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Arbitrage Report (2013 - November)816- 221 -1000 MAIN 816- 221 -1018 FAX GILMOREBELL.COM 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 GILMOREBELL GILMORE & BELL PC 2405 GRAND BOULEVARD, SUITE 1100 KANSAS CITY, MISSOURI 64108 -2521 November 6, 2013 ST. LOUIS WICHITA OMAHA I LINCOLN Re: $6,875,000 General Obligation Internal Improvement and Refunding Bonds, Series 2010 - A (the "Bonds ") issued by the City of Salina, Kansas (the "Issuer ") Dear Rod: Enclosed are the following documents related to our computation of arbitrage rebate and yield reduction payment liability in connection with the above - referenced bond issue: • Legal Opinion of Gilmore & Bell Regarding the Arbitrage Rebate Analysis; • Exhibit A - Explanation of Arbitrage Rebate Analysis; and • Exhibit B - Arbitrage Rebate Analysis as of October 1, 2013 (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 $147,267.77. There was no accrued yield reduction payment liability. As of the Computation Date, there are no gross proceeds that are subject to rebate. As long as the principal and interest fund continues to qualify as a bona fide debt service fund, no future computations will be required. Under the Federal tax laws, a final written allocation of expenditures should be completed for the Bonds. The final written allocation should be completed once all Bond proceeds deposited in the project funds for the Bonds have been spent, or if earlier, upon completion of the project financed by the Bonds. In any event, the final written allocation of expenditures should be completed no later than 60 days after the 5`h anniversary of the issue date of the Bonds. Please contact us if you would like our assistance in completing this allocation. Please contact Jennifer Moehlman at 816- 218 -7563 or at jmoehlman @gilmorebell.com if you have any questions. Very ly your , y K. Mische JLM:vp Enclosures cc: Gina M. Riekhof 816 -221 -1000 MAIN 816 - 221 -1018 FAX GILMOREBELL.COM City of Salina, Kansas GILMOkEBELL GILMORE & BELL PC 2405 GRAND BOULEVARD, SUITE 1100 KANSAS CITY, MISSOURI 64108 -2521 November 6, 2013 ST. LOUIS WICHITA OMAHA I LINCOLN Re: $6,875,000 General Obligation Internal Improvement and Refunding Bonds, Series 2010 - A (the "Bonds ") issued by the City of Salina, Kansas— Legal Opinion Regarding Arbitrage Rebate Analysis as of October 1, 2013 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, 2013 (the "Arbitrage Analysis ") for the above - referenced Bonds. We have attached as Exhibit A our Explanation of Arbitrage Rebate Analysis and as Exhibit B 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 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. As of the Computation Date, no yield reduction payment is required to be made for the Bonds. 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. In preparing the Arbitrage Analysis, we have exercised our best efforts to (1) correctly analyze the financial records provided to us and correctly incorporate those records into the Arbitrage Analysis, (2) correctly interpret applicable provisions of the of the Code, United States Treasury Regulations, rulings, and decisions, and (3) accurately compute the amount of rebate payment or yield reduction payment owed to the Internal Revenue Service (the "IRS "). This opinion represents our reasoned judgment based on the financial records provided to us and existing statutes, regulations, rulings and decisions and the stated assumptions in the Explanation of Arbitrage Rebate Analysis. The conclusions in this opinion are not binding on the IRS. We express no opinion as to the tax- exempt status of interest on the Bonds or as to compliance with the terms of the covenants and documents under which the Bonds were issued. LKM.jlm GILMOI,EBELL Very truly yours, 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, 2013 (the "Arbitrage Analysis ") for the $6,875,000 General Obligation Internal Improvement and Refunding Bonds, Series 2010 -A (the "Bonds ") issued by the City of Salina, Kansas (the "Issuer "). This explanation accompanies our legal opinion dated November 6, 2013. General Matters The time period covered by the Arbitrage Analysis (the "Computation Period ") began May 5, 2010 and ended October 1, 2013. (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 the Issuer. 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. 