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Audit - 2010 SW ReportKANSAS DEPARTMENT OF HEALTH AND ENVIRONMENT BUREAU OF WASTE MANAGEMENT Solid Waste Form 1290 CHIEF FINANCIAL OFFICER'S LETTER FROM LOCAL GOVERNMENT To: Kansas Department of Health and Environment Attn: Bureau of Waste Management I am the Chief Financial Officer of _City of Salina_ a local government organized and existing under the laws of the state of Kansas. This letter is in support of this local government's use of the local government financial test to provide financial assurance for the closure, post- closure care, corrective action costs, or any combination of these, at the municipal solid waste landfill identified in the following numbered paragraphs. This local government is the owner or operator of the following municipal solid waste landfill for which financial assurance for closure, post - closure care, corrective action costs, or any combination of these, is demonstrated according to the provisions in K.A.R. 28 -29 -2110: City of Salina Municipal Solid Waste Landfill 492 Burma Road Salina, KS 67401 Permit No. 144 Closure $_2,429,613 Post - Closure $_3,161,538_ Corrective Action $_N /A [List additional sites and estimates on a separate sheet identified as "Attachment A"] 2 This local government also provides financial assurance for environmental obligations, or provides environmental guarantees, to another local government entity through a financial test procedure at the following site and jurisdiction (if none, enter 'None "): Permit No. Closure $ N/A Post - Closure $ N/A Corrective Action $_N/ Jurisdiction [List additional sites, estimates and jurisdictions on a separate sheet identified as "Attachment B "] Page 1 of 4 - Chief Financial Officer's Letter - Form SW1290 - August 9, 1999 This local government financial test is based upon the financial conditions existing as of the close of the latest completed fiscal year ending on 12/31/2009 The accounting books and records of this local government are maintained according to the requirements of generally accepted accounting principals (GAAP) for governments, or on a prescribed basis of accounting that demonstrates compliance with the cash basis and budget laws of the state of Kansas, which is a comprehensive basis of accounting other than GAAP for governments. In support of this local government's use of financial test, I enclose the following documents: (a) Comprehensive Annual Financial Report (CAFR), or other audited Annual Financial Statements for the latest completed fiscal year; (b) Auditor's Special Report; and (c) Calculation and accumulation details supporting financial test amounts derived from the CAFR or other audited annual financial statements. I certify that this local government: (a) Has no general obligation bonds outstanding which are rated lower than Moody's Baa or Standard & Poor's BBB; (b) Is not currently in default on payments of interest or principal on any general obligation bonds; (c) Has not operated at a deficit exceeding 5% in each of the two latest completed fiscal years; (d) Has passed the financial ratio test or the bond rating test specified for the use of local governments according to the provisions in K.A.R. 28 -29 -2110; and (e) Has not used the local government financial test to provide financial assurance for closure, postclosure, corrective action costs, or any combination of these, in excess of 43% of revenues as defined in K.A.R. 28 -29 -2110. SIGNET E LOCAL GOVERNMENT /S/ Name- R ey Fr z Title D ctor of inance Date 01/31/2011 Page 2 of 4 - Chief Financial Officer's Letter - Form SW1290 - August 9, 1999 KANSAS DEPARTMENT OF HEALTH AND ENVIRONMENT BUREAU OF WASTE MANAGEMENT LOCAL GOVERNMENT FINANCIAL RATIO TEST Sum of the Environmental Obligations Assured by the Test Total from the Chief Financial Officer's Letter $ 5,591,151 Ratio Test Factors