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Arbitrage report (12-2014) s ; GI.LMOREBELL 816-221-1000 MAIN GILMORE& BELL PC ST.LOUIS 816-221-1018 FAX 2405 GRAND BOULEVARD.SUITE 1100 WICHITA GILMOREBELL.COM KANSAS CITY.MISSOURI 64108-2521 OMAHA I LINCOLN January 5, 2015 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 General Obligation Internal Improvement Bonds, Series 2008-B (the "Bonds") issued by the City of Salina, Kansas Dear Rod: Enclosed are the following documents related to our computation of arbitrage in connection with the above-referenced bond issue: • Exhibit A—Explanation of Arbitrage Rebate Analysis; and • Exhibit B—Arbitrage Rebate Analysis as of December 1, 2014 (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 $73,898.35. Under the Internal Revenue Code, the next required installment computation date is the earlier of December 1, 2018 or the date the last Bonds is paid. The next annual computation date will be December 1, 2015. Please call me if you have any questions. Very truly yours, trrt.A÷.061 Madlanan Jennifer L. Moehlman Financial Analyst JLM:vp Enclosures cc: James K. Dummitt Gina M. Riekhof 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, 2014 (the "Arbitrage Analysis") for the $3,525,000 General Obligation Internal Improvement Bonds, Series 2008-B (the "Bonds") issued by the City of Salina, Kansas(the"Issuer"). General Matters The time period covered by the Arbitrage Analysis (the "Computation Period") began December 1, 2013 and ended December 1, 2014. (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. and Security Bank of Kansas City. 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. Prior Calculations and Payments The prior rebate computation report was prepared by Gilmore & Bell, P.C. dated December 1, 2013 (the"Prior Computation Date"). No rebate was generated as of the Prior Computation Date. A-1 Accounting for Expenditures and Investments 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 The debt service reserve fund and the redemption fund, in the aggregate, was required to be invested at a yield not materially higher than the yield on the Bonds to the extent the balance in the fund exceeded $340,000, the debt service reserve requirement plus the minor portion. We determined that the yield on the investments in these funds 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. A portion of the debt service fund and revenue fund, in the aggregate, failed to qualify as a bona fide debt service fund during the bond year ended July 1, 2014 because it was funded at amount in excess of the minimum balance limitation. We calculated rebate on these excess balances during this year. years.] A-2 Exhibit B Arbitrage Rebate Analysis Computed as of December 1,2014 City of Salina, Kansas General Obligation Internal Improvement Bonds Series 2008-B GILMOkE BELL C I LMOPE . HEL.l. Pi. City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2008-B ARBITRr�GLREB:%TF.'AN%L\SIS;"; Results as of December 1,2014 Summary of Issue Par $3,525,000 Issue Date December 23,2008 Bond Year Date July 1 Bond Yield • 4.36129% Computation Date December 1,2014 Prior Installment Date December 1,2013 Summary of Rebate Computation Computation Results Rebate Liability by Source • Total Rebate Amount (S 73,898.35) Debt Service Fu7ilinds-zola Bond Year Ending (2,334.49) Redemption Fund (14,387.45) Debt Service Reserve Fund (6,691.98) Credits&Adjustments (50,484.43) • No arbitrage rebate payment is due at this time. The net rebate amount as of December 1,2014 is Total Rebate Amount (73,898.35) f . • ($73,898.35). (6150,000) sc 12/30/2014 -1- Gilmore&Be11,P.C. City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2008-B Comments and Yield Comparison Comments Yield Comparison As of 12/1/2014 • Debt Service Accounts failed to qualify as a bona 8.00% fide debt service fund for all bond years during this 6.00%- eyntl Held=4.36% computation period. 