21,481
22,707
23,972
Sources: U. S. Bureau of Economic Analysis
11
Recent Economic Development
Several industrial and commercial establishments in Salina have been making major expansions to their
facilities.
E1dorado National, the largest North American manufacturer of small commercial buses of the type used in
airport or car rental shuttles, has announced a consolidation of their operations in a new facility to be located at the
Airport Industrial Center. Upon completion, Eldorado will have a total of 240,000 square feet of modernized
manufacturing space. The project is scheduled for completion in the spring of 2001 and should result in about 75
new jobs. E1dorado currently employs about 265.
KASA Industrial Controls is also consolidating its manufacturing operations in the South Industrial Area by
acquiring a 97,000 square foot facility currently owned by Eldorado National. The consolidation increases
manufacturing floor space by about 30,000 square feet, and will allow for further expansion potential. The company
anticipates 40 to 50 new jobs over the course of the next three years as a result of the consolidation.
Raytheon Aircraft has made a 100-job expansion to its manufacturing base in Salina. More than
$10,000,000 worth of tooling was moved to Salina to support the expansion. Raytheon currently employs 650 at the
Salina Division, which encompasses 595,000 square feet of manufacturing, warehouse, and office space.
An addition to the existing Wal-Mart store has been completed, converting the facility into a "supercenter",
with a full line grocery, bank facilities, portrait studio, hair salon, and McDona1ds. The expansion increased the
total square footage from 114,557 to more than 208,000. About 100 new jobs were created as a result of the
expansion.
K-Mart has recently completed a substantial renovation to their facility, adding more grocery items. They
have added 28 new jobs as a result of the improvements.
Ovation Cabinetry, a manufacturer of nationally marketed upscale kitchen cabinets, has announced plans to
expand their business into a new 36,000 square foot plant at the Airport Industrial Center. Ovation currently
employs 33 people, and is expecting to create 87 new jobs over the next five years.
New manufacturing and commercial facilities locating in Salina include:
A-Plus Galvanizing has selected Salina as the location for the world's largest hot-dip galvanizing plant.
The 156,000 square foot, $9 million facility will initially employ 70 people, with the potential to grow to 150-160
people.
Aerospace Systems and Technologies have announced plans to build a 35,000 square foot manufacturing
plant at the Airport Industrial Center. AS&T builds ice protection systems for smaller aircraft. The new plant will
be completed by the end of2001 and will employ about 80 new employees with a total payroll of$2.1 million. The
company will begin operations in Salina in April 2000 utilizing temporary facilities.
Office Depot has located a retail outlet in Salina, occupying the former Alco Discount Store. Office Depot
will employ about 35 people.
Walgreens has constructed a 15,000 square foot retail drug store, employing 25-30 people.
The Rolling Hills Wildlife Refuge opened to the public in October 1999. The refuge is a privately funded
and operated wildlife sanctuary located in rural Saline County, easily accessible from both Interstate 70 and
Interstate 135. The refuge incorporates an education center, restaurant, and gift shop. Fifty-five acres of the park
are presently open, and includes state-of-the-art displays of 45 examples of rare and endangered species. Future
displays are under construction, as is a Museum of Natural History, featuring an extensive taxidermy collection.
The facility is accredited by the American Zoo and Aquarium Association and employs about 40 people.
12
The Salina Airport Authoritv
The Salina Airport Authority was created in 1965 as a result of the closing of Schilling Air Force Base.
The City of Salina, acting in accordance with Kansas Statutes, authorized and empowered the Authority as a means
to acquire and utilize surplus United States government property for purposes of creating a public airport and
industrial center. In 1966 the Authority received a quitclaim deed for 3,500 acres ofland which contained housing,
hangar, runway, sanitary sewer, and other property formerly maintained by Schilling Air Force Base.
The property available to the Authority was developed into two facilities: the Salina Municipal Airport and
the Salina Airport Industrial Center. The Airport utilizes the former Air Force runway of over 13,000 feet to serve
general aviation, corporate aviation, commuter airlines, and military activities. The size of the runway and its
central location has made the Salina Municipal Airport a useful refueling, training, aircraft testing, aircraft
manufacturing and maintenance, and military maneuvers facility. Additionally, the Airport has attracted several
aviation-related industries and services to the Salina Industrial Center. These aviation-related operations include
Raytheon Aircraft (a division of Raytheon Flower Aviation); Moore's Midway Aviation, and the Kansas State
University of Salina, College of Technology, Department of Aeronautical Technology.
The Authority has also been successful in attracting a wide range of other industries to the Salina Airport
Industrial Center. Currently, 64 businesses are located within the Industrial Center with estimated employment of
4,800 and total payroll exceeding $117.8 million. These include companies involved in food processing, light and
heavy metal fabrication, distribution, high technology equipment production, and transit vehicle production. The
Authority continues to seek new industry through active self-promotion and work with the City of Salina, the Salina
Area Chamber of Commerce, Saline County, and various state agencies and utility companies. The Authority owns
779 acres of Airport Industrial Center property. The undeveloped industrial sites total 436 acres.
Maior Emplovers
Industrial development during the past ten years has established a broad, industrial base within the City.
The economic and industrial bases are well diversified and, as a result, Salina is not dependent on anyone type of
industrial or commercial activity. A list of the major employers is as follows. All figures represent total full-time
employment excluding seasonal and part-time employees.
Name
Tony's Pizza Service
Salina Regional Health Center
U.S.D. #305
Exide Batteries *
Raytheon Aircraft Corporation
Great Plains Mfg. *
Philips Lighting Co. *
City of Salina
EI Dorado National
OCCK, Inc.
ProductlBusiness
Frozen Pizza
Health Care
School System
Battery Manufacturer
Aircraft Subassemblies
Agricultural & Landscaping Equipment
Fluorescent Lamps
City Government
BusesIRecreationa1 Vehicles
Plastic Assembly
1999
Estimated
Emplovment
2,300
1,082
935
825
653
650
605
471
264
263
* These employers have facilities that are situated immediately outside city limits but employ primarily residents of
the City.
Source: Salina Chamber of Commerce
13
Unemplovment Rate
According to the Kansas Department of Human Resources, the following graph shows the annual
unemployment rate trend for the City of Salina and the State of Kansas since 1990.
5.50%
5.00%
4.50%
4.00%
3.50%
3.00%
2.50%
2.00%
9<::'
",Q>
- State of Kansas
City of Salina
9'"v 9'> 9CO 9'0
",Q> ",Q> "Q> "Q>
~<::,<::'
Education
The City of Salina has a very complete and diverse educational system from the primary level up to its
higher educational institutions. Unified School District #305 provides public education through its 13 elementary,
two middle, and two senior high schools. The District also operates alternative education, vocational-technical, and
special education schools. Total enrollment as of September 1999 was approximately 7,782 including special
education, pre-school, and kindergarten students.
The Salina community initiated a major improvement to the educational system in November 1998 when
the voters approved a $98,000,000 bond issue to be used for school expansion and construction. Also approved in
the same election was an additional Y4-cent city sales tax to be used for instructional technology and career
educational equipment. Bond issue proceeds will be used to construct a new middle school, replacing the aging
Roosevelt-Lincoln facility. In addition, expansions and improvements will be constructed at both high schools, at
South Middle School, and at all of the elementary schools. The technology sales tax is expected to raise about
$12,000,000 over the next six years to be used for K-12 improvements as well as improvements to the Salina Area
Vo-Tech.
Additionally, there are a number of parochial institutions that operate four grade schools, one junior high
school, and one senior high school. A military school is located in the City and operates both a grade school and
high school. The City is home to five regional or private upper-level specialty schools. The Kansas Highway Patrol
has a training academy located in Salina. One public library with over 180,000 volumes, two college libraries, a
medical library, and a law library are located within the City. According to the 1990 U.S. Census Bureau, 9,957
people in the city of Salina were enrolled in school.
Kansas State Universitv-Salina
Action by the Kansas State Legislature in 1991 provided for the creation of a satellite campus of Kansas
State University to be established in the City of Salina. The satellite campus represents a merger between Kansas
State University and the Kansas College of Technology. The combined facilities are known as Kansas State
University-Salina, College of Technology. The University offers a variety of engineering technology degree
programs, including an aeronautical studies program, as well as two-year associate degrees in engineering
technology and a four-year Bachelor of Science degree in engineering technology. Areas of emphasis include civil,
electrical and mechanical engineering technologies, aeronautical studies, and avionics. The campus is located
entirely within the boundaries of the Salina Airport Industrial Center. Approximately 775 students were enrolled in
the school for the spring 1999 semester.
The University has extensive plans for developing and improving the campus. These plans were assisted
by the City of Salina's pledge of a one-half cent sales tax for years 1991 and 1992. Proceeds from this additional
tax, a total of approximately $5.3 million, were used in funding certain capital improvements to the campus. Funds
from the tax have already been used to fmance the construction of a $700,000 addition to the Technology Center and
various infrastructure improvements to accommodate the additional traffic and buildings. In addition to the
14
improvements to be funded by the sales tax, in 1992 the University completed construction of a laboratory addition
financed with state revenue Notes. A $1.8 million dormitory facility for approximately 100 students was opened in
1994. A second dormitory was constructed and opened in the fall of 1997.
Transportation
In addition to Interstate Highways 70 and 135, U.S. Highways 81 and 40 also intersect Salina.
Approximately 20 freight companies provide motor freight service in Salina with direct and connecting schedules to
all cities in the United States. Bus service is available at regular intervals during each day in all directions.
Four railways including Union Pacific, Missouri Pacific, St. Louis Southwestern, and Santa Fe provide
daily package-car service in and out of Salina. There are approximately 14 daily freights stopping in the City. Lines
radiate from the City in six directions. Existing terminals have adequate capacity to handle present and greatly
increased future capacity. Approximately 30 miles of storage tracks are available.
Air Midwest, operating as U. S. Airways Express with three daily turboprop flights to Kansas City
International Airport, serves Salina Municipal Airport. In addition, Salina is served by Great Lakes Aviation
operating as United Express with three daily turboprop flights to Denver International Airport. During 1999, the
Salina Municipal Airport enplaned 13,638 passengers. Salina Municipal Airport is classified by the Federal
Aviation Administration as a Primary Airport.
Utilities
Western Resources supply electricity and natural gas to the City. Southwestern Bell Telephone provides
telephone service. Two cellular phone companies provide service to the City. The City of Salina Water and Sewage
Department provide water and wastewater services.
Health Facilities
The City is served by Salina Regional Health Center; a 385-bed regional facility divided between two
Salina campuses. The Health Center is the result of a 1995 merger of the two major Salina hospitals, St. John's and
Asbury. SRHC is an acute care facility for the diagnosis and treatment of all types of diseases and conditions. The
medical facilities have recently undergone substantial expansion. These expansions increased the range of treatment
capabilities and patient capacity, with the merger expected to provide improved cost-effectiveness and medical
service to the region.
There are approximately 120 physicians and 28 dentists practicing in the City. Every physician employed
by or on staff at the hospitals is either board certified or board eligible. Several other facilities providing mental
health services, counseling, and alcohol and drug dependency treatment programs are located in the City.
Financial Institutions
Eight banks operating a total of 16 different facilities are located in the City. Four banks are headquartered
in the City and reported combined deposits in excess of $1.4 billion as of June 30, 1999. One savings and loan
institution with total deposits of $222.9 million is headquartered in the City, and two additional savings and loan
institutions have branch offices in the City.
Other Information
)> Public recreation facilities available to city residents include 17 public parks, a golf course, 18 baseball/softball
fields, two swimming pools, an art center, a community theater, a public museum, eight tennis courts, and ice
and roller skating facilities. Two private clubs provide additional recreational opportunities for residents of the
City.
15
~ According to a 1998 study by the American Chamber of Commerce Research Association, the City of Salina
has a cost ofliving index 8.6% below the national average.
~ Numerous concerts, exhibitions, conventions, and other events are held in the 7,500-seat Bicentennial Center.
The Center has approximately 40,000 square feet of exhibit space.
~ In 1999 Salina became home to the Kansas Cagerz, a professional basketball team playing in the United States
Basketball League. The Cagerz play about thirteen home games, all at the city-owned and operated
Bicentennial Center.
~ According to a report published by K-State Research and Extension in September 1999, Saline County ranks
second out of 105 counties in the State in "Strength Index". The Strength Index is a measure of economic
prosperity and consists of three components: wealth, employment, and personal income. In 1998, Saline
County ranked fourth in the Strength Index.
~ Fifty-two churches serve the City's population, representing approximately 20 denominations.
~ The Salina Journal has a daily circulation of approximately 32,367 in 30 counties.
~ The City was recently ranked 30th out of 193 "micropolitan" area cities in the Rating Guide to Life in America's
Small Cities.
~ There are nine radio stations in the City including three AM, five FM, and one public FM station. Five standard
television stations from Wichita serve the Salina area. Additionally, Multimedia Cablevision provides access to
up to 60 television stations to subscribing customers.
~ There are approximately 26 lodging facilities with a total of an estimated 1,731 rooms m the City.
Approximately 110 eating establishments are located in the City.
16
Current Indebtedness
DEBT SUMMARY
The following is an overview of the City's outstanding indebtedness by classification as of July 15, 2000.
Figures do not include bonds for which payment has been provided through the creation of designated escrow
accounts.
General Obligation Bonds:
The City has applied to Moody's Investors Service for a rating on the Bonds. Some of the City's
outstanding bonds have received a rating of "Aaa" from Moody's Investors Service as the result of a municipal bond
insurance policy. The City's other currently outstanding general obligation bonds also have an underlying rating of
"AI" by Moody's. The outstanding general obligation bonded indebtedness of the City is as follows:
Date
Issued
12-01-90
04-01-91
07-01-91
12-01-91
05-01-92
05-01-93
12-01-93
06-01-94
05-01-95
06-01-96
04-01-97
01-05-98*
02-01-98
08-01-98*
07-15-99
07-15-00
Purpose
Broadway Overpass
Internal Improvements
Internal Improvements
West Crawford Improvements
Internal Improvements
Internal Improvements
Solid Waste & Other Improvements
Internal Improvements
Solid Waste & Other Improvements
Internal Improvements
Internal Improvements
Kansas Public Water Loan
Internal Improvements
Water and Sewage System Refunding
Internal Improvements
Internal Improvements
Amount
of Issue
$ 455,000
1,300,000
1,417,000
1,785,000
1,240,000
685,000
1,800,000
1,175,000
2,434,000
1,847,000
1,650,000
3,600,000
3,900,000
6,010,000
5,465,000
3,885,000
Final
Maturitv
12-01-00
10-01-01
10-01-01
10-01-01
10-01-02
10-01-03
10-01-03
10-01-04
08-01-05
08-01-06
08-01-07
08-01-20
08-01-13
10-01-08
10-01-14
10-01-15
Outstandine:
$ 45,000
260,000
280,000
350,000
375,000
280,000
750,000
575,000
1,455,000
1,295,000
1,320,000
3,600,000
3,590,000
5,465,000
5,465,000
3.885.000
$28,990,000
* The City intends to provide for payment of this debt with net revenues derived from the operation of its water and
sewage system However, these bonds are ultimately secured by the City's ability to levy unlimited ad valorem
taxes.
A portion of the City's outstanding general obligation bonds are payable from special assessments levied
upon properties benefited by certain internal improvement projects and transfers from enterprise funds of the City.
If such payments are not provided in a timely manner, the principal of and interest on the bonds must then be paid
from the City's ability to levy unlimited ad valorem taxes. See FINANCIAL INFORMATION - "Special
Assessments" for a further description of special assessment financing.
The City has a practice of issuing its general obligation debt with level annual principal payments over a
period of ten or fifteen years, depending on the nature and size of the projects being financed. Exceptions to this
practice have been made for special projects.
Revenue Bonds:
Certain revenue bonds have a rating of "Aaa" by Moody's Investors Service as the result of a municipal
bond insurance policy. The City's currently outstanding utility revenue bonds are rated "Al" by Moody's. Revenue
bonds are payable solely from the net revenues derived by the City from the operation of its combined Water and
Sewage System Revenue bonds do not represent a general obligation indebtedness of the City for which the City's
taxing ability has been pledged.
17
Date
Issued
07-01-92
07-01-93
01-01-94
Purpose
Improvement
Improvement
Refunding
Amount
of Issue
$15,000,000
3,200,000
11,390,000
Final
Maturitv
10-01-00
10-01-13
09-01-12
Outstandine:
$ 605,000
2,560,000
11.390.000
$14,555,000
Temporary Notes:
The City has applied to Moody's Investors Service for a rating on the Notes. Some of the City's other
outstanding note issues have received short-term MIG 1 ratings from Moody's Investor's Service. Temporary notes
represent a general obligation indebtedness payable ultimately from the City's ability to levy unlimited taxes upon
all taxable tangible property within its territorial limits. The City customarily redeems temporary notes with
proceeds from the sale oflong-term general obligation notes or other available funds.
Final Original
Date Maturity Note Amount
Proiect Series Issued Date Amount Outs tan dine:
Solid Waste 08-06-98 09-01-01 $1,500,000 $ 1,500,000
Street, Drainage and Sub-
division Improvements 1999-1 02-01-99 08-01-00 5,275,000 650,000 (1)
Street 1999-2 06-01-99 08-01-00 2,000,000 2,000,000 (1)
Animal Shelter, Utility, and
Subdivision Improvements 1999-3 11-01-99 08-01-00 1,900,000 1,900,000 (1)
Street, Drainage and Sub-
division Improvements 2000-1 02-01-00 08-01-00/01 780,000 780,000 (2)
Internal Improvements 2000-2 04-15-00 08-01-01 3,900,000 3,900,000
Internal Improvements 2000-3 07-15-00 08-01-01 800,000 800.000
$11,530,000
(1) To be paid with bond proceeds and other available funds.
(2) $180,000 matures 08-01-00 and will be paid with bond proceeds and other available funds. $600,000 matures
08-01-01.
