Audit Report - 1999COMPREHENSIVE ANNUAL FINANCIAL REPORT
of the
SALINA AIRPORT AUTHORITY
A Component Unit of the
City of Salina, Kansas
For the Fiscal Year Ended December 31, 1999
Prepared by the Management
of the
Salina Airport Authority
/Ak\ Salina Airport Authority
/jAAA\ Salina Municipal Airport/ Industrial Center
SALINA AIRPORT AUTHORITY
TABLE OF CONTENTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Fiscal Year Ended December 31, 1999
INTRODUCTORY SECTION Page
Letterof Transmittal ....................................................................... ..............................1
PrincipalOfficers ............................................................................ .............................10
AuthorityStaff Members ................................................................ .............................11
OrganizationalChart ...................................................................... .............................12
Certificate of Achievement ............................................................. .............................13
Salina Municipal Airport Aerial View .............................................. .............................14
FINANCIAL SECTION
Independent Auditor's Report ........................................................ .............................15
Financial Statements:
Comparative Balance Sheet ................................................... ..........................18 -19
Comparative Statements of Revenues, Expenses and
Changes in Retained Earnings ............................................ .............................20
Comparative Statements of Cash Flows (Direct Method) ...................... ............ 21 -22
Notes to Financial Statements, December 31, 1999 and 1998 ............................. 23
Supplemental Information
Schedule of Operations and Changes in Retained Earnings . ..........................36 -37
CapitalExpenditures ................................................................ .............................38
General Obligation Refunding Bonds — Series 1999 -A .......... ............................... 39
General Obligation Refunding Bonds — Series 1999 -B ............ .............................40
General Obligation Bonds — Series 1998- A .............................. .............................41
General Obligation Bonds — Series 1993- A .............................. .............................42
i
Supplemental Information (continued)
General Obligation Bonds — Series 1993- B .............................. .............................43
KDOCHContract Payable ........................................................ .............................44
Leasehold Revenue Bonds — Series 1991 ............................... .............................45
Schedule of Federal Assistance ............................................... .............................46
Comparison of Gross Cash Balances with Depository Security ............................47
Insurancein Force .................................................................... .............................48
STATISTICAL SECTION
Operating Revenue History .......................................................... .............................49
Operating Expense History ........................................................... .............................50
Federal Financial Assistance History ............................................ .............................51
Capital Expenditure History .......................................................... .............................52
Revenue Bond Coverage ........................................................... ............................... 53
PrincipalCustomers ..................................................................... .............................54
Local Government Property Tax Rates, Direct & Overlapping ..... .............................55
PropertyTax Revenue ................................................................ ............................... 56
Air Traffic, Fuel Flowage, Enplanement Trends ......................... ............................... 57
MajorEmployers ........................................................................... .............................58
Saline County Population, Demographic and Labor Statistics ..... .............................59
Saline County Employment Data .................................................. .............................60
OTHER INDEPENDENT AUDITOR'S REPORTS
Independent Auditor's Report on Compliance on Internal Control ............................61
ii
AA\k Salina Airport Authority
I
.�AA\ Salina Municipal Airport / Industrial Center
Chairman Vice- Chairman Secretary Treasurer Assistant Secretary / Treasurer
R. MICHAEL BEATTY PAT BOLEN JOHN K. VANIER II DONALD E. MORRIS JAMES C. MAES
Executive Director: TIMOTHY F. ROGERS, A.A.E. Operations Director: DONALD C. KNEUBUHL
Mgr. of Administration & Finance: MICHELLE R. SWANSON Board Attorney: GREG A. BENGTSON
April 19, 2000
Salina Airport Authority Board of Directors
3237 Arnold Ave.
Salina, KS 67401
To the Board of Directors of the Salina Airport Authority:
The Comprehensive Annual Financial Report (CAFR) of the Salina Airport Authority (the
"Authority ") for the fiscal year ended December 31, 1999 is hereby submitted in accordance with
the Kansas Statutes Annotated (K.S.A. 27 -324). As required by the statute, the City of Salina will
be furnished copies of the Authority's 1999 CAFR. Responsibility for both the accuracy of the data
presented and the completeness and fairness of the presentation, including all disclosures, rests
with the Executive Director of the Authority. To the best of my knowledge and belief, the data as
presented is accurate in all material aspects, it is presented in a manner designed to fairly set forth
the fiscal position and results of the operation of the Authority as measured by its financial activity,
and that all disclosures necessary to enable the reader to gain maximum understanding are
included in the report.
ORGANIZATION OF THE REPORT
The Authority applies the standards for preparation of local government financial reports
recommended by the Government Finance Officers of the United States and Canada (GFOA). The
Authority's 1999 Comprehensive Annual Financial Report is presented in four sections:
Introductory Section - contains this letter of transmittal, a list of the ,Authority's
principal officers, a listing of Authority staff members, an organizational chart, the
GFOA Certificate of Achievement for Excellence in Financial Reporting for fiscal
year 1998, and an aerial photo of the Salina Municipal Airport and Airport Industrial
Center.
Financial Section - includes the independent auditor's report, the Authority's 1999
financial statements and supplemental schedules.
Statistical Section - includes selected financial and demographic information
which highlights economic and demographic trends.
