Audit - 2007 SW Report
~----...........~
KANSAS
Kdthleen Sebelius, Governor
Roderick L. Bremby, Secretary
DEPARTMENT OF HEALTH
AND ENVIRONMENT
www.kdheks.gov
Division of Environment
January 30, 2009
Mr. Rodney Franz
Director of Finance
City of Salina
300 West Ash, P.O. Box 736
Salina, Kansas 67402-0736
Re: Financial Assurance for Closure and Post-Closure Costs
Solid Waste Permit 0144
Dear Mr. Franz:
The Bureau of Waste Management reviewed the documents dated January 26, 2009 for
the purpose of demonstrating compliance with financial assurance requirements of K.A.R. 28-
29-2110. All financial assurance requirements are met for the year ended December 31, 2007. If
you have any questions, please contact me at bbusby@kdhe.state.ks.us or at 785-296-0680.
Thanks for your assistance.
Sincerely,
1:!YEi~z
Bureau of Waste Management
C: Lowenthal Singleton Webb & Wilson, P A
Certified Public Accountants
900 Massachusetts, Suite 301
Lawrence, Kansas 66044-2868
BUREAU OF WASTE MANAGEMENT
CURTISSTATE OFFICE BUILDING, 1000 SW JACKSON ST., STE. 320, TOPEKA, KS 66612-1366
Voice 785-296-1600 Fax 785-296-8909 www.kdheks.gov/waste
KANSAS DEPARTMENT OF HEALTH AND ENVIRONMENT
BUREAU OF WASTE MANAGEMENT
Solid Waste Form 1290
CHIEF FINANCIAL OFFICER'S LETTER FROM LOCAL GOVERNMENT
To: Kansas Department of Health and Environment
Attn: Bureau of Waste Management
I am the Chief Financial Officer of
City of Salina
a local government organized and existing under the laws of the state of Kansas. This letter is in support of
this local government's use of the local government financial test to provide financial assurance for the closure,
post-closure care, corrective action costs, or any combination of these, at the municipal solid waste landfill
identified in the following numbered paragraphs.
1. This local government is the owner or operator of the following municipal solid waste landfill for which
financial assurance for closure, post-closure care, corrective action costs, or any combination of these,
is demonstrated according to the provisions in KAR. 28-29-2110:
City of Salina Municipal Solid ~a~tQ landfill
4?q? Rllrmo ROod
Salina, KS 67401
Permit No. 144
Corrective Action $
Closure i- ,493 ,012 Post-Closure $3 ,206 ,006
[List additional sites and estimates on a separate sheet identified as "Attachment A"]
2. This local government also provides financial assurance for environmental obligations, or provides
environmental guarantees, to another local government entity through a financial test procedure at the
following site and jurisdiction (if none, enter "None"):
NONE
Post-Closure $
Permit No.
Corrective Action $
Closure $
Jurisdiction
[List additional sites, estimates and jurisdictions on a separate sheet identified as "Attachment B"]
Page 1 of 4 - Chief Financial Officer's Letter - Form SW1290 - August 9, 1999
This local government financial test is based upon the financial conditions existing as of the close of the latest
completed fiscal year ending on 12/31/2007
The accounting books and records of this local government are maintained according to the requirements of
generally accepted accounting principals (GAAP) for governments, or on a prescribed basis of accounting that
demonstrates compliance with the cash basis and budget laws of the state of Kansas, which is a
comprehensive basis of accounting other than GAAP for governments.
In support of this local government's use of financial test, I enclose the following documents:
(a) Comprehensive Annual Financial Report (CAFR), or other audited Annual Financial Statements for the
latest completed fiscal year;
(b) Auditor's Special Report; and
(c) Calculation and accumulation details supporting financial test amounts derived from the CAFR or other
audited annual financial statements.
I certify that this local government:
(a) Has no general obligation bonds outstanding which are rated lower than Moody's Baa or Standard &
Poor's BBB;
(b) Is not currently in default on payments of interest or principal on any general obligation bonds;
(c) Has not operated at a deficit exceeding 5% in each of the two latest completed fiscal years;
(d) Has passed the financial ratio test or the bond rating test specified for the use of local governments
according to the provisions in K.A.R. 28-29-2110; and
(e) Has not used the local government financial test to provide financial assurance for closure, post-
closure, corrective action costs, or any combination of these, in excess of 43% of revenues as defined
in K.A.R. 28-29-2110.
SIGNED FOR THE LOCAL GOVERNMENT
Name
Director of
1/21/2009
ISI
Title
Date
Page 2 of 4 - Chief Financial Officer's Letter - Form SW1290 - August 9, 1999
2. Total Annual Revenues $ 63,179,171
3. Total Annual Expenditures $ 52,165,014
4. Cash plus Marketable Securities $30,380,722
5. Annual Debt Service $6,687,535
6. Long-Term Debt (Issued in the Current Year) $14,087,496
7. Non-Routine Capital Expenditures $12,088,491
KANSAS DEPARTMENT OF HEALTH AND ENVIRONMENT
BUREAU OF WASTE MANAGEMENT
LOCAL GOVERNMENT
FINANCIAL RATIO TEST
Sum of the Environmental Obligations Assured by the Test
1.