Lease Purchase Obligations:
Issued
Computer Equipment
Year
Issued
1999
Original
Amount
$291,587
Final
Year
2002
Amount
Outstandine:
$187,857
Overlappine: Debt
The following table shows the overlapping general obligation indebtedness of the City. The percent of an
overlapping jurisdiction's debt that is applicable to the City is calculated by dividing the assessed valuation of that
portion of the jurisdiction's boundaries which overlap those of the City by the total assessed valuation of such
jurisdiction.
Jurisdiction
U.S.D. #305
Saline County
Salina Airport Authority
Amount
Outstandine:
$60,800,000
1,415,000
6,170,000
Estimated Share of the City
Amount Percentae:e
$55,755,690 91.70%
1,048,208 74.08
6,170,000 100.00
Source: Saline County Clerk's Office
18
Historical Debt Information
The following table shows historical balances of outstanding general obligation bonds for the City during
the most recent five-year period.
Bonds Debt to Debt to Debt
Outstanding Assessed Estimated Actual Per
Year December 31 Valuation Valuation Population Capita
1995 $11,519,000 4.67 0.78 44,233 $260.42
1996 10,982,000 4.26 0.71 44,176 286.01
1997 10,490,000 3.74 0.61 44,176 235.20
1998 12,590,000 (1) 4.21 0.68 44,020 286.01
1999 15,610,000 (1) 4.97 0.80 44,020 (2) 354.61
(1) The City intends to provide for payment on its Series 1998-A Bonds with net revenues derived from the
operation of its water and sewer system. Therefore, this figure excludes the outstanding principal amount,
although the Bonds are ultimately secured by the City's ability to levy unlimited ad valorem taxes.
(2) Based upon 1998 U. S. Census Bureau estimate.
Lee:al Debt Limits
Cities within Kansas are permitted to issue bonds in an aggregate amount not to exceed 30% of the total
assessed valuation of the city. Bonds issued for the purpose of improving, acquiring, enlarging, or extending
municipal utilities, including storm and sanitary sewer systems; bonds issued to pay the cost of improvements to
intersections and streets in front of city or school district property; bonds for bridges as authorized by a vote of the
electors of a city; bonds issued to refund outstanding bonds; and bonds payable from revenue sources other than the
general taxing authority of the city are not included in total aggregate debt for purposes of computing a city's debt
limitation.
Annual Debt Payments
The following is a list of annual debt service requirements for the City's currently outstanding general
obligation bonded indebtedness. All amounts are rounded to the nearest whole dollar.
All Outstanding: Bonds Series 2000-A Bonds SRF Loan
Year Principal Interest Principal Interest Principal Interest Total
2000 $ 2,985,000 $1,061,208 $ $ 57,750
2001 2,955,000 856,984 335,000 $ 119,243 150,697
2002 2,530,000 710,779 335,000 124,414 145,527
2003 2,335,000 591,413 330,000 129,808 140,132
2004 2,100,000 484,365 330,000 135,437 134,504
2005 2,015,000 390,220 330,000 141,309 128,631
2006 1,805,000 299,613 330,000 147,436 122,504
2007 1,655,000 218,865 330,000 153,829 116,111
2008 1,270,000 144,805 330,000 160,499 109,441
2009 615,000 87,545 330,000 167,459 102,482
2010 280,000 58,960 330,000 174,720 95,221
2011 280,000 46,000 115,000 182,295 87,645
2012 280,000 32,720 115,000 190,200 79,741
2013 280,000 19,360 115,000 198,447 71,494
2014 120,000 6,000 115,000 207,051 62,889
2015 115,000 216,029 53,911
2016 225,396 44,544
2017 235,170 34,771
2018 245,366 24,574
2019 256,006 13,935
2020 132.136 2.834
$21,505,000 $5,008,837 $3,885,000 $3,600,000 $1,798,808
*Includes debt service payments made in April 2000.
19
Future Indebtedness
The City regularly fmances, on a temporary basis, the costs of improvement projects under construction
through the issuance of temporary notes. When the projects are completed the notes are called and redeemed with
the proceeds from the sale of long-term general obligation bonds. The City has also made a practice of issuing
general obligation temporary notes for sanitary land fill improvements for a period of three years. Such notes have
periodic principal maturities that are funded with revenues generated from the landfill operation and no associated
long-term bonds are issued.
The City annually prepares and adopts a five-year capital improvements plan. This plan identifies and
prioritizes potential capital improvement projects within the City and includes the respective funding sources.
Based on the City's 1999 capital improvements plan, the following table lists the total cost of projects the City
anticipates undertaking each year for the next four years and the estimated general obligation bonding requirements:
Year
2000
2001
2002
2003
Total Cost of
Proiects in CIP
$10,685,000
13,320,000
7,385,000
4,410,000
Funding Provided
bv GO Bonds
$4,500,000
4,500,000*
2,500,000
o
*$2,000,000 to be repaid by landfill fees
Borrowing requirements described above do not include future subdivision improvement projects fmanced
with general obligation special assessment temporary notes and bonds. The City typically undertakes such projects
after receiving and reviewing a valid petition from property owners. See FINANCIAL INFORMA nON - "Special
Assessments" .
Debt Payment Record
The City has always met principal and interest payments on all outstanding bonds and temporary notes
when due and payable.
20
FINANCIAL INFORMATION
Financial Statement Summarv
The following is a summary of the combined revenues, expenditures, and fund balances for the City's
General, Special Revenue, and Debt Service Funds for the most recent available years as shown in the City's
Comprehensive Annual Financial Reports. This summary has not been prepared or reviewed by the City's auditor.
Audited Audited Audited Audited
1996 1997 1998 1999
Revenues:
Property Taxes $ 6,690,485 $ 6,945,943 $ 6,995,943 $
Sales Tax 8,446,809 8,948,067 9,687,988
Franchise Tax 1,836,694 1,929,622 1,950,520
Transient Guest Tax 583,506 592,715 730,488
Combined Taxes 21,314,633
Intergovernmental 3,342,888 3,197,436 3,208,793 4,383,281
Charges for Services 3,160,771 3,197,039 4,851,556 2,068,329
Fines 970,233 977,288 895,393
Special Assessments 1,191,772 1,127,400 1,050,242 1,086,557
Use of Money
Interest 908,416 589,921 414,669
Reimbursements 123,269 111,603 127,147
Miscellaneous 557.306 474.648 514.497
Total Revenues $28,112,147 $28,091,682 $30,427,236 $33,110,363
Expenditures:
General Government $ 5,400,525 $ 5,721,204 $ 7,319,381 $ 2,178,432
Public Safety 7,492,967 8,123,762 7,825,422 10,447,619
Public Works 2,631,025 2,557,584 2,211,719 3,467,893
Recreation 1,872,887 1,947,685 1,941,834 4,413,084
Cultural 469,901 522,763 496,483
Conununity Development 473,245 246,047 260,548 4,100,217
Health and Welfare 474,604 491,299 512,818 673,433
Debt Service 2,667,038 4,042,308 2,858,079 2,491,953
Capital Outlay 4,261,039 4,525,977 3,181,300 3,644,789
Bicentennial Center 1,768,489 1,681,770 2,184,746
Other 29.561 176.364 374.840
Total Expenditures $27,541,281 $30,036,763 $29,167,170 $ 25,280,678
Revenues Over (Under) Expenditures $ 570,866 $(1,945,081) $1,260,066 $ 1,692,943
Other Sources (Uses) 56.384 29.433 46.096 (615.443)
Revenues and Other Sources Over (Under)
Expenditures and Other Uses $ 627,250 $(1,915,648) $1,306,162 $ 1,077,500
Fund Balance January 1 $11,147,468 $11,780,481 $10,016,759 $11,234,905
Residual Equity Transfer 5.763 151.926 (88.016)
Fund Balance December 31 $11.708.481 $10.016.759 $11.234.905 $12.133.440
21
Assessed Valuation
According to the Saline County Clerk's Office, the following table gives the assessed valuation of the City
in the years indicated.
Year
1990-1991 (1)
1991-1992
1992-1993
1993-1994 (2)
1994-1995
1995-1996
1996-1997
1997-1998
1998-1999
1999-2000
Real
Estate
$125,389,311
134,834,179
135,267,866
129,632,717
145,239,331
166,462,923
175,997,879
196,360,843
213,488,582
226,207,727
Personal
Property
$13,454,685
14,314,162
16,751,713
22,447,713
22,678,728
24,890,665
25,550,448
26,279,996
27,534,811
28,786,094
State
Assessed
$11,094,235
11,208,262
11,545,541
12,849,722
14,272,658
12,528,204
12,708,970
13,954,569
12,909,972
14,122,529
Motor
Vehicle
$35,096,634
34,515,855
35,803,591
37,569,816
41,805,765
42,981,776
43,786,794
43,994,555
44,924,849
45,371,433
Total
Assessed
Valuation
$185,034,865
194,872,458
199,368,711
202,499,968
223,996,482
246,863,568
258,044,091
280,589,963
298,858,214
314,487,783
(1) In 1990 a number of taxpayers protested their property valuations that were assigned during statewide
reappraisal in 1989. Many taxpayers were successful in having their property valuations lowered. The impact
of these valuation decreases is reflected in the 1990-1991 assessed valuation figures.
(2) 1993-1994 assessed valuation figures were impacted by a constitutional amendment approved by Kansas voters
in November 1992. See FINANCIAL INFORMATION - "Property Assessment Rates".
Estimated Actual Valuation
Based on assessment percentages provided by Kansas Statutes, real estate equalization ratios provided by
the Kansas Department of Revenue (see FINANCIAL INFORMATION - "Property Assessment Rates"), and
estimated actual valuation figures provided by the Saline County Appraiser's Office, the following table provides
estimated actual valuations for the City in the years indicated.
Year
1990-1991
1991-1992
1992-1993
1993-1994*
1994-1995
1995-1996
1996-1997
1997-1998
1998-1999
1999-2000
Residential Real Estate
Equalization Ratio
11.88
11.83
11.45
10.22
10.74
11.25
10.64
11.29
11.50
n.a.
Estimated
Actual Value
$1,026,844,668
1,075,575,019
1,105,026,368
1,175,493,628
1,314,830,748
1,482,502,706
1,551,794,365
1,716,987,425
1,850,244,169
1,953,641,509
* In November 1992 an amendment to the Kansas Constitution was implemented which modified certain property
classification ratios. Equalization ratios shown for 1993-1994 were impacted by this legislative change. See
FINANCIAL INFORMATION - "Property Assessment Rates".
22
Lar2:est Taxpayers
The following table lists the largest taxpayers in the City, their 1999 assessed valuations, and the percentage
each taxpayer comprised of the total assessed valuation of the City.
Company
Schwan's Sales
Warmack, Salina Partnership
Western Resources
Southwestern Bell
Wal-Mart Stores, Inc.
Kansas Gas Service
Salina Regional Health and
Medical Center
Sunset Properties
Dillon Stores
Great Plains Manufacturing
Bradley Operating
Delloitte & Touche
Type of Business
Manufacturing
Retail Shopping Center
Utility
Telephone Utility
Discount Retail
Utility
Assessed
Valuation
$ 6,766,642 *
5,862,083
5,476,810
5,117,625
2,813,976
2,518,810
% of Total
Valuation
2.15%
1.86
1.74
1.63
.89
.80
.74
.67
.56
.54
.43
~
12.45%
* Schwan's Sales has experienced a significant increase in assessed valuation in recent years, attributable primarily
to land acquisition, renovations, and extensive acquisition of miscellaneous personal property.
Source: Saline County Clerk's Office
Special Assessments
Hospital and Medical Offices
Retail, Office and Medical Building
Retail
Manufacturing
Community Shopping Center
Hotel
2,322,069
2,102,808
1,764,292
1,712,038
1,359,010
1.344.4 77
$39,160,640
The City has pursued a policy of utilizing special benefit districts to assign the cost of certain internal
improvement projects to the property that directly benefits from the construction. Kansas statutes allow for the
creation of special benefit districts to pay for the cost of a variety of improvements including street construction,
storm water drains, sanitary sewer system improvements, street lighting, water system improvements, recreational
facilities, flood control projects, bridges, and parking facilities. The City has typically utilized special benefit
districts to pay for the costs associated with constructing streets, sidewalks, curbs, gutters, and lighting in new
residential developments within the City. When a developer requests the use of Special Assessments to finance
public improvements, the City requires that they pay 20% of the estimated cost of the project in cash, or file a letter
of credit equivalent to 35% of the estimated cost of the project. The letter of credit is released when Certificates of
Occupancy have been issued for 35% of the lots in the development. Special benefit districts have also been created
to pay for the cost of improvements to streets and sidewalks in the City's downtown area.
The creation of special benefit districts, the determination of property benefited, and the method of
allocating the cost of the improvement is at the discretion of the City. Property owners have the ability to suggest
improvements through a petition process and to comment on the final amount of their assessment. The City mayor
may not be included as part of the special benefit district. All property owners have the option to pay their portion
of the improvement cost with a one-time payment during a 30-day assessment prepayment period or pay in annual
installments with interest over a certain number of years.
Upon completion of the special benefit district improvement projects and a 30-day prepayment period, the
City issues general obligation bonds to provide for permanent project financing. The payment of the principal of
and interest on such bonds is paid from the special assessments levied annually on the benefited property. Special
assessments are paid at the same time and in the same manner as ad valorem property taxes. If at any time the
special assessments received from the property owners are insufficient to provide for the payment of the principal of
and interest on the bonds, the City is obligated to provide for the balance of such payments through its ability to levy
unlimited ad valorem property taxes.
23
Tax Collections
Real estate property tax statements are mailed November 1 each year and may be paid in full or one-half
on or before December 20 with the remaining one-half due on or before June 20 of the following year. Taxes that
are unpaid on the due dates are penalized at the rate of 12% per annum (1 % pro-rated monthly) until paid or until the
property is sold for taxes. Real estate bearing unpaid taxes is advertised for sale in July of each year and is sold to
the County for taxes and all legal charges on the first Tuesday in September. Properties that are sold to the County
and not redeemed by the delinquent taxpayer within two years after the tax sale are subject to foreclosure sale,
except properties defmed as "homesteads" under the Kansas Constitution, which are subject to sale after three years.
Personal property taxes are assessed, due and may be paid in the same manner as real estate taxes. Motor
vehicle property taxes are based on valuations provided by the Kansas Department of Revenue and the county
average tax rate for the county in which the vehicle is registered. Motor vehicle taxes are payable to the county
treasurer at the time of the vehicle's annual registration. Vehicle registration dates are assigned by the State in a
manner such as to equal registration over a twelve-month period. Motor vehicle taxes are distributed by the county
to the state, city and other taxing jurisdictions based on their proportionate tax levies. Delinquent personal and
motor vehicle taxes are penalized at the same rate as delinquent real property taxes.
The following is a summary of tax collections for the years shown. Taxes levied according to the 1999 tax
rolls were collected in December 1999 and June 2000 and were used to fInance the City's 2000 budget.
Current Current and Delinquent
Budget Tax Taxes Tax Collections Tax Collections
Year Rate Levied Amount % Amount %
1990 30.015 $4,693,317 $4,394,623 93.6* $4,499,127 95.9
1991 30.028 4,502,345 4,317,229 95.9* 4,322,973 96.0
1992 29.828 4,783,118 4,500,863 94.1* 4,663,073 97.5
1993 29.849 4,881,773 4,696,471 96.2 4,837,579 99.0
1994 29.461 4,858,543 4,673,374 96.2 4,776,852 98.3
1995 28.709 5,241,229 5,177,552 98.8 5,284,148 100.8
1996 27.145 5,540,896 5,411,474 97.7 5,529,657 99.8
1997 26.942 5,777,867 5,689,316 98.5 5,783,780 100.1
1998 25.705 6,087,331 5,982,433 98.3 6,097,800 100.2
1999 25.270 6,425,767 6,255,833 97.4 6,396,584 99.6
2000 (to date) 24.876 6,702,087 3,811,489 56.9 n.a. 56.9
* In 1990 through 1992 the City experienced a decrease in annual tax collections as a result of numerous protests by
property owners of their reappraised property valuations. The City adjusted its budgeting procedures accordingly
to reflect a lower tax collection rate. The City has budgeted for a 4% delinquency rate in recent years.
Sales Tax
In 1982 the voters of Saline County, in accordance with Kansas statutes, approved a 1 % countywide local
option sales tax. In 1992 voters of the City approved a local option .50% citywide sales tax for purposes of helping
fund general operations expenditures of the City.
In November 1998, voters within the City approved an additional .25% restricted local option sales tax to
be collected through June 1,2004 and distributed to UnifIed School District No. 305 to fund educational technology.
The total sales tax for goods and services in the City is now 6.65%, which consists of 4.9% imposed by the State,
1 % countywide local option sales tax, and .75% citywide local option sales tax.
Sales tax collections are the responsibility of the Kansas Department of Revenue. The Department of
Revenue distributes the local option countywide and citywide sales taxes on a monthly basis. Countywide sales
taxes are distributed between the levying county and the cities located within the county based on population and
relative tax levies. Citywide local option sales taxes are distributed solely to the levying city. Statewide sales taxes
are retained entirely by the state.
24
The City of Salina deposits sales tax receipts from its 1992 tax into its General Fund. In 1999, the City
collected a total of$l1,162,221 from all city and countywide local option sales taxes representing 33.71% of total
revenues in the General, Special Revenue, and Debt Service Funds. Sales tax receipts are used for funding general
operating expenditures of the City and capital improvement projects. The following table lists the local-option sales
tax receipts of the City of Salina in the years indicated. Figures represent actual collections and may vary slightly
from final audited amounts.
Year
1994
1995
1996
1997
1998
1999
.25 Citywide
Local Option
Sales Tax Receipts
(Distributed to V.S.D. 305)
.50~ Citywide
Local Option
Sales Tax Receipts
$3,169,765
3,456,554
3,440,067
3,611,403
3,925,229
3,992,065
$1,529,768
Tax Levies
City's Portion of
1 ~ Countywide
Local Option
Sales Tax Receipts
$4,591,521
4,869,601
4,810,469
5,047,000
5,634,338
5,640,388
The City may levy taxes in accordance with the requirements of its adopted budget. The County Clerk
determines property tax levies based upon the assessed valuations provided by the Appraiser and spreads the levies
on the tax rolls. The following table gives the total tax levies for all taxing jurisdictions per $1,000.00 assessed
valuation of the City for the last five years.
