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Arbitrage Report - 2011 GILMORE & BELL A PROFESSIONAL CORPORATION ATTORNEYS AT LAW 816-221-1000 ST.LOUIS,MISSOURI FAX:816-221-1016 2405 GRAND BOULEVARD,SUITE 1100 WICHITA,KANSAS WWW.GILMORESELL.COM KANSAS CITY, MISSOURI 64108-2521 LINCOLN,NEBRASKA October 13, 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: $6,545,000 City of Salina, Kansas General Obligation Internal Improvement Bonds, Series 2007-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 $9,260.94. 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, Jennifer L. Richardson 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 13, 2011 City of Salina, Kansas Re: $6,545,000 City of Salina, Kansas General Obligation Internal Improvement Bonds, Series 2007-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 $9,260.94. 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, LKM:'Ir GILMORE & BELL, P.C. 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 $6,545,000 City of Salina, Kansas (the "Issuer") General Obligation Internal Improvement Bonds, Series 2007-A (the"Bonds"). This explanation accompanies our legal opinion dated October 13, 2011. General Matters The time period covered by the Arbitrage Analysis (the "Computation Period") began June 27, 2007 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 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). Commingled Fund or Account The Improvement Fund contained both Bond proceeds and other money. In preparing the Arbitrage Analysis, expenditures from the fund were allocated between Bond proceeds and other money using a bond proceeds spent first accounting method. The Improvement Fund contained Bond proceeds and proceeds of the Issuer's $5,825,000 General Obligation Temporary Notes, Series 2007-1 (the "Notes"). We calculated the investment return on all money in the fund and allocated a pro rata portion of the overall investment results to the Bonds based on the relative sources of amounts invested Yield Reduction Payment–Restricted Investment The Improvement Fund was required to be invested at a yield not materially higher than the yield on the Bonds during the period June 27, 2010 - October 1, 2011. We determined that the yield on the investments in the Improvement Fund did not exceed the yield on the Bonds during this period. 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 I I Exhibit B Arbitrage Rebate Analysis Computed as of October 1, 2011 City of Salina, Kansas General Obligation Internal Improvement Bonds Series 2007-A GILMORE BELL G I L M O R E & BELL. PC City of Salina, Kansas General Obligation Internal Improvement Bonds Series 2007-A Results as of October 1,2011 Summary of Issue Par $6,545,000 Issue Date June 27,2007 Bond Year Date October 1 Bond Yield 4.37940% Computation Date October 1,2011 Summary of Rebate Computation Computation Results Rebate Liability by Source • Total Rebate Amount ($9,260.94) Fund 756-Liberty Sewer Phase I 21.93 Fund 753-North Ohio Overpass (58.13) Fund 773-Golden Eagle 271.79 Fund 767-West Grand Water Extension 174.65 Fund 775-Piercy Addition 129.26 • No arbitrage rebate payment is due at this time. Fund 777-Lakeside Addition 58.21 The net rebate amount as of October 1,2011 is Fund 776-Quail Meadows,Phase II (170.75) ($9,260.94). Fund 765-North Broadway Blvd. (1,359.71) Fund 774-Magnolia Hills Subdivision (323.56) Credits&Adjustments (8,004.62) Total Rebate Amount (9,260.94) ($25,000) $0 $25,000 10/13/2011 -1- Gilmore&Bell,P.C. City of Salina, Kansas General Obligation Internal Improvement Bonds Series 2007-A Comments and Yield Comparison Comments • We understand that the Debt Service Accounts qualified as a bona fide debt service fund for all bond years during this computation period. • No future calculations will be necessary if the conditions in our opinion are met. Yield Comparison As of 10/1/2011 8.00% Bond Yle d=4.38% 6.00% 5.04% 5.04% 5.04% 5.03% 5.04% 4.09% 4.04% 4.13% 4.00 2.00% A- 0.00% Fund 774- Fund 765- Fund 776- Fund 777- Fund 775- Fund 767- Fund 773- Fund 753- Fund 756- Magnolla Hills North Quail Lakeside Piercy West Grand Golden Eagle North Ohio Liberty Sewer Subdivision Broadway Meadows, Addition Addition Water Overpass Phase I Blvd. Phase II Extension 10/13/2011 -2- Gilmore&Bell,P.C. r �■r �■r r �■r r r r r rr r r r r rr r r r �■r City of Salina,Kansas General Obligation Internal Improvement Bonds Series 1007-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 6/27/2007 790,029.00 54,501.19 735,527.81 735,527.81 735,527.81 5.0559% 6/27/2007 703.54 703.54 734,824.27 734,824.27 5.0559% - - 6/30/2007 305.36 305.36 734,824.27 734,824.27 5.0559% 734,824.27 3 305.36 7/5/2007 641.49 641.49 734,182.78 734,182.78 5.0559% 734,824.27 5 508.93 7/12/2007 1,825.22 1,825.22 732,357.56 732,357.56 5.0559% 734,182.78 7 711.88 7/26/2007 1,126.76 1,126.76 731,230.80 731,230.80 5.0559% 732,357.56 14 1,420.22 7/31/2007 698,676.31 695,528.84 3,147.47 35,701.96 35,701.96 5.0559% 731,230.80 5 506.44 8/31/2007 151.32 151.32 35,701.96 35,701.96 4.9905% 35,701.96 31 151.32 9/30/2007 144.16 144.16 35,701.96 35,701.96 4.9128% 35,701.96 30 144.16 10/31/2007 143.52 143.52 35,701.96 35,701.96 4.7333% 35,701.96 31 143.52 11/30/2007 132.77 132.77 35,701.96 35,701.96 4.5246% 35,701.96 30 132.77 12/31/2007 127.35 127.35 35,701.96 35,701.96 