Total from the Chief Financial Officer's Letter
Ratio Test Factors from the CAFR or Annual Financial Statements
[Attach details of calculation or accumulation of amounts from CAFR or AFS]
[Omit Lines 6 and 7 if GAAP for Governments accounting and reporting method is used]
Financial Ratio Test Calculations
Environmental Obligations I Total Annual Revenues
(Line 1 divided by Line 2 = < 0.43)
Total Annual Revenues I Total Annual Expenditures
(Line 2 divided by Line 3 = > 0.95)
Cash and Marketable Securities I Total Annual Expenditures
(Line 4 divided by Line 3 = > 0.05)
Annual Debt Service I Total Annual Expenditures
(Line 5 Divided by Line 3 = < 0.20)
Long-Term Debt I Non-Routine Capital Expenditures
(Line 6 divided by Line 7 = < 2.00)
[Omit Line 12 if GAAP for Governments accounting and reporting method is used]
8.
9.
10.
11.
12.
Page 3 of 4 - Chief Financial Officer's Letter - Form SW1290 - August 9, 1999
~ ,699 ,018
9.02%
121.11%
58.24%
12.82%
1.17
KANSAS DEPARTMENT OF HEALTH AND ENVIRONMENT
BUREAU OF WASTE MANAGEMENT
LOCAL GOVERNMENT
BOND RATING TEST
Sum of the Environmental Obligations Assured by the Test
1.
Total from the Chief Financial Officer's Letter
$ 5,699,018
Ratio Test Factors from the CAFR or Annual Financial Statements
[Attach details of calculation or accumulation of amounts from the CAFR or AFS]
Total Annual Expenditures
$ 63,179,171
$ 52.165,014
2.
3.
Total Annual Revenues
Bond Rating Test Calculations
5.
Environmental Obligations / Total Annual Revenues
(Line 1 divided by Line 2 = < 0.43)
Total Annual Revenues / Total Annual Expenditures
(Line 2 divided by Line 3 = > 0.95)
9.02%
4.
121.11%
Bond Rating
6. Amount, Description, Issue Date and Due Date of Rated General Obligation Bonds
3,600,000 2008-B
7.
Currently Assigned Bond Rating
Aa3
8.
Rating Agency
IVloodys
[Attach written evidence of the current bond rating]
Page 4 of 4 - Chief Financial Officer's Letter - Form SW1290 - August 9, 1999
Expenditures
Total Expenditures from the Combined Statement of Revenues,
Expenditures, and Changes in Fund Balances (Statemant 2)
Less Specifically Identifiable Capital Outlays
Net Governmental Funds Expenditures
From the Combined statement of Revenues, Expenses and
changes in Net Assets:
Total Operating Expenses of Enterprise Funds before depreciation
Total Non-operating revenues (net) of Enterprise funds (if
negative)
Totai Non-operating revenues (net) of Internai Service funds (~
negative)
Net Proprietary Funds Expenditures/Expenses
Total Expenditures
Revenues
From the Combined Statement of Revenues, Expenditures, and
Changes in Fund balance (Statement 2)
Total Revenues, Governmentai Funds
From the Combined statement of Revenues, Expenses and
changes in Net Assets:
Total Operating Revenues of Enterprise Funds
Total Non-operating revenues (net) of Enterprise funds (if positive)
Totai Non-operating revenues (net) of Internai Service funds (if
positive)
Total Proprietary Fund Revenue
Total Revenue all funds
Current Operating Balance
Cash and Current Investments
Generai Fund
Special Revenue Funds
Debt Service Funds
Enterprise Funds
Internai Service Funds
Total Cash and Investments:
2007
2007
Capital
Special Projects
General Fund Revenue Funds Debt service Fund fund
14,195,130 _
$ 135,111
2007
Totals
26,001,209 $ 11,673,508 3,457,680 $ 41 ,132,397
807,691 $ 2,489,933 0 $ 3,297,624
25,193,518 9,183,575 3,457,680 $ 37,834,773
Enterprise Internal Service
Funds funds
$ 14,330,241
25,597,011 $ 14,015,420
2,879,485
627,226
2,879,485 $ 627,226 $ 43,119,142
$ 25,597,011
14,015,420
Enterprise
Funds
internai Service
funds
$ 19,879,220_
180,809
$ 19,879,220
180,809
2007
$ 5,782,466
$ 7,486,811
$ 1,210,457
$ 12,357,493
$ 3,543,495
$ 30,380,722
Alternative
Ratios and Misc. information for 2007 IA 18
1.(a) Sum of closure costs assured by financiai Test 2,493,012 2,493,012
1.(b) Sum of post-closure costs assured by financial test 3,206,006 3,206,006 3,206,006
1. c Sum of closure and post-closure costs assured by financial tes 5,699,018 5,699,018 5,699,018
2. Total Revenues $ 63,179,171 $ 63,179,171 $ 63,179,171
3. Totai Expenditures $ 52,165,014 $ 52,165,014 $ 52,165,014
4. Cash and Current Investments $ 30,380,722 $ 30,380,722 $ 30,380,722
5. Debt Service on Long Term Debt (From Statement 2,4, notes) $ 6,687,535 $ 6,687,535 $ 6,687,535
6. Capitai Expenditures $ 12,088,491 $ 12,088,491 $ 12,088,491
7. Long term Debt issued $ 14,087,496 $ 14,087,496 $ 14,087,496