from the CAFR or Annual Financial Statements [Attach details of calculation or accumulation of amounts from CAFR or AFS] 2, Total Annual Revenues $66,044,052 1 Total Annual Expenditures $57,200,747 4. Cash plus Marketable Securities $_28,967,816 5. Annual Debt Service $_ 6,405,189 6. Long -Term Debt (Issued in the Current Year) $ 7. Non - Routine Capital Expenditures $ [Omit Lines 6 and 7 if GAAP for Governments accounting and reporting method is used] Financial Ratio Test Calculations 8. Environmental Obligations / Total Annual Revenues (Line 1 divided by Line 2 = < 0.43) 9. Total Annual Revenues / Total Annual Expenditures (Line 2 divided by Line 3 = > 0.95) 10. Cash and Marketable Securities / Total Annual Expenditures (Line 4 divided by Line 3 = > 0.05) 11. Annual Debt Service / Total Annual Expenditures (Line 5 Divided by Line 3 = < 0.20) 12. Long -Term Debt / Non - Routine Capital Expenditures (Line 6 divided by Line 7 = < 2.00) [Omit Line 12 if GAAP for Governments accounting and .084 _1.1546 .5064 .1119 reporting method is used] Page 3 of 4 - Chief Financial Officer's Letter - Form SW1290 - August 9, 1999 KANSAS DEPARTMENT OF HEALTH AND ENVIRONMENT BUREAU OF WASTE MANAGEMENT LOCAL GOVERNMENT BOND RATING TEST Sum of the Environmental Obligations Assured by the Test 1. Total from the Chief Financial Officer's Letter $_5,591,151 Ratio Test Factors from the CAFR or Annual Financial Statements [Attach details of calculation or accumulation of amounts from the CAFR or AFS] 2. Total Annual Revenues $_66,044,052 3. Total Annual Expenditures $57,200,747 Bond Rating Test Calculations 4, Environmental Obligations / Total Annual Revenues 0847 (Line 1 divided by Line 2 = < 0.43) 5, Total Annual Revenues / Total Annual Expenditures 1.1546 (Line 2 divided by Line 3 = > 0.95) Bond Rating 6. Amount, Description, Issue Date and Due Date of Rated General Obligation Bonds_ $8,060,000 in General Obligation Internal Improvement Series 2010 -B, Issued 10/01/2010, Final Due Date 10/1/2023 7. Currently Assigned Bond Rating Aa2 8. Rating Agency _Moody's [Attach written evidence of the current band rating] Page 4 of 4 - Chief Financial Officer's Letter - Form SW1290 - August 9, 1999 s "DEPARTMENT OF PUBLIC WORKS Michael Fraser, Director of Public Works Daniel Stack, P.E., City Engineer Jim Teutsch, Operations Manager 000 West Ash • P.O. Box 736 alina, Kansas 67402 -0736 May I8, 2010 Solid Waste Permits Section Division of Environment C11yOF TELEPHONE • (785) 309 -5725 FAX • (785) 309 -5713 TDD • (785) 309 -5747 E -MAIL: mike.fraserasahna.or¢ dan.stack(iDsalina.or¢ iim.teutsch alsahm,t.ore WEBSITE • www.salina- ks.sov Kansas Department of Health and Environment (KDHE) 1000 SW Jackson, Suite 320 Topeka, KS 66612 -1366 Attn: Mr. Ken Powell RE: Permit #0144 Renewal Mr. Powell, The City of Salina is pleased to submit to the KDHE the 2010 Permit Renewal for the Salina Municipal Solid Waste Landfill, located at 4292 South Burma Road in Salina, Kansas (Permit #0144; MSW /Subtitle D). This information includes a copy of the Closure Cost Estimate Worksheet for the MSW Landfill Form 1, the Post - Closure Cost Estimate Worksheet for the MSW Landfill Form 2 and the Estimated Life Worksheet for the MSW Landfill Form 3. •Additionally, we are providing a copy of our Certificate of Liability Insurance. The City of Salina renews this policy on the first of July; therefore, we will send you a copy of the new policy in July once it has been approved. All items are being provided to your office prior to the June 1, 2010 deadline. If I can provide you with any additional information or answer any questions, please feel free to contact me. I can be reached at the General Services office by calling (785) 309 -5750. Regards, oe ames E. eutssch Operations Manager Attachments: Permit Renewal Packet Cc: Jason Gage, City Manager Mike Fraser, Director of Public Works Ron Rouse, Landfill Superintendent Nancy Schuessier, Risk Management Specialist Valerie Gebhardt, City accountant • Anastasia Welch P.E., Aquaterra Environmental Solutions, Inc. COPY �nCjli "1 @P.I':nCi 4 St; j a TraiiC. .Ci r "i i!lii ." ("r,OC7 i.:.Ui,fr;;i i:.E:f�lt r'�• f'af'�{, Q .n°.