8.1 Auth Bond Sale S-242: CITY OF SALINA
REQUEST FOR COMMISSION ACTION DATE TIME
11/1/93 4:00 P.M.
AGENDA SECTION: Admi ni strati on ORIGINATING DEPARTMENT: APPROVED FOR
NO. Finance AGENDA:
8
ITEM: Robert K. Biles
NO. ~
I BY: ~'~ BY:
Resolution Number 93-4654, authorizing the public sale of $1,800,000
principal amount of General Obligation Internal Improvement Bonds, Series
S-242 of Saiina, Kansas.
Resolution Number 93-4654 authorizes the public sale of $1,800,000 in General
Obligation bonds, sets the day and time (November 22, 1993 at 2:00 p.m.) to
reeeive bids, directs that certain publications and other actions be taken and
approves the Preliminary Official Statement dated November 1, 1993.
This bond issue is mainly for improvements at the Solid Waste facility but also
includes the Golf Course Storage Building ($60,000) and Traffic Signal
Improvements ($150,000).
The Preliminary Offieiai Statement (POS) is intended to provide prospective
bidders for the bonds with the information they need to determine an
appropriate bid for the bonds. In order to meet the bidders' needs, the POS
includes information relating to 1) the particular bond issue, 2) the City's
debt structure, 3) the City's property tax structure, 4) general information
about the City's economic condition and 5) the most current audited finaneiai
statements.
After the bids on the bonds are awarded, a Final Official Statement is prepared
by inserting the rates on the bond issue and computing the accrued interest to
the actual closing date.
The POS for General Obligation Bond Series S-242 is attached for your review.
Recommended action
Adopt Resolution Number 93-4654.
COMMISSION ACTION
MOTION BY SECOND BY
THAT:
NOTICE OF BON]) SALE
$1,800,000
GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS
SERIES S-242
OF SALINA, KANSAS
SALINA, KANSAS (the "City"), will receive sealed bids addressed to JACQUELINE B.
SHIEVER, CITY CLERK, at ROOM 206 AT THE CITY/COUNTY BUILDING, 300 WEST ASH,
SALINA, KANSAS 67402-0736 (913-826-7240), until 2:00 P.M., C.$.T. (the "Submittal Hour"), on
MONDAY, NOVEMBER 22, 1993
for the purchase of $1,800,000 General Obligation Internal Improvement Bonds, Series S-242, of the City
(the "Bonds"), at which time nnd place such bids will be publicly opened and read. The bids for the sale
of the 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 bid or reject ali bids at that meeting. No oral or auction
bids will be considered.
TERMS OF THE BONDS
The Bonds will be dated December 1, 1993, and will mature serially on October I 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, not exceeding the principal amount of Bonds
maturing on the same maturity date. Interest will be payable semiannually on April 1 and October I (the
"Interest Payment Dates"), beginning April 1, 1994.
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.
The Bonds will become due on the stated maturity dates as follows:
$I00,000 1994 $190,000 1999
190,000 1995 190,000 2000
190,000 1996 190,000 2001
190,000 1997 185,000 2002
190,000 1998 185,000 2003
Bonds maturing on October 1, 2001, and thereafter will be subject to redemption prior to maturity
at the option of the City, as a whole or in part, 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
by such method as the Bond Regi~t,ar shall deem fair and appropriate) on October 1, 2000, or on any
interekt payment date thereafter, at the redemption price of 100% of the principal amount of Bonds
redeemed plus accrued interest to the redemption date, without a premium.
AUTHORITY, PURPOSE AND SECURITY
The Bonds are being issued pursuant to the provisions of K.S.A. 10-101 et sm., as amended, and
K.S.A. 12-2101 et sm_., 12-685 et sm_., and 13-1024a, as modified by Charter Ordinance No. 13 of the
City adopted on September 19, 1977, all as amended, for the purpose of financing the cost of the
construction of certain improvements to the City's solid waste facility, a new storage building at the
City's municipal golf course and the imtallation of traffic signals at imersectiom within the City. 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.
CONDITIONS OF BIDS
Bids will be received for the Bonds bearing such rate or rates of interest as may be specified by
the bidder. The same rate will apply to all Bonds of the same maturity. Each interest rate specified will
be a multiple of one-eighth (l/8th) or one-twentieth (l/20th) of one percent (1%). The difference
between the highest and lowest rates spocified in any bid will not exceed two percent (2%). No interest
rate will exceed the maximum interest rate allowed by Kansas law, said rate being the "20 Bond Index"
of treasury bonds published in ~ (successor to Muniweek) 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. The successful bidder shall initially reoffer
Bonds maturing on or after October I, 2001, at dollar prices equal to or greater than 100% of the
principal amount of such Bonds.
BID FORM AND GOOD FAITH DEPOSIT
Bids will be submitted on the OFFICIAL BID FORM furnished by the City, and will be
addressed to JACQUELINE B. SH1EVER, CITY CLERK, at ROOM 206 AT THE CITY/COUNTY
BUILDING, 300 WEST ASH, SALINA, KANSAS 67402-0736, and will be plainly marked BOND BID.
Each bid will specify the total interest cost to the City on the basis of such bid and the average annual
net interest rate on the basis of such bid. The net interest cost to the City will be determined by
subtracting the amount of the premium, if any, from the total interest cost and will be stated as a dollar
amount in the bid. The City will be entitled to rely on such dollar amount as stated in the bid as the basis
of determining the lowest net interest cost bid. If there is any discrepancy between the said net interest
cost and the average annual interest rate specified, the specified net interest cost will govern and the rates
specified in the bid will be adjusted accordingly.
Each bid must be accompanied by a certified or cashier's check equal to $36,000, made payable
to Treasurer of the City of Salina~ Kansas. In the event a bidder whose bid is accepted fails to carry out
his contract to purchase the Bonds, said deposit will be retained by the City as liquidated damages. The
checks of unsuccessful bidders will be returned promptly.
BASIS OF AWARD
The City reserves the right to reject any and/or ali of the bids, and to waive any irregularities.
Unless ail bids are rejected, the Bonds will be awarded to the bidder whose proposal results in the lowest
net interest cost to the City. If two or more proper bids providing identical amounts for the lowest net
interest cost are received, the governing body will determine which bid, if any, will be accepted, and its
determination will be final. Any bid received after the Submittal Hour on the date of sale will be
returned to the bidder unopened.
DELIVERY OF THE BONDS
The number and denominations of Bonds and names of the registered owners to be shown on the
Bonds initially delivered must be submitted in writing by the successful bidder to the Bond Registrar not
later than December 15, 1993.
The purchaser will be furnished with a complete transcript of proceedings evidencing the
authorization and issuance of 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 Bonds affecting their validity.
Payment for the Bonds will be mnde in Federal Reserve Funds or other immediately available funds by
approximately 10:00 A.M., C.S.T., on the day of delivery. Delivery of the Bonds will be made to the
successful bidder on or about December 22, 1993, at such location as may be specified by the purchaser.
The purchase price, including accrued interest from the dote of the Bonds to the date of delivery, will
be paid at delivery or the good faith deposit will be forfeited.
LEGAL OPINION
The Bonds will be sold subject to the approving legal opinion of Gilmore & Bell, P.C., Kansas
City, Missouri, Bond Counsel, which opinion will be furnished and paid for by the City and printed on
the Bonds and delivered to the successful bidder when the Bonds are delivered. Said opinion will also
include the opinion of Bond Counsel relating to the exclusion of the interest on the Bonds from gross
income for federal and Kamas 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
Bonds.
CERTIFICATION AS TO OFFERING PRICES
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 will be required to complete,
execute and deliver to the City prior to the delivery of the Bonds, a certificate regarding the "issue price"
of the Bonds (as defined in Section 148 of the Code), reflecting the initial offering prices (excluding
accrued interest and expressed as dollar prices) at which a substantial amount (i.e., 10~; or more) of 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 orgnniT~tiOns acting in the capacity of underwriters or
wholesalers. Such certificate shall state that 10~ or more of 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 will not reoffer the Bonds for sale.
-3-
CUSIP ID~CATION NUMBERS
CUSIP identification numbers will be printed on the Bonds. All expenses in relation to printing
of CUSIP numbers on the Bonds and the expenses charged by the CUSIP Sel~ice Bureau for the
assignment of said numbers shall be the responsibility of and shall be paid for by the City.