Closure/Post Closure as a percent of revenue (Une 1 clUne 2)
(Must be less than 43%)
Revenues divided by expenditures greater than .95
Cash divided by Expenditures greater than 5%
Debt Service divided by total expenditures less than 20%
15 long term debt divided by Capital iess than 2.0
9.02%
9.02%
9.02%
121.11%
121.11% 121.11%
58.24%_
12.82%
1.17
58.24%
12.82%
-
solid waste financial assurances breakeven,xls
$14,195,130
135,111
$
$
$ 14,330,241
$52,165,014
$ 20,060,029
$63,179,171
$11,014,157
1/20/2009
~
"
LOWENTHAL SINGLETON WEBB & WILSON
PROFESSIONAL ASSOCIATION
David A Lowenthal, CPA
Patricia L. Webb, CPA
Audrey M. Oderrnann, CPA
CERTIFIED PUBLIC ACCOUNTANTS
Abraun M. Chrislip, CPA
Caroline H. Eddinger, CPA
Grant A Huddin, CPA
Brian W. Nyp, CPA
Thomas H. Sewell, CPA
900 Massachusetts, Suite 301
Lawrence, Kansas 66044-2868
Phone: (785) 749-5050
Fax: (785) 749-5061
E-mail: Iswwcpa@lswwcpa.com
Members of American Institute
and Kansas Society of
Certified Public Accountants
Independent Accountant's Report on Applvina Aareed Upon Procedures
Mayor and City Commission
City of Salina, Kansas
We have performed the procedures enumerate below, which were agreed to by the City of Salina, Kansas, solely to
assist the City in meeting the requirements of the Kansas Department of Health and Environment (KDHE), as specified
in K.A.R. 28-29-2110, for the year ended December 31, 2007. The City is responsible for the subject matter of this
engagement. This agreed upon procedures engagement was performed in accordance with standards established by
the American Institute of Certified Public Accountants. The sufficiency of these procedures is the responsibility of the
specified users of the report. Consequently, we make no representation regarding the sufficiency of the procedures
described below either for the purpose for which this report has been requested or for any other purpose.
The procedures that we performed were as follows:
1. We compared amounts and tested the computations to determine that the amounts for total annual revenues, total
annual expenditures, cash plus marketable securities, annual debt service, long-term debt issued in the current year,
and non-routine capital expenditures, as stated in the Financial Ratio Test section of the chief financial officer's letter
dated January 21, 2009, were derived from the audited annual financial report of the City of Salina, Kansas, for the
year ended December 31,2007, and were adjusted according to the definitions in K.A.R. 28-29-2110(b).
2. We tested the computation of the ratios stated for liquidity and debt service and the use of funds in the Financial
Ratio Test section of the chief financial officer's letter dated January 21, 2009, and found them to equal or exceed
the requirements of K.A.R. 28-29-211 0(c)(2).
3. We tested the computation of the ratio of total operating revenues to total operating expenditures, and the ratio of
the sum of closure and post-closure costs to total operating revenues, and found them to equal or exceed the
requirements in K.A. R. 28-29-211 0(c)(5)(C) and K.A.R. 28-29-211 0(f)(1 )(A) or (8).
4. We noted compliance with K.A.R. 28-29-2110(c)(3) in the preparation of the annual financial statements of the City
of Salina, Kansas, for the year ended December 31, 2007, in conformity with generally accepted accounting
principles for local governments.
5. We noted compliance with K.A.R. 28-29-211 0(c)(5)(D) in that the report of independent certified public accountants
dated December 16, 2008, included a statement to the effect that the basic financial statements for the year ended
December 31, 2007, "present fairly, in all material respects," the transactions and balances of the City of Salina,
Kansas, on the basis of accounting described.
t
..
We were not engaged to, and did not, perform an audit, the objective of which would be the expression of an opinion on
the City of Salina Chief Financial Officer's letter to KDHE dated January 21, 2009. Accordingly, we do not express such
an opinion. Had we performed additional procedures, other matters might have come to our attention that would have
been reported to you.
This report is solely for the use of the City of Salina, Kansas, and KDHE, and should not be used by those who have not
agreed to the procedures and taken responsibility for the sufficiency of the procedures for their purposes.
d~/-1u,~J ~~~~;J
Professional Association
January 23, 2009
709 agreed upon proe 07.doe
e
e
.