Other Independent Auditor's Reports Section - includes reports concerning the
Authority's internal control structure, compliance with Comptroller General of the
United States government audit standards and compliance with audit standards due
to receipt of federal financial assistance, reporting on the presentation of the
schedule of federal financial assistance, reporting on the internal control structure
used in administering federal financial assistance programs, compliance with
general requirements applicable to federal financial assistance programs, and
3237 ARNOLD • SALINA, KS 67401 -8190 • Off: (785) 827 -3914 • Fax: (785) 827 -2221 • E -mail: saa @salair.org
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compliance with specific requirements applicable to major federal financial
assistance program transactions.
REPORTING ENTITY
The Salina Airport Authority is a body corporate and politic. The Authority was created by the City
of Salina in April, 1965 (Sec. 4 -16, Salina City Code) pursuant to the authority granted by the City
by the surplus property and public airport authority act of the State of Kansas (KISA 27 -315 et seq.)
Pursuant to GASB Statement No. 14, the Authority is a component unit of the City of Salina. The
Authority was created for the purpose of accepting as surplus property portions of the former
Schilling A.F.B. which was closed by the United States Department of Defense in June, 1965. By
quitclaim deed the Authority received over 2,700 acres of land and numerous buildings for the
purpose of operating and developing the Salina Municipal Airport and the Salina Airport Industrial
Center. The Authority is managed and controlled by a five - member Board of Directors appointed
by the Salina City Commission.
The Board appoints the Executive Director, who is the chief executive and administrative officer of
the Authority. The Executive Director hires the remaining employees of the Authority. The
Executive Director and his staff of twelve employees manage and operate the Salina Municipal
Airport and the Salina Airport Industrial Center.
The Salina Municipal Airport is the only commercial service airport serving Salina /Saline County
and the 22- county area which comprises North Central Kansas. The Airport also services the
corporate, business, private aviation and flight training needs of industry, business and individuals
in the area. The Airport is also used by the Kansas State University - Salina Aeronautical
Technology Department. The campus of K -State Salina is located adjacent to the airport. The K-
State Salina Department of Aeronautical Technology offers degrees in professional flight training,
airframe and power plant maintenance, and avionics technology.
The Salina Airport Industrial Center is home for 74 businesses and organizations. Fifty -one of the
businesses and organizations are tenants of the Authority. One of the primary functions of the
Authority is to facilitate the continued growth of jobs and payroll at the Salina Airport Industrial
Center. The Authority works in partnership with the City of Salina, Saline County and the Salina
Area Chamber of Commerce for the retention of existing business and industry and the recruitment
of new business and industry.
ECONOMIC CONDITIONS AND OUTLOOK
Local Economy
The Salina /Saline County economy has continued to demonstrate economic strength, as compared
to other regions of the state. Growth in the areas of construction, manufacturing, transportation,
retail trade, and services confirms Salina's position as one of Kansas' strongest regional economic
centers.
According to a report published by the K -State Research and Extension, Department of Agricultural
Economics in September of 1999, Saline County ranked second only to Johnson County out of the
105 counties in "strength index" for 1997 -1998. The index is a measure of economic prosperity in
Kansas counties, and is made up of three components; wealth index, employment index and
/A\L Salina Airport Authority
/AA \ Salina Municipal Airport /Industrial Center
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personal income index. The three components were given equal weight. The Strength Index for
Kansas is 3.00. The 105 county average is 2.59 and Saline county's index is 3.31. In addition,
Saline County ranked ninth in the employment index which measures the proportion of the local
population actively participating in the labor force. The source for the strength index data was
provided by the U.S. Department of Commerce, Bureau of the Census, Kansas Department of
Revenue, Kansas Department of Human Resources, and K -State Research and Extension.
Economic Condition of the Airport and Airport Industrial Center
As of December 31, 1999, seventy -four businesses and organizations at the Airport and Airport
Industrial Center employed an estimated 4,500 employees. Seventy -seven percent of the total
number of employees live within the Salina city limits. Total payroll for 1999 was an estimated $115
million.
In 1999 the Airport and Airport Industrial Center attracted an estimated 60,407 visitors whose
average stay was three days. Airport and Airport Industrial Center visitors expended an estimated
$25,089,997 while in Salina.
Future Economic Outlook
The future economic outlook for both Salina and the Authority continues to look favorable.
Continued growth in service, retail and manufacturing sectors is expected. The Salina Area
Chamber of Commerce forecasts that approximately 700 new jobs per year will be added to the
economy with emphasis on growth in primary jobs during the 1998 -2003 time period. Airport
Industrial Center businesses such as Raytheon Aircraft Company, Tony's Pizza, Inc., Score
Rite /Power Ad, Coronado Engineering, ElDorado National, Ovation Cabinetry and Aerospace
Systems and Technologies, Inc., continue to work on expansion plans that will result in additional
jobs, payroll, and increased revenue opportunities for the SAA.
INITIATIVES AND DEVELOPMENT
Salina Municipal Airport
The SAA made significant strides in realizing its air service market potential. In
cooperation with SH &E, an aviation consulting firm, the SAA worked with travel agencies
within a 19 county catchment area to obtain the data necessary to present air service
opportunities. During 1999, two air carrier presentations were made demonstrating the
strengths of our market, local air travel demand, and potential for growth. In addition, the
presentations included traffic and financial forecasts for identified route opportunities.
During 1999, the SAA completed an extensive Terminal Bldg. Remodeling and
Landscaping Project. In an effort to provide for a more modern airport appeal, new floor
and wall coverings were added along with new lobby furniture. The conference room was
upgraded with new furniture and a multi -media system was added. This project also
included a new baggage handling addition to better accommodate the United Express
Carrier. The grounds at the M.J. Kennedy Air Terminal also received attention by way of
new trees, shrubs, and grasses of the native Kansas variety. An area was created on the
Salina Airport Authority
/�AA� Salina Municipal Airport / Industrial Center
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north side of the terminal grounds to allow family and friends a place to view departures
and arrivals.