4.00% 2.00% .� "a -,•i`> kax;i • The next annual rebate computation will be 0,00% o 01% o.oi% 12/1/2015. Debt service Redemption Debt Service Reserve Fund Fund Funds-Bond Year Ending 7/1/2014 12/30/2014 -2- Gilmore&Bell,P.C. City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2008-B :,,,ARB ITRAGE�.REBATF/8 NA LISIS�` Results as of December 1,2014 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 1,2014 $ 75,709 $ 23,211 No Conclusions • The Debt Service Accounts failed to qualify as a bona fide debt service fund. Funds were not depleted for bond years ended 7/1/2014. We computed rebate on the portion of funds in excess of a reasonable carryover amount for this time period. • 12/30/2014 -3- Gilmore&Bell,P.C. City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2008-B f s w r>,C,COUNT NO 1 Debt,SerVice Reserve;F and °' .,, 1 ' .'. Cash and Investment Activity Total Cash Transactions I. ;Investments. . I Cash and Date Cash In Cash Out Balance Purchase Receipt Earnings Balance Investments 12/1/2013 240,000.00 240,000.00 - 240,000.00 4/11/2014 - 240,000.00 240,000.00 240,000.00 5/1/2014 - 1.32 1.32 240,001.32 240,001.32 6/2/2014 - 2.04 2.04 240,003.36 240,003.36 7/1/2014 - 1.97 1.97 240,005.33 240,005.33 , 8/1/2014 - 2.04 2.04 240,007.37 240,007.37 9/2/2014 - 2.04 2.04 240,009.41 240,009.41 10/1/2014 - 1.97 1.97 240,011.38 240,011.38 11/3/2014 - 2.04 2.04 240,013.42 240,013.42 12/1/2014 240,015.47 - 240,013.42 2.05 - - Totals 240,000.00 240,015.47 240,013.42 240,013.42 15.47 Cash Out Less Cash In: 15.47 Investment Receipts minus Purchases: - 12/30/2014 -4- Gilmore&Bell,P.C. City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2008-B c , r ' ' ' 1CCOUNT'NO:I Debt Service Rescrve:)and Arbitrage Rebate Computation I Investment Yield � Future Present Net Value Future Value Present Investment Factor @ Value to Number Factor @ Value to Date Activity 4.361287% 12/1/2014 of Days 0.010089% 12/1/2013 12/1/2013 - 1.0440884 - 360 1.0000000 - 4/11/2014 (240,000.00) 1.0279477 (246,707.45) 230 0.9999636 (239,991.26) , 5/1/2014 - 1.0254868 - 210 0.9999580 - 6/2/2014 - 1.0216840 - 179 0.9999493 - • 7/1/2014 - 1.0181393 - 150 0.9999411 - 8/1/2014 - 1.0144853 - 120 0.9999327 - 9/2/2014 - 1.0107233 - 89 0.9999241 - 10/1/2014 - 1.0072166 - 60 0.9999159 - 11/3/2014 - 1.0033613 - 28 0.9999070 - 12/1/2014 240,015.47 1.0000000 240,015.47 - 0.9998991 239,991.26 15.47 (6,691.98) (0.00) Summary of: Debt Service Reserve Fund Arbitrage Rebate Amount: S (6,691.98) Total Investment Earnings: 15.47 Investment Yield: 0.0101% Average Amount Invested: $ 153,333 Total Time Invested: 1.00 years 12/30/2014 -5- Gilmore&,Bell,P.C. City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2008-B ;r ap.a a "pi" x .