4.2000% 35,701.96 31 127.35 1/31/2008 108.21 108.21 35,701.96 35,701.96 3.5687% 35,701.96 31 108.21 2/29/2008 87.87 87.87 35,701.96 35,701.96 3.0978% 35,701.96 29 87.87 3/31/2008 71.30 71.30 35,701.96 35,701.96 2.3514% 35,701.96 31 71.30 4/30/2008 65.78 65.78 35,701.96 35,701.96 2.2417% 35,701.96 30 65.78 5/31/2008 64.34 64.34 35,701.96 35,701.96 2.1220% 35,701.96 31 64.34 6/30/2008 57.49 57.49 35,701.96 35,701.96 1.9590% 35,701.96 30 57.49 7/31/2008 65.65 65.65 35,701.96 35,701.96 2.1650% 35,701.96 31 65.65 8/31/2008 68.10 68.10 35,701.96 35,701.96 2.2459% 35,701.96 31 68.10 9/30/2008 65.97 65.97 35,701.96 35,701.96 2.2481% 35,701.96 30 65.97 10/31/2008 65.71 65.71 35,701.96 35,701.96 2.1672% 35,701.96 31 65.71 11/30/2008 65.70 65.70 35,701.96 35,701.96 2.2390% 35,701.96 30 65.70 12/31/2008 69.54 69.54 35,701.96 35,701.96 2.2935% 35,701.96 31 69.54 1/31/2009 66.15 66.15 35,701.96 35,701.96 2.1815% 35,701.96 31 66.15 2/28/2009 49.07 49.07 35,701.96 35,701.96 1.7917% 35,701.96 28 49.07 3/26/2009 35,701.96 35,701.96 - - 1.8035% 35,701.96 26 45.87 3/31/2009 45.87 - 45.87 1.8035% - - Totals 790,029.00 795,197.70 735,527.81 735,527.81 5,168.70 5,168.70 Cash Out Less Cash In: 5,168.70 Investment Receipts minus Purchases: - 10/13/2011 -3- Gilmore&Bell,P.C. City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2007-A Arbitrage Rebate Com utation Investment Yield Future Present Net Value Future Value Present Investment Factor @ Value to Number Factor @ Value to Date Activity 4.379403% 10/1/2011 of Days 4.091590% 6/27/2007 6/27/2007 (735,527.81) 1.2027342 (884,644.44) 1,534 1.0000000 (735,527.81) 6/27/2007 703.54 1.2027342 846.17 1,534 1.0000000 703.54 6/30/2007 305.36 1.2023001 367.13 1,531 0.9996625 305.26 7/5/2007 641.49 1.2015769 770.80 1,526 0.9991003 640.91 7/12/2007 1,825.22 1.2005651 2,191.30 1,519 0.9983138 1,822.14 7/26/2007 1,126.76 1.1985442 1,350.47 1,505 0.9967426 1,123.09 7/31/2007 698,676.31 1.1979674 836,991.47 1,501 0.9961820 696,008.78 8/31/2007 151.32 1.1936504 180.62 1,471 0.9928253 150.23 9/30/2007 144.16 1.1893490 171.46 1,441 0.9895913 142.66 10/31/2007 143.52 1.18 50630 1 70.08 1,411 0.9861458 141.53 11/30/2007 132.77 1.1807925 156.77 1,381 0.9829335 130.50 12/31/2007 1 27.35 1.1765374 149.83 1,351 0.9795113 1 24.74 1/31/2008 108.21 1.1722976 126.85 1,321 0.9762108 105.64 2/29/2008 87.87 1.1680731 102.64 1,291 0.9731403 85.51 3/31/2008 71.30 1.1638638 82.98 1,261 0.9696430 69.14 4/30/2008 65.78 1.1596697 76.28 1,231 0.9664845 63.58 5/31/2008 64.34 1.1554907 74.34 1,201 0.9631195 61.97 6/30/2008 57.49 1.1513268 66.19 1,171 0.9599822 55.19 7/31/2008 65.65 1.1471779 75.31 1,141 0.9566399 62.80 8/31/2008 68.10 1.1430439 77.84 1,111 0.9534164 64.93 9/30/2008 65.97 1.1389248 75.13 1,081 0.9503107 62.69 10/31/2008 65.71 1.1348205 74.57 1,051 0.9470020 62.23 11/30/2008 65.70 1.1307311 74.29 1,021 0.9439173 62.02 12/31/2008 69.54 1.1266564 78.35 991 0.9406308 65.41 1/31/2009 66.15 1.1225963 74.26 961 0.9374613 62.01 2/28/2009 49.07 1.1185509 54.89 931 0.9346179 45.86 3/26/2009 35,701.96 1.1150567 39,809.71 905 0.9316783 33,262.74 3/31/2009 45.87 1.1145201 51.12 901 0.9311543 42.71 5,168.70 (323.56) (0.00) Summary of: Fund 774-Magnolia Hills Subdivision Arbitrage Rebate Amount: $ (323.56) Total Investment Earnings: 5,168.70 Investment Yield: 4.0916% Average Amount Invested: $ 71,730 Total Time Invested: 1.76 years 10/13/2011 -4- Gilmore&Bell,P.C. City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2007-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 6/27/2007 2,257,939.00 77,506.14 2,180,432.86 2,180,432.86 2,180,432.86 5.0559% 6/27/2007 1,957.93 1,957.93 2,178,474.93 2,178,474.93 5.0559% - 6/30/2007 905.27 905.27 2,178,474.93 2,178,474.93 5.0559% 2,178,474.93 3 905.27 7/5/2007 2,582.88 - 2,582.88 2,175,892.05 2,175,892.05 5.0559% 2,178,474.93 5 1,508.79 7/12/2007 5,216.56 - 5,216.56 2,170,675.49 2,170,675.49 5.0559% 2,175,892.05 7 2,109.80 7/26/2007 42,786.10 - 42,786.10 2,127,889.39 2,127,889.39 5.0559% 2,170,675.49 14 4,209.48 7/31/2007 1,858,013.06 - 1,848,711.24 9,301.82 279,178.15 279,178.15 5.0559% 2,127,889.39 5 1,473.75 8/23/2007 35,705.84 - 35,705.84 243,472.31 243,472.31 4.9905% 279,178.15 23 877.93 8/31/2007 1,144.24 - 1,144.24 243,472.31 243,472.31 4.9905% 243,472.31 8 266.31 9/30/2007 983.12 - 983.12 243,472.31 243,472.31 4.9128% 243,472.31 30 983.12 10/25/2007 41,209.63 - 41,209.63 202,262.68 202,262.68 4.7333% 243,472.31 25 789.33 10/31/2007 946.71 946.71 202,262.68 202,262.68 4.7333% 202,262.68 6 157.38 11/29/2007 34,786.30 34,786.30 167,476.38 167,476.38 4.5246% 202,262.68 29 727.11 11/30/2007 747.87 747.87 167,476.38 167,476.38 4.5246% 167,476.38 1 20.76 12/13/2007 26,788.54 26,788.54 140,687.84 140,687.84 4.2000% 167,476.38 13 250.53 12/31/2007 541.93 541.93 140,687.84 140,687.84 4.2000% 140,687.84 18 291.40 1/24/2008 17,773.99 17,773.99 122,913.85 122,913.85 3.5687% 140,687.84 24 330.13 1/31/2008 414.25 414.25 122,913.85 122,913.85 3.5687% 122,913.85 7 84.12 2/7/2008 24,913.94 24,913.94 97,999.91 97,999.91 3.0978% 122,913.85 7 73.02 2/28/2008 11,060.77 10,813.09 247.68 87,186.82 87,186.82 3.0978% 97,999.91 21 174.66 3/31/2008 174.12 174.12 87,186.82 87,186.82 2.3514% 87,186.82 31 174.12 4/24/2008 26,539.91 26,539.91 60,646.91 60,646.91 2.2417% 87,186.82 24 128.51 4/30/2008 150.86 150.86 60,646.91 60,646.91 