Audit Report - 2010 •
AAn_p__Aort
• Si I LIN
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4141/113414t"
1 COMPREHENSIVE ANNUAL FINANCIAL REPORT
of the
' SALINA AIRPORT AUTHORITY
A Component Unit of the
City of Salina, Kansas
' . For the Fiscal Year Ended December 31,2010
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Prepared by the Management
of the
' Salina Airport Authority
www.salinaairport.com
CUSIP#794760XXX
3237 Arnold I Salina, KS 67401 I 785-827-3914
www.salinaairport.com I www.flysalina.com
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ISALINA AIRPORT AUTHORITY
TABLE OF CONTENTS
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
IFor the Fiscal Year Ended December 31, 2010
IINTRODUCTORY SECTION
I Letter of Transmittal 1-6
Principal Officers 7
Authority Staff Members 8
I Organizational Chart 9
Certificate of Achievement 10
Salina Municipal Airport Aerial View 11
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I FINANCIAL SECTION .
IIndependent Auditors' Report 13-14
Management's Discussion and Analysis 15-21
Statements of Net Assets 22-23
IStatements of Revenues, Expenses and
Changes in Net Assets 24
Statements of Cash Flows (Direct Method) 25-26
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Notes to Financial Statements 27-43
I Supplemental Information
Schedules of Revenues, Expenses and Changes in Net Assets 46-48
Capital Expenditures 49-50
I General Obligation Improvement Bonds - Series 2001-A 51
General Obligation Improvement Bonds - Series 2002-A 52
General Obligation Improvement Bonds— Series 2005-A 53
I General Obligation Improvement Bonds— Series 2007-A 54
General Obligation Temporary Notes— Series 2007-1 55
General Obligation Improvement Bonds—Series 2009-A 56
I General Obligation Improvement Bonds— Series 2009-B 57
Special Assessment Debt-Street and Utility Improvement 58
Special Assessment Debt-Sanitary Sewer Extension 59
I Financing Lease Payable 60
Insurance in Force 61
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STATISTICAL SECTION '
Statistical Table of Contents 62 I
Total Annual Revenues, Expenses and Changes in Net Assets History 63-64
Change in Cash and Cash Equivalents History 65-66 '
General Obligation Debt Service Coverage 67
Capital Expenditure History 68
Revenue Bond Coverage 69 '
Local Government Mill Levy Rates, Direct and Overlapping 70
Principal Customers 71
Mill Levy Revenue 72
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Air Traffic, Fuel Flowage, and Enplanement Trends 73
Major Employers 74
Saline County Population and Demographic Statistics 75
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Saline County Largest Taxpayers and Tax Collection Statistics 76
COMPLIANCE
Report on Internal Control Over Financial
IReporting and on Compliance and Other Matters Based on an Audit
of Financial Statements Performed in Accordance with
Government Auditing Standards 77-78 ,
Report on Compliance with Requirements Applicable to
Each Major Program and Internal Control Over Compliance
In Accordance with OMB Circular A-133 79-80 '
Schedule of Expenditures of Federal Awards 81
Notes to Schedule of Expenditures of Federal Awards 82
Summary Schedule of Prior Audit Findings 83 '
Schedule of Findings and Questioned Costs 84
Corrective Action Plan 85
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Introduction
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.-- A building located on the Salina Airport Industrial Center once used for making furniture will now be
used to "make"unit supply specialists, motor transport operators,health care specialists, and more for
-' the Kansas National Guard.
A ribbon cutting ceremony and open house on September 18 celebrated the opening of a newly
remodeled Kansas National Guard training facility.
_ "The Airport Authority has provided us with a first class facility in which to train our National
Guardsmen," said Maj. Gen.Tod Bunting, Kansas Adjutant General, who was on deck to cut the ribbon.
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SALINAA1rP0rt
4.thwatiot Z=1/
I Chairman Vice Chairman Secretary Treasurer Past Chairman
Jeffry a Thompson Dr.Randy Hassler Daran Neuschafer Jeff Macs Jutie Sager Miller
Executive Director Timothy F.Rogers.A.A.E.
Mgr.of Administration and Finance Michelle R.Swanson Mgr.of Operations David'Gunner"Wiles Mgr.of Facilities Kenny Bieker
I Mgr.of Public Affairs and Communications Melissa L McCoy
Board Attorney Greg A.Bengtson
July 20,2011
Salina Airport Authority Board of Directors
3237 Arnold Ave.
Salina,KS 67401
To the Board of Directors of the Salina Airport Authority:
I The Comprehensive Annual Financial Report(CAFR) of the Salina Airport Authority (the "Authority")
for the fiscal year ended December 31, 2010 is hereby submitted in accordance with the Kansas Statutes
Annotated(K.S.A. 27-324). As required by the statute,the City of Salina will be furnished copies of the
Authority's 2009 CAFR. Responsibility for both the accuracy of the data presented and the
completeness and fairness of the presentation, including all disclosures,rests with the Executive Director
of the Authority. To the best of our knowledge and belief, the data as presented is accurate in all
material aspects,that it is presented in a manner designed to fairly set forth the fiscal position and results
of the operation of the Authority as measured by its financial activity, and that all disclosures necessary
to enable the reader to gain maximum understanding are included in the report.
IThis CAFR is presented in accordance with generally accepted accounting principles (GAAP) and
pursuant to K.S.A. 27-324,an audit of the books, accounts and financial statements has been completed
I by the Authority's independent certified public accountants, Clubine and Rettele, Chartered. The
independent audit is in accordance with the Kansas Municipal Audit Guide, the Government Auditing
Standards issued by the Comptroller General of the United States, and the provisions of the Office of
I Management and Budget Circular A-133, "Audits of States, Local Governments and Nonprofit
Organizations".
GAAP requires that management provide an overview and analysis to accompany the financial
statements in the form of a Management Discussion and Analysis(MD&A). It is recommended that this
letter of transmittal be read in conjunction with the MD&A, which can be found immediately following
the report of the independent auditor in the Financial Section of this report.
IREPORTING ENTITY
The Salina Airport Authority is a body corporate and politic. The Authority was created by the City of
Salina in April 1965 (Sec. 4-16, Salina City Code) pursuant to the authority granted by the City by the
surplus property and public airport authority act of the State of Kansas (K.S.A. 27-315 et seq.) The
Authority was created for the purpose of accepting as surplus property portions of the former Schilling
A.F.B., which was closed by the United States Department of Defense in June 1965. By quitclaim deed
Ithe Authority received over 2,900 acres of land and numerous buildings for the purpose of operating and
developing the Salina Municipal Airport and the Salina Airport Industrial Center. The Authority is
managed and controlled by a five-member Board of Directors appointed by the Salina City Commission.
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INTRODUCTORY
The Board appoints the Executive Director, who is the chief executive officer of the Authority. The
Executive Director hires the remaining employees of the Authority. The Executive Director and his staff
of nineteen employees manage and operate the Salina Municipal Airport and the Salina Airport
Industrial Center.
The Salina Municipal Airport is the only commercial service airport serving Salina/Saline County and
the 24-county area, which comprises North Central Kansas. The Airport also services the corporate,
business,private aviation and flight training needs of industry,business and individuals in the area. The
Airport is also used by Kansas State University at Salina (KSUS). The campus of KSUS is located
adjacent to the Airport. The college offers degrees in professional flight training, airframe and power
plant maintenance,and avionics technology.
The Salina Municipal Airport and Airport Industrial Center is home for over 70 businesses and
organizations. Forty-five of the businesses and organizations are tenants of the Authority. One of the
primary functions of the Authority is to facilitate the continued growth of jobs and payroll at the Airport
and Airport Industrial Center. The Authority works in partnership with the City of Salina, Saline County
and the Salina Area Chamber of Commerce for the retention of existing business and industry and the
recruitment of new business and industry.
ECONOMIC CONDITIONS AND OUTLOOK
Local Economy
The Salina/Saline County economy has continued to demonstrate economic strength, as compared to
other regions of the state. In fact, Salina is the employment center for a large 13-county labor pool of
nearly 44,000 individuals. During 2010,the Salina micro area unemployment rate averaged 5.9%. Even
during these times of economic challenges, the area's unemployment rate has remained below the State
and National average. Salina's visitor count during 2010 is estimated at over 610,000. Lodging revenue
reached a record high of over $20 million. Growth in the areas of manufacturing, transportation,
finance, real estate, insurance, services and retail trade, confirm Salina's position as one of Kansas'
strongest regional economic centers. Collectively, Salina retail sales are pushing above $900,000
million and towards the$1 billion threshold annually. '
Salina is the trading center of a 24-county area in North Central Kansas. Salina has a 1.535 "pull-factor"
reflecting the overall strength of the community as a regional retail draw. The 1.535 pull factor is the 3'1
highest in the state for Pt class cities. Major retail firms opening or expanding in recent years include
Kohl's, Petco, Old Navy, Hobby Lobby, Logan's Roadhouse, Jimmy John's, Hog Wild Pit BBQ, Little
Caesar's Pizza,Dollar General,Taco Time,Yogurtini,Menards and Ashley's Furniture Store. '
Most major employers saw hiring increases in 2010,with many reaching employment levels comparable
to 2008 before economic downturn. Business and industry are proceeding ahead with business plans
while expressing cautious optimism.
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INTRODUCTORY
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Economic Condition of the Airport and Airport Industrial Center
' As of December 31, 2010, over 70 businesses and organizations at the Salina Municipal Airport and
Airport Industrial Center employed over 4,000 employees with a combined payroll in excess of$140
million.
Future Economic Outlook
The future economic outlook for both Salina and the Authority continues to look favorable. Continued
growth in service,retail and manufacturing sectors is expected. The Salina Area Chamber of Commerce
' forecasts that approximately 700 new jobs per year will be added to the economy over the next three to
five years.
' Salina Aviation Service Center businesses including CAV Aerospace and Kansas State University at
Salina continue to work on facility expansion plans. Salina Airport Industrial Center businesses
including Schwan's Food Manufacturing Inc., and the Kansas Army National Guard at Salina, also
' continue to work on facility expansions. Collectively,these expansions will result in additional jobs and
payroll.
' The Salina Airport Authority in partnership with the Salina Area Chamber of Commerce, the City of
Salina and Saline County, continue to execute an economic development strategic plan that include web
based building and site directories, electronic newsletters, trade show participation and expanding
' contacts through the Kansas Department of Commerce. The Airport Authority contracts the services of
Zimmer Real Estate Services and Mr. James Gregory, James Gregory Consultancy, for national and
international recruitment of aerospace business to locate at the SLN Aviation Service Center.
INITIATIVES AND DEVELOPMENT
' The top initiative will be the leasing of facilities vacated or soon to be vacated as a result of Hawker
Beechcraft Corporation closing its Salina operations. Leasing those facilities will help replace the jobs
and payroll lost by the Salina community. It will also mean maintaining and replacing the lease revenue
stream to the Airport Authority's operating budget. This is vital in order for the Airport Authority to
continue to provide the services necessary to operate a world-class airport and airport industrial center.
' The completion of capital improvements to existing facilities and the Airport Industrial Center are also a
top priority. There is a Capital Improvement Program in place that details more than $60 million worth
of projects to take place within the next five to ten years. These improvements will aid the Airport
Authority in filling unused space and continue to offer the superior services and facilities the aviation
community has come to expect from Salina.
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INTRODUCTORY
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Other significant initiatives include:
$ Continuation of essential air service development program and activities.
$ Maintain intense momentum in recruiting businesses to the Salina Aviation Service Center.
$ Reach a settlement agreement with the Department of Justice to fund the cleanup of
environmental contamination caused by operations at the formerly used defense sites.
$ Completion of preliminary design and feasibility work for the Wings Over Salina Air
Museum.
$ Establishment of new Air Traffic Control procedures to take advantage of the improved radar
coverage for civilian and military aircraft operations in the airspace around Salina.
. Continuation of support for K-State Salina and their Applied Aviation Research Center and
Unmanned Aerial Systems Program Office.
$ Completion of Hangar 606 renovations for military operations at forward operating location
Salina.
$ Support continued growth and development of the Kansas National Guard Great Plains Joint
Training Center.
$ Completion of the north ramp utility project, which includes a new fire main, domestic water
main and sanitary utility sewer line. These improvements will support current and future
airport and airport industrial center development plans.
$ Develop safety management system.
$ Rehabilitation of Hangar 606. This former Hawker Beechcraft hangar is expected to be used
to house two important operations; a dedicated forward operating location for military units
deployed to Salina for training and a permanent tenant which intends to establish a flight
training facility for high performance turbine aircraft.
$ Evaluate wind and solar options for electricity to determine advantages of net metering
savings.
$ Update of Airport Industrial Center guidance signage.
$ Upgrades to the Airports 300,000 gallon underground storage tank fuel farm including
enhanced metering and monitoring systems.
$ Implement the recommendations outlined in the 2010 USDA wildlife hazard assessment
report for an aggressive a wildlife mitigation program.
FINANCIAL CONTROLS
The Authority follows generally accepted accounting principles applicable to governmental unit
enterprise funds. Accordingly,the financial statements are prepared on the accrual basis. ,
Management of the Authority is responsible for establishing and maintaining an internal control
structure designed to ensure that the assets of the Authority are protected from loss, theft,or misuse and
to ensure that adequate accounting data is compiled to allow for the preparation of financial statements
in conformity with generally accepted accounting principles. The internal control structure is designed
to provide reasonable, but not absolute, assurance that these objectives are met. The concept of
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reasonable assurance recognizes that: (1)the cost of a control should not exceed the benefits likely to be
derived;and(2)the valuation of costs and benefits requires estimates and judgments by management.
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INTRODUCTORY
An annual budget is prepared in accordance with the Authority's By-laws. However, the Authority is
' specifically exempt from the budget laws of the State of Kansas(K.S.A. 27-322)and the Authority is not
required to demonstrate statutory compliance with its annual operating budget. Accordingly, budgetary
data is not included in the accompanying financial statements.
CASH MANAGEMENT
All cash temporarily idle during 2010 was invested by the Executive Director of the Authority in short-
term investments to attain the highest possible return consistent with the Authority's liquidity needs. All
investments are in compliance with K.S.A. 12-1675 which controls the investment of public funds by
Kansas governmental units.
IRISK MANAGEMENT
The Authority is exposed to risks of loss associated with the operation of a public use airport and the
operation of an airport industrial center. To handle the associated risks of loss, the Authority uses
available tort liability legislation and purchases the appropriate types of insurance coverage. It is the
policy of the Authority to eliminate or transfer risk of loss where possible.
The Kansas Tort Claims Act (K.S.A. 75-6101 et seq.) generally limits tort liability for Kansas
governmental entities. The maximum liability for claims as specified by the Act is $500,000 for any
number of claims arising out of a single occurrence or accident. For wrongful acts, Kansas
governmental entities or their employees are exempted from liability.
IThe Authority carries $1,000,000 of comprehensive general liability insurance. During 2010 the
Authority carried $30,088,833 of insurance on airport commercial properties. The Authority also
acquires construction builders' risk policies for all major construction projects or requires evidence of
Icoverage from the contractor.
The Authority's commercial property insurance included $2,446,253 in loss of rents coverage. All
contractors and lessees are required to carry amounts of property insurance with limits and deductibles
approved by the Authority. A schedule of insurance in force at December 31, 2010 is included in the
Supplemental Section of this report.
1 In addition, the Authority uses various risk management techniques. All contracts and leases are
reviewed by the Authority's legal counsel. All contractors and subcontractors are required to submit
evidence of insurance coverage naming the Salina Airport Authority and the City of Salina as named
additional insured.