CDM
555 17th Street-Suite nOD
Denver, Colorado 80202
tel: 303 383-2300
fax: 30:1 308.3003
May 15,-2008
Mr. Jim Teutsch
Operations Manager
Department of Public Works, General Services
City of Salina
412 East Ash Street
Salina, KS 67401
Subject:
2008 Closure Cost, Post-closure Cost, and Landfill Life Estimates
Dear Mr. Teutsch:
On behalf of the City of Salina, Camp Dresser & McKee Inc. (CDM) has prepared the enclosed
2008 Oosure Cost, Post-closure Cost, and Landfill Life estimates for the City of Salina
Municipal Solid Waste Landfill (MSWLF), Permit #144. The enclosed forms are required in
submittals related to financial assurance plan updates and, operating permit renewals.
Specifically, these forms should be submitted to the Kansas Department of Health and
Environment (KDHE) by June I, 2008.
Please call me at (303) 383-2300 or Monica Williams if you-have any questions regarding these
costs.
Very truly yours,
)29')e-;
JamesJ. Kriss, P.E.
Project Engineer
Camp Dresser & McKee, Inc.
cc: Ron Rouse, City of Salina, landfill file
8558-58456-Tsk2 amend
2000 SaUna Cost cover.doc
consulting. engineering. construction, operations
CLOSURE COST ESTIMATE WORKSHEET FOR MSW LANDFILL FORM 1
OWNER:
City of Salina. KS
PERMIT NO.
144
e
CURRENT PERMIT RENEWAL YEAR:
2008
Total Volume of Site:
24.114.000
CU. YDS.
TOTAL PERMITTED DISPOSAL AREA:
280
ACRES
CONVERSION FACTOR: 4840.02 SQ. YD'S.lACRE
AREA CURRENTLY OPEN:
29
LARGEST AREA TO EVER BE OPEN AT ANY TIME:
ACRES
CONVERSION FACTOR: 0.3333 YDS./FT.
29
ACRES (use this area for estimating closure costs)
.
ITEM I QUANTITY I UNITS I UNIT COST I COST I S
Low Permeability Soil Layer
Preparation oflandfill to receive cover (final grading) 29 ACRE $ 53.75 $1,559 ~!!~1ii~!i!!ii~!!llli!
General fill to reach surrounding grades 112933 CU. YD. $ 1.77 $199,892
Clay--compacled, offsile (J 8") NIl'.. Cu. YD. $ 10.63 $ NIl'..
Clay.-compacred, onsite (I 8') 70,180 Cu. YD. $ 5.67 $397,921
Low Permeability Soil Layer Subtotal nnw;m;~m~ji;;~H;;~H~~1~~;m~m~W~m~~~H~;H~~;lW;WmjmWm11W~;11;~~H;i;;HHHHH~mHmmHHm; $599,371
Geomembrane and Drainage Layer
Drainage material- sand (12') 46,787 CU. YD. $ I 1.00 $514,653 1IIIIll/III!llllli]!lllllill!11
Drainage material- geogrid NIl'.. SQ. YO $ 4.18 $ NIl'..
Geomembrane 140,360 SQ. YD. $ 3.90 $547,404
Geomembrane and Drainage Layer Subtotal ~i;W;HHi~1HH1~lHHH!1H!~;;lHf;~Hi!i$liW~HH!i!~!i;i1~;~11W~~;HHH~H~i;~i~H~H;~;l;i;HH~~~l~~l~;mmm~HH $1,062,057
Protective Soil (Veeetative) Layer
Soil--offsite (IS") NIl'.. CU. YD. $ S.20 $ NIl'.. Illllllil!I!IIIIIIII~lllillllll
Soil--onsite (I S") 58,483 CU. YD. $ 1.77 $103,516
Seeding and mulching 29 ACRE $ 1,500.00 $43,SOO
Protective Soil (Vegetative) Layer Subtotal mHWmmmHW~W~~H;iHH;~j~!m~mm;!~~H~i~1~11~H;;H~;;im;~~~mmHH~~~HHH;~H;~~i~~i~;~;i;;~;HWHH; $147,016
Erosion Control
ITerraces 7,600 Lin. FT. $ O.sS $4,180 1111111111111,lllilllllill!1111
Grass ditching/channels 3,000 Lin. FT $ 9.00 $27,000
IRiprap ditching/channels NIA Lin. FT .$ 13.00 $ NIA
1= Control Subtotal i~H~~H1~~H~~;iH~~;HHHWm~~H~H~~jHl;m~~H~~~~~~m;mjWi;;H;;~;~;HH~~;HW!~;~~~;:~WW;~;H;;i!;;;H~~;;~~j $31,180
Gas System
Gas vents, 29 # ofvenls, 50' average depth I 1450 I Lin. FT. I $ 6S.00 $94,250 li;Hl;;;;; i;i;;iii;;;;; ;;i;;;ii
Passive System
Passive well head flare 29 I EACH I $ 500.001 $14,500 l,ii;i;iiiiiHHiHUiji;ijiii
Active System
Flare, BTUlhour Nfl'.. I EACH I N/AI $ NIl'. llllllllmmmmlllllllllll