BOND RATING
The ou~standinS general obligation bonds of the City have been rated "A 1" by Moody's Investors
Service, Inc. The City has applied to Moody's Investor's Service, Inc. for a ra~Jng on the Bonds.
ASSESSED VALUATION AND BONDED INDEBTEDNESS
The equalized assessed valuation of the taxable tangible property within the City for compu~tion
of bonded debt limitations for 19~3 is $200,733,743. The total general obligation bonded indebtedness
of the City as of the date of the Bonds, including the proposed issue of Bonds, will be $12,$75,000.
PRELIMINARY OFFICIAL STATEMENT AND OFFICIAL STATEMENT
The City has prepared a Preliminary Official Statement dated Novemb~ 1, 1993, copies of which
may be obtained ~rom the undersigned or the City's Financial Advisor. The Preliminary Official
Sta~ment is in a form "deemed final" by the City for the purpose of Rule 15c2-120m)(1) of the Securities
and Exchange Commission. Upon the sale of the Bonds, the City will furnish the successful bidder 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 at its expense.
OFFICIAL INFORMATION
Additional copies of this Notice of Bond Sale, the Official Bid Form or further informa~on may
be obtained from the undersigned or George K. Baum & Company, Twelve WyandoUe Plaza, Kansas
City, Missouri 6410~ (816-474-1100), the City's Financial Advisor.
Dated this 1st day of November, 1993.
SALINA, KANSAS
By Jacqueline B. Shiever
City Clerk
Room 206
City/County Building
300 West Ash
Salina, Kansas 67402-0736
(913-S26-7240)
PRELIMINARY OFFICIAL STATEMENT DATED NOVEMBER 1, 1993
New Issue /.. ;'~...
Bank Qualified ..:. ..l~ffng: Applied For
,,,,oo,ooo -U/
Dali: December 1, 1993 ~~~low
The Series $-242 Bonds (~he "Bonds") will be issued as fully regi~e~i c~ifi~ bonds ~ach in the
denomination of $5,000 or any integral multiple thereof, not exceeding the principal amount of Bonds in each
maturity, lntere~ on the Bonds is payable semiannually on April 1 and October 1 in each year, beginning April 1,
1994 by check or draf~ mailed to the registered owner~ of the Bonds by the Treasurer of the $~zm of Kansez, (the
"Regh~,r" and the "Paying Agent"). The principal of the Bonds is payable upon presemz~ion and surr~der of the
Bonds at the office of the Paying Agent. The Bonds mature, bear intere~ and are priced to yield as follows:
MATURITY SCI~DULE
Amount Rate Maturity Yield Amount Rate Maturity Yield
$100,000 10o01-94 $190,000 10-01-99
190,000 10-01-95 190,000 10-01-00
190,000 10o01-96 190,000 10-01-01*
190,000 10-01-97 185,000 10-01 °02*
190,000 I0-01-98 185,000 10-01-03'
*The City of Salina, Kansas (the "City"), reserves the right, at its option, to redeem the Bonds maturing on or after
OcWbar l, 2001 in whole or in pan in principal amounts of $5,000 or any integral multiple thereof, on October l,
2000, or any interest payment date thereafter in such principal amounts for such maturities as shall be determined
by the City, at a price of 100% of the principal amount of the Bonds to be redeemed plus interest accrued to the date
of redemption. See THE BONDS - "Optional Redemption".
In the opinion of Gilmore & Bell, P.C., Kansas City, Missouri Bond Counsel, under existing law and
assuming continued compliance with certain requirements of the Internal Revenue Code of 1986, as amende& the
interest on the Bonds 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 Bonds is exempt from Kansas income taxatiott The Bonds are "qualified tax-exempt obligations" within the
meaning of Section 265 of the Internal Revenue Code of 1986, as amended. See TAX MATTERS hereir~
The Bonds are issued pursuant to the Constitution and statutes of the State of Kansas and constitute valid
and legally binding general obligations of the City, 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 within the
territorial limits of the City.
The Bonds are offered when, as and if issued by the City subject to the unqualified approving opinion of
Bond Counsel whose opinion will be printed on the Bonds. It is expected that the Bonds will be available for
delivery at such location as may be specified by the Successful Bidder on or about December 22, 1993.
SEALED BIDS WILL BE RECEIVED AT:
City Hall
300 West Ash
City/County Building - Room 206
Salina, Kansas 67402-0736
Attention: Jaequeline B. Shiever, City Clerk
Until 2:00 p.m. Central Standard Time
On Monday, November 22, 1993
CITY OF SALINA, KANSAS
300 West Ash
City/County Building - Room 206
$alina, Kansas 67402-0736
Peter Brungardt, Mayor
Evelyn Maxwell, Commissioner Joseph A. Warner, Commissioner
Carol E. Beggs, Commissioner John Divine, Commissioner
CITY STAFF
Dennis M. Kissinger, City Manager
Michael Morgan, Asst. City Manager
Robert K. Biles, Finance Director
Sacqueline B. Shiever, City Clerk
CITY ATTORNEY
Greg Bengston
Clark, Miz~ & Linville
Salina, Kansas
CERTIFIED PUBLIC ACCOUNTANTS
Kennedy and Coe
Salina, Kansas
BOND COUNSEL
Gilmore & Bell, P.C.
Kansas City, Missouri
FINANCIAL ADVISOR
George K. Baum & Company
Kansas City, Missouri
Noperson has been authorized by the City or the Successful Bidder to give any information or to maim
any representations with respect to the Bonds to be issued, other than thos~ contained in this Official Statement, and
if given or made, such other information or representations not so authorized must not be r~lied upon as having been
given or authorized by the City or the Successful Bidder.
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 financial 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 dascriptious 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 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 given.
TABLE OF CONTENTS
Pa~e Pa~,e
INTRODUCTORY STATEMENT ......... 1 PROPERTY TAX (Continued)
General ........................... 1 Building Permits .................... 14
Additional Information ................ ! Largest Taxpayers ................... 14
THE BONDS ....................... 2 THE CITY OF SALINA, KANSAS ........ 15
Description ........................ 2 Location and Size ....................
Optional Redemption ................. 2 Government .......................
Payment of Principal and Interest ......... 2 Kansas Public Employees Retirement
Registration and Transfer .............. 2 System (KPERS) ...................
Replacement of Bonds ................ 3 Kansas Police and Fire Retirement ........ 16
Authority ......................... 3 Population ......................... 16
SECURITY ......................... 3 Economic Characteristics ............... 16
TAX MATTERS ..................... 3 Industry .......................... 16
RATING ........................... 4 Income ........................... 17
ABSENCE OF MATERIAL LITIGATION ... 4 Major Employers .................... 17
LEGAL MATTERS ................... 4 Recent Economic Development .......... 18
UNDERWRITING .................... 5 Retail Sales ' 19
THE PRefECTS ..................... 5 The Salina Airport Authority ............ 19
SOURCES AND USES OF FUNDS ........ 5 Unemployment Rate .................. 20
FINANCIAL OVERVIEW .............. 6 Police and Fire Protection .............. 20
DEBT SUMMARY ................... 7 Transportation ...................... 20
Current Indebtedness ................. 7 Education ......................... 21
Future Indebtedness .................. 8 Kansas State University-Salina ........... 21
Overlapping Debt .................... g Utilities .......................... 21
Debt Payment Record ................. 8 Health Facilities ..................... 21
BUDGETING PROCEDURES ............ 9 Financial Institutions ................. 22
PROPERTY TAX .................... 9 Other Information ................... 22
Assessment Procedures ................ 9 CERTIFICATION OF THIS OFFICIAL
Reappraisal and Reclassification .......... 9 STATEMENT ...................... 23
Assessment Ratios ................... 10
Equalization Ratios ................... 11 APPENDIX - Financial Statements
Tax Levies ........................ 11
Asseased Valuation ................... 12
Estimated Actual Valuation ............. 12
Tax Collections ..................... 12
Sales Tax ......................... 13
$1,800,000
CITY OF SALINA, KANSAS
GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS
SERIES S-242
INTRODUCTORY STATEMENT
General
This Official Statement is provided for the purpose of presenting certain information concerning the City
of Salina, Kansas (the "City"), and the offering of its $1,800,000 General Obligation Internal Improvement Bonds,
Series S-242 (the "Bonds") dated December 1, 1993. The Bonds are being issued to provide permanent financing
for certain improvements within the City. See THE PROJECTS herein.