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. note proceeds, tax revenues, grants, etc.). Earnings from the investment of proceeds of the Bonds were calculated based on the unspent balance of Bond proceeds and the average monthly interest rate on Issuer's investments, as reported by the Issuer. We understand that Investment earnings on proceeds of the Bonds are initially deposited to the General Fund of the Issuer. Amounts in the General Fund were reasonably expected to be spent (using a "Bond proceeds spent first" method of accounting) within six months of the date of deposit. Since the Bonds are an issue of governmental purpose obligations, and because the General Fund contains tax or other revenues of the Issuer other than the proceeds of issues of tax exempt obligations, we have treated investment earnings on Bond proceeds as spent on the date they were earned in accordance with Treasury Regulation § 1.148- 6(d)(6). Bond Proceeds Allocated to Refunding Portion Bond proceeds were invested and allocation to the redemption of refunded obligations on the dates reflected in the Investment Records. 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 May 5, 2013 – Computation Date. 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. Exhibit B Arbitrage Rebate Analysis Computed as of October 1, 2013 City of Salina, Kansas General Obligation Internal Improvement and Refunding Bonds Series 2010 -A GILMOR,EBELL G I L M O R E & BELL. PC City of Salina, Kansas General Obligation Internal Improvement and Refunding Bonds Series 2010 -A Summary of Issue Par $ 6,875,000 Issue Date May 5, 2010 Bond Year Date October 1 Bond Yield 2.69379% Computation Date October 1, 2013 Summary of Rebate Computation Computation Results • Total Rebate Amount Results as of October 1, 2013 Rebate Liability by Source ($ 147,267.77) Redemption Fund Fund 791 - Stone Creek Addition Fund 724 - Scoular Addition ' No arbitrage rebate payment is due at this time. The net rebate amount as of October 1, 2013 is ($147,267.77). Fund 728 - Fire Station #1 Fund 726 - Bicentennial Center Fund 631 - Landfill Credits & Adjustments Total Rebate Amount ($2,500,000) (682.23) (87.93) (119,665.80) (15,197.64) (5,223.19) (6,410.97) (147,267.77) ($1,250,000) $C 111612013 -1- Gilmore & Bell, P. C. City of Salina, Kansas General Obligation Internal Improvement and Refunding Bonds Series 2010 -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 computations will be required. 8.00% 6.00% 4.00% 2.00% 0.00% Yield Comparison As of 10/1/2013 Fund 631 - Fund 726 - Fund 728 - Fire Fund 724 - Fund 791 - Stone Redemption Fund Landfill Bicentennial Station #1 Scoular Addition Creek Addition Center 111612013 -2- Gllm ore & Bell, P. C. City of Salina, Kansas General Obligation Internal Improvement and Refunding Bonds Series 2010 -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 5/5/2010 1,613,211.25 609,827.20 1,003,384.05 1,003,384.05 1,003,384.05 0.3286% - 5/6/2010 423,824.25 423,824.25 579,559.80 579,559.80 0.3286% 1,003,384.05 1 9.03 5/13/2010 7,267.34 7,267.34 572,292.46 572,292.46 0.3286% 579,559.80 7 36.52 5/20/2010 78.54 78.54 572,213.92 572,213.92 0.3286% 572,292.46 7 36.07 5/31/2010 138.29 138.29 572,213.92 572,213.92 0.3286% 572,213.92 11 56.67 6/3/2010 4,867.49 4,867.49 567,346.43 567,346.43 0.3039% 572,213.92 3 14.29 6/30/2010 141.84 141.84 567,346.43 567,346.43 0.3039% 567,346.43 27 127.55 7/31/2010 145.26 145.26 567,346.43 567,346.43 0.3015% 567,346.43 31 145.26 8/31/2010 138.52 138.52 567,346.43 567,346.43 0.2875 % 567,346.43 31 138.52 9/2/2010 2,787.69 2,787.69 564,558.74 564,558.74 0.2945% 567,346.43 2 9.16 9/10/2010 494,447.95 494,447.95 70,110.79 70,110.79 0.2945% 564,558.74 8 36.44 9/16/2010 60,733.75 60,733.75 9,377.04 9,377.04 0.2945% 70,110.79 6 3.39 9/30/2010 50.05 50.05 9,377.04 9,377.04 0.2945% 9,377.04 14 1.06 10/31/2010 2.39 2.39 9,377.04 9,377.04 0.2996% 9,377.04 31 2.39 11/30/2010 2.02 2.02 9,377.04 9,377.04 0.2616% 9,377.04 30 2.02 12/16/2010 6,000.00 6,000.00 3,377.04 3,377.04 0.2399% 9,377.04 16 0.99 12/16/2010 3,377.04 3,377.04 0.00 0.00 0.2399% - - 12/31/2010 0.99 0.99 0.00 0.00 0.2399% 0.00 15 - Totals 1,613,211.25 1,613,830.61 1,003,384.05 1,003,384.05 619.36 619.36 Cash Out Less Cash In: 619.36 Investment Receipts minus Purchases: 111612013 -3- CdImore & Bell, P.C. City of Salina, Kansas General Obligation Intemal Improvement and Refunding Bonds Series 2010 -A Date Net Investment Activity Arbitrage Rebate Computation Future Value Future Factor @ Value to Number 2.693791% 10/1/2013 of Days Investment Yield Present Value Present Factor @ Value to 0.306558% 5/5/2010 5/5/2010 (1,003,384.05) 1.0954073 (1,099,114.17) 1,226 1.0000000 (1,003,384.05) 5/6/2010 423,824.25 1.0953258 464,225.65 1,225 0.9999915 423,820.64 5/13/2010 7,267.34 1.0947561 7,955.96 1,218 0.9999319 7,266.85 5/20/2010 78.54 1.0941866 85.94 1,211 0.9998724 78.53 5/31/2010 138.29 1.0933737 151.20 1,201 0.9997788 138.26 6/3/2010 4,867.49 1.0931299 5,320.80 1,198 0.9997618 4,866.33 6/30/2010 141.84 1.0909383 154.74 1,171 0.9995321 141.77 7/31/2010 145.26 1.0885084 158.12 1,141 0.9992685 145.15 8/31/2010 138.52 1.0860839 150.44 1,111 0.9990134 138.38 9/2/2010 2,787.69 1.0859225 3,027.22 1,109 0.9990049 2,784.92 9/10/2010 494,447.95 1.0852770 536,612.96 1,101 0.9989369 493,922.32 9/16/2010 60,733.75 1.0847931 65,883.55 1,095 0.9988859 60,666.09 9/30/2010 50.05 1.0836648 54.24 1,081 0.9987670 49.99 10/31/2010 2.39 1.0812511 2.58 1,051 0.9985035 2.39 