Arbitrage Report (12-2011) 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.GILMOREBELL.COM KANSAS CITY, MISSOURI 64108-2521 LINCOLN,NEBRASKA
December 28, 2011
Mr. Rod Franz, C.P.F.O
Director of Finance
City of Salina
300 West Ash Street, Room 206
P.O.Box 736
Salina,Kansas 67402-0736
Re: $3,525,000 City of Salina, Kansas General Obligation Internal Improvement Bonds,
Series 2008-B (the"Bonds")
Dear Rod:
Enclosed are the following documents.related to our computation of arbitrage rebate in
connection with the above-referenced Bonds:
• - Exhibit A-Explanation of Arbitrage Rebate Analysis
• Exhibit B -Arbitrage Rebate Analysis as of December 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 $48,551.98.
Under the Internal Revenue Code, the'first required installment computation date is the earlier of
December 1, 2013 or the date the last Bond is paid. The next annual computation will be December 1,
2012.
Please call me if you have any questions.
Very truly yours,
Jennifer L. Richardson
JLR:sg
Enclosures
cc: Bonnie Mosher(with enclosures)
Ryan Boatright
Gary Anderson
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 December 1, 2011 (the "Arbitrage Analysis")
for the $33,525,000 City of Salina, Kansas (the "Issuer") General Obligation Internal Improvement
Bonds, Series 2008-B (the"Bonds").
General Matters
The time period covered by the Arbitrage Analysis (the "Computation Period") began
December 23, 2008 and ended December 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 (the "Investment Records")
provided by.UMB Bank, N.A. 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 Tax Compliance Agreement.
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
Bond proceeds were allocated to expenditures on the dates reflected in the Investment Records
for the project fund and costs of issuance 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.
Gross proceeds of the Bonds were allocated to investment purchases and receipts based on the
dates shown 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.
A portion of the revenue fund, debt service fund and redemption fund, in the aggregate, did not
qualify-as a bona fide debt service fund during any bond year because it was funded at an amount in
excess of the minimum balance limitation. We calculated rebate on these excess balances during these
years.
2
! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !
Exhibit B
Arbitrage Rebate Analysis
Computed as of December 1, 2011
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-B
GILMOREBELL
G I L M O R E & BELL, P C
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-B
Results as of December 1,2011
Summary of Issue Allocation of Proceeds
Par $3,525,000 Project Fund
Issue Date December 23,2008 85.0%
Bond Year Date July I Reserve Fund
6.8%
Bond Yield 4.36129%
Computation Date December 1,2011 i 4%
Debt Service
Fund
6.8%
Summary of Rebate Computation
Computation Results Rebate Liability by Source
• Total Rebate Amount ($48,551.98) Redemption Fund (6,204.81)
Debt Service Funds-Bond Year Ending (6,603.63)
7.1.2010
Debt Service Funds-Bond Year Ending
7.1.2009 (1,103.01)
• No arbitrage rebate payment is due at this time. Costs or issuance Fund (340.94)
The net rebate amount as of December 1,2011 is Project Fund (1,335.10)
($48,551.98).
Debt Service Reserve Fund (28,168.43)
Credits&Adjustments (4,795.86)
Total Rebate Amount (48,551.98)
($100,000) ($50,000) $0
1212812011 -1- Gilmore&Bell,P.C.
City of Salina,Kansas
General Obligation Internal Improvement Bonds
Series 2008-B
Comments and Yield Comparison
Comments
• Debt Service Accounts failed to qualify as a bona
fide debt service fund for all bond years during this
computation period.
• The next annual rebate computation will be
12/1/2012.
Yield Comparison
As of 12/1/2011
8.00%
6.00% Bond Yield=4.36%
4.00%
2.00%
0.00%
Debt Service Project Fund Costs of Issuance Debt Service Debt Service Redemption Fund
Reserve Fund Fund Funds'Bond Year Funds-Bond Year
Ending 7.1.2009 Ending 7.1.2010
1212812011 -2- Gilmore&Bell,P.C.