The Bonds are issued pursuant to the Constitution and statutes of the State of Kansas. The Bonds constitute
valid and legally binding general obligations of the City, payable as to both principal and interest fi.om ad valorem
taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property within the
territorial limits of the City.
The APPENDIX, containing selected financial data relating to the City, is an integral part of this Official ·
Statement and should be read in its entirety.
All financial and other information presented herein has been compiled by George K. Baum & Company,
Kansas City, Missouri. All information has been provided by the City unless otherwise noted. Gilmore & Bell, P.C.,
Kansas City, Missouri, Bond Counsel, has not assisted in the preparation of nor reviewed this Official Statement,
except to the extent described under the section captioned LEGAL MA'I~I~ERS and, accordingly expresses no opinion
as to the accuracy or sufficiency of any information contained herein.
Additional Information
Additional information regarding the City or the Bonds may be obtained fi.om George K. Baum &
Company, Kansas City, Missouri, Financial Advisor, 816/474-1100. George K. Baum & Company has received
permission fi.om the City to submit a bid for the purchase of the Bonds.
The City is participating in the National Federation of Municipal Analysts Certificate of Recognition
Program. The Program was created to recognize municipalities that have made an express commitment to provide
continuing disclosure to analysts, investors, and rating agencies. As part of the application for admission into the
Program, a resolution was passed which commits the City to provide annual audited financial statements and other
pertinent credit information relevant to its outstanding securities, upon request, to investors and major information
providers in the State and local government securities market. The City has also committed to provide appropriate
periodic credit information to rating agencies necessary to maintain a rating on its securities. The Certificate of
Recognition Program is a means to recognize issuers who have made a commitment to continuing disclosure and is
not a positive or negative judgment as to the accuracy or sufficiency of any disclosure documents, including this
Official Statement
Till: BONDS
Description
The Bonds are dated December 1, 1993, and bear interest at the rates per annum as set forth on the cover
page hereof. Interest on the Bonds is payable semiannually on April I and October I of each year until their
respective maturities, beginning April 1, 1994. The Bonds mature annually in the amounts shown on the cover page
hereof. The Bonds will be issued as fully registered certificated bonds each in the denomination of $5,000 or any
integral multiple thereof, not exceeding the total principal amount of Bonds maturing on each principal payment date.
Optional Redemption
The Bonds maturing October 1, 1994 to October 1, 2000, inclusive, shall become due without option of
prior payment. At the option of the City, the Bonds maturing on October 1, 2001 and thereafter may be called for
redemption and payment prior to maturity on October 1, 2000, or on any interest payment date thereafter at a
redemption price of 100% of the principal amount thereof plus accrued interest to the date of redemption without
a premium.
Bonds called for redemption in advance of their stated maturity dates shall be redeemed in whole or in such
principal amounts for such maturities as shall be determined by the City. If less than all of the outstanding Bonds
ora maturity are to be redeemed, the Bonds in that maturity will be selected by such method as the Registrar acting
on behalf of the City may deem equitable. Bonds will be redeemed in integral multiples of $5,000. If less than all
Bonds in a maturity are called for redemption, the City or the Registrar shall, in the case of Bonds in denomination
greater than $5,000, treat each $5,000 of face value as though it were a separate Bond.
If the City elects to call any Bonds for redemption and payment prior to the maturity thereof, the City will
give written notice of its intention to redeem said Bonds on a specified date, the same being described by maturity.
The State Treasurer will send notice of redemption by first class mail to the registered owners of the Bonds not less
than thirty days prior to the redemption date. Interest on any Bond so called for redemption and payment will cease
f~om and after the redemption date for which such notice of redemption is made, provided funds are available for
payment thereof.
Payment of Principal and Interest
The principal of the Bonds is payable in lawful money of the United States of America, by check or draft,
at the office of the Treasurer of the State of Kansas, Topeka, Kansas, as Paying Agent, to the registered owners
thereof upon presentation and surrender of the Bonds for payment and cancellation.
Interest on the Bonds is payable in lawful money of the United States of America, by check or dra~ of the
Paying Agent mailed to the person in whose name such Bond is registered, at the address as it appears on the
registration books maintained by the Registrar, as of the fifteenth day of the month preceding any date on which
interest is payable (the "Record Dates").
Retistration and Transfer
As long as any Bond remains outstanding, the Treasurer of the State of Kansas, as Registrar, will maintain
a bond register and all transfers and exchanges of the Bonds will be registered therein. The Bonds may be registered
as only certificated bonds.
2
All Bonds presented for transfer or exchange shall be accompanied by a written instrument of transfer in
a form and with guarantee of signature satisfactory to the Registrar. In addition, all Bonds presented for transfer
or exchange shall be surrendered to the Registrar for cancellation, The City and the Registrar are not required to
(i) issue, transfer or exchange any Bond during a period beginning at the opening of business fifteen days preceding
a mailing of a notice of redemption for Bonds selected for redemption and ending at the close of business on the
date of such mailing; (ii) to uansfer or exchange any Bond selected for redemption in whole or in part; or (iii) to
issue, transfer or exchange any Bond during the period beginning after the City has stated its intent to pay defaulted
interest and ending on the date fixed for payment of defaulted interest.
Replacement of Bonds
If any Bond is lost, destroyed or wrongfully taken, the City will execute and the Treasurer of the State of
Kansas, as Registrar, will authenticate, subject to the terms and provisions of the ordinance of the City authorizing
the issuance of the Bonds, a new Bond of the same date, maturity, denomination and interest rate.
In connection with replacing Bonds, the City and the Registrar may require satisfactory indemnification and
may charge the owners reasonable fees and expenses for the replacement of such Bonds.
Authority
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. 10-101 et seo., 12-2101 et seq., 12-685 et seq., and 13-1024a, as modified by
Charter Ordinance No. 13 of the City adopted on September 19, 1977, all as amended, and an ordinance and
resolution (jointly referred to as the "Ordinance") of the City to be adopted on , 1993 authorizing the
issuance of the Bonds.
SECURITY
. The Bonds constitute valid and legally binding general obligations of the City, 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 within the territorial limits of the City.
Federal Tax Exemption. In the opinion of Gilmore & Bell, P.C., Bond Counsel, under existing law, the
interest on the Bonds is excludable 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 m/nimmn tax imposed on corporations (as
defined 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 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 Bonds in gross income for federal income tax purposes
retroactive to the date of issuance of the Bonds. The Bonds are "qualified tax-exempt obligations" within the
meaning of Section 265 (bX3) of the Code.
Bond Counsel expresses no opinion regarding other federal tax consequences arising with respect to the
Bonds.
Kansas Tax Exemption. The interest on the Bonds is exempt from Kansas income taxation.
3
Other Tax Consmuences. Prospective purchasers of the Bonds should be aware that (i) Section 265 of the
Code denies a deduction for interest on indebtedness incurred or continued to purchase or carry the Bonds, or, in
the case of a financial institution, that portion of such institution's interest expense allocable to interest on the Bonds;
(ii) with respect to insurance companies subject to the tax imposed by Section 831 of the Code, Section 832
Co)(5)(B)(i) reduces the deduction for loss reserves by 15 percent of the sum of certain items, including interest on
the Bonds; (iii) for taxable years beginning before Sanuary 1, 1996, interest on the Bonds earned by some
corporations could be subject to the environmental tax imposed by Section S9A of the Code; (iv) interest on the
Bonds earned by certain foreign corporations doing business in the United States could be subject to a branch profits
tax imposed by Section 884 of the Code; (v) passive investment income, including interest on the Bonds, may be
subject to federal income taxation under Section 1375 of the Code for Subchapter S corporations that have
Subchapter C earnings and profits 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 (vi) Section 86 of the Code requires recipients of certain
Social Security and certain Railroad Retirement benefits to take into account, in determining gross income, receipts
or ~'mals of interest on the Bonds. These categories of Bondowners should consult their own tax advisors as to
the applicability of these consequences.