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INTRODUCTORY F7 :'01')
GFOA CERTIFICATE OF ACHIEVEMENT 1
The Government Finance officers Association of the United States and Canada (GFOA) Awarded a
Certificate of Achievement or Excellence in Financial Reporting to the Salina Airport Authority for its
comprehensive annual financial report for the fiscal year ended December 31, 2009. In order to be
awarded a Certificate of Achievement, a government must publish an easily readable and efficiently
organized comprehensive annual financial report. This report must satisfy both generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current 1
comprehensive annual financial report continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
ACKNOWLEDGEMENTS
The support of the Authority's Board of Directors has been instrumental in the preparation of this report.
P Po
The Board has been actively involved in the preparation and review of this report and is committed to
responsible and progressive financial reporting. 1
Also acknowledged is the assistance of the Authority's auditor, Clubine and Rettele, Chartered, the
Authority's accounting advisor, Thomas G. Arnett, CPA, Saline County Clerk's Office, Dennis Lauver, 1
President of the Salina Area Chamber of Commerce, Rod Franz, Director of Finance for the City of
Salina, Kristin, Scheele, Sean McIntire and Alex Kijowski, Kansas State University at Salina students
and Salina Airport Authority Airport Management Interns, the University of Kansas Institute for Public 1
Policy and Business Research and the Kansas Department of Human Resources Labor Market
Information Services, in the preparation of this report.
Respectfully submi ed,
e SOCci7S-t(-)
Timothy F. R ers, .A.E. Michelle R. Swanson
Executive Director Manager of Administration and Finance
Salina Airport Authority Salina Airport Authority I
cc: The City of Salina Board of Commissioners
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INTRODUCTORY FY 2010
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ISALINA AIRPORT AUTHORITY
PRINCIPAL OFFICERS AS OF DECEMBER 31,2010
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I Pictured from left to right:
Troy Vancil,Vice Chairman;Julie Sager Miller,Past Chairman;Jeffrey IL Thompson,Chairman;Timothy F.Rogers,Executive Director;Greg Bengtson,
Authority Counsel;Dr.Randy Hassler,Secretary and Eric R.Hardman,Treasurer.
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AUTHORITY'S BOND COUNSEL
IGilmore & Bell
Kansas City, Missouri
IAUTHORITY'S FINANCIAL ADVISOR
I George K. Baum& Company
Kansas City, Missouri
IAUTHORITY'S AUDITOR
Leslie M. Corbett, C.P.A.
I Clubine& Rettele, Chartered
Salina, Kansas
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SALINA AIRPORT AUTHORITY ,
Staff Members as of December 31,2010
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ADMINISTRATIVE STAFF '
Timothy F. Rogers, A.A.E. Executive Director '
Michelle R. Swanson Manager of Administration and Finance
David"Gunner" Wiles Manager of Operations
Kenny Beiker Manager of Facilities
Melissa L. McCoy Manager of Public Affairs and Communications
Donald C. Kneubuhl Manager of Special Projects
Kasey L. Windhorst Executive Assistant
Gretchen Engstrom Administrative Assistant
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FACILITY MAINTENANCE and OPERATIONS '
Loren Carleton—Team Leader
Ron Boyd Rob Pejsha
Kim Colby Dale Mattison
Sean McIntire
AIRCRAFT RESCUE AND FIREFIGHTING and SAFETY and SECURITY
David Nease—Team Leader
Alan Mason Andrew Harper
Matthew Rittel Alan Anderson
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SA LINA A irport
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Organization Chart
December 31,2010
Citizens of Salina
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Salina City Commission
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SAA Board of Directors
Jeffery R.Thompson 03/01/07-02128113
Troy Vancll 03/01/08-02/28/11
Dr.Randy Hassler 03/01/09-02/28112
Eric Hardman 03101/09.02/28/11
Julie Sager Miller 03/01/06-02/28/12
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Executive Director
Timothy F.Rogers,A.A.E.
gM rte Mgr.Admin.&Finance M r.of Public Affairs&Communication Mgr.of Special Project Mgr.of Operations
Michelle R.Swanson Melissa Mell McCoy Donald C.Knsubuhl Mgr.of Facilities David"Gunner"Wiles
. i Kenneth R.Milker ` i
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Executive Assistant
Kasey L Wlndhorat
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Administrative Asst. Facility Maintenance and Aircraft Rescue and Firefighting
Gretchen Engstrom Development Safety&Security
K-State Salina
Intern
r Team Leader \ Team Leader
David Neese
Loren Carleton ' 1
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Specialist -. Specialist , l Specialist Specialist Specialist Specialist
Ron Boyd Rob Pejsha Kim Colby Dale Mattison Alan Anderson Alan Mason
. i „, Coby i . .
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PT Maintenance • f Specialist Specialist
Sean McIntire Matthew RKtel Andrew Harper
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Specialist
Vacant
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Certificate of 1
Achievement
for Excellence
in Financial
Reporting I
Presented to ,
Salina Airport Authority
Kansas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2009
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports(CAFRs)achieve the highest
standards in government accounting
and financial reporting.
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INTRODUCTORY FY2010
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1 . .SeaPort Airlines was selected by the Department of Transportation as Salina's new EAS provider.
SeaPort, has been giving traditional airlines a run for their money and winning over air travelers
j everywhere they have opened their cabin doors thanks to low fares, a"right-sized"business model and
i outstanding customer service.
1 Travelers can book tickets from Salina on SeaPort Airlines to virtually anywhere in world via
connections in Kansas City and Memphis though local travel agents. Passengers can also use the
SeaPort website or Expedia to book online from Salina to Kansas City, Memphis or Harrison,Arkansas.
- This allows passengers the greater ability to compare SeaPort's prices and advantages to those of larger
airlines like Delta, AirTran and American Airlines.
IINDEPENDENT AUDITORS' REPORT
CLUBINE&
1 RETi ELE
CHARTERED To the Board of Directors
Salina Airport Authority
Certified Public Accountants
IWe have audited the accompanying financial statements of Salina Airport
Authority, a component unit of the City of Salina, Kansas, as of and for the years
ended December 31, 2010 and 2009, as listed in the table of contents. These
1 financial statements are the responsibility of the Authority's management. Our
responsibility is to express opinions on these financial statements based on our
I audits.
We conducted our audits in accordance with auditing standards generally accepted
Robert I.Clubine,C.P.A. in the United States of America and the standards applicable to financial audits
I David A. Rettele,C.P.A.
Jay D.Langley,C.P.A. contained in Government Auditing Standards, issued by the Comptroller General of
Jon K.Bell,C.P.A. the United States and the Kansas Municipal Audit Guide, prescribed by the
Leslie M.Corbett.C.P.A.
Stacy J.Osner,C.P.A. Director of Accounts and Reports, Department of Administration of the State of
1 Kansas. Those standards require that we plan and perform the audit to obtain
Marci K. Fox.C.P.A. reasonable assurance about whether the financial statements are free of material
John T.Millikin,C.P.A. misstatement. An audit includes examining, on a test basis, evidence supporting
I Linda A. Suelter,C.P A.
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management,as well as evaluating the overall financial statement presentation. We
Ibelieve that our audits provide a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all
I material respects, the financial position of Salina Airport Authority, as of
December 31,2010 and 2009, and the changes in financial position and cash flows
for the years then ended in conformity with accounting principles generally
1 accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report
1 dated July 11, 2011,on our consideration of Salina Airport Authority's internal
control over financial reporting and our tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements and other matters.
I The purpose of that report is to describe the scope of our testing of internal control
218 South Santa Fe over financial reporting and compliance and the results of that testing and not to
P.O. Box 2267 provide an opinion on the internal control over financial reporting or on
I Salina, Kansas
67402-2267 compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards and important for assessing the results of our
audits.
Salina Accounting principles generally accepted in the United States of America require
785/825-5479 that the management's discussion and analysis on pages 15 through 21 be presented
Salina Fax to supplement the basic financial statements. Such information,although not a part
I 785/825-2446
of the basic financial statements, is required by the Governmental Accounting
Ellsworth Standards Board, who considers it to be an essential part of financial reporting for
785/472-3915 placing the basic financial statements in an appropriate operational, economic or
I Ellsworth Fax
785/472-5478 historical context. We have applied certain limited procedures to the required
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supplementary information in accordance with auditing standards generally accepted in the United States of 1
America, which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management's responses to our inquiries,the basic financial
statements and other knowledge we obtained during our audit of the basic financial statements. We do not
express an opinion or provide any assurance on the information because the limited procedures do not provide
us with sufficient evidence to express an opinion or provide any assurance. '
Our audit was conducted for the purpose of forming opinions on the financial statements as a whole. The
introductory section, the supplemental information in the financial section and the statistical section of the
table of contents are presented for purposes of additional analysis and are not a required part of the financial
statements. The accompanying schedule of expenditures of federal awards is presented for purposes of
additional analysis as required by U.S. Office of Management and Budget Circular A-133,Audits of States,
Local Governments and Non-Profit Organizations, and is also not a required part of the financial statements.
The supplemental information in the financial section and the schedule of expenditures of federal awards are
the responsibility of management and were derived from and relate directly to the underlying accounting and
other records used to prepare the financial statements. The information has been subjected to the auditing
procedures applied in the audit of the financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used to
prepare the financial statements or to the financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our opinion,the
information is fairly stated in all material respects in relation to the financial statements as a whole. The
introductory and statistical sections of the table of contents have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide
any assurance on them. I
CLUBINE AND RETTELE, CHARTERED
C,-e-tr•te a-1/v/ /J1 C a d
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Salina, Kansas
July 11, 2011 I
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IMANAGEMENT'S DISCUSSION AND ANALYSIS
The management of the Salina Airport Authority offers the readers of the Authority's audited financial
I statements this narrative overview and analysis of the financial activities of the Salina Airport Authority
for the fiscal year ended December 31,2010.
IAIRPORT ACTIVITY AND HIGHLIGHTS
The Salina Air Traffic Control Tower(ATCT)ended 2010 having handled 60,451 aircraft operations.
I This represented a 7.09%decrease in total aircraft operations over the prior year,which was better than
expected due to the fact that the national and state wide average drop in aircraft operations was 12%.
I The highest year for the most recent 10-year period was 2002 at 95,801 aircraft operations. Salina
continues to remain strong as a mid-continent refueling stop and has earned the recognition as"America's
Fuel Stop". The Airport's two world-class fixed base operators(FBOs)and tenants of the Authority
I annually deliver 2.5—3.8 million gallons of fuel to thousands of business jets,government and military
aircraft.
I The commercial airline industry continues to experience financial stress, especially for the carriers
attempting to serve rural communities such as Salina through the Department of Transportation's (DOT)
Essential Air Service Program. The 39% decrease in passenger enplanements from 2008 to 2009 was a
I result of Great Lakes discontinuing the daily flights to Denver that had brought about an increase in 2008
after they had transitioned to dual hub service. At the end of 2009, Great Lakes was offering multiple
weekday and weekend flights to Kansas City while arriving at the end of their two-year EAS contract.
' As 2009 ended, the Authority and the Salina community began working in partnership with the DOT to
seek air carriers interested in providing air service to the residents of North Central Kansas for the next
two-year EAS term and beyond. In early 2010, SeaPort Airlines was awarded the DOT EAS contract for
Salina's air service and begin three daily flights six days a week between Salina and Kansas City. The
I10% increase in passenger enplanements is a result of SeaPort rebuilding the market with excellent
customer service,on-time performance, reliability and lower airfares.
IThe changes in the Authority's major airport activity indicators for the past three years are as follows:
2010 2009 2008
IEnplanements - Scheduled Air Carrier& Charter Flights 3,136 2,839 4,654
% increase/(decrease) 10.46% -39.00% 86.53%
I Aircraft Operations-All Categories 60,451 65,062 71,575
increase/(decrease) -7.09% -9.10% -6.41%
I Fuel Flowage -(gallons delivered) 2,763,990 2,481,585 3,114,515
increase /(decrease) 11.38% -20.32% -17.58%
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AIRPORT INDUSTRIAL CENTER ACTIVITY AND HIGHLIGHTS
The Authority owns over 1 million sq. ft. of manufacturing, warehouse and office space at the Airport
Industrial Center. As further described herein,the building and land revenue generated by the Authority's
leasing activity constitutes a significant portion of the annual operating revenue budget. During 2010,
building rents equaled$1,497,330 or 65%of operating revenue. At the end of 2010,the Authority had an
occupancy rate of over 82%in its building inventory.
SUMMARY OF OPERATIONS AND CHANGES IN NET ASSETS
Even with the uncertainty in the aviation industry and the slow growth in the economy, the financial '
condition of the Authority has held steady in recent years. The Authority has effectively dealt with major
cost increases in employee health benefits including medical insurance premiums, utility costs,
commercial property insurance premiums and other operating expenses. Fortunately, with the diversified
revenue base,including building and land rental from the Authority's Industrial Center,total operating
revenue has grown from$1.6 million in 2002 to$2.3 million in 2010.
2010 2009 2008
Operating Revenues $ 2,305,282 $ 2,098,576 $ 2,152,370
Operating Expenses (2,236,720) (2,220,128) (2,245,300)
Excess before Depreciation
and other non-operating
income and expenses 68,562 (121,552) (92,930)
Depreciation (2,290,253) (1,748,348) (1,606,811) 1
Excess (loss) before
other non-operating
income and expenses (2,221,691) (1,869,900) (1,699,741)
Other Non-Operating Income I
and(Expenses) net 774,104 387,831 419,492
Loss before '
Capital Contributions (1,447,587) (1,482,069) (1,280,249)
Capital Contributions 1,172,507 3,770,558 1,650,041
Increase (Decrease) in Net Assets $ (275,080 $ 2,288,489 $ 369,792 1
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SUMMARY OF OPERATIONS HIGHLIGHTS
Significant items effecting the Summary of Operations and Changes in Net Assets for 2010 and 2009 are
' as follows:
• Operating revenues have remained steady in recent years despite the downturn in the overall
' economy. Revenues from aircraft storage and hangar rentals have assisted in offsetting the
decrease in revenue derived from the delivery and sale of aviation fuel at the Airport. The fuel
flowage fees received by the Authority for each gallon of fuel delivered at the Airport did end on a
positive note during 2010 with a 15% increase from 2009. This was positive news after two
straight years of decreases of 17% in 2008 and 21% in 2009. A decrease in corporate and
general aviation flying due to the economy and severe winter weather in 2009 resulted in a 31%
decrease in itinerant general aviation operations over 2008. Fortunately, military traffic has
remained strong during the recession providing the demand to keep the operations and fuel sales
from further downward pressure. Building and land revenue increased by over 6%, and has
increased over 50%in the past five years.
• The Authority has been able to hold operating expenses to within 1% over the last two years on
the heels of a 12.3%increase from 2007 to 2008.
o During 2009 and 2010, the Authority made a concerted effort to hold and reduce
' operating costs by reducing travel and meeting expense as well as reducing all dues and
subscriptions and cancelling all non-essential items.
o In addition, the Authority was able to reduce building maintenance expense by nearly
60%in 2009 by utilizing in-house personnel for items that were previously contracted out
to third party vendors.
1 • Depreciation expense increased due to new construction moving over $10 million from
construction in progress to an asset in service and very capital intensive years from 2007-2010.
• Capital contributions were nearly$5 million during the 2009 and 2010 as a result of contributions
from seven grants from the Federal Aviation Administration Airport Improvement (A1P) grant
programs and two new grants from the Kansas Department of Transportation. During 2009 and
2010 these grants funded the Authority's construction of a significant portion of a multi-year
taxiway rehabilitation project, a mill and inlay project on the Airport's primary runway and the
design of a new Aircraft Rescue and Fire Fighting station.