• Early in 1999, the installation of TARDIS (Terminal Automated Radar Display and
Information System) at the Salina ATCT (Air Traffic Control Tower) was completed.
TARDIS, developed by the FAA, uses off - the -shelf computer technology to provide radar
capability at non -radar ATCTs. TARDIS is an extremely useful tool that controllers can
use to improve their ability to visually locate traffic and thereby having a significant impact
on safety. Salina is fortunate to be one of the eight locations across the country to have
TARDIS.
• During the summer, the SAA hosted a National Aeronautical Space Administration
(NASA) mission. This mission included the deployment of an ER -2 aircraft. With a crew
of approximately 30 individuals, including scientists, researchers and mechanics, NASA
conducted a 30 day mission using a one -of -a -kind, high tech camera, for high altitude
photography. Salina was chosen for this NASA mission because of its mid - continent
location, runway width, and the hangar facilities to accommodate the crew and aircraft.
• In April, for the second consecutive year, the SAA and K -State Salina hosted the 1999
National Intercollegiate Flying Association's national SAFECON flying competition. The
event brought in over 450 students from across the nation.
• The Airport's two aviation fuel outlets, Flower Aviation and Moore's Midway Aviation,
delivered a record 3,808,886 gallons of fuel to a wide variety of private, air carrier,
corporate, government, and military aircraft. As a result, the SAA recorded a 31% increase
in fuel flowage fees, which hit a record $234,338 for the year.
Salina Airport Industrial Center
• In the spring of 1999, the largest capital project in the history of the Salina Airport
Authority was completed. The Airport Industrial Center Street Project involved the
reconstruction of over 6.5 miles of roadway, major utility improvements, building
demolition, and the replating of five airport industrial center subdivisions, and exceeded
$5 million dollars.
• During 1999, the SAA made over $690,000 in building and land improvements. This
investment included improvements and modifications to industrial buildings, airfield
improvements, building demolition, and site development.
• With the reconstruction and realignment of the airport industrial center roadways during
1998 and 1999, the need for improved signage was evident. The SAA developed a
signage plan to assist people in finding their way through the Industrial Park. The SAA
maintenance staff erected numerous guidance signs and placed larger street numbers on
several of the SAA buildings and structures.
Salina Airport Authority
A5A\ Salina Municipal Airport/ Industrial Center
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Financial Affairs
• In June of 1999, the SAA refinanced Series 1990A and 1990B General Obligation Bonds
reducing the annual debt payments by $2,980 per year for a total savings of $32,777 over
the life of the refunded bond issues.
In September, the SAA completed an Economic Impact Study involving the 74 businesses
and organizations located within the Airport/Airport Industrial Center. This study provides
the SAA with very valuable data including types of businesses, number of jobs, total
payroll, business volume, capital expenditures, and annual number of visitors. Having
this information is critical for the continued development of the AirporJAirport Industrial
Center.
In November, the SAA Board of Directors executed a Letter of Intent to sell a 53,300 sq.
ft. manufacturing facility and four lots of land totaling 33.93 acres to ElDorado National
(Kansas) Inc., a division of THOR Industries. ElDorado National, the largest producer of
commercial buses in North America, is planning to expand their operations at the Airport
Industrial Center. This transaction would later prove to be the single largest real estate
transaction in the history of the SAX
Special Proiects
• The SAA worked with the Kansas Army National Guard, K -State Salina, the Smoky Hill
Education Service Center, the Salina Chamber of Commerce, USD 305 and Kansas
STARBASE, Inc. to bring the STARBASE youth program to the Salina area. During
1998/1999 academic school year, the Salina Airport conducted 14 airport tours including
over 400 youth.
• During 1999, in partnership with the Chamber of Commerce, the SAA assisted with the
process associated with Schwan's Sale's purchase of the former Kansas Vocational
Rehabilitation Center from the State of Kansas. During the summer of 1999, the sale
closed and Salina's largest employer geared up for expansion with the additional 20 acre
site that will allow them to expand within the Airport Industrial Center.
Environmental
The Authority continues to work with the U.S. Army Corps of Engineers, the U.S. Environmental
Protection Agency and the Kansas Department of Health and Environment to investigate the
environmental status of the Salina Municipal Airport and the Salina Airport Industrial Center.
Pursuant to the Defense Environmental Restoration Program /Formerly Used Defense Sites, the
U.S. Army Corps of Engineers continued work on Site Investigation and Remedial Investigation
reports. The reports address previous U.S. Department of Defense use of Airport and Airport
Industrial Center land during the operations of Schilling Air Force Base.
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The Corps of Engineers completed the Site Investigation report dated December, 1998 and the
Remedial investigation report dated February, 1999. Both reports are currently under review by
the Salina Airport Authority, the Environmental Protection Agency and the Kansas Department
of Health and Environment. Further site investigation will occur during calendar year 2000.
INTERNAL CONTROL STRUCTURE AND BUDGETARY CONTROLS
The Authority follows generally accepted accounting principles applicable to governmental unit
enterprise funds. Accordingly, the financial statements are prepared on the accrual basis.
Management of the Authority is responsible for establishing and maintaining an internal control
structure designed to ensure that the assets of the Authority are protected from loss, theft, or
misuse and to ensure that adequate accounting data is compiled to allow for the preparation of
financial statements in conformity with generally accepted accounting principles. The internal
control structure is designed to provide reasonable, but not absolute, assurance that these
objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control
should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits
requires estimates and judgments by management.