RATING
The City has applied to Moody's Investors Service for a rating on the Bonds. Any explanation of the
significance of such rating, when received, may be obtained only from said rating agency. There is no assurance
that the rating will remain for any given period of time or that it may not be lowered or withdrawn entirely by the
rating service if, in its judgement, circumstances so warrant. Any such downward change in or withdrawal of the
rating may have an ndverse affect on the market price of the Bonds. Appropriate periodic credit information will
be provided to the rating agencies rating the securities. Moody's has assigned the City's currently outstanding '
general obligation bonds a rating of "A 1".
ABSENCE OF MATERIAL LITIGATION
The Transcript of Proceedings will contain a certificate of non-litigation dated as of the date of closing on
the Bonds 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 of Salina, Kansas, or its boundaries,
or the legality of any official act shown to have been done regarding the issuance of the Bonds or the
constitutionality or validity of the obligation represented by the Bonds, or to the means provided for the payment
of the Bonds.
LEGAL MATTERS
All matters incident to the authorization and issuance of the Bonds are subject to the approval of Gilmore
& Bell, P.C., Kansas City, Missouri, Bond Counsel, whose approving opinion is printed on the Bonds. Bond Counsel
has not reviewed this Official Statement except for the matters appearing in the sections of this Official Stat~nent
captioned INTRODUCTORY STATEMENT, THE BONDS, SECURITY, TAX MA'r'rERS and LEGAL MATI'ERS,
and except for such sections has not participated in its preparation. Accordingly, Bond Counsel expresses no opinion
as to the accuracy .or sufficiency of other sections of this Official Statement including the cover page and any
appendix hereto. The factual and financial information appearing herehi has been supplied or reviewed by the City's
officials and staff and other sources referred to herein. The financial statements appearing in the APPENDIX have
been prepared by the City's Certified Public Accountants.
UNDERWRITING
The Bonds were purchased at public sale on , 1993 by (the
"Successful Bidder") at a price equal to the principal amount of the Bonds plus accrued interest to the date of closing.
THE PROJECTS
Proceeds from the sale of the Bonds will be used to provide long term f'mancing for three internal
improvement projects within the City (the "Projects"). The majority of the proceeds from the sale of the Bonds will
be used to finance improvements to the City's solid waste disposal facilities. Included in this Project is the
construction of a new landfill cell with federally required liners, compacted earth, and certain drainage improvements.
A new access road to the disposal facility and scales will also be t~manced as part of the solid waste disposal facility
improvements.
A portion of the proceeds from the sale of the Bonds will also be used to reimburse the City for two
previously authorized and completed internal improvements. One of these Projects involved the construction of a
new storage building located at the City's municipal golf course. The other Project involved the installation of traffic
signals at several intersections within the City. Remaining bond proceeds will be used to pay the costs associated
with the issuance of the Bonds.
SOURCES AND USES OF FUNDS
Funds to be used in the financing of the Projects will be provided and applied approximately as follows.
Sources of Funds:
Bond Proceeds $1,800,000.00
Accrued Interest
Total Sources of Funds $1,800,000.00
Uses of Funds:
Solid Waste Disposal Facility Project $1,571,000.00
Golf Course Storage & Traffic Signal Improvements 204,750.00
Issuance Costs 24,250.00
Accrued Interest
Total Application of Funds $1,800,000.00
FINANCIAL OVERVIEW
CITY OF SALINA, KANSAS
1993 Estimated Actual Valuation (1) $ 1,169,606,211.00
1993 Assessed Valuation (2) $ 200,733,743.00
General Obligation Bonds (3) $ 12,575,000.00
Population - 1990 U.S. Census 42,303
General Obligation Debt Per Capita $ 297~.6
Ratio of General Obligation Debt to Estimated Actual Valuation 1.08%
Ratio of General Obligation Debt to Assessed Valuation 6~26%
Outstanding Temporary Notes $ 1,238,000.00
Outstanding 'Revenue Bonds $ 24,910,000.00
Overlapping General Obligation Debt (4) $ 7,987,551.34
Direct and Overlapping General Obligation Bonded Debt $ 20,562,551.34
Direct and Overlapping Debt Per Capita $ 486.08
Ratio of Direct and Overlapping Debt to Estimated Actual Valuation 1.76%
Ratio of Direct and Overlapping Debt to Assessed Valuation I0~.4%
(1) For a further description of how Estimated Actual Valuation is calculated and additional historical figures see
the section entitled PROPERTY TAX - "Estimated Actual Valuation".
(2) Real property, personal property, and state assessed utility valuations were released in 1993 and used in
computing tax levies for the City's 1994 Budget. Motor vehicle valuations were released January, 1993.
(3) Includes the Bonds. Does not include bonds prev/ously escrowed to stated maturity date or escrowed to stated
call date.
(4) For a more detailed explanation of the overlapping debt of the other jurisdictions, see DEBT SUMMARY -
"Overlapping Indebtedness".
DEBT SUMMARY
Current Indebtedness
The following is an overview of the City's outstanding indebtedness by classification. Figures do not
include bonds for which payment has been provided for through the creation of a designated escrow trust account.
As of December 1, 1993 the outstanding indebtedness of the City will be as follows:
General Obligation Bonds:
The City's outstanding uninsured general obligation debt has been rated *'Al" by Moody's Investors Service.
Date Amount Final
Issued Purpose of Issue Maturity Outstandint~
12-01-86 Street and Utilities $1,983,000 12-01-96 $ 780,000
12-01-87 Downtown Redevelopment 5,000,000 12-01-97 2,000,000
12-01-88 Internal Improvements 1,115,000 12-01-98 490,000
12-01-89 Internal Improvements 1,175,000 12-01-99 695,000
12-01-90 Broadway Overpass 455,000 12-01-00 315,000
04-01-91 Internal Improvements 1,300,000 10-01-01 1,040,000
07-0 I-91 Internal Improvements 1,417,000 10-01-01 I, 125,000
12-01-91 West Crawford Improvements 1,785,000 10-01-01 1,425,000
05-01-92 Refunding 1,660,000 04-01-96 1,100,000
0S-01-92 Internal Improvements 1~240,000 10-01-02 1,120,000
05-01-93 Internal Improvements 685,000 10-01-03 685,000
12-01-93 Solid Waste & Other Improvements 1,800,000 10-01-03 1,800,000
$12,575,000
The City of Salina's general obligation debt is strucUzred to be completely paid by October 1, 2003. The
City has customarily issued all general obligation bonds with level principal payments and maturities not exceeding
ten years. The average life of all of the City's currently outstanding general obligation debt is approximately 3.81
years. The following graph shows the annual principal and interest payments required on the City's currently
outstanding general obligation debt.
Thousands
3,SOO '~
3,000 l~
2,500 l~
2,000 l~
1,500 If
1,000 II
1993 1994 1993 1996 1997 1998 1999 2000 2001 2002 2003
[] Payment on Bonds
Revenue Bonds:
Revenue bonds are payable from rates, fees and charges of the City's combined water and sewage utility.
These bonds arc not general obligations of the City for which taxes may be levied. Moody's Investors Service has
rated the City's currently outstanding uninsured water and sewage revenue bonds a rating of "A".
Amount Final
Series Purpose of Issue Maturity Outstnndinn
1990 Water & Sewage Refunding and Improvement $ 7,865,000 10-01-08 $ 7,095,000
1992 Water & Sewage Improvements 15,000,000 10-01-12 14,615,000
1993 Water & Sewage Improvements 3,200,000 I0-01-13 3~.00.000
$24,910,000
Temporary Notes:
Date Maturity
Project Series Issued Date Amount
Streets and Utilities PT-111 09-01-92 12-31-94 $ 211,000
Streets and Utilities PT-113 05-01-92 12-31-94 197,000
Solid Waste Compactor PT-114-1 08-01-93 12-31-94 70,000
Solid Waste Compactor PT- 114-2 08-01-93 12-31-95 70,000
Solid Waste Compactor PT- 114-3 08-01-93 12-31-96 70,000
Streets and Utilities PT-115 08-01-93 12-31-94 620,000
$1,238,000
Future Indebtedness
The City regularly finances, on a temporary basis, the costs of improvement projects under construction
through the issuance of temporary notes. When the projects are completed and the notes mature or are called for
redemption, the City customarily issues general obligation bonds to provide for long term project financing. The
City anticipates that it will need to issue approximately $1.2 million of general obligation bonds in early 1994 to
redeem the outstanding temporary notes and provide funds for additional improvement projects.