�!r1132 iN�it1 1. �3 rIlI{ CLOSURE COST ESTIMATE WORKSHEET FOR MSW LANDFILL FORM 1 WINNER: CITY OF SAUNA, KANSAS CURRENT PERMIT RENEWAL YEAR: 2010 TOTAL PERMITTED AREA: 280 ACRES PERMIT NO.0144 Total Volume of Site: 24,114,000 CU.YDS. CONVERSION FACTOR: 4840.02 SQXDSJACRE AREA CURRENTLY OPEN: 29 ACRES CONVERSION FACTOR: 0.3333 YDSJFT. LARGEST AREA TO EVER BE OPEN AT ANY TIME: 29 ACRES (use this area for estimating closure costs) �on tact Person/Cost Estimate Prepared By., Anastasia Welch, RE, Aquatena Environmental Solutions, Inc. Copy hone Number: (913) 681 -0030 5/18/2010 REM FQUANTITYJ UNITS I UNIT COST I COST I SUBTOTALS Low Permeability Soil Layer Preparation of landfill to receive cover (final grading) General fill to reach surrounding grades la compacted, off -site Clay-compacted, on -site 29 40,000 0 70,180 ACRE CU. YD. CU. YD. CU. YD. $53.75 $1.77 $10.63 $5.67 $1,559 $70,800 $0 $397921 n �, X Low Permeability Soil Layer Subtotal $470,279 Geomembrane and Drainage Layer Drainage Material - sand 46,787 CU. YD. $11.001 $514,657 '.- Drainage Material - geogrid Geomembrane 0 1 140,3601 SQ. YD. SQ. YD. $4.18 1 $3.901 $0 $547,404 Geomembrane and Drainage Layer Subtotal; K p?f ,; n J? .,f =st) $1,062,061 Protective Soil ffegetative) Layer Soil, off -site Soil, on -site Seeding and Mulching 01 70,1801 291 CU. YD CU. YD ACRE 1 $5.20 1 $1.771 1 $1,500.00 $0 $124,219 $43,500 Protective Soil (Vegetative) Layer Subtotal ffi;,° ,.', +, �, ,,,..„'„,,,Y;^„<.�,;1 a,;."�`,.N $167,719 Erosion Control aces s ddchin !channels 7,600 3,000 Lin. FT. Lin. FT. $0.55 $9.00 $4180 $27,000 n ap ditchinglchannels 0 Lin. FT. $13.00 $0 ion Control Subtotal k9 mss{ i,F 1 k1xT +;�. ,;:xig $31,180 as System Vems, 29 vents, 50 -foot average depth ive S stemhN^ Passive well head flare ve S tem , BTU/hour 1450 Lin FT $100.00 $145,000 a va ",.; 29 EACH $500 00 $14,500 0 EACH $0.00 $0 w� 4 ry System Subtotal! tEngineering ;.r ,f�: �.f = >':��ro.' m,'E `''' ;";t�i�;'-�y'>v,1zx;�srr'; ;'+'s $159,500 rofessional Services neerin (Bid Documents ra hic and Bounda Surve neering (Construction Oversight) 1 1 1 Lum Sum Lum Sum Lump Sum $82,000.00 $10,000.00 $226,000.00 $82,000 $10 000 $226,000€48 �^'� ti:' essional Services Subtotal 318,000 l Closure Cost Subtotal 2 208 739 cellaneous Administration and Contingency (Total Closure Cost Subtotal x 10 %) $220,874 . Subtotal $220,874 ITOTAL CURRENT CLOSURE COST 2 429 613 �on tact Person/Cost Estimate Prepared By., Anastasia Welch, RE, Aquatena Environmental Solutions, Inc. Copy hone Number: (913) 681 -0030 5/18/2010 POST - CLOSURE COST ESTIMATE WORKSHEET FOR MSW LANDFILL FORM 2 OWNER: CITY OF SAUNA, KANSAS 0 URRENT PERMIT RENEWAL YEAR: 2010 OTAL PERMITTED DISPOSAL AREA: 280 ACRES (use this area for esemaang postKlosure cost) PERMIT NO.0144 Total Volume of Site: 24,114,000 CU.YDS. CONVERSION FACTOR: 4840.02 SQ.YDSJACRE CONVERSION FACTOR: 0.3333 YDS,lFT. ITEM QUANTITY UNITS UNIT COSTT COST I SUBTOTALS Cover Repair % of the landfill area - 14 acres Soil, offsite 01 CU. YD. 1 $5.20 $0 Fr - oil, on-site _ 22,5871 CU. YD. 1 $1.771 $39,979 ,r".,,. Cover Repair Subtotal $39,979 Seeding % of the landfill area - 14 acres Seeding and Mulching 14.0 ACRE $1,5W.00T $21,000 "Ing Subtotal '« ; . ".$sue" _ ex*$ w tk r <'k w $21,000 Leachate Collection Generation rate 5,174 gal. /a r. (238,000 gal/yr)* Aeration and Maintenance of leachate collection system Leachate hauling distance 2 miles, 60 trips/year " 1 60 year trip $3,000.00 $100.00 $3,00( $5,950 r), c -` Leachate treatment Leachate management and treatment on -site 238,000 0 gal. Lump Sum $0.0024 $0.00 $571 $0 Leachate sampling Leachate analysis 1 1 trip event $500.00 $500.00 $500 $500, ,Lz „- Leachate Collection Subtotal $10,521 Landfill Gas Monitoring uarterly, methane monitoring at site boundary 4 event $1,250.00 $5,000 ndfill Gas Monitoring Subtotal % 8'r.r.