2.2417% 60,646.91 6 22.35 5/22/2008 17,970.82 17,970.82 42,676.09 42,676.09 2.1220% 60,646.91 22 77.57 5/31/2008 99.90 99.90 42,676.09 42,676.09 2.1220% 42,676.09 9 22.33 6/26/2008 10,641.58 10,641.58 32,034.51 32,034.51 1.9590% 42,676.09 26 59.55 6/30/2008 66.43 66.43 32,034.51 32,034.51 1.9590% 32,034.51 4 6.88 7/31/2008 58.90 58.90 32,034.51 32,034.51 2.1650% 32,034.51 31 58.90 8/31/2008 61.11 - 61.11 32,034.51 32,034.51 2.2459% 32,034.51 31 61.11 9/30/2008 59.19 - 59.19 32,034.51 32,034.51 2.2481% 32,034.51 30 59.19 10/23/2008 137.64 - 137.64 31,896.87 31,896.87 2.1672% 32,034.51 23 43.75 10/31/2008 58.90 - 58.90 31,896.87 31,896.87 2.1672% 31,896.87 8 15.15 11/30/2008 58.70 - 58.70 31,896.87 31,896.87 2.2390% 31,896.87 30 58.70 12/31/2008 62.13 - 62.13 31,896.87 31,896.87 2.2935% 31,896.87 31 62.13 1/29/2009 2,507.89 - 2,507.89 29,388.98 29,388.98 2.1815% 31,896.87 29 55.29 1/31/2009 58.80 - 58.80 29,388.98 29,388.98 2.1815% 29,388.98 2 3.51 2/28/2009 40.39 - 40.39 29,388.98 29,388.98 1.7917% 29,388.98 28 40.39 3/31/2009 45.02 - 45.02 29,388.98 29,388.98 1.8035% 29,388.98 31 45.02 4/30/2009 47.64 - 47.64 29,388.98 29,388.98 1.9721% 29,388.98 30 47.64 5/31/2009 52.89 - 52.89 29,388.98 29,388.98 2.1188% 29,388.98 31 52.89 10/13/2011 -s- Gilmore&Bell,P.C. City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2007-A 765-North ACCOUNT NO.2: , 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 6/30/2009 29.26 29.26 29,388.98 29,388.98 1.2114% 29,388.98 30 29.26 7/31/2009 27.53 27.53 29,388.98 29,388.98 1.1030% 29,388.98 31 27.53 8/31/2009 26.15 26.15 29,388.98 29,388.98 1.0476% 29,388.98 31 26.15 9/30/2009 23.32 23.32 29,388.98 29,388.98 0.9655% 29,388.98 30 23.32 10/31/2009 27.16 27.16 29,388.98 29,388.98 1.0883% 29,388.98 31 27.16 11/30/2009 13.95 13.95 29,388.98 29,388.98 0.5774% 29,388.98 30 13.95 12/31/2009 7.75 7.75 29,388.98 29,388.98 0.3104% 29,388.98 31 7.75 1/31/2010 8.62 8.62 29,388.98 29,388.98 0.3455% 29,388.98 31 8.62 2/28/2010 6.88 6.88 29,388.98 29,388.98 0.3052% 29,388.98 28 6.88 3/31/2010 7.65 - 7.65 29,388.98 29,388.98 0.3065% 29,388.98 31 7.65 4/30/2010 8.13 - 8.13 29,388.98 29,388.98 0.3364% 29,388.98 30 8.13 5/31/2010 8.20 - 8.20 29,388.98 29,388.98 0.3286% 29,388.98 31 8.20 6/30/2010 7.34 - 7.34 29,388.98 29,388.98 0.3039% 29,388.98 30 7.34 7/31/2010 7.52 - 7.52 29,388.98 29,388.98 0.3015% 29,388.98 31 7.52 8/31/2010 7.18 - 7.18 29,388.98 29,388.98 0.2875% 29,388.98 31 7.18 9/30/2010 7.11 - 7.11 29,388.98 29,388.98 0.2945% 29,388.98 30 7.11 10/31/2010 7.48 - 7.48 29,388.98 29,388.98 0.2996% 29,388.98 31 7.48 11/30/2010 6.32 - 6.32 29,388.98 29,388.98 0.2616% 29,388.98 30 6.32 12/31/2010 5.99 - 5.99 29,388.98 29,388.98 0.2399% 29,388.98 31 5.99 1/31/2011 5.66 - 5.66 29,388.98 29,388.98 0.2266% 29,388.98 31 5.66 2/28/2011 5.24 - 5.24 29,388.98 29,388.98 0.2324% 29,388.98 28 5.24 3/28/2011 29,394.19 - 29,388.98 5.21 - - 0.2313% 29,388.98 28 5.21 Totals 2,257,939.00 2,274,526.52 2,180,432.86 2,180,432.86 16,587.52 16,587.52 Cash Out Less Cash In: 16,587.52 Investment Receipts minus Purchases: 10/1312011 -6- Gilmore&Bell,RC. City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2007-A ACCOUNI NO.2: Fund 765-North BroadNia.% MN d. Arbitrage Rebate Computation Investment Yield Future Present Net Value Future Value Present Investment Factor(n' Value to Number Factor C Value to Date Activity 4.379403% 10/1/2011 of Dais 4.037765% 6/27/2007 6/27/2007 (2,180,432.86) 1.2027342 (2,622,481.14) 1,534 1.0000000 (2,180,432.86) 6/27/2007 1,957.93 1.2027342 2,354.87 1,534 1.0000000 1,957.93 6/30/2007 905.27 1.2023001 1,088.41 1,531 0.9996669 904.97 7/5/2007 2,582.88 1.2015769 3,103.53 1,526 0.9991121 2,580.59 7/12/2007 5,216.56 1.2005651 6,262.82 1,519 0.9983357 5,207.88 7/26/2007 42,786.10 1.1985442 51,281.03 1,505 0.9967849 42,648.54 7/31/2007 1,858,013.06 1.1979674 2,225,839.15 1,501 0.9962317 1,851,011.43 8/23/2007 35,705.84 1.1946563 42,656.21 1,478 0.9938009 35,484.50 8/31/2007 1,144.24 1.1936504 1,365.82 1,471 0.9929184 1,13 6.14 9/30/2007 983.12 1.1893490 1,169.27 1,441 0.9897261 973.02 10/25/2007 41,209.63 1.1857763 48,865.40 1,416 0.9869824 40,673.18 10/31/2007 946.71 1.1850630 1,121.91 1,411 0.9863250 933.76 11/29/2007 34,786.30 1.1809346 41,080.35 1,382 0.9832631 34,204.09 11/30/2007 747.87 1.1807925 883.08 1,381 0.9831539 735.27 12/13/2007 26,788.54 1.1789468 31,582.26 1,368 0.9817357 26,299.27 12/31/2007 541.93 1.1765374 637.60 1,351 0.9797754 530.97 1/24/2008 17,773.99 1.1731444 20,851.46 1,327 0.9772763 17,370.10 1/31/2008 414.25 1.1722976 485.62 1,321 0.9765169 404.52 2/7/2008 24,913.94 1.1713105 29,181.96 1,314 0.9758665 24,312.68 2/28/2008 11,060.77 1.1683543 12,922.90 1,293 0.9735936 10,768.69 3/31/2008 174.12 1.1638638 202.65 1,261 0.9700324 168.90 4/24/2008 26,539.91 1.1605073 30,799.76 1,237 0.9675581 25,678.91 4/30/2008 150.86 1.1596697 174.95 1,231 0.9669137 145.87 5/22/2008 17,970.82 1.1566037 20,785.12 1,209 0.9645545 17,333.84 5/31/2008 99.90 1.1554907 115.43 1,201 0.9635910 96.26 6/26/2008 10,641.58 1.1518811 12,257.83 1,175 0.9609197 10,225.70 6/30/2008 66.43 1.1513268 76.48 1,171 0.9604930 63.81 7/31/2008 58.90 1.1471779 67.57 1,141 0.9571923 56.38 8/31/2008 61.11 1.1430439 69.85 1,111 0.9540090 58.30 9/30/2008 59.19 1.1389248 67.41 1,081 0.9509418 56.29 10/23/2008 137.64 1.1357769 156.33 1,058 0.9485162 130.55 10/31/2008 58.90 1.1348205 66.84 1,051 0.9476739 55.82 11/30/2008 58.70 1.1307311 66.37 1,021 0.9446271 55.45 12/31/2008 62.13 1.1266564 70.00 991 0.9413810 58.49 1/29/2009 2,507.89 1.1227314 2,815.69 962 0.9384586 2,353.55 1/31/2009 58.80 1.1225963 66.01 961 0.9382502 55.17 2/28/2009 40.39 1.1185509 45.18 931 0.9354414 37.78 3/31/2009 45.02 1.1145201 50.18 901 0.9320198 41.96 4/30/2009 47.64 1.1105038 52.90 871 0.9290233 44.26 5/31/2009 52.89 1.1065020 58.52 841 0.9258308 48.97 10/1312011 -7- Gilmore&Be!