Overlaooinl~ Debt
The following table details the overlapping general obligation indebtedness of the City.
Amount Estimated Share of the City
Jurisdiction Outstandin~ Amount Percentage
Salina Airport Authority $3,125,000.00 $3,125,000.00 100.0%
U.S.D. #305 5,335,000.00 4,862,551.34 91.1
Total $7,987,551.34
*Includes $650,000 of bonds recently sold at public sale. Salina Airport Authority bonds represent a separate and
distinct issuance of debt not related to the Bonds. The Salina Airport Authority, while maintaining identical taxing
boundaries as the City, is empowered by Kansas Statutes to issue general obligation bonds up to 3% of its assessed
valuation and levy unlimited taxes for the payment of principal and interest thereon.
Source: U.S.D. #305 - Saline County Clerk's Office, as of June 30, 1993
Salina Airport Authority - George K. Baum & Company, as of December 1, 1993
Debt Payment Record
The City has always met principal and interest payments on all outstanding bonds when due and payable.
8
BUDGETING 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
I and published on or before August $ 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 2S 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.
PROPERTY TAX
Assessment Procedures
The determination of assessed valuation and the collection of property taxes for all political subdivisions
in the State of Kansas is the responsibility of the various counties. The Saline County Appraiser's Office annually
determines the assessed valuation that is to be used as a basis for the mill levy on property located in the City. The
Appraiser's determination is based on a number of criteria established by Kansas statute. Kansas Statutes require
that each parcel of real property be reviewed and insp,~ted by the County Appraiser once every four years for
taxation appraisal purposes.
Reappraisal and Reclassification
All property in the State of Kansas has been reevaluated as a result ora bill passed by the 1985 session of
the Kansas Legislature requiring county assessors to reassess property for tax purposes, with an effective date of
January 1, 1989.
In conjun~,-tion with a November, 1986 general election, Kansas voters approved a proposition which
modified the State Constitution with respect to classification of property for ad valorem taxation. For taxable years
commencing January I, 1989 and thereafter, real and personal property is divided into classes and assessed at
different percentages of fair market value. The different classifications for real and personal property established
as a result of the legislation are: Agricultural Land, Residential Property and Vacant Lots, Commercial or Industrial
Machinery and Equipment, and Other. Farm machinery and livestock and business inventories are now exempt from
taxation. On November 3, 1992 Kansas voters approved a proposition that provides for further modifications to the
classification of property for tax purposes. See "Assessment Ratios" in this section for further details.
The 1985 legislation mandating property reappraisal also made provision for a new limitation on taxing
authority effective January 1, 1989. Although this new limitation affects many operating funds including the General
Fund, this change does not affect the City's ability to levy unlimited taxes to make principal and interest payments
on City indebtedness. The City's Bond and Interest Fund, from which principal and interest payments are t'manced,
is exempt from the tax limitation imposed by the 1985 Kansas Legislature.
A~sessment
All real and personal property in the City is assessed by the appraiser of Saline County. Kansas statutes
as modified by reappraisal and reclassification, effective January 1, 1989, provided that all real and personal property
be divided into classes and assessed at different percentages of fair market value. Land devoted to agricultural use
was valued on the basis of its agricultural income or productivity and assessed at 30% of the value so obtained;
commercial and industrial machinery and equipment was assessed at 20% of fair market value; residential property
and vacant lots were assessed at 12% of fair market value; mobile homes, which may be classified as either real
property or personal property depending on whether or not they meet certain criteria, were assessed at 12% of fair
market value; and all other property was assessed at 30% of fair market value. Farm machinery and equipment,
merchants', and manufacturers' inventories, and livestock were exempted from property taxation.
On November 3, 1992 voters in the State of Kansas approved a proposition to amend the Kansas
Constitution regarding property classification and assessment rates for ad valorem tax purposes (the "1992
Amendment"). The 1992 Amendment did not modify the requirement that different classes of property are to be
assessed for property tax purposes at different percentages of value. However, effective January I, 1993, three new
subclassifications of real property were established: (I) Real property owned and operated by certain not-for-profit
organizations, the assessment rate was decreased from 30% to 12%; (2) public utility real property, the assessment
rate was increased from 30% to 33%, except that railroad real property is assessed at the federally mandated rate;
and (3) real property used for commercial and industrial purposes and buildings and other improvements located upon
land devoted to agricultural use, the assessment rate was decreased from 30% to 25%. The amendment also provided
that the assessment rate for residential real property would decrease from 12% to 11-1/2%.
With respect to personal property, the 1992 Amendment provided that the assessment rate for public utility
personal property including inventories was increased from 30% to 33%, except that railroad personal property
including inventories is assessed at the federally mandated rate. The assessment rate for oil leaseholds having an
average daily production of five barrels or less and natural gas leasehold interests the average dally production from
which is 100 million cubic feet or less, was decreased from 30% to 25%. The assessment rate for commercial and
industrial machinery and equipment was increased from 20% to 25%. The legislature was provided authority to
separately classify and tax recreational vehicles. The following table shows the assessment ratios for the different
classes of taxable tangible property within the State before and after the 1992 Amendment.
Assessment Ratios
Prior to After
1992 Amendment 1992 Amendment
Real Property:
Residential 12.0% 11.5%
Commercial and Industrial-
Real Property 30.0 25.0
Agricultural Land 30.0 30.0
Agricultural Improvements 30.0 25.0
Vacant Lots 12.0 12.0
Not-for-Profit 30.0 12.0
All Other 30.0 30.0
Personal Property:
Mobile Homes 12.0% I 1.5%
Mineral Leaseholds (large) 30.0 30.0
Mineral Leaseholds (small) 30.0 25.0
Commercial & Industrial
Machinery & Equipment 20.0 25.0
All Other 30.0 30.0
Utilities.'.
Railroads federally mandated rate federally mandated rate
All Other 30.0°4 33.0%
Motor Vehicles: 30.0% 30.0%
Prior to reappra/sal and reclassification in 1989, all property was assessed at approxhnately 30% of fair
market value.
l0
Eaualintion 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 pwperty 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 1991 Real Estate Assessment/Sales Ratio Study, the equalization ratio for residential
real property in Saline County was 11.84, vacant lots were 10.56, agricultural property was 6.85, and the equalization
ratio for all other real property was 30.45. The 1992 Real Estate Assessment/Sales Ratio Study was not available
as of the date of this Official Statement.
Tax Levies
The City may levy taxes in accordance with the requirements of its adopted budget and within the
restrictions of the Tax Lid Law of the State of Kansas. The funds of the City affected by the tax lid are the General
and Utility Funds. Levies for other purposes which are not affected by this tax lid include the Bond and Interest,
Employee Benefit, and Special Liability Funds. According to city officials, the maximum allowable levy for the
funds affected by the Tax Lid Law is $3,472,660 for the City's 1993 budget. The City has currently budgeted a total
of $1,204,298 for the affected funds. The current Tax Lid Law in the State of Kansas was recently modified and
extended for two years. 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 levy for
all taxing jurisdictions per $1,000.00 assessed valuation of the City for the last five years.
1989 1990 1991 1992 1993
Levy Levy Levy Levy Levy
For For For For For
1990 1991 1992 1993 1994
Jurisdiction Budf~et Budl~et Bud2et Budget Budfmt ¢2)
City of Salina $ 30.015 $ 30.028 $ 29.828 $ 29.849 $29.849
Salina Library 4.099 4.318 4.574 5.057 5.188
State Education & Other 1.500 1.500 1.500 1.500 1.500
Unified School District #305 76.492 79.472 83.372 43.882 (1) 40.885
Airport Authority (3) ...... 1.900
Saline County 19.074 20.122 20.464 21.718 24.911
Total $131.180 $135.440 $139.738 $102.006 $104.233
(1) In 1992 the Kansas Legislature approved a bill modifying the school financing method in the State. This change
resulted in property tax levies of the majority of school districts to drop dramatically.