- .:' *fs ". °, "#s $5,0DO Landfill Gas Extraction System Reinstallation of methane vents (11% of the total system lengthyr.) 14.5 Lin. FT. $100.00 $1,450 I $0.00 Aeration and Maintenance of gas extraction system (lump sum) 01 Million CU. FT. Landfill Gas Extraction System Subtotal rV*11 "" �_ 'V ,v'" ^' °,.,�, £3 ,�,�,.�,n..` L $1,450 Groundwater Monitoring mils/piezometere sampled; 10 wells/piezometem gauged but not sampled each event mpling personnel labor (2 events/year min.) pie ( rdslyear min. m event mobilization 2 eve )a [nalytical costs (2 eventsyear min.) nitoring well maintenance nitOrin well replacement 1,085 total lin. ft. of all round+rater v215 9 ( g ) 112 200 58 29 1,085 hr. mile sample well total well footage $35.00 $0.40 $220.00 $13.00 $020 $3,920 $80,�,s: $12,760 $377 $ 217 F �, x , " oundwater Monitoring Subtotal $17,354 Inspections and Recordkeeping Inspections nspections and Recordkeeping 1 Lump Sum $500.00 $500 �` , N ?emu and Recordkee In Subtotal .,.::, °d G ° >3:” £ *r =tip .i ±° $500 Estimated Annual Post - Closure Cost sum of all subtotals above $95,604 Administration and Contingency 10% Administration and Contingency (Total Closure Cost Subtotal x 10 %) $9,580 ministration and Contingency Subtotal �� r � "� ='siw„�.: h...tiv..K. Harz .'f` � ="° .r , .f %+ :_'1 $9 580 EESTIMATED ANNUAL POST - CLOSURE COST $105,385 ESTIMATED 30 YEAR POST - CLOSURE COST Annual x 30 $3,161,538 Contact PersonA;ost Estimate Prepared By. Anastasia Welch, P.E., Aquaterra Environmental Solutions, Ir oO Phone Number.: (913) 681 -0030 - Leachate collection only present in Celle i through 4, approximately 46 acres. Generation based on actual 2009 disposal records. 5118 10 • ESTIMATE LIFE WORKSHEET FOR MSW LANDFILL FORM 3 OWNER: CITY OF SALINA, KANSAS PERMIT NO. 0144 CURRENT PERMIT RENEWAL YEAR: 2010 CONVERSION FACTOR: 4840.02 SO. YDS. /ACRE CONVERSION FACTOR: 0.3333 YDS. /FT. Landfill Site Data: QUANTITY UNITS Total Site Area 640 ACRES 2. Name or Phase: Cell 1 and portion of Cell 2 17 ACRES Total Area Permitted to Receive Waste 280 ACRES 4. Name or Phase: ACRES Total Area Currently Open 29 ACRES Total Area That Received Final Cover 79 ACRES Identify Cells That Received Final Cover by Name or Phase: AREA UNITS 1. Name or Phase: Pre-Subtitle D Area 62 ACRES 2. Name or Phase: Cell 1 and portion of Cell 2 17 ACRES 3. Name or Phase: 950 ACRES 4. Name or Phase: ACRES Life of Cell / Landfill Data: QUANTITY UNITS Annual Average Tonnage Received (A)' 96,854 Tons Average Compacted Density of Waste 8) 950 lbs. /CU. YD. Soil -to -Waste Ratio (C )" 0.167 Calculation For Annual Volume: QUANTITY UNITS Annual Volume CU. YDS. Y= VA x 2000 /B x 1 + C 237,954 CU. YDS. Total Volume Capacity of Original Site 24,144,000 CU. YDS. Total Remaining Volume Capacity of Site (approximate) '*' 17,129,005 CU. YDS. IlRemaining Life of Landfill 72.0 Years Contact Person/Cost Estimate Prepared By: Anastasia Welch, P. E, Aqueterra Environmental Solutions, Inc. Phone Number. (913) 681 -0030 - Based on 5-year rolling average. " Soil used for dairy and intermediate cover occupies landfill airspace. The soil4o-waste ratio accounts for the landfill space occupied by soil. Most soft- to-waste ratio estimates range from 1:3 (33 %) to 1:10 (10%). KDHE recommends 1:6 (16.7 %). •'• - 2008 remaining volume less calculated volume used in 2006 and 2009. 