/,P.C. City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2007-A Arbitrage Rebate Computation Investment Yield Future Present Net Value Future Value Present Investment Factor @ Value to Number Factor @ Value to Date Activity 4.379403% 10/1/2011 of Days 4.037765% 6/27/2007 6/30/2009 29.26 1.1025146 32.26 811 0.9228542 27.00 7/31/2009 27.53 1.0985416 30.24 781 0.9196829 25.32 8/31/2009 26.15 1.0945828 28.62 751 0.9166242 23.97 9/30/2009 23.32 1.0906384 25.43 721 0.9136772 21.31 10/31/2009 27.16 1.0867082 29.51 691 0.9105375 24.73 11/30/2009 13.95 1.0827921 15.10 661 0.9076100 12.66 12/31/2009 7.75 1.0788901 8.36 631 0.9044911 7.01 1/31/2010 8.62 1.0750022 9.27 601 0.9014830 7.77 2/28/2010 6.88 1.0711283 7.37 571 0.8987842 6.18 3/31/2010 7.65 1.0672684 8.16 541 0.8954967 6.85 4/30/2010 8.13 1.0634224 8.65 511 0.8926177 7.26 5/31/2010 8.20 1.0595902 8.69 481 0.8895503 7.29 6/30/2010 7.34 1.0557719 7.75 451 0.8866903 6.51 7/31/2010 7.52 1.0519673 7.91 421 0.8836433 6.64 8131/2010 7.18 1.0481764 7.53 391 0.8807045 6.32 9/30/2010 7.11 1.0443992 7.43 361 0.8778730 6.24 10/31/2010 7.48 1.0406356 7.78 331 0.8748562 6.54 11/30/2010 6.32 1.0368855 6.55 301 0.8720435 5.51 12/31/2010 5.99 1.0331490 6.19 271 0.8690468 5.21 1/31/2011 5.66 1.0294259 5.83 241 0.8661566 4.90 2/28/2011 5.24 1.0257163 5.37 211 0.8635636 4.53 3/28/2011 29,394.19 1.0222660 30,048.68 183 0.8606916 25,299.33 16,587.52 (1,359.71) (0.00) Summary of: Fund 765-North Broadway Blvd. Arbitrage Rebate Amount: S (1,359.71) Total Investment Earnings: 16,587.52 Investment Yield: 4.0378% Average Amount Invested: $ 109,468 Total Time Invested: 3.75 years 10113/2011 -8- Gilmore&Bel/,RC. City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2007-A Cash and Investment Activity Imputed Interest Calculation 'I otal 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 6/27/2007 494,675.00 12,489.65 482,185.35 482,185.35 482,185.35 5.0559% - - 6/28/2007 377.90 377.90 481,807.45 481,807.45 5.0559% 482,185.35 1 66.79 6130/2007 200.27 200.27 481,807.45 481,807.45 5.0559% 481,807.45 2 133.48 7/5/2007 401.67 401.67 481,405.78 481,405.78 5.0559% 481,807.45 5 333.69 7/12/2007 1,142.86 1,142.86 480,262.92 480,262.92 5.0559% 481,405.78 7 466.78 7/16/2007 705.52 705.52 479,557.40 479,557.40 5.0559% 480,262.92 4 266.10 7/31/2007 451,913.72 449,850.74 2,062.98 29,706.66 29,706.66 5.0559% 479,557.40 15 996.41 8/31/2007 125.91 125.91 29,706.66 29,706.66 4.9905% 29,706.66 31 125.91 9/27/2007 7,500.00 - 7,500.00 22,206.66 22,206.66 4.9128% 29,706.66 27 107.96 9/30/2007 116.93 - 116.93 22,206.66 22,206.66 4.9128% 22,206.66 3 8.97 10/31/2007 89.27 - 89.27 22,206.66 22,206.66 4.7333% 22,206.66 31 89.27 11/30/2007 82.58 - 82.58 22,206.66 22,206.66 4.5246% 22,206.66 30 82.58 12/31/2007 79.21 - 79.21 22,206.66 22,206.66 4.2000% 22,206.66 31 79.21 1/31/2008 67.31 - 67.31 22,206.66 22,206.66 3.5687% 22,206.66 31 67.31 2/29/2008 54.66 - 54.66 22,206.66 22,206.66 3.0978% 22,206.66 29 54.66 3/31/2008 44.35 - 44.35 22,206.66 22,206.66 2.3514% 22,206.66 31 44.35 4/30/2008 40.92 - 40.92 22,206.66 22,206.66 2.2417% 22,206.66 30 40.92 5/31/2008 40.02 - 40.02 22,206.66 22,206.66 2.1220% 22,206.66 31 40.02 6/30/2008 35.76 - 35.76 22,206.66 22,206.66 1.9590% 22,206.66 30 35.76 7/31/2008 40.83 - 40.83 22,206.66 22,206.66 2.1650% 22,206.66 31 40.83 8/31/2008 42.36 - 42.36 22,206.66 22,206.66 2.2459% 22,206.66 31 42.36 9/30/2008 41.03 - 41.03 22,206.66 22,206.66 2.2481% 22,206.66 30 41.03 10/31/2008 40.87 - 40.87 22,206.66 22,206.66 2.1672% 22,206.66 31 40.87 11/30/2008 40.87 - 40.87 22,206.66 22,206.66 2.2390% 22,206.66 30 40.87 12/31/2008 43.26 - 43.26 22,206.66 22,206.66 2.2935% 22,206.66 31 43.26 1/31/2009 41.14 - 41.14 22,206.66 22,206.66 2.1815% 22,206.66 31 41.14 2/28/2009 30.52 - 30.52 22,206.66 22,206.66 1.7917% 22,206.66 28 30.52 3/26/2009 22,206.66 - 22,206.66 - - 1.8035% 22,206.66 26 28.53 3/31/2009 28.53 - 28.53 1.8035% - - Totals 494,675.00 498,064.58 482,185.35 482,185.35 3,389.58 3,389.58 Cash Out Less Cash In: 3,389.58 Investment Receipts minus Purchases: - 10/13/2011 -9- Gilmore&Be/1,P.C. City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2007-A Arbitrage Rebate Com utation Investment Yield Future Present Net Value Future Value Present Investment Factor @ Value to Number Factor @ Value to Date Activity 4.379403% 10/1/2011 of Days 4.133067% 6/27/2007 6/27/2007 (482,185.35) 1.2027342 (579,940.80) 1,534 1.0000000 (482,185.35) 6/28/2007 377.90 1.2025895 454.46 1,533 0.9998864 377.86 6/30/2007 200.27 1.2023001 240.78 1,531 0.9996591 200.20 7/5/2007 401.67 1.2015769 482.64 1,526 0.9990913 401.31 7/12/2007 1,142.86 1.2005651 1,372.08 1,519 0.9982969 1,140.91 7/16/2007 705.52 1.1999874 846.62 1,515 0.9978432 704.00 7/31/2007 451,913.72 1.1979674 541,377.92 1,501 0.9961438 450,171.05 8/31/2007 125.91 1.1936504 150.29 