' • Ad-valorem tax revenue (mill levy) received by the Authority as a local taxing entity increased
by 33% from 2009 to 2010 and 5.6% from 2008 to 2009. Interest received on investments and a
financing lease decreased by $64,365 from 2009 to 2010 which was due to a reduction in bond
1 proceeds on deposit as well as a decrease in investment interest rates.
1 I
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FINANCIAL POSITION SUMMARY I
The changes in net assets may serve over time as a useful indicator of a government's financial position.
The Authority's assets exceeded liabilities by$27,790,227 at the close of 2010. A condensed summary of
the Authority's total net assets at December 31 is shown below.
By far the largest portion of the Authority's net assets (85%) reflects its investment in capital assets ,
including land, buildings, airfield infrastructure and machinery and equipment, less any related debt used
to acquire those assets that is still outstanding. The Authority uses these capital assets to provide services
to citizens; consequently, these assets are not available for future spending. Although the Authority's
investment in its capital assets is reported net of related debt, it should be noted that the resources needed
to repay this debt must be provided from other sources, since the capital assets themselves cannot be used
to liquidate these liabilities.
2010 2009 2008 1
ASSETS
Current and other assets $ 6,412,368 $ 4,524,282 $ 3,752,996
Capital assets 48,593,008 47,774,283 42,562,780
Total assets 55,005,376 52,298,565 46,315,776
LIABILTI'IES
Long-term debt outstanding 23,775,192 13,260,869 17,276,448
Other liabilities 3,439,957 10,972,389 3,262,510
Total liabilities 27,215,149 24,233,258 20,538,958
NET ASSETS:
Invested in capital assets, 23,717,291 26,410,681 24,471,896
net of related debt '
Restricted - - -
Unrestricted 4,072,936 1,654,626 1,304,922
TOTAL O NET ASSETS $ 27,790,227 $ 28,065,307 $ 25,776,818
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IREVENUES
I The following chart shows the major sources and the percentage of total operating revenues for the year
ended December 31,2010:
I
Other revenue
I ear,.
I
Building and land mat
I 115%
I A summary of revenues for the past three years is shown below. Total revenue increased by 16.7% from
2009 to 2010 and remained fairly flat at a 2.6% increase from 2008 to 2009. The increase in airfield
revenue is a result of increased short term leasing activity and increased military hangar leasing activity
Ifor forward operating location training.
I
2010 2009 2008
1 Operating Revenue:
Airfield $845,813 $667,636 $680,474
Building and land rent 1,497,330 1,402,230 1,407,984
IGain(loss) on sale of assets -86,067 0 16,321
Other revenue 48,206 28,710 47,591
ITotal Operating 2,305,282 2,098,576 2,152,370
Non-Operating Income:
I Mill Levy 1,768,154 1,327,647 1,256,816
Interest Income 9,948 74,313 185,215
Total Non-Operating 1,778,102 1,401,960 1,442,031
ITOTAL REVENUE $4,083,384 $3,500,536 $3,594,401
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EXPENSES
The following chart shows the major expense categories and the percentage of total operating expenses for
the year ended December 31, 2010:
MaYlLtgnc 1
37%
I
I
A summary of expenses for the past three years is shown below. Total expenses were held to a less than
1% increase from 2009 to 2010 and were also within 1% from 2008 to 2009. The Authority has taken
significant steps to hold operating expenses in recent years including completing more facility
maintenance projects in-house and reducing administrative expenses such as travel and meetings.
I
2010 2009 2008
1
Operating Expenses
Administrative $ 1,414,922 $ 1,352,357 $ 1,303,374
Maintenance 821,798 867,771 941,926
Total Operating 2,236,720 2,220,128 2,245,300
Non-Operating Expense
Interest Expense 964,069 987,379 996,985
Amortization of bond costs 39,929 26,750 25,554
Total Non-Operating 1,003,998 1,014,129 1,022,539
TOTAL EXPENSES $ 3,240,718 $ 3,234,257 $ 3,267,839
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CAPITAL ACQUISITIONS AND CONSTRUCTION ACTIVITIES
The Authority acquired $3,253,475 of capital assets during 2010. Significant items included the
substantial completion of a multi-year, multi-million dollar taxiway rehabilitation project and the design
of a new Aircraft Rescue and Fire Fighting(ARFF)station. The construction of this project is expected to
be begin in 2011 and will be funded primarily through Federal Aviation Administration Airport
Improvement Program Grant funds. In addition, 2010 marked the Authority's third consecutive year to
participate in the Defense Reutilization Marketing Office (DRMO) program. The DRMO entity
disposes of United States military surplus property. The Authority acquired numerous capital
' equipment assets having a fair value of$96,051. Additional information can be found in Note I (C) in
the notes to the financial statements.
' Capital asset acquisitions exceeding $1,000 are capitalized at cost and are depreciated over their useful
lives, with the exception of land. The Authority's capital assets are financed using Federal and State
grants with matching Authority funds, debt issuance and Authority revenues. Additional information on
the Authority's capital assets can be found in Note III (D) in the notes to the financial statements and
within the Supplemental Section of this report.
DEBT ADMINISTRATION
' The outstanding long-term debt of the Authority was $23,775,192 at December 31, 2010. This debt
consists of general obligation bonds, general obligation temporary notes, financing lease and City of
Salina special assessments. Maturities range from 2010 through 2029. Both principal and interest are
' payable from proceeds of a direct financing lease, the general revenues of the Authority and mill levy
revenue. During 2010, the Authority issued $11,657,000 in General Obligation Temporary Notes which
included refunding $7,050,000 in existing General Obligation Temporary Notes. Details of the
Authority's debt can be found in Note III(E)in the notes to the financial statements.
' REQUEST FOR INFORMATION
This Management Discussion and Analysis is designed to provide detailed information on the Authority's
operations and the financial results of those operations to all those with an interest in the Authority's
financial affairs. Questions concerning any of the information provided in this report or requests for
additional information should be addressed to the Manager of Administration and Finance by e-mail:
shellis(csalair.org or in writing to,Salina Airport Authority, 3237 Arnold Ave., Salina, KS 67401.
Respectfully submitted, 1
Timothy F. Ro rs,A. .E. Michelle R. Swanson
Executive Director Manager of Administration and Finance
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FINANCIAL F > ,
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SALINA AIRPORT AUTHORITY
STATEMENTS OF NET ASSETS
I
ASSETS December 31
I
2010 2009
CURRENT ASSETS
Cash $ 4,218,016 $ 2,037,114
1
Accounts receivable 210,224 193,158
Prepaid expenses 17,909 1,018
Inventory-Avgas 2,251 2,031
Taxes receivable 1,833,239 1,849,957
Total Current Assets 6,281,639 4,083,278 I
LONG-TERM ASSETS I
Capital Assets
Land 10,449,502 10,045,937
1
Buildings, improvements and equipment,
net of depreciation 36,938,127 26,503,254
1 Construction in progress 1,205,379 11,225,092
Total Capital Assets 48,593,008 47,774,283
I
Other Long-Term Assets
Net investment in finance lease - 309,881
Bond issue costs, less accumulated amortization
of$327,597 and$287,668 respectively 130,729 131,123
Total Other Long-Term Assets 130,729 441,004 1
Total Noncurrent Assets 48,723,737 48,215,287 1
TOTAL ASSETS $55,005,376 $ 52,298,565
I
(continued)
See notes to financial statements.
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FINANCIAL 1-,
1
SALINA AIRPORT AUTHORITY
I STATEMENTS OF NET ASSETS
(continued)
I LIABILITIES AND NET ASSETS December 31
2010 2009
CURRENT LIABILITIES:
1 Accounts payable-operations $ 40,502 $ 46,766
Accounts payable-capital purchases 85,815 399,522
I Accrued payroll and expenses 59,047 58,048
Accrued property tax 78,646 55,868
Accrued special assessments 12,506 16,070
I Sales Tax Payable 358
1,833,
Deferred tax revenue 1,833,239 1,849,957
Deferred maintenance agreement - 2,768
I Unearned rental income 25,597 27,310
Accrued interest 203,723 385,245
Unearned interest- financing lease - 28,102
ICurrent maturities of long-term debt 1,100,524 8,102,733
Total Current Liabilities 3,439,957 10,972,389
I
LONG-TERM LIABILITIES
1 Bonds and note payable, less current maturities 23,775,192 13,260,869
Total Liabilities 27,215,149 24,233,258
NET ASSETS
Invested in capital assets,net of related debt 23,717,291 26,410,681
IUnrestricted 4,072,936 1,654,626
Total Net Assets 27,790,227 28,065,307
ITOTAL LIABILITIES AND NET ASSETS $ 55,005,376 $ 52,298,565
I
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ISee notes to financial statements.
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FINANCIAL r' '11',1
SALINA AIRPORT AUTHORITY
STATEMENTS OF REVENUES,EXPENSES
AND CHANGES IN NET ASSETS
January 1 to December 31
2010 2009
OPERATING REVENUES I
Airfield $ 845,813 $ 667,636
Building and land rent 1,497,330 1,402,230 ,
Gain(loss)on sale of assets (86,067) -
Other revenue 48,206 28,710
Total Operating Revenues 2,305,282 2,098,576 1
OPERATING EXPENSES
Administrative 1,414,922 1,352,357
Maintenance 821,798 867,771
Total Operating Expenses 2,236,720 2,220,128 I
OPERATING INCOME BEFORE DEPRECIATION 68,562 (121,552) 1
DEPRECIATION 2,290,253 1,748,348
OPERATING LOSS (2,221,691) (1,869,900) I
NON-OPERATING INCOME AND(EXPENSES)
Mill levy 1,768,154 1,327,647
Interest on investments and financing lease 9,948 74,313
Interest expense (1,003,998) (1,014,129) 1
Total Non-Operating Income and(Expenses) 774,104 387,831
LOSS BEFORE CAPITAL CONTRIBUTIONS (1,447,587) (1,482,069)
CAPITAL CONTRIBUTIONS 1,172,507 3,770,558 1
NET ASSETS
Increase(decrease) in Net Assets (275,080) 2,288,489
1
TOTAL NET ASSETS,beginning of year 28,065,307 25,776,818
TOTAL NET ASSETS,end of year $ 27,790,227 $ 28,065,307 I
See notes to financial statements.
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24 1
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FINANCIAL Fw_Ui1i
I
SALINA AIRPORT AUTHORITY
I STATEMENTS OF CASH FLOWS
(DIRECT METHOD)
I January 1 to December 31
2010 2009
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from providing services $ 2,288,216 $ 1,974,744
I Cash paid to employees for services (825,454) (830,298)
Cash paid to suppliers for goods and services (1,136,760) (1,457,074)
INet Cash Provided(Used) in Operating Activities 326,002 (312,628)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
I Acquisition and construction of property,plant and equipment (3,471,985) (6,999,968)
Purchases in satisfaction of maintenance agreement (3,445)
Proceeds from capital grants 1,077,310 3,674,507
I Proceeds from property tax 1,768,154 1,327,647
Principal payments on debt (8,162,886) (4,739,437)
Proceeds of new borrowing 11,675,000 8,012,154
I Principal received on financing lease 144,485 133,242
Interest received on financing lease 56,204
Bond issue costs paid (39,535) (75,986)
IInterest paid on long-term debt (1,145,591) (922,725)
Net Cash Provided in Capital and Related
IFinancing Activities 1,844,952 462,193
CASH FLOWS FROM INVESTING ACTIVITIES
111 Interest received on deposits 9,948 15,550
INCREASE IN CASH 2,180,902 165,115
ICASH BALANCE-January 1 2,037,114 1,871,999
ICASH BALANCE- December 31 $ 4,218,016 $ 2,037,114
IThe Authority received capital equipment having a fair value of$96,051 in 2009 and$95,197 in 2010 This
non-cash transaction is included in CAPITAL CONTRIBUTIONS on the STATEMENT OF REVENUES,
I EXPENSES AND CHANGES IN NET ASSETS and in Equipment acquisitions in Note D but it is not
included in this STATEMENT OF CASH FLOWS.
I (continued)
See notes to financial statements.
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FINANCIAL ry z 10
1
SALINA AIRPORT AUTHORITY
STATEMENTS OF CASH FLOWS
(DIRECT METHOD)
(continued)
RECONCILIATION OF OPERATING LOSS TO NET
CASH PROVIDED(USED)BY OPERATING ACTIVITIES
January 1 to December 31 1
2010 2009
OPERATING LOSS $(2,221,691) $ (1,869,900) I
ADJUSTMENTS RECONCILING OPERATING LOSS
TO NET CASH PROVIDED(USED)BY OPERATING ACTIVITIES:
Depreciation 2,290,253 1,748,348
Basis of assets sold 279,023 -
CHANGES IN ASSETS AND LIABILITIES:
(Increase)in accounts receivable (17,066) (123,832) 1
Decrease(increase) in prepaid expense (16,891) 4,229
(Increase)in inventory (220) (2,031)
(Decrease)in accounts payable-operations (6,264) (20,792) '
Increase in accrued payroll expenses 999 7,209
Increase in accrued property tax and special assessments 19,572 8,648
(Decrease) in unearned rental income (1,713) (64,507) 1
NET CASH PROVIDED(USED)BY OPERATING ACTIVITIES $ 326,002 $ (312,628)
1
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1
See notes to financial statements.
26
FINANCIAL
1
Salina Airport Authority
NOTES TO FINANCIAL STATEMENTS
December 31,2010
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1 A. Reporting Entity
The Salina Airport Authority was established by the City of Salina, pursuant to Chapter 27, Article 3, of
the Kansas Statutes Annotated for the purpose of acquiring surplus federal government property,
specifically the former Schilling Air Force Base, located near the City of Salina. The Authority operates,
I maintains, and develops the Salina Municipal Airport and the Salina Airport Industrial Center. The
Authority is controlled by a five-member Board of Directors appointed by the Salina City Commission
and, in accordance with Governmental Accounting Standards Board (GASB) Statement No. 14, the
' Authority is considered to be a component unit of the City of Salina. The Authority is discreetly
presented in the City's comprehensive annual financial reports.
' B. Measurement Focus,Basis of Accounting and Basis of Presentation
The Authority consists of an enterprise fund. Enterprise funds are classified as proprietary funds by the
' GASB and are accounted for using a total economic resource measurement focus. The enterprise fund is
used to account for operations that are financed and operated in a manner similar to private business
enterprises. The intent of the Authority is that the costs of providing services on a continuing basis be
recovered through user fees and rents. The financial statements are prepared on the accrual basis of
accounting. Under the accrual basis, revenues are recognized as earned and expenses as incurred. It is
the Authority's policy to follow all Financial Accounting Standards Board (FASB) standards issued after
' November 30, 1989, for its proprietary activities unless those new FASB pronouncements conflict with
GASB guidance.
Revenues from airlines, fuel flowage fees, building and land rents, rental car commissions and the sale of
assets, related to economic development, are reported as operating revenues. Transactions, which are
capital, financing or investing related, are reported as non-operating revenues. All expenses related to
operating the Airport and Industrial Center are reported as operating expenses. Interest expense and
financing costs are reported as non-operating expenses.
C. Assets,Liabilities and Equity
1. Cash and Investments
' The Authority's cash and cash equivalents are considered to be cash on hand,demand deposits and short-
term investments with original maturities of three months or less from date of acquisition. The Authority
held no investments during these years.
