Loading...
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. . @~; - - - 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 @ Copyright 2008, Moody's Investors Service, Inc. and/or its licensors including Moody's Assurance Company, Inc. (together, "MOODY'S"). All rights reserved. CREDIT RATINGS ARE MIS'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MIS DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. CREDIT RATINGS DO NOT CONSTITUTE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS ARE NOT RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. CREDIT RATINGS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MIS ISSUES ITS CREDIT RATINGS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY COPYRIGHT LAW AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, such information is prOVided "as is" without warranty of any kind and MOODY'S, in particular, makes no representation or warranty, express or implied, as to the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any such information. Under no circumstances shall MOODY'S have any liability to any person or entity for (a) any loss or damage in whole or in part caused by, resulting from, or relating to, any error (negligent or otherwise) or other circumstance or contingency within or outside the control of MOODY'S or any of its directors, officers, employees or agents in connection with the procurement, collection, compilation, analysis, interpretation, communication, publication or delivery of any such information, or (b) any direct, indirect, special, consequential, compensatory or incidental damages whatsoever (including without limitation, lost profits), even if MOODY'S is advised in advance of the possibility of such damages, resulting from the use of or inability to use, any such information. The credit ratings and financial reporting analysis observations, if any, constituting part of the information contained herein are, and must be construed solely as, statements of opinion and not statements of fact or recommendations to purchase, sell or hold any securities. NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER. Each rating or other opinion must be weighed solely as one factor in any investment decision made by or on behalf of any user of the information contained herein, and each such user must accordingly make its own study and evaluation of each security and of each issuer and guarantor of, and each provider of credit support for, each security that it may consider purchasing, holding or selling. MOODY'S hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MOODY'S have, prior to assignment of any rating, agreed to pay to MOODY'S for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,400,000. Moody's Corporation (MCO) and its wholly-owned credit rating agency subsidiary, Moody's Investors Service (MIS), also maintain policies and procedures to address the independence of MIS's ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually on Moody's website at www.moodys.com under the heading "Shareholder Relations - Corporate Governance - Director and Shareholder Affiliation Policy."