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Financial Statements 1984 I I I I I I I I I I I I I I I I I I I CITY OF SALINA Salina, Kansas FINANCIAL STATEMENTS AND AUDITORS' REPORT December 31, 1984 KENNEDY AND COE Certified Public Accountants Salina, Kansas 1--_.. ,I I I I I I I I I I I I I I I I I I I Exhibit A Exhibit B Schedule 1 Schedule 2 Schedule 3 Schedule 4 Schedule 5 Exhibit A Exhibit B Exhibit C Exhibit D CITY OF SALINA Salina, Kansas CONTENTS Page AUDITORS' REPORT ON FINANCIAL STATEMENTS 1-2 AUDITORS' REPORT ON INTERNAL ACCOUNTING CONTROLS 3-4 AUDITORS' REPORT ON COMPLIANCE 5 FINANCIAL STATEMENTS SUMMARY STATEMENT OF RECEIPTS, EXPENDITURES, AND BALANCES BY FUNDS AND COMPARISON OF CASH BALANCES WITH ENCUM- BRANCES 6-7 STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET 8-25 NOTES TO FINANCIAL STATEMENTS 26-30 Supplemental Information Schedule of Indebtedness 31-32 Composition of Ending Cash Balances 33 Comparison of Gross Cash Balances with Depository Securi ty 34 Comparison of Special Assessments Projects Expenditures to Authorizations 35 Schedule of Active Federal Awards 36 AUDITORS' FINDINGS SCHEDULE OF AUDITORS' FINDINGS 37-38 SEPARATE FINANCIAL STATEMENTS - WATER AND SEWERAGE DEPARTMENT AUDITORS' REPORT 39 BALANCE SHEETS 40 STATEMENTS OF INCOME 41 STATEMENTS OF CONTRIBUTED CAPITAL AND RETAINED EARNINGS 42 STATEMENTS OF CHANGES IN FINANCIAL POSITION 43-44 NOTES TO FINANCIAL STATEMENTS 45-46 Contents I I I I I I I I I I I I I I I I I I I "f" ..-.- MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KENNEDY AND COE HOME OFFICE: P. O. BOX 117e SALINA, KANSAS 67",,01 913.825.1561 CERTIFIED PUBLIC ACCOUNTANTS OFFICES IN KANSAS NEBRASKA OKLAHOMA AUDITORS' REPORT ON FINANCIAL STATEMENTS To the Mayor and The Board of City Commissioners: We have examined the financial statements of the year ended December 31, 1984, included herein on included all funds and account groups except (1) Saline County-City Building Authority, Salina-Saline County Board of Health, and Salina Public Library, which we have previously examined and reported on separately. (2) Firemen's Relief Association, Salina Recreation Commission, Salina Arts Commission, Salina Housing Authority, and the Salina Airport Authority, which were examined by other auditors who issued their separate reports. Our examination was made in accordance with generally accepted auditing standards and the Minimum Standard Audit Program approved by the State Municipal Accounting Board and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. Ci ty of pages 6 Salina, Kansas for the to 30. Our examination The City of Salina maintains its accounting records and prepares its financial statements on the cash basis, modified by recording encumbrances. As discussed in Note 1, this basis of accounting and presentation differs in some respects from generally accepted accounting principles. Accordingly, the accompanying financial statements are not intended to present financial position and results of operations in conformity with generally accepted accounting principles. The City of Salina did not record its obligation in the amount of $58,000.00 to the Kansas Public Employees Retirement Fund as of December 31, 1983. In our opinion, the obligation should have been recorded as an encumbrance in order to conform with the City's method of accounting. If this obligation was recorded, the unencumbered cash balance of the City would decrease by $58,000.00 at January 1, 1984, and expenditures would decrease $58,000.00 for the year 1984. In our opinion, except for the effects of not encumbering the obligations as dis- cussed in the preceding paragraph, the accompanying financial statements present fairly the cash and unencumbered cash balances of the City of Salina, Kansas at December 31, 1984, and its receipts and expenditures for the year then ended in accordance with the method of accounting described in the preceding paragraph, which method has been applied in a manner consistent with that of the preceding year. -1- .;. I I I I The accompanying supplemental information presented on pages 31 to 36 is not necessary for a fair presentation of the financial statements, but is presented as additional analytical data. This information has been subjected to the tests and other auditing procedures applied in the examination of the financial statements mentioned above and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. I Respectfully submitted, I Salina, Kansas November 8, 1985 r~~~ I ~~ Certified Public Accountant in charge of and actively engaged on this audit. C.P.A. I I I I I I I I I I I I I -2- I I I I I I I I I I I I I I I I I I I ~. 0," ;" . <". MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS HOME OFFICE: P. O. BOX 1179 SALINA. KANSAS 67401 913-825.1561 OFFICES IN KANSAS NEBRASKA OKL.AHOMA AUDITORS' REPORT ON INTERNAL ACCOUNTING CONTROLS To the Mayor and The Board of City Commissioners: We have examined the financial statements of the City of Salina, Kansas, for the year ended December 31, 1984, and have included our report thereon on pages 1 and 2. As part of our examination, we made a study and evaluation of the system of internal accounting control to the extent we considered necessary to evaluate the system as required by generally accepted auditing standards and the standards for financial and compliance audits contained in the U.S. General Accounting Office's Standards for Audit of Governmental Organizations, Programs, Activities, and Functions. For the purpose of this report, we have classified the significant internal accounting controls in the following categories: 1. Receipts 2. Purchases/disbursements 3. Cash and investment balances 4. Financial reporting Our study included all of the control categories listed above. However, we did not perform compliance tests of the controls since, in our opinion, it was more efficient to perform primarily substantive audit procedures for transactions and balances applicable to the categories. The purpose of our study and evaluation was to determine the nature, timing, and extent of performing auditing procedures for expressing an opinion on the entity's financial statements. Our study and evaluation was more limited than would be necessary to express an opinion on the system of internal accounting control taken as a whole or on any of the categories of controls identified above. The management of the City of Salina, Kansas, is responsible for establishing and maintaining a system of internal accounting control. In fulfilling this responsibility, estimates and judgements by management are required to assess the expected benefits and related costs of control procedures. The objectives of a system are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with the established method of accounting. Because of inherent limitations in any system of internal accounting control, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the system to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the degree of com- pliance with the procedures may deteriorate. -3- 't,. "I ~; I I Our study and evaluation made for the limited purpose described in the first para- graph would not necessarily disclose all material weaknesses in the system. Accord- ingly, we do not express an opinion on the system of internal accounting control of the City of Salina, Kansas taken as a whole or on any of the categories of controls identified in the first paragraph. However, our study and evaluation disclosed the following condition that we believe to be a material weakness. I I Disbursement of funds lacks segregation of duties to the extent that the City Clerk, who approves all invoices for payment, also has control of the signature plate used for signing checks. I This report is intended solely for the use of the City of Salina, Kansas, the cogni- zant federal agency, and other applicable federal audit agencies and should not be used for any other purpose. I Respectfully submitted, I Salina, Kansas November 8, 1985 K~~~ I I I I I I I I I I I -4- I I I I I I I I I I I I I I I I I I I I i""'- '''', MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KENNEDY AND COE CERTIFIED PUBLIC ACCOUNT ANTS HOME OFFICE: P. O. BOX 1179 SALINA. KANSAS 67401 913.825-1561 OFFICES IN KANSAS NEBRASKA OKLAHOMA AUDITORS' REPORT ON COMPLIANCE To the Mayor and The Board of City Commissioners: We have examined the financial statements of the City of Salina, Kansas, for the year ended December 31, 1984, and have included our report thereon on pages 1 and 2. Our examination was made in accordance with generally accepted auditing standards; the provisions of Standards for Audit of Governmental Organizations, Programs, Activities and Functions, promulgated by the U.S. Comptroller General, as they pertain to financial and compliance audits; the provisions of the Office of Manage- ment and Budget's (OMB) Compliance Supplement-Uniform Requirements for Grants to State and Local Governments (the compliance supplement); the provisions of OMB's Circular A-102, Uniform Administrative Requirements for Grants-in-Aid to State and Local Governments, Attachment P, Audit Requirements; and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. Based on our examination, we found that, for the items tested, the City of Salina, Kansas, complied with the material terms and conditions of the federal award agree- ments, except as described in the Schedule of Auditors' Findings (pages 37 to 38). Further, based on our examination and the procedures referred to above, nothing came to our attention to indicate that the City of Salina, Kansas, had not complied with the signficiant compliance terms and conditions of the awards referred to above. This report is intended solely for the use of the City of Salina, Kansas, the cogni- zant federal agency, and other applicable federal audit agencies, and should not be used for any other purpose. Respectfully submitted, Salina, Kansas November 8, 1985 K"~ ~ {>>...,.L -5- I I I I I I I I I I I I I I I I I I I FINANCIAL STATEMENTS CITY OF SALINA Sa lina, Kansas SUMMARY STATEMENT OF RECEIPTS, EXPENDITURES, AND BALANCES BY FUNDS AND COMPARISON OF CASH BALANCES WITH ENCUMBRANCES Year Ended December 31, 1984 Fund Unencumbered Cash Ba lance January 1, 1984 General Fund $1,924,802.98 Special Revenue Funds Emergency Preparedness Street Machinery Special Gasoline Tax Federal Revenue Sharing Special Highway Improvement Fund Tourism and Convention Promotion Employee Benefit Fund Ut il i ty Fund Special Parks and Recreation Special Alcohol Programs Special Liability Fund Fair Housing Assistance Program Heritage Conservation Business Improvement District 5,810.89 75,495.68 212,244.53 18,273.76 43,933.27 94,103.30 65,011.67 138,620.64 455.99 54.27 146,829.50 0,285.09) 3,041.12 Debt Service Fund Bond and Interest 462,361. 