(2) As published by the City. Final levies will be released November 1, 1993.
(3) The Salina Airport Authority intends to use its ability to levy taxes for the first time since 1984 to fund certain
capital improvement projects. The Authority has the ability by statute to levy up to three mills with approval
from the governing body of the City. The three mill limit does not apply to the Authority's ability to levy
unlimited taxes for the repayment of its general obligation debt. The Authority is restricted by statute from
issuing general obligation debt in excess of 3% of its total assessed valuation, which is the same valuation as
the City. See DEBT STRUCTURE - "Overlapping Debt".
11
Assessed Valuation
The following table gives the assessed valuation of the City in thc years indicated.
Real Personal State Motor Total Assessed
Year Estate Property Assessed Vehicle Valuation
1987-1988 $ 72,066,960 $31,552,430 $10,884,189 $28,786,730 $143,290,309
1988-1989 71,441,070 35,215,115 10,765,830 30,847,364 148,269,379
1989-1990 (1) 131,092,252 13,941,911 11,333,129 32,959,186 189,326,478
1990-1991 125,389,311 13,454,685 11,094,235 35,096,634 185,034,865
1991-1992 134,834,179 14,314,162 11,208,262 34,515,855 194,872,458
1992-1993 135,267,866 16,751,713 11,545,541 35,803,591 199,368,711
1993-1994 (2) 129,632,717 22,447,713 12,849,722 35,803,591 est. 200,733,743
(1) All municipalities in Kansas underwent a complete reappraisal and reclassification of real and personal property
as a result of legislative action, effective January 1, 1989. This legislation reappraised property much closer to
its estimated market value, and caused certain types of personal property to be reclassified, reduced or eliminated
fi.om ad valorem taxation. The section entitled PROPERTY TAX - "Reappraisal and Reclassification" provides
a detailed description of the new taxation process.
(2) 1993-1994 assessed valuation figures were impacted by a constitutional amendment approved by Kansas voters
in November, 1992. See PROPERTY TAX - "Assessment Ratios". 1993-94 motor vehicle valuations will not
be available until January, 1994. 1992-93 motor vehicle valuations were used as estimates.
Source: Saline County Clerk's Office
Estimated Actual Valuation ·
Based on assessment percentages provided by Kansas Statutes, real estate equalization ratios provided by
the Kansas Department of Revenue (see PROPERTY TAX - "Assessment Ratios"), and estimated nctuai valuation
figures provided by the Saline County Appraiser's Office, the following table provides estimated actual valuations
for the City in the years indicated.
Residential Real Estate Other Property Estimated
Year Equalization Ratio Equalization Ratios Actual Value
1986-1987 8.00% 30% $1,105,157,648
1987-1988 7.92 30 I, 147,347,527
1988-1989 7.90 30 1,160,411,705
1989-1990 11.88 6.79 - 30 1,037,898,270
1990-1991 11.82 8.61 - 30 1,026,844,668
1991-1992 11.84 6.85 - 30.45 1,075,575,019
1992-1993' 11.84 6.85 - 30.45 1,105,026,368
1993-1994 11.84 6.85 - 30.45 1,169,606,211
· 1992 equalization ratios were not available as of the date of this Official Statement. 1991 ratios were used as
Tax Collections
Tax statements are mailed November I 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
12
for taxes and all legal charges on the first Tuesday in September. Properties that are sold to the County and not
redeemed by the dalinquent taxpayer within two years after the tax sale are subject to foreclosure sale, except
properties defined as "homesteads" under the Kansas Constitution, which are subject to sale after three years.
Personal taxes are due and may be paid in the same manner as real estate taxes, with the same interest
applying to delinquencies. If personal taxes are not paid in full by August 15, warrants are issued and placed in the
hands of the Sheriff for collection. On October l, legal judgment is entered and the delinquent tax becomes a lien
on the property. Unless renewed, a non-enforced lien expires five years after it is entered.
The following is a summary of tax collections for the City. Taxes levied according to the 1992 tax rolls
were collected in December 1992 and June 1993 and were used to finance the City's 1993 budget.
Current and Delinquent
Budget Tax Taxes Current Tax Collections Tax Collections
Year Rate Levied Amount % Amount %
1986 36.360 $3,951,529 $3,906,226 98.9 $3,992;2?5 101.0
1987 36.360 4,116,562 4,005,867 97.3 4,101,328 99.6
1988 36.360 4,163,314 4,086,792 98.2 4,152,752 99.7
1989 36.360 4,269,464 4,110,?19 96.3 4~211,821 98.6
1990 30.015 4,693,317 4,394,623 93.6 (2) 4,499,127 95.9
1991 30.028 4,502,345 4,31'/,229 95.9 (2) 4,322,973 96.0
1992 29.828 4,'/83,116 4,491,134 93.9 (2) 4,575,103 95.7
1993 (1) 29.849 4,882;2?4 4,692;224 96.1 (2)
(1) includes collections through September 1993. Final installment of property taxes will be sent to City in
October 1993.
(2) Since 1990 the City has experienced a decrease in annual tax collections as a result of numerous protests by
property owners of their reappraised property valuations (see PROPERTY TAX - "Reappraisal and
Reclassification"). The City has 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 sales
tax. In November, 1992 voters in Saline County approved an additional one-half cent countywide sales tax for the
expansion of the County jail facilities. The 1992 ballot question received 60°,4 favorable votes. A simple majority
was required for passage. Each month the State of Kansas distributes countywide sales tax receipts to Saline County
who, in mm, allocates the funds among all incorporated municipalities located within the County. The amount of
each distribution is based upon population and relative tax levies of the individual municipality. This standard
formula for distribution of countywide sales taxes does not apply to the one-haft cent sales tax approved by voters
in 1992. This tax is retained wholly by the County and used to pay for the cost of the jail expansion. The one-half
cent 1992 sales tax will expire when the improvements to the jail have been paid.
The voters of the City recently approved the extension of a one-half cent citywide sales tax. This tax is in
addition to the countywide taxes. The citywide tax was originally approved by voters in 1990 to provide funds for
additions and improvements to the campus of Kansas State University-Salina, College of Technology. The tax was
scheduled to expire at the end of 1992. The City sought and received approval from voters to extend the use of the
citywide sales tax for purposes of helping to fund general operations expenditures of the City. The ballot question
received approval by 66% of voters. A simple majority was required. Citywide local option taxes are distributed
by the State directly to the levying city.
The total sales tax for goods and services in the City is now 6.9%, which consists of 4.9% imposed by the
State, 1.5% countywide local option sales tax, and .5% citywide local option sales tax.
13
The City of Salina deposits sales tax receipts into the General Fun& In its 1994 Budget the City estimates
that a total of $6.6 million will be collected from sales taxes representing 53.8% of total anticipated general fund
revenues. Sales tax receipts are used for funding general operating expenditures of the City and capital improvement
projects.
The following table lists the total local-option sales tax receipts of the City of Salina in the years indicated.
The amounts include only the countywide 1% tax.
City
Sales Tax Receipts
Ve~r (FYE December 31)
1988 $3,393,573
1989 3,435,319
1990 3,716,291
1991 3,725,782
1992 3,744,290
1993 (through September) 3,121,483
Sources: City Sales Tax Receipts - Audited Financial Statements
Buildin~ Permits
The following tables show the total volume and estimated valuation of building permits authorized by the
City during the years indicated.
Year Permits Issued Estimated Valuation
1986 441 $34,679,250
1987 470 17,391,757
1988 457 15,426,410
1989 490 18,851,000
1990 497 36,469,096 *
1991 562 22,665,785
1992 598 25,283,947
· Includes one permit in the amount of $16,000,000 issued to Asbury Hospital for a large expansion project.
Largest Taxpayers
The following lists the largest taxpayers in the City and their 1993 assessed valuations according to the
Saline County Clerk's Office.