-ACCOUNT.NO.2:':'=Redemption Fund Cash and Investment Activity Total Cash Transactions Investments I Cash and Date Cash In Cash Out Balance Purchase Receipt Earnings Balance Investments 12/1/2013 269,756.29 2.31 269,753.98 269,753.98 269,756.29 12/2/2013 - 2.31 269,756.29 269,756.29 1/2/2014 - 2.17 2.17 269,758.46 269,758.46 2/3/2014 - 2.17 2.17 269,760.63 269,760.63 2/6/2014 70,211.80 - 70,211.80 339,972.43 339,972.43 3/3/2014 - 2.42 2.42 339,974.85 339,974.85 4/1/2014 - 2.79 2.79 339,977.64 339,977.64 4/11/2014 339,977.64 - 339,977.64 - - 4/11/2014 339,977.64 - 339,977.64 339,977.64 339,977.64 5/1/2014 0.90 0.90 339,977.64 339,978.54 5/1/2014 0.90 1.86 1.86 339,979.50 339,980.40 5/2/2014 0.90 - 339,979.50 339,979.50 5/2/2014 0.90 - 0.90 339,980.40 339,980.40 6/2/2014 - 2.89 2.89 339,983.29 339,983.29 7/1/2014 - 2.79 2.79 339,986.08 339,986.08 8/1/2014 - 2.89 . 2.89 339,988.97 339,988.97 9/2/2014 - 2.89 2.89 339,991.86 339,991.86 10/1/2014 - 2.79 2.79 339,994.65 339,994.65 11/3/2014 - 2.89 2.89 339,997.54 339,997.54 12/1/2014 340,000.45 - 339,997.54 2.91 - - Totals 679,946,63 679,978.99 679,975.18 679,975.18 32.36 Cash Out Less Cash In: 32.36 Investment Receipts minus Purchases: - 12/30/2014 -6- Gilmore&Belk P.C. ■ I • City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2008-B , ACCOUNT N0."2:,Redemption Fund'..,.- . Arbitrage Rebate Computation I Investment Yield Future Present Net Value Future Value Present Investment Factor @ Value to Number Factor @ Value to Date Activity 4.361287% 12/1/2014 of Days 0.009887% 12/1/2013 12/1/2013 (269,753.98) 1.0440884 (281,647.00) 360 1.0000000 (269,753.98) 12/2/2013 (2.31) 1.0439633 (2.41) 359 0.9999997 (2.31) 1/2/2014 - 1.0402166 - 329 0.9999915 - 2/3/2014 - 1.0363592 - 298 0.9999830 - 2/6/2014 (70,211.80) 1.0359866 (72,738.49) 295 0.9999821 (70,210.55) 3/3/2014 - 1.0326398 - 268 0.9999747 - 4/1/2014 - 1.0291804 - 240 0.9999670 - 4/11/2014 339,977.64 1.0279477 349,479.24 230 0.9999643 339,965.50 4/11/2014 (339,977.64) 1.0279477 (349,479.24) 230 0.9999643 (339,965.50) 5/1/2014 0.90 1.0254868 0.92 210 0.9999588 0.90 5/1/2014 - 1.0254868 - 210 0.9999588 - 5/2/2014 - 1.0253639 - 209 0.9999585 - 5/2/2014 (0.90) 1.0253639 (0.92) 209 0.9999585 (0.90) 6/2/2014 - 1.0216840 - 179 0.9999503 - 7/1/2014 - 1.0181393 - 150 0.9999423 - 8/1/2014 - 1.0144853 - 120 0.9999341 - 9/2/2014 - 1.0107233 - 89 0.9999256 - 10/1/2014 - 1.0072166 - 60 0.9999176 - 11/3/2014 - 1.0033613 - 28 0.9999088 - 12/1/2014 340,000.45 1.0000000 340,000.45 - 0.9999011 339,966.84 32.36 (14,387.45) (0.00) Summary of: Redemption Fund Arbitrage Rebate Amount: S (14,387.45) 12/30/2014 -7- Gilmore&Bell P.C. City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2008-B Arbitrage Rebate Computation I Investment Yield Future Presen t Net Value Future Value Present Investment Factor @ Value to Number Factor @ Value to Date Activity 4.361287% 12/1/2014 of Days 0.009887% 12/1/2013 Total Investment Earnings: 32.36 Investment Yield: 0.0099% Average Amount Invested: $ 327,299 Total Time Invested: 1.00 years 12/30/2014 -8- Gilmore&BelL P.C. 1 ■ • City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2008-B ACCOUNT NO.3:'Debt Service:Funds=Boiid Year Ending;7/1/2014; . - Cash and Investment Activity (Total ICash Transactions I Investments I !Cash and Date Account Cash In Cash Out Balance Purchase Receipt Earnings Balance Investments 7/1/2013 Debt Service 100,029.20 - 100,029.20 100,029.20 1 100,029.20 7/31/2013 Debt Service 2,750.00 (2,750.00) 100,029.20 197,279.20 8/1/2013 Debt Service - 2,746.90 3.10 97,282.30 97,282.30 8/12/2013 Debt Service 2,511.84 - 2,511.84 94,770.46 ,94,770.46 9/3/2013 Debt Service - 3.11 3.11 94,773.57 94,773.57 10/1/2013 Debt Service - 3.00 3.00 94,776.57 94,776.57 11/1/2013 Debt Service - 3.10 3.10 94,779.67 