1
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I1 4 I
FINANCIAL
I
2. Receivables
Accounts Receivable. The Authority records revenues when services are provided. All receivables are I
shown net of an allowance for uncollectibles.
Property taxes receivable. The determination of assessed valuations and the collections of property I
taxes for all political subdivisions in the State of Kansas is the responsibility of the various counties. The
office of the County Appraiser annually determines assessed valuations and the County Clerk spreads the I
annual assessment on the tax rolls. The County Treasurer is the tax collection agent for all taxing entities
within the county. In accordance with state statutes, property taxes are levied November 1 of the current
year and are a revenue source to be used to finance the budget of the ensuing year. One-half of the '
property taxes are due December 20, prior to the fiscal year for which they are budgeted, and the second
half is due the following May 10.
Collection of current year property tax by the County Treasurer is not completed, apportioned nor I
distributed to the various subdivisions until the succeeding year, such procedure being in conformity with
governing state statutes. Consequently, current year property taxes receivable are not available as a
resource that can be used to finance the current year operations of the Authority. It is the Authority's I
practice to record uncollected current year property tax as an account receivable and to record the same
amount as deferred revenue. It is not practicable to apportion delinquent taxes held by the County
Treasurer and, further, the amounts thereof are not material in relationship to the financial statements I
taken as a whole.
3. Inventories
I
The Authority maintains no significant inventory of office and maintenance supplies. These items are
expensed as purchased and no inventory is recorded in these financial statements. The Authority uses the
consumption approach in valuing inventories of Avgas sold for retail. That is, the purchase is recorded
as an asset on the cost basis and the expenditure is deferred until the inventory is consumed under the
weighted average cost method. I
4. Prepaid items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as 1
prepaid items.
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28 1
FINANCIAL
5. Capital Contributions and Net Assets
Airport Improvement Program - Certain expenditures for airport capital improvements are
significantly funded through the Federal Aviation Administration's Airport Improvement Program(AIP),
with certain matching funds of the Authority. Capital funding provided under the AIP grant program is
considered earned as the related allowable expenditures are incurred. Grants received under the AIP
program are reported in the Statement of Revenues, Expenses and Changes in Net Assets, as non-
' operating revenues and expenses as capital contributions.
Defense Reutilization Marketing Office Program - The Authority is a participant in the Defense
Reutilization Marketing Office (DRMO) program. The DRMO entity disposes of United States military
' surplus property. The property is first offered for reutilization with the Department of Defense,
transferred to other federal agencies or donated to state and local governments.
' The Authority's policy is to record fixed assets having a cost (or by implication fair value) in excess of
$1,000 at acquisition. The Authority's capitalization policy with respect to fixed assets is to expense
fixed assets costing$1,000 or less. Freight or other expenses necessary to put the asset into service equal
' to or greater than$1,000, are capitalized.
The Authority records donated assets having an original cost of$5,000 or less at $1 in order to meet the
tracking requirement and will memo in the asset file the original cost because the Authority believes the
fair value of these is less than$1,000 each.
The Authority estimates the donated items to have a value equal to 20% of cost. Items having an original
cost of less than $5,000 will be valued at $1 with memo of original cost. Items having an original cost of
more than $5,000 will be valued at 20% of original cost rounded to the nearest $1,000 with a memo to
the file of the original cost.
If the Authority receives reliable written information indicating this procedure has produced a value
' significantly different from fair value, an adjustment to that value will be made.
Donated DRMO property with a value in excess of $1,000 is reported in the Statement of Revenues,
Expenses and Changes in Net Assets, as non-operating revenues and expenses as capital contributions.
The Federal Aviation Administration, as the oversight agency, requires that the Airport track all the
contributed property and the property must be held for at least one year prior to disposition.
' 6. Capital Assets
Capital assets purchased or constructed are recorded at cost. The cost of normal maintenance and repairs
that do not add to the value of the assets or materially extend assets' lives are not included in capital
assets cost. Capital assets donated to the Authority are recorded at their estimated fair value at the date
of donation. Donated assets include property and equipment transferred to the Authority from the United
States of America, September 9, 1966 and recorded at fair value at that date. The Authority maintains a
capitalization threshold of$1,000.
29
FINANCIAL
Capital assets are depreciated using the straight-line method over the following estimated useful lives:
Assets Years
Buildings 5—50
Equipment 5 — 10
Vehicles 7— 10
Airfield 10—30
7. Compensated Absences 1
Substantially all full-time employees receive compensation for vacations, holidays, illness and certain
other qualifying absences. The number of days compensated for various categories of absence is
generally based on length of service. Liabilities relating to these absences are recognized as incurred and
included in accrued expenses. Per the Authority's compensation policy, the paid time off is not able to I
accrue beyond a one year period, therefore all such liabilities are recorded as current. The amount
accrued for such liabilities at December 31, 2010 and 2009 was$56,023 and$53,778 respectively.
Balance Balance
January 1, December 31,
2010 Net Change 2010 1
$ 53,778 $ 2,245 $ 56,023
Balance Balance
January 1, December 31,
2009 Net Change 2009 I
$ 47,350 $ 6,428 $ 53,778
I
II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Cash-Basis Law (KSA 10-1113) 1
The Authority was in compliance with this law at all times during the year. '
B. Depository Security (KSA 9-1402) 1
The Authority's funds were adequately secured at all times during the year.
I
1
30
FINANCIAL
III. DETAILED NOTES
A. Deposits
' As of December 31, 2010 and 2009, the Authority had cash and cash equivalents as listed below:
December 31,
' 2010 2009
Cash Balances
t Cash $ 4,218,016 $ 2,037,114
Less undeposited and petty cash (7,454) (2,568)
Add uncleared checks 106,435 3,021
Bank Balance 4,316,997 2,037,567
' Less FDIC Coverage 500,000 438,647
Balances Securable by Collateral $ 3,816,997 $ 1,598,920
Security Provided by Depositories $ 5,975,084 $ 9,824,013
The Authority did not have any activity in investment-type assets.
h' Y h' tYP
The Authority's policies relating to deposits and investments are governed by various Kansas Statutes
(KSA). Those statutes specify the type of deposits and investments as well as the securing of those
deposits and investments.
Interest rate risk — In accordance with Kansas Statute 12-1675, The Authority manages its exposure to
interest rate fluctuations by limiting all time investments to maturities of less than two years.
Credit risk— State law limits the amount of credit risk by restricting governments to specific investment
types as listed in KSA 12-1675. The Authority's policy is to place idle funds in certificates of deposit,
' United States obligations, and the Kansas Municipal Investment Pool (KMIP). The KMIP was rated
AAAf/S 1+ by Standard & Poor's as of March 15, 2011. The KMIP is permitted to invest in fully
collateralized certificates of deposit, certain obligations of the United States, certain repurchase/reverse
' repurchase agreements, and other types of investments. Maturity information released by the KMIP at
March 31, 2011, showed that the investment pool consisted of investment with a maturity date of 365
days or less.
' Custodial credit risk—The Custodial credit risk for deposits is the risk that, in the event of the failure of
a depository financial institution, a government will not be able to recover deposits or will not be able to
recover collateral securities that are in the possession of an outside party. The custodial credit risk for
investments is the risk that, in the event of the failure of the counterparty to a transaction, a government
will not be able to recover the value of investment or collateral securities that are in the possession of an
outside party. Kansas Statutes 9-1402 and 9-1405 require that governments obtain security for all
deposits. The Authority manages its custodial credit risk by requiring the financial institutions to grant a
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security interest in securities held by third-party custodial banks. Monies in the Kansas Municipal
Investment Pool are not required to have pledged securities.
Concentration of credit risk — This is the risk of loss attributed to the magnitude of a government's
investment in a single issuer. The Authority manages this risk by placing funds with financial 1
institutions only after contacting all eligible institutions in the taxing area and monies in the Kansas
Municipal Investment Pool are diverse according to the policies of the investment pool.
B. Receivables
I
Receivables as of year-end, including the applicable allowance for uncollectible accounts, are as follows: '
December 31,
2010 2009
Receivables
Accounts $ 211,208 $ 193,854
Less: allowance for uncollectibles (984) (696)
I
210,224 193,158
Taxes 1,833,239 1,849,957
1
Totals $ 2,043,463 $ 2,043,115
C. Net Investment in Financin g Lease I
Net investment in financing lease is as follows:
I
December 31,
2010 2009
I
Total lease payments receivable $ - $ 348,892
Less: unearned income - (39,011)
Net investment in financing lease $ - $ 309,881 Activity in net investment in financing leases was as follows: I
December 31, I
2010 2009
Beginning Balance $ 309,881 $ 443,123 I
Less: Collected principal (144,485) (133,242)
Less option price exercised on 12-31-10 (165,396)
Ending Balance $ - $ 309,881
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ID. Capital Assets
The following is a summary of the changes in capital assets during the current and preceding year:
I
I Balance Balance
January 1, December 31,
2010 Additions Dispositions Reclassify 2010
I Capital Assets
Non-Depreciable
Land $ 10,045,937 $ 466,789 $ (144,289) $ 81,065 $ 10,449,502
IConstruction in progress 11,225,092 355,919 - (10,375,632) 1,205,379
Total Non-Depreciable 21,271,029 822,708 (144,289) (10,294,567) 11,654,881
IDepreciable
Buildings and improvements 15,444,301 579,662 - 6,344,874 22,368,837
I Airfield and improvements 29,537,578 1,584,946 - $ 3,948,141 35,070,665
Equipment 3,407,089 266,159 (10,360) 1,551 3,664,439
I Total Depreciable 48,388,968 2,430,767 (10,360) 10,294,566 61,103,941
Total Non-Depreciable &
Depreciable $ 69,659,997 $ 3,253,475 $ (154,649) $ - $ 72,758,822
IAccumulated depreciation
I Buildings and improvements $ (5,624,644) (863,093)
(14,316,331) (1,169,637) - _ $ (6,487,737)
Airfield and improvements , (15,485,968)
Equipment (1,944,739) (257,523) 10,153 - (2,192,109)
Total Accumulated
Depreciation (21,885,714) (2,290,253) 10,153 - (24,165,814)
ITotal Capital Assets $ 47,774,283 $ 963,222 $ (144,496) $ - $ 48,593,008
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Balance Balance
January 1, December 31,
2009 Additions Dispositions Reclassify 2009
Capital Assets
Non-Depreciable
Land $ 9,675,911 $ 366,106 $ - $ 3,920 $ 10,045,937
Construction in progress 8,821,320 2,584,100 - (180,328) 11,225,092 I
Total Non-Depreciable 18,497,231 2,950,206 - (176,408) 21,271,029 '
Depreciable
Buildings and improvements 14,276,411 1,088,374 - 79,516 15,444,301 I
Airfield and improvements 26,681,124 2,759,561 - 96,893 29,537,578
Equipment 3,245,380 161,709 - - 3,407,089
Total Depreciable 44,202,915 4,009,644 - 176,409 48,388,968
Total Non-Depreciable &
Depreciable $ 62,700,146 $ 6,959,850 $ - $ - $ 69,659,997
Accumulated depreciation I
Buildings and improvements $ (5,062,636) (562,008) - - $ (5,624,644)
Airfield and improvements (13,379,144) (937,187) - - (14,316,331)
Equipment (1,695,586) (249,153) - - (1,944,739) I
Total Accumulated
Depreciation (20,137,366) (1,748,348) - - (21,885,714)
Total Capital Assets $ 42,562,780 $ 5,211,502 $ - $ - $ 47,774,283 I
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IE. Long-Term Liabilities
IFollowing is a summary of changes in long-term liabilities during the current and preceding years:
I Current
M
Balance Balance
Maturities
January 1, December 31, December 31,
I 2010 Additions Reductions 2010 2010
Long-term Liabilities
General obligation bonds $ 13,782,154 $ - $ 990,000 $ 12,792,154 $ 1,040,000
I Financing Lease payable 323,500 - 37,704 285,796 40,238
Special assessment debt 207,948 62,649 145,299 20,286
General obligation
Itemporary notes 7,050,000 11,652,467 7,050,000 11,652,467 -
Total Long-Term Liabilities $21,363,602 $11,652,467 $ 8,140,353 $ 24,875,716 $ 1,100,524
I Current Maturities (8,102,733) (1,100,524)
Long Term Liability Net $ 13,260,869 $ 23,775,192
I
ICurrent
Balance Balance Maturities
IJanuary 1, December 31, December 31,
2009 Additions Reductions 2009 2009
I Long-term Liabilities
General obligation bonds $ 6,525,000 $ 8,012,154 $ 755,000 $ 13,782,154 $ 990,000
Financing Lease payable 358,831 - 35,331 323,500 37,705
I Special assessment debt 232,054 - 24,106 207,948 25,028
General obligation
temporary notes 10,975,000 - _ 3,925,000 7,050,000 7,050,000
ITotal Long-Term Liabilities $ 18,090,885 $ 8,012,154 $4,739,437 $ 21,363,602 $ 8,102,733
Current Maturities (814,437) (8,102,733)
Long Term Liability Net $ 17,276,448 $ 13,260,869
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The following is a detailed listing of the Authority's long-term debt including general obligation bonds, I
temporary notes, financing lease and special assessment debt at December 31, 2010:
Original Issue Interest Rates Bonds Outstanding I
General Obligation Bonds
General Obligation 2001-A,due 2012 1,385,000 4.45% to 5.60% 340,000 I
General Obligation 2002-A,due 2012 2,635,000 2.45% to 3.70% 600,000
General Obligation 2005-A,due 2020 3,635,000 4.75% to 5.25% 3,180,000
General Obligation 2007-A,due 2022 1,005,000 4.60% to 6.00% 850,000 I
General Obligation 2009-A,due 2029 2,025,000 4.20% to 4.25% 1,932,154
General Obligation 2009-B,due 2026 6,080,000 3.00% to 5.50% 5,890,000
Total General Obligation Debt 12,792,154
General Obligation Temporary Notes I
2010-1,due 2012 11,675,000 1.075% 11,652,467
Financing Lease, due December 2016 425,000 6.609% 285,796
Special Assessment Debt '
Airport Industrial Center,due 2016 565,235 3.79% 123,392
Hangar 600 Sanitary Sewer,due 2021 27,599 4.47% 21,907
Total Special Assessment Debt 145,299
Total Long Term Debt $ 24,875,716 I
Interest Expense in 2010 is as follows: I
General Obligation Bonds 674,525
Special Assessment Debt 6,407
Financing Lease 19,937
Temporary Notes 263,200
964,069
Add: Amortization of bond costs 39,929 I
Total Debt Interest Expense 1,003,998 1
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Annual debt service requirements to maturity for general obligation bonds to be paid with tax levies and
Irental revenues:
I Bonds
Year Outstanding Interest Due Total
2011 1,040,000 592,272 1,632,272
2012 1,090,000 548,424 1,638,424
2013 635,000 501,950 1,136,950
2014 665,000 475,503 1,140,503
I 2015 695,000 447,280 1,142,280
2016-2020 3,995,000 1,742,003 5,737,003
2021-2025 2,475,000 894,080 3,369,080
I2026-2029 2,290,000 251,242 2,541,242
$ 12,885,000 $ 5,452,754 $ 18,337,754
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I Annual debt service requirements for General Obligation Temporary Notes payable from general
obligation bonds and capitalized interest funds:
I Notes
Year Outstanding Interest Due Total
2012 11,675,000 171,298 11,846,298
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IAnnual debt service requirements for Financing Lease payable rental revenues:
IYear Principal Due Interest Due Total
2011 40,238 18,234 58,472
I 2012 42,941 15,531 58,472
2013 45,826 12,646 58,472
2014 48,905 9,567 58,472
I2015 52,190 6,282 58,472
2016 55,696 2,776 58,472
$ 285,796 $ 65,036 $ 350,832
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Annual debt service requirement to maturity for Special Assessment Debt to be paid from rental revenue:
I
Year Loan Principal Interest Due Total
2011 20,286 5,656 25,942
2012 21,066 4,876 25,942
2013 21,876 4,067 25,943
2014 22,717 3,226 25,943
2015 23,590 2,352 25,942
2016-2020 33,310 2,891 36,201
2021-2025 2,454 110 2,564
1
$ 145,299 $ 23,178 $ 168,477
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F. Capital Contributions and Net Assets
Since its inception, the Authority has received capital contributions through Federal and State grants as
follows:
I
Inception to
Date 2010 2009
Federal $ 26,587,953 $710,275 $ 3,120,218
State 1,515,610 371,615 500,000
Total $27,393,288 $3,620,218 $ 3,620,218 I
I
The Authority has designated $90,000 to be used as an insurance increase reserve or to accelerate future
debt service payments. As of December 31,2010, the reserve had been funded but not used.