11/30/2010 2.02 1.0788428 2.18 1,021 0.9982572 2.02 12/16/2010 6,000.00 1.0775605 6,465.36 1,005 0.9981213 5,988.73 12/16/2010 3,377.04 1.0775605 3,638.97 1,005 0.9981213 3,370.70 12/31/2010 0.99 1.0764398 1.07 991 0.9979939 0.99 619.36 (5,223.19) (0.00) Summary of: Fund 631 - Landfill Arbitrage Rebate Amount: $ (5,223.19) Total Investment Earnings: 619.36 Investment Yield: 0.3066% Average Amount Invested: $ 308,191 Total Time Invested: 0.66 years 111612013 -4- CdImore & Bell, P.C. City of Salina, Kansas General Obligation Internal Improvement and Refunding Bonds Series 2010 -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 5/5/2010 2,496,380.50 1,032,927.22 1,463,453.28 1,463,453.28 1,463,453.28 0.3286% - 5/13/2010 12,575.85 12,575.85 1,450,877.43 1,450,877.43 0.3286% 1,463,453.28 8 105.40 5/20/2010 31,614.81 31,614.81 1,419,262.62 1,419,262.62 0.3286% 1,450,877.43 7 91.43 5/31/2010 337.38 337.38 1,419,262.62 1,419,262.62 0.3286% 1,419,262.62 11 140.55 6/3/2010 7,114.96 7,114.96 1,412,147.66 1,412,147.66 0.3039% 1,419,262.62 3 35.45 6/10/2010 36,000.00 36,000.00 1,376,147.66 1,376,147.66 0.3039% 1,412,147.66 7 82.31 6/17/2010 315.00 315.00 1,375,832.66 1,375,832.66 0.3039% 1,376,147.66 7 80.21 6/30/2010 346.90 346.90 1,375,832.66 1,375,832.66 0.3039% 1,375,832.66 13 148.93 7/15/2010 10,433.90 10,433.90 1,365,398.76 1,365,398.76 0.3015% 1,375,832.66 15 170.44 7/29/2010 12,658.75 12,658.75 1,352,740.01 1,352,740.01 0.3015% 1,365,398.76 14 157.87 7/31/2010 350.65 350.65 1,352,740.01 1,352,740.01 0.3015% 1,352,740.01 2 22.34 8/19/2010 264,317.00 264,317.00 1,088,423.01 1,088,423.01 0.2875% 1,352,740.01 19 202.43 8/20/2010 823.00 823.00 1,087,600.01 1,087,600.01 0.2875% 1,088,423.01 1 8.57 8/31/2010 305.22 305.22 1,087,600.01 1,087,600.01 0.2875% 1,087,600.01 11 94.22 9/16/2010 23,196.70 23,196.70 1,064,403.31 1,064,403.31 0.2945% 1,087,600.01 16 140.41 9/23/2010 694.68 694.68 1,063,708.63 1,063,708.63 0.2945% 1,064,403.31 7 60.12 9/30/2010 780,496.60 780,496.60 283,212.03 283,212.03 0.2945% 1,063,708.63 7 60.08 9/30/2010 260.61 260.61 283,212.03 283,212.03 0.2945% - - 10/7/2010 3,502.70 3,502.70 279,709.33 279,709.33 0.2996% 283,212.03 7 16.27 10/14/2010 1,201.37 1,201.37 278,507.96 278,507.96 0.2996% 279,709.33 7 16.07 10/28/2010 315.00 315.00 278,192.96 278,192.96 0.2996% 278,507.96 14 32.00 10/31/2010 71.19 71.19 278,192.96 278,192.96 0.2996% 278,192.96 3 6.85 11/4/2010 209,563.16 209,563.16 68,629.80 68,629.80 0.2616% 278,192.96 4 7.97 11/9/2010 247.50 247.50 68,382.30 68,382.30 0.2616% 68,629.80 5 2.46 11/30/2010 20.72 20.72 68,382.30 68,382.30 0.2616% 68,382.30 21 10.29 12/31/2010 13.93 13.93 68,382.30 68,382.30 0.2399% 68,382.30 31 13.93 1/31/2011 13.16 13.16 68,382.30 68,382.30 0.2266% 68,382.30 31 13.16 2/28/2011 12.19 12.19 68,382.30 68,382.30 0.2324% 68,382.30 28 12.19 3/9/2011 14,109.00 14,109.00 54,273.30 54,273.30 0.2313% 68,382.30 9 3.90 3/31/2011 11.47 11.47 54,273.30 54,273.30 0.2313% 54,273.30 22 7.57 4/30/2011 14.10 14.10 54,273.30 54,273.30 0.3160% 54,273.30 30 14.10 5/31/2011 14.58 14.58 54,273.30 54,273.30 0.3164% 54,273.30 31 14.58 6/9/2011 54,273.30 54,273.30 0.00 0.00 0.3080% 54,273.30 9 4.12 6/30/2011 4.12 - 4.12 0.00 0.00 0.3080% 0.00 21 - Totals 2,496,380.50 2,498,156.72 1,463,453.28 1,463,453.28 1,776.22 1,776.22 Cash Out Less Cash In: 1,776.22 Investment Receipts minus Purchases: 111612013 -5- Ghnore & BeB P.C. City of Salina, Kansas General Obligation Intemal Improvement and Refunding Bonds Series 2010 -A Date Net Investment Activity Arbitrage Future Value Factor @ 2.693791% Rebate Computation Future Value to Number 10/1/2013 of Days Investment Yield Present Value Present Factor @ Value to 0.302203% 5/5/2010 5/5/2010 (1,463,453.28) 1.0954073 (1,603,077.35) 1,226 1.0000000 (1,463,453.28) 5/13/2010 12,575.85 1.0947561 13,767.49 1,218 0.9999329 12,575.01 5/20/2010 31,614.81 1.0941866 34,592.50 1,211 0.9998742 31,610.83 5/31/2010 337.38 1.0933737 368.88 1,201 0.9997819 337.31 6/3/2010 7,114.96 1.0931299 7,777.58 1,198 0.9997652 7,113.29 6/10/2010 36,000.00 1.0925613 39,332.21 1,191 0.9997065 35,989.43 6/17/2010 315.00 1.0919930 343.98 1,184 0.9996478 314.89 6/30/2010 346.90 1.0909383 378.45 1,171 0.9995388 346.74 7/15/2010 10,433.90 1.0897227 11,370.06 1,156 0.9994130 10,427.78 7/29/2010 12,658.75 1.0885893 13,780.18 1,142 0.9992956 12,649.83 7/31/2010 350.65 1.0885084 381.69 1,141 0.9992789 350.40 8/19/2010 264,317.00 1.0869723 287,305.25 1,122 0.9991280 264,086.52 8/20/2010 823.00 1.0868915 894.51 1,121 0.9991196 822.28 8/31/2010 305.22 1.0860839 331.49 1,111 0.9990274 304.92 9/16/2010 23,196.70 1.0847931 25,163.62 1,095 0.9989018 23,171.22 9/23/2010 694.68 1.0842288 753.19 1,088 0.9988431 693.88 9/30/2010 780,496.60 1.0836648 845,796.71 1,081 0.9987845 779,547.87 9/30/2010 260.61 1.0836648 282.41 1,081 0.9987845 260.29 10/7/2010 3,502.70 1.0831011 3,793.78 1,074 0.9987258 3,498.24 10/14/2010 1,201.37 1.0825378 1,300.53 1,067 0.9986672 