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-B
REBATE Results as of December 1,2011
Summary of Debt Service Accounts
Issue Date December 23,2008
Bond Year Date July 01
Funds/Accounts • Revenue Fund
• Debt Service Fund
Bona Fide Debt Service Fund Test
Analysis of Debt Service Fund Balances
Bond Year Debt Service
End Date Minimum Balance Reasonable Carryover Funds Depleted
July 1,2009 $ 154,595 $ 7,014 No
July 1,2010 154,595 12,883 No
July 1,2011 9,827 22,050 Yes
Conclusions
• The Debt Service Accounts failed to qualify as a bona fide debt service fund. Funds were not
depleted for bond years ended 7/1/2009 and 7/1/2010. We computed rebate on the portion of
funds in excess of a reasonable carryover amount for these time periods.
1212812011 -3- Gilmore&Bell,P.C.
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-B
ACCOUNTNO. 1: I)el)t Service Reserve Fund
Cash and Investment Activity
Total
Cash Transactions Investments Cash and
Date Cash In Cash Out Balance Purchase Receipt Earnings Balance Investments
12/23/2008 240,000.00 240,000.00 - 240,000.00
5/5/2009 - 240,000.00 240,000.00 240,000.00
12/1/2011 240,000.00 - 240,000.00 - -
Totals 240,000.00 240,000.00 240,000.00 240,000.00 -
Cash Out Less Cash In: -
Investment Receipts minus Purchases: -
1212812011 -4- Gilmore&Bell,P.C.
ra ■a �a a� a a� ■a as � a as at as a� as rya alp as as
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-B
WCOUNTNO. 1: Debt Service lleserve Fund
Arbitrage Rebate Computation Investment Yield
Future Present
Net Value Future Value Present
Investment Factor @ Value to Number Factor @ Value to
Date Activity 4.361287% 12/1/2011 of Days 0.000000% 12/23/2008
12/23/2008 - 1.1351853 - 1,058 1.0000000 -
5/5/2009 (240,000.00) 1.1173685 (268,168.43) 926 1.0000000 (240,000.00)
12/1/2011 240,000.00 1.0000000 240,000.00 - 1.0000000 240,000.00
- (28,168.43) 0.00
Summary of: Debt Service Reserve Fund
Arbitrage Rebate Amount: $ (28,168.43)
Total Investment Earnings: -
Investment Yield: 0.0000%
Average Amount Invested: 240,000.00
Total Time Invested: 2.94 years
1212812011 -5- Gilmore&Bell,AC.
as a M � as M M M M as > � a a M M
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-B
ACCOUNTNO. 2: Project Fand
Cash and Investment Activity
Total
Cash Transactions Investments Cash and
Date Cash In Cash Out Balance Purchase Receipt Earnings Balance Investments
12/23/2008 3,000,000.00 2,800,000.00 200,000.00 - 200,000.00
5/5/2009 - 200,000.00 200,000.00 200,000.00
6/25/2009 200,000.00 - 200,000.00 - -
Totals 3,000,000.00 3,000,000.00 200,000.00 200,000.00 -
Cash Out Less Cash In: -
Investment Receipts minus Purchases: -
1212812011 -6- Gilmore&Bell,P.C.
M r r art
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-B
ACCOUNTNO. 2: Project Fund
Arbitrage Rebate Computation Investment Yield
Future Present
Net Value Future Value Present
Investment Factor @ Value to Number Factor @ Value to
Date Activity 4.361287% 12/1/2011 of Days 0.000000% 12/23/2008
12/23/2008 - 1.1351853 - 1,058 1.0000000 -
5/5/2009 (200,000.00) 1.1173685 (223,473.69) 926 1.0000000 (200,000.00)
6/25/2009 200,000.00 1.1106929 222,138.59 876 1.0000000 200,000.00
- (1,335.10) -
Summary of: Project Fund
Arbitrage Rebate Amount: $ (1,335.10)
Total Investment Earnings: -
Investment Yield: 0.0000%
Average Amount Invested: $ 200,000
Total Time Invested: 0.51 years
1212812011 - 7- Gilmore&Bell,P.C.