1995 1996 1997 1998 1999
Levy Levy Levy Levy Levy
for for for for for
1996 1997 1998 1999 2000
Jurisdiction Bude:et Bude:et Bude:et Bude:et Bude:et
City of Salina 27.145 26.942 25.705 25.270 24.876
Salina Library 5.393 5.565 5.804 5.419 5.291
State Education & Other 1.500 1.500 1.500 1.500 1.500
Unified School District #305 42.287 42.312 39.529 36.840 56.321
Airport Authority 1.372 1.275 1.129 2.950 2.653
Saline County 23.370 22.925 18.141 20.488 23.187
Total 101.067 100.519 91.808 92.467 113.828
BuUdine: Permits
Building permits issued in the City have experienced new highs in recent years. Strong commercial and
industrial growth has led to a significant increase in demand for residential housing. In addition to the historical
permit information provided below, the City has recently approved the development of several new subdivisions.
The following table shows the total volume and estimated valuation of building permits authorized by the City
during the years indicated.
Year
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
Permits
Issued
497
562
598
628
680
759
890
725
757
772
Estimated
Valuation
$36,469,096 *
22,665,785
25,283,947
36,411,632
38,667,261
34,156,955
55,369,816
38,149,921
42,870,543
35,795,980
*Includes one permit in the amount of $16,000,000 issued to Asbury Hospital for a large expansion project.
25
Budl!etinl! Procedures
Applicable Kansas statutes require that budgets be legally adopted for all funds (including debt service and
enterprise funds) unless exempted by a specific statute. All budgets are prepared utilizing the modified accrual basis
further modified by the encumbrance method of accounting. For example, commitments such as purchase orders
and contracts, in addition to disbursements and accounts payable, are recorded as expenditures.
The statutes provide that the budget for the succeeding calendar year must be prepared on or before August
1 and published on or before August 5 of each year. A public hearing is required to be held on or before August 15,
with the final budget being adopted on or before August 25 of each year. Original appropriations may be modified
by supplemental appropriations and transfers among budget categories. The City Commission must approve all
significant changes.
Kansas law prohibits cities and other governmental units from creating indebtedness unless there is money
on hand in the proper fund and unencumbered by previous commitments with which to pay the indebtedness. The
execution of a contract, or the issuing of a purchase order, automatically encumbers the money in the fund for the
payment of the amount represented by the commitment. It makes no difference that the amount may not have to be
paid until more moneys are in the fund or until the following year. An exception to this cash basis law is the
issuance of debt, in the form of bonds, notes, or warrants, pursuant to statutory authority, referendum or by the State
Board of Tax Appeals. In the event debt is issued, funds need not be on hand for future payments.
Appraisal and Assessment Procedures
The determination of appraised and assessed valuation and the collection of property taxes for all political
subdivisions in the State of Kansas are the responsibility of the various counties. The Saline County appraiser
annually determines the appraised valuation of property located in the City. The appraiser's determination is based
on a number of criteria established by Kansas's statute. All property, with the exception of agricultural land, is
appraised based on estimated fair market value. Agricultural property is appraised based on productivity value.
Kansas statutes require that each parcel of real property be reviewed and inspected by the county appraiser once
every four years for taxation purposes. Once appraised valuations have been determined, they are multiplied by the
applicable statutory assessment rates to arrive at the assessed valuations. The total assessed valuation is then used to
establish property tax rates.
Property Assessment Rates
In order to determine the assessed valuation of a parcel of property for taxation purposes, the county
appraiser multiplies the appraised value of the parcel by the applicable assessment rate. Current property assessment
rates were established in 1986, effective in 1989, and slightly modified in 1992. The most significant 1992
modifications involved lowering the assessment rate on commercial and industrial real property from 30% to 25%
and on residential property from 12% to 11.5%.
26
The following table shows the current assessment rates for the different classes of taxable tangible property
within the State of Kansas.
Real Property:
Residential
Commercial and Industrial-
Real Property
Agricultural Land (I)
Agricultural Improvements
Vacant Lots
Not-for-Profit (2)
All Other
Personal Property:
Mobile Homes
Mineral Leaseholds (large)
Mineral Leaseholds (small)
Commercial & Industrial
Machinery & Equipment
All Other
Utilities:
Railroads
All Other Public Utilities
Motor Vehicles:
Property Exempt:
Property used for the following purposes, or portions thereof, are exempt from taxation
provided certain statutory requirements are met: religious, educational, literary, scientific,
benevolent, alumni associations, veterans' organizations, or charitable purposes, including
parsonages and community service organizations providing humanitarian services.
11.5%
25.0
30.0
25.0
12.0
12.0
30.0
11.5%
30.0
25.0
25.0
30.0
federally mandated rate
33.0%
20.0% (3)
(1) Agricultural land is valued based on the productivity value of the property and not estimated market valuation.
(2) A bill passed by the Kansas Legislature in 1994 clarified this class of property to include all property owned
and operated by not-for-profit organizations not subject to federal income taxation pursuant to paragraphs (2),
(3), (4), (7), (8), or (10) of Subsection C of Section 501 of the federal internal revenue code. This bill
specifically established that private, not-for-profit country clubs would be assessed at 12% for all land that does
not accommodate buildings or improvements.
(3) Effective January 1, 1996, the applicable assessment rates on motor vehicles was reduced from 30% of market
value to 20% of market value over a five-year period in the following increments: 1996-28.5%; 1997-
26.5%; 1998-24.5%; 1999-22.5%; and 2000-20.0%.
Eaualization Ratios
Annually, the Property Valuation Division of the Kansas Department of Revenue conducts a study to
compare the assessed valuation of real property to estimated market value based on property sale prices. The study
derives an equalization ratio which, when divided into assessed valuation, provides a means to approximate actual
market value. According to the 1998 Real Estate Assessment/Sales Ratio Study, the equalization ratio for
residential real property in Saline County was 11.50%, and commercial and industrial property was 25.60%.
LEGAL MATTERS
Legal matters incident to the authorization, issuance, and sale of the Notes and Bonds by the City and the
tax-exempt status thereof are subject to the approval of Gilmore & Bell, P.C., Kansas City, Missouri, Bond Counsel,
whose approving opinion accompanies the Notes and Bonds. The opinions are dated and given on and speak only as
of the date of original delivery of the Notes and Bonds. Bond Counsel has not participated in the preparation of this
Official Statement except for the sections titled INTRODUCTORY STATEMENT, THE NOTES, THE BONDS,
LEGAL MATTERS, TAX EXEMPTION, CONTINUING DISCLOSURE, and APPENDIX B.
27
TAX EXEMPTION
Federal Tax Exemption
In the opinion of Gilmore & Bell, P.C., Bond Counsel, under existing law, the interest on the Notes and
Bonds (including any original issue discount properly allocable to an owner thereof) is excluded from gross income
for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum
tax imposed on individuals and corporations. It should be noted, however, that for the purpose of computing the
alternative minimum tax imposed on corporations (as defmed for federal income tax purposes), such interest is taken
into account in determining adjusted current earnings. The opinions set forth in this paragraph are subject to the
condition that the City comply with all requirements of the Internal Revenue Code of 1986, as amended (the
"Code"), that must be satisfied subsequent to the issuance of the Notes and Bonds in order that interest thereon be,
or continue to be, excluded from gross income for federal income tax purposes. The City has covenanted to comply
with each such requirement. Failure to comply with certain of such requirements may cause the inclusion of interest
on the Notes and Bonds in gross income for federal income tax purposes retroactive to the date of issuance of the
Notes and Bonds. The Notes and Bonds are "qualified tax-exempt obligations" within the meaning of Section
265(b)(3) of the Code, and, in the case of certain financial institutions (within the meaning of Section 265(b)(5) of
the Code), a deduction is allowed for 80 percent of that portion of such financial institution's interest expense
allocable to interest on the Notes and Bonds.
Orillinal Issue Discount
In the opinion of Bond Counsel, subject to the conditions set forth above, the original issue discount in the
selling price of each Note and Bond purchased in the original offering at a price less than the par amount thereof (the
"OlD Securities"), to the extent properly allocable to each owner of such Note or Bond, is excluded from gross
income for federal income tax purposes with respect to such owner. Original issue discount is the excess of the
stated redemption price at maturity of an OlD Security over the initial offering price to the public, excluding
underwriters and intermediaries, at which price a substantial amount of the OlD Securities of such maturity were
sold.
Under Section 1288 of the Code, original issue discount on tax-exempt bonds accrues on a compound
basis. The amount of original issue discount that accrues to an owner of an OlD Security during any accrual period
generally equals (i) the issue price of such OlD Security plus the amount of original issue discount accrued in all
prior accrual periods, multiplied by (ii) the yield to maturity of such OlD Security (determined on the basis of
compounding at the close of each accrual period and properly adjusted for the length of the accrual period), less (iii)
any interest payable on such OlD Security during such accrual period. The amount of original issue discount
accrued in a particular accrual period will be considered to be received ratably on each day of the accrual period,
will be excluded from gross income for federal income tax purposes, and will increase the owner's tax basis in such
OlD Security. Any gain realized by an owner from a sale, exchange, payment or redemption of an OlD Security
will be treated as gain from the sale or exchange of such OlD Security.
As noted above, original issue discount is the excess of the "stated redemption price at maturity" of a bond
or note over the initial offering price to the public. Under Code section 1273, "stated redemption price at maturity"
of a bond or note is the sum of all payments on such bond or note, other than qualified stated interest payments.
Qualified stated interest is stated interest that is unconditionally payable at least annually at a single fixed rate. For
most bonds and notes, all of the interest is "qualified stated interest," and the stated redemption price at maturity is
simply the par amount of the obligation. But interest on the Notes is payable more than one year after the delivery of
such notes. Therefore, the interest payable on Notes is not qualified stated interest and is included in the stated
redemption price at maturity. Original issue discount on the Notes is the par amount, plus all interest to be paid on
the Notes, minus the initial offering price to the public.
Bond Counsel expresses no opinion regarding other federal tax consequences arising with respect to the
Notes and Bonds.
28
Kansas Tax Exemption
The interest on the Bonds and the Notes is exempt from Kansas income taxation.
Other Tax Conseauences
Prospective purchasers of the Notes and Bonds should be aware that (i) Section 265 of the Internal Revenue
Code of 1986 (the "Code"), denies a deduction for interest on indebtedness incurred or continued to purchase or
carry the Notes and Bonds, except with respect to certain ftnancial institutions (within the meaning of Section
265(b)(5) of the Code), (ii) with respect to insurance companies subject to the tax imposed by Section 831 of the
Code, Section 832(b)(5)(B)(i) reduces the deduction for loss reserves by 15 percent of the sum of certain items,
including interest on the Notes and Bonds, (iii) interest on the Notes and Bonds earned by certain foreign
corporations doing business in the United States could be subject to a branch proftts tax imposed by Section 884 of
the Code, (iv) passive investment income, including interest on the Notes and Bonds, may be subject to federal
income taxation under Section 1375 of the Code for Subchapter S corporations that have Subchapter C earnings and
proftts at the close of the taxable year if greater than 25% of the gross receipts of such Subchapter S corporation is
passive investment income, and (v) Section 86 of the Code requires recipients of certain Social Security and certain
Railroad Retirement beneftts to take into account in determining gross income, receipts, or accruals of interest on the
Notes and Bonds.
Bond Counsel expresses no opinion regarding these tax consequences. Purchasers of the Notes and Bonds
should consult their own tax advisors as to the applicability of these tax consequences.
RATINGS
The City has applied to Moody's Investors Service for a rating on the Notes and the Bonds. Any
explanation of the signiftcance of such ratings, when received, may be obtained only from said rating agency. There
is no assurance that the ratings will remain for any given period of time or that they may not be lowered or
withdrawn entirely by the rating services if, in their judgment, circumstances so warrant. Any such downward
change in or withdrawal of the ratings may have an adverse effect on the market price of the Notes. The City's other
outstanding notes and bonds have been rated "MIG 1" and "A 1 ", respectively, by Moody's.
UNDERWRITING
The Notes were purchased at public sale on , 2000, by
Bidder") at a price equal to , plus accrued interest to the date of closing.
(the "Successful
The Bonds were purchased at public sale on , 2000, by
Bidder") a price equal to , plus accrued interest to the date of closing.
(the "Successful
are collectively referred to herein as the "Underwriters".
ABSENCE OF MATERIAL LITIGATION
The Transcript of Proceedings will contain a certiftcate of non-litigation dated as of the closing date and
executed by the City to the effect that there is no controversy, suit, or proceeding of any kind .pending or, to the
knowledge of the City, threatened wherein or whereby any question is raised, or may be raised, questioning,
disputing, or affecting in any way the legal organization of the City or its boundaries or the legality of any official
act shown to have been done regarding the issuance of the Notes and Bonds or the constitutionality or validity of the
obligation represented by the Notes and Bonds or the means provided for the payment of the Notes and Bonds.
29
CONTINillNG DISCLOSURE
The Securities and Exchange Commission (the "SEC") has promulgated amendments to Rule 15c2-12 (the
"Rule"), requiring continuous secondary market disclosure for issues sold on or after July 3, 1995. In the Bond
Ordinance and the Note Resolution, the City has covenanted to provide annually certain financial infonnation and
operating data and other infonnation necessary to comply with the Rule, and to transmit the same or cause the same
to be transmitted to certain national repositories, any state repository, and the Municipal Securities Rulemaking
Board, as applicable. This covenant is for the benefit of and is enforceable by the owners of the Bonds. See
APPENDIX B for further details concerning continuing disclosure requirements. The City is in compliance with
any prior continuing disclosure undertaking.
CERTIFICATION OF THIS OFFICIAL STATEMENT
The preparation and distribution of this Preliminary Official Statement has been authorized by the City.
This Preliminary Official Statement is hereby duly approved by the governing body of the City and "deemed fmal",
except for the omission of certain infonnation as provided in Securities and Exchange Commission Rule 15c2-12 as
of the date on the cover page hereof.
Dated: June 19,2000
CITY OF SALINA, KANSAS
By /s/
Alan E. Jilka
Mayor
ATTEST:
/s/
Rodnev Franz
Finance Director
30
APPENDIX A
Financial Statements
Since 1992, the City's comprehensive annual fmancial reports have received the Certificate of
Achievement for Excellence in Financial Reporting award by the Government Finance Officers Association. The
Certificate of Achievement was developed to encourage governmental units to prepare and publish an easily
readable and understandable fmancial report covering all funds and financial transactions of the government during
the fiscal year.
The following is a portion of the report on examination of the City of Salina, Kansas for the fiscal year
ended December 31, 1999, prepared by the firm of Agler & Gaeddert, Chartered, Certified Public Accountants,
Ottawa, Kansas.
(THIS PAGE LEFT BLANK INTENTIONALLY)
234 South Main
P.O. Box 1020
Ottawa. Kansas 66067
(785) 242.3170
(785) 242-9250 FAX
JtJ Agl~f,,~g~~2~~r~n~HARTERED
w. Keith Gaeddert
Lucille L Hinderliter
Raymond E. t./ieyer, Jr.
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Honorable Mayor
and the Board of the City Commissioners
City of Salina, Kansas
We have audited the accompanying general purpose fmancial statements of the City of Salina, Kansas as of and for the
year ended December 31, 1999 as listed in the table of contents to the fmancial section. These general purpose fmancial
statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general
purpose fmancial statements based on our audit. We did not audit the fInancial statements of the Salina Airport
Authority and the Housing Authority of the City of Salina, which are discretely presented component units in the
accompanying fmancial statements. Those financial statements were audited by other auditors whose reports thereon
have been furnished to us, and our opinion, insofar as it relates to the amounts included for the Salina Airport Authority
.and the Housing Authority of the City of Salina, is based solely on the reports of the other auditors.
. .
We conducted our audit in acCordance with generally accepted auditing standards; the Kansas Municipal Audit Guide
and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require
that we plan andperfonn,the audit to obtain reasonable assurance about whether the general purpose fmancial statements
are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the. amounts and
disclosures in the general purpose fmancial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as. e'faluating the overall general purpose fInancial statement
presentation. We believe that our audit and.the report of oiherauditors provide a reasonable basis for our opinion.
In our opinion, based on our audit and the reports of other auditors, the general purpose fmancial statements referred to
above present fairly, in all material respects, the fmancial position of the City of Salina, Kansas as of December 31,
1999, and the results of its operations and cash flows of its proprietary fund types and nonexpendable trust funds for the
year then ended in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated May 12, 2000 on our
consideration of the City of Salina, Kansas' internal control structure and a report dated May 12,2000 on its compliance
with laws and regulations.
A-I
~
INPACT
l~;" ~"II..r'~'",,,,, ". .\,'(~ i')l
"~ ....;h...:-....; ,,::.-.:"."j...~t\
Our audit was conducted for the purpose of fonning an opinion on the general purpose financial statements taken as a
whole. The combining, individual fund and account group financial statements, schedules and additional infonnation
listed in the table of contents to the financial section are presented for purposes of additional analysis and are not a
required part of the general purpose financial statements of the City of Salina, Kansas. Such additional infonnation has
been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our
opinion, is fairly presented in all material respects in relation to the general purpose fmancial statements taken as a
whole.
The other data included in this report, designated as the "Statistical Section" in the table of contents, has not been
audited by us and, accordingly, we express no opinion on that data.