1,199.77 10/28/2010 315.00 1.0814119 340.64 1,053 0.9985499 314.54 10/31/2010 71.19 1.0812511 76.97 1,051 0.9985248 71.08 11/4/2010 209,563.16 1.0809297 226,523.04 1,047 0.9984996 209,248.74 11/9/2010 247.50 1.0805280 267.43 1,042 0.9984578 247.12 11/30/2010 20.72 1.0788428 22.35 1,021 0.9982819 20.68 12/31/2010 13.93 1.0764398 14.99 991 0.9980223 13.90 1/31/2011 13.16 1.0740422 14.13 961 0.9977712 13.13 2/28/2011 12.19 1.0716499 13.06 931 0.9975453 12.16 3/9/2011 14,109.00 1.0709333 15,109.80 922 0.9974532 14,073.07 3/31/2011 11.47 1.0692630 12.26 901 0.9972692 11.44 4/30/2011 14.10 1.0668813 15.04 871 0.9970266 14.06 5/31/2011 14.58 1.0645050 15.52 841 0.9967674 14.53 6/9/2011 54,273.30 1.0637931 57,735.56 832 0.9967005 54,094.23 6/30/2011 4.12 1.0621340 4.38 811 0.9965250 4.11 1,776.22 (15,197.64) (0.00) 111612013 -6- CdImore & Bell, P.C. City of Salina, Kansas General Obligation Intemal Improvement and Refunding Bonds Series 2010 -A Summary of: Fund 726 - Bicentennial Center Arbitrage Rebate Amount: $ (15,197.64) Total Investment Earnings: 1,776.22 Investment Yield: 0.3022% Average Amount Invested: $ 509,862 Total Time Invested: 1.15 years 111612013 -7- Gilmore & Bell, P. C. Arbitrage Rebate Computation Investment Yield Future Present Net Value Future Value Present Investment Factor @ Value to Number Factor @ Value to Date Activity 2.693791% 10/1/2013 of Days 0.302203% 5/5/2010 Summary of: Fund 726 - Bicentennial Center Arbitrage Rebate Amount: $ (15,197.64) Total Investment Earnings: 1,776.22 Investment Yield: 0.3022% Average Amount Invested: $ 509,862 Total Time Invested: 1.15 years 111612013 -7- Gilmore & Bell, P. C. City of Salina, Kansas General Obligation Internal Improvement and Refunding Bonds Series 2010 -A 111612013 -8- CdImore & Bell, P.C. 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 5/5/2010 1,784,407.94 10,000.00 1,774,407.94 1,774,407.94 1,774,407.94 0.3286% - 5/6/2010 7,000.00 7,000.00 1,767,407.94 1,767,407.94 0.3286% 1,774,407.94 1 15.97 5/13/2010 8,038.56 8,038.56 1,759,369.38 1,759,369.38 0.3286% 1,767,407.94 7 111.38 5/20/2010 86.88 86.88 1,759,282.50 1,759,282.50 0.3286% 1,759,369.38 7 110.87 5/31/2010 412.44 412.44 1,759,282.50 1,759,282.50 0.3286% 1,759,282.50 11 174.22 6/3/2010 5,384.03 5,384.03 1,753,898.47 1,753,898.47 0.3039% 1,759,282.50 3 43.95 6/10/2010 7,000.00 7,000.00 1,746,898.47 1,746,898.47 0.3039% 1,753,898.47 7 102.23 6/30/2010 437.10 437.10 1,746,898.47 1,746,898.47 0.3039% 1,746,898.47 20 290.92 7/22/2010 72,000.00 72,000.00 1,674,898.47 1,674,898.47 0.3015% 1,746,898.47 22 317.40 7/31/2010 441.90 441.90 1,674,898.47 1,674,898.47 0.3015% 1,674,898.47 9 124.50 8/12/2010 9,000.00 9,000.00 1,665,898.47 1,665,898.47 0.2875% 1,674,898.47 12 158.30 8/31/2010 407.59 407.59 1,665,898.47 1,665,898.47 0.2875% 1,665,898.47 19 249.29 9/30/2010 403.25 403.25 1,665,898.47 1,665,898.47 0.2945% 1,665,898.47 30 403.25 10/31/2010 423.88 423.88 1,665,898.47 1,665,898.47 0.2996% 1,665,898.47 31 423.88 11/4/2010 3,082.50 3,082.50 1,662,815.97 1,662,815.97 0.2616 % 1,665,898.47 4 47.75 11/18/2010 4,500.00 4,500.00 1,658,315.97 1,658,315.97 0.2616% 1,662,815.97 14 166.82 11/30/2010 357.17 357.17 1,658,315.97 1,658,315.97 0.2616% 1,658,315.97 12 142.60 12/9/2010 26,600.00 26,600.00 1,631,715.97 1,631,715.97 0.2399% 1,658,315.97 9 98.10 12/31/2010 334.06 334.06 1,631,715.97 1,631,715.97 0.2399% 1,631,715.97 22 235.96 1/31/2011 314.03 314.03 1,631,715.97 1,631,715.97 0.2266% 1,631,715.97 31 314.03 2/28/2011 290.90 290.90 1,631,715.97 1,631,715.97 0.2324% 1,631,715.97 28 290.90 3/31/2011 320.50 320.50 1,631,715.97 1,631,715.97 0.2313% 1,631,715.97 31 320.50 4/30/2011 423.77 423.77 1,631,715.97 1,631,715.97 0.3160% 1,631,715.97 30 423.77 5/31/2011 438.42 438.42 1,631,715.97 1,631,715.97 0.3164% 1,631,715.97 31 438.42 6/30/2011 413.02 413.02 1,631,715.97 1,631,715.97 0.3080% 1,631,715.97 30 413.02 7/31/2011 416.61 416.61 1,631,715.97 1,631,715.97 0.3006% 1,631,715.97 31 416.61 8/31/2011 400.51 400.51 1,631,715.97 1,631,715.97 0.2890% 1,631,715.97 31 400.51 9/30/2011 395.64 395.64 1,631,715.97 1,631,715.97 0.2950% 1,631,715.97 30 395.64 10/31/2011 339.53 339.53 1,631,715.97 1,631,715.97 0.2450% 1,631,715.97 31 339.53 11/30/2011 489.51 489.51 1,631,715.97 1,631,715.97 0.3650% 1,631,715.97 30 489.51 12/31/2011 497.52 497.52 1,631,715.97 1,631,715.97 0.3590% 1,631,715.97 31 497.52 1/31/2012 397.74 397.74 1,631,715.97 1,631,715.97 0.2870% 1,631,715.97 31 397.74 2/28/2012 371.76 371.76 1,631,715.97 1,631,715.97 0.2970% 1,631,715.97 28 371.76 3/31/2012 423.44 423.44 1,631,715.97 1,631,715.97 0.2960% 1,631,715.97 32 423.44 4/30/2012 435.87 435.87 1,631,715.97 1,631,715.97 0.3250% 1,631,715.97 30 435.87 5/31/2012 450.40 450.40 1,631,715.97 1,631,715.97 0.3250% 1,631,715.97 31 450.40 6/21/2012 20,300.00 20,300.00 1,611,415.97 1,611,415.97 0.3050% 1,631,715.97 21 286.33 6/30/2012 407.52 407.52 1,611,415.97 1,611,415.97 0.3050% 1,611,415.97 9 121.19 7/31/2012 417.42 417.42 1,611,415.97 1,611,415.97 0.3050% 1,611,415.97 31 417.42 111612013 -8- CdImore & Bell, P.C. City of Salina, Kansas General Obligation Internal Improvement and Refunding Bonds Series 2010 -A 111612013 -9- CdImore & Bell, AC. 