Arbitrage Report (2011) GILMORE & BELL
A PROFESSIONAL CORPORATION
ATTORNEYS AT LAW
816-221-1000 ST.LOUIS,MISSOURI
FAX:816-221-1018 2405 GRAND BOULEVARD,SUITE 1100 WICHITA,KANSAS
WWW.GiLMOREEIELL.COM KANSAS CITY, MISSOURI 64108-2521 LINCOLN,NEBRASKA
October 24; 2011
Mr. Rod Franz, C.P.F.O
Director of Finance
City of Salina, Kansas
300 West Ash Street, Room 206
P.O. Box 736
Salina, Kansas 67402-0736
Re: $3,720,000 City of Salina, Kansas General Obligation Internal Improvement Bonds,
Series 2008-A (the "Bonds")
Dear Rod:
Enclosed are the following documents related to our computation of arbitrage rebate in
connection with the above-referenced Bonds:
• Legal Opinion of Gilmore &Bell Regarding the Arbitrage Rebate Analysis
• Exhibit A-Explanation of Arbitrage Rebate Analysis
• Exhibit B -Arbitrage Rebate Analysis as of October 1, 2011 (the"Computation Date")
As of the Computation Date, no rebate payment or yield reduction payment is required to be
made for the Bonds. The amount accrued as of the Computation Date as a rebate liability attributable to
the investment of the gross proceeds of the Bonds subject to arbitrage rebate was negative $19,335.69.
If the conditions in our opinion are met,no future computations will be required.
Please call me if you have any questions.
Very truly yours,
&-hzcU)6�_)
Jennifer L. Richardson
JLR:sg
Enclosures
cc: Lynd K. Mische
Randy Irey
GILMORE & BELL
A PROFESSIONAL CORPORATION
ATTORNEYS AT LAW
816-221-1000 ST.LOUIS,MISSOURI
FAX:816-221-1018 2405 GRAND BOULEVARD,SUITE 1100 WICHITA,KANSAS
WWW.GILMORESELL.COM KANSAS CITY, MISSOURI 64108-2521 LINCOLN,NEBRASKA
October 24, 2011
City of.Salina,Kansas
Salina, Kansas
Re: $3,720,000 City of Salina, Kansas General Obligation Internal Improvement Bonds,
Series 2008-A (the"Bonds")—Legal Opinion Regarding Arbitrage Rebate Analysis as of
October 1, 2011
Ladies and Gentlemen:
We have acted as counsel to the City of Salina, Kansas (the "Issuer") in connection with the
preparation of the Arbitrage Rebate Analysis dated October 1, 2011 (the "Arbitrage Analysis") for the
above-referenced Bonds. Attached as Exhibit A is our Explanation of Arbitrage Rebate Analysis and as
Exhibit B is our Arbitrage Rebate Analysis.
Our opinion is based on the facts and assumptions stated in the Explanation of Arbitrage Rebate
.Analysis. Capitalized terms used in this opinion have the same meaning as described in the Explanation of
Arbitrage Rebate Analysis.
We have assumed that the financial records provided to us and the incorporation of those records
into the Arbitrage Analysis are accurate and correct. Unless otherwise noted in the Explanation of
Arbitrage Rebate Analysis, we have also assumed that the proceeds of the Bonds and other funds were
used and invested in accordance with the documents contained in the Transcript, including but not limited
to the Federal Tax Certificate.
Based upon the foregoing, we are of the opinion that, under existing law:
1. The accounting method, identification of funds and accounts subject to rebate or yield
reduction payment restrictions and the overall methodology employed in the preparation of the Arbitrage
Analysis are in accordance with Section 148 of the Internal Revenue Code of 1986, as amended (the
"Code")and United States Treasury Regulations and decisions.
2. As of the Computation Date, no rebate payment is required to be made for the Bonds.
The amount earned from the investment of the gross proceeds of the Bonds subject to arbitrage rebate
under Section 148(f)of the Code was negative $19,335.69.
3. As of the Computation Date, no yield reduction payment is required to be made for the
Bonds.
4. No arbitrage rebate will be generated in the future under Section 148(f)of the Code, and no
further computation of rebate will be required, if the principal and interest account qualifies each bond year
as a bona fide debt service fund.
Our.opinion is based on statutes, regulations and decisions in effect as of this date, and is intended
for and can be relied on only by the parties to whom it is addressed. We understand that the Issuer will use
this opinion and the Arbitrage Analysis to determine whether any rebate liability or yield reduction payment
is due and the amount and timing of that payment.
Very truly yours,
't QJ4 `
LKM:jlr
GIELMORE 8c BELL, P.C.