~. oJ x!;;dJA d;;t;;;j
May 12, 2000
,
,
A-2
GENERAL PURPOSE FINANCIAL STATEMENTS
A-3
City of Salina, Kansas
COMBINED BALANCE SHEET
ALL FUND TYPES, ACCOUNT GROUPS AND
DISCRETELY PRESENTED COMPONENT UNITS
December 31, 1999
Governmental Fund Types
Special Debt Capital
General Revenue Service Projects
ASSETS AND OTHER DEBITS
ASSETS
Cash and investments $ 6,845,472 $ 3,177,391 $ 779,992 $ 851,756
Cash and investments -
non-expendable trusts 0 0 0 0
Cash with fiscal agent 0 0 6,895 0
Receivables (net of allowance
for uncollectibles)
Accounts 213,108 33,200 0 0
Taxes 2,861,334 3,621,011 1,478,426 0
Interest 83,782 0 0 0
Notes 0 12,615 0 0
Inventory and prepaid supplies 121,750 0 0 0
Due from funds 276,917 0 0 0
Restricted assets
Cash and investments' 0 0 0 0
Fixed assets (net of accumulated
depreciation, where applicable) 0 0 0 0
Financing leases o. 0 0 0
Deferred charges 6 0 0 0
OTHER DEBITS
Amount available in debt service
funds 0 0 0 0
Amount to be provided for
retirement of general long-term
debt 0 0 0 0
Total assets and other
debits $ 10,402,363 $ 6,844,217 $ 2,265,313 $ 851,756
LIABILITIES, EQUITY
AND OTHER CREDITS
LIABILITIES
Accounts payable $ 327,379 $ 57,387 $ 0 $ 0
Retainage payable 9,963 3,642 0 13,436
Due to funds 0 276,917 0 0
Meter deposits payable 0 0 0 0
Health claims payable 0 0 0 0
Matured principal and
interest payable 0 0 6,895 0
A-4
The accompanying notes are an integral part of this statement.
Statement 1
Proprietary
Fund Types
Fiduciary
Fund Types
Total
Primary
Government
(Memoran-
dum Only)
Enterprise
Internal
Service
Trust and
Agency
Account Groups
General General
Fixed Long-
Assets Term Debt
$ 12,690,266 $ 2,444,939 $ 239,151 $ 0 $ 0 $ 27,028,967
0 0 253,332 0 0 253,332
0 0 0 0 0 6,895
962,633 0 0 0 0 1,208,941
0 0 0 0 0 7,960,771
0 0 0 0 0 83,782
0 0 0 0 0 12,615
480,971 39,939 0 0 0 642,660
0 0 0 0 0 276,917
11,804,132 , , 0 0 0 0 11,804,132
55,355,534 717,034 0 27,454,454 0 83,527,022
0 0 0 .. 0 0 0
,.
517,819 0 0 0 0 517,819
o
o
o
o
779,992
779,992
o
o
o
o
15,901,663
15,901,663
$ 81,811,355 $
3,201,912 $
492,483 $ 27,454,454 $ 16,681,655 $ 150,005,508
$ 404,220 $ 103,500 $ 199,242 $ 0 $ 0 $ 1,091,728
280,686 0 0 0 0 307,727
0 0 0 0 0 276,917
90,888 0 0 0 0 90,888
0 597,676 0 0 0 597,676
0 0 0 0 0 6,895
A-S
cont.
City of Salina, Kansas
COMBINED BALANCE SHEET
ALL FUND TYPES, ACCOUNT GROUPS AND
DISCRETELY PRESENTED COMPONENT UNITS
December 31, 1999
Governmental Fund Types
Special Debt Capital
General Revenue Service Projects
LIABILITIES - continued
Payable from restricted assets
Accrued interest payable $ 0 $ 0 $ 0 $ 0
Revenue bonds payable - current 0 0 0 0
Deferred interest-fmancing leases 0 0 0 0
Accrued compensated absences 0 0 0 0
Loans payable. - current 0 0 0 0
General obligation bonds - current 0 0 0 0
Capital leases payable - current 0 0 0 0
Temporary notes payable 0 0 0 4,650,000
Loans payable 0 0 0 0
General obligation bonds payable 0 o. 0 0
Revenue bon,ds payable 0 0 0 0
Capital leases payable 0 0 0 0
Mortgages payable 0 0 0 0
Landfill closure and postclosure 0 0 0 0
Deferred revenue 2,174,208 3,043,636 1,478,426 0
TotaIliabilities 2,511,550 ",. 3,381,582 1,485,321 4,663,436
EQUITY AND OTHER CREDITS
Investment in general fixed assets 0 0 0 0
Contributed capital 0 0 0 0
Retained Earnings
Reserved for bond retirement 0 0 0 0
Reserved for postclosure care 0 0 0 0
Unreserved 0 0 0 0
Fund balances
Reserved for encumbrances 837,108 207,614 0 2,166,752
Reserved for notes receivable 0 12,615 0 0
Unreserved
Designated for debt service 0 0 779,992 0
Undesignated (deficit) 7,053,705 3,242,406 0 (5,978,432)
Total equity and other credits 7,890,813 3,462,635 779,992 (3,811,680)
Total liabilities, equity and
other credits $ 10,402,363 $ 6,844,217 $ 2,265,313 $ 851,756
A-6
The accompanying notes are an integral palt of this statement.
Proprietary Proprietary Fiduciary Total
Fund Types Fund Types Fund Types Account Groups Primary
General General Government
Internal Trust and Fixed Long- (Memoran-
Enterprise Service Agency Assets Term Debt dum Only)
$ 309,134 $ 0 $ 0 $ 0 $ 0 $ 309,134
735,000 0 0 0 0 735,000
0 0 0 0 0 0
421,017 49,997 0 0 1,889,982 2,360,996
49,740 0 0 0 0 49,740
763,754 0 0 0 2,181,481 2,945,235
0 98,848 0 0 0 . 98,848
1,000,000 0 0 0 0 5,650,000
3,050,955 0 0 0 0 3,050,955
5,548,103 0 0 0 12,610,192 18,158,295
24,865,000 0 0 0 0 24,865,000
0 192,739 0 0 0 192,739
0 0 0 0 0 0
1,007,235 0 0 0 0 1,007,235
0 0 0 0 0 6,696,270
38,525,732 1,042,760 199,242. 0 16,681,655 68,491,278
0 0 0 27,454,454 0 27,454,454
8,736,894 621,543 0 0 0 9,358,437
2,810,428 0 0 0 0 2,810,428
97,533 0 0 0 0 97,533
31,640,768 1,537,~09 0 0 0 33,178,377
0 0 0 0 0 3,211,474
0 0 0 0 0 12,615
0 0 0 0 0 779,992
0 0 293,241 0 0 4,610,920
43,285,623 2,159,152 293,241 27,454,454 0 81,514,230
$ 81,811,355 $ 3,201,912 $ 492,483 $ 27,454,454 $ 16,681,655 $ 150,005,508
A-7
cont.
City of Salina, Kansas
COMBINED BALANCE SHEET
ALL FUND TYPES, ACCOUNT GROUPS AND
DISCRETELY PRESENTED COMPONENT UNITS
December 31, 1999
Total Total
Primary. Component Units Reporting
Government Salina Salina Entity
(Memoran- Airport Housing (Memoran-
dum Only) Authority Authority dum Only)
ASSETS AND OTHER DEBITS
ASSETS
Cash and investments $ 27,028,967 $ 73,661 $ 559,855 $ 27,662.483
Cash and investments -
non-expendable trusts 253,332 0 0 253,332
Cash with fiscal agent 6,895 0 0 6,895
Receivables (net of alIowance
for uncollectibles)
Accounts 1,208,941 121,512 75,784 1,406,237
Taxes 7,960,771 714,772 0 8,675,543
Interest 83,782 0 0 83,782
Notes 12,615 0 0 12,615
Inventory and prepaid'supplies 642,660 2,524 11,203 656,387
Due from funds 276,917 0 0 276,917
Restricted. assets
Cash and investments.' 11,804,132 85,000 67,888 11,957.020
Fixed assets (net of accumulated
depreciation, where applicable) 83,527.022 24.584,752. 6,945.876 115.057.650
'Financing leases 0 1.260.228 0 1.260.228
Deferred charges 517,819' 102,094 0 619,913
OTHER DEBITS
Amount available in debt service
funds 779,992 0 0 779,992
Amount to be provided for
retirement of generallong-tenn
debt 15,901,663 0 .0 15,901,663
Total assets and other
debits $ 150.005,508 $ 26,944,543 $ 7,660,606 $ 184.610,657
LIABILITIES, EQUITY
AND OTHER CREDITS
LIABILITIES
Accounts payable $ 1,091,728 $ 141,252 $ 80,490 $ 1,313.470
Retainage payable 307.727 0 0 307,727
Due to funds 276,917 0 0 276.917
Meter deposits payable 90,888 0 0 90,888
Health claims payable 597,676 0 0 597,676
Matured principal and
interest payable 6,895 0 0 6,895
A-8
The accompanying notes are an integral part of this statement.
cont.
City of Salina, Kansas
Statement I
Pae:e 4
COMBINED BALANCE SHEET
ALL FUND TYPES, ACCOUNT GROUPS AND
DISCRETELY PRESENTED COMPONENT UNITS
December 3 I, 1999
Total Total
Primary Component Units Reporting
Government Salina Salina Entity
(Memoran- Airport Housing (Memoran-
dum Only) Authority Authority dum Only)
LIABILITIES - continued
Payable from restricted assets
Accrued interest payable $ 309,134 $ 108,410 $ 0 $ 417,544
Revenue bonds payable - current 735,000 60,000 0 795,000
Deferred interest-financing leases 0 65,092 0 65,092
Accrued compensated absences 2,360,996 0 0 2,360,996
Loans payable - current 49,740 48,978 0 98,718
General obligation bonds - current 2,945,235 630,000 0 3,575,235
Capital leases payable - current 98,848 0 0 98,848
Temporary notes payable 5,650,000 0 0 5,650,000
Loans payable 3,050,955 371,551 0 3,422,506
General obligation bonds payable 18,158,295 4,940,000 0 23,098,295
Revenue bonds payable 24,865,000 440,000 0 25,305,000
Capital leases payable 192,739 o. 0 192,739
Mortgages payable 0 0 634,051 634,051
Landfill closure and postclosure 1,007,235 0 0 1,007,235
Deferred revenue ' 6,696,270 748,808 6,906 7,451,984
Total liabilities 68,491,278 7,554,091 721,447 76,766,816
EQUITY AND OTHER CREDITS
Investment in general fixed assets 27,454,454 0 6,945,706 34,400,160
Contributed capital 9,358,437 10,093,641 0 19,452,078
Retained Earnings
Reserved for bond retirement 2,810,428 0 0 2,810,428
Reserved for postc1osure care 97,533 0 0 97,533
Unreserved 33,178,377 9,296,811 0 42,475,188
Fund balances
Reserved for encumbrances 3,211,474 0 0 3,211,474
Reserved for notes receivable 12,615 0 0 12,615
Unreserved
Designated for debt service 779,992 0 0 779,992
U ndesignated (deficit) 4,610,920 0 (6,547) 4,604,373
Total equity and other credits 81,514,230 19,390,452 6,939,159 107,843,841
Total liabilities, equity and
other credits $ 150,005,508 $ 26,944,543 $ 7,660,606 $ 184,610,657
The accompanying notes are thti~tegral part of this statement.
City of Salina, Kansas
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES _
ALL GOVERNMENTAL FUND TYPES, EXPENDABLE TRUST FUNDS
AND DISCRETELY PRESENTED COMPONENT UNITS
For the fiscal year ended December 31, 1999
Governmental Fund Types
Special Debt Capital
General Revenue Service Projects
Revenues
Taxes $ 15,484,334 $ 4,579,346 $ 1,250,953 $ 0
Intergovernmental 1,750,941 2,632,340 0 0
Fees and charges 1,437,526 630,803 0 0
Special assessments 0 0 1,086,557 0
Other revenues 2,616,771 1,447,667 193,125 831,465
Total revenues 21,289,572 9,290,156 2,530,635 831,465
Expenditures
Current
General government 2,012,477 165,955 0 0
Public safety 8,442,693 2,004,926 0 0
Public works 2,706,176 761,717 0 0
Culture and recreation 1,707,818 2,705,266 0 0
Public health and sanitation 539,931 133,502 0 0
Community development 2,678,390 1,421,827 0 0
Other 0 0 0 0
Capital outlay 1,778,158 1,866,631 0 5,524,833
Debt service
Principal 0 0 1,851,481 9,440,000
Interest and other charges 0 0 640,472 346,182
Total expenditures 19,865,643 9,059,824 2,491,953 15,311,015
Excess (deficiency) of revenues
over (under) expenditures 1,423,929 230,332 38,682 (14,479,550)
A-IO
The accompanying notes are an integral part of this statement.
con!.
Statement 2
Fiduciary Total Component Total
Fund Type Primary Unit Reporting
Government Salina Entity
Expendable (Memo ran- Housing (Memo ran-
Trust dum Only) Authority dum Only)
$ 0 $ 21,314,633 $ 0 $ 21,314,633
0 4,383,281 828,405 5,211,686
0 2,068,329 274,023 2,342,352
0 1,086,557 0 1,086,557
1,959 5,090,987 39,882 5,130,869
1,959 33,943,787 1,142,310 35,086,097
0 2,178,432 0 2,178,432
0 10,447,619 0 10,447,619
0 3,467,893 0 3,467,893
0 4,413,084 0 4,413,084
2,401 675,834 0 675,834
0 '4,100,217 907,805 5,008,022
0 0 150,351 150,351
0 9,169,622 122,305 9,291,927
0 11,291,481 0 11,291,481
0 986,654 43,460 1,030,114
2,401 46,730,836 1,223,921 47,954,757
(442) (12,787,049) (81,611) ( 12,868,660)
A-ll
cont.
City of Salina, Kansas
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
ALL GOVERNMENTAL FUND TYPES, EXPENDABLE TRUST FUNDS
AND DISCRETELY PRESENTED COMPONENT UNITS
For the fiscal year ended December 31, 1999
Governmental Fund Types
Special Debt Capital
General Revenue Service Projects
Other financing sources (uses)
Operating transfers in $ 17,000 $ 632,073 $ 0 $ 675,000
Operating transfers out (1,004,179) (319,894) 0 0
Bond and temporary note proceeds 0 0 0 9,883,368
Sale of assets 59,557 0 0 0
Total other fmancing sources (uses) (927,622) 312,179 0 10,558,368
Excess (deficiency) of revenues and other
sources over (under) expenditures and
other uses 496,307 542,511 38,682 (3,921,182)
Fund balances (deficit), January 1 7,015,511 3,478,084 741,310 (30,998)
Residual equity transfer in 394,239 0 0 366,103
Residual equity transfer ~ut (15,244) (557,960) 0 (225,603)
Fund balances (deficit), December 31 $ 7,890,813 $ 3,462,635 $ 779,992 $ (3,811,680)
Th . A-:l? I fh.
e accompanymg notes are an mregra part 0 t is statement.
cont.
Statement 2
~
Fiduciary Total Component Total
Fund Type Primary Unit Reporting
Government Salina Entity
Expendable (Memoran- Housing (Memo ran-
Trust dum Only) Authority dum Only)
$ 0 $ 1,324,073 $ 0 $ 1,324,073
0 (1,324,073) 0 (1,324,073)
0 9,883,368 0 9,883,368
0 59,557 0 59,557
0 9,942,925 0 9,942,925
(442)
(2,844,124)
11,244,258
760,342
, (798,807)
(81,611)
40,351
o
o
75,064
(2,925,735)
11,319,322
760,342
(798,807)
o
o
$ 39,909 $ 8,361,669 $
(6,547) $ 8,355,122
A-13
City of Salina, Kansas
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES _
ACTUAL AND BUDGET - GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUNDS
For the fiscal year ended December 31, 1999
Total revenues
General Fund
Variance
Favorable
Actual Budget (Unfavorable)
$ 15,654,583 $ 15,805,291 $ (150,708)
1,756,732 1,684,942 7 I ,790
1,420,786 1,376,472 44,314
2,812,895 2,707,311 105,584
21,644,996 21,574,016 70,980
Revenues
Taxes
Intergovernmental
Fees and charges
Other revenues
Expenditures
Current
General government
Public safety
Public works
Public health and sanitation
Culture and recreation
Community development
Other
Capital outlay
Debt service
Principal
Interest and other charges
Cash reserve
1,797,584 1,943,113 145,529
8,336,635 8,692,245 355,610
3,253,338 3,562,582 309,244
539,161 539,445 284
1,698,834 1,721,558 22,724
2,327,073 2,314,568 (12,505)
0 .0 0
2,469,192 3,700,240 . 1,231,048
0 0 0
0 0 0
0 4,292,080 4,292,080
,20,42 1,8 I 7 26,765,83 I 6,344,014
1,223,179 (5,191,815) 6,414,994
17,000 17,000 0
(1,004, I 79) (510,000) (494, I 79)
59,557 30,000 29,557
(927,622) (463,000) (464,622)
Total expenditures
Excess (deficiency) of revenues over (under)
expenditures
Other financing sources (uses)
Operating transfers in
Operating transfers out
Sale of assets
Total other financing sources (uses)
A-14
The accompanying notes are an integral part of this statement.