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 8/13/2012 5,000.00 5,000.00 1,606,415.97 1,606,415.97 0.2820% 1,611,415.97 13 161.85 8/31/2012 385.25 385.25 1,606,415.97 1,606,415.97 0.2820% 1,606,415.97 18 223.40 9/20/2012 1,000.00 1,000.00 1,605,415.97 1,605,415.97 0.3270% 1,606,415.97 20 287.83 9/27/2012 547.54 547.54 1,604,868.43 1,604,868.43 0.3270% 1,605,415.97 7 100.68 9/30/2012 431.64 431.64 1,604,868.43 1,604,868.43 0.3270% 1,604,868.43 3 43.13 10/4/2012 4,900.00 4,900.00 1,599,968.43 1,599,968.43 0.3500% 1,604,868.43 4 61.56 10/11/2012 486.36 486.36 1,599,482.07 1,599,482.07 0.3500% 1,599,968.43 7 107.40 10/18/2012 4,960.18 4,960.18 1,594,521.89 1,594,521.89 0.3500% 1,599,482.07 7 107.36 10/25/2012 2,886.67 2,886.67 1,591,635.22 1,591,635.22 0.3500% 1,594,521.89 7 107.03 10/31/2012 474.92 474.92 1,591,635.22 1,591,635.22 0.3500% 1,591,635.22 6 91.57 11/1/2012 2,548.13 2,548.13 1,589,087.09 1,589,087.09 0.3720% 1,591,635.22 1 16.22 11/8/2012 7,071.72 7,071.72 1,582,015.37 1,582,015.37 0.3720% 1,589,087.09 7 113.37 11/15/2012 5,019.33 5,019.33 1,576,996.04 1,576,996.04 0.3720% 1,582,015.37 7 112.86 11/29/2012 195,033.85 195,033.85 1,381,962.19 1,381,962.19 0.3720% 1,576,996.04 14 225.01 11/30/2012 481.54 481.54 1,381,962.19 1,381,962.19 0.3720% 1,381,962.19 1 14.08 12/6/2012 3,137.34 3,137.34 1,378,824.85 1,378,824.85 0.3580% 1,381,962.19 6 81.33 12/13/2012 5,598.00 5,598.00 1,373,226.85 1,373,226.85 0.3580% 1,378,824.85 7 94.67 12/31/2012 418.44 418.44 1,373,226.85 1,373,226.85 0.3580% 1,373,226.85 18 242.44 1/10/2013 1,771.00 1,771.00 1,371,455.85 1,371,455.85 0.3130% 1,373,226.85 10 117.76 1/17/2013 3,000.00 3,000.00 1,368,455.85 1,368,455.85 0.3130% 1,371,455.85 7 82.32 1/31/2013 364.37 364.37 1,368,455.85 1,368,455.85 0.3130% 1,368,455.85 14 164.29 2/7/2013 446,961.91 446,961.91 921,493.94 921,493.94 0.2830% 1,368,455.85 7 74.27 2/14/2013 625.00 625.00 920,868.94 920,868.94 0.2830% 921,493.94 7 50.01 2/28/2013 224.24 224.24 920,868.94 920,868.94 0.2830% 920,868.94 14 99.96 3/1/2013 20,000.00 20,000.00 900,868.94 900,868.94 0.3120% 920,868.94 1 7.87 3/7/2013 82,150.28 82,150.28 818,718.66 818,718.66 0.3120% 900,868.94 6 46.20 3/14/2013 460.30 460.30 818,258.36 818,258.36 0.3120% 818,718.66 7 48.99 3/28/2013 2,252.00 2,252.00 816,006.36 816,006.36 0.3120% 818,258.36 14 97.92 3/31/2013 221.91 221.91 816,006.36 816,006.36 0.3120% 816,006.36 3 20.93 4/4/2013 21,291.00 21,291.00 794,715.36 794,715.36 0.2190% 816,006.36 4 19.58 4/11/2013 117,805.64 117,805.64 676,909.72 676,909.72 0.2190% 794,715.36 7 33.38 4/18/2013 8,276.97 8,276.97 668,632.75 668,632.75 0.2190% 676,909.72 7 28.43 4/30/2013 129.53 129.53 668,632.75 668,632.75 0.2190% 668,632.75 12 48.14 5/2/2013 2,449.04 2,449.04 666,183.71 666,183.71 0.1810% 668,632.75 2 6.63 5/9/2013 88,385.14 88,385.14 577,798.57 577,798.57 0.1810% 666,183.71 7 23.12 5/16/2013 637.00 637.00 577,161.57 577,161.57 0.1810% 577,798.57 7 20.06 5/23/2013 3,657.00 3,657.00 573,504.57 573,504.57 0.1810% 577,161.57 7 20.03 5/31/2013 92.59 92.59 573,504.57 573,504.57 0.1810% 573,504.57 8 22.75 6/6/2013 171,001.68 171,001.68 402,502.89 402,502.89 0.1480% 573,504.57 6 13.95 111612013 -9- CdImore & Bell, AC. City of Salina, Kansas General Obligation Internal Improvement and Refunding Bonds Series 2010 -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 6/13/2013 4,450.11 4,450.11 398,052.78 398,052.78 0.1480% 402,502.89 7 11.42 6/20/2013 466.08 466.08 397,586.70 397,586.70 0.1480% 398,052.78 7 11.30 6/30/2013 52.79 52.79 397,586.70 397,586.70 0.1480% 397,586.70 10 16.12 7/3/2013 1,090.00 1,090.00 396,496.70 396,496.70 0.1350% 397,586.70 3 4.41 7/11/2013 240,841.96 240,841.96 155,654.74 155,654.74 0.1350% 396,496.70 8 11.73 7/18/2013 3,000.00 3,000.00 152,654.74 152,654.74 0.1350% 155,654.74 7 4.03 7/25/2013 2,967.60 2,967.60 149,687.14 149,687.14 0.1350% 152,654.74 7 3.95 7/31/2013 27.44 27.44 149,687.14 149,687.14 0.1350% 149,687.14 6 3.32 8/1/2013 190.00 190.00 149,497.14 149,497.14 0.1470% 149,687.14 1 0.60 8/8/2013 149,497.14 149,497.14 - - 0.1470% 149,497.14 7 4.21 8/31/2013 4.81 4.81 0.1470% - - Totals 1,784,407.94 1,798,578.91 1,774,407.94 1,774,407.94 14,170.97 14,170.97 Cash Out Less Cash In: Investment Receipts minus Purchases: 14,170.97 111612013 -10- Gilmore & Bell, P. C. City of Salina, Kansas General Obligation Intemal Improvement and Refunding Bonds Series 2010 -A Date Net Investment Activity Arbitrage Future Value Factor @ 2.693791% Rebate Computation Future Value to Number 10/1/2013 of Days Investment Yield Present Value Present Factor @ Value to 0.297139% 5/5/2010 5/5/2010 (1,774,407.94) 1.0954073 (1,943,699.34) 1,226 1.0000000 (1,774,407.94) 5/6/2010 7,000.00 1.0953258 