1;
Exhibit A
Explanation of Arbitrage Rebate Analysis
This Explanation of Arbitrage Rebate Analysis summarizes the methodology and primary
assumptions used in the Arbitrage Rebate Analysis dated October 1, 2011 (the "Arbitrage Analysis") for
the $3,720,000 City of Salina, Kansas (the "Issuer") General Obligation Internal Improvement Bonds,
Series 2008=A(the "Bonds"j. This explanation accompanies our legal opinion dated October 24, 2011.
General Matters
The time period covered by the Arbitrage Analysis (the "Computation Period") began July 30,
2008 and ended October 1, 2011. (The latter date is referred to as the"Computation Date)."
We determined that the funds included in the Arbitrage Analysis were "gross proceeds" subject to
rebate and/or yield restriction payments under Section 148 of the Internal Revenue Code of 1986, as
amended (the"Code") and applicable United States Treasury Regulations and decisions. This
determination was based on our review of the various documents included in the Transcript of
Proceedings at the time the Bonds were issued (the "Transcript").
The Arbitrage Analysis was prepared using financial records provided by the Issuer (the
"Investment Records"). The relevant investment data contained in the Investment Records for each fund
and account was entered in the Arbitrage Analysis. Multiple procedures were used to analyze and test the
accuracy of the Investment Records as well as the accuracy and the overall reasonableness of the
investment results for each fund or account that was included in the Arbitrage Analysis. Based on the
procedures employed, the results reflected in the Arbitrage Analysis appear to accurately incorporate the
information in the Investment Records. However, the Arbitrage Analysis is not intended to be a
mathematical verification of the information contained in the Investment Records or an audit of the
investment results actually obtained.
The Computation Date is not a rebate computation installment payment date.
The computation of yield on the Bonds used in the Arbitrage Analysis is contained in the
Transcript as an exhibit to the Federal Tax Certificate.
All investments purchased or sold using gross proceeds of the Bonds were treated as purchased
and sold on the dates-and at the prices reflected in the Investment Records, and these prices were assumed
to be at fair market value of the investment on the purchase or sale date.
Unless otherwise noted, investments that were required to be valued on dates other than a date
when they actually were purchased or sold, were valued either at par plus accrued interest or at present
value as of that date. These values are shown in the Arbitrage Analysis.
Accounting for Expenditures and Investments
Except as described below, bond proceeds were allocated to expenditures on the dates reflected in
the Investment Records for the improvement fund (the "Improvement Fund"). Bond proceeds were
assumed to have been spent in accordance with the various documents contained in the Transcript. In
general these rules permit Bond proceeds to be spent only for costs that can or must be capitalized for
financial accounting or federal income tax purposes. All expenditures were assumed to have been paid
only to third parties directly or as a valid reimbursement of the Issuer for costs previously spent for those
purposes.
The Issuer generally invests all funds (including proceeds of the Bonds), in a variety of
investments without regard to the sources from which the funds were derived (e.g. bond proceeds, tax
revenues, grants, etc.). Earnings from the investment of proceeds of the Bonds were calculated based on
the unspent balance of Bond proceeds and the average monthly interest rate on Issuer's investments, as
reported by the Issuer.
We understand that Investment earnings on proceeds of the Bonds are initially deposited to the
General Fund of the Issuer. Amounts in the General Fund were reasonably expected to be spent(using a
"Bond proceeds spent first" method of accounting) within six months of the date of deposit. Since the
Bonds are an issue of governmental purpose obligations, and because the General Fund contains tax or
other revenues of the Issuer other than the proceeds of issues of tax exempt obligations, we have treated
investment earnings on Bond proceeds as spent on the date they were earned in accordance with Treasury
Regulation §1.148-6(d)(6).
Bond Proceeds Allocated to Refunding Portion
Proceeds were invested and allocated to the redemption of the.refunded notes on the dates
reflected in the Investment Records.
Yield Reduction Payment–Restricted Investment
No funds or accounts were identified as subject to investment yield restrictions.
Exemption of Funds from Rebate–Bona Fide Debt Service Fund
Amounts held in a "bona fide debt service fund" are not taken into account in computing
arbitrage rebate if the gross earnings on such fund during a given Bond Year are less than $100,000. If
the average annual debt service on the issue does not exceed $2,500,000, the $100,000 earnings test may
be treated as satisfied. A"bona fide debt service fund" is a fund that—
(1) is used primarily to achieve a proper matching of revenues with principal and
interest payments within each bond year; and
(2) is depleted at least once each bond year, except for a reasonable carryover
amount not to exceed the greater of(A) the earnings on the fund for the preceding bond year, or
(B) one-twelfth of the principal and interest payments on the bond issue for the preceding bond
year.