Statement 3
Special Revenue Funds Debt Service Funds
Variance Variance
Favorable Favorable
Actual Budget (Unfavorable) Actual Budget (Unfavorable)
$ 4,588,040 $ 4,577,131 $ 10,909 $ 1,251,027 $ 1,252,740 $ (1,713)
1,664,835 1,635,140 29,695 0 0 0
877,475 831,537 45,938 0 0 0
192,733 511,700 (318,967) 1,279,682 1,307,438 (27,756)
7,323,083 7,555,508 (232,425) 2,530,709 2,560,178 (29,469)
133,667 144,385 10,718 0 0 0
1,854,943 2,137,681 282,738 0 0 0
747,793 835,922 88,129 0 0 0
133,502 136,769 3,267 0 0 0
1,525,704 1,614,568 88,864 0 0 0
655,814 684,519 28,705 0 0 0
32,925 34,073 1,148 0 0 0
1,721,833 1,995,741 273,908 0 0 0
0 0 0 1,851,481 1,851,631 150
0 0 0 640,546 641,377 831
0 1,859,524 1,859,524 0 808,480 808,480
6,806,181 9,443,182 2,637,001 2,492,027 3,301,488 809,461
516,902 (1,887,674) 2,404,576 38,682 (741,310) 779,992
627,894 286,000 341,894 0 0 0
(319,894) (672,346) 352,452 0 0 0
8,000 0 8,000 0 0 0
316,000 (386,346) 702,346 0 0 0
A-I5
rnnt
City of Salina, Kansas
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES _
ACTUAL AND BUDGET - GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUNDS
For the fiscal year ended December 31, 1999
General Fund
Variance
Favorable
Actual Budget (Unfavorable)
Excess (deficiency) of revenues and other
sources over (under) expenditures and
other uses $ 295,557 $ (5,654,815) $ 5,950,372
Unreserved fund balances, January 1 5,484,672 5,484,672 0
Prior year cancelled encumbrances 5,000 0 5,000
Residual equity transfer in 207,101 170,143 36,958
Residual equity transfer out (34,428) 0 (34,428)
Unreserved fund balances, December 31 5,957,902 $ 0 $ 5,957,902
Receivables reconciliation 984,016
Inventory reconciliation 121,750
Retainage reconciliation (9,963)
Encumbrance reconciliation 837,108
Non-budgeted funds 0
Fund balances, December 31 $ 7,890,813
,
,
A-16
The accompanying notes are an integral part of this statement.
Statement 3
Pal!:e2
Special Revenue Funds Debt Service Funds
Variance Variance
Favorable Favorable
Actual Budget (Unfavorable) Actual Budget (Unfavorable)
$ 832,902 $ (2,274,020) $ 3, I 06,922 $ 38,682 $ (741,310) $ 779,992
2,444,164 2,444,163 741,310 741,310 0
13,242 0 13,242 0 0 0
0 0 0 0 0 0
(557,960) (170,143) (387,817) 0 0 0
2,732,348 $ 0 $ 2,732,348 779,992 $ 0 $ 779,992
610,075 0
0 0
(3,642) 0
207,614 0
(83,760) 0
$ 3,462,635 $ 779,992
A-17
City of Salina, Kansas
COMBINED STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS/FUND BALANCES
ALL PROPRIETARY FUND TYPES, SIMILAR TRUST FUNDS AND
DlSCRETEL Y PRESENTED COMPONENT UNITS
For the fiscal year ended December 31, 1999
Fiduciary
Proprietary Fund Types Fund Type
Non-
Internal expendable
Enterprise Service Trust
Operating revenues
Charges for services $ 15,138,741 $ 4,779,188 $ 6,976
Reimbursements 18,158 56,836 0
Miscellaneous 256,189 940 0
Total operating revenues 15,413,088 4,836,964 6,976
Operating expenses
General government 0 4,980,345 0
Public works 10,077,057 0 0
Recreation 713,371 0 0
Other 0 0 35
Depreciation 2,832,353 165,110 0
Total operating expeqses 13,622,781 5,145,455 35
,
Operating income (loss) 1,790,307 (308,491) 6,941
Nonoperating revenues (expenses)
Use of money and property 1,321,945 126,616 II,963
Operating grants 452,0 II 0 0
Bond issuance costs (57,268) 0 0
Debt service (1,848,674) 0 0
Mill levy 0 0 0
Gain (loss) on disposition offixed.assets (4,191) 0 0
Total nonoperating revenues (expenses) (136,177) 126,616 II ,963
Net income (loss) 1,654,130 (181,875) 18,904
Add depreciation on assets acquired through
Federal contributions 0 0 0
Increase (decrease) in
retained earnings/fund balances 1,654,130 (181,875) 18,904
Retained earnings/fund balances, January 1 32,894,599 1,719,484 234,428
Retained earnings/fund balances, December 3 I $ 34,548,729 $ 1,537,609 $ 253,332
A-I8
The accompanying notes are an integral part of this statement.
Statement 4
Total Component Total
Primary Unit Reporting
Government Salina Entity
(Memorandum Airport (Memorandum
Only) Authority Only)
$ 19,924,905 $ .1,447,147 $ 21,372,052
74,994 0 74,994
257,129 26,965 284,094
20,257,028 1,474,112 21,731,140
4,980,345 0 4,980,345
10,077,057 0 10,077,057
713,371 0 713,371
35 1,104,108 1,104,143
2,997,463 925,397 3,922,860
18,768,271 ,2,029,505 20,797,776
,
1,488,757 (555,393) 933,364
1,460,524 158,858 1,619,382
452,011 0 452,011
(57,268) 0 (57,268)
(1,848,674) 069,561) (2,218,235)
0 783,363 783,363
(4,191) o. (4,191)
2,402 572,660 . 575,062
1,491,159 17,267 1,508,426
0 595,779 595,779
1,491,159 613,046 2,104,205
34,848,511 8,683,765 43,532,276
$ 36,339,670 $ 9,296,811 $ 45,636,481
A-19
City of Salina, Kansas
COMBINED STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES, SIMILAR TRUST FUNDS AND
DISCRETELY PRESENTED COMPONENT UNITS
For the fiscal year ended December 31, 1999
Fiduciary
Proprietary Fund Types Fund Type
Non-
Internal expendable
Enterprise Service Trust
Cash flows from operating activities
Cash received from customers and users $ 14,969,117 $ 4,352,061 $ 6,976
Cash received from quasi-external transactions 0 483,963 0
Cash paid to suppliers (6,358,175) (4,215,047) (35)
Cash paid to employees (4, I 07,627) (584,233) 0
Cash paid for quasi-external transactions (633,195) (31,133) 0
Other operating receipts 274,347 940 0
Net cash provided by
operating activities 4,144,467 6,551 6,941
Cash flows from capital and related
financing activities
Purchase and construction of fixed assets (4,247,387) (154,381) 0
Contributed capital 38,464 0 0
Proceeds from issuance of debt 2,164;841 0 0
Principal payments - temporary notes (500,000) 0 0
Principal payments - loans 0 0 0
Principal payments - gen. obligation bonds (808,522) 0 0
Principal payments - revenue bonds (700,000) 0 0
Interest paid (1,843,292) 0 0
Bond issuance costs 0 0 0
Proceeds from property tax 0 0 0
Principal received on financing leases 0 0 0
Interest received on financing leases 0 0 0
Principal received on long-term note 0 0 0
Proceeds from capital grants 0 0 0
Return of capital grant proceeds 0 0 0
Net cash used in capital and
related financing activities (5,895,896) (I 54,381) 0
Cash flows from investing activities
Interest received 1,321,945 126,616 11 ,963
Cash flows from noncapital financing activities
Operating grant receipts 452,0 II 0 0
Net increase (decrease) in cash and
cash equivalents 22,527 (21,214) 18,904
Cash and cash equivalents, January I 24,471,871 2,466,153 234,428
Cash and cash equivalents, December 31 A-20 $ 24,494,398 $ 2,444,939 $ 253,332
The accompanying notes are an integral part of this statement.
Statement 5
Total Component Total
Primary Unit Reporting
Government Salina Entity
(Memorandum Airport (Memorandum
Only) Authority Only)
$ 19,328,154 $ 1,386,088 $ 20,714,242
483,963 0 483,963
(10,573,257) (635,344) (11,208,601)
(4,691,860) (420,315) (5,112,175)
(664,328) 0 (664,328)
275,287 0 275,287
4,157,959 330,429 4,488,388
(4,401,768) (1,460,223) (5,861,991)
38,464 0 38,464
.
2,164,841 , 0 2,164,841
(500,000) 0 (500,000)
0 (48,013) (48,013)
(808,522) (I,880,000) (2,688,522)
(700,000) (55,000) (755,000)
(1,843,292) (400,040) (2,243,332)
0 (14,219) (14,219)
0 783,363 783,363
0 59,263 59,263
0 130,184. 130,184
0 1,374,760 . 1,374,760
0 97,971 97,971
0 (11,131) (11,131)
(6,050,277) (1,423,085) (7,473,362)
1,460,524 32,628 1,493,152
452,011 0 452,011
20,217 (1,060,028) (1,039,811)
27,172,452 1,218,689 28,391,141
$ 27,192,669 $ 158,661 $ 27,351,330
A-21
i"'nnt
City of Salina, Kansas
COMBINED STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES, SIMILAR TRUST FUNDS AND
DISCRETELY PRESENTED COMPONENT UNITS
For the fiscal year ended December 31, 1999
Total cash and cash equivalents
Fiduciary
Proprietary Fund Types Fund Type
Non-
Internal expendable
Enterprise Service Trust
$ 12,690,266 $ 2,444,939 $ 253,332
11,804,132 0 0
$ 24,494,398 $ 2,444,939 $ 253,332
Cash and investments
Restricted cash and investments
Reconciliation of operating income (loss)
to net cash provided by operating
activities
Operating income (loss)
$
1,790,307 $
(308,491) $
6,941
Adjustments to reconcile operating
income (loss) to net cash provided by
operating activities '
Depreciation expense
(Increase) decrease in accounts receivable
(Increase) decrease in deposits receivable
(Increase) decrease in inventory
Increase (decrease) in accounts payable
Increase (decrease) in retain age payable
Increase (decrease) in accrued compensated absences
Increase (decrease) in meter deposits payable
Increase (decrease) in claims payable
Increase (decrease) in deferred income
Increase (decrease) in landfill closure and postclosure
Net cash provided by
operating activities
2,832,353 165,110 0
(175,260) 0 0
0 0 0
(50,697) 6,575 0
(272,054) 41,735 0
13,155 0 0
(19,617) 7,359 0
5,636 0 0
0 94,263 0
0 0 0
20,644 0 0
$ 4,144,467 $ 6,551 $ 6,941
NON-CASH TRANSACTIONS:
Fixed assets in the amount of$14,352 were transferred from the Water/Sewer Fund to the Solid Waste Fund.
Fixed assets in the amount of $10,732 were transferred from the General Fixed Assets Account Group to
to Sanitation Fund. Fully depreciated fixed assets having an original cost of $60,619 were retired from the
Enterprise Funds. Fully depreciated fixed assets having an original cost of$63,621 were retired from the
Airport Authority.
The City acquired computer equipment at a cost of$291,587 through a lease-purchase arrangement in
the same amount.
A-22
The accompanying notes are an integral part of this statement.
Statement 5
Pal!e 2
Total Component Total
Primary Unit Reporting
Government Salina Entity
(Memorandum Airport (Memorandum
Only) Authority Only)
$ 15,388,537 $ 73,661 $ 15,462,198
11,804,132 85,000 11,889,132
$ 27,192,669 $ 158,661 $ 27,351,330
$
1,488,757 $
(555,393) $
933,364
2,997,463 925,397 3,922,860
(175,260) (74,784) (250,044)
0 0 0
(44,122) (2,524) (46,646)
(230,319) 50,973 (179,346)
13,155 0 13,155
(12,258) 0 (12,258)
5,636 0 5,636
94,263 o. 94,263
0 (13,240) . (13,240)
20,644 0 20,644
$ 4,157,959 $ 330,429 $ 4,488,388
A-23
City of Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Salina is a municipal corporation governed by five elected commissioners. As required by generally
accepted accounting principles, these fmancial statements present the City and its component units, entities for
which the government is considered to be fmancially accountable. Blended component units, although legally
separate entities, are, in substance, part of the City's operations and so data from these units is combined with data
of the primary government. The city has no blended component units to present for the year ended December 31,
1999. Each discretely presented component unit is reported in a separate column in the combined fmancial
statements to emphasize it is legally separated from the government.
Discretelv Presented Component Units
City of Salina Airport Authority - The Salina Airport Authority (Airport Authority) was created for the purpose
of accepting as surplus property portions of the former Schilling A.F.B that was closed by the United States
Department of Defense in June, 1965. One of the primary functions of the Airport Authority is to facilitate the
continued growth of jobs and payroll at the Airport Industrial Center. The Airport Authority is managed and
controlled by a five-member Board of Directors appointed by the Salina City Commission. Any director may be
removed by a majority vote of the Salina City Commission. The Airport Authority's basic mill levy (up to 3 mills)
requires the approval of the City Commission. The Commission must also approve the issuance of general
obligation debt by the Airport Authority. The Airport Authority is reported as an enterprise fund. The Airport
Authority has a December 31 fiscal year end.
Housing Authority of the City of Salina - The purpose of the Housing Authority of the City of Salina (Housing
Authority) is to administer Public Housing Programs authorized by the United States Housing Act of 1937. The
governing board is appointed by the Mayor of the City of Salina. Commissioners of the Housing Authority may be
removed by the City Commission. Revenue bonds for the Housing Authority must be issued by the City. The
financial liability of the Housing Authority is essentially supported by the operating and debt service subsidies
received under contract from the Federal government. The Housing Authority is reported as a governmental fund
type. The Housing Authority has a June 30 fiscal year end. Information in the accompanying financial statements
covers the fiscal year ended June 30, 1999.
Complete fmancial statements for each of the individual component units may be obtained at the entity's
administrative offices.
Salina Airport Authority
3237 Arnold Ave.
Salina, KS
Housing Authority of
the City of Salina
469 S 5th
Salina, KS
Joint Ventures
The City of Salina also participates with Saline County in two joint ventures. The Salina-Saline County Board of
Health was organized by the City and County to promote public health. The Salina County-City Building Authority
Was organized by the City and County to acquire, operate and maintain facilities for the administrative offices of
both governments. The primary governments each have an ongoing financial responsibility for the joint ventures.
Separate fmancial statements are available from the governing boards of each joint venture.
Board of Building
Health Authority
245,552 $ 355,472
2,616,643 679,768
440,671 244,069
Total fund balance, December 31, 1999
Total revenues, year ended December 3 I, 1999
Total revenues from City of Salina
$
A-24
City of Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES _ continued
B. Measurement Focus, Basis of Accounting and Basis of Presentation
The accounts of the City are organized and operated on the basis of funds and account groups. A fund is an
independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds
according to their intended purpose and is used to aid management in demonstrating compliance with fmance-
related legal and contractual provisions. The minimum number of funds is maintained consistent with legal and
managerial requirements. Account groups are a reporting device to account for certain assets and liabilities of the
governmental funds not recorded directly in those funds.
The city has the following fund types and account groups.
Governmental Funds are used to account for the City's general government activities. Governmental fund types
use the flow of current fmancial resources measurement focus and the modified accrual basis of accounting. Under
the modified accrual basis of accounting revenues are recognized when susceptible to accrual (Le., when they are
"measurable and available"). "Measurable" means the amount of the transaction can be determined and "available"
means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The
City considers property taxes as available if they are collected within 60 days after year end. A one-year availability
period is used for revenue recognition for all other governmental fund revenues. Expenditures are recorded when
the related fund liability is incurred, except for unmatured interest on general long-term debt which is recognized
when due, and certain compensated absences and claims and judgments which are recognized when the obligations
are expected to be liquidated with expendable available fmancial resources.
Property taxes, frahchise taxes, licenses, interest revenue, special assessments and charges . for services are
susceptible to accrual. Sales taxes collected and held by the State at year-end on behalf of the City are also
recognized as revenue. Entitlements and shared revenues are recorded at the time of receipt or earlier if the
susceptible to accrual criteria are met. Expenditure-dr:iven grants are recognized as revenue when the qualifying
expenditures have been incurred and all other grant requirements have been met.
The City reports deferred revenue on its combined balance sheet. Deferred revenues arise when a potential revenue
does not meet both the "measurable" and "available" criteria for recognition in the current period. Deferred
revenues also arise. when resources are received by the City before it has a legal claim to them, as when grant
monies are received prior to incurring qualifying expenditures. In subsequent periods, when both revenue
recognition criteria are met, or when the City has a legal claim to the resources, the liability for deferred revenue is
removed from the combined balance sheet and revenue is recognized. .
Governmental funds include the following fund types:
The general fund is the City's primary operating fund. It accounts for all fmancial resources of the general
government, except those required to be accounted for in another fund.
The special revenue funds account for revenue sources that are legally restricted to expenditure for specific
purposes (not including expendable trusts or major capital projects).
The debt service funds account for the servicing of the general long-term debt not being financed by proprietary or
nonexpendable trust funds of the City.
The capital projects funds account for the acquisition of fixed assets or the construction of major capital projects
not being fmanced by the proprietary or nonexpendable trust funds of the City.
A-25
City of Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-continued
B. Measurement Focus, Basis of Accounting and Basis of Presentation - continued
Proprietary funds are accounted for on the flow of economic resources measurement focus and use the accrual
basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded at the time
liabilities are incurred. The government applies all applicable F ASS pronouncements in accounting and reporting
for its proprietary operations. Proprietary funds include the following fund types:
The enterprise funds are used to account for those operations that are financed and operated in a manner similar to
private business or where the board has decided that the determination of revenues earned, costs incurred and/or net
income is necessary for management accountability.
The internal service funds account for operations that provide services to other departments or agencies of the
government, or to other governments, on a cost-reimbursement basis.
Fiduciary funds account for assets held by the City in a trustee capacity or as an agent on behalf of others. Trust
funds account for assets held by the City under the tenns of a formal trust agreement.
The expendable trust funds are accounted for in essentially the same manner as the governmental fund types,
using the same measurement focus and basis of accounting. Expendable trust funds account for assets where both
the principal and interest may be spent.
The nonexpendable trust funds are accounted for in essentially the same manner as the proprietary funds, using
the same measurement focus and basis of accounting. Nonexpendable trust funds account forassets of which the
principle may not be spent.
The agency funds are custodial in nature and do not present results of operations or have a measurement focus.
Agency funds are accounted for using the modified accrual basis of accounting. These funds are used to account
for assets that the City hoids for others in an agency capacity.
Account Groups. The general fixed assets account group is used to account for fixed assets of the City. The
general long-term debt account group is used to account for generallong-tenn debt and certain other liabilities of
the City.
C. Assets, Liabilities and Equity
1. Pooled Cash and. Investments
The City maintains a cash and investment pool that is available for use by all funds managed by the city. Each fund
type's portion of this pool is displayed on the combined balance sheet as "Cash and Investments". The city's cash
and cash equivalents are considered to be cash on hand, demand deposits and short-tenn investments with original
maturities of three months or less from the date of acquisition.