IV. OTHER INFORMATION
A. Defined Benefit Pension Plan
Plan description — The Authority participates in the Kansas Public Employees Retirement System 1
(KPERS). The plan is a cost-sharing multiple-employer defined benefit pension plan as provided by
Kansas statutes (KSA 74-4901 et seq). KPERS provides retirement benefits, life insurance, disability I
income benefits and death benefits. Kansas law establishes and amends benefit provisions. KPERS il
issues a publicly available financial report that includes financial statements and required supplementary
information. Those reports may be obtained by writing to KPERS (611 S. Kansas Avenue, Suite 100, I
Topeka, Kansas 66603-3803)or by calling 1 (888)275-5737
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1 Funding policy — KSA 74-4919 establishes the KPERS member-employee contribution rate at 4% for
Tier 1 and 6% for Tier 2 employees of covered salary. The employer collects and remits member-
employee contributions according to the provisions of section 414(h) of the Internal Revenue Code.
State law provides that the employer contribution rates be determined annually based on the results of an
annual actuarial valuation. KPERS is funded on an actuarial reserve basis. State law sets a limitation on
annual increases in the employer contribution rates. The KPERS employer rate established for calendar
' year 2010 was 7.14%. The Authority employer contributions to KPERS for the years ending December
31, 2010, 2009 and 2008 were $65,284 $52,641 and $45,687 respectively, equal to the required
contributions for each year.
B. Deferred Compensation Plan
' The Authority offers its employees a deferred compensation plan ("Plan") created in accordance with
Internal Revenue Code Section 457. The Plan, available to all Authority employees, permits them to
defer a portion of their salary until future years. The deferred compensation is not available to
1 employees until termination, retirement, death, or unforeseeable emergency. Plan assets are transferred
to a plan agent in a custodial trust and are not available to the claims of the Authority's general creditors.
C. Flexible Benefit Plan (I.R.C. Section 125)
The Authority has adopted by resolution a salary-reduction flexible benefit plan ("Plan") under Section
1 125 of the Internal Revenue Code. All Authority employees working more than 20 hours per week are
eligible to participate in the Plan beginning after thirty days of employment. Each participant may elect
to reduce his or her salary to purchase benefits offered through the Plan. Benefits offered through the
1 Plan include various insurance and disability benefits.
D. Risk Management
1 The Authority is exposed to various levels of loss related to torts; theft of, damage to, and destruction of
assets; errors and omissions; injuries to employees; and natural disasters.
' There has been no significant reduction in the Authority's insurance coverage from the previous year. In
addition, there have not been settlements in excess of the Authority's coverage in any of the prior three
1 years.
E. Contingent Liabilities
The Authority receives significant financial assistance from numerous federal and state governmental
agencies in the form of grants and state pass-through aid. The disbursement of funds received under
' these programs generally requires compliance with terms and conditions specified in the grant
agreements and are subject to audit. Any disallowed claims resulting from such audits could become a
liability of the Authority. However, in the opinion of management, any such disallowed claims would
not have a material effect on any of the financial statements of the Authority at December 31, 2010.
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F. Other postemployment benefits (OPEB)
As a component unit of the City of Salina, the Authority participates in the City's defined benefit I
healthcare plan that is administered by the City. The Employee Benefit Plan (the Plan)provides medical
and dental benefits to eligible early retirees and their spouses. KSA 12-5040 requires all local
governmental entities in the state that provide a group health care plan to make participation available to
all retirees and dependents until the retiree reaches the age of 65 years. No separate financial report is
issued for the Plan. As a component unit of the primary government, the Authority is not required to I
make contributions to the plan.
The OPEB cost,actuarial valuations of the ongoing plan and net OPEB obligations for the Authority as a
sub-group of the plan, are calculated and recorded in the City's CAFR.
G. Environmental Matter ,
The U.S. Department of Defense transferred property located at the former Schilling Air Force Base to
the Authority on or about September 9, 1966. The property is now known to contain areas of extensive I
soil and groundwater contamination, as a result of the use and disposal of chlorinated solvents during
military operations at the former base during its period of active military duty from 1942 to 1965.
The U.S. Department of Defense is responsible for the investigation and remediation of contamination
caused by military activities at current and former military bases. The U.S. Army Corps of Engineers
(USACE) is the lead agency for the Department at formerly used defense sites. The Corps has I
investigated the soil and groundwater contamination at the former base under the regulatory oversight of
the U.S. Environmental Protection Agency and the Kansas Department of Health and Environment. The
former base is not designated as a National Priority List Superfund site, but investigation and 1
remediation is required to be in compliance with the Comprehensive Environmental Response,
Compensation and Liability Act.
Potential liability for contamination under the Act extends broadly to parties associated with the release I
or presence of hazardous substances, including not only those entities involved with contaminant use and
disposal, but in some cases other current and former owners and operators of contaminated sites. As a
current owner of extensive amounts of property at the former base, the Authority is potentially liable
under the act although the Authority believes that it has defenses to such liability.
Based on presently known information, the Authority has determined that while a possible liability I
exists, it is not probable and at this time no reasonable estimate of the possible liability can be made.
Therefore, no liability relating to that matter has been recorded. The Authority is under no I
administrative orders from the U.S. Environmental Protection Agency or the Kansas Department of
Health and Environment. The Authority is considered to be a Potentially Responsible Party for the
former base site, primarily due to its status as a property owner. The Salina Airport Authority, City of t
Salina, Unified School District No. 305 and the Kansas Board of Regents (Kansas State University at
Salina) collectively own over 90% of the nearly 4,000 acres of the former Schilling Air Force Base
property. I
Beginning in August 2007, the four local public entities including the Salina Airport Authority, the City
of Salina, the Salina School District and Kansas State University at Salina initiated negotiations with the
U.S. Federal Government. The negotiation objectives include transferring the responsibility for
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FINANCIAL
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completing the cleanup from the USACE to the Salina Public Entities. The local objective is to reach a
' settlement agreement with the United States of America that provides the Salina Public Entities sufficient
funds to complete cleanup operations over a 30-year period.
' During calendar year 2008, the Salina Public Entities prepared a detailed Cost to Complete Estimate
(CTC). The CTC preparation included consultation with the EPA and KDHE. The Salina Public
Entities' CTC was completed in June of 2008 and submitted to the USACE.
Subsequently,on January 23, 2009, the Salina Public Entities delivered a demand letter to the USACE.
The letter demands that settlement negotiations begin immediately with the U.S. Department of Justice.
' On May 14,2009 the Authority was notified that the USACE referred the former SAFB demand letter to
the U.S. Department of Justice on May 12, 2009.
' The Salina Public Entities delivered on or about May 10,2010, a settlement offer and a draft of a lawsuit
complaint to the attorney for the U.S. Department of Justice. The Salina Public Entities planned to file
suit against the U.S. if the matter was not settled by the end of May 2010. The Salina Public Entities do
' not intend to cut off settlement negotiations by the filing of suit, and this has been communicated to the
U.S. No remedial action plan or record of decision has been adopted by EPA or KDHE.
On or about May 27, 2010, the Salina Public Entities filed their Complaint against the United States of
America,the United States Department of Defense and Secretary of Defense, Robert M. Gates, in his
official capacity(collectively, "Defendants"). On or about September 22, 2010, the Salina Public
' Entities filed their First Amended Complaint in four counts.
On or about October 6, 2010, Defendants filed their motion to dismiss and to strike. On or about March
25, 2011, Judge Murguia entered his Memorandum and Order. The Judge granted the Defendants'
Imotion to dismiss Counts I and II(citizen suit claims) for lack of subject matter jurisdiction. He also
granted the Defendants' motion to dismiss the Salina Public Entities' request for attorney fees,with the
exception of non-litigation attorney fees. He denied the Defendants' motion to strike the Salina Public
Entities' allegations of a conflict of interest. The Salina Public Entities' claims under Counts II and IV
for response costs under CERCLA 9607(a)are not affected by the Judge's rulings. The Salina Public
Entities disagree with most of the Judge's rulings and plan to take an interlocutory appeal to the Tenth
' Circuit to contest the rulings. Counsel for Defendants has suggested a mediation to discuss settlement,
and the Salina Public Entities plan to pursue such mediation.
' In the Stipulation by Plaintiffs and Defendants filed in U.S. District Court on June 17, 2011, the U.S., on
behalf of the Corps, admitted that: "At some point or points between 1942 and 1965, during the time the
United States owned or operated the Site, military personnel of the United States used, disposed of and
' caused the release of hazardous substances at the Site." This is a significant item for the Salina Public
Entities as it is the first time since the U.S., on behalf of the Corps,began its investigation in 1991 that
the federal government has provided such an admission.
H. Rental Income Under Operating Leases
1 A significant portion of the operating revenue of the Authority is generated through the leasing of
airport and building space to airport fixed base operators and others on a fixed fee as well as a contingent
rental basis. Ownership risks are retained by the Authority, and accordingly, such leases are treated as
operating leases.
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The following is a schedule of minimum future rentals on non-cancellable operating leases to be received I
in each of the next five years and thereafter:
I
Years Ende d
December 31
2011 $ 991,813
2012 768,131
2013 632,160 ,
2014 632,160
2015 527,182
Later Years 874,126
Total $ 4,425,572
1
I. Major Customers
The Authority receives significant operating and financing lease revenue from Hawker Beechcraft
Corporation, Kansas State University-Salina, Flower Aviation, America Jet, CAV Aerospace, and the
Kansas National Guard. Rent from these six tenants equals 64% of operating and capital lease revenue
for the year ended December 31, 2010.
J. Non-Operating Income and (Expense)
Net non-operating income and expense consisted of the following for the years ended December 31, 1
2010 and 2009:
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December 31,
I 2010 2009
Mill Levy $ 1,768,154 $ 1,327,647
Interest and investment income
IFinancing lease - 58,763
Other interest 9,948 15,550
ITotal $ 1,778,102 $ 1,401,960
IInterest expense
General obligation bonds $ (674,525) $ (481,513)
I Special assessment debt (6,407) (8,964)
Financing lease (19,937) (22,363)
Temporary notes (263,200) (474,539)
I Amortization of bond issue costs (39,929) (26,750)
Total (1,003,998) (1,014,129)
INet non-operating income $ 774,104 $ 387,831
IK. Commitment Under Operating Lease
The Authority has entered into a certain non-cancellable operating lease agreement which will expire in
I 2013, for the rental of office equipment. During both 2009 and 2010, the Authority paid $11,400 in
rentals. Minimum rentals, on an annual basis are as follows:
IIYears Ended
December 31
I 2011 11,400
2012 11,400
2013 1,900
ITotal $ 24,700
iL. Subsequent Events
I The Salina Airport Authority's management has evaluated events and transactions occurring after
December 31,2010 through July 11,2011. The aforementioned date represents the date the financial
statements were available to be issued.
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More than 30o people gathered at the Salina Municipal Airport's Hangar 600 on Dec 4 to welcome 01'
i. St. Nick to Salina and vie for their spot on the Nice List.
Among the candy canes and Christmas folk aircraft displays including a Blackhawk, Hornet, Pilatus,
Husky, Luscombe and Skyhawk were available for good girls and boys to try out how it feels to sit in the
_j pilot's seat. Aviators from the area flew in to check out the event as well,with easy parking right outside
the hangar doors.
_i Santa's reindeer were resting up for the big day, so Santa arrived in true fashion in his Christmas plane
a shiny red and silver Luscombe,"Santa One,"piloted by Capt. Elvin T. Elf. Children of all ages enjoyed
free milk, cookies and cocoa before greeting the Jolly Old Elf and getting their photos with him next to
a K-State Skyhawk.