We understand that the Principal and Interest Account qualified as a bona fide debt service fund
for all bond years during the Computation Period.
2
Exhibit B
Arbitrage Rebate Analysis
Computed as of October 1, 2011
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-A
GILMOREBELL
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-A
Results as of October 1,2011
Summary of Issue
Par $3,720,000
Issue Date July 30,2008
Bond Year Date October 1
Bond Yield 3.69534%
Computation Date October 1,2011
Summary of Rebate Computation
Computation Results
• Total Rebate Amount ($ 19,335.69)
• No arbitrage rebate payment is due at this time.
The net rebate amount as of October 1,2011 is
($19,335.69).
1012412011 -1- Gilmore&Bell,P.C.
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-A
Rebate Liability by Source
Fund 690-Glenn Ave -
Fund 711-Pacific Avenue (12,908.54)
Fund 781-Golden Eagle#4 -
Fund 782-Quail Meadows
Fund 785-Magnolia Hills Estates
Fund 780-Liberty Addition#2
Fund 740-South Ohio Corridor (151.96)
Fund 756-Liberty Addition Sewer
Credits&Adjustments (6,275.19)
Total Rebate Amount (19,335.69)
($30,000) (;15,000) $0 $15,000
1012412011 -2- Gilmore&Bell,P.C.
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-A
ARBITIZA(A" REBATE ANALYSIS
Comments and Yield Comparison
Comments
• We understand that the principal and interest
account qualified as a bona fide debt service fund
for all bond years during this computation period.
• No future computations are required.
Yield Comparison
As of 10/1/2011
8.00%
6.00%
Bond Yield=3.70°
4.00%
2.24%
2.00% `
0.00% 0.00% 0.00% 0.00% 0.00% _
0.00%
Fund 756-Liberty Fund 740-South Fund 780-Liberty Fund 785- Fund 782-Quail Fund 781-Golden Fund 711-Pacific Fund 690-Glenn
Addition Sewer Ohio Corridor Addition#2 Magnolia Hills Meadows Eagle#4 Avenue Ave
Estates
1012412011 -3- Gilmore&Be]],P.C.
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-A
Cash and Investment Activity
Total
Cash Transactions Investments Cash and
Date Cash In Cash Out Balance Purchase Receipt Earnings Balance Investments
7/30/2008 550,297.95 550,297.95 - - -
Totals 550,297.95 550,297.95 - - -
Cash Out Less Cash In: -
Investment Receipts minus Purchases: -
1012412011 -4- Gilmore&Bell,AC
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-A
Arbitrage Rebate Computation Investment Yield
Future Present
Net Value Future Value Present
Investment Factor @ Value to Number Factor @ Value to
Date Activity 3.695342% 10/1/2011 of Days 0.000000% 7/30/2008
7/30/2008 - 1.1230553 - 1,141 1.0000000 -
Summary of: Fund 756-Liberty Addition Sewer
Arbitrage Rebate Amount: $ -
Total Investment Earnings: -
Investment Yield: 0.0000%
Average Amount Invested: $ -
Total Time Invested: 0.00 years
1012412011 -9- Gilmore&Bell,P.C.
City of Salina,Kansas
General Obligation Internal Improvement Bonds
Series 2008-A
Cash and Investment Activity Imputed Interest Calculation
Total Relevant Relevant Days
Cash Transactions Investments Cash and Investment Invested Invested Imputed
Date Cash In Cash Out Balance Purchase Receipt Earnings Balance Investments Rate Balance (Actual) Earnings
7/30/2008 1,043,603.34 1,009,474.17 34,129.17 34,129.17 34,129.17 2.1650% - -
7/31/2008 2.02 2.02 34,129.17 34,129.17 2.1650% 34,129.17 1 2.02
8/7/2008 4,261.09 4,261.09 29,868.08 29,868.08 2.2459% 34,129.17 7 14.70
8/14/2008 4,476.52 4,476.52 25,391.56 25,391.56 2.2459% 29,868.08 7 12.86
8/31/2008 54.12 54.12 25,391.56 25,391.56 2.2459% 25,391.56 17 26.56