Ancillary gas equipment NIl'.. I Lump Sum I N/A $ NIA
Gas System Subtotal ~~~;~HH~;HHHi!~~iHnHHlijH~H~H~~;HH!HHHH1;~~WHHHH1;H1Wi~~H~1HH~~~;;;HHiHHHm~HHHHHi;1~H!~~ $108,750
Professional Services
Engineering (Bid Documents) 1 Lump Sum $ 82,000.00 $82,000 Ilillll!llllllll!l!llllllllllll
Topographic and Boundary Survey 1 Lump Sum $ 10,000.00 $10,000
Engineering (Construction Oversight) 1 Lump Sum $ 226,000.00 $226,000
Professional Services Subtotal iHHHiH~i~~~;l~mWmHWHH~il~1~1Hi~~jmmmmHni~m~iH1i1H~iHi~HH~~i~j~~~m!w~W!~m~!H~1~HHHlW. $318,000
I Closure Cost Subtotal $2,266,374
Miscellaneous
10% Administration and Contingency (Total Closure Cost Subtotal x 10%) I I I $226,637 1~~1 ~~~~ ~j ~ 1~ Hi~i ~;~H~;1!~i ~~
Misc. Sulitotal I I I $226,637
TOTAL CURRENT CLOSURE COST $2,493,012
Contact Person/Cost Estimate Prepared By:
Phone Number: 303.383.2300
Jim Kriss. P_E.. COM
Last edit date: Aprll14, 1998 1.Q5113J02
Note: Pages 1, 2, and 3 must be submitted at the time of renewal.
.
POST-CLOSURE COST ESTIMATE WORKSHEET FOR MSW LANDFILL FORM 2
OWNER:_City of Salina, KS
.URRENT PERMIT RENEWAL VEAR:_2008_
TOTAL PERMITTED DISPOSAL AREA:_280_ ACRES
(use this area for estimating post-clsure cost)
PERMIT NO._144
Total Volume of Site:_24,114.000__ CU. VDS.
CONVERSION FACTOR: 4840.02 SQ. VDS./ACRE
CONVERSION FACTOR: 0.3333 VDS.lFT.
ITEM I QUANTITY I UNITS I UNIT COST COST I SUBTOTALS
Cover Repair for 5% of the Landfill Area
.5% of the landfill area, 14.00 Acres
Soil--offsite (12") NJA I CU. YD. I $ .5.201 $ N/A '1!!!!ilil!!il!I!I!I!i!lilililill
Soil--onsite (l2'? 22,.587 I CU. YD. I $ 1.77 $39,978
Cover Repair Subtotal ;H~~~;~HHjH~H~HHi~~~HHHHH~~~~i~~~H~H~;~i~~~~i~;~~i1WH!!HH~i~fl[~W~~l~~HH!~imW~W~;~HWnmH $39,978
Seeding (Reseed 5% of the Landfill Area)
.5% ofthe landfill area~acres
Seeding and mulching I 14 I ACRE I $ 1,.500.001 $21,000 uwwmm: ii~i:i~i::~i: 1r:
Seeding Subtotal m:nmi::!:1W1~!::1:Hi::::!::!:i:HH:;1H;iHH;Hi1i!i!i:!!iHH1Hii;:!1i:;HH::1!:::iHH;~i:;i!i1:::!H:;HHI $21,000
Leachate Collection
generation rate 12.800 gallaclyr ( .588,800 gallyr) I
Operation and maintenance ofleachate collection system I yr. $ 3,000.00 $3,000 lili1Iiri,'iililill!!lllli;
Leachate hauling dislance 2 miles, 84 /I trips/year 84 trip $ 100.0 $8,400
Leachate treatment 252,000 gal. $ 0.0024 $60.5
Leachate management and treatment onsite N/A Lump Sum $ 1,000.00 $N1A
Leachate sampling 1 trip $ 500.00 $.500
Leachate analysis I event $ .500.00 $500
Leachate Colleclion Subtotal ;l~m~W~~mif~;H;;Hi;~;;~~1~H1;~;~i;;;;;;;~;;~~j;~;;~~;i~~HHi;~lji;iH!~;~iHH~H;~;j~~HW1m~~;1H~WHmH SI3,oo.5
Lllndfill Gas Monitoring
Quarterly methane moniloring at site boundary I 4 event I $ 1,250.001 $.5,000 ! Hi! ::~?:::i;i!i1 :::U~~::~!
Landfill Gas Monitoring Subtotal r:Hm:m:mm:~i::ii!i!ijUH!HiUH:im:iH:HiWmH:H!Hi!i1H:1m:i!:HiWi1iWmU:::i:Hm::H $.5,000
Landfill Gas Extraction System
einstallation of methane vents (1% of the total system length/yr.) 14..5 Lin. n I $ 6.5.001 $943 :11]illlilli!illl!I!III!lllilliii
peration and maintenance of gas extraction system N/A I Million Co. Fr. NJAI $ N/A
Landfill Gas Extraetion System Subtotal ;~~;~HnHH1~~Hm~~j~W~i~HWm~~1;~i:H]HW~mHHHi~!~HHn!lHHi;~W~;n~~lH1;HilWl~iH~i~i~m;1~~;1 $943
Groundwater Monitoring
~5 .11 wells in tbe approved system (no additional wells sampled annually)
Sampling personnel labor (2 events/year min.) 80 hr. $ 35.00 $2,800 '~ii!llii!:I~~I~iilillill!!