1,471 0.9927536 125.00 9/27/2007 7,500.00 1.1897784 8,923.34 1,444 0.9898248 7,423.69 9/30/2007 116.93 1.1893490 139.07 1,441 0.98948 74 115.70 10/31/2007 89.27 1.1850630 105.79 1,411 0.9860078 88.02 11/30/2007 82.58 1.1807925 97.51 1,381 0.9827638 81.16 12/31/2007 79.21 1.1765374 93.19 1,351 0.9793078 77.57 1/31/2008 67.31 1.1722976 78.91 1,321 0.9759749 65.69 2/29/2008 54.66 1.1680731 63.85 1,291 0.9728745 53.18 3/31/2008 44.35 1.1638638 51.62 1,261 0.9693431 42.99 4/30/2008 40.92 1_1596697 47.45 1,231 0.9661540 39.54 5/31/2008 40.02 1.1554907 46.24 1,201 0.9627564 38.53 6/30/2008 35.76 1.1513268 41.17 1,171 0.9595889 34.31 7/31/2008 40.83 1.1471779 46.84 1,141 0.9562144 39.04 8/31/2008 42.36 1.1430439 48.42 1,111 0.9529602 40.37 9/30/2008 41.03 1.1389248 46.73 1,081 0.9498249 38.97 10/31/2008 40.87 1.1348205 46.38 1,051 0.9464847 38.68 11/30/2008 40.87 1.1307311 46.21 1,021 0.9433708 38.56 12/31/2008 43.26 1.1266564 48.74 991 0.9400533 40.67 1/31/2009 41.14 1.1225963 46.18 961 0.9368540 38.54 2/28/2009 30.52 1.1185509 34.14 931 0.9339840 28.51 3/26/2009 22,206.66 1.1150567 24,761.69 905 0.9310169 20,674.78 3/31/2009 28.53 1.1145201 31.80 901 0.9304881 26.55 3,389.58 (170.75) (0.00) Summary of: Fund 776-Quail Meadows,Phase 11 Arbitrage Rebate Amount: $ (170.75) Total Investment Earnings: 3,389.58 Investment Yield: 4.1331% Average Amount Invested: $ 46,568 Total Time Invested: 1.76 years 10/13/2011 -1#- Gibnore&Bell,P.C. Mw � � City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2007-A ACCOI N I NO.4: Fund 777-Lakeside Addition 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 6/27/2007 72,479.54 5,916.00 66,563.54 66,563.54 66,563.54 5.0559% - - 6/30/2007 27.66 27.66 66,563.54 66,563.54 5.0559% 66,563.54 3 27.66 7/5/2007 58.65 58.65 66,504.89 66,504.89 5.0559% 66,563.54 5 46.10 7/12/2007 166.88 166.88 66,338.01 66,338.01 5.0559% 66,504.89 7 64.48 7/26/2007 103.02 103.02 66,234.99 66,234.99 5.0559% 66,338.01 14 128.65 7/31/2007 66,520.09 - 66,234.99 285.10 - - 5.0559% 66,234.99 5 45.87 Totals 72,479.54 72,792.30 66,563.54 66,563.54 312.76 312.76 Cash Out Less Cash In: 312.76 Investment Receipts minus Purchases: - l0/13/Z//Il 11- Gilmore&Bell,P.C. M w M M M � � M City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2007-A ACCOUNT NO.4: Fund 777-I.akeside Addition Arbitrage Rebate Com utation Investment Yield Future Present Net Value Future Value Present Investment Factor(a? Value to Number Factor(d Value to Date Activitv 4.379403% 10/1/2011 of Days 5.039145% 6/27/2007 6/27/2007 (66,563.54) 1.2027342 (80,058.25) 1,534 1.0000000 (66,563.54) 6/30/2007 27.66 1.2023001 33.26 1,531 0.9995854 27.65 7/5/2007 58.65 1.2015769 70.47 1,526 0.9988947 58.59 7/12/2007 166.88 1.2005651 200.35 1,519 0.9979285 166.53 7/26/2007 103.02 1.1985442 123.47 1,505 0.9959990 102.61 7/31/2007 66,520.09 1.1979674 79,688.90 1,501 0.9953108 66,208.16 312.76 58.21 0.00 Summary of: Fund 777-Lakeside Addition Arbitrage Rebate Amount: $ 58.21 Total Investment Earnings: 312.76 Investment Yield: 5.0391% Average Amount Invested: $ 65,717 Total Time Invested: 0.09 years 10/l3/Z(/11 -12- Gilmore&Bell,P.C. City of Salina, Kansas General Obligation Internal Improvement Bonds Series 2007-A Investments Date Purchase Receipt Earnings Balance 6/27/2007 147,901.00 - - 147,901.00 6/28/2007 - 112.99 - 147,788.01 6/30/2007 - - 61.43 147,788.01 7/5/2007 - 120.09 - 147,667.92 7/12/2007 - 341.69 - 147,326.23 7/26/2007 - 210.94 - 147,115.29 7/31/2007 - 147,115.29 633.11 - Totals 147,901.00 147,901.00 694.54 10/13/2011 -13- Gilmore&Bell,AC. City of Salina, Kansas General Obligation Internal Improvement Bonds Series 2007-A Arbitrage Rebate Computation Investment Yield Future Present Net Value Future Value Present Investment Factor @ Value to Number Factor @ Value to Date Activity 4.379403% 10/1/2011 of Days 5.039091% 6/27/2007 6/27/2007 (147,901.00) 1.2027342 (177,885.59) 1,534 1.0000000 (147,901.00) 6/28/2007 112.99 1.2025895 135.88 1,533 0.9998618 112.97 6/30/2007 61.43 1.2023001 73.86 1,531 0.9995854 61.40 7/5/2007 120.09 1.2015769 144.30 1,526 0.9988947 119.96 7/12/2007 341.69 1.2005651 410.22 1,519 0.9979285 340.98 7/26/2007 210.94 1.1985442 252.82 1,505 0.9959991 210.10 7/31/2007 147,748.40 1.1979674 176,997.77 1,501 0.9953109 147,055.59 694.54 129.26 0.00 Summary of: Fund 775 -Piercy Addition Arbitrage Rebate Amount: $ 129.26 Total Investment Earnings: 694.54 Investment Yield: 5.0391% Average Amount Invested: $ 145,938 Total Time Invested: 0.09 years 10/13/2011 -14- Gilmore&Bell,P.C. City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2007-A Allocation of Commingled Fund 775-PiercyAddition Total 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 6/27/2007 151,054.63 151,084.63 151,084.63 151,084.63 5.0559% - - 6/28/2007 112.99 112.99 150,971.64 150,971.64 5.0559% 151,084.63 1 20.93 6/30/2007 62.75 62.75 150,971.64 150,971.64 5.0559% 150,971.64 2 41.82 7/5/2007 120.09 120.09 150,851.55 150,851.55 5.0559% 150,971.64 5 104.56 7/12/2007 341.69 - 341.69 150,509.86 150,509.86 5.05590/. 