90 Capital Projects Fund Construction Fund 700,984.11 Enterprise Funds Go If Cours e Sanitation Parking Meters Bicentennial Center Solid Waste Disposal Water and Sewerage Bicentennial Center Events Fund (Note 4) Da ta Process ing 20,251. 64 305,187.68 2,516.96 127,542.63 43,988.76 637,535.63 7,727.06 86.90 Water and Sewerage Bond Fund for Combined Water and Sewage System Refunding Revenue Bonds, Series of 1978 1,277 ,222.17 Water and Sewerage Reserve Accounts for Combined Water and Sewage System Refunding Revenue Bonds, Series of 1978 691,993.92 Receipts I I I I I I I I I I I I I I II I I I II $8,844,648.33 105,527.55 42,553.76 662,132.58 404,331.37 133,074.88 1,879,474.88 430,429.58 49,613.19 49,613.19 59,822.20 28,469.09 9,469.75 49,411. 43 2,071,266.48 1,342,224.17 216,653.68 683,463.17 42,072.95 609,668.01 302,383.14 7,124,915.26 606,406.82 219,691.37 214,214.28 47,068.65 I I Exhibit A I I Unencumbered I Cash Balance Encumbrances Cash Ba lance Expenditur'i's ,December 31, 1984 December 31, 1984 December 31, 1984 I $ 8,006,052.87 $2,763,398.44 $1,296,671.16 $4,060,069.60 105,868.62 5,469.82 3,175.73 8,645.55 I 31,933.60 86,115.84 86,115.84 719,482.20 154,894.91 13,002.61 167,897.52 403,743.07 18,862.06 13,518.00 32,380.06 I 43,933.27 43,933.27 143,271.07 83,907.11 6,332.70 90,239.81 1,802,039.16 142,447.39 273,348.94 415,796.33 I 477,875.87 91,174.35 42,022.26 133,196.61 50,000.00 69.18 69.18 49,667.46 31,742.34 174,909.36 904.85 175,814.21 I 18,164.69 3,019.31 3,019.31 3,808.70 8,702.17 8,702.17 48,721. 03 690.40 100.64 791. 04 I 2,077,232.80 456,395.58 456,395.58 I 2,002,402.83 40,805.45 3,921.26 44,726.71 I 219,993.51 16,911.81 15,632.91 32,544.72 667,733.36 320,917.49 5,513.62 326,431.11 I 43,923.11 666.80 666.80 647,913.65 89,296.99 70,807.77 160,104.76 240,804.48 105,567.42 6,285.92 111,853.34 7,199,163.08 563,287.81 167,449.13 730,736.94 I 605,772.99 8,360.89 8,360.89 190,856.81 28,921.46 4,797.17 33,718.63 I 1,491,436.45 I 739,062.57 I -6- I CITY OF SALINA Salina, Kansas SUMMARY STATEMENT OF RECEIPTS, EXPENDITURES, AND BALANCES BY FUNDS AND COMPARISON OF CASH BALANCES WITH ENCUMBRANCES Year Ended December 31, 1984 Fund Unencumbered Cash Balance January I, 1984 Water and Sewerage Principal and Interest Account for Combined Water and Sewage System Refunding Revenue Bonds, Series of 1984 $ Water and Sewerage Reserve Accounts for Combined Water and Sewage System Refunding Revenue Bonds, Series of 1984 Depreciation and Emergency Replacement Extension and Bond Retirement 577,773.87 582,678.03 Intragovernmental Fund Central Garage 7,510.06 Trust and Agency Funds Citizenship Trust HUD Community Development Cemetery Endowment Mausoleum Trust Mausoleum Endowment 11,691. 81 66,718.70 70,750.00 490.00 17,575.17 Totals (Memorandum Only) $8,333,979.51 The accompanying notes are an integral part of this financial statement. Receipts I I I I I I I I I I I I I I I I I I $ 540,867.98 525,744.30 53,033.51 54,418.47 499,968.82 998.65 150,227.19 5,790.34 $28,059,649.02 I II I I I I I I I I I I I I I I I I I I Expenditures $ 519,045.63 187,405.20 $28,725,117.15 Unencumbered Cash Ba lance December 31, 1984 $ 540,867.98 525,744.30 630,807.38 637,096.50 (11,566.75) 12,690.46 29,540.69 76,540.34 490.00 17.575.17 $7,668,511. 38 Encumbrances December 31, 1984 $ 31,866.30 4,853.61 $1,960,204.58 Exhibit A (Contd.) Cash Ba lance December 31, 1984 $ 540,867.98 525,744.30 630,807.38 637,096.50 20,299.55 12,690.46 34,394.30 76,540.34 490.00 17,575.17 $9,628,715.96 -7- I I I I I I I I I I I I I I I I I I I CITY OF SALINA Salina, Kansas STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 Exhibit B (Over) Under Actual Budget Budget GENERAL FUND Receipts Current tangible tax $1,326,021. 33 $1,348,625.00 $ 22,603.67 Vehicle tax 331,817.49 239,460.00 (92,357.49) Delinquent taxes 57,918.29 30,500.00 (27,418.29) Local sales tax 3,140,348.92 2,600,000.00 (540,348.92) Bingo gross receipts tax 19,411.72 18,000.00 0,411.72) Ci ty liquor tax 49,613.17 50,000.00 386.83 Local ad valorem tax reduction 223,920.22 221,000.00 (2,920.22) State shared taxes 165,076.07 170,000.00 4,923.93 Auto dealers tax stamps 12,334.82 12,000.00 (334.82) Highway maintenance 3,090.00 3,100.00 10.00 Licenses, fees and permits 209,993.06 225,480.00 15,486.94 Municipal court fines 343,376.87 350,000.00 6,623.13 Franchise taxes 1,165,927.44 900,000.00 (265,927.44) Rents and concessions 8,018.50 4,900.00 (3,118.50) Interest from investments 735,658.31 370,000.00 (365,658.31) Services and sales 179,353.13 159,600.00 09,753.13) Ambulance fees 149,235.93 120,000.00 (29,235.93) Fire protection - Outside city limits 168,910.88 132,000.00 (36,910.88) Reimbursement of expenditures 354,622.18 320,710.00 (33,912.18) Transfers from other funds 200,000.00 200,000.00 Total Receipts 8,844,648.33 7,475,375.00 0,369,273.33) Expenditures Department City Commission City Manager City Clerk City Attorney Municipal Court City Building Engineering Fire Inspection Park Police Street Ruman Relations Emergency Medial Services Traffic Swimming Pools Administration and Planning Insurance and Contingencies Arts Commission 285,940.31 74,229.77 180,643.52 47,891.02 58,008.48 127,096.48 134,548.12 1,499,834.18 79,705.96 367,445.47 1,608,293.46 526,404.86 47,495.08 383,675.87 79,982.38 38,305.13 104,198.68 182,539.59 69,406.22 290,220.00 72,070.00 183,400.00 49,740.00 54,100.00 138,910.00 136,940.00 1,513,790.00 100,200.00 372,170.00 1,601,590.00 528,870.00 47,090.00 347,710.00 86,730.00 38,100.00 104,050.00 193,380.00 68,090.00 4,279.69 (2,159.77) 2,756.48 1,848.98 (3,908.48) 11 ,813. 52 2,391.88 13,955.82 20,494.04 4,724.53 (6,703.46) 2,465.14 (405.08) (35,965.87) 6,747.62 (205.13) 048.68) 10,840.41 0,316.22) -8'- I I I I I I I I I I I I I I I I I I I CITY OF SALINA Sa lina, Kansas Exhibit B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 Actual (Over) Under Budget GENERAL FUND (CONTD.) Expenditures (Contd.) Department (Contd.) Cemetery General Improvement Museum F1oodworks Neighborhood Centers Capital Improvements Total Expenditures Budget Receipts Over (Under) Expenditures $ 50,478.67 $ 56,670.00 $ 6,191.33 50,733.60 55,700.00 4,966.40 16,408.78 83,000.00 66,591.22 57,273.75 57,690.00 416.25 70,012.15 69,160.00 (852.15) 1,865,501.34 2,705,000.00 839,498.66 8,006,052.87 8,954,370.00 948,317.13 838,595.46 0,478,995.00) (2,317,590.46) Unencumbered Cash Balance, January 1 1,924,802.98 1,478,995.00 (445,807.98) Unencumbered Cash Balance, December 31 $2,763,398.44 $ ($2.763.398.44) EMERGENCY PREPAREDNESS (NOTE 2) Receipts Other apportionments and grants Matching funds from the State of Kansas Reimbursement of expenditures Total Receipts $ 65,041. 00 35,799.51 4,687.04 105,527.55 Expendi tures Personal services Contractual services Ma teria1s and supp1 ies Sundry expenditures Capital outlay Total Expenditures 56,736.64 32,348.94 4,236.22 180.00 12,366.82 105,868.62 Receipts Over (Under) Expenditures (341. 07) Unencumbered Cash Balance, January 1 5,810.89 Unencumbered Cash Balance, December 31 $ 5,469.82 -9- I I I I I I I I I I I I I I I I I I I CITY OF SALINA Salina, Kansas Exhibit B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 (Over) Under Actual Budget Budget STREET MACHINERY (NOTE 2) Receipts Interest from investments $ 553.76 Trans fers from General Fund 42,000.00 Total Receipts 42,553.76 Expenditures Capital outlay 31,933.60 Receipts Over Expenditures 10,620.16 Unencumbered Cash Balance, January 1 75,495.68 Unencumbered Cash Ba lance, December 31 $ 86,115.84 SPECIAL GASOLINE TAX Receipts Special gasoline tax $ 662,132.58 $ 700,000.00 $ 37,867.42 Expenditures Personal services 58,221. 24 62,850.00 4,628.76 Contractual services 415,242.52 435,000.00 19,757.48 Materials and supplies 96,018.44 110,220.00 14,201. 