Sample event mobilization (2 events/year min.) 200 mile $ 0..51 $101
i\nalytical coslS (2 events/year min.) .50 sample $ 220.00 $11,000
onitoring well maintenance 2.5 well $ 13.00 $32.5
[onitonng well replacement ( 935 total lin. ft. of all groundwater wells) 2.5 well $ 100.00 $2,500 : :;::~::: =::;:;:: :;:::;:;:i =: ::::
roundwaler Monitoring Subtotal m~;~WH1imHW~~iH~j;j~B~;HjijH;lfW;H~i~1;HnmWm;~m~~~1imW;m~~;~;~H;l;W;;;HnHHHW~m $16,726
Inspections and Reeordkeeping
inspections and recordkeeping I 1 I Lump Sum I $ 500.001 $.500 1~:;1::i::W~:1!::!!::i:!:1i;!H!
InSpections and Reeordkeeping Subtotal liHHHmnHn:mW1U1m1nm:W!mi:HHn1ii:WiWH:!HH~i::H:;:;;:::~H;;::m:1im:::m~1::!;::Wi!H $.500
Remedial System Operations
emedia\ system operations I N/A I Lump Sum N/A $ N/A ~ ~~Hl~ ~!~!H~!W1~;1i~~~~~~ 1~~:
emedial System Operations Subtotal [!1!~i!i!1m1:iiH~:1:::i!i:::H::~iHHm;:~n;:HHWH;W:HWHiHW;H;HiHWH:::HHH:;iHi;:i!::i1!i1: SO
~stjmated Annual Post-Closure Cost (sum of all subtotals above) S97,I52
Administration and Continl!encv
Administ.ation and Contingency (Total Estimated Post-Closure Cost x 10% I I I $9,715 ~mmm~~mmmmmm;~
Administration and Contingency Subtotal I:W:WiWiH!;i:iH!Hiii::::H:Hii::i!~H~HH:W:W::::ii;!;W1H:~:;ij::H:;:::!!~i;!ii~i::1iijH:i1:ii:::W! $9,715
TOTAL ESTIMATED ANNUAL POST-CLOSURE COST ~I
ESTIMATED 30 YEAR POST-CLOSURE COST Annual )( 30
Contact Person/Cost Estimate Prepared By:
Phone Number: 303-383-2300
Jim Kriss, P.E., COM
, No leachate collection system in original landfill; annual leachate collection calculated for Cells 1 through 4, approximately 46 acres.
. Leachate hauled in quantities of 3.000 gaVtrip.
Last edit date: April 12.1998 )-05/13/02
Note: Pages 1. 2. and 3 must be submitted at the time of renewal.
ESTIMATED LIFE WORKSHEET FOR MSW LANDFILL FORM 3
OWNER:
City of Salina. KS
PERMIT NO.
144
.
CURRENT PERMIT RENEWAL YEAR: 2008
CONVERSION FACTOR: 4840.02 SQ. YDS./ACRE
CONVERSION FACTOR: 2000 LBS./TON
CONVERSION FACTOR: 0.3333 YDS.JFT.
Landfill Site Data OUANTlTY UNITS
TOtal Site Area , 640 ACRES
Total Area Permitted to Receive Waste 280 ACRES
Total Area Currently Onen .. 29 ACRES ,
Total Area That Received Final Cover 83 ACRES
Identify Cells That Received Final Cover by Name or Phase AREA. UNITS
1. Name or Phase: Orirdnal Area (not Subtitle-D) 62 ACRES
. Name or Phase: CellI and Cell 2 19 ACRES
. Name or Phase: ACRES
. Name or Phase: ACRES
Life of Cell I Landfill Data QUANTITY UNItS
Annual Average Tonnage Received (A) 1 100,626 Tons
Averal!e Comnacted DensItv of Waste ill) 944.5 Ibs/CU. YD.
. Soll-to-Waste Ratio (C) 1 0.167
Calculation for Annual Volume QUANTITY UNITS
Average Annual Volume (CU. YDS.) - I(A x 2000)JB] x 11 + CI 248,662 CU. YDS.
Total Volume CaDacitv of Oril!inal Site 24,144,000 CU. YDS.
Total Remainin2 Volume CaDacitv of Site 17540,632 CU. YDS.
Remainin!! Life of Landfill 70.5 YEARS
Contact person/Cost Estimate Prepared By: Jim Kriss P.E.. COM
Phone Number: 303-38;3-2300
1 Besed on actual 2007 quantity of waste received (data from City of Salina)
2 Soil used for dail}' and intermediate cover occupies landfill all'$pace. The soil-la-waste ratio accounts for the landfill space occupied by soil.