Company Type of Business Valuation
Schwan's Sales Parent Company of Tony's Pizza $5,746,482
KPL Gas Service Gas and Electric Utility 5,558,466
Southwestern Bell Tel~hone Utility 4,994,636
Warmack, Salina Parmership Retail Shopping Mall 4,453,984
Omnha Hotel Inc. Motel 1,676,875
Sunset Plnza, Inc. Retail Developments 1,467,267
Wal-Mart Stores, Inc. Discount Retail Stores 1,227,123
Intervest Salina Ltd. Parmership Grocery Store 836,681
Kangross Partners & Co., Ltd. K-Mart 777,510
Union Pacific Railroad Railroad 585,056
14
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 1990 Census estimated population of 42,303. The City is the
county seat for Saline County, which had a population of 49,301 in 1990.
Standing 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 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 is comprised of five
members elected at-large. Each year the Commission will choose 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 393 full-time employees
and 265 part-time. 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:
Term
Name Title Expires
Peter Brungardt Mayor 1995
Evelyn Maxwell Commissioner 1997
John Divine Commissioner 1997
Carol Beggs Commissioner 1995
Joseph A. Warner Commissioner 1995
Kansas Public Employees Retirement System (KPERS)
The City participates in the Kansas Public Employees Re 'tu-cment System (KPERS) which was established
by the i961 Kansas Legislature. There are approximately 166,000 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. All of the City's full-time employees are covered by
the KPERS program.
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.
KPERS is governed by a nine-member Board of Trustees. 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 thcir gross salary to thc Systcm. 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 1993, the City's contribution will be 1.9% of the employees' gross salary.
15
Knnsas Police and Fire Retirement
The City has established membership in the Kansas Police and Fire Retirement System for its police and
fire personnel. Benefits are determined by total years of service and final average salary. The plan is administered
by the State of Kansas. An actuarial study is made annually and the City's annual contribution is adjusted to meet
current fund requirements. Payment of employee retirement benefits is the sole responsibility of KP&F. Cunvntly
the City contributes 13% of employees' gross compensation, and the majority of employees contribute 7% of their
gross salary.
Population
The City of Salina has a population that is approaching metropolitan area status. This is det'med by the
U.S. Census Bureau as cities with 50,000 inhabitants or more. The City's citizens have a median age of 31.2 years,
with almost 74% of the population being under 50 years of age. The following table shows the population for the
City for selected years from 1950 to 1990. All populations shown are U.S. Census figures.
Year Population
1950 26,176
1960 43,202
1970 37,714 *
1980 41,843
1990 42,303
*The decline in population between 1960 and 1970 reflects the closing of Schilling Air Force Base in 1965.
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 Beech Aircraft, Pepsi-Cola, Western Auto, and Tony's Pizza, all located
within the City, and Exide Battery and Philips Lighting 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 are approximately 2,200 re~l, commercial, and other business establishments located in the City.
In July, 1993 the Kansas Department of Human Resources estimated the civilian labor force in the City of
Salina to be 26,920 persons. The U.S. Census Bureau determined that the median household income for the City
was $25,084 in 1990. Homeowner occupancy rates in Saline County were 98.6% in 1990.
The City of Salina has made a commitment to plan for its future through capital and economic development
planning. In 1992, the City Commission approved a comprehensive and transportation plan designed to encourage
and manage growth in the City during the next 15 to 20 years. The plan was developed by a firm based out of
Chicago specializing in such studies. Among its numerous recommendations, the plan calls for revisious to certain
zoning and consuuction standards and policies, landscaping projects, historic preservation, and business/government
cooperation. It is hoped that the study will provide guidelines for encouraging growth within the City and expansion
of certain city limits.
Industry
Although Saline County is located in thc center of one of thc most productive agricultural areas in thc
United States, Salina is a city centered more around industry than agriculture. Currently, there are approximately
90 manufacturing and processing companies located in the City.
16
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 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 Vocational-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 which can provide 100% 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:
City of State of
Year Salina Kansas
1986 $14,515 $14,631
1987 15,166 15,147
1988 16,398 15,993
1989 17,509 16,962
1990 19,002 18,104
Source: U. S. Bureau of Economic Analysis
Major Employers
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 any one type of
industrial or commercial activity. A list of the major employers are as follows. All figures represent total
employment including full and part-time employees, except U.S.D. #305 which lists only full-time personnel. '
1991 Estimated 1992 Estimated 1993 Estimated
Name Product/Business Employment Employment Employment
Tony's Pizza Service Frozen Pizzn 1,950 1,950 1,950
U.S.D. #305 School System 1,000 1,000 1,000
Asbury Hospital Health Care 800 840 843
City of Salina (1) City Govemn!.ent 700 612 658
Beechcraft Aircra~ Manufacturing 633 663 620
Exide Battery Corp. (2) Battery Manufacturer 595 587 610
Philips Lighting Corp. (2) Fluorescent Lamps 572 575 575
St. John's Hospital Health Care 533 573 575
Western Auto (1)(2) Wholesale Supplier 234 220 240
Mordson Grain Grain Product - - 200
Sam's Club Wholesale Membership Club - -
(1) Fluctuates based on seasonal factors.
(2) These employers are situated immediately outside city limits but employ primarily residents of the City.
Source: Respective company or municipal officials
17
Recent Economic Development
Within the past year the City of Salina has been chosen as the site of several retail and industrial
developments. Sam's Club, a division of Wal-Mart Stores, Inc., recently completed construction of a new 135,000
square foot facility within the City. The new store provides discount retail goods to people who pay an annual
membership fee. Sam's Club is located across from an existing Wal-Mar~ store and is the anchor tenant for a new
shopping center. The new shopping area covers approximately 44.5 acres, of which 23 acres is used by Sam's Club
for building space and parking. Plans for a 90 acre residential development near Sam's Club has recently been
announced. According to members of the Salina Area Chamber of Commerce, Sam's Club was attracted to Salina
because of its stares as a regional trade center. No lax abatements were given by the City to Sam's Club.
Approximately 125 people are employed at the new facility.
In 1992 Philips Lighting announced plans of expansion to its existing plant located just outside the City.
The plant employs approximately 57S people which is expected to rise by 4S with completion of the new addition.
The project calls for the construction of a new high speed production line for fluorescent lights. It is estimated that
the new equipment will cost approximately $21.5 million, with $7.5 million of remodeling being undertaken. Philips
received full tax abatement over the next five years and one-half tax abatement for the following five years on the
equipment fi'om the County Commission.
The Kansas Highway Patrol Center recently completed a contract to purchase and renovate a majority of
the campus of the former Marymount College in the City. The SS million project will provide a new headquarter
site and trainIng facility for state highway troopers and motor carrier inspectors. This is the only facility of its kind
in the state of Kansas. Marymount College closed operations in 1989 and the campus had been vacant. The Kansas
Highway Patrol Training Center had previously been located at the Salina Ah~ort Industrial Center. The project
includes $1.6 million to purchase the property from the Catholic Diocese and $3.4 million for renovations, and
received the required approval of the Kansas Legislature.
REMA Bakeware, a maker of cooking pans and sheets, recently announced plans for the expansion of its
production facility within the City. The $1.8 million project will increase plant size by approximately 70% and
create approximately 18 new jobs. An estimated 159 people will be employed after completion of the project.
REMA is a subsidiary of the Newell Company, a Fortune 500 company. A tax abatement similar to the incentives
provided to Philips Lighting was given to REMA by the City Commission.
Sutherland Lumber Company, a Kansas City, Missouri based business, opened a facility in the City in 1993.
Sutherland occupies a building formerly leased by Wal-Mart. Wal-Mart constructed a new building in the City and
moved several years ago. The Sutheriand facility brings the total number of stores nm by the company to
'approximately 85 nationwide. Sutherland employs approximately 100 people in its 85,000 square foot facility.
SP Plastics recently announced plans to purchase three new machines for its production facilities in thc City.
The total employment for this manufacturer of plastic hangers will more than double to thirty-one to handle increased
demand. Midwest Plastics, a manufacturer of bulk plastic, will be relocating in the City from Newton, Kansas.
Twelve people are expected to be employed. Salina Vortex Corporation recently announced a 19,000 square foot
expansion to its industrial value production facility in the City.