9/11/2008 54.00 54.00 25,337.56 25,337.56 2.2481% 25,391.56 11 17.20
9/30/2008 46.85 46.85 25,337.56 25,337.56 2.2481% 25,337.56 19 29.65
10/31/2008 46.64 46.64 25,337.56 25,337.56 2.1672% 25,337.56 31 46.64
11/30/2008 46.63 46.63 25,337.56 25,337.56 2.2390% 25,337.56 30 46.63
12/4/2008 23,537.91 23,537.91 1,799.65 1,799.65 2.2935% 25,337.56 4 6.37
12/31/2008 1,300.00 1,300.00 499.65 499.65 2.2935% 1,799.65 27 3.05
12/31/2008 9.42 9.42 499.65 499.65 2.2935% - -
1/31/2009 0.93 0.93 499.65 499.65 2.1815% 499.65 31 0.93
2/28/2009 0.69 0.69 499.65 499.65 1.7917% 499.65 28 0.69
3/31/2009 0.77 0.77 499.65 499.65 1.8035% 499.65 31 0.77
4/9/2009 160.00 160.00 339.65 339.65 1.9721% 499.65 9 0.24
4/30/2009 0.63 - 0.63 339.65 339.65 1.9721% 339.65 21 0.39
5/31/2009 0.61 - 0.61 339.65 339.65 2.1188% 339.65 31 0.61
6/30/2009 0.34 - 0.34 339.65 339.65 1.2114% 339.65 30 0.34
7/31/2009 0.32 - 0.32 339.65 339.65 1.1030% 339.65 31 0.32
8/31/2009 0.30 - 0.30 339.65 339.65 1.0476% 339.65 31 0.30
9/30/2009 0.27 - 0.27 339.65 339.65 0.9655% 339.65 30 0.27
10/31/2009 0.31 - 0.31 339.65 339.65 1.0883% 339.65 31 0.31
11/30/2009 0.16 - 0.16 339.65 339.65 0.5774% 339.65 30 0.16
12/3/2009 339.65 - 339.65 (0.00) (0.00) 0.3104% 339.65 3 0.01
12/31/2009 0.01 - 0.01 (0.00) (0.00) 0.3104% (0.00) 28 -
Totals 1,043,603.34 1,043,814.36 34,129.17 34,129.17 211.02 211.02
Cash Out Less Cash In: 211.02
Investment Receipts minus Purchases: -
1012412011 -6- Gilmore&Betl,P.C.
City of Salina,Kansas
General Obligation Internal Improvement Bonds
Series 2008-A
Arbitrage Rebate Com utation Investment Yield
Future Present
Net Value Future Value Present
Investment Factor @ Value to Number Factor @ Value to
Date Activity 3.695342% 10/1/2011 of Days 2.237201% 7/30/2008
7/30/2008 (34,129.17) 1.1230553 (38,328.95) 1,141 1.0000000 (34,129.17)
7/31/2008 2.02 1.1230553 2.27 1,141 1.0000000 2.02
8/7/2008 4,261.09 1.1222560 4,782.03 1,134 0.9995675 4,259.25
8/14/2008 4,476.52 1.1214573 5,020.23 1,127 0.9991352 4,472.65
8/31/2008 54.12 1.1196337 60.59 1,111 0.9981477 54.02
9/11/2008 54.00 1.1183818 60.39 1,100 0.9974694 53.86
9/30/2008 46.85 1.1162225 52.30 1,081 0.9962989 46.68
10/31/2008 46.64 1.1128218 51.90 1,051 0.9944535 46.38
11/30/2008 46.63 1.1094313 51.73 1,021 0.9926115 46.29
12/4/2008 23,537.91 1.1089800 26,103.07 1,017 0.9923662 23,358.23
12/31/2008 1,300.00 1.1060512 1,437.87 991 0.9907729 1,288.00
12/31/2008 9.42 1_1060512 10.42 991 0.9907729 9.33
1/31/2009 0.93 1.1026814 1.03 961 0.9889377 0.92
2/28/2009 0.69 1.0993219 0.76 931 0.9872280 0.68
3/31/2009 0.77 1.0959726 0.84 901 0.9852776 0.76
4/9/2009 160.00 1.0949698 175.20 892 0.9847297 157.56
4/30/2009 0.63 1.0926335 0.69 871 0.9834526 0.62
5/31/2009 0.61 1.0893046 0.66 841 0.9816310 0.60
6/30/2009 0.34 1.0859858 0.37 811 0.9798127 0.33
7/31/2009 0.32 1.0826771 0.35 781 0.9779978 0.31
8/31/2009 0.30 1.0793785 0.32 751 0.9761863 0.29
9/30/2009 0.27 1.0760900 0.29 721 0.9743782 0.26
10/31/2009 0.31 1.0728115 0.33 691 0.9725734 0.30
11/30/2009 0.16 1.0695429 0.17 661 0.9707719 0.16
12/3/2009 339.65 1.0692166 363.16 658 0.9705919 329.66
12/31/2009 0.01 1.0662843 0.01 631 0.9689738 0.01
211.02 (151.96) (0.00)
Summary of: Fund 740-South Ohio Corridor
Arbitrage Rebate Amount: $ (151.96)
Total Investment Earnings: 211.02
Investment Yield: 2.2372%
Average Amount Invested: $ 6,658
Total Time Invested: 1.42 years
1012412011 -7- GRmore&BeQ P.C.