r rA r M am � r at r
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-B
ACCOUNTNO.3: Costs of Isstuance Fund
Cash and Investment Activity
Total
Cash Transactions Investments Cash and
Date Cash In Cash Out Balance Purchase Receipt Earnings Balance Investments
12/23/2008 49,672.05 49,672.05 - 49,672.05
12/30/2008 33,548.26 16,123.79 - 16,123.79
1/23/2009 5,279.00 10,844.79 - 10,844.79
5/5/2009 - 10,844.79 10,844.79 10,844.79
5/11/2009 5,250.00 - 5,250.00 5,594.79 5,594.79
8/17/2010 5,594.79 - 5,594.79 - -
Totals 49,672.05 49,672.05 10,844.79 10,844.79 -
Cash Out Less Cash In: -
Investment Receipts minus Purchases: -
1212812011 -8- Gilmore&Bell,P.C.
M am M M!
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-B
,kCCOUNTNO. 3: Costs of Issuance 1,'und
Arbitrage Rebate Computation Investment Yield
Future Present
Net Value Future Value Present
Investment Factor @ Value to Number Factor @ Value to
Date Activity 4.361287% 12/1/2011 of Days 0.000000% 12/23/2008
12/23/2008 - 1.1351853 - 1,058 1.0000000 -
12/30/2008 - 1.1342333 - 1,051 1.0000000
1/23/2009 - 1.1311112 - 1,028 1.0000000 -
5/5/2009 (10,844.79) 1.1173685 (12,117.63) 926 1.0000000 (10,844.79)
5/11/2009 5,250.00 1.1165653 5,861.97 920 1.0000000 5,250.00
8/17/2010 5,594.79 1.0571832 5,914.72 464 1.0000000 5,594.79
- (340.94) -
Summary of: Costs of Issuance Fund
Arbitrage Rebate Amount: $ (340.94)
Total Investment Earnings: -
Investment Yield: 0.0000%
Average Amount Invested: $ 5,663
Total Time Invested: 1.65 years
1212812011 -9- Gilmore&Bell,P.C.
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-B
,XCCOUNTNO.4: Debt Service Ftinds- Bond Year Endino 7.1.2009
Cash and Investment Activity
Total
Cash Transactions Investments Cash and
Date Account Cash In Cash Out Balance Purchase Receipt Earnings Balance Investments
12/23/2008 Debt Service Fun, 238,763.39 238,763.39 - 238,763.39
5/5/2009 Debt Service Fund - 238,763.39 238,763.39 238,763.39
7/1/2009 Debt Service Fund 84,168.31 - 84,168.31 154,595.08 154,595.08
7/1/2009 Debt Service Fund 154,595.08 - 154,595.08 - -
Totals 238,763.39 238,763.39 238,763.39 238,763.39 238,763.39 -
Cash Out Less Cash In: -
Investment Receipts minus Purchases: -
1212812011 -10- Gilmore&Bell,P.C.
man w m m m MW No
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-B
-Nice I - Ending 7.1.2009
Arbitrage Rebate Computation Investment Yield
Future Present
Net Value Future Value Present
Investment Factor @ Value to Number Factor @ Value to
Date Activity 4.361287% 12/1/2011 of Days 0.000000% 12/23/2008
12/23/2008 - 1.1351853 - 1,058 1.0000000 -
5/5/2009 (238,763.39) 1.1173685 (266,786.68) 926 1.0000000 (238,763.39)
7/1/2009 84,168.31 1.1098946 93,417.95 870 1.0000000 84,168.31
7/1/2009 154,595.08 1.1098946 171,584.24 870 1.0000000 154,595.08
- (1,784.49) -
Summary of: Debt Service Funds-Bond Year Ending 7.1.2009
Total bond-year debt service: 84,168.31
Minimum balance during bond year: 154,595.08
Less 1/12 of total bond-year debt service (7,014.03)
Total surplus over reasonable carryover amount $147,581.05
Tax-exempt portion of surplus 100.00% 147,581.05
Net arbitrage rebate=computed rebate x(tax-exempt surplus/average invested balance)
Arbitrage Rebate Amount: $ (1,103.01)
Total Investment Earnings: -
Investment Yield: 0.0000%
Average Amount Invested: $ 238,763
Total Time Invested: 0.52 years
1212812011 -11- Gilmore&Bell,P.C.