An annual budget is prepared in accordance with the Authority's By -laws. The Authority is
specifically exempt from the budget laws of the State of Kansas (K.S.A. 27 -322). The Authority is
not required to demonstrate statutory compliance with its annual operating budget. Accordingly,
budgetary data is not included in the accompanying financial statements.
RESULTS OF OPERATIONS
Revenues
The Authority's rental revenues increased by 4.11 % over the previous year. The increase can be
attributed to filling two prior year building vacancies and CPI increases on existing rentals. Within
rental revenues, several categories of rentals experienced increases during 1999 including, ramp
rents, land rents, hangar rents, landing fees, fuel flowage fees and tank farm rents. This allowed
the Authority to realize an 8.04% increase in total operating revenue.
A summary of operating revenues follows:
Operating Revenues
Rental revenues
Fixed base operator
Landing fees
Gain (loss) on sale of assets
Other operating revenues
Total
/,AVAA\�,
Salina Airport Authority
Salina Municipal Airport/ Industrial Center
"s
Increase
Percent
(Decrease)
(Decrease)
1998
1999
From 1998
Increase
$1,154,716
$1,202,149
$ 47,433
4.11%
178,814
234,338
55,524
i 31.05%
8,784
10,660
1,876
+ 21.35%
0
0
-
-
22,128
26,965
4,837
+ 21.86%
$1,364,442
$1,474,112
$109,670
+ 8.04%
Salina Airport Authority
Salina Municipal Airport/ Industrial Center
"s
Expenses
Total operating expenses before depreciation increased 9.47 %. Office and administrative
expenses increased by 15.15% due to increases in office supplies, postage, travel and meetings,
legal and accounting, medical insurance, engineering, telephone, airport promotion, property tax
expense, property appraisals and other administrative expenses.
Due to decisions by the Kansas Board of Tax Appeals and Kansas Court of Appeals changing the
method of taxing parcels of land with leasehold improvements owned by others. The Authority is
now responsible for all property taxes due on leasehold improvements owned by lessees.
Previously, the Authority's tenants were billed directly for their owned improvements. The
Authority's lease agreements provide for the collection of any taxes that may be levied against the
premises after the effective date of the lease. Upon the Authority's receipt of a statement for taxes
or assessments, the Authority invoices the Lessee and records the income as land rental. See
Details in Note I (D): Change in Classification.
A summary of operating expenses follows:
DEBT ADMINISTRATION
The outstanding long -term debt of the Authority was $6,490,529 at December 31, 1999. This debt
consists of building revenue bonds, general obligation bonds, leasehold revenue bonds and HUD
Community Development Block Grant loans of the Authority. Maturities range from 2003 through
2010. Both principal and interest are payable from proceeds of direct financing leases and the
general revenues of the Authority. Details are shown in Note III (E): Long -Term Liabilities.
CASH MANAGEMENT
All cash temporarily idle during 1999 was invested by the Executive Director of the Authority in
short -term investments to attain the highest possible return consistent with the Authority's liquidity
needs. All investments are in compliance with K.S.A. 12 -1675 which controls the investment of
public funds by Kansas governmental units. All funds are deposited daily and all accounts are
interest bearing.
Salina Airport Authority
Salina Municipal Airport/ Industrial Center
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Increase
Percent
(Decrease)
(Decrease)
Operating Expenses
1998
1999
From 1998
Increase
Office and Administration
$631,072
$ 726,651
$95,579
+ 15.15%
Maintenance
377,551
377,457
(94)
- .02%
Total
$1,008,623
$1.104,108
_$_4 5
+ 9.47%
DEBT ADMINISTRATION
The outstanding long -term debt of the Authority was $6,490,529 at December 31, 1999. This debt
consists of building revenue bonds, general obligation bonds, leasehold revenue bonds and HUD
Community Development Block Grant loans of the Authority. Maturities range from 2003 through
2010. Both principal and interest are payable from proceeds of direct financing leases and the
general revenues of the Authority. Details are shown in Note III (E): Long -Term Liabilities.
CASH MANAGEMENT
All cash temporarily idle during 1999 was invested by the Executive Director of the Authority in
short -term investments to attain the highest possible return consistent with the Authority's liquidity
needs. All investments are in compliance with K.S.A. 12 -1675 which controls the investment of
public funds by Kansas governmental units. All funds are deposited daily and all accounts are
interest bearing.
Salina Airport Authority
Salina Municipal Airport/ Industrial Center
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RISC MANAGEMENT
The Authority is exposed to risks of loss associated with the operation of a public use airport and the
operation of an airport industrial center. To handle the associated risks of loss, the Authority uses
available tort liability legislation and purchases the appropriate types of insurance coverage. It is the
policy of the Authority to eliminate or transfer risk of loss where possible.
The Authority is covered by the Kansas Tort Claims Act. (K.S.A. 75 -6101, et seq.). The act provides
that a governmental entity shall be liable for damages caused by the negligent or wrongful act or
omission of any of its employees while acting within the scope of their employment under
circumstance where the governmental entity, if a private person, would be liable, under the laws of
Kansas. At the same time, the act (1) provides for 22 categories of exemptions from liability for a
governmental entity or an employee acting within the scope of the employee's employment and (2)
limits liability for any other claims within the scope of the act to $500,000 for any number of claims
arising out of a single occurrence or accident.