� is � � � � � w � � � � � � � � � � >•
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-A
ACCOUINTNO. 3: Hind 781) - l.ibertN Addition #2
Cash and Investment Activity
Total
Cash Transactions Investments Cash and
Date Cash In Cash Out Balance Purchase Receipt Earnings Balance Investments
7/30/2008 667,865.08 667,865.08 - - -
Totals 667,865.08 667,865.08 - - -
Cash Out Less Cash In: -
Investment Receipts minus Purchases: -
1012412011 -8- Gilmore&Bell,P.C.
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-A
ACCOUNTNO. 3: Fund 780 - UbertyAddition #2
Arbitrage Rebate Computation Investment Yield
Future Present
Net Value Future Value Present
Investment Factor @ Value to Number Factor @ Value to
Date Activity 3.695342% 10/1/2011 of Days 0.000000% 7/30/2008
7/30/2008 - 1.1230553 - 1,141 1.0000000 -
Summary of: Fund 780-Liberty Addition#2
Arbitrage Rebate Amount: $ -
Total Investment Earnings: -
Investment Yield: 0.0000%
Average Amount Invested: $ -
Total Time Invested: 0.00 years
1012412011 -9- Gilmore&Bell,AC.
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-A
Cash and Investment Activity
Total
Cash Transactions Investments Cash and
Date Cash In Cash Out Balance Purchase Receipt Earnings Balance Investments
7/30/2008 553,567.85 553,567.85 - - -
Totals 553,567.85 553,567.85 - - -
Cash Out Less Cash In: -
Investment Receipts minus Purchases: -
1012412011 -10- Gilmore&Bell,P.C.
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-A
Arbitrage Rebate Computation Investment Yield
Future Present
Net Value Future Value Present
Investment Factor @ Value to Number Factor @ Value to
Date Activity 3.695342% 10/1/2011 of Days 0.000000% 7/30/2008
7/30/2008 - 1.1230553 - 1,141 1.0000000 -
Summary of: Fund 785-Magnolia Hills Estates
Arbitrage Rebate Amount: $ -
Total Investment Earnings: -
Investment Yield: 0.0000%
Average Amount Invested: $ -
Total Time Invested: 0.00 years
1012412011 -11- Gilmore&Bell,P.C.
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City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-A
Cash and Investment Activity
Total
Cash Transactions Investments Cash and
Date Cash In Cash Out Balance Purchase Receipt Earnings Balance Investments
7/30/2008 249,149.08 249,149.08 - -
Totals 249,149.08 249,149.08 - - -
Cash Out Less Cash In: -
Investment Receipts minus Purchases: -
1012412011 -12- Gilmore&Bell,P.C.
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-A
5: Fund 782 - Quail Nlcado%�s
Arbitrage Rebate Computation Investment Yield
Future Present
Net Value Future Value Present
Investment Factor @ Value to Number Factor @ Value to
Date Activity 3.695342% 10/1/2011 of Days 0.000000% 7/30/2008
7/30/2008 - 1.1230553 - 1,141 1.0000000 -
Summary of: Fund 782-Quail Meadows
Arbitrage Rebate Amount: $ -
Total Investment Earnings: -
Investment Yield: 0.0000%
Average Amount Invested: $ -
Total Time Invested: 0.00 years
1012412011 -13- Gilmore&Bell,P.C.
�w w� w w� w■ w w■ w ww w ww ww w w w w w ww wr
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-A
ACCOUNTNO. 6: Fmid 781 - Golden Eagle#4
Cash and Investment Activity
Total
Cash Transactions Investments Cash and
Date Cash In Cash Out Balance Purchase Receipt Earnings Balance Investments
7/30/2008 311,780.74 311,780.74 - - -
Totals 311,780.74 311,780.74 - - -
Cash Out Less Cash In: -
Investment Receipts minus Purchases:
1012412011 -14- Gilmore&Bell,P.C.
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-A
Arbitrage Rebate Computation Investment Yield
Future Present
Net Value Future Value Present
Investment Factor @ Value to Number Factor @ Value to
Date Activity 3.695342% 10/1/2011 of Days 0.000000% 7/30/2008
7/30/2008 - 1.1230553 - 1,141 1.0000000 -
Summary of: Fund 781 - Golden Eagle#4
Arbitrage Rebate Amount: $ -
Total Investment Earnings: -
Investment Yield: 0.0000%
Average Amount Invested: $ -
Total Time Invested: 0.00 years
1012412011 -19- Gilmore&Bell,P.C.