Most soil-ta-waste retion estimates range from 1:3 (33%) to 1:10 (10%). KDHE recommends 1:5 (16.7%).
last edit date: April 14. 1998 1-05/13/02
Note: Pages 1, 2. and 3 musl be submilled at the time of renewal.
.
@~;
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Moody's Investors Service
100 N. Riverside Plaza
Suite 2220
Chicago, IL 60606
December 16, 2008
Mr. Rodney Franz
Finance Director
City of Salina
City Hall
300 West Ash
Salina, KS 67402
Henrietta Chang
Vice President/Sr. Analyst
Tel: 312.706.9960
Fax: 312.706.9999
E-mail: henrietta.chang@moodys.com
Dear Mr. Franz:
We wish to inform you that on December 4, 2008, Moody's Rating Committee reviewed
and assigned a rating of Aa3 to Salina (City of) KS's General Obligation Internal
Improvement Bonds, Series 2008-B.
In order for us to maintain the currency of our ratings, we request that you provide
ongoing dis<,:losure, including annual financial and statistical information.
Moody's will monitor this rating and reserves the right, at its sole discretion, to revise or
withdraw this rating at any time in the future.
The rating, as well as any revisions or withdrawals thereof, will be publicly disseminated
by Moody's through normal print and electronic media and in response to verbal requests
to Moody's ratings desk.
Should you have any questions regarding the above, please do not hesitate to contact me
or the analyst assigned to this transaction, John Humphrey, at 312-706-9962.
Henrietta Chang
cc:
Mr. David Arteberry
George K. Baum & Company
..............,.,. ....
Global Credit Research
New Issue
5 DEC 2008
New Issue: Salina (City of) KS
MOODY'S ASSIGNS Aa3 RATING TO THE CITY OF SALINA'S (KS) $3.6 MILLION GO INTERNAL
IMPROVEMENT BONDS, SERIES 2008-B
Aa3 AFFIRMATION AFFECTS $32.7 MILLION OF OUTSTANDING DEBT
Municipality
KS
Moody's Rating
ISSUE RATING
General Obligation Internal Improvement Bonds, Series 2008-B Aa3
Sale Amount $3,600,000
Expected Sale Date 12/08/08
Rating Description General Obligation
Opinion
NEW YORK, Dec 5, 2008 -- Moody's Investors Service has assigned a Aa3 rating to the City of Salina's (KS)
$3.6 million General Obligation Internal Improvement Bonds, Series 2008-B. Concurrently, Moody's has
affirmed the Aa3 rating on $32.7 million of the city's long term general obligation debt. Though ultimately
secured by Salina's general obligation unlimited tax pledge, the city expects debt service to be repaid from
TIF revenues. Proceeds will reimburse developer costs related to site preparation and improvements
allowing for a retail development to occur. Assignment of the Aa3 rating represents the city's stable tax base
which serves as a regional economic center, healthy reserve levels despite some expected near term
declines, and an average amount of rapidly retired debt.
STABLE TAX BASE SERVES AS REGIONAL ECONOMIC CENTER
Located in Saline County 95 miles north of Wichita (general obligation rated Aa2/stable outlook), the City of
Salina's large $2.9 billion tax base has grown at a steady but relatively slow pace, averaging 4.2% annual
growth over the past five years. Officials expect future A V growth to be weak as the impact of the national
economic condition is felt locally. That said, no significant foreclosure or delinquency issues have arisen.
Located at the intersection of 1-70 and 1-135, the city serves as a regional retail, commercial, industrial, and
medical hub for the largely agricultural communities of north central Kansas. Management reports that the
city's retail operations draw on an eight to ten county region extending west serving approximately 1.4 million
residents. The Salina Airport Industrial Center is home to 80 organizations, with an aggregate 4,600
employees. Currently enjoying an occupancy rate of more than 90%, officials estimate that over 400
developable acres remain. Tenants include the Kansas Military Board, Hawker Beechcraft Corporation, and a
campus of Kansas State University. Aviation related employment has seen some losses and though Salina
does not have any direct Big 3 auto exposure, it does have several industries which are dependant on the
auto industry in general. The city's population has increased in recent decades: the 2000 census population
was 8% greater than the 1990 census population, and the 2006 estimated population of 46,458 was 1.7%
greater than the 2000 census population. Income levels are below state and national medians and have
declined in relative comparison in recent decades. Moody's believes that while the city's AV will likely grow at
a weak pace, growth rates should remain positive, and given the city's position as a regional retail hub,
Salina should continue to enjoy a level of economic stability.
RESERVE LEVELS EXPECTED TO REMAIN WITHIN LEVELS COMMENSURATE WITH RATING
CATEGORY DESPITE NEAR TERM REDUCTION
With sound management, Moody's expects the city's financial health to remain satisfactory, despite revenue
pressures and General Fund balance declines. The city posted a $1.2 million General Fund operating surplus
in fiscal 2006, due in part to favorable interest income and unfilled vacancies in the police department. The
fiscal 2006 ending General Fund balance of $8.2 million was a healthy 32% of General Fund revenues.