150,851.55 7 146.27 7/26/2007 210.94 210.94 150,298.92 150,298.92 5.0559% 150,509.86 14 291.88 7/31/2007 150,945.73 - 150,298.92 646.81 - - 5.0559% 150,298.92 5 104.10 Totals 151,084.63 151,794.19 151,084.63 151,084.63 709.56 709.56 101731201 1 -is- Ginn A Be/4 AC City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2007-A Allocation Investment Activity Allocable to Series 2007A Investment Activity Allocable to Other Money Investment Investment Investment Invested Percent Investment Investment Investment Invested Date Purchase Receipt Earnings Balance of Total Purchase Receipt Earnings Balance 6/27/2007 147,901.00 - 147,901.00 97.89% 3,193.63 - 3,183.63 6/28/2007 - 112.99 147,788.01 97.890/. - - 3,183.63 6/30/2007 - 61.43 147,788.01 97.89% 1.32 3,183.63 7/5/2007 - 120.09 - 147,667.92 97.89% - - 3,183.63 7/12/2007 - 341.69 - 147,326.23 97.88% - - 3,183.63 7/26/2007 - 210.94 - 147,115.29 97.88% - 3,183.63 7/31/2007 - 147,115.29 633.11 - 97.88% - 3,183.63 13.70 - Totals 147,901.00 147,901.00 694.54 3,183.63 3,183.63 15.02 1011312011 -16- GUmore B Belo AC City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2007-A , 767-West Grand NN ater Extension Cash and Investment Activih 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 6/27/2007 201,950.00 2,138.57 199,811.43 199,811.43 199,811.43 5.0559% - - 6/28/2007 154.28 154.28 199,657.15 199,657.15 5.0559% 199,811.43 1 27.68 6/30/2007 82.99 82.99 199,657.15 199,657.15 5.0559% 199,657.15 2 55.31 7/5/2007 163.98 163.98 199,493.17 199,493.17 5.0559% 199,657.15 5 138.28 7/12/2007 466.57 - 466.57 199,026.60 199,026.60 5.0559% 199,493.17 7 193.43 7/26/2007 288.03 - 288.03 198,738.57 198,738.57 5.0559% 199,026.60 14 385.96 7/31/2007 199,593.88 - 198,738.57 855.31 - 5.0559a/a 198,738.57 5 137.64 Totals 201,950.00 202,888.30 199,811.43 199,811.43 938.30 938.30 Cash Out Less Cash In: 938.30 Investment Receipts minus Purchases: - 10/13/2011 -17- Gilmore&Bell,P.C. �r r� �r �r r r r r r r r r r �r r r r■ r r City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2007-A 767-West Grand Water Extension Arbitrage,Rebate Computation Investment Yield Future Present Net Value Future Value Present Investment Factor<d Value to Number Factor @ Value to Date Activity 4.379403% 10/1/2011 of Days 5.039195% 6/27/2007 6/27/2007 (199,811.43) 1.2027342 (240,320.04) 1,534 1.0000000 (199,811.43) 6/28/2007 154.28 1.2025895 185.54 1,533 0.9998618 154.26 6/30/2007 82.99 1.2023001 99.78 1,531 0.9995854 82.96 7/5/2007 163.98 1.2015769 197.03 1,526 0.9988947 163.80 7/12/2007 466.57 1.2005651 560.15 1,519 0.9979285 465.60 7/26/2007 288.03 1.1985442 345.22 1,505 0.9959990 286.88 7/31/2007 199,593.88 1.1979674 239,106.97 1,501 0.9953108 198,657.94 938.30 174.65 0.00 Summary of: Fund 767-West Grand Water Extension Arbitrage Rebate Amount: $ 174.65 Total Investment Earnings: 938.30 Investment Yield: 5.0392% Average Amount Invested: $ 197,153 Total Time Invested: 0.09 years 10/13/2011 -M- Gilmore&Be!/,P.C. City of Salina, Kansas General Obligation Internal Improvement Bonds Series 2007-A Investments Date Purchase Receipt Earnings Balance 6/27/2007 312,675.00 - - 312,675.00 6/28/2007 - 238.87 - 312,436.13 6/30/2007 - - 129.85 312,436.13 7/5/2007 - 253.89 - 312,182.24 7/12/2007 - 722.38 - 311,459.86 7/26/2007 - 445.95 - 311,013.91 7/31/2007 - 311,013.91 1,337.23 - Totals 312,675.00 312,675.00 1,467.08 10/13/2011 -19- Gilmore&Bell,P.0 ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! City of Salina, Kansas General Obligation Internal Improvement Bonds Series 2007-A Arbitrage Rebate Computation Investment Yield Future Present Net Value Future Value Present Investment Factor @ Value to Number Factor @ Value to Date Activity 4.379403% 10/1/2011 of Days 5.034812% 6/27/2007 6/27/2007 (312,675.00) 1.2027342 (376,064.91) 1,534 1.0000000 (312,675.00) 6/28/2007 238.87 1.2025895 287.26 1,533 0.9998619 238.84 6/30/2007 129.85 1.2023001 156.12 1,531 0.9995 857 129.80 7/5/2007 253.89 1.2015769 305.07 1,526 0.9988956 253.61 7/12/2007 722.38 1.2005651 867.26 1,519 0.9979303 720.88 7/26/2007 445.95 1.1985442 534.49 1,505 0.9960024 444.17 7/31/2007 312,351.14 1.1979674 374,186.50 1,501 0.9953148 310,887.71 1,467.08 271.79 0.00 Summary of: Fund 773 -Golden Eagle Arbitrage Rebate Amount: $ 271.79 Total Investment Earnings: 1,467.08 Investment Yield: 5.0348% Average Amount Invested: $ 308,528 Total Time Invested: 0.09 years 10/13/2011 -20- Gilmore&Bell,P.C. City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2007-A Total 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 6/27/2007 539,848.10 539,848.10 539,848.10 539,848.10 5.0559% - - 6/28/2007 238.87 238.87 539,609.23 539,609.23 5.0559% 539,848.10 1 74.78 6/30/2007 224.27 224.27 539,609.23 539,609.23 5.0559% 539,609.23 2 149.49 7/5/2007 253.89 253.89 539,355.34 539,355.34 5.0559% 539,609.23 5 373.73 7/12/2007 722.38 722.38 538,632.96 538,632.96 5.0559% 539,355.34 7 522.97 7/26/2007 445.95 445.95 538,187.01 538,187.01 5.0559% 538,632.96 14 1,044.54 7/31/2007 514,097.85 511,783.87 2,313.98 26,403.14 26,403.14 5.0559% 538,187.01 5 372.74 8/31/2007 111.91 111.91 26,403.14 26,403.14 4.9905% 26,403.14 31 111.91 9/30/2007 106.61 106.61 26,403.14 26,403.14 4.9128% 26,403.14 30 106.61 10/31/2007 106.14 106.14 26,403.14 26,403.14 4.7333% 26,403.14 31 106.14 11/30/2007 98.19 98.19 26,403.14 26,403.14 4.5246% 26,403.14 30 98.19 12/31/2007 94.18 94.18 26,403.14 26,403.14 4.2000% 26,403.14 31 94.18 1/31/2008 80.03 80.03 26,403.14 26,403.14 3.5687% 26,403.14 31 80.03 2/29/2008 64.99 64.99 26,403.14 26,403.14 3.0978% 26,403.14 29 64.99 3/31/2008 52.73 52.73 26,403.14 26,403.14 2.3514% 26,403.14 31 52.73 