The Authority carries $500,000 of comprehensive general liability insurance which matches the limit
established by the Kansas Tort Claims Act. During 1999 the Authority carried $6,932,251 of
insurance on airport commercial properties.
The Authority's commercial property insurance included $1,634,631 in loss of rents coverage. All
contractors and lessees are required to carry amounts of insurance with limits and deductibles
approved by the Authority. A schedule of insurance in force at December 31, 1999 is included in
this report.
In addition, the Authority uses various risk management techniques. All contracts and leases are
reviewed by the Authority's legal counsel. All contractors and subcontractors are required to submit
evidence of insurance coverage naming the Salina Airport Authority and the City of Salina as named
additional insured parties.
INDEPENDENT AUDIT
Pursuant to K.S.A. 27 -324, an audit of the books, accounts and financial statements has been
completed by the Authority's independent certified public accountants, Harrison & Arnett, Chartered.
The independent audit is in accordance with the Kansas Minimum Audit Guide_, the Government
Auditing Standards issued by the Comptroller General of the United States.
GFOA CERTIFICATE OF ACHIEVEMENT
The Government Finance Officers Association of the United States and Canada (3FOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the Salina Airport Authority for its
comprehensive annual financial report (CAFR) for the fiscal year ended December 31, 1998. This
was the seventh consecutive year that the Salina Airport Authority has achieved this prestigious
award. In order to be awarded a Certificate of Achievement, a government must publish an easily
readable and efficiently organized comprehensive annual financial report. This report must satisfy
both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current
comprehensive annual financial report continues to meet the Certificate of Achievement Program `s
requirements, and we are submitting it to GFOA to determine its eligibility for another certificate.
/AL Salina Airport Authority
Salina Municipal Airport / Industrial Center
i
MILL LEVY
As provided for in the Authority's Enabling Statute (KSA 27 -315 et seq.), the Authority is able to
use a property tax mill levy to fund matching funds for federal grants or general obligation bond
debt service. During 1999, with the consent of the Salina City Commission, the Authority adopted
a 2.653 mill levy in order to provide matching funds for Federal Aviation Administration Airport
Improvement Program grant funds and to provide debt service funds for the Au�:hority's Series
98A general obligation internal improvement bonds.
The .321 mills for Federal Aviation Administration Airport Improvement Program matching funds
will provide the Authority an estimated $85,040 in calendar year 2000. The 2.332 mills for debt
service related to the Series 98A general obligation internal improvement will provide the
Authority an estimated $617,673 in calendar year 2000.
ACKNOWLEDGEMENTS
The support of the Authority's Board of Directors has been instrumental in the preparation of this
report. The Board has been actively involved in the preparation and review of this report and is
committed to responsible and progressive financial reporting.
Also acknowledged is the assistance of the Authority's auditor, Harrison & Arnett, Chartered,
Certified Public Accountants, Saline County Clerk's Office, Gerald Cook, President of the Salina
Area Chamber of Commerce, Rod Franz, Director of Finance for the City of Salira, the University of
Kansas Institute for Public Policy and Business Research and the Kansas Department of Human
Resources Labor Market Information Services in the preparation of this report.
Respectfully submitted,
SALINA AIRPORT AUTHORITY
Timothy F. Rogers, A.A. .
Executive Director
Salina Airport Authority
cc: The City of Salina Board of Commissioners
i
She1Tl S anson
Manager of Administration and Finance
Salina Airport Authority
Salina Airport Authority
/AA\ Salina Municipal Airport/ Industrial Center
SALINA AIRPORT AUTHORITY
BOARD OF DIRECTORS
James C. Maes
Chairman
R. Michael Beatty
Vice - Chairman
Pat Bolen
Secretary
Frieda Mai
Treasurer
John K. Vanier, II
Asst. Secretary/Treasurer
AUTHORITY'S COUNSEL
Greg A. Bengtson
Clark, Mize & Linville, Chartered
Salina, Kansas
AUTHORITY'S BOND COUNSEL
Gilmore & Bell
Kansas City, Missouri
AUTHORITY'S FINANCIAL ADVISOR
George K. Baum & Company
Kansas City, Missouri
AUTHORITY'S AUDITOR
Thomas G. Arnett
Harrison & Arnett, Chartered
Salina, Kansas
10
SALINA AIRPORT AUTHORITY
. 161.14 1 WMI Fill a a ►i I =1 ►i
. • �- -��•- ...
'
Timothy F. Rogers, A.A.E. Executive Director
Donald C. Kneubuhl Operations Director
Michelle R. Swanson Manager of Administration & Finance
Cathy Lentz Administrative Assistant
OPERATIONS, MAINTENANCE, AIRCRAFT RESCUE & FIRE FIGHTING STAFF
Loren Carleton Operations, Maintenance ,& ARFF
Kim Colby Operations, Maintenance ,& ARFF
Gary Hansen Operations, Maintenance .& ARFF
Dale Mattison Operations, Maintenance .& ARFF
David Nease Operations, Maintenance ,& ARFF
Rob Pejsha Operations, Maintenance ,& ARFF
Jason Pinnick Operations, Maintenance ,& ARFF
TERMINAL BUILDING CUSTODIAL STAFF
Vachel Keaton Custodian
Francis Vestal Custodian
11
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Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Salina Airport Authority,
Kansas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 1998
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
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President
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Executive Director
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HARRISON & ARNETT
CHARTERED
CERTIFIED PUBLIC ACCOUNTANTS
EUGENE O. HARRISON, C.P.A. 717 ROACH STREET . SALINA, KANSAS 67401 PHONE: (785) 827 -7244
THOMAS G. ARNETT, C.P.A. FAX: (785) 827 -0048
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors
Salina Airport Authority
Salina, Kansas
We have audited the accompanying financial statements of Salina Airport Authority, a component unit of the City
of Salina, Kansas, as of and for the years ended December 31, 1999 and 1998, as listed in the table of contents.