1 Christmas came early for four lucky winners of round trip flights on SeaPort Airlines.
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SUPPLEMENTAL F. .�;, ;
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SALINA AIRPORT AUTHORITY
SCHEDULES OF REVENUES,EXPENSES AND CHANGES I
IN NET ASSETS
January 1 to December 31
2010 2009
OPERATING REVENUES
Airfield
Fuel flowage fees $ 191,027 $ 165,443
Hangar rent 564,443 388,781
Landing fees 4,885 8,446
Ramp rent 85,458 104,966
Total Airfield 845,813 667,636
Building and land rent 1
Agri land rent 56,337 58,788
Building rents 1,187,135 1,097,386
1
Land rents 245,915 237,695
Tank rent 7,943 8,361
Total Building and Land Rents 1,497,330 1,402,230 1
Loss on sale of assets (86,067) -
Other revenue
ARFF training 6,390 6,650
Commissions 14,847 17,603
Sale of Avgas 22,121 3,364
Less Cost of Avgas (21,171) (3,146)
Other income 26,019 4,239
Total Other Revenue 48,206 28,710
Total Operating Revenue 2,305,282.00 2 098 576.00
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P g $ $ >
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(continued)
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SUPPLEMENTAL r- ; � li
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SALINA AIRPORT AUTHORITY
I SCHEDULES OF REVENUES,EXPENSES AND CHANGES
IN NET ASSETS
January 1 to December 31
I 2010 2009
OPERATING EXPENSES
Administrative
I A/E, consultants,brokers 58,211 61,432
Airport promotion 56,933 27,818
Bad debt expense 5,000 -
I Computer network administration 17,641 14,630
Dues and subscriptions 29,012 34,374
Employee retirement 65,284 52,641
IFICA and medicare 61,480 61,772
Industrial development 30,000 30,000
I Insurance,property 139,853 160,069
Insurance, medical 210,982 205,017
Kansas unemployment tax 1,053 581
I Legal and accounting 38,953 34,059
Office salaries 443,549 443,768
Office supplies 13,562 9,082
I Other administrative
Postage 15,226 14,459
3,611 3,803
Property taxes 177,864 154,500
I Special events 5,103 3,427
Telephone 19,979 20,073
Travel and meetings 21,626 20,852
ITotal Administrative Expenses $ 1,414,922.00 $ 1,352,357.34
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SUPPLEMENTAL ri ,in I
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SALINA AIRPORT AUTHORITY
SCHEDULES OF REVENUES, EXPENSES AND CHANGES I
IN NET ASSETS
(continued)
January 1 to December 31
2010 2009
MAINTENANCE EXPENSES
Airfield maintenance 16,532 50,518
Airport security (1,798) (988)
Building maintenance 53,637 48,474
Equipment fuel and repairs 92,226 105,174 I
Fire services 28,079 31,084
Grounds maintenance 1,677 2,298
Maintenance salaries 381,905 393,739
Other maintenance expenses 28,908 22,786
Snow removal expense 10,685 15,105
Utilities 209,947 199,581 I
Total Maintenance Expenses 821,798 867,771
Total Operating Expenses 2,236,720 2,220,128 I
OPERATING INCOME (LOSS) BEFORE DEPRECIATION 68,562 (121,552)
1
DEPRECIATION EXPENSE 2,290,253 1,748,348
OPERATING LOSS (2,221,691) (1,869,900) 1
NON-OPERATING INCOME (EXPENSE)
III
Mill levy 1,768,154 1,327,647
Interest income-capital lease - 58,763
Interest income 9,948 15,550
Interest expense (964,069) (987,379)
Amortization of bond costs (39,929) (26,750)
Total Non-Operating Income (Expense) 774,104 387,831
LOSS BEFORE CAPITAL CONTRIBUTION (1,447,587) (1,482,069)
I
CAPITAL CONTRIBUTIONS 1,172,507 3,770,558
INCREASE (DECREASE) IN NET ASSETS (275,080) 2,288,489 1
NET ASSETS,January 1 28,065,307 25,776,818
NET ASSETS, December 31 $27,790,227 $28,065,307
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S UPPLEMENTAL FY 2t! iG
SALINA AIRPORT AUTHORITY
CAPITAL EXPENDITURES
1 January 1 to December 31
2010
AIRPORT IMPROVEMENTS
I AIP 28 -Taxiway A rehabilitation phase 1 $ 121,910
AIP 29 -Taxiway A rehabilitation phase 2 101,380
AIP 31 -Taxiway A rehabilitation phase 4 495,065
I AIP 32 -North GA connector 54,051
Perimeter fencing- B 1080 8,185
Apron improvements- H600 2,805
ILighting improvements- self fuel station 1,124
Taxiway A (N 4800')pavement rehabilitation 800,426
Total Airport Improvements 1,584,946
IBUILDINGS
B1080 electrical improvements 6,875
IB412 improvements 178,123
B1105 remodel 5,680
B730 roof restoration 5,520
IB703 roof restoration 10,465
H600 improvements 2,080
H606 rehabilitation 87,618
111 B730 KSUS Aero Center improvements 28,854
Pumphouse 305 improvements 7,156
B120 HVAC improvements 88,230
IB120 Terminal bldg. exterior paint and refurbish 14,000
Terminal bldg. monument sign 28,767
I SeaPort Airline signage 2,477
B520 Unit G remodel 9,308
B520 Unit A HVAC upgrades 2,695
I B120 Terminal bldg. remodel 52,265
H703 aircraft lay service area 13,070
RSMS parking lot construction 15,000
I Airport road bldgs. water service line 1,461
B520 Unit G Fence/equipment storage yard 3,971
H600 & H606 Fencing 16,047
ITotal Buildings 579,662
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SUPPLEMENTAL F,i,;T ) 11.1
SALINA AIRPORT AUTHORITY I
CAPITAL EXPENDITURES
(continued) '
January 1 to December 31
2010 I
EQUIPMENT
P-19 ARFF Truck $ 28,077
P-18 Water supply tanker 37,965
Thermal imagining fire helmet camerra 4,500
HP mini computer 718
SBS computer server 14,359
HP business desktop computer 1,980
AutoCad 2010 3,624
Adobe Acrobat 661
HP Engineering workstation computer 3,337
Apple Ipad 1,109 1
Adobe Creative Suite V5.0 2,519
Rotary sweeper 15,082
Platform trailer 1,500
2 John Deere Z-track mowers 26,150
Snowplow 20,850
Chevy step van 8,202
2010 ARFF rapid intervention vehicle 95,526
Total Equipment 266,159 1
CONSTRUCTION IN PROGRESS
ARFF Station A/E design 101,287
North ramp redevelopment design 134,766
Precision Approach(PAPI) design 6,970
Term, public viewing area, &museum development 36,571
GA hangars(phase I design) 76,325
Total Construction in Progress 355,919
LAND
Foreign Trade Zone development 3,812
Bldg. 808, 814 and 816 demolition 52,885
Environment- former Schilling Air Force Base (SAFB) 410,092
Total Land 466,789
TOTAL CAPITAL EXPENDITURES $ 3,253,475
50 '
SUPPLEMENTAL F r z 1 io
SALINA AIRPORT AUTHORITY
i GENERAL OBLIGATION IMPROVEMENT BONDS
SERIES 2001 - A
December 31, 2010
' Date of issue: October 31, 2001
Amount of issue: $ 1,385,000
' Interest rate: 4.45%to 5.60%
Maturity date: September 1, 2012
Principal paid: $ 1,045,000
Outstanding balance: $ 340,000
Schedule of Bond Interest and Principal Payments
Due in Bond Bond
1 Year Interest Principal
2011 18,867 165,000
2012 9,800 175,000
$ 28,667 $ 340,000
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SUPPLEMENTAL FY 2010
I
SALINA AIRPORT AUTHORITY
GENERAL OBLIGATION IMPROVEMENT BONDS
SERIES 2002 - A
December 31, 2010
Date of issue: August 29,2002
Amount of issue: $ 2,635,000
Interest rate: 2.45%to 3.70%
Maturity date: September 1,2012
Principal paid: $2,035,000
Outstanding balance: $ 600,000
1
Schedule of Bond Interest and Principal Payments
Due in Bond Bond
Year Interest Principal
2011 21,905 295,000
2012 11,285 305,000 I
$ 33,190 $ 600,000
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SUPPLEMENTAL F l ,;,,l ,
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SALINA AIRPORT AUTHORITY
GENERAL OBLIGATION IMPROVEMENT BONDS
SERIES 2005 -A
December 31, 2010
' Date of issue: August 1, 2005
Amount of issue: $ 3,635,000
4.75% to 5.25%
Maturity date: September 1,2020
' Principal paid: $ 455,000
Outstanding balance: $ 3,180,000
Schedule of Bond Interest and Principal Payments
Due in Bond Bond
1 Year Interest Principal
2011 160,787 245,000
1 2012 147,926 260,000
2013 134,275 275,000
2014 119,838 290,000
2015 104,612 305,000
2016-2020 278,750 1,805,000
' $ 946,188 $ 3,180,000
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SUPPLEMENTAL FY 2010
I
SALINA AIRPORT AUTHORITY
GENERAL OBLIGATION IMPROVEMENT BONDS
SERIES 2007-A
December 31,2010
Date of issue: December 15, 2007
Amount of issue: $ 1,005,000
Interest rate: 4.6% to 6.0% I
Maturity date: September 1,2022
Principal paid: $ 155,000
Outstanding balance: $ 850,000
Schedule of Bond Interest and Principal Payments
Due in Bond Bond
Year Interest Principal
I
2011 43,240 50,000
2012 40,490 55,000
1
2013 37,603 55,000
2014 34,743 60,000
2015 31,983 65,000
1
2016-2022 124,157 565,000
$312,216 $ 850,000 I
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54 III
SUPPLEMENTAL 1
1
SALINA AIRPORT AUTHORITY
' GENERAL OBLIGATION BONDS
SERIES 2009-A
December 31,2010
Date of issue: June 1,2009
Amount of issue: $ 2,025,000
1 Interest rate:
4.31%
Maturity date: September 1, 2029
Principal paid: $ -
Outstanding balance: $ 2,025,000
Schedule of Bond Interest and Principal Payments
1 Due in Bond Bond
Year Interest Principal
1 2011 85,648 -
1 2012 85,648
2013 85,648
2014 85,648 -
1 2015 85,648
1,0
2016-2029 1,093,142 2,025,000
$ 1,521,380 $ 2,025,000
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SUPPLEMENTAL FY 2010
I
SALINA AIRPORT AUTHORITY
TAXABLE GENERAL OBLIGATION BONDS
SERIES 2009-B
December 31,2010
Date of issue: June 1, 2009
Amount of issue: $ 6,080,000
Interest rate: 4.998%
Maturity date: September 1, 2026
Principal paid: $ 190,000
Outstanding balance: $ 5,890,000 I
Schedule of Bond Interest and Principal Payments
Due in Bond Bond
Year Interest Principal
2011 261,825 285,000
2012 253,275 295,000
2013 244,425 305,000
2014 235,275 315,000
2015 225,038 325,000
2016-2026 1,391,275 4,365,000
$ 2,611,113 $ 5,890,000
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SUPPLEMENTAL
1
SALINA AIRPORT AUTHORITY
' TAXABLE GENERAL OBLIGATION TEMPORARY NOTES
SERIES 2010-1
December 31, 2010
Date of issue: August 15,2010
Amount of issue: $ 11,675,000
' Interest rate: 1.075%
Maturity date: March 01,2012
Principal paid: $ -
' Outstanding balance: $ 11,675,000
Schedule of Bond Interest and Principal Payments
' Due in Bond Bond
Year Interest Principal
' 2012 171,298 11,675,000
' $ 171,298 $ 11,675,000
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SUPPLEMENTAL
1
SALINA AIRPORT AUTHORITY
SPECIAL ASSESSMENT DEBT-STREET AND UTILITY IMPROVEMENT
Airport Industrial Center Subdivision
December 31, 2010
Date of loan: September 11, 2002
Amount of loan: $ 306,582
Interest rate: 3.79%
Maturity date: October 1,2016
Principal paid: $ 183,190
Outstanding balance: $ 123,392
Schedule of Loan Interest and Principal Payments t
Due in Loan Loan
Year Interest Principal '
2011 4,677 18,701
2012 3,968 19,410 '
2013 3,232 20,146
2014 2,469 20,909
2015 1,676 21,702
2016 854 22,524
$ 16,876 $ 123,392
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SUPPLEMENTAL FY 2010
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SALINA AIRPORT AUTHORITY
I SPECIAL ASSESSMENT DEBT-SANITARY SEWER EXTENSION
HANGAR 600
December 31, 2010
IDate of loan: April 23, 2007
Amount of loan: $ 27,599
IInterest rate: 4.47%
Maturity date: December 20, 2021
I Principal paid: $ 5,692
Outstanding balance: $ 21,907
ISchedule of Loan Interest and Principal Payments
Due in Loan Loan
IYear Interest Principal
2011 979 1,585
I2012 908 1,656
2013 834 1,730
2014 757 1,808
I2015 676 1,888
2016
I2,147 13,240
$ 6,302 $ 21,907
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SUPPLEMENTAL FY 2010
SALINA AIRPORT AUTHORITY
FINANCING LEASE PAYABLE
December 31,2010
Date of loan: September 28,2006
Amount of loan: $ 425,000
Interest rate: 6.609%
Maturity date: September 1, 2016 '
Principal paid: $ 139,204
Outstanding balance: $ 285,796
Schedule of Loan Interest and Principal Payments
Due in Loan Loan
Year Interest Principal
2011 18,234 40,238
2012 15,531 42,941
2013 12,646 45,826
2014 9,567 48,905
2015 6,282 52,190
2016 2,776 55,696
$ 65,036 $ 285,796
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SUPPLEMENTAL FY 21)111
ISALINA AIRPORT AUTHORITY
INSURANCE IN FORCE
I December 31, 2010
Amount of
Insurance Policy Type of Coverage Coverage
IEmployers Insurance of Wausau Workmen's Compensation
on behalf of USAIG and Employer's Liability $ 500,000
IPol. #WCK-Z91-547496-010
National Union Fire Ins.Co.of Bodily Injury&Liability $ 1,000,000
Pittsburgh,PA Hangar Keepers $ 500,000
IPol. #AP3229456-16
Travelers
I Deluxe Property-Buildings, business personal
property and equipment breakdown(including
Pol.KTK-630-3957P728-IND-10 boiler and machinery) $30,088,833
IBusiness Income $ 2,446,253
Pol.#BA-4762R341-10-PUB Vehicles&Equipment
I
Liability $ 1,000,000
Medical payments $ 5,000
Uninsured motorists $ 1,000,000
IPol. KTK-630-3957P728-IND-10 Inland Marine-Equipment $ 2,482,416
I ITT Hartford Crime Policy
Pol. #37BPEAG4896 Employee theft-per employee $ 100,000
Houston Casualty Company Public Officials and Employment Practices Liability
Pol. H710-30254 Each claim $ 2,000,000
Aggregate limit $ 2,000,000
IGreat American Alliance Ins.Co. Kansas Underground Storage Tank Liability
Pol.#KST 788-29-33-16 Environmental Incident $ 1,000,000
Annual aggregate $ 1,000,000
Limit of defense $ 100,000
I American Safety Insurance
Pol.#179E01178-09-02 Storage Tank Pollution Liability Coverage
Per confirmed release limit $ 1,000,000
Policy aggregate limit $ 1,000,000
Limit of defence $ 250,000
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(THIS PAGE INTENTIONALLY LEFT BLANK)
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St. atistical
.� -_
1 . _
- rte' }
:+, \ - ,. , .,
4r):.0: r - : r' - - • ' -
:.------..__ • 101 i . _
r
-----.:,-: ... 70 0 ,,
., 1. _
- A sight seldom seen since the 1940's, the Wings of Freedom tour stopped in Salina with circa WWII
- aircraft including the Boeing B-17 Flying Fortress "Nine 0 Nine" Heavy Bomber, Consolidated B-24
4 Liberator"Witchcraft" Heavy Bomber and P-51 Mustang,July 12 through 14.
- . The Wings of Freedom Tour travels the nation, a flying tribute to the flight crews who flew them, the
' ground crews who maintained them, the workers who built them,the soldiers, sailors and airmen they
helped protect, and the citizens and families that share the freedom that they helped preserve.
This is a rare opportunity to visit, explore, and learn more about these unique and rare treasures of
aviation history. The B-17 is one of only nine in flying condition in the United States. The B-24J and
' Dual Control P-51C Mustang are the sole remaining examples of their type flying in the world.
ti I :\ I I I( \I
1
STATISTICAL
' This part of the Salina Airport Authority's comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements, note
' disclosures and required supplementary information says about the government's overall financial
health.
Financial Trends 63-66
' These schedules contain trend information to help the reader understand how
the government's financial performance and well-being have changed over
time.
Debt Capacity 67
This schedule presents information to help the reader assess the affordability of
the government's current levels of outstanding debt and the government's
ability to issue additional debt in the future
Revenue Capacity 69-72
These schedules contain information to help the reader assess the government's
revenue source
Operating Information 73
These schedules contain service and infrastructure data to help the reader
' understand how the information in the government's financial report relates to
the services the government provides and the activities it performs.
Demographic and Economic Information 74-76
These schedules offer demographic and economic indicators to help the reader
' understand the environment within which the government's financial activities
take place.