56 Transfers to General Fund 150,000.00 150,000.00 Total Expenditures 719,482.20 758,070.00 38,587.80 Receipts Over (Under) Expenditures (57,349.62) (58,070.00) (720.38) Unencumbered Cash Balance, January 1 212,244.53 69,130.00 (143,114.53) Unencumbered Cash Balance, December 31 $ 154,894.91 $ 11,060.00 ($ 143,834.91) FEDERAL REVENUE SHARING Receipts Grants from Federal government $ 395,106.00 $ 411,000.00 $ 15,894.00 Interest from investments 9,225.37 (9,225.37) Total Receipts 404,331.37 411,000.00 6,668.63 Expenditures Contractual service 26,110.50 32,500.00 6,389.50 Transfers to other funds 265,000.00 265,000.00 Capital outlay 112,632.57 113,500.00 867.43 Total Expenditures 403,743.07 411,000.00 7,256.93 -10- I I I I I I I I I I I I I I I I I I I --'," , ~. :.-'-, CITY OF SALINA Salina, Kansas Exhibit B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 Actual Budget FEDERAL REVENUE SHARING (CONTD. ) Receipts Over Expenditures $ 588.30 $ Unencumbered Cash Balance, January 1 18,273.76 Unencumbered Cash Balance, December 31 $ 18,862.06 $ SPECIAL HIGHWAY IMPROVEMENT FUND (NOTE 2) Receipts $ Expenditures Receipts Over Expenditures Unencumbered Cash Balance, January 1 43,933.27 Unencumbered Cash Ba lance, December 31 $ 43,933.27 (Over) Under Budget ($ 588.30) (18,273.76) ($ 18,862.06) TOURISM AND CONVENTION PROMOTION (NOTE 2) Receipts Transient guest tax $ 133,074.88 Expenditures Professional services 143,271.07 Receipts Over (Under) Expenditures (10,196.19) 94,103.30 Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 $ 83,907.11 -11- I I I I I I I I I I I I I I I I I I I CITY OF SALINA Salina, Kansas Exhibit B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 (Over) Under Actual Budget Budget EMPLOYEE BENEFIT FUND Receipts Current tangible taxes $1,143,325.03 $1,167,339.00 $ 24,013.97 Delinquent taxes 34,328.34 10,000.00 (24,328.34) Interest on investments 16,175.52 15,000.00 0,175.52) Employees contributions to Kansas Firemen's and Policemen's Retire- ment Fund 173,428.04 191,800.00 18,371.96 Social security contributions 18,156.81 270,500.00 252,343.19 Employees retirement contributions 135,609.56 159,200.00 23,590.44 Unemployment insurance contributions 727.94 1,800.00 1,072.06 Reimbursement of expenditures 126,564.22 90,350.00 (36,214.22) Vehicle tax 191,159.42 137,800.00 (53,359.42) Transfers from Genera 1 Fund 40,000.00 40,000.00 Total Receipts 1,879,474.88 2,083,789.00 204,314.12 Expenditures Public officials and employee liability insurance 9,366.50 9,000.00 (366.50) Social security 151,695.08 406,200.00 254,504.92 Police and fire retirement 914,436.56 873,400.00 (41,036.56) Employees retirement 220,829.29 250,000.00 29,170.71 Group insurance 385,441.81 407,900.00 22,458.19 Unemployment insurance 14,415.88 30,000.00 15,584.12 Workman's compensation 83,192.00 91,500.00 8,308.00 Ea rned leave 22,662.04 40,000.00 17,337.96 Total Expenditures 1,802,039.16 2,108,000.00 305,960.84 Receipts over (Under) Expenditures 77 ,435. 72 (24,211.00) (101,646.72) Unencumbered Cash Balance, January 1 65,011.67 24 , 211.00 (40 ,800.67) Unencumbered Cash Balance, December 31 $ 142,44.7.39 $ ($ 142,447.39) UTILITY FUND Receipts Current tangible taxes $ 344,740.84 $ 352,192.00 $ 7,451.16 Delinquent taxes 12,186.30 4,000.00 (8,186.30) Interest on investments 2,641.31 2,000.00 (641.31) Vehicle taxes 70,861.13 51,140.00 09,721.13) Total Receipts 430,429.58 409,332.00 (21,097.58) -12- I I CITY OF SALINA Salina, Kansas Exhibit B (Contd.) I STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 I (Over) Under Actual Budget Budget I UTILITY FUND (CONTO. ) Expenditures Gas service $ 48,391.89 $ 46,000.00 ($ 2,391.89) I Light and power service 98,652.29 96,000.00 (2,652.29) Wa ter service 33,575.08 34,000.00 424.92 Traffic control signals 34,791. 91 30,000.00 (4,791. 91) Street lighting 262,464.70 290,000.00 27,535.30 I Total Expenditures 477 ,875 .87 496,000.00 18,124.13 Receipts Over (Under) Expenditures (47,446.29) (86,668.00) (39,221. 71) I Unencumbered Cash Balance, January 1 138,620.64 86,668.00 (51,952.64) Unencumbered Cash Balance, December 31 $ 91.174.35 $ ($ 91,174.35) I SPECIAL PARKS AND RECREATION I Receipts ci ty 1 iquor tax $ 49,613.19 $ 50,000.00 $ 386.81 I Expendi tures Trans fer to General Fund 50,000.00 50,770.00 770.00 Receipts Over (Under) Expenditures (386.81) (770.00) (383.19) I Unencumbered Cash Balance, January 1 455.99 770.00 314.01 I Unencumbered Cash Balance, December 31 $ 69.18 $ ($ 69.18) I SPECIAL ALCOHOL PROGRAMS Receipts Ci ty 1 iquor tax $ 49,613.19 $ 50,000.00 $ 386.81 I Expenditures Contractual services 49,667.46 55,080.00 5,412.54 I Receipts Over (Under) Expenditures (54.27) (5,080.00) (5,025.73) Unencumbered Cash Balance, January 1 54.27 5,080.00 5,025.73 I Unencumbered Cash Balance, December 31 $ $ $ I I -13- I I I I I I I I I I I I I I I I I I I CITY OF SALINA Salina, Kansas Exhibit STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 B (Contd.) (Over) Under Actual Budget Budget SPECIAL LIABILITY FUND Receipts Current tangible taxes $ 40,799.72 $ 41,144.00 $ 344.28 Delinquent tangible taxes 1,815.27 500.00 0,315.27) Trans fers from other funds 6,900.00 7,700.00 800.00 Vehicle taxes 10,307.21 7,420.00 (2,887.21) Total Receipts 59,822.20 56,764.00 (3,058.20) Expendi tures Liability insurance 27,703.00 35,000.00 7,297.00 Professional services 4,039.34 20,000.00 15,960.66 Total Expenditures 31,742.34 55,000.00 23,257.66 Receipts Over Expenditures 28,079.86 1,764.00 (26,315.86) Unencumbered Cash Balance, January 1 146,829.50 113,236.00 (33,593.50) Unencumbered Cash Ba lance, December 31 $ 174.909.36 $ 115.000.00 ($ 59.909.36) FAIR HOUSING ASSISTANCE PROGRAM (NOTE 2) Receipts Grants from Federal government Reimbursement of expenditures Total Receipts $ 17,962.69 10,506.40 28,469.09 Expenditures Personal services Contractual services Materials and supplies ~Tota1 Expenditures 13,263.78 4,819.77 81.14 18,164.69 Receipts Over Expenditures 10,304.40 Unencumbered Cash Balance (Deficit), January 1 0,285.09) Unencumbered Cash Balance, December 31 $ 3,019.31 -14- I I I I I I I I I I I I I I I I I I I CITY OF SALINA Salina, Kansas Exhibit B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 HERITAGE CONSERVATION (NOTE 2) Receipts Grants from federal government Expenditures Personal services Contractual services Materials and supplies Total Expenditures Receipts Over Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 $ BUSINESS IMPROVEMENT DISTRICT Receipts Assessment fees Transfers from General Fund Total Receipts Expenditures Personal services Contractual services Materials and supplies Sundry expenditures Capital outlay Total Expenditures Receipts over Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 $ BOND AND INTEREST Receipts Current tangible taxes Delinquent tangible taxes Current special assessment taxes Delinquent special assessment taxes Interest from investments Actual $ 9,469.75 3,443.20 224.18 141. 32 3,808.70 5,661. 05 3,041.12 8,702.17 $ 42,411. 43 $ 7,000.00 49,411.43 20,609.84 26,715.10 367.14 250.00 778.95 48,721.03 690.40 690.40 $ $ 857,789.17 $ 34,188.65 681,741. 94 45,275.18 20,032.96 Budget 50,000.00 $ 50,000.00 22,000.00 24,700.00 2,200.00 300.00 800.00 50,000.00 875,782.00 $ 15,000.00 670,000.00 20,000.00 20,000.00 (Over) Under Budget 7,588.57 (7,000.00) 588.57 1,390.16 (2,015.10) 1,832.86 50.00 21. 05 1,278.97 (690.40) ($ 690.40) 17,992.83 (19,188.65) (11,741.94) (25,275.18) (32.96) -15- I I I I I I I I I I I I I I I I I I I . ,.' ~; .\-'" CITY OF SALINA Salina, Kansas Exhibit B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 BOND AND INTEREST (CONTD.) Receipts (Contd.) Accrued interest on bonds sold Special assessments Transfers from other funds Vehicle taxes Total Receipts Expenditures General bond principal General bond interest Curb, gutter and paving principal (Ci ty share) Curb, gutter and paving principal (Property owner share) Curb, gutter and paving interest (City share) Curb, gutter and paving interest (Property owner share) Fiscal agency commission and postage Estimated interest - Bonds to be issued Total Expenditures Receipts Over (Under) Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 CONSTRUCTION FUND (NOTE 2) Receipts Issuance of general obligation bonds $ Issuance of internal improvement bonds Transfers from other f~nds Reimbursement of expenditures Other Total Receipts Expendi tures Payment of temporary note and interest Construction and capital outlay Total Expenditures Receipts Over (Under) Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 $ Actual $ 2,667.29 3,891. 37 233,700.00 191,979.92 2,071,266.48 740,000.00 309,584.52 114,896.12 634,103.88 33,573.25 244,611.28 400.00 63.75 2,077 ,232.80 $ (5,966.32) 462,361.90 456,395.58 425,000.00 768,000.00 10,000.00 58,017.58 81,206.59 1,342,224.17 533,566.04 1,468,836.79 2,002,402.83 (660,178.66) 700,984.11 40,805.45 Budget $ 2,000.00 ($ 4,000.00 221,700.00 138,120.00 1,966,602.00 740,000.00 309,600.00 114,900.00 634,100.00 33,600.00 244,600.00 700.00 40,000.00 2,117 ,500.00 (150,898.00) 150,898.00 $ ($ (Over) Under Budget 667.29) 108.63 (12,000.00) (53,859.92) (104 ,664.48) 15.48 3.88 (3.88) 26.75 (11. 28) 300.00 39,936.25 40,267.20 (144,931. 68) (311 ,463.90) 456,395.58) -16- I I I I I I I I I I I I I I I I I I I 'f. CITY OF SALINA Salina, Kansas Exhibit B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 GOLF COURSE Receipts Membership and green fees Ca rt renta 1 Ca rt storage Ca rt us er fees Oil well lease Sales Total Receipts Expenditures Personal services Contractual services Materials and supplies Sundry expenditures Capital outlay Total Expenditures Receipts Over (Under) Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 $ SANITATION Receipts Interest from investments Miscellaneous sales and services Service fees Reimbursement of expenditures Total Receipts Expenditures Personal services Contractual services Materials and supplies Transfer to Bond and Interest Fund Capital outlay Total Expenditures Receipts Over (Under) Expenditures Unencumbered Cash Balance, January 1 Actual $ 137,440.35 $ 42,424.47 3,616.25 3,355.00 4,802.83 25,014.78 216,653.68 94,644.94 41,222.59 39,880.24 30,160.74 14,085.00 219,993.51 <3,339.83) 20,251. 