mw � M �
City of Salina,Kansas
General Obligation Internal Improvement Bonds
Series 2008-B
Cash and Investment Activity
Total
Cash Transactions Investments Cash and
Date Account Cash In Cash Out Balance Purchase Receipt Earnings Balance Investments
7/1/2009 Debt Service Fund 154,595.08 - 154,595.08 154,595.08 154,595.08
8/18/2009 Revenue Fund 29,429.52 29,429.52 154,595.08 184,024.60
9/1/2009 Debt Service Fund 29,429.52 0.05 0.05 154,595.13 184,024.65
9/14/2009 Revenue Fund 26,214.28 55,643.80 154,595.13 210,238.93
10/1/2009 Debt Service Fund 55,643.80 0.92 0.92 154,596.05 210,239.85
10/13/2009 Revenue Fund 15,265.43 70,909.23 154,596.05 225,505.28
11/2/2009 Debt Service Fund 70,909.23 3.23 3.23 154,599.28 225,508.51
12/1/2009 Debt Service Fund 70,909.23 3.90 3.90 154,603.18 225,512.41
12/7/2009 Revenue Fund 25,636.00 96,545.23 154,603.18 251,148.41
12/8/2009 Debt Service Fund 96,545.23 96,545.23 96,545.23 251,148.41 347,693.64
12/8/2009 Revenue Fund 96,545.23 - 251,148.41 251,148.41
1/4/2010 Debt Service Fund 77,297.50 - 77,292.54 4.96 173,855.87 173,855.87
2/1/2010 Debt Service Fund - 3.78 3.78 173,859.65 173,859.65
2/16/2010 Revenue Fund 47,719.84 47,719.84 173,859.65 221,579.49
3/1/2010 Debt Service Fund 47,719.84 3.36 3.36 173,863.01 221,582.85
4/1/2010 Debt Service Fund 47,719.84 3.72 3.72 173,866.73 221,586.57
4/20/2010 Revenue Fund 32,151.03 79,870.87 173,866.73 253,737.60
5/3/2010 Debt Service Fund 79,870.87 3.60 3.60 173,870.33 253,741.20
5/20/2010 Revenue Fund 7,550.45 87,421.32 173,870.33 261,291.65
6/1/2010 Debt Service Fund 87,421.32 3.72 3.72 173,874.05 261,295.37
6/2/2010 Revenue Fund 87,421.82 (0.50) 173,874.05 173,873.55
6/11/2010 Debt Service Fund 87,421.32 (0.50) 87,421.32 261,295.37 261,294.87
6/11/2010 Revenue Fund 0.50 - 261,295.37 261,295.37
6/11/2010 Revenue Fund 87,421.32 87,421.32 - 261,295.37 261,295.37
7/1/2010 Debt Service Fund 77,297.50 4.00 77,297.50 4.00 183,997.87 184,001.87
7/1/2010 Debt Service Fund 184,001.87 - 183,997.87 - -
Totals 609,950.00 609,985.24 1,053,711.69 338,587.91 338,587.91 35.24
Cash Out Less Cash In: 35.24
Investment Receipts minus Purchases: -
1212812011 -12- Gilmore&Be11,P.C.