7,667.28 1,225 0.9999918 6,999.94 5/13/2010 8,038.56 1.0947561 8,800.26 1,218 0.9999340 8,038.03 5/20/2010 86.88 1.0941866 95.06 1,211 0.9998763 86.87 5/31/2010 412.44 1.0933737 450.95 1,201 0.9997856 412.35 6/3/2010 5,384.03 19931299 5,885.44 1,198 0.9997691 5,382.79 6/10/2010 7,000.00 1.0925613 7,647.93 1,191 0.9997114 6,997.98 6/30/2010 437.10 1.0909383 476.85 1,171 0.9995465 436.90 7/22/2010 72,000.00 1.0891559 78,419.22 1,149 0.9993651 71,954.29 7/31/2010 441.90 1.0885084 481.01 1,141 0.9992909 441.59 8/12/2010 9,000.00 1.0875380 9,787.84 1,129 0.9992003 8,992.80 8/31/2010 407.59 1.0860839 442.68 1,111 0.9990437 407.20 9/30/2010 403.25 1.0836648 436.99 1,081 0.9988048 402.77 10/31/2010 423.88 1.0812511 458.32 1,051 0.9985495 423.27 11/4/2010 3,082.50 1.0809297 3,331.97 1,047 0.9985247 3,077.95 11/18/2010 4,500.00 1.0798055 4,859.12 1,033 0.9984095 4,492.84 11/30/2010 357.17 1.0788428 385.33 1,021 0.9983106 356.57 12/9/2010 26,600.00 1.0781213 28,678.03 1,012 0.9982365 26,553.09 12/31/2010 334.06 1.0764398 359.60 991 0.9980554 333.41 1/31/2011 314.03 1.0740422 337.28 961 0.9978085 313.34 2/28/2011 290.90 1.0716499 311.74 931 0.9975863 290.20 3/31/2011 320.50 1.0692630 342.70 901 0.9973148 319.64 4/30/2011 423.77 1.0668813 452.11 871 0.9970763 422.53 5/31/2011 438.42 1.0645050 466.70 841 0.9968214 437.03 6/30/2011 413.02 1.0621340 438.68 811 0.9965830 411.61 7/31/2011 416.61 1.0597682 441.51 781 0.9963283 415.08 8/31/2011 400.51 1.0574077 423.50 751 0.9960818 398.94 9/30/2011 395.64 1.0550525 417.42 721 0.9958436 394.00 10/31/2011 339.53 1.0527025 357.42 691 0.9955890 338.03 11/30/2011 489.51 1.0503578 514.16 661 0.9953509 487.23 12/31/2011 497.52 1.0480183 521.41 631 0.9950964 495.08 1/31/2012 397.74 1.0456840 415.91 601 0.9948502 395.69 2/28/2012 371.76 1.0435100 387.94 573 0.9946287 369.76 3/31/2012 423.44 1.0410309 440.81 541 0.9943580 421.05 4/30/2012 435.87 1.0387122 452.74 511 0.9941202 433.31 5/31/2012 450.40 1.0363986 466.79 481 0.9938661 447.64 6/21/2012 20,300.00 1.0347821 21,006.08 460 0.9937021 20,172.15 6/30/2012 407.52 1.0340902 421.41 451 0.9936284 404.92 7/31/2012 417.42 1.0317869 430.69 421 0.9933744 414.65 111612013 - 11- CdImorr & Bell, P.C. City of Salina, Kansas General Obligation Intemal Improvement and Refunding Bonds Series 2010 -A Date Net Investment Activity Arbitrage Future Value Factor @ 2.693791% Rebate Computation Future Value to Number 10/1/2013 of Days Investment Yield Present Value Present Factor @ Value to 0.297139% 5/5/2010 8/13/2012 5,000.00 1.0307904 5,153.95 408 0.9932761 4,966.38 8/31/2012 385.25 1.0294887 396.61 391 0.9931286 382.60 9/20/2012 1,000.00 1.0279594 1,027.96 371 0.9929730 992.97 9/27/2012 547.54 1.0274247 562.56 364 0.9929157 543.66 9/30/2012 431.64 1.0271957 443.38 361 0.9928911 428.57 10/4/2012 4,900.00 1.0268903 5,031.76 357 0.9928583 4,865.01 10/11/2012 486.36 1.0263562 499.18 350 0.9928010 482.86 10/18/2012 4,960.18 1.0258223 5,088.26 343 0.9927437 4,924.19 10/25/2012 2,886.67 1.0252887 2,959.67 336 0.9926864 2,865.56 10/31/2012 474.92 1.0249077 486.75 331 0.9926373 471.42 11/1/2012 2,548.13 1.0248316 2,611.40 330 0.9926373 2,529.37 11/8/2012 7,071.72 1.0242985 7,243.55 323 0.9925800 7,019.25 11/15/2012 5,019.33 1.0237657 5,138.62 316 0.9925227 4,981.80 11/29/2012 195,033.85 1.0227009 199,461.30 302 0.9924081 193,553.16 11/30/2012 481.54 1.0226249 492.43 301 0.9923999 477.88 12/6/2012 3,137.34 1.0221689 3,206.89 295 0.9923508 3,113.34 12/13/2012 5,598.00 1.0216372 5,719.13 288 0.9922935 5,554.86 12/31/2012 418.44 1.0203471 426.95 271 0.9921462 415.15 1/10/2013 1,771.00 1.0195890 1,805.69 261 0.9920725 1,756.96 1/17/2013 3,000.00 1.0190587 3,057.18 254 0.9920152 2,976.05 1/31/2013 364.37 1.0180745 370.96 241 0.9919007 361.42 2/7/2013 446,961.91 1.0175449 454,803.81 234 0.9918516 443,319.90 2/14/2013 625.00 1.0170156 635.63 227 0.9917944 619.87 2/28/2013 224.24 1.0158069 227.78 211 0.9916798 222.37 3/1/2013 20,000.00 1.0157314 20,314.63 210 0.9916553 19,833.11 3/7/2013 82,150.28 1.0152785 83,405.41 204 0.9916062 81,460.73 3/14/2013 460.30 1.0147504 467.09 197 0.9915490 456.41 3/28/2013 2,252.00 1.0136950 2,282.84 183 0.9914345 2,232.71 3/31/2013 221.91 1.0135443 224.92 181 0.9914100 220.00 4/4/2013 21,291.00 1.0132430 21,572.96 177 0.9913854 21,107.59 4/11/2013 117,805.64 1.0127159 119,303.65 170 0.9913282 116,784.05 4/18/2013 8,276.97 1.0121892 8,377.86 163 0.9912710 8,204.72 4/30/2013 129.53 1.0112868 130.99 151 0.9911729 128.39 5/2/2013 2,449.04 1.0111364 2,476.31 149 0.9911565 2,427.38 5/9/2013 88,385.14 1.0106105 89,322.95 142 0.9910993 87,598.45 5/16/2013 637.00 1.0100848 643.42 135 0.9910421 631.29 5/23/2013 3,657.00 1.0095594 3,691.96 128 0.9909849 3,624.03 5/31/2013 92.59 1.0090343 93.43 121 0.9909195 91.75 6/6/2013 171,001.68 1.0085844 172,469.62 115 0.9908786 169,441.91 111612013 -12- CdImore & Bell, P.C. City of Salina, Kansas General Obligation Intemal Improvement and Refunding Bonds Series 2010 -A 