The City has recently joined into a cooperative with other municipalities in the State in an effort to provide
incentives for Beech Aircralt Corporations to secure a large government contract. The contract calls for the
construction of over 700 training planes and is worth an estimated $5 billion. The City Commission recently
approved the issuance of up to $60 million of industrial revenue bonds to finance the construction and equipping of
facilities to manufacture the planes in the City. The bonds may, however, be issued by Sedgwick County, Kansas
in conjunction with an interlocal cooperation agreement. The Salina Airport Authority has authorized the issuance
of $650,000 of general obligation bonds to finance infrastructure improvements for the potential Beech expansion.
Beech currently operates a component production facility in the City. If the government contract is secured, it is
estimated that Beech's employment in the City will increase from approximately 620 to over 850 people. The
contract is scheduled to be awarded in early 1994.
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Retail Sales
According to inforrnntion provided by the Salina Area Chamber of Commerce, the following graph shows
the level of retail sales during the years indicated for the City of Salino.
$ million
83 84 85 86 87 88 89 90 91
Year 19~
Source: Salina Area Chamber of Commerce
The Salina Airport Authority
The Salina Airport Authority was created in 1965 as a result of the closing of Schilling Air Force Base.
Th~ 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 of land which contained housing,
hangar, runway, sanitary sewer and other property formerly maintained by Schilling Air Force Base.
The facilities available to the Authority were developed into two uses: the Salina Municipal Ah'pon and
the Salina Airport Industrial Center. The Airport utilizes the former Air Force runway of over 13,000 feet w 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 atuacted several aviation related
industries and services to locate at the Salina Industrial Center. These aviation related operations include Beech
Aircraft, a division of Raytheon, Flower Aviation, Moore's Midway Aviation and the Kansas State University -
Salina, College of Technology.
The Authority has also been successful in attracting a wide range of other industries to the Salina Airport
Industrial Center. Currently, over 50 businesses are located within the Industrial Center. This includes 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, various state agencies and utility companies. In
addition to the 900 acres which currently comprise the developed portion of the Salina Airport Industrial Center, the
Authority has provided water, sewer and streets which open another 257 acres for new development.
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Unemployment Rate
The following graph shows the annual unemployment rate trend for the City of Salina and the State' of
Kansas since 198:5.
7.0%
5.0%-
4.0%- State of Kansa"~
3.0%-
2.0% ~
1.0%-
0.0% 19'86 19'87 1;88 1;89 1;90 1991 1992
City of Salina --- 6.5% ~.8% 5.4% 4,4% 4.~%
State o~ Ka~as ~ 5.4% 4.~% 4.8% 4.0% 4.~% 4.4~
-" * ~uly, 1~3
Source: Kansas Department of Human Resources
Police and Fire Protection
The City of Salina provides police and fire protection services to residents of the City and surrounding
areas. Fire fighting services are provided from four stations located throughout the City with 8:5 employees. The
fire department operates approximately 20 vehicles and provides emergency medical services. The police department
employs approximately 73 employees and twenty-two vehicles including patrol vehicles, motorcycles, and cushmans.
Transportation
In addition to Interstate Highways 70 and 13:5, Salina is also intersected by U.S. Highways 81 and 40.
Motor freight service in Salina is provided by approximately 20 freight companies with direct and connecting
schedules to all cities in the United States. Bus service also benefits from the City's location with transportation
available at regular intervals during each day in all directions.
Four railways including Union Pacific, Missouri Pacific, St. Louis Southwestern and Santa Fe Railroads
provide daily package-car service in and out of Salina. There are approximately fourteen 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 thirty miles of storage tracks are available.
U. S. Air Express provides daily air service to Salina through its hub in Kansas City, Missouri. There is
an average of four scheduled departures and four arrivals each day.
2O
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 15 elementary,
two middle, and two senior high schools. The District also operates alternative education, vocational-technical, and
special education schools. Total enrollment as of March 1, 1993 was approximately 7,811. Additionally, ther~ are
a number of parochial institutions which operate four grade schools, one junior and one senior high school. A
military school is located in the City which 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. According to the 1990 U.S. Census Bureau, 9,957 people in the City of Salina are enrolled in school.
Kansas state University-Salina
Action by the Kansas State Legislature in 1991 provided for the creation of a satellite campus of
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 new facilities are known as Kansas State University-
Salina, CollegeofTechnology. The University offers a variety ofengineeringtechnologydagreeprograms, 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, eleclrical, mechanical
engineering technologies, aeronautical studies, and avionics. The campus is located entirely within the boundaries
of the Salina Airport Industrial Center. The Salina Airport Authority projects that total enrollment for the Kansas
State University-Salina, College of Technology will reach approximately 800 full time and 1,200 part time students
by 1995.
The University has extensive plans for developing and improving the campus. These plans have been
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 have been pledged for use in funding certain capital improvements to the campus. Funds from the
tax have already been used to finance the construction of a $700,000 addition to the campus's Technology Center
and various infiastructure improvements to accommodate the additional traffic and buildings. In addition to the
improvements to be funded by the sales tax, the University recently completed construction of a laboratory addition
financed with revenue bonds and intends to construct a new dormitory facility for approximately 100 students.
Recently, the University entered into agreements with McDonnell Douglas Corporation and British Airways
to provide preliminary training for pilots. The training sessions will last for several months and are designed to be
the f~st steps towards training for commercial jet pilots.
Utilities
Electric and gas are supplied to the City by Western Resources. The Salina service area has 33,000 electric
customers and 52,000 gas customers. Telephone service is provided by Southwestern Bell Telephone. Two cellular
phone companies provide service to the City. Water and sewage services are provided by the City of Salina Water
and Sewage Department.
Health Facilities
The City is served by St. John's Hospital, a 173-bed facility and Asbury Hospital, a 212-bed facility. St.
John's and Asbury Hospitals are general hospitals for the diagnosis and treatment of all types of diseases and
conditions. St. John's was founded in 1914 by the Sisters of St. Joseph of Concordia, Kansas. Asbury began
operations in 1921. Both medical facilities have recently undergone substantial expansion projects. These expansions
increased the range of treatment capabilities and patient capacity for each institution.
21
Ther~ are approximately 123 physicians and 25 dentists practicing in the City. Every physician employed
or on staff at the Hospitals are 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
Six banks with aggregate deposits of appwximately $603 million are located in the City. One saving~ and
loan institution with deposits of $103 million is he~lquartered in the City and one other savings and loan has branch
office in the City.
Other Information
Public recreation facilities available include 17 public parks, a golf course, 18 baseball/softball fields, two
swimming pools, an art center, community theater, public museum, eight tennis courts, and ice skating and roller
skating facilities. The City's Parks and Recreation Department was a recipient of the 1992 National Institute of
Urban Wildlife's Distinguished Conservation Citation for two parks in the City. One of the parks is a certified
wildlife sanctuary that has been returned to native vegetation. Two private clubs provide additional recreational
opportunities for residents of the City.
Numerous concerts, exhibitions, conventions and other events are held in the 7,500 seat Bicentennial Center.
The Center has approximately 40,000 square feet of exhibit space.
Sixty-four churches serve the City's population representing approximately 20 denominations.
The SALINA JOURNAL has a daily circulation of approximately 30,000 in 30 counties.
The City was r~cently ranked 27th out of 219 cities in the Rating Guide to Life in America's Small Cities.
Ther~ are eight radio stations in the City including three AM, four FM, and one public FM station. Three
standard television stations f~om Wichita serve the Salina area. Additionally, Salina Cable TV provides access of
up to thirty-five television stations to paying customers.
There are approximately 20 motels with a total of an estimated 1,400 rooms in the City. Approximately
107 eating establishments are located in the City.
22
CERTMCATION OF THIS OFFICIAL STATEMENT
The preparation and distribution of this Preliminary Official Statement has been authorized by the City.
This Preliminary Official Statement is hereby duly approved by the governing body of the City and "deemed final",
except for the omission of certain information as provided in Securities and Exchange Corn _mission Rule I$c2-12
as of the date on the cover page hereof.
Dated: November 1, 1993
CITY OF SALINA, KANSAS
By/s/ Peter Brungardt
Mayor
ATTEST:
/s/ Jacqueline Shiever
Clerk
23
Financial Statements
The following is a portion of the report on examination of the City of Salina, Kansas for the fiscal year
ended December 3 l, 1992 prepared by the firm of Kennedy and Coe, Certified Public Accountants, Salina, Kansas.