64 16.911.81 $ $ 1,107.52 $ 1,470.00 680,275.00 610.65 683,463..17 258,013.36 125,569.61 97,704.39 132,800.00 53,646.00 667,733.36 15,729.81 305,187.68 Budget 145,200.00 $ 37,200.00 6,300.00 10,800.00 5,000.00 39,300.00 243,800.00 91,710.00 38,650.00 45,100.00 60,800.00 16,950.00 253,210.00 (9,410.00) 10,591.00 1,181.00 ($ 2,000.00 $ 3,000.00 660,960.00 1,000.00 666,960.00 276,100.00 143,220.00 87,450.00 132,800.00 75,000.00 714,570.00 (47,610.00) 211 ,312.00 (Over) Under Budget 7,759.65 (5,224.47) 2,683.75 7,445.00 197.17 14,285.22 27,146.32 (2,934.94) (2,572.59) 5,219.76 30,639.26 2,865.00 33,216.49 (6,070.17) (9,660.64) 15.730.81) 892.48 1,530.00 09,315.00) 389.35 06,503.17) 18,086.64 17,650.39 00,254.39) 21,354.00 46,836.64 (63,339.81) (93,875.68) Unencumbered Cash Balance, December 31 $ 320.917.49 $ 163.702.00 ($ 157.215.49) -17- I I I I I I I I I I I I I I I I I I I CITY OF SALINA Salina, Kansas Exhibit.B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 Actual PARKING METERS Receipts Parking meter receipts Parking meter permits Total Receipts $ 972.95 $ 41,100.00 42,072.95 Expenditures Personal services Contractual services Materials and supplies Total Expenditures 32,092.08 6,263.02 5,568.01 43,923.11 0,850.16) Receipts Over (Under) Expenditures Unencumbered Cash Balance, January 1 2,516.96 Unencumbered Cash Balance, December 31 $ 666.80 $ BICENTENNIAL CENTER Receipts Rent Concessions Reimbursement of expenditures Transfers from Federal Revenue Sharing Fund Total Receipts $ 127,131.18 214,369.94 3,166.89 265,000.00 609,668.01 Expenditures Personal services Contractual services Materials and supplies Sundry expenditures Capital outlay Total Expenditures 276,292.57 239,033.70 42,358.55 77,081.76 13,147.07 647,913.65 Receipts Over (Under) Expenditures (38,245.64) Unencumbered Cash Balance, January 1 127,542.63 Budget 1,200.00 $ 54,300.00 55,500.00 32,040.00 16,200.00 8,480.00 56,720.00 0,220.00) 1,479.00 259.00 ($ $ 150,000.00 $ 230,000.00 265,000.00 645,000.00 288,460.00 263,390.00 43,360.00 110,950.00 30,170.00 736,330.00 (91,330.00) 131,659.00 Unencumbered Cash Balance, December 31 $ 89,296.99 $ 40,329.00 ($ (Over) Under Budget 227.05 13,200.00 13,427.05 (52.08) 9,936.98 2,911.99 12,796.89 630.16 0,037.96) 407.80) 22,868.82 15,630.06 0,166.89) 35,331.99 12,167.43 24,356.30 1,001.45 33,868.24 17,022.93 88,416.35 (53,084.36) 4,116.37 48,967.99) -18- I I I I I I I I I I I I I I I I I I I CITY OF SALINA Salina, Kansas Exhibit B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 (Over) Under Actual Budget Budget SOLID WASTE DISPOSAL Receipts Income from leased land $ 39.24 $ 14,000.00 $ 13,960.76 Service fees 301,055.81 235,000.00 (66,055.81) Reimbursement of expenditures 1,288.09 0,288.09) Total Receipts 302,383.14 249,000.00 (53,383.14) Expenditures Personal services 65,770.40 69,950.00 4,179.60 Contractual services 25,030.36 27,700.00 2,669.64 Materials and supplies 51,103.72 55,510.00 4,406.28 Transfers to other funds 98,900.00 98,900.00 Total Expenditures 240,804.48 252,060.00 11 ,255.52 Receipts Over (Under) Expenditures 61,578.66 (3,060.00) (64,638.66) Unencumbered Cash Ba lance, January 1 43,988.76 20,942.00 (23,046.76) Unencumbered Cash Balance, December 31 $ 105,567.42 $ 17,882.00 ($ 87,685.42) WATER AND SEWERAGE FUND Receipts Wa ter Sewerage Sanitation fees Tapping and front footage service Service charge - Sanitation department Meter repair and service line revenue Miscellaneous income Sales tax collections Meter deposits Reserve for Extension and Bond Re- tirement Reserve for Depreciation and Emergency Issuance of Combined Water and Sewage System Refunding Revenue Bonds, Series of 1984 (Note 3) Total Receipts $2,812,416.18 $2,754,000.00 ($ 58,416.18) 675,895.27 714,000.00 38,104.73 673,600.45 660,000.00 03,600.45) 21,065.36 15,000.00 (6,065.36) 6,733.28 12,000.00 5,266.72 27,440.94 (27,440.94) 57,919.90 12,000.00 (45,919.90) 44,893.88 40,000.00 (4,893.88) 34,950.00 38,000.00 3,050.00 400,000.00 400,000.00 400,000.00 400,000.00 2,770 ,000.00 (2,770,000.00) 7,124,915.26 5,045,000.00. (2,079,915.26) 84,773.78 89,100.00 4,326.22 725,203.09 692,350.00 (32,853.09) 219,377.60 178,600.00 (40,777.60) 340,838.01 233,850.00 006,988.01) -19- Expenditures (Note 5) Water supply Softening and treatment Pumping Distribution I I I I I II I I I I I I I I I I I I I , .:.~. CITY OF SALINA Salina, Kansas Exhibit B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 (Over) Under Actual Budget Budget WATER AND SEWERAGE FUND (CONTD.) Expenditures (Contd.) Customer accounting and collection $ 297,587.14 $ 310,200.00 $ 12,612.86 Administrative and general 575,806.98 584,000.00 8,193.02 Sewage treatment and collection 586,974.47 594,140.00 7,165.53 Bond ordinance requirements 520,483.31 406,820.00 013,663.31) Transfer to Sanitation Department Service fees 680,000.00 660,000.00 (20,000.00) Capital expenditures 302,694.82 400,000.00 97,305.18 Sa 1es tax remi t ted 44,893.88 36,000.00 (8,893.88) Meter deposits refunded 50,530.00 33,000.00 07,530.00) Transfer to Reserve for Extension and Bond Retirement 400,000.00 400,000.00 Reserve for Depreciation and Emergency 400,000.00 400,000.00 Transfer to Refunding Escrow Trust Account (Note 3) 2,601,900.00 (2,601,900.00) Bond issuance cost (Note 3) 168,100.00 068,100.00) Total Expenditures (Note 5) 7,199,163.08 5,018,060.00 (2,181,103.08) Receipts Over (Under) Expenditures (74,247.82) 26,940.00 101,187.82 Unencumbered Cash Balance, January 1 637,535.63 716,023.00 78,487.37 Unencumbered Cash Ba lance, December 31 $ 563,287.81 $ 742,963.00 $ 179,675.19 BICENTENNIAL CENTER EVENTS FUND (NOTE 4) Receipts $ 606,406.82 Expendi tures Transfer of net rental fees to Bicentennial Center Fund 55,009.39 Special events expenditures 550,763.60 Total Expenditures 605,772.99 Receipts Over Expenditures 633.83 Unencumbered Cash Ba lance, January 1 7,727.p6 Unencumbered Cash Ba lance, December 31 $ 8,360.89 -20- I I I I I I il I I I I I I I I I I I I - '.,.., , ..,. .'., , I ~: :. CITY OF SALINA Salina, Kansas B (Contd.) Exhibit STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 (Over) Under Actual Budget Budget DATA PROCESSING Receipts Sale of commodities $ 1,234.12 $ 1,000.00 ($ 234.12) Fees 208,766.00 189,900.00 (18,866.00) Computer programming service 9,691.25 14,000.00 4,308.75 Total Receipts 219,691.37 204,900.00 04,791.37) Expenditures Personal services 49,399.60 50,240.00 840.40 Contractual services 137,701.81 149,660.00 11,958.19 Materials and supplies 3,755.40 5,000.00 1,244.60 Total Expenditures 190,856.81 204,900.00 14,043.19 Receipts Over Expenditures 28,834.56 (28,834.56) Unencumbered Cash Balance, January 1 86.90 (86.90) Unencumbered Cash Balance, December 31 $ 28.921.46 $ ($ 28.921.46) BOND FUND FOR COMBINED WATER AND SEWAGE SYSTEM REFUNDING REVENUE BONDS, SERIES OF 1978 (NOTE 2) Receipts Interest from investments Transfers from Water and Sewerage Fund Total Receipts Expenditures Bond principal Bond interest Transfer to Refunding Escrow Trust Account (Note 3) Transfer to Principal and Interest Account for Combined Water and Sewage System Refunding Revenue Bonds, Series of 1984 Total Expenditures Receipts Over (Under) Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 $ 46,080.97 168,133.31 214,214.28 1,000.00 138,835.62 1,172,553.15 179,047.68 1,491,436.45 0,277,222.17) 1,277 ,222.17 $ -21- I I I II I I I I I II I I I I I I I I I " '.". CITY OF SALINA Sa lina, Kansas Exhibit B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 Ac tua 1 (Over) Under Budget RESERVE 4CCOUNT FOR COMBINED WATER AND SEWAGE SYSTEM REFUNDING REVENUE BONDS, SERIES OF 1978 (NOTE 2) Receipts Interest from investments Expenditures Transfer to Refunding Escrow Trust Account (Note 3) Transfer to reserve account from Combined Water and Sewage System Refunding Revenue Bonds, Series of 1984 Total Expenditures Receipts Over (Under) Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 $ PRINCIPAL AND INTEREST ACCOUNT FOR COMBINED WATER AND SEWAGE SYSTEM REFUNDING REVENUE BONDS, SERIES OF 1984 (NOTE 2) Receipts Interest from investments Transfers from Water and Sewerage Fund Transfer from Bond Fund for Combined Water and Sewage System Refunding Revenue Bonds, Series of 1978 Total Receipts Expenditures Receipts Over Expenditures Unencumbered Cash Balance, January 1 Budget $ 47,068.65 288,328.50 450,734.07 739,062.57 (691,993.92) 691,993.92 . $ 9,470.30 352,350.00 179,047.68 540,867.98 540,867.98 Unencumbered Cash Balance, December 31 $ 540,867.98 -22- I I I I I I I I I I I I I I I I I I I CITY OF SALINA Sa lina, Kansas Exhibit B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 Actual (Over) Under Budget Budget RESERVE ACCOUNT FOR COMBINED WATER AND SEWAGE SYSTEM REFUNDING REVENUE BONDS, SERIES OF 1984 (NOTE 2) Receipts Interest from investments Transfer from Reserve Account for Combined Water and Sewage System Refunding Revenue Bonds, Series of 1978 Transfer from Refunding Escrow Trust Account (Note 3) Total Receipts $ 12,232.50 450,734.07 62,777.73 525,744.30 Expenditures Receipts Over Expenditures 525,744.30 Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 $ 525,744.30 RESERVE ACCOUNT FOR COMBINED WATER AND SEWAGE SYSTEM DEPRECIATION AND EMERGENCY REPLACEMENT (NOTE 2) Receipts Interest from investments $ 53,033.51 Expenditures Receipts Over Expenditures 53,033.51 Unencumbered Cash Balance, January 1 577 , 773.87 Unencumbered Cash Balance, December 31 $ 630,807.38 RESERVE ACCOUNT FOR COMBINED WATER AND SEWAGE SYSTEM EXTENSION AND BOND RETIREMENT (NOTE 2) Receipts Interest from investments $ 54,418.47 Expenditures Receipts Over Expenditures 54,418.47 Unencumbered Cash Balance, January 1 582,678.03 Unencumbered Cash Balance, December 31 $ 637,096.50 -23- : ~ . I I I I I I I I I I I I I I I I I I I CITY OF SALINA Salina, Kansas Exhibit STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 CENTRAL GARAGE (NOTE 2) Receipts Reimbursement of expenditures Expenditures Personal services Contractual services Materials and supplies Sundry expenditures Capital outlay Total Expenditures Receipts Over (Under) Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance (Deficit), December 31 CITIZENSHIP TRUST (NOTE 2) Receipts Interest from investments $ 998.65 Expenditures Receipts Over (Under) Expenditures 998.65 Unencumbered Cash Balance, January 1 11,691.81 Un~ncumbered Cash Balance, December 31 $ 12,690.46 HUD COMMUNITY DEVELOPMENT (NOTE 2) Receipts Grants from federal government $ Interest from investments Collection of housing and winteri- zation loans - Principal and interest Reimbursement of expenditures Miscellaneous Total Receipts 130,021.32 791.61 16,381. 65 2,176.61 856.00 150,227.19 Expenditures Personal services Contractual services Materials and supplies Capital outlay Total Expenditures 34,196.24 143,818.90 1,075.06 8,315.00 187,405.20 I I B (Contd.) -24- I I I I I I I I I I I I I I I I I I I CITY OF SALINA Salina, Kansas Exhibit B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 Actual (Over) Under Budget Budget Receipts Over (Under) Expenditures ($ 37,178.01) Unencumbered Cash Balance, January 1 66,718.70 29,540.69 Unencumbered Cash Balance, December 31 $ CEMETERY ENDOWMENT (NOTE 2) Receipts Interest from investments $ Perpetual care deposits Total Receipts 3,052.00 2,738.34 5,790.34 Expenditures Receipts Over Expenditures 5,790.34 Unencumbered Cash Balance, January 1 70,750.00 Unencumbered Cash Ba lance, December 31 $ MAUSOLEUM TRUST (NOTE 2) Receipts $ Expenditures Receipts Over Expend i tures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 $ 76,540.34 490.00 490.00 MAUSOLEUM ENDOWMENT (NOTE 2) Receipts $ Expenditures Receipts Over Expenditures Unencumbered Cash Balance, January 1 17,575.17 Unencumbered Cash Balance, December 31 $ 17,575.17 The accompanying notes are an integral part of this financial statement. -25- 1 1 CITY OF SALINA Salina, Kansas 1 NOTES TO FINANCIAL STATEMENTS December 31, 1984 I' 1- 1. Summary of Significant Accounting Policies The City maintains its accounting records in accordance with the principles of fund accounting in order to ensure observance of limitations and restric- tions placed on the use of resources available. This is the procedure by which resources are classified for accounting and reporting into funds estab- lished according to their nature and purposes. 1 1 The City of Salina maintains its accounting records for all funds on the cash basis, except that expenditures incurred but not paid and purchase commitments at December 31 are recorded as encumbrances at that date. This method serves to develop information relative to compliance with the budget, cash basis, and other statutes applicable to municipalities within the State of Kansas. The method is not, however, in accordance with generally accepted accounting principles for municipalities. Generally accepted accounting principles require: a. Certain accounts receivable to be recorded in the financial statements. The City does not record these receivables until they are collected in cash. b. Expenditures to be recorded generally on the accrual basis. The City records purchase commitments as encumbrances at year-end, and any loss from loss contingencies is not recorded until the amount of the loss is payable. c. The General Fixed Assets and the General Long-Term Debt Account Groups to be maintained. The City does not maintain these account groups. d. Transfers between funds to be recorded as reductions to fund balance of the fund making the transfers and as additions to fund balance of the fund receiving the transfer. The City records such transfers as expenditures of the fund making the transfer and as receipts of the fund receiving the transfer. e. The annual financial statements to include a combined balance sheet for all fund types and account groups; a combined statement of revenues, expenditures, and changes in fund balance for all governmental fund types and expendable trust funds; and a combined statement of revenues, expendi- tures, and changes in fund balance and combined comparison with budget for all governmental fund types. These required financial statements are not included in this report. 1 1 1 1 1 1 1 1 1 1 The City has, by charter ordinance, elected to exempt itself from the Kansas statutory requirement to maintain fixed asset records, and has requested the Director of Accounts and Reports to waive the requirements of K.S.A. 75-1l20a as related to the preparation of financial statements in conformity with gener- ally accepted accounting principles. 1 -26- 1 I I 2. Budge ts I Applicable Kansas statutes require that unless exempted by a specific statute. contain several funds for which budgets omitting certain budget comparisons are budgets be legally adopted for all funds The accompanying financial statements were not prepared. The reasons for described below. I I Special Revenue Funds - Certain of the special revenue funds are not budgeted since their revenues are designated for a special purpose or the fund represents a clearing account. Capital Projects Fund - The capital projects fund is not budgeted since provision for payment of expenditure is from the issuance of bonds, temporary notes, and special assessments and charges. Water and Sewerage Bond Fund and Reserve Accounts~- These funds are not budgeted since receipts and expenditures are in accordance with requirements of applicable bond issues. Central Garage - The fund is an intragovernmental fund whose expenditures are reimbursable by other funds. Trust and Agency Funds - The individual trust and agency funds are not subject to the budget law since the assets do not belong to the City of Salina. I 3. Long-Term Obligations I I I I The City issued $2,770,000 Combined Water and Sewage System Refunding Revenue Bonds, Series of 1984, (the 1984 Bonds), dated June 15,1984, for the purpose of refunding its Combined Water and Sewage System Refunding Revenue Bonds, Series of 1978 (the 1978 Bonds), in the outstanding amount of $4,388,000 as of June 15, 1984. Cash and investments were transferred to a Refunding Escrow Trust Account at Planters Bank and Trust Company, Salina, Kansas, pursuant to an escrow trust agreement dated as of June 15, 1984, to provide the necessary funds for the refunding of the 1978 Bonds, as follows: I I Funds transferred to (from) Refunding Escrow Trust Account I Bond Fund for Combined Water and Sewage System Refunding Revenue Bonds, Series of 1978 Reserve Account for Combined Water and Sewage System Refunding Revenue Bonds, Series of 1978 Reserve Account for Combined Water and Sewage System Refunding Revenue Bonds, Series of 1984 Water and Sewerage Fund Net proceeds of the 1984 Bonds $1,172,553.15 I 288,328.50 (62,777.73) I 2,601,900.00 Total $4,000,003.92 I Funds transferred to the Refunding Escrow Trust Account were invested in United States Government obligations, and the investments and interest earned on such investments will be sufficient to pay all principal and interest on the 1978 Bonds as they become due. I I -27- I I I I I I I I I I I I I I I I I I I I '" ; :. ,'" The City has outstanding an issue of Combined Water and Sewer System Revenue Bonds, Series of 1961, of which the principal amount of $430,000 remains out- standing at December 31, 1984, and an issue of Combined Water and Sewer System Revenue Bonds, Series of 1977, of which the principal amount of $2,970,000 remains outstanding at December 31, 1984. The City has provided for the payment of all principal and interest on the bonds by depositing United States government obligations to an escrow account at Planters Bank and Trust Company, Salina, Kansas, pursuant to an escrow trust agreement dated May I, 1978. Neither the assets deposited with the escrow agent for retirement of the 1961, 1977, and 1978 bonds nor the outstanding 1961, 1977, and 1978 obligations, are reflected in the accompanying financial statements. The City has established certain reserve accounts pursuant to the 1984 bond ordinance to provide funds for the retirement of the bonds and payment of interest thereon and for making replacements to the system in the event other funds are not available. The gross revenues of the Water and Sewerage Depart- ment are pledged to secure payment of the bonds; however, the pledge is sub- ordinate to a similar pledge to secure payment of the 1961, 1977, and 1978 bonds. The amounts required to be maintained in the reserve accounts established by the bond ordinance authorizing issuance of the Water and Sewage System Refunding Revenue Bonds, Series of 1984, have been provided and the net operating income of the wa ter and sewerage sys tem appears sufficient to meet the requirements of the ordinance. 