Investments in the Kansas Municipal Pool are carried at fair value.
Cash balances from all funds are invested to the extent available in certificates of deposit and other authorized
investments. Investments with maturity dates greater than three months are stated separately. Earnings from these
investments, unless specifically designated, are allocated monthly to the investing fund based on the percentage of
funds invested to total investments. All investments are carried at fair value.
A-26
City of Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 3 I, 1999
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
C. Assets, Liabilities and Equity - continued
2. Receivables and Payables
Transactions between funds that are representative of lendinglborrowing arrangements outstanding at the end of the
fiscal year are referred to as either "interfund receivables/payables" (i.e., the current portion of interfund loans) or
"advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances
between funds are reported as "due to/from other funds".
Accounts Receivable. The City records revenues when services are provided. All receivables are shown net of an
allowance for uncollectible amounts.
Property taxes receivable. The determination of assessed valuations and the collections of property taxes for all
political subdivisions in the State of Kansas is the responsibility of the various counties. The office of the County
Appraiser annually determines assessed valuations and the County Clerk spreads the annual assessment on the tax
rolls. The County Treasurer is the tax collection agent for all taxing entities within the county. In accordance with
state statutes, property taxes levied during the current year are a revenue source to be used to fmance the budget of
the ensuing year. One-half of the property taxes are due December 20, prior to the fiscal year for which they are
budgeted, and the second half is due the following June 20. This procedure eliminates the need to issue tax
anticipation notes since funds will be on hand prior to the begirming.of each fiscal year. The City Treasurer draws
down all available funds from the County Treasurer's office in two-month intervals;
Collection of current year property tax by the County Treasurer is not completed, apportioned nor distributed to the
various subdivisions until the succeeding year, such procedure being in conformity with governing state statutes.
Consequently, current year property taxes receivable are not available as a resource that can be used to finance the
current year operations of the City. Accruals of uncoll~~ted current year property taxes are offset by deferred
revenue and are identical to the adopted budget for 2006. It is not practicable to apportion delinquent taxes held by
the County Treasurer and, further, the amounts thereof are not material in relationship to the fmancial statements
taken as a whole.
3. Inventories
Inventories are valued at cost using the first-inlfirst-out (FIFO) method. The costs of governmental fund-type
inventories are recorded as expenditures when consumed.
4. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items.
5. Restricted Assets
Certain proceeds of enterprise fund revenue bonds and general obligation bonds, as well as certain resources set
aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by
applicable bond covenants. The "Water and Sewer Principal and Interest" account is used to segregate resources
accumulated for debt service payments over the next twelve months. The "Debt Service Reserve" account is used
to report resources set aside to make up potential future deficiencies in the "Water and Sewer Principal and Interest
Account" .
A-27
City of Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
C. Assets, Liabilities and Equity -continued
5. Restricted Assets - continued
The "Bond Escrow" account is used to report resources set aside in a "crossover refunding" transaction. Under the
crossover arrangement certain bonds of the City were refunded, with the proceeds placed in the bond escrow
account. The bond escrow account and the refunded bonds will remain on the City's books until a specified future
date when the bonds will be considered defeased and the City will assume the repayment of the refunding bonds.
6. Fixed Assets
Fixed assets used in governmental fund types of the City are recorded in the general fixed assets account group at
cost or estimated historical cost if purchased or constructed. Donated fixed assets are recorded at their estimated
'fair value at the date of donation. Assets in the general fixed assets account group are not depreciated. Interest
incurred during construction is not capitalized on general fixed assets.
Public domain (infrastructure) general fixed assets (e.g., roads, bridges, sidewalks and other assets that are
immovable and of value only t6 the government) are not capitalized. The cost of normal maintenance and repairs
that do not add to the value of the assets or materially extend assets' lives are not included in the general fixed assets
account group.
Property, plant and equipment in the proprietary funds of the government are recorded at cost. Property, plantand
equipment donated tQ the proprietary fund type operations are recorded at their estimated fair value at the date of
donation.
Major outlays for capital assets and improvements are capitalized in proprietary funds as projects are constructed.
Interest incurred during the construction phase of proprietary fund fixed assets is reflected in the capitalized value
of the asset constructed, net of interest earned on the invested proceeds over the same period.
Property, plant and equipment are depreciated in the proprietary and similar trust funds of the government using the
straight line method over the following estimated useful lives:
Assets
Buildings
Other Equipment
Vehicles
Utility Plant & Equipment
Years
20-50
5-10
7-10
10-70
A-28
City of Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 3 I, 1999
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES _ continued
C. Assets, Liabilities and Equity - continued
7. Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All
employees of the City, except temporary and part time employees, may accumulate sick leave at a rate of 8 or II
hours per month depending on their work duty schedule. There is no limit on the amount of sick leave that can be
accumulated. Employees with more than five years of service with the City are paid for one-third of their
accumulated sick leave at their current wage scale upon termination of employment in good standing.
All regular employees are entitled to paid vacation time. Such leave is granted each year of employment and
unused leave may accumulate without limit. Employees are paid for all accumulated vacation leave at their current
wage scale upon termination of employment.
Vested or accumulated vacation leave that is expected to be liquidated with expendable available fmancial
resources is reported as an expenditure and a fund liability of the governmental fund that will pay it. Amounts of
vested or accumulated vacation leave that are not expected to be liquidated with expendable available fmancial
resources are reported in the general long-term debt account group. No expenditure is reported for these amounts.
Vested or accumulated vacation leave of proprietary funds is recorded as an expense and liability of those funds as
the benefits accrue to employees. In accordance with the provisions of Statement No. 16 of the Governmental
Accounting Standards Board, Accounting for Compensated Absences, a Iiabiljty is recorded for accumulated rights
to receive sick pay benefits that are payable upon termination of employment.
8. Temporary N~
Upon authorization for the issuance of general obligation bonds for certain improvements, Kansas law permits the
temporary fmancing of such improvements by the issuanc;e of temporary notes. Temporary notes issued may not
exceed the aggregate amount of bonds authorized, are interest bearing and have a maturity date not later than four
years from the date of issuance of such temporary notes. Temporary notes outstanding are retired from the proceeds
of the sale of general obligation bonds.
9. Long -Term Obligations
The government reports long-term debt of governmental funds at face value in the general long-term debt account
group. Certain other governmental fund obligations not expected to be financed with current available fmancial
resources are also reported in the general long-term debt account group. Long-term debt and other obligations
fmanced by proprietary funds are reported as liabilities in the appropriate funds.
For governmental fund types, bond premiums and discounts, as well as issuance costs, are recognized during the
current period. Bond proceeds are reported as an other fmancing source net of the applicable premium or discount.
Issuance costs, even if withheld from the actual net proceeds received, are reported as debt service expenditures.
For proprietary fund types, bond premiums and discounts, as well as issuance costs, are deferred and amortized over
the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond
premium or discount. Issuance costs are reported as deferred charges.
A-29
City of Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
C. Assets, Liabilities and Equity - continued
10. Fund Equity
Reservations of fund balance represent amounts that are not appropriable or are legally segregated for a specific
purpose. Reservations of retained earnings are limited to outside third-party restrictions. Designations of fund
balance represent tentative management plans that are subject to change. The proprietary fund's contributed capital
represents equity acquired through capital grants and capital contributions from developers, customers or other
funds.
11. Interfund Transactions
Quasi-external transactions (Le., transactions that would be treated as revenues or expenses if they involved
organizations external to the governmental unit, such as internal service fund billings to departments) are accounted
for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund are
expenditures/expenses in the reimbursing fund and reductions of expenditures/expenses. in the fund that is
reimbursed.
. All other. interfund transactions, except quasi-external transactions and reimbursements, are reported as transfers.
Nonrecurring or nonroutine pennanenttransfers of equity are reported as residual equity transfers. All other
interfund transfers are reported as operating transfers.
12. Memorandum pnly - Total Columns
Total columns on the general purpose [mancial statements are captioned as "memorandum only" because they do
not represent consolidated [mancial infonnation and are presented only to facilitate financial analysis. The columns
do not present infonnation that reflects financial positIon, results of operations or cash flows in accordance with
generally accepted accounting principles. Interfund eliminations have not been made in the aggregation of this data.
13. Comparative Data/Reclassifications
Comparative total data for the prior year have been presented in selected sections of the. accompanying financial
statements in order to provide an understanding of the changes in the government's [mancial position and
operations. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent
with the current year's presentation.
II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Budgetary Information
Kansas statutes require that an annual operating budget be legally adopted for the general fund, special revenue
funds (unless specifically exempted by statute), debt service funds and enterprise funds. The statutes provide for the
following sequence and timetable in the adoption of the legal annual operating budget.
A-30
City of Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 3 I, 1999
II. STEW ARDSHIP, COMPLIANCE AND ACCOUNTABILITY - continued
A. Budgetary Information - continued
a) Preparation of the budget for the succeeding calendar year on or before August I st of each year.
b) Publication in a local newspaper of the proposed budget and the notice of public hearing on the budget on
or before August 5th.
c) Public hearing on or before August 15th of each year, but at least ten days after publication of the notice
of hearing.
d) Adoption of the fmal budget on or before August 25th.
The statutes allow for the governing body to increase the originally adopted budget for previously unbudgeted
increases in revenue other than ad valorem property taxes. To do this, a notice of public hearing to amend the
budget must be published in the local newspaper. At least ten days after publication the hearing may be held and
the governing body may amend the budget at that time. Budgets for the following funds were amended in 1999:
General fund, Flood and Drainage fund, Tourism and Convention fund, Special Alcohol fund, Special Gas Tax
fund, Bicentennial Center fund, and Fair Housing fund.
The statutes pennit management to transfer budgeted amounts between line items within an individual fund.
However, such statutes prohibit expenditures in excess of the total amount of the adopted budget of expenditures of
individual funds. Budget comparison statements are presented for each fund showing actual receipts and
expenditures compared to legally budgeted receipts and expenditures.
All legal annual operating budgets are prepared using the modified accrual basis of accounting, modified further by
the encumbrance method of accounting. Revenues are recognized when cash is received. Expenditures include
disbursements, accounts payable, and encumbrances. .Encumbrances are commitments by the municipality for
future payments and are supported by a document evidencing the commitment, such as a purchase order or contract.
All unencumbered appropriations (legal budget expenditure authority) lapse at year end.
A legal operating budget is not required for capital projects funds, trust funds, and the following special revenue
funds: Bicentennial Center Event, HUD Community Development, Community Development Revolving, Heritage
Commission, Special Law Enforcement, Police Grants, Traffic Safety Grant, Housing Rehabilitation, Dare
Donations, CDBG-SAA and CDBG-ED. A legal operating budget is not required for the following Enterprise
funds: Solid Waste Construction,. Water and Sewer Principal and Interest, Water and Sewer Bond Reserve, Water
and Sewer Construction and Reserve funds. Actual to budget comparisons for these funds that present budgets to
the Commissioners are shown strictly for infonnational purposes.
Spending in funds which are not subject to the legal annual operating budget requirements are controlled by federal
regulations, other statutes, or by the use of internal spending limits established by the governing body.
Compliance with Kansas Statutes. References made herein to the statutes are not intended as interpretation of law,
but are offered for consideration by the Director of Accounts and Reports and interpretation by the County Attorney
and legal representatives of the City.
Expenditures exceeded available budget authority in the Central Garage internal service fund in the amount of
$8,531. (KSA 79-2935)
A-31
City of Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 3 I, 1999
II. STEW ARDSHIP, COMPLIANCE AND ACCOUNT ABILITY - continued
A. Budgetary Information - continued
a) Preparation of the budget for the succeeding calendar year on or before August I st of each year.
b) Publication in a local newspaper of the proposed budget and the notice of public hearing on the budget on
or before August 5th.
c) Public hearing on or before August 15th of each year, but at least ten days after publication of the notice
of hearing.
d) Adoption of the fmal budget on or before August 25th.
The statutes allow for the governing body to increase the originally adopted budget for previously unbudgeted
increases in revenue other than ad valorem property taxes. To do this, a notice of public hearing to amend the
budget must be published in the local newspaper. At least ten days after publication the hearing may be held and
the governing body may amend the budget at that time. Budgets for the following funds were amended in 1999:
General fund, Flood and Drainage fund, Tourism and Convention fund, Special Alcohol fund, Special Gas Tax
fund, Bicentennial Center fund, and Fair Housing fund.
The statutes permit management to transfer budgeted amounts between line items within an individual fund.
However, such statutes prohibit expenditures in excess of the total amount of the adopted budget of expenditures of
individual funds. Budget comparison statements are presented for each fund showing actual receipts and
expenditures compar~d to legally budgeted receipts and expenditures.
All legal annual operating budgets are prepared using the modified accrual basis of accounting, modified further by
the encumbrance method of accounting. Revenues are recognized when cash is received. Expenditures include
disbursements, accounts payable, and encumbrances. . Encumbrances are commitments by the municipality for
future payments and are supported by a document evidencing the commitment, such as a purchase order or contract.
All unencumbered appropriations (legal budget expenditure authority) lapse at year end.
A legal operating budget is not required for capital projects funds, trust funds, and the following special revenue
funds: Bicentennial Center Event, HUD Community Development, Community Development Revolving, Heritage
Commission, Special Law Enforcement, Police Grants, Traffic Safety Grant, Housing Rehabilitation, Dare
Donations, CDBG-SAA and CDBG-ED. A legal operating budget is not required for the following Enterprise
funds: Solid Waste Construction, Water and Sewer Principal and Interest, Water and Sewer Bond Reserve, Water
and Sewer Construction and Reserve funds. Actual to budget comparisons for these funds that present budgets to
the Commissioners are shown strictly for infonnational purposes.
Spending in funds which are not subject to the legal annual operating budget requirements are controlled by federal
regulations, other statutes, or by the use of internal spending limits established by the governing body.
Compliance with Kansas Statutes. References made herein to the statutes are not intended as interpretation of law,
but are offered for consideration by the Director of Accounts and Reports and interpretation by the County Attorney
and legal representatives of the City.
Expenditures exceeded available budget authority in the Central Garage internal service fund in the amount of
$8,531. (KSA 79-2935)
A-32
City of Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 3 I, 1999
B. Proprietary Fund Type Budgets
II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY - continued
Actual operations (budgetary basis) compared to budget for proprietary fund types for fiscal year 1999 are as
follows:
Enterprise
Sanitation
Revenues
Expenditures
Solid Waste Disposal Division
Revenues
Expenditures
Other financing sources (uses)
Golf Course Division
Revenues
Expenditures
Water and Sewer
Revenues
Expenditures
Other financing sources (uses)
.
Internal Service
Risk Management
Revenues
Expenditures
Workmen's Compensation Reserve
Revenues
Expenditures
Central Garage Division
Revenues
Expenditures
Other financing sources
Information Services
Revenues
Expenditures
Other financing sources
C. Deficit Fund Equity
Actual Budget Variance
$ 1,487,948 $ 1,495,000 $ (7,052)
1,465,898 1,838,423 372,525
2,350,757 2,415,000 (64,243)
1,699,015 3,615,736 1,916,721
(346,490) (198,616) (147,874)
825,242 838,900 ( 13,658)
828,710 945,576 116,866
10,822,647 11 ,202,200 (379,553)
8,422,264 14,577,197 6,154,933
(3,219,614) (2,581,358) (638,256)
231,150 227,500 3,650
247,463 444,668 191,205
68,091 50,000 18,091
228,953 1,344,707 1,115,754
846,061 727,998 118,063
836,529 827,998 (8.531 )
0 100,000 (100,000)
848,837 841,090 7,747
913,126 1,076,857 163,731
940 2,250 (1,310)
The following funds had deficit fund equity at December 31, 1999: HUD Community Development $(201,210) and
Housing Rehabilitation $(69,633). These deficits will be recovered from reimbursements from grantor agencies, or
in the event certain costs are disallowed, from general funds. The Capital Projects fund had deficit fund equity of
$(3,811,680). This deficit will be recovered when temporary fmancing of projects is replaced with long-tenn
general obligation bond financing.
A-33
City of Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 3 I, 1999
II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY - continued
D. Compliance With Bond Reserve Requirements
Water & Sewer Bond Reserve Requirements
The bond reserve contains a "net revenue" requirement of 125% of next year principal and interest payments. The
Water & Sewer fund met this requirement for 1999.
Actual
Required
Principal and interest account
Bond reserve account
$ 1,055,127
1,750,043
$ 394,198
1,711,600
The City was in compliance with the reserve account balance requirements at December 31, 1999.
E. Legal Debt Margin
The City is subject to the municipal finance law of the state of Kansas which limits the net bonded debt (exclusive
of revenue bonds and special assessment bonds) the city may have outstanding to 30 percent of the assessed value
of all tangible taxable property within the city, as certified to the county clerk on the proceeding August 25. At
December 31, 1999, the statutory limit for the City was $94,346,335, providing a debt margin of$68,373,797.
III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
A. Deposits and Intestments
Deposits - At year-end, the carrying amount of the City's deposits was $(54,522) plus $6,588 cash on hand and the
bank balance was $920,339. The difference between the carrying amount and the bank balance is outstanding
checks and deposits in transit. Of the bank balance, $187,569 was covered by federal deposit insurance and the
remaining $732,770 was collateralized by pledged securities held under joint custody receipts issued by a third-
party bank in the City's name. The third-party bank holding the pledged securities is independent of the pledging
bank. The pledged securities are held under a tri-party custodial agreement signed by all three parties: the City, the
pledging bank, and the independent third-party bank holding the pledged securities. An unsecured and
uncollateralized deposit of$6,895 was held by the Fiscal Agency Department of the Kansas State Treasurer.
The carrying amount of deposits for the Housing Authority of the City of Salina, a discretely presented component
unit, was $110,830 and the bank balance was $114,179. Of the bank balance, $114,179 was covered by federal
depository insurance or by collateral held by the entity's agency in the Housing Authority's name.