1
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I 1 I M Il \I. 11 2uuIIi
SALINA AIRPORT AUTHORITY I
TOTAL ANNUAL REVENUES, EXPENSES AND CHANGES IN NET ASSETS
FOR YEARS ENDED DECEMBER 31,
I
2001 2002 2003
TOTAL REVENUES
OPERATING REVENUES 1
Airfield 7,250 4,514 190,367
Fuel flowage fees 252,942 278,948 257,475
Building and land rent 1,111,662 1,034,989 916,585
Gain(loss)on sale of assets 86,719 29,455 (6,631)
Other revenue 33,162 39,173 29,501 I
TOTAL OPERATING REVENUES 1,491,735 1,387,079 1,387,297
TOTAL EXPENSES
I
OPERATING EXPENSES
Administrative 754,003 751,734 825,064
Maintenance 448,189 430,530 475,204
TOTAL OPERATING EXPENSES 1,202,192 1,182,264 1,300,268
OPERATING INCOME BEFORE DEPRECIATION 289,543 204,815 87,029 1
DEPRECIATION 934,270 974,140 1,022,474
OPERATING LOSS (644,727) (769,325) (935,445)
1
NON-OPERATING INCOME AND(EXPENSES)
Mill levy 795,404 817,499 987,970
I
Interest on investments and financing lease 145,447 147,763 128,640
Interest expense (249,959) (319,167) (344,353)
TOTAL NON-OPERATING INCOME AND(EXPENSES) 690,892 646,095 772,257 I
INCOME(LOSS)BEFORE CAPITAL CONTRIBUTIONS 46,165 (123,230) (163,188)
CAPITAL CONTRIBUTIONS 583,135 144,005 434,763
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NET ASSETS
Increase in Net Assets 629,300 20,775 271,575
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TOTAL NET ASSETS,beginning of year 19,108,398 19,737,698 19,758,473
Invested in capital assets, net of related debt 16,767,770 15,418,378 17,711,718
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Restricted 85,000 85,000 85,000
Unrestricted 2,884,928 4,255,095 2,233,330
TOTAL NET ASSETS,end of year $19,737,698 $19,758,473 $20,030,048 I
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1 SALINA AIRPORT AUTHORITY
TOTAL ANNUAL REVENUES, EXPENSES AND CHANGES IN NET ASSETS
I FOR YEARS ENDED DECEMBER 31,
2004 2005 2006 2007 2008 2009 2010
I204,310 237,506 263,524 376,553 470,182 502,193 654,786
235,362 259,981 247,740 246,113 210,292 165,443 191,027
890,631 1,106,146 1,294,166 1,525,071 1,407,984 1,402,230 1,497,330
59,943 204,083 10,777 281,803 16,321 - (86,067)
I 21,874 49,654 70,605 53,772 47,591 28,710 48,206
1,412,120 1,857,370 1,886,812 2,483,312 2,152,370 2,098,576 2,305,282
I
928,769 1,039,270 1,043,176 1,161,530 1,303,374 1,352,357 1,414,922
I 465,326 618,346 627,546 807,485 941,926 867,771 821,798
1,394,095 1,657,616 1,670,722 1,969,015 2,245,300 2,220,128 2,236,720
1 18,025 199,754 216,090 514,297 (92,930) (121,552) 68,562
1,151,664 1,392,316 1,580,750 1,650,187 1,606,811 1,748,348 2,290,253
I (1,133,639) (1,192,562) (1,364,660) (1,135,890) (1,699,741) (1,869,900) (2,221,691)
I 1,036,579 1,058,688 1,184,481 1,201,602 1,256,816 1,327,647 1,768,154
126,949 118,087 148,936 241,478 185,215 74,313 9,948
(348,784) (374,851) (500,431) (774,315) (1,022,539) (1,014,129) (1,003,998)
I814,744 801,924 832,986 668,765 419,492 387,831 774,104
(318,895) (390,638) (531,674) (467,125) (1,280,249) (1,482,069) (1,447,587)
1 2,289,342 3,186,636 1,204,559 404,773 1,650,041 3,770,558 1,172,507
I1,970,447 2,795,998 672,885 (62,352) 369,792 2,288,489 (275,080)
20,030,048 22,000,495 24,796,493 25,469,378 25,407,026 25,776,818 28,065,307
' 18,468,297 24,193,395 24,442,779 13,515,783 24,471,896 26,410,681 23,717,291
85,000 85,000 85,000
3,447,198 518,098 941,600 11,891,243 1,304,922 1,654,626 4,072,936
I $22,000,495 $24,796,493 $25,469,378 $25,407,026 $25,776,818 $28,065,307 $27,790,227
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SALINA AIRPORT AUTHORITY
CHANGES IN CASH AND CASH EQUIVALENTS
FOR YEARS ENDED DECEMBER 31,
2001 2002 2003 1
CASH FLOWS FROM OPERATING ACTIVITES
Cash received from providing services $1,668,782 $1,503,652 $1,374,310
I
Cash paid to employees for services (463,501) (450,013) (462,822)
Cash paid to suppliers for goods and services (750,913) (748,272) (837,530)
NET CASH PROVIDED (USED)IN OPERATING ACTIVITIES 454,368 305,367 73,958
I
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: I
Acquisition and construction of property,plant and equipment (571,068) (2,176,229) (2,319,249)
Purchases in satisfaction of maintenance agreement - (19,095) (9,736)
Proceeds from capital grants - 144,005 434,763
I
Return of capital grant proceeds - - -
Proceeds from property tax 795,403 817,499 987,970
Principal payments on debt (674,963) (694,761) (1,046,750) 1
Proceeds of new borrowing 1,385,000 3,200,235 -
Principal received on financing lease 69,668 75,541 81,911
Interest received on financing lease 119,778 113,905 107,535
I
Principal received on long-term note - - -
Principal received on refunding debt - - -
Bond defeasance and issue costs paid (21,266) (26,119) -
Interest paid on long-term bonds (221,762) (262,795) -
Interest paid on long-term debt - - (338,703) I
NET CASH PROVIDED(USED)IN CAPITAL AND
RELATED FINANCING ACTIVITIES 880,790 1,172,186 (2,102,259)
CASH FLOWS FROM INVESTING ACTIVITES;
Interest received on deposits 30,740 30,921 25,475
NET INCREASE (DECREASE)IN CASH AND CASH I
EQUIVALENTS 1,365,898 1,508,474 (2,002,826)
CASH AND CASH EQUIVALENTS,beginning of year 596,730 1,962,628 3 471 102
CASH AND CASH EQUIVALENTS, end of year $1,962,628 $3,471,102 $1,468,276
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I SALINA AIRPORT AUTHORITY
CHANGES IN CASH AND CASH EQUIVALENTS
FOR YEARS ENDED DECEMBER 31,
1 2004 2005 2006 2007 2008 2009 2010
I $1,459,696 $2,107,817 $1,993,164 $ 4,588,310 $ 2,426,455 $ 1,974,744 $2,288,216
(472,178) (504,691) (552,966) (638,839) (790,936) (830,298) (825,454)
I (871,435) (1,157,454) (1,087,149) (1,281,618) (1,475,036) (1,457,074) (1,136,760)
116,083 445,672 353,049 2,667,853 160,483 (312,628) 326,002
1 (4,126,043) (5,948,674) (5,130,780) (3,242,102) (8,663,391) (6,999,968) (3,471,985)
(5,863) (1,350) (15,143) (21,601) (7,912) (3,445) -
I2,289,342 3,186,636 1,204,559 404,773 1,552,002 3,674,507 1,077,310
1,036,579 1,058,688 1,184,481 1,201,602 1,256,816 1,327,647 1,768,154
I (988,922) (4,388,400) (1,019,673) (1,048,833) (3,946,317) (4,739,437) (8,162,886)
3,255,000 3,635,000 3,350,000 12,007,599 - 8,012,154 11,675,000
88,823 96,320 104,453 113,279 122,855 133,242 144,485
I100,623 93,126 84,993 76,167 66,592 56,204 -
I (6,147) (22,183) (13,024) (59,955) - (75,986) (39,535)
I (294,691) (356,080) (407,795) (376,499) (1,249,490) (922,725) (1,145,591)
1,348,701 (2,646,917) (657,929) 9,054,430 (10,868,845) 462,193 1,844,952
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28,960 25,463 68,896 182,515 125,309 15,550 9,948
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1,493,744 (2,175,782) (235,984) 11,904,798 (10,583,053) 165,115 2,180,902
1,468,276 2 962 020 786 238 550 254 12,455,052 1 871 999 2 037 114
, , , , , , , ,
I $2,962,020 $ 786,238 $ 550,254 $ 12,455,052 $ 1,871,999 $2,037,114 $4,218,016
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Salina Airport Authority
General Obligation Debt Service Coverage
Ten Fiscal Years Ended December 31,2010
Special Financing
Fiscal November Assessed Motor Vehicle Capacity of General Assessment Leases Temporary Remaining Total Debt Per
Year Valuation Valuation Valuation Total Valuation Total Obligation Debt Debt Payable Notes Capacity Capita
2001 $ 301,014,666 $ 43,248,108 $ 344,262,774 $ 10,327,883 $ 5,090,000 $ - $ - $ - $ 5,237,883 $ 95
2002 317,134,605 45,965,839 363,100,444 10,893,013 7,160,000 536,563 - - 3,733,013 143
2003 328,593,726 46,679,292 375,273,018 11,258,191 6,265,000 506,804 - - 4,993,191 126
2004 335,262,182 48,687,121 383,949,303 11,518,479 8,690,000 475,917 - - 2,828,479 170
2005 352,823,785 49,367,870 402,191,655 12,065,750 8,220,000 326,619 - - 3,845,750 159
2006 377,917,187 50,551,299 428,468,486 12,854,055 10,295,000 302,137 425,000 - 2,559,055 203
2007 392,728,487 50,548,706 443,277,193 44,327,719 7,490,000 255,270 391,932 13,900,000 22,937,719 404
2008 399,982,148 51,351,656 451,333,804 45,133,380 6,525,000 232,054 358,831 10,975,000 27,633,380 331
2009 397,470,626 50,330,252 447,800,878 44,780,088 13,875,000 207,948 323,500 7,050,000 23,855,088 395
2010 400,248,283 48,184,331 448,432,614 44,843,261 12,885,000 145,299 285,796 11,675,000 20,283,261 460
Note: Details regarding the Authority's outstanding debt can be found in the notes to the financial statements
The special assessment and financing lease payable debt figures are shown for informational purposes
only and not required by statute to be included in the remaining capacity calculation.
See the Schedule of Demographic and Economic Statistics on page 75 for personal income and population data
:n
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Salina Airport Authority
CAPITAL EXPENDITURE HISTORY
Ten Years Ended December 31,2010
Construction Total
Fiscal Building in Capital
Year Equipment Additions Land Infrastructure Airfield Progress Expenditures
2001 $49,520 $172,295 $202,248 - $144,249 - $568,312
2002 125,318 1,067,221 616,474 - 9,385 392,816 2,211,214
2003 474,200 123,113 33,792 - 1,420,280 232,048 2,283,433
2004 189,300 917,709 44,289 - 2,656,039 410,807 4,218,144
2005 807,605 1,656,099 36,662 - 3,717,273 584,890 6,802,529
2006 174,963 2,766,776 212,421 - 179,853 1,008,506 4,342,519
2007 225,411 1,565,954 362,072 - 100,963 1,125,720 3,380,120
2008 226,087 155,637 713,912 - 338,229 7,539,694 8,973,559
2009 161,709 1,088,374 366,106 - 2,759,561 2,584,100 6,959,850
2010 266,159 579,662 466,789 - 1,584,946 355,919 3,253,475
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Source: Salina Airport Authority Records -
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Salina Airport Authority
REVENUE BOND COVERAGE
Ten Years Ended December 31,2010
Fiscal Pledged Revenue Bond
Year Revenue Debt Service Coverage
2001 $189,446 $164,420 1.15
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2002 189,446 158,320 1.20
2003 189,446 151,923 1.25 I
2004 189,446 150,283 1.26
2005 189,446 148,158 1.28
2006 189,446 140,557 1.35 I
2007 189,446 67,623 2.80
2008 189,446 69,955 2.71 I
2009 189,446 71,955 2.63 I
2010 165,396 73,640 2.25
Notes:
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1. During 1999,the Series 1990-B Bonds were refinanced to remove IRS restrictions and
Iachieve an interest rate savings.
Source: Salina Airport Authority Records I
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Salina Airport Authority
LOCAL GOVERNMENT MILL LEVY RATES,DIRECT AND OVERLAPPING
Ten Years Ended December 31,2010
Other
Unified Salina State Special
Fiscal Saline City of School Airport of Taxing
Year County Salina Dist.#305 Authority Kansas Districts Total
2001 24.066 24.218 68.178 2.424 1.5 5.406 125.792
2002 25.657 24.092 57.384 2.806 1.5 5.378 116.817
2003 28.081 24.013 56.632 2.795 1.5 5.553 118.574
2004 28.874 24.063 59.666 2.795 1.5 6.689 123.587
2005 28.579 23.999 55.182 2.941 1.5 6.519 118.720
2006 27.955 23.789 55.252 2.877 1.5 6.350 117.722
2007 27.475 23.959 54.99 2.877 1.5 6.398 117.199
2008 29.347 25.886 58.547 2.877 1.5 6.594 124.751
2009 31.343 25.886 58.542 4.315 1.5 6.593 128.179
2010 31.432 26.022 59.913 4.055 1.5 6.576 129.498
Note:
Funds generated from the Salina Airport Authority's 2010 mill levy become available during calendar year 2011 and are budgeted accordingly.
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Source: Saline County Clerk
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Salina Airport Authority
Principal Customers
Year Ended December 31,2010
2010 2001 I
%of Operating& %of Operating&
Direct Finance Lease Direct Finance Lease I
Company Revenue Rank Revenue Revenue Rank Revenue
Kansas Military Board $589,028 1 25.55% - - -
Hawker Beechcraft Corp.(formerly I
Raytheon Aircraft Co.) 254,800 2 11.05% 258,344 1 16.20%
Learjet Inc. 216,000 3 9.37% - - -
JRM Enterprises,Inc,d/b/a America Jet
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(formerly Moore's Midway Aviation) 179,872 4 7.80% 181,761 3 -
Kansas State University-Salina 170,396 5 7.39% 194,446 2 12.20%
CAV Aerospace,Inc. 169,127 6 7.34% - - - I
Flower Aviation 145,195 7 6.30% 122,599 4 7.69%
Schwan's Global Supply Chain Company
I#25 117,945 8 5.12% 116,328 5 7.30%
Canadian Royal Air Force 63,210 9 - - -
Two Rivers Vending Co.,Inc. 53,534 10 2.32% 76,103 6 4.77%
KASA Fab,Inc. - - 22,350 7 1.40%
Federal Aviation Administration - - 21,600 8 1.35%
Palleton of Kansas,Inc. - - 21,000 9 1.32%
Waddle's Manufacturing&Machine - - 20,640 10 1.29%
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Geocore Services - -
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STATISTICAL FY 2010
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Salina Airport Authority
MILL LEVY REVENUE
Ten Years Ended December 31,2010
IMil Levy
Fiscal Year Revenue
I2001 $ 795,404
' 2002 817,499
2003 987,970
2004 1,036,579
1 2005 1,058,688
2006 1,184,481
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2007 1,201,602
1 2008 1,256,816
' 2009 1,327,647
2010 1,768,154
Source: Salina Airport Authority Records
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STATISTICAL FY 2010
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Salina Airport Authority
AIR TRAFFIC,FUEL FLOWAGE AND ENPLANEMENT TRENDS
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Ten Years Ended December 31,2010
Scheduled
Fiscal Air Traffic Fuel Flowage Air Service
Year Operations Gallons Enplanements
2001 92,870 4,396,429 6,507
2002 95,801 4,695,093 2,565
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2003 86,214 4,358,563 2,319
2004 81,465 3,843,330 2,974
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2005 86,292 4,162,887 2,339
2006 81,464 3,817,112 2,029 I
2007 76,479 3,778,792 2,945 I
2008 71,575 3,114,515 4,654
2009 65,062 2,481,585 2,839 1
2010 60,451 2,763,990 3,136
Note:
One air traffic operation equals one aircraft takeoff and landing
Source: Salina Airport Authority Records
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1 Salina Airport Authority
Principal Employers
Current Year and Four Years Prior
1 2010 2006'
Percentage of Percentage of
ITotal City Total City
Employer Employees Rank Employment Employees Rank Employment
Salina Regional Health Center 2,250 1 7.6% 1,600 3 3.7%
ISchwan Global Supply Chain, Ir 1,600 2 5.4% 1,800 1 5.1%
USD#305 1,512 3 5.4% 1,659 2 4.7%
IExide Technologies 750 4 2.5% 750 4 2.1%
Great Plains Manufacturing 650 5 2.2%
City of Salina 500 6 1.6% 723 5 2.0%
Sunflower Bank 500 7 1.6% 0 - -
Philips Lighting Company 500 8 1.6% 490 7 1.4%
IWal-Mart 400 9 1.3% 421 8 1.2%
Dillons Stores 385 10 1.3% - - 0.0%
I Blue Beacon International - - - 544 6 1.5%
Asurion, Inc. 374 9 1.0%
Hawker Beechcraft Corp. - - - 350 10 1.0%
ITotal 9,047 30.5% 8,711 23.7%
I Source: Salina Area Chamber of Commerce
-2001 Historical records not available
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Salina Airport Authority
Saline County Demographic and Economic Statistics
Last Ten Fiscal Years
Per Capita Total Personal Median Unemployment K-12 Graduation K-12
Year Population' Personal Income' Income' Area Rate2 Rate3 Enrollement3
2001 53,646 29,800 1,559,890,000 36.4 3.8% 80.8% 9,637
2002 53,910 28,500 1,506,998,000 36.6 4.1% 85.0% 9,701
2003 53,737 28,200 1,515,395,000 36.9 4.6% 89.5% 9,587
2004 53,903 29,600 1,594,274,000 37.0 4.9% 90.4% 9,470
2005 53,919 31,500 1,657,128,000 37.3 4.4% 92.5% 9,364
2006 54,170 33,500 1,738,097,000 37.6 3.7% 90.0% 9,433
2007 54,583 33,300 1,911,583,000 37.9 3.4% 85.2% 9,313
2008 54,657 36,700 2,006,264,000 38.2 3.9% 86.7% 9,232
2009 54,364 38,752 2,106,702,000 37.7 5.4% 84.0% 9,297
2010 56,606 n/a n/a 37.7 5.8% n/a 9,318
Data Sources:
'Kansas Divison of Budget
2Bureau of Labor Statistics
3Kansas Department of Education
4U.S. Census Bureau
notes: n/a= information not available
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Largest Taxpayers
I According to the Saline County Clerk's Office, the following table lists the largest taxpayers in the City,
their 2010 assessed valuations, and the percentage each taxpayer comprised of the total assessed valuation of the
City.