4. Bicentennial Center Events Fund The Bicentennial Center Events Fund is used as a clearing account for special events when the City acts as the promotor's agent. Receipts from special events are deposited in the fund and related expenses are disbursed from the fund. The City's rental fees from such events are transferred from the fund to the Bicentennial Center Fund. 5. Water and Sewerage Fund Expenditures of the Water and Sewerage Fund for the transfer to the Refunding Escrow Trust Account and payment of bond issuance costs in the total amount of $2,770,000 were funded by the issuance of the Combined Water and Sewage System Refunding Revenue Bonds, Series of 1984. Accordingly, expenditures of the Water and Sewerage Department are not in violation of the Kansas budget law (K.S.A. 79-2935) for the year 1984. 6. Capital Projects Fund The Capital Projects Fund is used to account for the purchase or construction of capital facilities, equipment, and public improvements. A summary of the fund's unencumbered cash balance at December 31, 1984 follows: Cash balance (deficit) resulting from Capital projects completed Capital projects in process Special assessments projects Reserves for future capital projects $635,220.42 22,814.76 (797,935.18) 180,705.45 Total $ 40,805.45 -28- I I The deficit resulting from special assessments projects will be funded by the issuance of a temporary note in 1985. 7. Compliance with Kansas Statutes I A summary of statutory violations related to 1984 follows. a. The market value of securities pledged by First National Bank and Trust Company to secure the City's cash deposits in the bank were insufficient in amount to meet the statutory requirement of K.S.A. 9-1402 on December 31, 1984. The face value of the securities pledged by the bank, however, was $1,528,000" which exceeded the security required. I I I b. Securities pledged by Planters Bank and Trust Company to secure the City's cash deposits in the bank appeared to be insufficient in amount to meet the statutory requirement of K.S.A. 9-1402 on March 21 and April 4, 1984. I c. Encumbrances of the Central Garage exceed the cash balance of the fund by $11,566.75 as of December 31, 1984, which appears to be in violation of the Kansas cash basis law (K.S.A. 10-1113). I 8. Fund Trans fers I Following is a schedule of transfers between funds for the year 1984. From I Special Parks and Recreation Special Gasoline Tax General Fund - Street Federal Revenue Sharing Fund General Fund - Contingencies General Fund - Contingencies General Fund - Contingencies General Fund - Contingencies Sa ni ta t ion Solid Waste Disposal Water and Sewerage - Administrative and general Water and Sewerage- Bond ordinance requirements I I I I I Water and Sewerage Solid Waste Disposal - Contractual Services Golf Course - Contractual Services Sanitation - Contractual Services Water and Sewerage - Admini- strative and general Solid Waste Disposal I I I I To Genera 1 Fund $ Genera 1 Fund Street Machinery BiCentennial Center Data Processing - Fees Business Improvement District Employee Benefit Fund Central Garage Bond and Interest Bond and Interest Bond and Interest Bond Fund for Combined Wa ter and Sewer Sys tem Refunding Revenue Bonds, Series of 1978 Sanitation - Service Fees Specia 1 Liability Fund Specia 1 Liability Fund Special Liabil i ty Fund Specia 1 Liability Fund Construction Fund Amount 50,000.00 150,000.00 42,000.00 265,000.00 85,000.00 7,000.00 40,000.00 7,440.00 132,800.00 88,900.00 12,000.00 168,133.31 680,000.00 400.00 600.00 800.00 5,100.00 10,000.00 -29- I I From Bicentennial Center Events Fund I Bond Fund for Combined Water and Sewage System Refunding Revenue Bonds, Series of 1978 I I Reserve Account for Combined Wa ter and Sewage Sys tem Refunding Revenue Bonds, Series of 1978 I I Water and Sewerage - Bond Ordinance requirements I I 9. Subsequent Event To Amount Bicentennial Center - Rent $ 55,009.39 Principal and Interest Account for Combined Wa ter and Sewage Sys tem Refunding Revenue Bonds, Series of 1984 179,047.68 Reserve Account for Com- bined Water and Sewage System Refunding Revenue Bonds, Series of 1984 450,734.07 Principal and Interest Account for Combined Wa ter and Sewage Sys tem Refunding Revenue Bonds, Series of 1984 352,350.00 I The City issued $8,115,000.00 General Obligation Refunding Bonds, Series 1985, for the purpose of providing funds, together with other funds, to refund $9,430,000.00 principal amount of outstanding bonds of the City in October, 1985. I I I I I I I I I -30- I II , I I I I I I I I I I I I I I I I I I SUPPLEMENTAL INFORMATION Purpose General Obligation Bonds Flood control Library City-County building Municipal golf course Municipal golf course Park improvements Bicentennial Center Park improvements Park improvements Br idge improvements Solid waste Fire equipment Fire equipment Revenue Bonds Water and sewerage Water and sewerage Temporary Note Tota Is CITY OF SALINA Salina, Kansas SCHEDULE OF INDEBTEDNESS December 31, 1984 Da te of Issue 1l-01-63 1l-01-65 1l-01-66 12-01-67 10-01-68 4-01-74 4-01-77 12-15-77 6-01-79 6-01-80 3-01-81 3-01-81 4-01-84 5-01-78 6-15-84 Final Ma turity Date 11-01-84 1l-01-86 1l-01-87 12-01-86 10-01-86 10-01-84 10-01-97 3-01-88 12-01-89 12-01-90 9-01-87 9-01-91 4-01-94 2-15-07 2-15-94 Rate 2.875%, 3.0%, 3.125%, and 3.5% 3.25%, 3.3%, and 3.375% 3.75%, 3.8%, and 5.0% 3.75%, 4.0%, and 4.25% 3.75%, 4.0%, and 4.25% 4.1% and 4.2% 4.6%, 4.7%, 5.0%, 5.2%, and 5.25% 4.375%, 4.4%, 4.5%, and 4.75% 5.375%, 5.4%, 5.75%, and 6.0% 5.7%, 5.75%, 5.8%, 5.9%, and 6.75% 7.25%, 7.3%, 7.4%, 7.875%, and 8.0% 7.5%, 7.6%, 7.7%, 7.8%, and 8.0% 7.8%, 7.9%, 8.15%, 8.4%, and 8.6% 6.25% 7.25%, 7.75%, 8.25%, 8.5%, 8.75%, 9.0%, 9.2%, 9.4%, 9.6%, and 9.75% 12-13-82 12-20-84 7.0% SCHEDULE OF MATURITIES December 31, 1984 Payable in Year General Obligation Bonds Revenue Bonds Ended December 31, Principal Interest Principal Interest 1985 $ 662,000.00 $ 322,617 .49 $ 490,000.00 $ 260,359.17 1986 672,000.00 270,409.38 310,000.00 190,852.50 1987 630,000.00 235,027.50 210,000.00 170,177.50 1988 470,000.00 204,785.00 230,000.00 151,740.00 1989 450,000.00 180,892.50 250,000.00 131,027.50 Thereafter 2,930,000.00 665,970.00 1,280,000.00 297,565.00 Tota Is $5,814,000.00 $1 ,879,701.87 $2,770,000.00 $1,201,721. 67 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I Amount of Original Issue $ 260,000.00 675,000.00 1,100,000.00 75,000.00 75,000.00 100,000.00 6,500,000.00 250,000.00 250,000.00 250,000.00 900,000.00 280,000.00 425,000.00 11,140,000.00 4,394,000.00 2,770,000.00 7,164,000.00 468,280.00 $18,772,280.00 Schedule 1 Outstanding Year Ended December 31, 1984 Outstanding Debt Debt Debt Debt January 1 , 1984 Issued Retired December 31, 1984 $ 13,000.00 $ $ 13,000.00 $ 90,000.00 30,000.00 60,000.00 220,000.00 55,000.00 165,000.00 18,000.00 6,000.00 12,000.00 18,000.00 6,000.00 12,000.00 10,000.00 10,000.00 4,550,000.00 325,000.00 4,225,000.00 125,000.00 25,000.00 100,000.00 150,000.00 25,000.00 125,000.00 175,000.00 25,000.00 150,000.00 520,000.00 190,000.00 330,000.00 240,000.00 30,000.00 210,000.00 425,000.00 425,000.00 6,129,000.00 425,000.00 740,000.00 5,814,000.00 4,389,000.00 4,389,000.00 2,770,000.00 2,770,000.00 4,389,000.00 2,770,000.00 4,389,000.00 2 ,770,000.00 468,280.00 468,280.00 $10,986,280.00 $3,195,000.00 $5,597,280.00 $ 8,584,000.00 -31- CITY OF SALINA Salina, Kansas SCHEDULE OF INDEBTEDNESS December 31, 1984 Da te of Purpose Issue Rate Special Assessment Bonds 11-01-63 3 1/8% Special Assessment Bo nds 11-01-65 3 1/4% Specia 1 As s es sment Bonds 11-01-67 3.7% to 4.25% Special As sessment Bonds 11-01-68 3.9% to 4.5% Specia 1 As sessment Bo nds 4-01-70 5 1/2% to 6% Special As sessment Bonds 1-01-74 4.10% to 4.75% Special Assessment Bonds 9-01-75 4 1/4% Specia 1 Assessment Bonds 12-01-77 4.4% to 4.7% Specia 1 Assessment Bonds 6-01-78 4.7% to 5% Specia 1 As sessment Bonds 6-01-79 6.0% to 5.4% Specia 1 As sessment Bonds 6-01-80 5.80%, 5;90%, 6.75%, 5.70%, 5.75% Special As sessment Bonds 3-01-81 7.5% to 8.0% Specia 1 Assessment Bonds 5-01-83 6.5% to 7.5% Special Assessment Bonds 12-01-84 8.25%, 8.0%, 9.0%, 9.15% Totals SCHEDULE OF MATURITIES December 31, 1984 Payable in Year Ended December 31, Specia 1 Assessment Bond Principal Property Owner's Total City Share Sha re $ 677,000.00 $ 99,843.72 $ 577,156.28 680,000.00 127,777 .43 552,222.57 702,000.00 146,477 .90 555,522.10 606,000.00 117,624.80 488,375.20 526,000.00 114,622.55 411,377.45 1,139,000.00 435,949.31 703,050.69 $4,330,000.00 $1,042,295.71 $3,287,704.29 1985 1986 1987 1988 1989 Thereafter Totals I I I I I I I I I I I I I I I I I I I II I I I I I I I I I I I I I I I I I I Schedule 1 (Contd.) Amount of Outstanding Year Ended December 31, 1984 Ou ts tand ing Original Debt Debt Debt Debt Issue January 1, 1984 Is sued Retired December 31, 1984 $ 986,218.15 $ 47,000.00 $ $ 47,000.00 $ 265,000.00 30,000.00 10,000.00 20,000.00 155,000.00 25,000.00 5,000.00 20,000.00 58,267.56 16,000.00 3,000.00 13,000.00 79,481. 71 28,000.00 4,000.00 24,000.00 250,736.00 25,000.00 25,000.00 428,000.00 90,000.00 45,000.00 45,000.00 888,000.00 380,000.00 95,000.00 285,000.00 755,000.00 375,000.00 75,000.00 300,000.00 1,286,000.00 780,000.00 130,000.00 650,000.00 1,450,000.00 1,015,000.00 145,000.00 870,000.00 836,000.00 680,000.00 85,000.00 595,000.00 820,000.00 820,000.00 80,000.00 740,000.00 768,000.00 768,000.00 768,000.00 $ 9.025.703.42 $4.311.000.00 $768.000.00 $749.000.00 $4.330.000.00 Specia 1 Assessment Bond Interest Property Owner's Tota 1 City Share Share $ 209,350.27 $ 25,451.62 $183,898.65 302,966.26 121,877.40 181,088.86 197,295.00 63,160.75 134,134.25 155,160.00 53,381. 