These financial statements are the responsibility of Salina Airport Authority management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and the Kansas Municipal Audit
Guide, and Government Auditing Standards, issued by the Comptroller General of the United States. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of Salina Airport Authority as of December 31, 1999 and 1998, and the results of its operations and the
cash flows of its proprietary fund types for the years then ended in conformity with generally accepted accounting
principles.
In accordance with Government Auditing Standards, we have also issued our report dated April 19, 2000, on our
consideration of Salina Airport Authority's internal control over financial reporting and our tests of its compliance
with certain provisions of laws, regulations, contracts and grants.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken
as a whole. The schedules and additional information listed in the "Supplemental Information" section of the
table of contents to the financial section are presented for purposes of additional analysis and are not a required
part of the general purpose financial statements. Such additional information has been subjected to the auditing
procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented
in all material respects in relation to the general purpose financial statements taken as a whole.
The other data included in this report, designated as the "Statistical Section" in the table of contents, has not been
audited by us and, accordingly, we express no opinion on that data.
Harrison & Arnett, Chartered
Salina, Kansas
April 19, 2000
MEMBERS OF
DIVISION FOR CPA FIRMS PRIVATE COMPANIES PRACTICE SECTION
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
KANSAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
15
(THIS PAGE INTENTIONALLY LEFT BLANK)
16
(THIS PAGE INTENTIONALLY LEFT BLANK)
17
SALINA AIRPORT AUTHORITY
COMPARATIVE BALANCE SHEETS
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
Accounts receivable
Prepaid expenses
Taxes receivable
Total Current Assets
RESTRICTED ASSETS:
Cash and cash equivalents
NET INVESTMENT IN FINANCING LEASE
NET INVESTMENT IN FIXED ASSETS
OTHER ASSETS:
Bond issue costs, less accumulated amortization
of $62,273 and $44,600 respectively
"TOTAL ASSETS
December 31
1999
1998
$ 73,661
$ 1,133,689
121,512
46,728
2,524
-
714,772
750,142
912,469
1,930,559
85,000
1,260,228
24,584,752
102,094
$ 26,944,543
(continued)
See notes to financial statements.
85,000
1,319,491
24,083,888
105,548
$ 27,524,486
SALINA AIRPORT AUTHORITY
COMPARATIVE BALANCE SHEETS
(continued)
LIABILITIES AND EQUITY Dece iber 31
1999 1998
CURRENT LIABILITIES:
Accounts payable- operations
$ 17,889
$ 12,600
Accounts payable - capital
7,587
41,549
Accrued payroll and expenses
33,115
29,622
Accrued property tax
82,661
40,470
Deferred tax revenue
714,772
750,142
Deferred maintenance agreement
21,120
17,391
Deferred rent
12,916
26,156
Total Current Liabilities
890,060
917,930
RESTRICTED LIABILITIES:
Accrued interest payable
108,410
156,560
Deferred interest - financing lease
65,092
64,868
Current maturities of long -term debt
738,978
728,013
Total Restricted Liabilities
912,480
949,441
LONG -TERM LIABILITIES:
Bonds payable, less current maturities
5,751,551
6,370,770
Total Liabilities
7,554,091
8,238,141
EQUITY:
Contributed capital, Federal Grants
10,093,641
10,602,580
Retained earnings
9,296,811
8,683,765
Total Equity
19,390,452
19,286,345
TOTAL LIABILITIES AND EQUITY
$ 26,944,543
$ 27,524,486
See notes to financial statements.
19
SALINA AIRPORT AUTHORITY
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
OPERATING REVENUES:
Rental revenues
Fixed base operator fees
Landing fees
Other operating revenues
Total Operating Revenues
OPERATING EXPENSES BEFORE DEPRECIATION
Office and administration
Maintenance
Total Operating Expenses Before Depreciation
OPERATING INCOME BEFORE DEPRECIATION
DEPRECIATION
OPERATING LOSS
NON - OPERATING INCOME (EXPENSE):
Mill levy
Interest on investments and financing lease
Interest expense
Net Non - Operating Income
NET INCOME (LOSS)
ADD DEPRECIATION ON ASSETS ACQUIRED THROUGH
FEDERAL CONTRIBUTIONS
INCREASE (DECREASE) IN RETAINED EARNINGS
RETAINED EARNINGS, January 1
RETAINED EARNINGS, December 31
See notes to financial statements.