City of Salina,Kansas
General Obligation Internal Improvement Bonds
Series 2008-B
Arbitrage Rebate Computation Investment Yield
Future Present
Net Value Future Value Present
Investment Factor @ Value to Number Factor @ Value to
Date Activity 4.361287% 12/1/2011 of Days 0.020035% 7/1/2009
7/1/2009 (154,595.08) 1.1098946 (171,584.24) 870 1.0000000 (154,595.08)
8/18/2009 - 1.1036604 - 823 0.9999738 -
9/1/2009 - 1.1019423 - 810 0.9999666 -
9/14/2009 - 1.1002268 - 797 0.9999594 -
10/1/2009 - 1.0979875 - 780 0.9999499 -
10/13/2009 - 1.0964096 - 768 0.9999432 -
11/2/2009 - 1.0939159 - 749 0.9999327 -
12/1/2009 - 1.0901206 - 720 0.9999165 -
12/7/2009 - 1.0893370 - 714 0.9999132 -
12/8/2009 (96,545.23) 1.0892064 (105,157.69) 713 0.9999126 (96,536.80)
12/8/2009 - 1.0892064 - 713 0.9999126 -
1/4/2010 77,297.50 1.0858178 83,931.00 687 0.9998982 77,289.63
2/1/2010 - 1.0823100 - 660 0.9998831 -
2/16/2010 - 1.0803661 - 645 0.9998748 -
3/1/2010 - 1.0784257 - 630 0.9998665 -
4/1/2010 - 1.0745553 - 600 0.9998498 -
4/20/2010 - 1.0721113 - 581 0.9998392 -
5/3/2010 - 1.0704422 - 568 0.9998320 -
5/20/2010 - 1.0682636 - 551 0.9998225 -
6/1/2010 - 1.0668562 - 540 0.9998164 -
6/2/2010 - 1.0667284 - 539 0.9998158 -
6/11/2010 (87,421.32) 1.0655784 (93,154.27) 530 0.9998108 (87,404.78)
6/11/2010 - 1.0655784 - 530 0.9998108 -
6/11/2010 - 1.0655784 - 530 0.9998108 -
7/1/2010 77,301.50 1.0630274 82,173.61 510 0.9997997 77,286.02
7/1/2010 183,997.87 1.0630274 195,594.78 510 0.9997997 183,961.01
35.24 (8,196.81) (0.00)
1212812011 -13- Gilmore&Bell,P.C.
City of Salina,Kansas
General Obligation Internal Improvement Bonds
Series 2008-B
kCCOUNTNO.5: I)eht ScrN ice Funds- Bond Year Endino 7.1.2010
Arbitrage Rebate Comp utation Investment Yield
Future Present
Net Value Future Value Present
Investment Factor @ Value to Number Factor @ Value to
Date Activity 4.361287% 12/1/2011 of Days 0.020035% 7/1/2009
Summary of: Debt Service Funds-Bond Year Ending 7.1.2010
Total bond-year debt service: 154,595.00
Minimum balance during bond year: 154,595.08
Less 1/12 of total bond-year debt service (12,882.92)
Total surplus over reasonable carryover amount $141,712.16
Tax-exempt portion of surplus 100.00% 141,712.16
Net arbitrage rebate=computed rebate x(tax-exempt surplus/average invested balance)
Arbitrage Rebate Amount: $ (6,603.83)
Total Investment Earnings: 35.24
Investment Yield: 0.0200%
Average Amount Invested: $ 175,896
Total Time Invested: 1.00 years
1212812011 -14- Gilmore&Bell,RC.