4/30/2008 48.65 48.65 26,403.14 26,403.14 2.2417% 26,403.14 30 48.65 5/31/2008 47.58 47.58 26,403.14 26,403.14 2.1220% 26,403.14 31 47.58 6/26/2008 6,146.12 6,146.12 20,257.02 20,257.02 1.9590% 26,403.14 26 36.84 6/30/2008 41.19 41.19 20,257.02 20,257.02 1.9590% 20,257.02 4 4.35 7/31/2008 37.25 37.25 20,257.02 20,257.02 2.1650% 20,257.02 31 37.25 8/31/2008 38.64 38.64 20,257.02 20,257.02 2.2459% 20,257.02 31 38.64 9/30/2008 37.43 37.43 20,257.02 20,257.02 2.2481% 20,257.02 30 37.43 10/31/2008 37.29 37.29 20,257.02 20,257.02 2.1672% 20,257.02 31 37.29 11/30/2008 37.28 37.28 20,257.02 20,257.02 2.2390% 20,257.02 30 37.28 12/31/2008 39.46 39.46 20,257.02 20,257.02 2.2935% 20,257.02 31 39.46 1/31/2009 37.53 37.53 20,257.02 20,257.02 2.1815% 20,257.02 31 37.53 2/28/2009 27.84 27.84 20,257.02 20,257.02 1.7917% 20,257.02 28 27.84 3/26/2009 20,257.02 20,257.02 - - 1.8035% 20,257.02 26 26.02 3/31/2009 26.02 26.02 1.8035% - - Totals 539,848.10 543,557.29 539,848.10 539,848.10 3,709.19 3,709.19 1011312011 -21- Gilmore&Bell,AC. City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2007-A Investment Activity Allocable to Series 2007A Investment Activity Allocable to Other Money Investment Investment Investment Invested Percent Investment Investment Investment Invested Date Purchase Receipt Earnings Balance of Total Purchase Receipt Earnings Balance 6/27/2007 312,675.00 - 312,675.00 57.92% 227,173.10 227,173.10 6/28/2007 - 238.87 312,436.13 57.90% - 227,173.10 6/30/2007 - 129.85 312,436.13 57.90% 94.42 227,173.10 7/5/2007 253.89 - 312,182.24 57.88% - 227,173.10 7/12/2007 722.38 311,459.86 57.82% 227,173.10 7/26/2007 445.95 311,013.91 57.79% 227,173.10 7/31/2007 311,013.91 1,337.23 - 0.00% 200,769.96 976.75 26,403.14 8/31/2007 - - 0.00% - 111.91 26,403.14 9/30/2007 0.00% 106.61 26,403.14 10/31/2007 0.00% 106.14 26,403.14 11/30/2007 0.00% 98.19 26,403.14 12/31/2007 0.00% 94.18 26,403.14 1/31/2008 0.00% 80.03 26,403.14 2/29/2008 0.00% 64.99 26,403.14 3/31/2008 0.00% 52.73 26,403.14 4/30/2008 0.00% 48.65 26,403.14 5/31/2008 0.00% - 47.58 26,403.14 6/26/2008 0.00% 6,146.12 - 20,257.02 6/30/2008 0.00% - 41.19 20,257.02 7/31/2008 0.00% 37.25 20,257.02 8/31/2008 0.00% 38.64 20,257.02 9/30/2008 0.00% 37.43 20,257.02 10/31/2008 0.00% 37.29 20,257.02 11/30/2008 0.00% 37.28 20,257.02 12/31/2008 0.00% 39.46 20,257.02 1/31/2009 0.00% 37.53 20,257.02 2/28/2009 0.00% - 27.84 20,257.02 3/26/2009 0.00% 20,257.02 - (0.00) 3/31/2009 0.00% - - 26.02 (0.00) Totals 312,675.00 312,675.00 1,467.08 227,173.10 227,173.10 2,242.11 10/1312011 -22- Gilmore&Bell,AC City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2007-A ACCOLN*'I'NO.8: Fund 753-North Ohio Overpass Cash and Investment Activity Imputed Interest Calculation total Relevant Relevant Days Cash Transactions Investments Cash and Investment In vested Invested Imputed Date Cash In Cash Out Balance Purchase Receipt Earnings Balance Investments Rate Balance (Actual) Earnings 6/27/2007 2,240,000.00 2,240,000.00 2,240,000.00 2,240,000.00 5.0559% - - 6/29/2007 2,223,500.00 2,223,500.00 16,500.00 16,500.00 5.05590/. 2,240,000.00 2 620.56 6/30/2007 622.85 622.85 16,500.00 16,500.00 5.05590/0 16,500.00 1 2.29 7/31/2007 70.85 70.85 16,500.00 16,500.00 5.0559% 16,500.00 31 70.85 8/31/2007 69.94 69.94 16,500.00 16,500.00 4.9905% 16,500.00 31 69.94 9/30/2007 66.63 66.63 16,500.00 16,500.00 4.9128% 16,500.00 30 66.63 10/31/2007 66.33 66.33 16,500.00 16,500.00 4.7333% 16,500.00 31 66.33 11/30/2007 61.36 61.36 16,500.00 16,500.00 4.5246% 16,500.00 30 61.36 12/31/2007 58.86 58.86 16,500.00 16,500.00 4.2000% 169500.00 31 58.86 1/31/2008 50.01 50.01 16,500.00 16,500.00 3.5687% 16,500.00 31 50.01 2/29/2008 40.61 40.61 16,500.00 16,500.00 3.0978% 169500.00 29 40.61 3/31/2008 32.95 32.95 16,500.00 16,500.00 2.3514% 16,500.00 31 32.95 4/30/2008 30.40 30.40 16,500.00 169500.00 2.2417% 16,500.00 30 30.40 5/31/2008 29.74 29.74 16,500.00 16,500.00 2.1220% 16,500.00 31 29.74 6/30/2008 26.57 26.57 169500.00 169500.00 1.9590% 16,500.00 30 26.57 7/17/2008 194.24 194.24 169305.76 16,305.76 2.1650% 16,500.00 17 16.64 7/24/2008 16,305.76 16,305.76 - - 2.1650% 16,305.76 7 6.77 7/31/2008 23.41 23.41 2.1650% - - Totals 2,240,000.00 2,241,250.51 2,240,000.00 2,240,000.00 1,250.51 1,250.51 Cash Out Less Cash In: 1,250.51 Investment Receipts minus Purchases: 10/13/2011 -23- Gilmore&Bell,P.C. City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2007-A ACCOL Arbitrage Rebate Computation Investment Yield Future Present Net Value Future Value Present Investment Factor(a Value to Number Factor(a) Value to Date Activity 4.379403% 10/1/2011 of Days 4.212420% 6/27/2007 6/27/2007 (2,240,000.00) 1.2027342 (2,694,124.58) 1,534 1.0000000 (2,240,000.00) 6/29/2007 2,223,500.00 1.2024448 2,673,635.91 1,532 0.9997684 2,222,985.11 6/30/2007 622.85 1.2023001 748.85 1,531 0.9996527 622.63 7/31/2007 70.85 1.1979674 84.88 1,501 0.9960707 70.57 8/31/2007 69.94 1.1936504 83.48 1,471 0.9926164 69.42 9/30/2007 66.63 1.1893490 79.25 1,441 0.9892887 65.92 10/31/2007 66.33 1.1850630 78.61 1,411 0.9857438 65.38 11/30/2007 61.36 1.1807925 72.45 1,381 0.9824392 60.28 12/31/2007 58.86 1.1765374 69.25 1,351 0.9789188 57.62 1/31/2008 50.01 1.1722976 58.63 1,321 0.9755241 48.79 2/29/2008 40.61 1.1680731 47.44 1,291 0.9723663 39.49 3/31/2008 32.95 1.1638638 38.35 1,261 0.9687698 31.92 4/30/2008 30.40 