20
January I to December 31
1999
1998
$ 1,202,149
$1,154,716
234,338
178,814
10,660
8,784
26,965
22,128
1,474,112
1,364,442
726,651
631,07' )
377,457
377,551
1,104,108
1,008,624
370,004
355,818
925,397 891,612
(555,393) (535,794)
783,363
322,270
158,858
245,473
(369,561)
(207,130)
572,660
360,613
17,267 (175,181)
613,046 401,240
8,683,765 8,282,525
$ 9,296,811 $ 8,683,765
SALINA AIRPORT AUTHORITY
COMPARATIVE STATEMENTS OF CASH FLOWS
(DIRECT METHOD)
January 1 to December 31
1999 1998
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from sales, cormnissions, fees and rents $ 1,386,088
Cash paid to employees for services (420,315)
Cash paid to suppliers for goods and services (635,344)
Net Cash Provided (Used) in Operating Activities 330,429
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Purchase of property, plant and equipment
(1,460,223)
Proceeds from capital grants
97,971
Return of capital grant proceeds
(11,131)
Proceeds from property tax
783,363
Principal payments on debt
(1,983,013)
Principal received on financing lease
59,26'
received on financing lease
130,184
Principal received on long -term debt
1,374,760
Bond issue costs paid
(14,219)
Interest paid on long -terni debt
(400,040)
Net Cash Provided (Used) in Capital and Related
Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received on investments
CASH FLOWS FROM NON - CAPITAL FINANCING ACTIVITES:
Transfers to other funds
INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS
CASH BALANCE - January 1
CASH BALANCE - December 31
CASH AND CASH EQUIVALENTS AT END OF YEAR
CONSISTS OF:
Unrestricted cash
Restricted cash and cash equivalent
(continued)
See notes to financial statements.
21
(1,423,085)
32,628
(1,060,028)
1,218,689
$ 158,661
$ 1,374,185
(351,206)
(653,805)
369.174
(6,113,475)
1,447,768
322,270
(3,092,067)
54,661
137,104
4,860,850
(38,666)
(156.973)
(2,578,528)
113,145
(2,096,209)
3,314,898
$ 1,218,689
$ 7' ),661 $ 1,133,689
85,000 85,000
$ 158,661 $ 1,218,689
SALINA AIRPORT AUTHORITY
COMPARATIVE STATEMENTS OF CASH FLOWS
(DIRECT METHOD)
(continued)
RECONCILIATION OF OPERATING LOSS TO NET
CASH FLOWS FROM OPERATING ACTIVITIES
OPERATING LOSS
ADJUSTMENTS RECONCILING OPERATING LOSS
TO NET CASH PROVIDED BY OPERATING ACTIVITIES:
Depreciation
CHANGES IN ASSETS AND LIABILITIES:
Decrease (increase) in accounts receivable
Increase (decrease) in accounts payable - operations
Increase (decrease) in accrued payroll expenses
Decrease (increase) in prepaid expense
Increase (decrease) in accrued property tax
Increase (decrease) in deferred rent
Dm mber
1999 1998
$ (555,393) $ (535,794)
925,397 891,612
(74,784)
5,289
3,493
(2,524)
42,191
(13,240)
(40,817)
(6,073)
9,686
31,700
18,860
NET CASH PROVIDED BY OPERATING ACTIVITIES $ 330,429 $ 369,174
ADDITIONAL DISCLOSURE
During 1999, The Authority retired fully depreciated fixed assets having original cost of $63,621.
See notes to financial statements.
22
Salina Airport Authority
NOTES TO FINANCIAL STATEMENTS
December 31, 1999 and 1998
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The Salina Airport Authority was established by the City of Salina, pursuant to Chapter 27, Article 3, of the
Kansas Statutes Annotated for the purpose of acquiring surplus federal government property, specifically
the Schilling Air Force Base, located near the City of Salina. The Authority administers the airport
commercial development and rental of associated real estate. The Authority is controlled by a five- member
Board of Directors appointed by the Salina City Commission and, in accordance with Governmental
Accounting Standards Board (GASB) Statement No. 14, the Authority is considered to be a component
unit of the City of Salina. The Authority is discreetly presented in the City's comprehensive annual
financial reports.
B. Measurement Focus, Basis of Accounting and Basis of Presentation
The Authority consists of an enterprise fund. Enterprise funds are classified as proprietary funds by the
GASB and are accounted for using a total economic resource measurement focus. The enterprise fund is
used to account for operations that are financed and operated in a matter similar to private business
enterprises. The intent of the Authority is that the costs of providing services on a continuing basis be
recovered through user fees and rents. The financial statements are prepared on the accrual basis of
accounting. Under the accrual basis, revenues are recognized as earned and expenses as incurred. It is the
Authority's policy to follow all Financial Accounting Standards Board (FASB) standards issued after
November 30, 1989, for its proprietary activities unless those new FASB pronouncements conflict with
GASB guidance.
C. Assets, Liabilities and Equity
1. Cash and Investments
The Authority's cash and cash equivalents are considered to be cash on hand, demand deposits and short-
term investments with original maturities of three months or less from date of acquisition. The Authority
held no investments during these years.
2. Receivables
Accounts Receivable. The Authority records revenues when services are provided. All receivables are
shown net of an allowance for uncollectibles.
Property taxes receivable. The determination of assessed valuations and the collections of property taxes
for all political subdivisions in the State of Kansas is the responsibility of the various counties. The office
of the County Appraiser annually determines assessed valuations and the County Clerk spreads the annual
assessment on the tax rolls. The County Treasurer is the tax collection agent for all 1-axing entities within
the county. In accordance with state statutes, property taxes are levied November 1 of the current year and
are a revenue source to be used to finance the budget of the ensuing year. One -half of the property taxes
are due December 20, prior to the fiscal year for which they are budgeted, and the second half is due the
following June 20. This procedure eliminates the need to issue tax anticipation notes since funds will be on
hand prior to the beginning of each fiscal year.
23
Salina Airport Authority
NOTES TO FINANCIAL STATEMENTS
December 31, 1999, and 1998
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — continued
C. Assets, Liabilities and Equity — continued
Collection of current year property tax by the County Treasurer is not completed, apportioned nor
distributed to the various subdivisions until the succeeding year, such procedure being in conformity with
governing state statutes. Consequently, current year property taxes receivable are not available as a
resource that can be used to finance the current year operations of the Authority. Accruals of uncollected
current year property taxes are offset by deferred revenue. It is not practicable to apportion delinquent
taxes held by the County Treasurer and, further, the amounts thereof are not material in relationship to the
financial statements taken as a whole.