194,779.67 12/2/2013 Debt Service - 3.21 3.21 94,782.88 I X94,782.88 12/4/2013 Debt Service 170,784.34 - 170,784.34 265,567.22 265,567.22 12/18/2013 Debt Service 13,166.17 - 13,166.17 278,733.39 278,733.39 1/2/2014 Debt Service 69,265.00 - 69,260.64 4.36 209,472.75 209,472.75 2/3/2014 Debt Service - 4.05 4.05 209,476.80 209,476.80 2/6/2014 Debt Service 70,211.80 - 70,211.80 139,265.00 139,265.00 3/3/2014 Debt Service - 3.18 3.18 139,268.18 139,268.18 4/1/2014 Debt Service - 3.41 3.41 139,271.59 139,271.59 4/11/2014 Revenue 83,969.00 83,969.00 139,271.59 223,240.59 4/11/2014 Debt Service 139,271.59 83,969.00 139,271.59 278,543.18 1 362,512.18 4/11/2014 Debt Service 139,271.59 83,969.00 139,271.59 139,271.59 223,240.59 4/21/2014 Revenue 100,879.66 184,848.66 139,271.59 ; 324,120.25 4/22/2014 Revenue - 184,848.66 324,120.25 324,120.25 4/28/2014 Revenue 100,879.66 - 100,879.66 223,240.59 , 223,240.59 5/1/2014 Revenue - 0.37 0.37 223,240.96 223,240.96 5/1/2014 Debt Service - 0.76 0.76 223,241.72 223,241.72 5/1/2014 Debt Service 1.10 1.10 223,241.72 223,242.82 5/2/2014 Debt Service 1.10 1.10 1.10 223,242.82 223,243.92 5/2/2014 Debt Service 1.10 - 223,242.82 223,242.82 5/27/2014 Revenue 57,950.16 - 57,950.16 281,192.98 281,192.98 12/30/2014 -9- Gilmore&Bell,P.C. • City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2008-B "' ACCOUNT NQ 3:,Debt Service;Funds'-,BoiuI Year E,iding 711/2014 = r a r Cash and Investment Activity Total Cash Transactions [ •- Investments • • I Cash and Date Account Cash In Cash Out Balance Purchase Receipt Earnings Balance Investments 6/2/2014 Revenue - 0.79 0.79 281,193.77 281,193.77 6/2/2014 Debt Service - 1.18 1.18 281,194.95 281,194.95 6/16/2014 Revenue 4,587.10 - 4,587.10 285,782.05 285,782.05 6/17/2014 Revenue 146,507.42 - 146,507.42 139,274.63 139,274.63 6/17/2014 Debt Service 146,507.42 809.99 - 145,697.43 284,972.06 284,972.06 7/1/2014 Revenue 0.62 - 0.62 284,972.06 284,972.06 7/1/2014 Debt Service 209,265.00 1.70 209,265.00 1.70 75,707.06 75,708.76 7/1/2014 Debt Service 75,708.76 - 75,707.06 - - Totals 817,144.64 817,182.78 434,009.56 816,361.91 816,361.91 38.14 Cash Out Less Cash In: 38.14 Investment Receipts minus Purchases: - 12/30/2014 -10- Gilmore&Bell,P.C. 1 City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2008-B ACCOUNT NO.3: Debt Service Funds`-BondXcac Entling;7/I/2014'- - . . - , Arbitrage Rebate Computation I Investment Yield Future Present Net Value Future Value Present Investment Factor© Value to Number Factor® Value to Date Activity 4.361287% 12/1/2014 of Days 0.023654% 12/1/2013 7/1/2013 (100,029.20) 1.0630274 (106,333.78) 510 1.0000986 (100,039.06) 7/31/2013 - 1.0593393 - 481 1.0000788 - 8/1/2013 2,750.00 1.0592123 2,912.83 480 1.0000788 2,750.22 8/12/2013 2,511.84 1.0578169 2,657.07 469 1.0000716 2,512.02 9/3/2013 - 1.0551580 - 448 1.0000578 - 10/1/2013 - 1.0516232 - 420 1.0000394 - 11/1/2013 - 1.0478490 - 390 1.0000197 - 12/2/2013 - 1.0439633 - 359 0.9999993 - 12/4/2013 (170,784.34) 1.0437131 (178,249.85) 357 0.9999980 (170,784.00) 12/18/2013 (13,166.17) 1.0419634 (13,718.67) 343 0.9999888 (13,166.02) 1/2/2014 69,265.00 1.0402166 72,050.60 329 0.9999796 69,263.59 2/3/2014 - 1.0363592 - 298 0.9999593 - 2/6/2014 70,211.80 1.0359866 72,738.49 295 0.9999573 70,208.80 3/3/2014 - 1.0326398 - 268 0.9999396 - 4/1/2014 - 1.0291804 - 240 0.9999212 - 4/11/2014 - 1.0279477 - 230 0.9999146 - 4/11/2014 (139,271.59) 1.0279477 (143,163.91) 230 0.9999146 (139,259.69) 4/11/2014 139,271.59 