I %of
Type of Assessed Total
Company Business Valuation Valuation
Schwan's Sales(Tony's Pizza) Frozen Pizza $ 8,589,167 1.92%
I Redus Salina Central Mall LLC Regional Shopping Center
fi 6,254,013 1.39%
Salina Regional Health Center
Hospital and Medical Ofces 5,589,420 1.25%
Westar Energy Utility 5,575,032 1.24%
I Wal-Mart Stores Discount Retail 3,468,733 0.77%
Gateway Adams Inc. (Midstate Plaza) Shopping Center 3,587,574 0.80%
Kansas Gas Service Utility 3,622,225 0.81%
Southwestern Bell Telephone Utility 3,107,097 0.69%
I Individual Trust Office/Warehouse/Commercial 2,247,083 0.50%
Great Plains Manufacturing Agricultural Equipment 2,879,602 0.64%
$44,919,946 10.02%
1 Property Tax Collections
I Tax statements are mailed November 1 each year and may be paid in full or one-half on or before
December 20 with the remaining one-half due on or before May 10 of the following year. Taxes that are unpaid on
the due dates are penalized at a statutorily prescribed rate until paid or until the property is sold for taxes. Real
I estate bearing unpaid taxes is advertised for sale in July of each year and is sold by the County for taxes and all legal
charges on the first Tuesday in September. Properties that are sold and not redeemed within two years after the tax
sale are subject to foreclosure sale, except homestead properties which are subject to foreclosure sale after three
years.
IPersonal property taxes are assessed, due and may be paid in the same manner as real estate taxes. Motor
vehicle property taxes are based on valuations provided by the Kansas Department of Revenue and the county
1 average tax rate for the county in which the vehicle is registered. Motor vehicle taxes are payable to the county
treasurer at the time of the vehicle's annual registration. Vehicle registration dates are assigned by the State in a
manner such as to equal registration over a twelve-month period. Motor vehicle taxes are distributed by the county
to the state, city and other taxing jurisdictions based on their proportionate tax levies. Delinquent personal and
I motor vehicle taxes are penalized at the same rate as delinquent real property taxes. The following is a summary of
tax collections for the Authority in the years shown.
I Levy Tax Taxes Current Current and Delinquent
Tax Collections Tax Collections
Year Rate Levied Amount % Amount cyo
2010 4.044 $1,624,565 $ 956,474 58.9% $ 956,474 58.9%
I 2009 4.315 1,717,272 1,625,184 94.6 1,673,940 97.5
2008 2.877 1,152,432 1,091,975 94.8 1,124,734 97.6
2007 2.877 1,131,545 1,073,715 94.9 1,105,926 97.7
I 2006 2.877 1,091,961 1,045,911 95.8 1,077,288 98.7
2005 2.941 1,039,000 1,007,688 97.0 1,037,919 99.9
2004 2.795 939,174 915,175 97.4 942,630 100.4
2003 2.795 919,639 899,014 97.8 921,402 100.2
1 2002 2.806 891,465 870,085 97.6 897,286 100.6
ISource: City of Salina
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CLUBINE&
I LE
CHARTERED
REPORT ON INTERNAL CONTROL OVER FINANCIAL
I Certified Public Accountants REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS
I 17
PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
To the Board of Directors
ISalina Airport Authority
Robert I.Clubine,C.P.A. We have audited the financial statements of Salina Airport Authority as of and for
I David A.Rettele,C.P.A.
Jay D.Langley,C.P.A. the years ended December 31, 2010 and 2009,and have issued our report thereon
Jon K.Bell,C.P.A. dated July 11, 2011. We conducted our audit in accordance with auditing standards
Leslie M.Corbett,C.P.A. generally accepted in the United States of America and the standards applicable to
I Stacy J.Osner,C.P.A.
financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States and the Kansas Municipal Audit Guide,
Marci K.Fox,C.P.A. prescribed by the Director of Accounts and Reports, Department of Administration
John T.Millikin,C.P.A. P Y P P
' Linda A.Suelter,C.P.A. of the State of Kansas.
Internal Control Over Financial Reporting
IIn planning and performing our audit, we considered Salina Airport Authority's
internal control over financial reporting as a basis for designing our auditing
I procedures for the purpose of expressing our opinions on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of the Salina
Airport Authority's internal control over financial reporting. Accordingly,we do
I not express an opinion on the effectiveness of Salina Airport Authority's internal
control over financial reporting.
1 A deficiency in internal control exists when the design or operation of a control
does not allow management or employees, in the normal course of performing their
assigned functions,to prevent or detect and correct misstatements on a timely basis.
I 218 South Santa Fe
P.O. Box 2267 A material weakness is a deficiency, or a combination of deficiencies, in internal
control such that there is a reasonable possibility that a material misstatement of the
Salina, Kansas
67402-2267 entity's financial statements will not be prevented, or detected and corrected on a
Itimely basis.
Salina Our consideration of internal control over financial reporting was for the limited
I785/825-5479 purpose described in the first paragraph of this section and was not designed to
785/825-2446 Salina Fax identify all deficiencies in internal control over financial reporting that might be
785
deficiencies, significant deficiencies or material weaknesses. We did not identify
I Ellsworth any deficiencies in internal control over financial reporting that we consider to be
785/472-3915 material weaknesses, as defined above.
Ellsworth Fax
1 785/472-5478
1 77
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Salina Airport Authority's financial statements are
free of material misstatement,we performed tests of its compliance with certain provisions of laws,
regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect
on the determination of financial statement amounts. However,providing an opinion on compliance with
those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards.
1
This report is intended solely for the information and use of the audit committee,the board of directors,
management, others within the organization, the City Commission and federal awarding agencies and pass-
through entities and is not intended to be and should not be used by anyone other than these specified parties.
CLUBINE AND RETTELE, CHARTERED I
2 IA a4Ad ISelde C14
Salina, Kansas '
July 11, 2011
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IINDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH
CLUBINE& REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND
ILE INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE
CHARTERED WITH OMB CIRCULAR A-133
I Certified Public Accountants To the Board of Directors
Salina Airport Authority
I CC/i Compliance
We have audited the compliance of Salina Airport Authority, with the types of
compliance requirements described in the U. S. Office of Management and Budget
I (OMB) Circular A-133 Compliance Supplement that are applicable to each of its
major federal programs for the year ended December 31, 2010. Salina Airport
Robert I.Clubine,C.P.A. Authority's major federal programs are identified in the summary of auditors'
I David A.Langley, C.P.A. results section of the accompanying schedule of findings and questioned costs.
Jay D.Langley,C.P.A. g q
Jon K.Bell,C.P.A. Compliance with the requirements of laws, regulations, contracts and grants
Leslie M.Corbett,C.P.A. applicable to each of its major federal programs is the responsibility of Salina
Stacy J.Osner,C.P.A. Pp � p g p ty
IAirport Authority's management. Our responsibility is to express an opinion on
Marci K.Fox,C.P.A. Salina Airport Authority's compliance based on our audit.
John T.Millikin,C.P.A.
I Linda A.Sueker,C.P.A. We conducted our audit of compliance in accordance with auditing standards
generally accepted in the United States of America; the standards applicable to
financial audits contained in Government Auditing Standards, issued by the
I Comptroller General of the United States; and OMB Circular A-133,Audits of
States, Local Governments, and Non-Profit Organizations. Those standards and
OMB Circular A-133 require that we plan and perform the audit to obtain
I reasonable assurance about whether noncompliance with the types of compliance
requirements referred to above that could have a direct and material effect on a
major federal program occurred. An audit includes examining, on a test basis,
I evidence about Salina Airport Authority's compliance with those requirements and
performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion. Our audit
1 does not provide a legal determination on Salina Airport Authority's compliance
with those requirements.
I In our opinion, Salina Airport Authority complied in all material respects,with the
requirements referred to above that could have a direct and material effect on each
218 South Santa Fe of its major federal programs for the year ended December 31, 2010.
I P.O. Box 2267
Salina, Kansas Internal Control Over Compliance
67402-2267
The management of Salina Airport Authority is responsible for establishing and
I maintaining effective internal control over compliance with requirements of laws,
Salina regulations, contracts and grants applicable to federal programs. In planning and
785/825-5479 performing our audit, we considered Salina Airport Authority's internal control
111 Salina Fax over compliance with requirements that could have a direct and material effect on a
785/825-2446 major federal program in order to determine the auditing procedures for the
Ellsworth purpose of expressing our opinion on compliance and to test and report on internal
1 785/472-3915
Ellsworth Fax control over compliance in accordance with OMB Circular A-133, but not for the
785/472-5478 purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, we do not express an opinion on the effectiveness of
I Salina Airport Authority's internal control over compliance.
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A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned 1
functions,to prevent, or detect and correct noncompliance with a type of compliance requirement of a federal
program on a timely basis. A material weakness in internal control over compliance is a deficiency, or
combination of deficiencies, in internal control over compliance such that there is a reasonable possibility that
material noncompliance with a type of compliance requirement of a federal program will not be prevented,
detected and corrected, on a timely basis.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over compliance
that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any 1
deficiencies in internal control over compliance that we consider to be material weaknesses as defined above.
This report is intended solely for the information and use of the audit committee,board of directors, '
management,others within the organization,the City Commission and federal awarding agencies and pass-
through entities and is not intended to be and should not be used by anyone other than these specified parties.
CLUBINE AND RETTELE, CHARTERED
aid 4eittl Cow ua' 1
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Salina, Kansas 1
July 11, 2011
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ISALINA AIRPORT AUTHORITY
Salina, Kansas
ISchedule 1
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
IFor the Year Ended December 31,2010
Pass-through
I Federal Entity
Federal Grantor/Pass-through Grantor/ CFDA Identifying Federal
Program or Cluster Title Number Number Expenditures
IIIU.S. Department of Transportation
Airport Improvement Program 20.106 N/A $ 629,187
IARRA-Airport Improvement Program 20.106 N/A 75,980
IU.S. Department of Homeland Security
Law Enforcement Officer Reimbursement
Agreement Program 97.090 N/A 5,108
Total Expenditures of Federal Awards $ 710,275
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See notes to the schedule of expenditures of federal awards.
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SALINA AIRPORT AUTHORITY
Salina, Kansas
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended December 31,2010
Note 1 Basis of Presentation
The accompanying schedule of expenditures of federal awards includes the federal grant activity of
Salina Airport Authority and is presented on the accrual basis of accounting. The information in this
schedule is presented in accordance with the requirements of OMB Circular A-133,Audits of States,
Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this I
schedule may differ from amounts presented in, or used in the preparation of,the basic financial
statements.
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ISALINA AIRPORT AUTHORITY
Salina, Kansas
I
Schedule 2
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
For the Year Ended December 31, 2010
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There are no prior audit findings.
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SALINA AIRPORT AUTHORITY '
Salina, Kansas
Schedule 3
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended December 31, 2010
SECTION I - SUMMARY OF AUDITORS' RESULTS I
Financial Statements I
1. Type of auditor's report issued: Unqualified
2. Internal control over financial reporting:
Material weaknesses identified? yes X no I
Significant deficiencies identified that are not considered
to be material weaknesses? yes X none reported I
3. Noncompliance material to financial statements noted? yes X no
Federal Awards I
1. Internal control over major programs:
I
Material weaknesses identified? yes X no
Significant deficiencies identified that are not considered
to be material weaknesses? yes X none reported
2. Type of auditor's report issued in compliance for major I
programs: Unqualified
3. Any audit findings disclosed that are required to be reported
in accordance with Section 510(a) of OMB Circular A-133: yes X no
ro or
4. Identification of maJ j rams: I
p g
20.106 Airport Improvement Program
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5. Dollar threshold to distinguish between Type A and
Type B programs: $300,000
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6. Auditee qualified as a low-risk auditee? X yes no
SECTION I1- FINANCIAL STATEMENT FINDINGS
None.
SECTION III -FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
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None.
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ISALINA AIRPORT AUTHORITY
Salina,Kansas
I Schedule 4
CORRECTIVE ACTION PLAN
For the Year Ended December 31, 2010
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None required.
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Salina
Airport Authority
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Pardon our noise it's the sound of freedom!
The Salina sky gets a little louder than usual as our neighbors to the north and six CF-1.8 Hornets from
Canadian Air Force Tactical Fighter Squadrons take advantage of the training and basing opportunities
at the Salina Airport Authority and the Smoky Hill Weapons Range, three times a year.
They support the Canadian Army during forward air controller training. The Army FACs will be
training to serve as the eyes on the ground for the Air Force pilots. Through a number of methods,
FACs communicate with the inbound pilots, guiding them to destroy enemy targets and minimize
collateral damage.
- The airport's close proximity to the range is key for this type of training. Military units get "more bang
for their buck," pun intended. The less time pilots spend in the air getting to the training venue, the
more time, and fuel; they can spend over it training the guys on the ground and sharpening their own
skills as well.
rF
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sj _LINA A iLINAA1Io11
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SALINAAirpVi „ _ _ .. 9.444.4.4.441
/S Auticipcd I Aviation
SLNAirport SLN/& Te ce
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3237 Arnold I Salina, KS 67401 I 785-827-3914
www.salinaairport.com I www.flysalina.com