53 101,778.47 117,182.50 44,926.99 72,255.51 221,511. 25 122,190.70 99,320.55 $1.203.465.28 $430.988.99 $772.476.29 -32- . . . . ,. . I . . Cash in ~epositories Planters Bank and Trust Company Salina, Kansas National Bank of America, Salina, Kansas First National Bank and Trust Company, Salina, Kansas First Bank and Trust Co., Salina, Kansas Security Savings and Loan Association, Salina, Kansas . . . Total Cash in Depositories CITY OF SALINA Salina, Kansas COMPOSITION OF ENDING CASH BALANCES December 31, 1984 Cash in Checking Cash in Savings $1,080,261.88(1) $ 408.59 16,153.51(2) 540,867.98 879.22 1,674.78 30,000.00 $1,097,703.20 $572,542.76 Petty Cash Water and Sewerage Department Bicentennial Center Total Petty Cash . . . . . I . Total (1) Includes Federal funds balance of $975,000.00 (2) Includes Federal funds balance of $60,000.00 Certificates of Deposit $2,503,000.00 2,749,000.00 1,603,000.00 1,100,000.00 $7,955,000.00 Schedule 2 Total $3,583,261. 88 2,749,408.59 2,160,021.49 1,102,554.00 30,000.00 9,625,245.96 2,500.00 970.00 3,470.00 $9,628,715.96 -33- I I I I I I I I I I I I I I I I I I I CITY OF SALINA Sa 1 ina, Kansas Schedule 3 COMPARISON OF GROSS CASH BALANCES WITH DEPOSITORY SECURITY December 31, 1984 Gross Cash Balances Cash in checking $ Cash in savings Certificates of depos it Federal funds Totals Less FDIC or FSLIC coverage Balances Securable by Collateral Security required (70%) Security provided by depositories Amount Undersecured by Statute $ Planters Bank and Trust Company First National Bank and Trust Company Security Savings and Loan Association National Bank of America First Bank and Trust Co. 18,886.09 $ 5,571.24 $ 13,749.99 $ 9,392.29 $ 540,867.98 30,000.00 2,503,000.00 2,749,000.00 1,603,000.00 1,100,000.00 975,000.00 60,000.00 3,496,886.09 2,754,571.24 2,217,617.97 1,109,392.29 30,000.00 118,886.09 105,571.24 113,749.99 109,392.29 30,000.00 $3,378.000.00 $2,649.000.00 $2,103,867.98 $1.000,000.00 $ $2,364,600.00 $1,854,300.00 $1,472,707.59 $ 700,000.00 $ 3,180,091.00 2,823,594.32 1,405,420.00 1,053,437.00 $ $ 67,287.59 $ -34- I I I CITY OF SALINA Salina, Kansas Schedule 4 I I I I I I I COMPARISON OF SPECIAL ASSESSMENTS PROJECTS EXPENDITURES TO AUTHORIZATIONS December 31, 1984 Project Name Project Authoriza t ion Cumu1a t ive Expenditures Street Improvements Street Improvement - Mayfair Street Improvements and Water Line and Sanitary Sewer Improvements $299,514.93 222,066.39 $263,966.74 197,542.34 522,910.52 398,625.57 II I I I I I I I I -35- I I I I I I I I I I I I I I I I I I I CITY OF SALINA Salina, Kansas Schedule 5 SCHEDULE OF ACTIVE FEDERAL AWARDS Year Ended December 31, 1984 Program Title Project Number Amount of Award Federal Revenue Sharing 15th Entitlement Period Account No. 17-2-085-005 $395,106.00 Fair Housing Assistance Program HA-12502 22,000.00 Community Development Block Grant U.S. Department of Housing and Urban Development B-82-DH-20-0091 669,300.00(1) (1) For the period November 22, 1982 (date of grant approval) to December 31, 1984. -36- I I I I I I I I I I I I I I I I I I I AUDITORS' FINDINGS I I CITY OF SALINA Salina, Kansas I SCHEDULE OF AUDITORS' FINDINGS Year Ended December 31, 1984 I Federal Revenue Sharing Findings I Compliance Requirement - The Government is required to provide certain finan- cial data to the Bureau of Census. These data are to be verified by the auditor. I I Information reported on Bureau of Census forms did not agree with the City's annual financial statements. Material differences for the City's fiscal year ended December 31, 1983, are shown below. I Form F-21A (1984) Part I - Revenues Line 7.e. - Administrative and Misc. Service Fees - As reported Deduct swimming pool admissions also included in Line 2.e. $179,760 I 24,628 As Adjus ted $155,132 I Part IIA Direct Expenditures by Purpose and Type I Line 20 - Parks and other recreation, as reported. Add expenditures for Bi- centennial Center and other activities Current Operation Direct Capital Outlay Expenditures Purchase of Including Land, Equip- Salaries & Wages Construction ment, Etc. $ 457,727 $165,000 $14,942 660,266 55,067 $1,117,993 $165,000 $70,009 I I I As Adjus ted I Line 23.a. - Interest on debt - Water and Sewerage System, as reported Deduct expenditures for bond reserve requirements $ 408,561 $ $ I 130,859 As Adjus ted $ 277,702 $ $ I I -See Auditors' Report on Compliance- -37- I II CITY OF SALINA Salinil, Kansas I SCHEDULE OF AUDITORS' FINDINGS (CONTD.) Year Ended December 31, 1984 I Federal Revenue Sharing (Contd.) I Line 24.a. - Utilities - Water and Sewerage System, as reported Deduct depreciation expense Current Operation Capitd Out lay Direct Expenditures Purchase of Includ i ng Land, Equip- Salaries & Wages Construction ment, Etc. '$3,139,012 $193,830 $ 569,607 $2.569.405 $193,830 $ I I I As Adjus ted Fair Housing Assistance Program I Comments and Findings - None Community Development Block Grant I Comments I At the request of HUD, audit procedures for the grant were extended to cover the period of the grant from'November 22, 1982 (date of grant approval) to December 31, 1984. I Revenue generated by the program, namely, collection of principal and interest on loans made under the Housing Rehabilitation activity, appears to be properly returned to the program for use in making additional loans and grants. I Findings I Compliance Requirement - Grantee financial management systems shall include procedures to minimize the time elapsed between the transfer of funds from the U.S. Treasury and the disbursement of funds by the grantee. I Grantee received as part of September 19, 1983, for the disbursed as follows: a drawdown against the grant, $325,500.00 on Sewer Separation activity. These funds were I ~ Amount I 9-30-83 10-28-83 11-29-83 12-16-83 $ 34,532.10 129,907.35 130,086.00 30,974.55 I $325.500.00 I It appears these funds were requested in advance of the grantee's need for the funds. -See Auditors' Report on Compliance- -38- I I I I I I I I I I I I I I I I I I I I SEPARATE FINANCIAL STATEMENTS WATER AND SEWERAGE DEPARTMENT I I I I I I I I I I I I I I I I I I I CITY OF SALINA Salina, Kansas WATER AND SEWERAGE DEPARTMENT FINANCIAL STATEMENTS AND AUDITORS' REPORT December 31, 1984 and 1983 KENNEDY AND COE Certified Public Accountants Salina, Kansas II I I I I I I I I I I I I I I I I I I MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS HOME OFFICE: P. O. BOX 1179 SALINA. KANSAS 67401 913-825-1561 KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS OFFICES IN KANSAS NEBRASKA OKLAHOMA To the Mayor and The Board of City Commissioners: We have examined the balance sheets of the Water and Sewerage Department of the City of Salina, Kansas, as of December 31, 1984 and 1983, and the related state- ments of income, contributed capital and retained earnings, and changes in financial position for the years then ended. Our examinations were made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered nec- essary in the circumstances. In our opinion, the financial statements referred to above present fairly the finan- cial position of the Water and Sewerage Department of the City of Salina, Kansas, as of December 31, 1984 and 1983, and the results of its operations and the changes in its financial position for the years then ended, in conformity with generally accepted accounting principles applied on a consistent basis. Respectfully submitted, Sa lina, Kansas November 8, 1985 4~{J~ ~~ C.P.A. Certified Public Accountant in charge of and actively engaged on this audit. -39- CITY OF SALINA Salina, Kansas WATER AND SEWERAGE DEPARTMENT BALANCE SHEETS ASSETS Current Assets Cash and investments Accounts receivable, net of allowance for doubtful accounts - 1984, $41,316; 1983, $30,126 Prepaid supplies Total Current Assets Restricted Assets Sys tem s inking fund Cash and investments Plant reserve fund Cash and investments System reserve fund Cash and investments Total Restricted Assets Property, Plant, and Equipment Land Water plant and equipment Sewerage plant and equipment Furniture and office equipment Construction in progress Less accumulated depreciation Total Property, Plant, and Equipment Other As sets Deferred bond issuance costs, net of amortization Totals $ 891,098 I I I I I I II I I I I I I I I I I I I December 31, 1984 1983 $ 730,737 262,705 109,983 1,103,425 540,868 525,744 1,267,904 2,334,516 116,263 14,585,306 9,968,717 73,961 303,828 25,048,075 12,133,122 12,914,953 158,680 $16.511,574 The accompanying notes are an integral part of these financial statements. 