5/18/2010 4 4 ACORD CERTIFICATE OF LIABILITY INSURANCE 6/29/2009 PRODUCER (800)563 -1871 FAX: (785)825 -5098 unflower. Insurance Group, nc. P. C17 S- Santa Fe P.O. Box 1213 Salina KS 67402 -1213 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE NAICS INSURED City Of Salina Attn: Nancy Schuessler 300 W Ash Rm 202 Salina KS 67402 -0736 INSURERASt Paul Guardian A INSURER B: GENERAL LIABILITY X COMMERCIALGENERALUAaUTY CLAMS MADE FX OCCUR INSURERC: 6/30/2009 INSURER EACH OCCURRENCE INSURER E: DAMAGE TO RENTED P EMZE Ea am,mPnce THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. A REG UE LIMITS SHOWN D BY PAID CLAIMS INSR ADD1 TYPE OF WSURANCE POLICY NUMBER �E ECTVE PpL Y EXPIRATION UMDM A FAXLRE TO W 50 SHALL IMPOSE NO OBLIGATION OR IIABRiTY ANY IDIJD UPON THE GENERAL LIABILITY X COMMERCIALGENERALUAaUTY CLAMS MADE FX OCCUR GPO9312590 6/30/2009 6/30/2010 EACH OCCURRENCE $ 1,000,000 DAMAGE TO RENTED P EMZE Ea am,mPnce $ 500,000 MEDEXP Aa one arson 5 0 PERSIXJAL& AW INJURY $ 1,000,000 GENERAL AGGREGATE $ 2,000,000 OWL AGGREGATE LIMB APPLIES PER X POLICY TER LOC $ 2,000,000 A AUTOMOBILE LIABILITY ANY AUTO ALLOMEOAUn)S SCHEWLEDAUTOS HIREDAUTOS NON - NEDAUTOS GP09312590 6/30/2009 6/30/2010 COMBINED SINGLE LIMB (Ea aadEem) S 1,000,000 X BODILY INJURY (Perpere°n) $ X BODILY INJURY ( ) $ X PROPERTY DAMAGE (Per aaitlenq 5 GARAGE LIABILITY ANY AUTO AUTOONLY- EAACCIDENT $ OTHERTHAN EA AUTO ONLY AGG S S FXCESS'UMBWUALNBILITY OCCUR FI CLAIMS MADE DEDUCTIBLE RETENTION Jr $ AGGREGATE $ f $ $ WORNEAS COMPENSATION AND EMPLOYERT LIABRDY ANY PROPRIETORMARTNEREXECUTIVE OFFICERMEMBER EXCLUOEfY1 H Y" ut tlesame SPECIAL PROWS bamv STATU- OTIi- T Y LIMITS ER E.L EACH ACCIDENT 5 EL DISEASE - EA EMPLOYEE $ E L DSEASE- POLICY OMIT 5 OTHER OESCRU'RON OF OPERATMNSI LOCATIONSNEHMAESIEXCLUSHNi4 AWED BY ENDORSEMQnISPECIAL PROVISIONS Permit $0144 (MSW:Sub -d); This is an amended certificate and supercedes any previously issued certificate. *10 day notice of cancellation for non - payment of premium. 4 CERTIFICATE HOLDER CANCELLATION ACORD 25 (2001108) INS025 (oiw) o © ACORD CORPORATION 1988 Pape t d 2 COPY SHOULD ANY OF THE ABOVE DESCRIBED POLIMES BE CANCELLED BEFORE THE Ken Powell EXPIRATION DATE THEREOF, THE ISSUWG INSURER WILL ENDEAVOR TO MAR Solid Waste Permit Section 30* DAYSWRDTENNOTICETOTHECERTIFICATEHOLDERNWMTOTHELEFT ,B Division of Environment, Bureau of Waste Curtis State Office Building FAXLRE TO W 50 SHALL IMPOSE NO OBLIGATION OR IIABRiTY ANY IDIJD UPON THE 1000 SW Jackson, Suite 320 INSURER ITS AGENTS W REPRESENTATAR:S AUTHORQEDRTPRESENTATTVE Megan Topeka, KS 66612 -1366 Sutton /MSUTTO� ACORD 25 (2001108) INS025 (oiw) o © ACORD CORPORATION 1988 Pape t d 2 COPY Expenditures Total [xpendltures from the Combined Statement of 7evenues, Expenditures, and Changes in Fund Balances Less Specifically Identifiable Capital Outlays Net Governmental Funds Expenditures 2009 2009 2009 Specnt Capital General Fund Revenue Funds Debt service Fund Projects fund Totals $ 33977330 $ 862],389 $ 3,953,133 $ 46,557343 $ 887,449 $ 4.286,493 0 $ 5,173,942 S 33009,881 S 4346887 S 3953,133 $41383,901 From the Combined spa umare of Revenues, Expenses and changes in Net Enterprise Internal Service Assets: Funds funds Total Operating Expenses of Enterprise Funds before depreciation $ 15541 - $ 15,545,973 Total Nonoperaing revenues (net) of Enterprise funds (If negative) $ 270,873 $ S 270,873 Total Non - operating revenues (net) of Internal Service funds (It negative) $ - $ - S - Net Proprietary Funds ExpendinareslExpenses S 15,816,846 It - $ 16,816846 Total Expenditures $ 57200747 Revenues Prom rite Combined Statement of Revenues, Expenditures, and Changes In I end balance S 33327,466 S 7695737 $ 3,265,928 S 183,057 I cal Revenues, Governmental Funds $ 33,327460 $ 7,895,737 $ 3,285,928 $ 183,057 $44692,188 From the Combined statement of Revenues, Expenses and changes In Net Enterprise Internal Service Assets Funds funds Total Cporeting R ... pros M Enterpnse Funds S 21.285 165 Total Non operates, revenues (net) of Enterprise funds (d positive) sudctetl Alternative'. Total Non operating revenues (not) of