City of Salina,Kansas
General Obligation Internal Improvement Bonds
Series 1008-A
Cash and Investment Activity Imputed Interest Calculation
Total Relevant Relevant Days
Cash Transactions Cash and Investment Invested Invested Imputed
Date Cash In Cash Out Balance Purchase Receipt Earnings Balance Investments Rate Balance (Actual) Earnings
7/30/2008 300,000.00 61,324.88 238,675.12 238,675.12 238,675.12 2.1650% - -
7/31/2008 14.16 14.16 238,675.12 238,675.12 2.1650% 238,675.12 1 14.16
8/7/2008 900.00 900.00 237,775.12 237,775.12 2.2459% 238,675.12 7 102.80
8/14/2008 1,098.90 1,098.90 236,676.22 236,676.22 2.2459% 237,775.12 7 102.41
8/31/2008 452.78 452.78 236,676.22 236,676.22 2.2459% 236,676.22 17 247.57
9/30/2008 437.32 437.32 236,676.22 236,676.22 2.2481% 236,676.22 30 437.32
10/31/2008 435.63 435.63 236,676.22 236,676.22 2.1672% 236,676.22 31 435.63
11/30/2008 435.55 435.55 236,676.22 236,676.22 2.2390% 236,676.22 30 435.55
12/31/2008 461.02 461.02 236,676.22 236,676.22 2.2935% 236,676.22 31 461.02
1/3112009 438.51 438.51 236,676.22 236,676.22 2.1815% 236,676.22 31 438.51
2/28/2009 325.30 325.30 236,676.22 236,676.22 1.7917% 236,676.22 28 325.30
3/31/2009 362.53 362.53 236,676.22 236,676.22 1.8035% 236,676.22 31 362.53
4/30/2009 383.62 383.62 236,676.22 236,676.22 1.9721% 236,676.22 30 383.62
5/31/2009 425.91 425.91 236,676.22 236,676.22 2.1188% 236,676.22 31 425.91
6/30/2009 235.64 235.64 236,676.22 236,676.22 1.2114% 236,676.22 30 235.64
7/31/2009 221.71 221.71 236,676.22 236,676.22 1.1030% 236,676.22 31 221.71
8/31/2009 210.59 210.59 236,676.22 236,676.22 1.0476% 236,676.22 31 210.59
9/30/2009 187.82 187.82 236,676.22 236,676.22 0.9655% 236,676.22 30 187.82
10/31/2009 218.76 218.76 236,676.22 236,676.22 1.0883% 236,676.22 31 218.76
11/30/2009 112.31 112.31 236,676.22 236,676.22 0.5774% 236,676.22 30 112.31
12/10/2009 1,369.20 1,369.20 235,307.02 235,307.02 0.3104% 236,676.22 10 20.13
12/31/2009 62.15 62.15 235,307.02 235,307.02 0.3104% 235,307.02 21 42.02
1/31/2010 69.06 69.06 235,307.02 235,307.02 0.3455% 235,307.02 31 69.06
2/412010 11,471.35 11,471.35 223,835.67 223,835.67 0.3052% 235,307.02 4 7.87
2/28/2010 52.78 52.78 223,835.67 223,835.67 0.3052% 223,835.67 24 44.91
3/31/2010 58.27 58.27 223,835.67 223,835.67 0.3065% 223,835.67 31 58.27
4/8/2010 14,269.51 14,269.51 209,566.16 209,566.16 0.3364% 223,835.67 8 16.50
4/30/2010 58.99 58.99 209,566.16 209,566.16 0.3364% 209,566.16 22 42.49
5/20/2010 702.00 702.00 208,864.16 208,864.16 0.3286% 209,566.16 20 37.73
5/31/2010 58.41 58.41 208,864.16 208,864.16 0.3286% 208,864.16 11 20.68
6/17/2010 60.00 60.00 208,804.16 208,804.16 0.3039% 208,864.16 17 29.57
6/30/2010 52.17 52.17 208,804.16 208,804.16 0.3039% 208,804.16 13 22.60
7/31/2010 53.46 53.46 208,804.16 208,804.16 0.3015% 208,804.16 31 53.46
8/5/2010 54,256.00 54,256.00 154,548.16 154,548.16 0.2875% 208,804.16 5 8.22
8/31/2010 39.87 39.87 154,548.16 154,548.16 0.2875% 154,548.16 26 31.65
9/16/2010 164.00 164.00 154,384.16 154,384.16 0.2945% 154,548.16 16 19.95
9/22/2010 2,436.00 2,436.00 151,948.16 151,948.16 0.2945% 154,384.16 6 7.47
9/30/2010 127,402.90 127,402.90 24,545.26 24,545.26 0.2945% 151,948.16 8 9.81
9/30/2010 37.23 37.23 24,545.26 24,545.26 0.2945% - -
10/7/2010 24,545.26 24,545.26 - - 0.2996% 24,545.26 7 1.41
10/31/2010 1.41 - 1.41 0.2996% - -
Totals 300,000.00 305,902.96 238,675.12 238,675.12 5,902.96 5,902.96
Cash Out Less Cash In: 5,902.96
Investment Receipts minus Purchases: -
1012412011 -16- Gilm-&Be11,P.C.