6/13/2013 Arbitrage Rebate Computation Investment Yield 1.0080597 Future Present Net Value Future Value Present Investment Factor @ Value to Number Factor @ Value to Date Activity 2.693791% 10/1/2013 of Days 0.297139% 5/5/2010 6/13/2013 4,450.11 1.0080597 4,485.98 108 0.9908214 4,409.26 6/20/2013 466.08 1.0075354 469.59 101 0.9907642 461.78 6/30/2013 52.79 1.0067868 53.15 91 0.9906825 52.30 7/3/2013 1,090.00 1.0065623 1,097.15 88 0.9906580 1,079.82 7/11/2013 240,841.96 1.0059640 242,278.33 80 0.9905926 238,576.27 7/18/2013 3,000.00 1.0054407 3,016.32 73 0.9905354 2,971.61 7/25/2013 2,967.60 1.0049177 2,982.19 66 0.9904782 2,939.34 7/31/2013 27.44 1.0045443 27.56 61 0.9904292 27.18 8/1/2013 190.00 1.0044696 190.85 60 0.9904292 188.18 8/8/2013 149,497.14 1.0039472 150,087.23 53 0.9903721 148,057.79 8/31/2013 4.81 1.0023068 4.82 31 0.9901842 4.76 14,170.97 (119,665.80) 0.00 Summary of: Fund 728 - Fire Station #1 Arbitrage Rebate Amount: $ (119,665.80) Total Investment Earnings: 14,170.97 Investment Yield: 0.2971% Average Amount Invested: $ 1,435,526 Total Time Invested: 3.32 years 111612013 -13- CdImorr & Bell, AC. City of Salina, Kansas General Obligation hrtemal Improvement and Refunding Bonds Series 2010 -A Cash and Investment Activity Imputed Interest Calculation Cash Out Less Cash In: 9.24 Investment Receipts minus Purchases: 111612013 -14- Cdlmore & Bell, AC. 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 5/5/2010 52,422.99 48,277.25 4,145.74 4,145.74 4,145.74 0.3286% - - 5/13/2010 236.15 236.15 3,909.59 3,909.59 0.3286% 4,145.74 8 0.30 5/20/2010 2.55 2.55 3,907.04 3,907.04 0.3286% 3,909.59 7 0.25 5/31/2010 0.94 0.94 3,907.04 3,907.04 0.3286% 3,907.04 11 0.39 6/3/2010 158.16 158.16 3,748.88 3,748.88 0.3039% 3,907.04 3 0.10 6/30/2010 0.94 0.94 3,748.88 3,748.88 0.3039% 3,748.88 27 0.84 7/31/2010 0.96 0.96 3,748.88 3,748.88 0.3015% 3,748.88 31 0.96 8/31/2010 0.92 0.92 3,748.88 3,748.88 0.2875% 3,748.88 31 0.92 9/30/2010 0.91 0.91 3,748.88 3,748.88 0.2945% 3,748.88 30 0.91 10/30/2010 0.92 0.92 3,748.88 3,748.88 0.2996% 3,748.88 30 0.92 11/30/2010 0.83 0.83 3,748.88 3,748.88 0.2616% 3,748.88 31 0.83 12/31/2010 0.76 0.76 3,748.88 3,748.88 0.2399% 3,748.88 31 0.76 1/31/2011 0.72 0.72 3,748.88 3,748.88 0.2266% 3,748.88 31 0.72 2/28/2011 0.67 0.67 3,748.88 3,748.88 0.2324% 3,748.88 28 0.67 3/28/2011 3,748.88 3,748.88 - - 0.2313% 3,748.88 28 0.67 3/31/2011 0.67 0.67 0.2313% - - Totals 52,422.99 52,432.23 4,145.74 4,145.74 9.24 9.24 Cash Out Less Cash In: 9.24 Investment Receipts minus Purchases: 111612013 -14- Cdlmore & Bell, AC. City of Salina, Kansas General Obligation Intemal Improvement and Refunding Bonds Series 2010 -A Date Net Investment Activity Arbitrage Rebate Computation Future Value Future Factor @ Value to Number 2.693791% 10/1/2013 of Days Investment Yield Present Value Present Factor @ Value to 0.273453% 5/5/2010 5/5/2010 (4,145.74) 1.0954073 (4,541.27) 1,226 1.0000000 (4,145.74) 5/13/2010 236.15 1.0947561 258.53 1,218 0.9999393 236.14 5/20/2010 2.55 1.0941866 2.79 1,211 0.9998861 2.55 5/31/2010 0.94 1.0933737 1.03 1,201 0.9998027 0.94 6/3/2010 158.16 1.0931299 172.89 1,198 0.9997875 158.13 6/30/2010 0.94 19909383 1.03 1,171 0.9995826 0.94 7/31/2010 0.96 1.0885084 1.04 1,141 0.9993474 0.96 8/31/2010 0.92 1.0860839 1.00 1,111 0.9991199 0.92 9/30/2010 0.91 1.0836648 0.99 1,081 0.9988999 0.91 10/30/2010 0.92 1.0812511 0.99 1,051 0.9986725 0.92 11/30/2010 0.83 1.0788428 0.90 1,021 0.9984451 0.83 12/31/2010 0.76 1.0764398 0.82 991 0.9982102 0.76 1/31/2011 0.72 1.0740422 0.77 961 0.9979829 0.72 2/28/2011 0.67 1.0716499 0.72 931 0.9977784 0.67 3/28/2011 3,748.88 1.0694219 4,009.13 903 0.9975512 3,739.70 3/31/2011 0.67 1.0692630 0.72 901 0.9975285 0.67 9.24 (87.93) (0.00) Summary of: Fund 724 - Scoular Addition Arbitrage Rebate Amount: $ (87.93) Total Investment Earnings: 9.24 Investment Yield: 0.2735% Average Amount Invested: $ 3,731 Total Time Invested: 0.91 years 111612013 -15- Gilmour & Bell, P. C. City of Salina, Kansas General Obligation hrtemal Improvement and Refunding Bonds Series 2010 -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 5/5/2010 353,586.47 321,806.70 353,586.47 321,806.70 31,779.77 31,779.77 0.3286% - - 5/13/2010 1,592.89 1,592.89 30,186.88 30,186.88 0.3286% 31,779.77 8 2.29 5/19/2010 17.22 17.22 30,169.66 30,169.66 0.3286% 30,186.88 6 1.63 5/31/2010 7.18 7.18 30,169.66 30,169.66 0.3286% 30,169.66 12 3.26 6/3/2010 8.84 8.84 30,160.82 30,160.82 0.3039% 30,169.66 3 0.75 6/3/2010 1,058.02 1,058.02 29,102.80 29,102.80 0.3039% - - 6/30/2010 7.29 7.29 29,102.80 29,102.80 0.3039% 29,102.80 27 6.54 7/31/2010 7.45 7.45 29,102.80 29,102.80 0.3015% 29,102.80 31 7.45 8/31/2010 7.11 7.11 29,102.80 29,102.80 0.2875% 29,102.80 31 7.11 9/30/2010 7.04 7.04 29,102.80 29,102.80 0.2945% 29,102.80 30 7.04 10/31/2010 7.41 7.41 29,102.80 29,102.80 0.2996% 29,102.80 31 7.41 11/30/2010 6.26 6.26 29,102.80 29,102.80 0.2616% 29,102.80 30 6.26 12/31/2010 5.93 