Internal Service funds (if positive) $ 2,468,553 $ S 66,699 Total Proprietary From Revenue $ 21,285,165 S 66,699 Total Revenue all funtls S 3084,081 I c Sum of closure and post- closure costs assured by financial test Current Operating Balance 5,552634 $ 5552634 Cash and Current Investments 2009 66044,052 Central Fund $ 4764,426 $ 57,200,747 $ Sppnal Revenue Fwtls $ 7439,949 t. Cash and Current Investments Poor Service Funds $ 735,291 $ 20,967,816 1rarpers, finds $ 12756,145 6406,189 Internal Service Funtls $ 3,272005 $ 22,925,055 $ rural Cash and Investments: S 28.967 616 $ 21351 664 $ 66044,052 S 6843,305 solid waste financial assurances breakevaryxls 113112011 Alternative Ratios and Miss, information for 2007 IA IB II sudctetl Alternative'. 1(a) Sum 0l closure costs assured by financial I all $ 2,468,553 $ ? 468,553 $ 2468,553 LWI Sum of post Ended Bolls assured by financial test S 3,0841081 $ 3,084,081 S 3084,081 I c Sum of closure and post- closure costs assured by financial test S 5,552634 $ 5,552634 $ 5552634 2. fare Revenues $ 66,044O52 $ 66044,052 $ 66,044,052 3. 1 oral Expenditures $ 57,200,747 $ 57206747 3 57200,747 t. Cash and Current Investments 5 28,967,816 S 26967,816 $ 20,967,816 5. Debt Service on Lang Term Debt (From Statement 2, 4, notes) $ 6406189 S 6406,189 $ 6406189 6. Capital e.,rdepros $ 22,925,055 $ 22925,065 $ 22,925065 7. I ong term Oear Period S 25054360 S 25064,360 $ 25,054360 Closprohlod Closure as a permnt of revenue (Line 1area 2) (Must be less than 41%) B.at% 841% 841% Revenues divided by expenditures 9motar than 95 11546% 11540% 11546% Cash oivideb by Expenditures greater than 5% 5064% 50.34% Paul service divided by total expend'taras less than 20% 11,20% 1170% Is long form debt divided by Capital mss than 2-0 1,09 Pnbl Survem be Lang Term Dean principal from Door Service fund $ 2641701 Interest Rom uem service Fund S 1111 432 Papal from Capitol Projects Funds S - Interest from Capital Projects Funds $ 183,556 Principal from Other Funds $ 25,000 Interest from Other Funds $ 300,655 Enterprise Fund Interest from Cash Flows $ 610,546 Principal from Era, parr Fund Oebt $ 1,333,299 Total $ 6406189 expire Prom Smlereanl of Revenues, Expenditures, and Changes in Fund Balance S 17,707,217 Negative eenffows raori prom capdal end related financing adiviry in the Enterprise and internal trust funds, Statement of Cash Flows 52178481 I but Capital $ 22,925,065 Long Term Peter Issued Grote Note 4 -E Governmental Funtls Additions $ 26,894467 Proprietary Fun. Aeations S 368,594 Tres Accrued Compensation $ 2,198,701 1 SS C. pint Leases I alal tang Iarm Debt lslued $ 251064360 $ 21351 664 $ 66044,052 S 6843,305 solid waste financial assurances breakevaryxls 113112011 MOODY'S INVESTORS SERVICE October 26, 2010 Mr. Rodney Franz Finance Director City of Salina City Hall 300 West Ash Salina, KS 67402 Dear Mr. Franz: Henrietta Chang Vice President Sr. Analyst 100 N. Riverside Plaza Suite 2220 Chicago, 11.60606 312.706.9960 tel 312.706.9999 fax henrietta.chang@moodys.com w moodys.com We wish to inform you that on October 14, 2010, Moody's Investors Service reviewed and assigned a rating of Aa2 to the City of Salina,KS General Obligation Refunding Bonds, Series 2010B. In order for us to maintain the currency of our ratings, we request that you provide ongoing disclosure, of current financial and statistical information. Moody's will monitor this rating and reserves the right, at its sole discretion, to revise or withdraw this rating at any time in the future. The rating, as well as any revisions or withdrawals thereof, will be publicly disseminated by Moody's through normal print and electronic media and in response to verbal requests to Moody's Rating Desk. Should you have any questions regarding the above, please do not hesitate to contact me or the analyst assigned to this transaction, Soo Yon Chun at 312- 