City of Salina,Kansas
General Obligation Internal Improvement Bonds
Series 2008-A
Arbitrage Rebate Com utation Investment Yield
Future Present
Net Value Future Value Present
Investment Factor(nl Value to Number Factor* Value to
Date Activih 3.695342% 10/1/2011 ofDaAs 1.215188% 7/30/2008
7/30/2008 (238,675.12) 1.1230553 (268,045.37) 1,141 1.0000000 (238,675.12)
7/31/2008 14.16 1.1230553 15.90 1,141 1.0000000 14.16
8n/2008 900.00 1.1222560 1,010.03 1,134 0.9997645 899.79
8/14/2008 1,098.90 1.1214573 1,232.37 1,127 0.9995290 1,098.38
8/31/2008 452.78 1.1196337 506.95 1,111 0.9989909 452.32
9/30/2008 437.32 1.1162225 488.15 1,081 0.9979829 436.44
10/31/2008 435.63 1.1128218 484.78 1,051 0.9969758 434.31
11/30/2008 435.55 1.1094313 483.21 1,021 0.9959698 433.79
12/31/2008 461.02 1.1060512 509.91 991 0.9949648 458.70
1/31/2009 438.51 1.1026814 483.54 961 0.9939608 435.86
228/2009 325.30 1.0993219 357.61 931 0.9930246 323.03
3/312009 362.53 1.0959726 397.32 901 0.9919558 359.61
4/302009 383.62 1.0926335 419.16 871 0.9909548 380.15
51312009 425.91 1.0893046 463.95 841 0.9899549 421.63
6/302009 235.64 1.0859858 255.90 811 0.9889559 233.04
71312009 221.71 1.0826771 240.04 781 0.9879580 219.04
8/312009 210.59 1.0793785 227.31 751 0.9869611 207.84
9/302009 187.82 1.0760900 202.11 721 0.9859651 185.18
10/31/2009 218.76 1.0728115 234.69 691 0.9849702 215.47
11/302009 112.31 1.0695429 120.12 661 0.9839763 110.51
121102009 1,369.20 1.0684556 1,462.93 651 0.9836452 1,346.81
12/312009 62.15 1.0662843 66.27 631 0.9829834 61.09
1/31/2010 69.06 1.0630357 73.41 601 0.9819915 67.82
2/42010 11,471.35 1.0626033 12,189.49 597 0.9818593 11,263.25
2282010 52.78 1.0597970 55.94 571 0.9810666 51.78
3/312010 58.27 1.0565681 61.57 541 0.9800106 57.11
4/82010 14,269.51 1.0557087 15,064.45 533 0.9797468 13,980.51
4/302010 58.99 1.0533490 62.14 511 0.9790217 57.75
5202010 702.00 1.0512084 737.95 491 0.9783630 686.81
5/312010 58.41 1.0501398 61.34 481 0.9780338 57.13
6/172010 60.00 1.0483256 62.90 464 0.9774744 58.65
6/302010 52.17 1.0469403 54.62 451 0.9770469 50.97
7/312010 53.46 1.0437506 55.80 421 0.9760610 52.18
8/52010 54,256.00 1.0432199 56,600.94 416 0.9758968 52,948.25
8/312010 39.87 1.0405706 41.49 391 0.9750760 38.88
9/162010 164.00 1.0388786 170.38 375 0.9745512 159.83
9222010 2,436.00 1.0382448 2,529.16 369 0.9743544 2,373.53
9/302010 127,402.90 1.0374003 132,167.81 361 0.9740921 124,102.16
9/302010 37.23 1.0374003 38.62 361 0.9740921 36.27
IOn2010 24,545.26 1.0366620 25,445.14 354 0.9738627 23,903.71
10/312010 1.41 1.0342397 1.46 331 0.9731092 1.37
5,902.96 (12,908.54) (0.00)
1012412077 -17- Gihnare&Bell,P.C.