1.1596697 3525 1,231 0.9655221 29.35 5/31/2008 29.74 1.1554907 34.36 1,201 0.9620624 28.61 6130/2008 26.57 1.1513268 30.59 1,171 0.9588371 25.48 7/17/2008 194.24 1.1489739 223.18 1,154 0.9569514 185.88 7/24/2008 16,305.76 1.1480064 18,719.12 1,147 0.9561761 15,591.18 7/31/2008 23.41 1.1471779 26.86 1,141 0.9554013 22.37 1,250.51 (58.13) (0.00) Summary of: Fund 753-North Ohio Overpass Arbitrage Rebate Amount: $ (58.13) Total Investment Earnings: 1,250.51 Investment Yield: 4.2124% Average Amount Invested: $ 27,124 Total Time Invested: 1.09 years 10/13/2011 -24- Gilmore&Bell,P.C. City of Salina, Kansas General Obligation Internal Improvement Bonds Series 2007-A Investments Date Purchase Receipt Earnings Balance 6/27/2007 25,025.90 - - 25,025.90 6/28/2007 - 1.03 - 25,024.87 6/30/2007 - - 10.40 25,024.87 7/5/2007 - 1.10 - 25,023.77 7/12/2007 - 3.13 - 25,020.64 7/26/2007 - 65.63 - 24,955.01 7/31/2007 - 24,955.01 107.40 - Totals 25,025.90 25,025.90 117.80 10/13/2011 -29- Gilmore&Bell,P.C. City of Salina, Kansas General Obligation Internal Improvement Bonds Series 2007-A Arbitrage Rebate Computation Investment Yield Future Present Net Value Future Value Present Investment Factor @ Value to Number Factor @ Value to Date Activity 4.379403% 10/1/2011 of Days 5.039229% 6/27/2007 6/27/2007 (25,025.90) 1.2027342 (30,099.51) 1,534 1.0000000 (25,025.90) 6/28/2007 1.03 1.2025895 1.24 1,533 0.9998618 1.03 6/30/2007 10.40 1.2023001 12.50 1,531 0.9995854 10.39 7/5/2007 1.10 1.2015769 1.32 1,526 0.9988947 1.10 7/12/2007 3.13 1.2005651 3.76 1,519 0.9979285 3.12 7/26/2007 65.63 1.1985442 78.66 1,505 0.9959989 65.36 7/31/2007 25,062.41 1.1979674 30,023.96 1,501 0.9953107 24,944.89 117.80 21.93 0.00 Summary of: Fund 756-Liberty Sewer Phase I Arbitrage Rebate Amount: $ 21.93 Total Investment Earnings: 117.80 Investment Yield: 5.0392% Average Amount Invested: $ 24,752 Total Time Invested: 0.09 years 10/13/2011 -26- Gilmore&Bell,P.C. rr rr rr rr rr rr �r r rr ri rr r r� rr rr rr r rr �r City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2007-A FIRM EMU Total 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 6/27/2007 562,599.00 52,452.00 510,147.00 510,147.00 510,147.00 5.0559% - - 6/28/2007 21.08 21.08 510,125.92 510,125.92 5.0559% 510,147.00 1 70.66 6/30/2007 211.98 211.98 510,125.92 510,125.92 5.0559% 510,125.92 2 141.32 7/5/2007 22.41 22.41 510,103.51 510,103.51 5.0559% 510,125.92 5 353.31 7/12/2007 63.76 63.76 510,039.75 510,039.75 5.0559% 510,103.51 7 494.61 7/26/2007 1,337.78 1,337.78 508,701.97 508,701.97 5.0559% 510,039.75 14 989.09 7/31/2007 510,891.30 508,701.97 2,189.33 - - 5.0559% 508,701.97 5 352.32 Totals 562,599.00 565,000.31 510,147.00 510,147.00 2,401.31 2,401.31 10/13/2011 -27- Gilmore&Bell.P.C. City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2007-A Investment Activity Allocable to Series 2007A Investment Activity Allocable to Series 2007-1 Notes Investment Investment Investment Invested Percent Investment Investment Investment Invested Percent Date Purchase Receipt Earnings Balance of Total Purchase Receipt Earnings Balance of Total 6/27/2007 25,025.90 - 25,025.90 4.91% 485,121.10 - 485,121.10 95.09% 6/28/2007 - 1.03 25,024.87 4.91% - 20.05 485,101.05 95.09% 6/30/2007 - 10.40 25,024.87 4.91% - 201.58 485,101.05 95.09% 7/5/2007 1.10 - 25,023.77 4.91% 21.31 - 485,079.74 95.09% 7/12/2007 3.13 25,020.64 4.91% 60.63 485,019.11 95.09% 7/26/2007 65.63 24,955.01 4.91% 1,272.15 483,746.96 95.09% 7/31/2007 - 24,955.01 107.40 - 4.91% - 483,746.96 2,081.93 - 95.09% Totals 25,025.90 25,025.90 117.80 485,121.10 485,121.10 2,283.51 10/13/2011 -28- Gilmore&Bell,P.C. City of Salina, Kansas General Obligation Internal Improvement Bonds Series 2007-A Arbitrage Rebate Computation Future Value Future Factor @ Value to Number Date Description Amount 4.379403% 10/1/2011 of Days 10/1/2007 Computation Credit (1,400.00) 1.1892059 (1,664.89) 1,440 10/1/2008 Computation Credit (1,430.00) 1.1387877 (1,628.47) 1,080 10/1/2009 Computation Credit (1,490.00) 1.0905072 (1,624.86) 720 10/1/2010 Computation Credit (1,500.00) 1.0442735 (1,566.41) 360 10/1/2011 Computation Credit (1,520.00) 1.0000000 (1,520.00) - (7,340.00) Total Adjustments: $ (8,004.62) 10/13/2011 -29- Gilmore&Bell,P.C. City of Salina, Kansas General Obligation Internal Improvement Bonds Series 2007-A Weighted Average Yields as Provided by Issuer Month Month Beg. Month End. Overall Yld Jun-07 6/1/2007 6/30/2007 5.056% Jul-07 7/1/2007 7/31/2007 5.056% Aug-07 8/l/2007 8/31/2007 4.991% Sep-07 9/1/2007 9/30/2007 4.913% Oct-07 10/1/2007 10/31/2007 4.733% Nov-07 l l/l/2007 11/30/2007 4.525% Dec-07 12/1/2007 12/31/2007 4.200% Jan-08 1/l/2008 1/31/2008 3.569% Feb-08 2/1/2008 2/29/2008 3.098% Mar-08 3/1/2008 3/31/2008 2.351% Apr-08 4/1/2008 4/30/2008 2.242% May-08 5/1/2008 5/31/2008 2.122% Jun-08 6/1/2008 6/30/2008 1.959% Jul-08 7/1/2008 7/31/2008 2.165% Aug-08 8/1/2008 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% 10/13/2011 -30- Gilmore&Bell,P.C. City of Salina, Kansas General Obligation Internal Improvement Bonds Series 2007-A Weighted Average Yields as Pro%-icled by Issuer Month Month Beg. Month End. Overall Yld Jul-09 7/1/2009 7/31/2009 1.103% Aug-09 8/1/2009 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% 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% 10/13/2011 -31- Gilmore&Bell,P.0