222,128 112,475 1,225,701 1,277,222 691,994 1,160,452 3,129,668 116,263 14,515,380 9,940,200 58,266 52,794 24,682,903 11,584,351 13,098,552 53,545 $17.507.466 I I I I I I I I I I I I I I I I I I I LIABILITIES Current Liabilities Accounts payable Customers' meter deposits Accrued interest payable Long-term obligations due within one year (Note 2) Total Current Liabilities Long-Term Obligations Revenue bonds due after one year (Note 2) Reserves, Contributed Capital and Retained Earnings Reserves System sinking fund Plant reserve fund System reserve fund Total Reserves Contributed capital and retained earnings (Exhibit C) Total Reserves, Contributed Capital and Retained Earnings Totals Exhibit A December 31, 1984 1983 $ 166,906 61,090 129,128 490,000 847,124 2,280,000 540,868 525,744 1,267,904 2,334,516 II ,049,934 13,384,450 $16,511,574 $ 118,381 76,670 104,174 1,000 300,225 4,388,000 1,277,222 691,994 1,160,452 3,129,668 9,689,573 12,819,241 $17,507,466 -40- I I CITY OF SALINA Salina, Kansas I WATER AND SEWERAGE DEPARTMENT I STATEMENTS OF INCOME I Operating Revenues Wa ter revenue Sewerage revenue Tapping service and frontage charges Meter repair and service line revenue Service charge - Sanitation department Miscellaneous income Total Operating Revenues I I I Operating Expenses Wa ter supply Softening and treatment Pumping Dis tribution Customers' accounting and collection Administrative and general Sewage treatment and collection Depreciation Total Operating Expenses I I I Operating Income I Other Income Interest on investments Miscellaneous Total Other Income I Other Expenses Interest on revenue bonds Amortization of deferred bond issuance costs Loss on retirement of assets Total Other Expenses I I Net Income before Extraordinary Item Extraordinary Item Gain on advance refunding of revenue bonds (Note 2) I Net Income Year Ended 1984 $2,851,556 675,895 21,065 27,441 6,733 10,988 3,593,678 84,774 725,203 206,749 343,330 297,587 586,998 586,974 609,964 3,441,579 152,099 222,304 46,932 269,236 256,326 9,420 40,829 306,575 114,760 426,987 $ 541.747 The accompanying notes are an integral part of these financial statements. I I I Exhibit B December 31, 1983 $2,870,708 647,678 11,807 12,079 6,185 3,548,457 73,318 716,789 166,219 252,297 274,785 544,722 520,712 572 ,091 3,120,933 427,524. 236,567 236,567 277,702 2,231 3,429 283,362 380,729 $ 380.729 -41- I I I CITY OF SALINA Salina, Kansas WATER AND SEWERAGE DEPARTMENT Exhibit C I I I I I STATEMENTS OF CONTRIBUTED CAPITAL AND RETAINED EARNINGS Balance, Beginning of Year Addi t ions Net income for the year (Exhibit Contributions of property, plant Trans fers from System sinking fund reserve Plant reserve fund Total Additions I I I I I I I I I I I Deductions Transfers to restricted reserves System sinking fund Plant reserve fund System reserve fund Total Deductions Balance, End of Year Year Ended December 31, 1984 1983 $ 9,689,573 $ 9,711,224 B) 541,747 380,729 and equipment 23,462 260,644 1,312,389 278,702 225,551 2,103,149 920,075 576,035 59,301 107,452 742,788 485,791 73,668 382,267 941,726 $11,049,934 $ 9,689,573 The accompanying notes are an integral part of these financial statements. -42- I I I I I I I I I I I I I I I I I I I CITY OF SALINA Salina, Kansas Exhibit D WATER AND SEWERAGE DEPARTMENT STATEMENTS OF CHANGES IN FINANCIAL POSITION Year Ended December 31, 1984 1983 B) $ 114,760 $ 380,729 609,964 572,091 9,420 2,231 40,829 621 774,973 955,672 426,987 1,201,960 955,672 2,770,000 23,462 260,644 3,995,422 1,216,316 Sources of Working Capital From Opera t ions Net income before extraordinary item (Exhibit Charges against net income not affecting working capital Depreciation Amortization of deferred bond issuance costs Loss on dispositions of property, plant, and equipment Working capital provided by operations before extraordinary item Extraordinary item - Gain on advance refunding of revenue bonds Working capital provided by operations Issuance of revenue bonds Contributions of property, plant and equipment Total Sources of Working Capital Applications of Working Capital Refunding of revenue bonds Outstanding revenue bonds refunded Funds transferred from Sys tem s inking fund Plant reserve fund Refunding of revenue bonds - Net Decrease in long-term obligations Additions to property, plant, and equipment Increase in deferred bond issuance costs - Net Increase in restricted assets Total Applications of Working Capital 4,388,000 (1,172,553) (225,551) 2,989,896 490,000 467,194 114,555 602,952 4,664,597 1,000 373,104 663,024 1,037,128 Increase (Decrease) in Working Capital ($ 669,175) $ 179,188 -43- I I I CITY OF SALINA Salina, Kansas WATER AND SEWERAGE DEPARTMENT Exhibit D (Contd.) STATEMENTS OF CHANGES IN FINANCIAL POSITION I I I I I I I I I I I I I I I I Changes in Components of Working Capital Increase (Decrease) in Current Assets Cash and investments ($ Accounts receivable Prepaid supplies Total Increase (Decrease) in Current Assets Increase (Decrease) in Current Liabilities Accounts payable $ Customers' meter deposits Accrued expenses Long-term obligations due within one year Total Increase (Decrease) in Current Liabilities Increase (Decrease) in Working Capital ($ The accompanying notes are an integral part of these financial statements. Year Ended December 31, 1984 1983 160,361) 40,577 (2,492) (122,276) $ 200,360 (3,052) (11,383) 185,925 48,525 (15,580) 24,954 489,000 546,899 $ 9,862 (3,125) 6,737 669,175) $ 179,188 -44- - I I CITY OF SALINA Salina, Kansas WATER AND SEWERAGE DEPARTMENT I NOTES TO FINANCIAL STATEMENTS December 31, 1984 and 1983 I I 1. Summary of Significant Accounting Policies a. Fund Accounting: The City maintains its accounting records in accordance with the principles of fund accounting in order to ensure observance of limitations and restrictions placed on the use of resources available. Resources are classified for accounting and reporting into funds established according to their nature and purposes. The Water and Sewerage Department of the City of Salina is a separate fund of the City which is supported by user charges from its customers rather than by tax monies. I I The Department uses the accrual method of accounting in the preparation of its financial statements. Revenue is recorded as earned and expenses as incurred. I b. Deferred Issuance Costs: Deferred issuance costs are amortized to expense over the term of the related revenue bonds. I c. Property, Plant, and Equipment and Depreciation: Property, plant, and equipment are stated at cost. Assets acquired prior to 1981 have been adjusted to reflect cost as determined by a firm of professional appraisers. Depreciation is determined using the straight-line method over the estimated useful life of each asset. I I d. Investments: Investments are stated at cost which approximates market. I 2. Long-Term Obligations I The City issued $2,770,000 Combined Water and Sewage System Refunding Revenue Bonds, Series of 1984 (the 1984 Bonds), dated June 15, 1984, for the purpose of refunding its Combined Water and Sewage System Refunding Revenue Bonds, Series of 1978 (the 1978 Bonds), in the outstanding amount of $4,388,000 as of June 15, 1984. Cash and investments were transferred to a Refunding Escrow Trust Account at Planters Bank and Trust Company, Salina, Kansas, pursuant to an escrow trust agreement dated as of June 15, 1984, to provide the necessary funds for the refunding of the 1978 Bonds, as follows: I I Funds transferred to Refunding Escrow Trust Account from I Restricted Assets System sinking fund Plant reserve fund $1,172,553 225,551 1,398,104 2,601,900 I Net proceeds of the 1984 bonds Total $4,000,004 I I -45- I I Funds transferred to the Refunding Escrow Trust Account were invested in United States Government obligations, and the investments and interest earned on such investments will be sufficient to pay all principal and interest on the 1978 Bonds as they become due. The transaction resulted in a gain on advance refunding in the amount of $426,987. , I I The 1984 Bonds mature serially between February IS, 1985, and February IS, 1994, and bear interest at rates varying from 7 1/4 to 9 3/4 percent per annum. Maturities of the 1984 bonds in subsequent years are as follows: I Year Amount I 1985 1986 1987 1988 1989 Thereafter $ 490,000 310,000 210,000 230,000 250,000 1,280,000 I I Total Bonds Outstanding, December 31, 1984 $2,770,000 I The City issued the 1978 Bonds for the purpose of refunding its Combined Water and Sewage System Revenue Bonds of 1961 and 1977. Proceeds of the 1978 Bonds were invested in United States Government obligations deposited with Planters Bank and Trust Company, pursuant to an escrow trust agreement dated May I, 1978. Total funds deposited and interest earned on such funds will be sufficient to pay all principal and interest on the 1961 and 1977 bonds as they become due. I I Neither the assets deposited with the escrow agent nor the outstanding 1961, 1977, and 1978 obligatons totaling $7,788,000 are reflected in the accom- paying financial statements as of December 31, 1984. I The City has established certain reserve accounts pursuant to the 1984 bond ordinance to provide funds for the retirement of the bonds and payment of interest thereon and for making replacements to the system in the event other funds are not available. The gross revenues of the Department are pledged to secure payment of the bonds; however, the pledge is subordinate to a similar pledge to secure payment of the 1961, 1977, and 1978 bonds. I I The amounts required to be maintained in the reserve accounts established by the 1984 bond ordinance have been provided and the net operating income of the system for 1984 is sufficient to meet the requirements of the ordinance. I 3. Retirement Plan I The City participates in the State of Kansas Public Employees' Retirement System which is a defined contribution plan covering substantially all employees. The Department's portion of pension costs, Which are funded as accrued, was $41,987 and $39,595, for the years 1984 and 1983, respectively. I I -46- I