The carrying amount of deposits for the Salina Airport Authority, a discretely presented component unit, was
$158,611 and the bank balance was $166,055. Of the bank balance, $166,055 was covered by federal depository
insurance or by collateral held by the entity's agency in the Authority's name.
A-34
City of Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 3 I, 1999
III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued
A. Deposits and Investments - continued
Investments - State statutes authorize the City to invest in US Treasury bills and notes, repurchase agreements, and
the State's municipal investment pool. All investments must be insured, registered, or held by the City or its agent in
the City's name. The City's investments are categorized to give an indication of the level of risk assumed by the
entity at year end. Category I includes investments that are insured or registered, or for which the securities are
held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered investments for
which the securities are held by the pledging bank's trust department or agent in the City's name. Category 3
includes uninsured and unregistered investments for which the securities are held by the pledging bank but not in
the City's name. The carrying amount of investments approximates fair value.
At December 31, 1999, the City had invested $15,755,415 in the State's municipal investment pool. The municipal
investment pool is under the oversight of the Pooled Money Investment Board. The board is comprised of the State
Treasurer and four additional members appointed by the State Governor. The board reports annually to the Kansas
legislature. State pooled monies may be invested in direct obligations of, or obligations that are insured as to
principal and interest by the US government or any agency thereof, with maturities up to four years. No more than
IO percent of those funds may be invested in mortgage-backed securities. In addition, the State pool may invest in
repurchase agreements with Kansas banks or with primary government securities dealers. The City's investment in
the State Treasurer's municipal investment pool is not subject to categorization as to risk. The fair value of the
City's position in the municipal investment pool is substantially the same as the value of the pool shares. The
categories of the City's investments are as follows:
Category
Carrying
Amount
2
3
U.S. Treasury Bills
$ 12,428,349 $
o $
o $ 12,428,349
Bond escrow-investment
in U.S. Treasury Bills
10,950,600
o
o
10,950,600
Pooled investment -
State of Kansas
15,755,415
$ 39,134,364
Separate statutes regulate investment proceeds for most bond issues. Local units may invest bond proceeds in direct
obligations of the United States Government and its agencies or make investments as authorized for other idle
funds. Under existing Attorney General opinions maturity and interest rates are negotiable on such bonds.
A-35
City of Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 3 1, 1999
III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued
A. Deposits and Investments - continued
The cash and investments by fund type at December 31, 1999 are as follows:
Cash and Separate
Investments Deposits Total Restricted Unrestricted
Primary Government
General $ 6,845,472 $ 0 $ 6,845,472 $ 0 $ 6,845,472
Special Revenue 3,177,391 0 3,177,391 0 3,177,391
Debt Service 779,992 6,895 786,887 0 786,887
Capital Projects 851,756 0 851,756 0 851,756
Enterprise 13,543,798 10,950,600 24,494,398 11,804,132 12,690,266
Internal Service 2,444,939 0 2,444,939 0 2,444,939
Trust & Agency 468,124 24,359 492,483 0 492,483
Subtotal primary government 28,111,472 10,981,854 39,093,326 11,804,132 27,289,194
Component Units
Salina Airport Authority 158,661 0 158,661 85,000 73,661
Salina Housing Authority 627,743 0 627,743 67,888 559,855
Subtotal component units 786,404 0 786,404 152,888 633,516
Total reporting entity $ 28,897,876 $ 10,981,854 $ 39,879,730 $ 11,957,020 $ 27,922,710
B. Receivables
Receivables as of year end, including the applicable allowances for uncollectible accounts, are as follows:
Special Debt
General Revenue Service Enterprise Total
Primary Government
Receivables:
Accounts $ 519,107 $ 36,523 $ 0 $ 1,033,040 $ 1,588,670
Taxes 2,861,334 3,621,011 1,478,426 0 7,960,771
Interest 83,782 0 0 0 83,782
Notes 0 12,615 0 0 12,615
Gross receivables 3,464,223 3,670,149 1,478,426 1,033,040 9,645,838
Less: allowance for
uncollectibles (305,999) (3,323) 0 (70,407) (379,729)
Total $ 3,158,224 $ 3,666,826 $ 1,478,426 $ 962,633 9,266,109
Component Units
Salina Airport Authority 836,284
Salina Housing Authority 75,784
Total 912,068
$ 10,178,177
A-36
City of Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 3 I, 1999
III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued
C. Interfund Receivables and Payables
The composition of interfund balances as of December 31, 1999. is as follows:
Due from/to other funds:
Receivable Fund
Payable Funds
Amount
General Fund
Special Revenue Funds
HUDConununity
Development
Housing Rehabilitation
$
207,284
69,633
$ 276,917
D. Fixed Assets
The following is a sununary of the changes in the general fixed assets account group during the current year.
Balance Balance
January 1, December 31,
1999 Additions Deletions 1999
Primary Government
Land $ 2,589,193 $ 0 $ 0 $ 2,589,193
Land improvements 1,119,804 1,936,532 0 3,056,336
Buildings 11,250,757 78,509 0 [ 1,329,266
Machinery and equipment 9,885,555 832,258 238, [54 10,479,659
Sub total primary government 24,845,309 2,847,299 238,154 27,454,454
Component units
Salina Housing Authority 6,823,571 122,305 0 6.945,876
Total reporting entity $ 31,668,880 $ 2,969,604 $ 238,154 $ 34,400,330
A-37
City of Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 3 I, 1999
m. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued
D. Fixed Assets - continued
The following is a summary of proprietary fund-type fixed assets at December 3 I, 1999:
Component
Primary Government Unit
Internal Salina
Enterprise Service Airport
Funds Funds Authority
Land $ 514,050 $ 0 $ 8,427,792
Land improvements 5,038,582 0 0
Water plant and equipment 34,297,229 0 0
Sewer plant and equipment 39,045,192 0 0
Airfield and infrastructure 0 0 16,832,170
Equipment 2,868,806 1,702,677 1,420,300
Vehicles 1,481,616 13,911 0
Buildings 579,812 22,072 7,629,515
Construction in progress 6,130,856 0 0
89,956,143 1,738,660 34,309,777
Less accumulated depreciation 34,600,609 1,021,626 9,725,025
Net fixed assets $ 55,355,534 $ 717,034 $ 24,584,752
Interest costs are capitalized when incurred by proprietary funds and similar component units on debt where
proceeds were used to fmance the construction of assets. .. Interest earned on proceeds of tax-exempt borrowing
arrangements restricted to the acquisition of qualifying assets is offset against interest costs in determining the
amount to be capitalized.
E. General Long-Term Debt
Following is a summary of changes in long-term debt for fiscal year 1999:
A-38
City of Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued
E. General Long-Term Debt - continued
Balance Balance
January I, December 31,
1999 Additions Reductions 1999
Proprietary Funds
General obligations bonds $ 7,079,260 $ 0 $ 767,403 $ 6,311,857
Revenue bonds 26,300,000 0 700,000 25,600,000
Loans payable 935,855 2,164,840 0 3, I 00,695
Temporary notes 1,500,000 0 500,000 1,000,000
Capital financing leases 0 291,587 0 291,587
Accrued compensation 483,272 0 12,258 471,014
36,298,387 2,456,427 1,979,661 36,775,153
Total primary government $ 54,135,437 $ 17,267,519 $ 13,296,148 $ 58, I 06,808
Component Units
General obligations bonds $ 6,170,000 $ I ,280,000 $ 1,880,000 $ 5,570,000
Revenue bonds 555,000 0 55,000 500,000
Loans payable 373,783 94,760 48,014 420,529
Mortgage Payable 658,480 0 24,429 634,051
$ 7,757,263 $ 1,374,760 $ 2,007,443 $ 7,124,580
The following is a detailed listing of the city's long-term debt including general obligation bonds, revenue bonds,
temporary notes and loans payable:
Original Interest Bonds
Issue Rates Outstanding
Primary Government
General Obligation
Broadway Overpass 1990, due 121112000 455,000 5.75% to 7.75% $ 45,000
I nternal Improvements 1991, due lOll 1200 I 1,300,000 5.20% to 7.25% 260,000
Street and Utilities 1991, due 10/1/2001 1,417,000 5.40% to 7.40% 280,000
Crawford Street 1991, due 10/1/2001 1,785,000 4.50% to 6.50% 350,000
Crawford Street 1992, due 10/1/2002 1,240,000 3.75% to 5.90% 375,000
[nternal Improvements 1993, due 10/1/2003 685,000 3.50% to 5.50% 280,000
Internal Improvemetns 1993, due 1011/2003 1,800,000 3.40% to 5.00% 750,000
Internal Improvemetns 1994, due 10/1/2004 1,175,000 4.70% to 6.50% 575,000 -
Internal Improvements 1995, due 10/1/2005 2,434,000 4.75% to 6.50% 1,455,000
Internal Improvements 1996, due 8/01/2006 1,847,000 4.65% to 5.00% 1,295,000
Internal Improvements 1997, due 2/01/2012 1,650,000 4.50% to 5.25% 1,320,000
Internal Improvements 1998, due 8/01/2003 3,900,000 4.10% to 5.00% 3,590,000
Waterlsewer refunding 1998, due 8/01/2008 5,567,420 3.80% to 4.40% 5,063,530
Internal Improvements 1999, due 1011/2014 5,465,000 4.80% to 5.50% 5,465,000
Total general obligation bonds $ 21, 103,530
A-39
City of Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 3 I, 1999
III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued
E. General Long-Term Debt - continued
Original Interest Bonds
Issue Rates Outstanding
Revenue Bonds
Water and Sewer 1992, due 10/1/2012 $ 15,000,000 5.40% to 7.40% $ 11,650,000
Water and Sewer 1993, due 10/1/2013 3,200,000 4.50% to 5.25% 2,560,000
Revenue Refunding 1994, due 9/1/2012 11,390,000 4.30% to 5.25% 11,390,000
Total revenue bonds $ 25,600,000
Loans Payable
Kansas Public Water Supply, due 2/01/2020 3,100,696 4.29% $ 3,100,695
Temporary Notes
Street and Subdivision, due 8/1/2000 5,275,000 3.05% to 3.2% $ 650,000
Library Project, due 6/ 1/2000 310,000 4.00% to 4.40% 100,000
Centennial Road, due 8/1/2000 2,000,000 3.70% 2,000,000
Landfill, due 9/1/0 I 1,500,000 3.75% to 3.87% 1,000,000
General obligation, due 8/1/2000 1,900,000 0 1,900,000
Total temporary notes $ 5,650,000
Capital Leases
IBM AS/400 Model 720, due 3/1/2002 291,587 0 $ 291,587
Component Unit
Salina Airport Authority
General Obligation Bonds
General Obligation 1993, due 2003 375,000 3.40% to 5.00% $ 170,000
General Obligation 1993, due 2003 275,000 3.85% to 4.75% 125,000
General Obligation 1998, due 2007 4,440,000 4.10% to 4.35% 3,995,000
General Obligation 1999, due 2006 725,000 6.25% to 6.90% 725,000
General Obligation 1999, due 20 I 0 555,000 3.90% to 5.10% 555,000
Total general obligation bonds 5,570,000
Revenue Bonds
Leasehold revenue 1991, due 2006 850,000 5.00% to 7.25% 500,000
Loans Payable
Kansas Dept of Commerce & Housing, due 2007 421,796 2.00% 420,529
Total bonds $ 6,490,529
Housing Authority o/the City o/Salina
Mortgage Payable to Federal Financing Bank
due 2013 925,423 3.375% $ 634,051
A-40
City of Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 3 I, 1999
III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued
E. General Long-Term Debt - continued
Interest paid in 1999 is as follows:
Primary government
General obligation bonds
Revenue bonds
Temporary notes
Component Unit
Salina Airport Authority
Housing Authority of Salina
$ 992,693
1,169,086
333,144
369,561
43,460
Annual debt service requirements to maturity for general obligation bonds to be paid with tax levies _
General Obligation - Primary Government
Bonds Interest
Year Outstanding Due Total
2000 $ 2,945,234 $ 1,062,208 $ 4,007,442
2001 2,914,130 856,984 3,771,114
2002 2,487,288 710,779 3,198,067
2003 2,290,447 591,412 2,881,859
, 2004 2,053,975 484,365 2,538,340
To maturity 8,412,456 1,298,087 9,709,567
$ 21,103,530 .$ ,. 5,003,835 $ 26,106,389
General Obligation-Component Units
Bonds Interest
Year Outstanding Due Total
2000 $ 630,000 $ 272,219 $ 902,219
2001 645,000 228,954 873,954
2002 660,000 198,669 858,669
2003 680,000 167,360 847,360
2004 605,000 137,834 742,834
To maturity 2,350,000 279,410 2,629,410
$ 5,570,000 $ 1,284,446 $ 6,854,446
A-41
City of Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued
E. General Long-Term Debt - continued
Annual debt service requirements to maturity for revenue bonds to be paid with service revenues-
Year
2000
2001
2002
2003
2004
To maturity
Revenue Bonds- Component Units
Bonds Interest
Outstandin8 Due
$ 60,00 $ 35,006 $
60,000 31,104
65,000 26,994
70,000 22,510
75,000 17,610
170,000 18,880
Total
95,006
91 , 104
91,994
92,510
92,610
188,880
500,000 $
152,104 $
652, I 04
$
Annual debt service requirements to maturity for temporary notes - to be paid through the issuance of
general obligation bonds -
Temporary Notes - Primary Government
Notes Interest
Year Outstanding Due Total
2000 $ 5,150,000 $ 216,158 $ 5,366,158
200 I 500,000 58,050 558,050
$ 5,650,000 $ 274,208 $ 5,924,208
Annual debt service requirements to maturity for mortgage to be paid from Housing
Authority revenues-
Mortgage - Component Unit
Mortgage Interest
Year Outstanding Due Total
2000 $ 26,041 $ 41,847 $ 67,888
2001 27,649 40,239 67,888
2002 29,584 38,304 67,888
2003 31,537 36,351 67,888
2004 33,618 34,270 67,888
To maturity 485,622 193,259 678,881
$ 634,051 $ 384,270 $ 1,018,321
A-42
City of Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 3 I, 1999
IV. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued
F. General Long-Term Debt - continued
Annual debt service requirements to maturity for loans payable to be paid from service revenues-
Loan - Primary Government
Loan Interest
Year Outstanding Due Total
2000 $ 49,740 $ 66,510 $ 116,250
2001 102,705 129,796 232,50 I
2002 107,158 125,343 232,50 I
2003 I I 1,804 120,697 232,50 I
2004 116,652 115,849 232,501
To maturity 2,612,637 991,125 3,603,762
$ 3,100,696 $ 1,549,320 $ 4,650,016
Loan - Component Unit
Loan Interest
Year Outstanding Due Total
2000 $ 48,978 $ 8,\67 $ 57,145
2001 49,963 7,182 57,145
2002 50,967 6,178 57,145
2003 51,99\ 5,\54 57,145
2004 53,036 4,109 57,145
To maturity 165,594 5,844 171,438
$ 420,529 $ 36,634 $ 457,163
The City has entered into a lease agreement as lessee for financing the acquisition of an IBM AS/400 computer
system with the lease expiring in 2002. This lease agreement qualities as a capital lease for accounting purposes
(titles transfer at the end of the lease terms) and, therefore, has been recorded at the present value of the future
minimum lease payments as of the date of it inception.
A-43
City of Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 3 I, 1999
III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued
E. General Long-Term Debt - continued
The following is an analysis of equipment leased under capital leases as of December 31, 1999:
Machinery and equipment
$ 291,587
Minimum future lease payments under capital leases as of December 31, 1999 are:
2000
2001
2002
Internal
Service
Funds
$ 103,729
103,729
103,729
3 11,187
19,600
$ 291,587
$ 0
Total minimum lease payments
Less amount representing interest
Present value of future minimum lease payments
Payments made during 1999
Defeased bonds. In prior years, the City had defeased certain outstanding debt obligations by placing the proceeds
of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly,
the trust accounts and the defeased bonds are not included in the City's fmancial statements. At December 31,
1999, the following outstanding bonds are considered defeased:
1990 - A Refunding Issue defeased in 1996
1994 - B Revenue Issue defeased in 1998
1990 - A Revenue Issue defeased in 1998
1990 - B Revenue Issue defeased in 1998
$ 1,915,000
1,060,000
2,770,000
2,210,000
Special assessments. As provided by Kansas statutes, projects fmanced in part by special assessments are fmanced
through general obligation bonds of the City and are retired from the debt service fund. Special assessments paid
prior to the issuance of bonds are recorded as revenue in the appropriate project. Special assessments received after
the issuance of bonds are recorded as revenue in the debt service fund. The special assessments are not recorded as
revenue when levied against the respective property owners as such amounts are not available to fmance current
year operations. The special assessment debt is a contingent liability of the City to the extent of property owner
defaults, which have historically been immaterial.
Conduit debt. The City has entered into several conduit debt arrangements wherein the City issues industrial
revenue bonds to finance a portion of the construction of facilities by private enterprises. In return, the private
enterprises have executed mortgage notes or leases with the City. The City is not responsible for payment of the
original bonds, but rather the debt is secured only by the cash payments agreed to be paid by the private enterprises
under the tenns of the mortgage or lease agreements. Generally, the conduit debt is arranged so that payments
required by the private enterprises are equal to the mortgage payment schedule related to the original debt. At
December 31, 1999, total outstanding conduit debt was $38,926,429.
A-44
City of Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 3 I, 1999
Ill. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS _ continued
F. Reconciliation of Transfers
Transfers are made between funds as the need arises. A reconciliation between funds follows:
Transfers from Transfers to
Special Capital
General Revenue Projects
General $ 0 $ 329,179 $ 675,000 $
Special Revenue Funds
Business Improvement District 17,000 0 0
Tourism and Convention 0 302,894 0
$ 17,000 $ 632,073 $ 675,000 $
Total
1,004,179
17,000
302,894
1,324,073
Residual equity transfers were made at year end to close projects in the following fund.