w now ww M mow ww / w M am M M M
City of Salina,Kansas
General Obligation Internal Improvement Bonds
Series 2008-B
Cash and Investment Activity
Total
Cash Transactions Investments Cash and
Date Cash In Cash Out Balance Purchase Receipt Earnings Balance Investments
8/17/2010 86,103.12 - 86,103.12 86,103.12 86,103.12
9/1/2010 - 0.30 0.30 86,103.42 86,103.42
10/1/2010 - 0.60 0.60 86,104.02 86,104.02
11/1/2010 - 0.62 0.62 86,104.64 86,104.64
12/1/2010 - 0.60 0.60 86,105.24 86,105.24
1/3/2011 - 0.62 0.62 86,105.86 86,105.86
2/1/2011 - 0.62 0.62 86,106.48 86,106.48
3/1/2011 - 0.56 0.56 86,107.04 86,107.04
4/1/2011 - 0.62 0.62 86,107.66 86,107.66
5/2/2011 - 0.60 0.60 86,108.26 86,108.26
6/1/2011 - 0.62 0.62 86,108.88 86,108.88
6/8/2011 61,741.27 - 61,741.27 147,850.15 147,850.15
7/1/2011 - 1.06 1.06 147,851.21 147,851.21
8/1/2011 - 1.24 1.24 147,852.45 147,852.45
9/1/2011 - 1.24 1.24 147,853.69 147,853.69
9/20/2011 116.76 116.76 147,853.69 147,970.45
9/21/2011 - 116.76 147,970.45 147,970.45
10/3/2011 - 1.20 1.20 147,971.65 147,971.65
II/l/2011 - 1.38 1.38 147,973.03 147,973.03
12/1/2011 147,974.43 - 147,973.03 1.40 - -
Totals 147,961.15 147,974.43 147,973.03 147,973.03 13.28
Cash Out Less Cash In: 13.28
Investment Receipts minus Purchases: -
1212812011 -19- Gihnom&Bell,P.C.
City of Salina,Kansas
General Obligation Internal Improvement Bonds
Series 2008-B
:kCCOUN'T NO.0: Redemption Fund
Arbitrage Rebate Comp,utation Investment Yield
Future Present
Net Value Future Value Present
Investment Factor @ Value to Number Factor @ Value to
Date Activity 4.361287% 12/1/2011 of Days 0.009440% 12/23/2008
8/17/2010 (86,103.12) 1.0571832 (91,026.77) 464 0.9998443 (86,089.71)
9/1/2010 - 1.0554109 - 450 0.9998406 -
10/1/2010 - 1.0516232 - 420 0.9998327 -
11/1/2010 - 1.0478490 - 390 0.9998249 -
12/1/2010 - 1.0440884 - 360 0.9998170 -
1/3/2011 - 1.0400919 - 328 0.9998086 -
2/1/2011 - 1.0366076 - 300 0.9998013 -
3/1/2011 - 1.0328873 - 270 0.9997934 -
4/1/2011 - 1.0291804 - 240 0.9997855 -
5/2/2011 - 1.0253639 - 209 0.9997774 -
6/1/2011 - 1.0218064 - 180 0.9997698 -
6/8/2011 (61,741.27) 1.0209496 (63,034.72) 173 0.9997680 (61,726.94)
7/1/2011 - 1.0181393 - 150 0.9997619 -
8/1/2011 - 1.0144853 - 120 0.9997541 -
9/1/2011 - 1.0108444 - 90 0.9997462 -
9/20/2011 - 1.0085453 - 71 0.9997412 -
9/21/2011 (116.76) 1.0084244 (117.74) 70 0.9997410 (116.73)
10/3/2011 - 1.0069752 - 58 0.9997378 -
11/l/2011 - 1.0036018 - 30 0.9997305 -
12/1/2011 147,974.43 1.0000000 147,974.43 - 0.9997226 147,933.38
13.28 (6,204.81) (0.00)
Summary of: Redemption Fund
Arbitrage Rebate Amount: $ (6,204.81)
Total Investment Earnings: 13.28
Investment Yield: 0.0094%
Average Amount Invested: $ 109,144
Total Time Invested: 1.29 years
1212812011 -16- Gi-nore&Bell,P.C.
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-B
AND
Arbitrage Rebate Computation
Future
Value Future
Factor @ Value to Number
Date Description Amount 4.361287% 12/1/2011 of Days
7/1/2009 Computation Credit (1,490.00) 1.1098946 (1,653.74) 870
7/1/2010 Computation Credit (1,500.00) 1.0630274 (1,594.54) 510
7/1/2011 Computation Credit (1,520.00) 1.0181393 (1,547.57) 150
(4,510.00)
Total Adjustments: $ (4,795.86)
1212812011 -17- GiZmore&Bell,P.C.