Historically, the city has maintained General Fund balances near 30% of revenues and has a formal policy of
keeping an unreserved General Fund balance of 15% to 20% of annual revenues. Audited 2007 results are
still not available, owing to delays from a component of the city, but officials do not expect any changes form
earlier projections which showed a General Fund decline in 2007 by approximately $1.1 million (on a cash
basis), largely due to costs associated with two floods and an ice storm. The city expects FEMA
reimbursement for a significant portion of the costs which it already has begun to receive.
The General Fund balance is projected to further decrease in fiscal 2008 and 2009 by $1.4 million and
$200,000, respectively (these estimated draw downs are on a cash basis and do not factor in the FEMA
reimbursement). The projected declines in reserves are due to expenditure pressures associated with
increased fuel costs (which have eased some), increases in employee salaries and benefits (city employees
are not unionized), and decreases in staff vacancies. Another factor in the projected General Fund balance
declines is recent state legislation that increased property tax exemptions for new machinery and equipment.
The new legislation, which took effect in 2006, is projected to shift some of the tax burden despite expected
state aid that will make up a portion of the cuts (although this state aid is not on a one-to-one basis). This
state aid will decline annually before phasing out completely in several years. Favorably, city officials have
implemented and will continue to consider implementing alternate revenue raising options, including
increasing property taxes (favorably, Kansas cities do not operate under state-imposed levy limits). The 2009
budget increased the total mill rate by 2, with the increase earmarked for debt service and funding for a new
public transportation service. This mill rate increase offsets the aforementioned machinery exemption.
Among the expenditure reductions the city is considering are cutting non-essential services and reducing non
publiC safety headcount. Moody's believes that city officials will make the revenue and expenditure
adjustments needed to resume structurally balanced operations. However, fund balance declines that exceed
projections or cause the General Fund to be out of compliance with the city's stated policy could pressure
credit quality.
Typical of Kansas cities, sales tax receipts represent the city's primary revenue source, comprising 43% of
fiscal 2006 General Fund revenues. Several different sales taxes are collected, including a 1% Countywide
Local Option Sales Tax and a 0.5% Citywide Local Option Sales Tax, both of which flow into the General
Fund, are used for general operations, and do not sunset. Both sales taxes have increased annually except
for modest declines in 2003, with average annual increases of 3% over the past five years. Officials report
that both sales tax receipts are continuing to grow in 2008, based on collections through October. Current
year-to-date collections are up over 4% from last year. An additional 0.25% citywide sales tax is dedicated to
capital projects. City officials recently received voter approval to renew and increase this rate to 0.4% with
the extra 0.15% allocated for a new aquatic center.
AVERAGE DEBT LEVELS; RAPID PRINCIPAL AMORTIZATION
Moody's believes the city's debt levels will remain manageable given rapid principal amortization and
continued moderate tax base growth. At 1.3% and 3.4%, respectively, the city's direct and overall debt
burdens are average, as are the debt per capita figures of $812 and $2,126 respectively. The city's overall
debt burden is driven in large part by the significant debt levels of Saline County Unified School District 305
(GO rated A 1). The current borrowing is made to ease floodplain issues to allow for a retail development to
move forward. Kohl's is the anchor of the new development, which has room for several other infill sites to be
developed. Officials believe that the Kohl's site alone (set to open spring 2009) should enable the
development to cash flow the debt service with roughly 1.2x coverage. Principal amortization of the city's
direct debt is rapid, with 76.9% of general obligation debt retired in ten years. The city generally issues a long
term and short term debt once or twice per year to fund projects outlined in its Capital Improvement Plan.
The city plans to borrow approximately $18 million in general obligation debt through 2012 to fund the city's
capital plan.
The principal methodology used in rating the district's Series 2008-A and 2008-B Bonds was The
Determinants of Credit Quality, which can be found at www.moodys.comin the Credit Policy &
Methodologies directory, in the Ratings Methodologies subdirectory. Other methodologies and factors that
may have been considered in the process of rating this issuer can also be found in the Credit Policy &
Methodologies directory. This report updates the last rating action taken July 9th, 2008
KEY STATISTICS
2007 Population (Estimate): 46,458 (1.7% increase since 2000)
2008 Full Value: $2.8 billion
2008 Full Value per Capita (Estimate): $62,654
Direct Debt: 1.3%
Overall Debt: 3.4%
Payout (10 Years): 76.9%
2006 General Fund Balance: $8.2 million (31.8% of revenues)
Unemployment Rate (9-2008): 4.1 %
2000 Per Capita Income as a % of State: 90.7% (86.1 % of US)
2000 Median Family Income as a % of State: 91.6% (90.8% of US)
Analysts
John Humphrey
Analyst
Public Finance Group
Moody's Investors Service
Beth A. Dougherty
Backup Analyst
Public Finance Group
Moody's Investors Service
Contacts
Journalists: (212) 553-0376
Research Clients: (212) 553-1653
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