706 -9983. Sincerely, 44 Henrietta Chang cc: Mr. David`Arteberry George K. Baum & Company MOODY'S INVESTORS SERVICE New Issue: MOODY'S ASSIGNS Aa2 RATING TO CITY OF SALINA'S (KS) $8.1 MILLION GO REFUNDING BONDS, SERIES 2010 -B Global Credtt Research - 15 Oct 2010 Aa2 RATING APPLIES TO $60.5 MILLION OF LONG TERM GO DEBT, INCLUDING CURRENT BONDS Municipality KS Moodyrs Rating ISSUE RASING General Obligation Refunding Bonds, Series 201013 Aa2 Sale Amount $8,060,000 Expected Sale Date 10118/10 Rating Description General Obligation Unlimited Tax Opinion NEW YORK, Oct 15, 2010 — Moody's Investors Service has assigned a Aa2 rating to the City of Salina's (KS) S8.1 million General Obligation Refunding Bonds, Series 2010 -B. Concurrently, Moody's has affirmed the Aa2 rating on the city's outstanding $59.3 million long -tens general obligation debt. RATING RATIONALE The bonds are secured by Salina's general obligation unlimited tax pledge. Proceeds of the bonds will refund the city's outstanding Series 2001A and 20028 as well as two outstanding state loans for an estimated net present value savings of approximately 9% of refunded principal. Assignment of the Aa2 rating reflects the city's moderately sized stable tax base which serves as a regional economic center, satisfactory financial operations despite recent deficits and sales tax revenue pressures, and average debt levels with rapid principal amortization. MODERATELY SAD TAX BASE SERVES AS REGIONAL ECONOMIC CENTER Despite some challenges, we believe that due to its position as a regional retail hub, Salina should continue to enjoy relative economic stability. Located in Saline County 95 miles north of Wichita (GO rated Aa2/stable oulJook), the City of Salina's medium -sized tax base reached $2.9 billion in 2009 with recent declines in valuation. The taxti declined by 0.7% in 2009, partially due to overall decline in valuations as well as the state's recent exemption of machinery and new equipment. However, in contrast to national trends, the city's taxbase remains relatively stable as it grew a modest 0.5% in 2010. Located at the intersection of 1-70 and 4135, the city benefits by serving as a regional retail, commercial, industrial, and medical hub for the largely agricultural communities of north central Kansas. The Salina Airport Industrial Center is home to 80 organizations, with an aggregate 4,200 employees. Tenants include the Kansas Mlitary Board, and a campus of Kansas State University. Hawker Beechcraft Corporation recently closed operations, laying off the remaining 283 employees. Notably, the airport industrial center continues to attract new businesses offsetting some job losses resulting from the closing of Hawker. Resident income levels approximate state and national medians with per capita and median family incomes at 90.7% and 91.6 %, respectively. Despite recent layoffs, the citys unemployment rate of 5.99/6 continues to Vend below those of the state (6.7 %) and nation (9.5 %) for August 2010. SATISFACTORY FINANCIAL OPERATIONS DESPITE RECENT DECLINES N RESERVES AND SALES TAX REVENUE PRESSURES We expect the citys financial health to remain satisfactory, despite revenue pressures and declines in General Fund balance reserves. Historically, the city has maintained General Fund balances equal to approximately 30% of revenues and has a formal policy of keeping an unreserved General Fund balance of 15% to 20% of annual revenues. b fiscal 2007, the General Fund balance declined by nearly $900,000 and declined an additional $1.3 million in fiscal 2008 due to budgetary pressures in a variety of areas, including increased fuel costs and increased salary and benefit costs. Another factor in the General Fund balance decline is state legislation that increased property tax exemptions for new machinery and equipment. As a result, the citys cash balance declined from $5.1 million to $3.8 million at the close of fiscal 201 Due to one- time unexpected budget variances and declining sales tax revenues, unaudited fiscal 2009 cash balance declined to $3.4 million. Typical of Kansas cities, sales tax receipts represent the city's primary operating revenue source, composing 43.2% of fiscal 2008 General Fund revenues. Several different sales taxes are collected, including a 1 % Countywide Local Option Sales Tax and a 0.5% Citywide Local Option Sales Tax and do not sunset. In addition, the city passed a 0.4% local sales tax effective April 1, 2009 replacing a .25% local sales tax that sunsets on June 1, 2010. Although sales tax revenues increased through fiscal 2008, this trend reversed beginning in fiscal 2009. The city - budgeted for a 2% decline in sales tax revenues, but receipts came in 3% less than budgeted. Collections are expected to continue to decline and officials have budgeted for an 8% decline in fiscal 2010. In response to declining sales tax revenues, city officials have implemented revenue increases and expenditure reductions. The property tax levy was increased by 2 mills, generating an additional $800,000 in additional property tax revenues annually. In addition, officials have identified $1.6 million in possible expenditure reductions to help absorb the impact of potential shortfalls in sales tax revenues. As a result, reserves are expected to remain level in fiscal 2010. Officials have budgeted to maintain reserve levels, with a target cash balance of $3.4 million, Moodys believes that city's finances will remain stable given recent revenue and expenditure adjustments necessary to maintain structurally balanced operations. However, continued declines in revenue shortfalls and expenditures increases beyond projections could pressure future credit quality. AVERAGE DEBT LEVELS WITH RAPID PRINCIPALAMORTIZATION Moody's believes the city's debt levels will remain manageable given rapid principal amortization and moderate debt needs. At 1.9% and 4.1% of full value, respectively, the citys direct and overall debt burdens are slightly below median debt levels for cities in the state. The city's overall debt burden is driven in large part by the significant debt levels of Saline County Unified School District 305 (GO rated Aa2). Principal amortization of the city's direct debt is rapid, with 79.7% of general obligation debt refired in ten years. The city generally issues long term and short term debt once or twice per year to fund projects outlined in its Capital Improvement Plan. The current Capital Improvement Plan calls for approximately $28 million in general obligation debt through 2015. WHAT COULD CHANGE THE RATING - UP Substantial growth in the citys taxbase Substantial improvement in General Fund reserves WHAT COULD CHANGE THE RATING - DOWN Significant erosion of the citys taxbase Significant deterioration in General Fund reserves to a level inconsistent with similarly rated credits KEY STATISTICS 2000 Census population: 45,679 (8.0% increase from 1990) 2008 Estimated population: 46,483 (1.8% increase since 2000) 2010 Full value: $2.9 billion 1999 Per capita income: $18,593 (86% of US) 1999 Median family income: $45,433 (91 %of US) 1999 Median home value: $83,900 (70% of US) City of Salina unemployment rate (August 2010): 5.9 Fiscal 2008 General Fund balance: S6 million (21.7% of General Fund revenues) Fiscal 2008 Unreserved General Fund balance: $5.7 million (20.8% of General Fund revenues) Direct debt burden: 1.9 Overall debt burden: 4.1 % Payout (10 Years): 79.7% Post -sale long term general obligation debt outstanding: $60.5 million PRINCIPALMETHODOLOGY The principal methodology used in ratng Salina (City of) KS was General Obligation Bonds Issued by U.S. Local Governments rating methodology published in October 2009. 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