5.93 29,102.80 29,102.80 0.2399% 29,102.80 31 5.93 1/31/2011 5.60 5.60 29,102.80 29,102.80 0.2266% 29,102.80 31 5.60 2/28/2011 5.19 5.19 29,102.80 29,102.80 0.2324% 29,102.80 28 5.19 3/28/2011 29,102.80 29,102.80 (0.00) (0.00) 0.2313% 29,102.80 28 5.16 3/31/2011 5.16 - 5.16 (0.00) (0.00) 0.2313% (0.00) 3 - Totals 353,586.47 353,658.09 353,586.47 353,586.47 71.62 71.62 Cash Out Less Cash In: 71.62 Investment Receipts minus Purchases: - 111612013 -16- CdImore & Bell, P.C. City of Salina, Kansas General Obligation Intemal Improvement and Refunding Bonds Series 2010 -A Net Investment Date Activity Arbitrage Rebate Computation Future Value Future Factor @ Value to Number 2.693791% 10/1/2013 of Days Investment Yield Present Value Present Factor @ Value to 0.273218% 5/5/2010 5/5/2010 (31,779.77) 1.0954073 (34,811.79) 1,226 1.0000000 (31,779.77) 5/13/2010 1,592.89 1.0947561 1,743.83 1,218 0.9999393 1,592.79 5/19/2010 17.22 1.0942680 18.84 1,212 0.9998938 17.22 5/31/2010 7.18 1.0933737 7.85 1,201 0.9998028 7.18 6/3/2010 8.84 1.0931299 9.66 1,198 0.9997877 8.84 6/3/2010 1,058.02 19931299 1,156.55 1,198 0.9997877 1,057.80 6/30/2010 7.29 1.0909383 7.95 1,171 0.9995830 7.29 7/31/2010 7.45 1.0885084 8.11 1,141 0.9993480 7.45 8/31/2010 7.11 1.0860839 7.72 1,111 0.9991206 7.10 9/30/2010 7.04 1.0836648 7.63 1,081 0.9989009 7.03 10/31/2010 7.41 1.0812511 8.01 1,051 0.9986661 7.40 11/30/2010 6.26 1.0788428 6.75 1,021 0.9984464 6.25 12/31/2010 5.93 1.0764398 6.38 991 0.9982117 5.92 1/31/2011 5.60 1.0740422 6.01 961 0.9979846 5.59 2/28/2011 5.19 1.0716499 5.56 931 0.9977803 5.18 3/28/2011 29,102.80 1.0694219 31,123.17 903 0.9975533 29,031.59 3/31/2011 5.16 1.0692630 5.52 901 0.9975306 5.15 71.62 (682.23) (0.00) Summary of: Fund 791 - Stone Creek Addition Arbitrage Rebate Amount: $ (682.23) Total Investment Earnings: 71.62 Investment Yield: 0.2732% Average Amount Invested: $ 28,947 Total Time Invested: 0.91 years 111612013 -17- CdImorr & Bell, P.C. City of Salina, Kansas General Obligation Internal Improvement and Refunding Bonds Series 2010 -A Cash and Investment Activity Total Cash Transactions Investments Cash and Date Cash In Cash Out Balance Purchase Receipt Earnings Balance Investments 5/5/2010 824,340.72 824,340.72 - 824,340.72 5/15/2010 824,340.72 - - - Totals 824,340.72 824,340.72 Cash Out Less Cash In: Investment Receipts minus Purchases: 111612013 -18- Gllm ore & Bell, P. C. City of Salina, Kansas General Obligation Internal Improvement and Refunding Bonds Series 2010 -A Arbitrage Rebate Computation Investment Yield Future Present Net Value Future Value Present Investment Factor @ Value to Number Factor @ Value to Date Activity 2.693791% 10/1/2013 of Days 0.000000% 5/5/2010 5/5/2010 - 1.0954073 - 1,226 1.0000000 - 5/15/2010 - 1.0945934 - 1,216 1.0000000 - Summary of : Redemption Fund Arbitrage Rebate Amount: S - Total Investment Earnings: - Investment Yield: 0.00000/o Average Amount Invested: $ - Total Time Invested: 0.03 years 111612013 -19- Gllm ore & Bell, P. C. City of Salina, Kansas General Obligation Internal Improvement and Refunding Bonds Series 2010 -A (6,160.00) Total Adjustments: $ (6,410.97) 111612013 -20- Gllm ore & Bell, P. C. Arbitrage Rebate Computation Future Value Future Factor @ Value to Number Date Description Amount 2.693791% 10/1/2013 of Days 10/1/2010 Computation Credit (1,500.00) 1.0835843 (1,625.38) 1,080 10/1/2011 Computation Credit (1,520.00) 1.0549741 (1,603.56) 720 10/1/2012 Computation Credit (1,550.00) 1.0271193 (1,592.03) 360 10/1/2013 Computation Credit (1,590.00) 1.0000000 (1,590.00) - (6,160.00) Total Adjustments: $ (6,410.97) 111612013 -20- Gllm ore & Bell, P. C. City of Salina, Kansas General Obligation Internal Improvement and Refunding Bonds Series 2010 -A Month Month Beg. Month End. Overall Yld Jun -09 6/l/2009 6/30/2009 1.211% 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% 111612013 -21- Gilmore & Bell, P.C. Month Month Beg. Month End. Overall Yld Jul -11 7/l/2011 7/31/2011 0.301% Aug -11 8/1/2011 8/31/2011 0.289% Sep -11 9/1/2011 9/30/2011 0.295% Oct -11 10/1/2011 10/31/2011 0.245% Nov -11 11/l /2011 11/30/2011 0.365% Dec -11 12/1/2011 12/31/2011 0.359% Jan -12 1/1/2012 1/31/2012 0.287% Feb -12 2/1/2012 2/29/2012 0.297% Mar -12 3/1/2012 3/31/2012 0.296% Apr -12 4/1/2012 4/30/2012 0.325% May -12 5/1/2012 5/31/2012 0.325% Jun -12 6/1/2012 6/30/2012 0.305% Jul -12 7/1/2012 7/31/2012 0.305% Aug -12 8/1/2012 8/31/2012 0.282% Sep -12 9/1/2012 9/30/2012 0.327% Oct -12 10/1/2012 10/31/2012 0.350% Nov -12 11/1/2012 11/30/2012 0.372% Dec -12 12/1/2012 12/31/2012 0.358% Jan -13 1/1/2013 1/31/2013 0.313% Feb -13 2/1/2013 2/28/2013 0.283% Mar -13 3/1/2013 3/31/2013 0.312% Apr -13 4/1/2013 4/30/2013 0.219% May -13 5/1/2013 5/31/2013 0.181% Jun -13 6/1/2013 6/30/2013 0.148% Jul -13 7/1/2013 7/31/2013 0.135% Aug -13 8/1/2013 8/31/2013 0.147% Sep -13 9/1/2013 9/30/2013 0.183% Oct -13 10/1/2013 10/31/2013 0.183% 111612013 -22- Gilmore & Bell, P.C.