Transfers from
Transfers to
Capital Enterprise
General Projects (Contributed
Fund Fund Capital) Total
$ 0 $ 15,244 $ 0 $ 15,244
207,[01 350,859 0 557,960
187,138 0 38,465 225,603
$ 394,239. $ 366,103 $ 38,465 $ 798,807
General Fund
Special Revenue Funds
Capital Projects Funds
G. Contributed Capital
The changes in the City's contributed capital accounts for its enterprise and internal service funds were as
follows:
Contributing
Source
General Other Capital
Balance Fixed Enterprise Projects Balance
January 1, Assets Funds Funds December 31,
Internal Service Funds
Central Garage $ 16,611 $ 0 $ 0 $ 0 $ 16,611
Information Services 604,932 0 0 0 604,932
Enterprise Funds
Sanitation 34,521 10,732 0 0 45,253
Solid Waste 86,990 14,352 12,030 0 113,372
Municipal Golf Course 154,122 0 0 0 154,122
Water & Sewer 8,385,682 0 0 38,465 8,424,147
$ 8,994,706 $ 25,084 $ 12,030 $ 38,465 $ 9,358,437
A-45
City of Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 3 I, 1999
IV. OTHER INFORMA nON
A. Defined Benefit Pension Plan
Plan description - The City participates in the Kansas Public Employees Retirement System (KPERS) and the
Kansas Police and Firemen's Retirement System (KP&F). Both are cost-sharing multiple-employer defmed benefit
pension plans as provided by Kansas statutes (KSA 74-490 I el seq). KPERS and KP&F provide retirement
benefits, life insurance, disability income benefits and death benefits. Kansas law establishes and amends benefit
provisions. KPERS and KP&F issue a publicly available fmancial report that includes fmancial statements and
required supplementary information. Those reports may be obtained by writing to KPERS (611 S. Kansas Avenue,
Suite 100, Topeka, Kansas 66603-3803) or by calling 1-888-275-5737.
Funding policy - KSA 74-4919 establishes the KPERS member-employee contribution rate at 4% of covered
salary. KSA 74-4975 establishes the KP&F member-employee contribution rate at 7% of covered salary. The
employer collects and remits member-employee contributions according to the provisions of section 414(h) of the
Internal Revenue Code. State law provides that the employer contribution rates be determined annually based on
the results of an annual actuarial valuation. KPERS and KP&F are funded on an actuarial reserve basis. State law
sets a limitation on annual increases in the employer contribution rates. The KPERS employer rate established for
calendar year 1999 is 2.93%. The City employer contributions to KPERS for the years ending December 31, 1999,
1998 and 1997 were $234,495, $222,889, and $194,190, respectively, equal to the required contributions for each
year. The KP&F employer rate established for 1999 is 11.6%. Employers participating in KP&F also make
contributions to amortize the liability for past service costs, if any, which are determined separately for each
participating employer. The City's contributions to KP&F for the years ended December 31, 1999, 1998 and 1997
were $700,643, $811,680, and $808,561, respectively, equal to the required contributions for each year.
B. Deferred Compensation Plan
The City offers its employees a deferred compensation plan ("Plan") created in accordance with Internal Revenue
Code Section 457. The Plan, available to all City employees, permits them to defer a portion of their salary until
future years. The deferred compensation is not available to employees until termination, retirement, death, or
unforeseeable emergency. Plan assets are transferred to a plan agent in a custodial trust and are not available to the
claims of the city's general creditors
e. Vacation and Sick Pay
The City's policies regarding vacation and sick pay permit employees to accumulate a maximum of eighty to one
hundred sixty hours of vacation time depending on years of service. Unused vacation time may be carried over to
subsequent years. Current year accumulated vacation pay is payable upon employment termination. Sick leave
may be accumulated without limitation. At December 31, 1999 accrued compensated absences totaled $2,360,996.
D. Flexible Benefit Plan (1.R.e. Section 125)
The City Commission has adopted by resolution a salary-reduction flexible benefit plan ("Plan") under Section 125
of the Internal Revenue Code. All City employees working more than 20 hours per week are eligible to participate
in the Plan beginning after two full months of employment. Each participant may elect to reduce his or her salary to
purchase benefits offered through the Plan. Benefits offered through the plan include various insurance and
disability benefits.
A'-46
City of Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 3 I, 1999
IV. OTHER INFORMA nON - continued
E. Risk Management
The city is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and
omissions; and natural disasters for which the city carries commercial insurance. Settlements of claims did not
exceed coverage for the years ended December 31, 1999, 1998 or 1997.
The city established a limited risk management program for workers' compensation in 1991. The program covers
all city employees. Premiums are paid into the workers' compensation reserve fund by all other funds and are
available to pay claims, claim reserves and administrative costs of the program. An excess coverage insurance
policy covers individual claims in excess of $250,000 ($350,000 for claims involving employees classified as
policemen or firemen). Incurred claims, including incurred but not reported claims, have been accrued based
primarily upon subsequent payments. Claim liabilities are calculated considering the effects of inflation, recent
claim settlement trends including frequency and amounts of payouts and other economic and social factors. The
liability for claims and judgments is reported in the Workers' Compensation Reserve Fund because it is expected to
be liquidated with expendable available fmancial resources. Changes in the balances of claims liabilities during the
past two years are as follows:
1999 1998
Unpaid claims, January I $ 42,881 $ 128,986
Incurred claims (including
IBNRs) 458,576 90,023
Claim payments (192,321) (I 76, 128)
,
Unpaid claims, December 31 $ 309,136 $ 42,881
The city established a limited risk management program for employee health and dental insurance in 1997. The
program covers eligible city employees. Premiums are paid into the health insurance fund by all other funds and are
available to pay claims, claim reserves and administrative costs of the program. An excess coverage insurance
policy covers individual claims in excess of $50,000. Incurred claims, including incurred but not reported claims,
have been accrued based primarily upon subsequent payments. Claim liabilities are calculated considering the
effects of inflation, recent claim settlement trends including frequency and amounts of payouts and other economic
and social factors. The liability for claims and judgments is reported in the Health Insurance Fund because it is
expected to be liquidated with expendable available fmancial resources. Changes in the balances of claims
liabilities during the past two years are as follows:
1999 1998
Unpaid claims, January I $ 250,000 $ 345,000
Incurred claims (including
IBNRs) 2,629,358 2,331,122
Claim payments (2,590,818) (2,426,122)
Unpaid claims, December 31 $ 288,540 $ 250,000
F. Capital Projects
Capital projects often extend over two or more fiscal years. The following is a schedule which compares the project
authorization including allowable interest revenue to total project expenditures from project inception to December
31,1999:
A-47
City of Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 3 I, 1999
IV. OTHER INFORMATION - continued
F. Capital Projects - continued
Project Name
Project
Authorization
Magnolia/l-35 Interchange
Subdivision 1996
Subdivision 1997
Subdivision 1998
Subdivision 1998 II
Cart paths
Schilling Drainage
North Ohio
Magnolia - Rockhurst to Belmont
South Ninth Street
Ninth/Claflin Drainage
Centennial Road Reconstruction
$
5,939,000
880, 190
816,666
949,976
878,843
257,065
297,129
800,000
375,000
3,001,145
609,438
2,739,497
G. Subsequent Events
Total Project
Expenditures
$
5,447,291
900,000
550,925
778,157
628,415
148,319
129,377
24,650
1,031
2,610,583
42,928
284
On February I, 2000, the city issued $780,000 in temporary notes at a rate of 4.85-4.96%. The proceeds are to be
used for internal improvements. Also on February 1,2000 the city issued $3,900,000 in temporary notes at a rate of
4.97%. The proceeds are to be used as financing street and drainage improvements.
H. Contingent Liabilities
The City receives significant [mancial assistance from numerous federal and state governmental agencies in the
fonn of grants and state pass-through aid. The disbursement of funds received under these programs generally
requires compliance with tenns and conditions specified in the grant agreements and is subject to audit. Any
disallowed claims resulting from such audits could become a liability of the General Fund or other applicable funds.
However, in the opinion of management, any such disallowed claims would not have a material effect on any of the
[mancial statements of the City at December 31, 1999.
The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently detenninable, it
is the opinion of the City's legal counsel that resolution of these matters will not have a material adverse effect on
the financial condition of the city
I. Municipal Solid Waste Landfill
State and federal laws and regulations require the City to place a final cover on its landfill site when it stops
accepting waste, and to perform certain maintenance and monitoring functions at the site for thirty years after
closure. Although closure and postclosure care costs will be paid only near or after the date that the landfill
stops accepting waste, the City reports a portion of these closure and postclosure care costs as an operating
expense of the solid waste fund in each period based on landfill capacity used as of each balance sheet date.
The $1,007,235 reported as landfill closure and postclosure care liability at December 31 represents the
cumulative amount reported to date based on the use of 20.7% of the estimated capacity of the landfill. The
City's solid waste fund will recognize the remaining estimated cost of closure and postclosure care of
$3,849,835 as the remaining estimated capacity is filled over the remaining life expectancy of96.2 years.
A-48
City of Salina, Kansas
NOTES TO FINANCIAL STATEMENTS
December 3 I, 1999
IV. OTHER INFORMA nON - continued
I. Municipal Solid Waste Landfill- continued
These amounts are based on what it would cost to perfonn all closure and postclosure care in 1999. Actual cost
may be higher due to inflation, changes in technology, or changes in regulations. The City is required by State
and Federal laws and regulations to provide assurances of financial responsibility for closure and post-closure
care. The City has elected to utilize the Local Government Financial test promulgated by the US Environmental
Protection Agency (at 40 CFR 258.74(0) and the Kansas Department of Health and Environment to provide
these assurances. Any future closure or post-closure care costs will be provided through the nonnal budgeting
and rate setting process, including the issuance of general obligation bonds, if necessary.
J. Segment Information - Enterprise Funds
The City maintains four enterprise funds which are intended to be self-supporting through user fees charged for
services to the public. Financial segment infonnation as of and for the year ended December 31, 1999 is presented
below.
Solid Golf Water
Waste Course and
Sanitation Disposal Division Sewer Total
Operating revenues $ 1,472,888 $ 2,367,328 $ 819,029 $ 10,753,843 $ 15,413,088
Depreciation expense 69,850 384,541 53,046 2,324,916 2,832,353
Net operating incom~ 17,455 690,407 52,612 1,029,833 1,790,307
Net income 37,703 657,821 51,3 10 907,296 1,654,130
Property, plant and
equipment additions 11,654 120,069 72,526 4,043,138 4,247,387
Net working capital 450,23 I 616,407 87,459 20,729,466 21,883,563
Total assets 874,800 6,965,912 596,751 73,373,892 81,811,355
Bonds and temporary
notes payable 0 2,101,872 147,431 33,763,249 36,012,552
Total equity 779,560 3,660,174 404,280 38,441,609 43,285,623
K. Environmental Matter
The Kansas Department of Health and Environment (KDHE) issued a report in 1994 indicating the presence of
volatile organic compounds at levels requiring remediation at the Salina Public Water Supply Wells Site (the Site).
The City adopted a pro-active Policy and Action Plan to remediate the groundwater contamination, and on
December 7, 1994, the City and KDHE entered into a Consent Order and Settlement Agreement under which the
City assumed primary responsibility for the further investigation and remediation of the groundwater contamination.
Field testing work has been completed. The necessary remediation work will be conducted over the next several
years at a yet undetennined cost to the City's water utility fund.
A-49
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A-50
APPENDIX B
Continuing Disclosure Instructions
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EXHIBIT B
CONTINUING DISCLOSURE INSTRUCTIONS
SECTION 1. Purpose of the Continuing Disclosure Instructions. These Continuing Disclosure
Instructions (the "Instructions") are being executed and delivered by the City for the benefit of the beneficial
owners of any series of the Bonds and in order to assist the Participating Underwriters in complying with Rule
15c2-12 (defmed below). These Instructions are to govern the continuing disclosure obligations of the City with
respect to the City's General Obligation Temporary Notes, Series 2000-3 dated as of July 15, 2000 (the "Series
2000-3 Notes''), General Obligation Internal Improvement Bonds, Series 2000-A dated as of July 15,2000 (the
"Series 2000-A Bonds") and any additional series of Bonds that the City hereafter elects to make subject to these
Instructions.
SECTION 2. Definitions. Unless otherwise defined in these Instructions, the following capitalized
terms shall have the following meanings for pUlposes of these Instructions:
"Beneficial owner" means any registered owner of the Bonds and any other person who, directly or
indirectly, has investment power with respect to any of the Bonds.
"Bond Counsel" means the fmn of Gilmore & Bell, P.C., or any other attorney or fmn of attorneys with
a nationally recognized standing in the field of municipal bond fmancing selected by the City.
"Bonds" means the Series 2000-3 Notes, Series 2000-A Bonds and any additional series of bonds, notes
or other municipal obligations of the City that the City elects at the time of issuance to have subject to these
Instructions for the purpose of constituting the undertaking of the City to provide continuing disclosure pursuant
to Rule 15c2-12.
"City" means the City of Salina, Kansas.
"MSRB" means the Municipal Securities Rulemaking Board.
"NRMSlR" means any information repository recognized by the Securities and Exchange Commission
as a nationally recognized municipal securities information repository under Rule 15c2-12.
"Participating Underwriter" means any of the original underwriters of the Series 2000-3 Notes and Series
2000-A Bonds and any future series of Bonds required to comply with Rule 15c2-12 in connection with the
offering of any series of Bonds.
"Rule 15c2-12" means Rule 15c2-12 adopted by the Securities and Exchange Commission under the
Securities Exchange Act of 1934, as the same may be amended from time to time.
"SID" means any public or private information depository, if any, designated by the State of Kansas and
the Securities and Exchange Commission as such for purposes of Rule 15c2-12.
SECTION 3.
Provision of Annual Reports.
(a) Within 180 days after the close of each fiscal year, the City shall furnish to each NRMSlR and
to the SID, if any, (i) a copy of the financial statements of the City prepared in accordance with generally
accepted accounting principles and audited by its independent auditors (or if not available as of such date, the
B-1
unaudited financial statements of the City and as soon thereafter as available such audited [mancial statements of
the City), and (ii) the operating data of the City, updated for the fiscal year then ended, in substantially the scope
and form contained in the Official Statement dated July 10,2000, with respect to the Series 2000-3 Notes and
Series 2000-A Bonds in the tables under the following headings:
1. Debt Summary
2. Tax Levies
3. Assessed Valuation
4. Estimated Actual Valuation
5. Tax Collections
6. Largest Taxpayers
(b) Any or all of the financial information or operating data required by this Section 3 may be
incorporated by reference from other documents, including official statements of debt issues with respect to the
City that have been filed with each NRMSIR or the Securities and Exchange Commission, and in the case of a
final official statement, that is available from the MSRB. The City shall clearly identify in each annual report
filed under this Section 3 each document incorporated by reference and the source from which it is available.
SECTION 4.
Reporting of Material Events.
(a) The City shall disseminate to the SID, if any, and to each NRMSIR or to the MSRB, promptly
upon the occurrence thereof notice of any of the following events with respect to each series of the Bonds, if
material:
(i) Any principal or interest payment delinquencies;
(ii) Any non-payment related defaults;
(iii) Any unscheduled draws on debt service reserves reflecting financial difficulties;
(iv) Any unscheduled draws on credit enhancements reflecting financial difficulties;
(v) Any substitution of credit or liquidity providers, or their failure to perform;
(vi) Any adverse tax opinions or events affecting the tax-exempt status of any series of the
Bonds;
(vii) Any modifications to rights of security holders;
(viii) Any calls (other than mandatory sinking fund redemptions or redemptions at maturity);
(ix) Any defeasances;
(x) Any release, substitution or sale of property securing repayment of any series of the
Bonds; and
(xi) Any rating changes.
B-2
(b) The City shall also provide to the SID, if any, and to each NRMSIR or to the MSRB, as
promptly as practicable notice of any failure of the City to provide the NRMSIRs and the SID, if any, the annual
fmancial information or operating data required by Section 3 on or before the date specified.
SECTION 5. Termination of Reporting Obligation. The City's obligations under these Instructions
shall terminate with respect to each series of Bonds upon the defeasance, prior redemption or payment in full of
all of such series of Bonds.
SECTION 6. Amendment: Waiver. (a) The provisions of these Instructions may be amended only
by a written instrument executed by the Mayor of the City if the City receives an opinion from Bond Counsel to
the effect that these Instructions, as so amended, are in compliance with Rule 15c2-12 and all current
amendments thereto and interpretations thereof that are applicable to these Instructions.
(b) If an amendment is made to these Instructions, the City shall describe in the next annual
financial report submitted to the NRMSIRs pursuant to Section 3 the substance of the amendment, the reasons for
such amendment and the impact of such amendment on the type of operating data or fmancial information
required to be provided under these Instructions.
SECTION 7. Additional Information. Nothing in these Instructions shall be deemed to prevent the
City from disseminating any other information, or including any other information in any report or notice made
hereunder, in addition to that which is required by these Instructions. If the City chooses to include any
information in any report or notice made hereunder in addition to that which is specifically required by these
Instructions, the City shall have no obligation hereunder to update such information or include it in any future
report or notice.
SECTION 8. Noncomoliance. The provisions of these Instructions shall be subject to specific
enforcement or action in mandamus in a court of equity by any beneficial owner of any series of the Bonds. A
breach of the provisions of this Section shall not constitute a default or event of default under the resolution
adopted by the City authorizing any series of the Bonds.
SECTION 9. Beneficiaries. These Instructions are for the benefit of the City, the Participating
Underwriters and the beneficial owners of any series of the Bonds, and shall create no rights in any other person.
SECTION 10. Applicability to Future Series of Bonds. These Instructions shall apply to any future
series of Bonds of the City that the City elects to have subject to these Instructions at the time of issuance thereof.
These Instructions shall constitute the undertaking of the City with respect to any such future series of Bonds for
the purpose of any Participating Underwriters determining compliance with Rule 15c2-12. Nothing contained
herein shall obligate the City to adopt these Instructions with respect to any future bonds or municipal obligations
issued by the City.
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