City of Salina,Kansas
General Obligation Internal Improvement Bonds
Series 2008-A
Arbitrage Rebate Computation Investment Yield
Future Present
Net Value Future Value Present
Investment Factor @ Value to Number Factor @ Value to
Date Activity 3.695342% 10/1/2011 of Days 1.215188% 7130/2008
Summary of: Fund 711-Pacific Avenue
Arbitrage Rebate Amount: S (12,908.54)
Total Investment Earnings: 5,902.96
Investment Yield: 1.2152
Average Amount Invested: $ 215,896
Total Time Invested: 2.25 years
1012412011 -18- Gilmore&Be!!,P.C.
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-A
Cash and Investment Activity
Total
Cash Transactions Investments Cash and
Date Cash In Cash Out Balance Purchase Receipt Earnings Balance Investments
7/30/2008 43,735.96 43,735.96 - - -
Totals 43,735.96 43,735.96 - - -
Cash Out Less Cash In: -
Investment Receipts minus Purchases: -
1012412011 -19- Gilmore&Bell,P.C.
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-A
Arbitrage Rebate Computation Investment Yield
Future Present
Net Value Future Value Present
Investment Factor @ Value to Number Factor @ Value to
Date Activity 3.695342% 10/1/2011 of Days 0.000000% 7/30/2008
7/30/2008 - 1.1230553 - 1,141 1.0000000 -
Summary of: Fund 690-Glenn Ave
Arbitrage Rebate Amount: $ -
Total Investment Earnings: -
Investment Yield: 0.0000%
Average Amount Invested: $ -
Total Time Invested: 0.00 years
1012412011 -20- Gilmore&Bell,P.C.
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-A
Arbitrage Rebate Computation
Future
Value Future
Factor @ Value to Number
Date Description Amount 3.695342% 10/1/2011 of Days
10/1/2008 Computation Credit (1,430.00) 1.1161090 (1,596.04) 1,080
10/1/2009 Computation Credit (1,490.00) 1.0759805 (1,603.21) 720
10/1/2010 Computation Credit (1,500.00) 1.0372948 (1,555.94) 360
10/1/2011 Computation Credit (1,520.00) 1.0000000 (1,520.00) -
(5,940.00)
Total Adjustments: $ (6,275.19)
1012412011 -21- Gilmore&Bell,P.C.
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-A
NN"eighted Average Yields as Provided by Issuer
Month Month Beg. Month End. Overall Yld
Jul-08 7/1/2008 7/31/2008 2.165%
Aug-08 8/l/2008 8/31/2008 2.246%
Sep-08 9/1/2008 9/30/2008 2.248%
Oct-08 10/1/2008 10/31/2008 2.167%
Nov-08 11/1/2008 11/30/2008 2.239%
Dec-08 12/1/2008 12/31/2008 2.294%
Jan-09 1/1/2009 1/31/2009 2.182%
Feb-09 2/1/2009 2/28/2009 1.792%
Mar-09 3/1/2009 3/31/2009 1.804%
Apr-09 4/1/2009 4/30/2009 1.972%
May-09 5/1/2009 5/31/2009 2.119%
Jun-09 6/l/2009 6/30/2009 1.211%
Jul-09 7/1/2009 7/31/2009 1.103%
Aug-09 8/l/2009 8/31/2009 1.048%
Sep-09 9/1/2009 9/30/2009 0.965%
Oct-09 10/1/2009 10/31/2009 1.088%
Nov-09 11/1/2009 11/30/2009 0.577%
Dec-09 12/1/2009 12/31/2009 0.310%
Jan-10 1/1/2010 1/31/2010 0.346%
Feb-10 2/1/2010 2/28/2010 0.305%
Mar-10 3/1/2010 3/31/2010 0.306%
Apr-10 4/1/2010 4/30/2010 0.336%
May-10 5/1/2010 5/31/2010 0.329%
Jun-10 6/1/2010 6/30/2010 0.304%
Jul-10 7/1/2010 7/31/2010 0.301%
Aug-10 8/1/2010 8/31/2010 0.287%
1012412011 -22- Gilmore&Bell,P.C.
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-A
Sep-10 9/1/2010 9/30/2010 0.295%
Oct-10 10/1/2010 10/31/2010 0.300%
Nov-10 11/1/2010 11/30/2010 0.262%
Dec-10 12/1/2010 12/31/2010 0.240%
Jan-11 1/1/2011 1/31/2011 0.227%
Feb-11 2/1/2011 2/28/2011 0.232%
Mar-11 3/1/2011 3/31/2011 0.231%
Apr-11 4/1/2011 4/30/2011 0.316%
May-11 5/1/2011 5/31/2011 0.316%
Jun-11 6/1/2011 6/30/2011 0.308%
Jul-11 7/1/2011 7/31/2011 0.301%
Aug-11 8/1/2011 8/31/2011 0.225%
Sep-11 9/1/2011 9/30/2011 0.287%
1012412011 -23- Gilmore&Bell,P.C.