1.0279477 143,163.91 230 0.9999146 139,259.69 4/21/2014 - 1.0267165 - 220 0.9999080 - 4/22/2014 (184,848.66) 1.0265935 (189,764.43) 219 0.9999074 (184,831.54) 4/28/2014 100,879.66 1.0258556 103,487.96 213 0.9999034 100,869.92 5/1/2014 - 1.0254868 - 210 0.9999015 - 5/1/2014 - 1.0254868 - 210 0.9999015 - 5/1/2014 1.10 1.0254868 1.13 210 0.9999015 1.10 5/2/2014 - 1.0253639 - 209 0.9999008 - 5/2/2014 - 1.0253639 - 209 0.9999008 - 5/27/2014 (57,950.16) 1.0222964 (59,242.24) 184 0.9998844 (57,943.46) 12/30/2014 -11- Cnlmoie&Bd1,P.C. City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2008-B x, , `:ACCOUNT=NO.'3: I)ebt Service funds Bond%ear Ending 7/1/2014, [r ? :' Arbitrage Rebate Computation I Investment Yield Future Present Net Value Future Value Present Investment Factor @ Value to Number Factor @ Value to Date Activity 4.361287% 12/1/2014 of Days 0.023654% 12/1/2013 6/2/2014 - 1.0216840 - 179 0.9998811 - 6/2/2014 - 1.0216840 - 179 0.9998811 - 6/16/2014 (4,587.10) 1.0199712 (4,678.71) 165 0.9998719 (4,586.51) 6/17/2014 146,507.42 1.0198490 149,415.44 164 0.9998712 146,488.55 6/17/2014 (145,697.43) 1.0198490 (148,589.38) 164 0.9998712 (145,678.67) 7/1/2014 0.62 1.0181393 0.63 150 0.9998620 0.62 7/1/2014 209,266.70 1.0181393 213,062.65 150 0.9998620 209,237.83 7/1/2014 75,707.06 1.0181393 77,080.33 150 0.9998620 75,696.62 38.14 (7,169.92) 0.00 Summary of: Debt Service Funds-Bond Year Ending 7/1/2014 Total bond-year debt service: 278,530.00 Minimum balance during bond year: 75,709.38 Less 1/12 of total bond-year debt service (23,210.83) Total surplus over reasonable carryover amount $ 52,498.55 Tax-exempt portion of surplus 100.00% 52,498.55 Net arbitrage rebate=computed rebate x(tax-exempt surplus/average invested balance) Arbitrage Rebate Amount: $ (2,334.49) Total Investment Earnings: 38.14 Investment Yield: 0.0237% Average Amount Invested: $ 161,239 Total Time Invested: 1.00 years 12/30/2014 -/2- Amore&Bell,P.C. • City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2008-B COMPLJ I TION CREDIT S'ANI)ADJUS'GMENTS'; Arbitrage Rebate Computation Future Value Future Factor @ Value to Number Date Description Amount 4.361287% 12/1/2014 of Days 12/1/2013 Prior Rebate Amount (46,772.90) 1.0440884 (48,835.04) 360 7/1/2014 Computation Credit (1,620.00) 1.0181393 (1,649.39) 150 I (48,392.90) Total Adjustments: S (50,484.43) 12/30/2014 -13- Gilmore&Bell,P.C. City of Salina,Kansas General Obligation Internal Improvement Bonds Series 2008-B t ANALYSIS,OF,S'INKIN('FUNDS, I. Analysis of Account Balances(Excluding Purpose Investments)&Reasonable Carryover Amount I (Bond Year Ended: 7/1/2014 Debt Service Total Revenue Fund Fund Bond Year Acct.Balance @ COB on 12/31/2013 $ - $ 278,733.39 Cash in/(Cash out) 1/1/2014 - 4.36 Cash in/(Cash out) 1/1/2014 - (69,265.00) Acct.Balance @ COB on 1/1/2014 $ - $ 209,472.75 L$ 209,472.75 Acct.Balance @ COB on 6/30/2014 $ - $ 284,972.06 Cash in/(Cash out) 7/1/2014 0.62 (209,265.00) Cash in/(Cash out) 7/1/2014 - 1.70 Acct.Balance @ COB on 7/1/2014 $ 0.62 $ 75,708.76 $ 75,709.38 Minimum Sinking Fund Balance during Bond Year $ 75,709.38 Bond Debt Service: Debt Service Payment 1/1/2014 $ - $ 69,265.00 Debt Service Payment 7/1/2014 - 209,265.00 Total Bond Year Debt Service $ - $ 278,530.00 $ 278,530.00 Reasonable Carryover Amount(one-twelfth bond year debt service) 5 23,210.83 Excess Sinking Fund Balance $ 52,498.55 Sinking Funds Depleted,Except for a Reasonable Carryover Amount? No 12/30/2014 -14- Gilmore&Bell,P.C.