M M M M W r M = M M �_ M m m m m m m
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-B
I. Analysis of Account Balances(Excluding Purpose Investments)&Reasonable Carryover Amount
Bond Year Ended: 7/1/2009
Revenue Fund Debt Service Total
Fund Bond Year
Acct. Balance @ COB on 6/30/2009 $ - $ 238,763.39
Cash in/(Cash out) 7/1/2009 - (84,168.31)
Acct.Balance @ COB on 7/1/2009 $ - $ 154,595.08 $ 154,595.08
Minimum Sinking Fund Balance during Bond Year $ 154,595.08
Bond Debt Service:
Debt Service Payment 7/1/2009 - 84,168.31
Total Bond Year Debt Service $ - $ 84,168.31 $ 84,168.31
Reasonable Carryover Amount(one-twelfth bond year debt service) $ 7,014.03
Excess Sinking Fund Balance $ 147,581.05
Sinking Funds Depleted,Except for a Reasonable Carryover Amount? No
1212812011 _18- Gilmore&Bell,P.C.
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-B
ANALYSIS OF SINAIN'c; FL.__N'DS
Bond Year Ended: 7/1/2010
Revenue Fund Debt Service Total
Fund Bond Year
Acct. Balance @ COB on 12/31/2009 $ - $ 251,148.41
Cash in/(Cash out) 1/1/2010 - 4.96
Cash in/(Cash out) 1/1/2010 - (77,297.50)
Acct. Balance @ COB on 1/1/2010 $ - $ 173,855.87 $ 173,855.87
Acct. Balance @ COB on 6/30/2010 $ - $ 261,295.37
Cash in/(Cash out) 7/1/2010 - (77,297.50)
Acct.Balance @ COB on 7/1/2010 $ - $ 183,997.87 $ 183,997.87
Minimum Sinking Fund Balance during Bond Year $ 154,595.08
Bond Debt Service:
Debt Service Payment 1/1/2010 $ - $ 77,297.50
Debt Service Payment 7/1/2010 - 77,297.50
Total Bond Year Debt Service $ - -T-154,595.00 $ 154,595.00
Reasonable Carryover Amount(one-twelfth bond year debt service) $ 12,882.92
Excess Sinking Fund Balance $ 141,712.16
Sinking Funds Depleted,Except for a Reasonable Carryover Amount? No
*Minimum balance occurred on 7/2/2009
1212812011 _19- Gdmore&Bell,AC
�w �w w w w� w� ww ww ww w ww w w w ■w w� w w� rw
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2008-B
ANALYSIS OF SINKING FUNDS
Bond Year Ended: 7/1/2011
Revenue Fund Debt Service Total
Fund Bond Year
Acct. Balance @ COB on 12/31/2010 $ - $ 230,064.59
Cash in/(Cash out) 1/1/2011 - 3.73
Cash in/(Cash out) 1/1/2011 - (77,297.50)
Acct. Balance @ COB on 1/1/2011 $ - $ 152,770.82 $ 152,770.82
Acct. Balance @ COB on 6/30/2011 $ 9,819.67 $ 187,300.91
Cash in/(Cash out) 7/1/2011 - 3.53
Cash in/(Cash out) 7/1/2011 - (77,297.50)
Cash in/(Cash out) 7/1/2011 - (110,000.00)
Acct. Balance @ COB on 7/1/2011 $ 9,819.67 $ 6.94 $ 9,826.61
Minimum Sinking Fund Balance during Bond Year $ 9,826.61
Bond Debt Service:
Debt Service Payment 1/1/2011 $ - $ 77,297.50
Debt Service Payment 7/1/2011 - 187,297.50
Total Bond Year Debt Service $ - $ 264,595.00 $ 264,595.00
Reasonable Carryover Amount(one-twelfth bond year debt service) $ 22,049.58
Excess Sinking Fund Balance $ -
Sinking Funds Depleted,Except for a Reasonable Carryover Amount? Yes
1212812011 -20- Gilmore&Bel/,P.C.