3. Inventories
The Authority maintains no significant inventory of office and maintenance supplies. These items are
expensed as purchased and no inventory is recorded in these financial statements.
4. Prepaid items
Certain payments to vendors reflect cost applicable to future accounting periods and are recorded as
prepaid items.
5. Restricted Assets
Certain proceeds of leasehold revenue bonds are classified as restricted assets on the balance sheet because
their use is limited by applicable bond covenants.
6. Fixed Assets
Fixed assets purchased or constructed are recorded at cost. The cost of normal maintenance and repairs
that do not add to the value of the assets or materially extend assets' lives are not included in fixed assets
cost. Fixed assets donated to the Authority are recorded at their estimated fair value at the date of donation.
Donated assets include property and equipment transferred to the Authority from the United States of
America, September 9, 1966 and recorded at fair value at that date for $529,872.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of proprietary fund fixed assets is reflected in the capitalized value
of the asset constructed, net of interest earned on the invested proceeds over the same period. In 1999 and
1998, $4,216 and $127,885 interest was capitalized respectively.
Fixed assets are depreciated using the straight -line method over the following estimated useful lives:
Assets
Years
Buildings
5-50
Equipment
5—
10
Vehicles
7-10
Airfield
10-30
24
I.
II.
Salina Airport Authority
NOTES TO FINANCIAL STATEMENTS
December 31, 1999 and 1998
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
C. Assets, Liabilities and Equity — continued
6. Fixed Assets - continued
Depreciation applicable to certain property and equipment which have been funded by or contributed to the
Authority by the federal government, is charged against the respective capital grant equity balance. This
charge is effected by transferring the applicable depreciation from retained earnings and has no effect on
income.
7. Compensated Absences
Substantially all full -time employees receive compensation for vacations, holidays, illness and certain other
qualifying absences. The number of days compensated for various categories of absence is generally based
on length of service. Liabilities relating to these absences are recognized as incurred and included in
accrued expenses. The amount accrued for such liabilities at December 31, 1999 and 1998 was $14,112
and $11,221 respectively.
D. Change in Classification
The Authority has reclassified certain costs incurred and paid in 1998 as follows:
As Previously
Reported
Land $7,526,173
Bond issue costs 68,137
As Currently
Reclassification Reported
$ (37,411) $7,488,762
37,411 105,548
The Authority has reclassified certain revenues and expenses as earned and incurred in 1998 as follows:
As Previously
Reported
Land Revenues $ 64,363
Property Tax Expense 25,885 .
As Currently
Reclassification Reported
$ 88,199 $ 1-2,562
88,199 114,084
STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Budgetary Information
The Authority is specifically exempt from Kansas Budget Law. The Authority is not required to
demonstrate statutory compliance with its annual operating budget. Accordingly, budgetary data is not
included in the financial statements.
B. Compliance With Bond Reserve Requirements
The Leasehold Revenue Bonds Series 1991 proceeds were used to construct a building that was leased to a
state university. The lease is a financing lease that transfers ownership of the building at the end of the
lease. The bond agreement established an $85,000 reserve requirement which the Authority has met.
25
Salina Airport Authority
NOTES TO FINANCIAL STATEMENTS
December 31, 1999 and 1998
III. DETAILED NOTES
A. Deposits
At December 31, 1999 and 1998, the carrying amount of the deposits was $158,611 and $1,218,639 plus
$50 cash on hand respectively, and the bank balance was $166,055 and $1,256,606 respectively.
The difference between the carrying amount and the bank balance is outstanding checks and deposits in
transit. Of the bank balance, $166,055 and $200,000 respectively was covered by federal deposit insurance
and the remaining $1,056,606 at December 31, 1998 was collateralized by pledged securities held under
joint custody receipts issued by a third -party bank in the Authority's name. The third -party bank holding
the pledged securities is independent of the pledging bank. The pledged securities are held under a tri -party
custodial agreement signed by all three parties: the Authority, the pledging bank, and the independent third -
party bank holding the pledged securities.
B. Receivables
Receivables as of year -end, including the applicable allowance for uncollectible accounts, are as follows:
1999
Receivables:
Accounts $ 123,012
Taxes 714,772
Gross receivable 837,784
Less: allowance for uncollectibles 1,500
Total $ 836,284
C. Net Investment in Financing Lease
Net investment in financing lease is as follows:
1999
Total lease payments receivable $2,273,408
Less: Unearned income 1,013,180
Net investment in financing leases $1,260,228
Activity in net investment in financing leases was as follows:
December 31
1998
$ 46,728
750,142
796,870
0
$ 796,870
December 31
1998
$2,462,854
1,143,363
$1,319,491
Year Ended December 31
1999 1998
Beginning Balance $1,319,491 $1,374,152
Less: Collected principal 59,263 54,661
Ending Balance $1,260,228 $1,319,491
26
Salina Airport Authority
NOTES TO FINANCIAL STATEMENTS
December 31, 1999 and 1998
III. DETAILED NOTES - continued
D. Fixed Assets
The following is a summary of the changes in the general fixed assets account group during the current
year.
The following is a summary of proprietary fund -type fixed assets at December 31, 1999:
Land
Buildings and improvements
Airfield
Equipment
Less: Accumulated depreciation
Net Fixed Assets
E. Long -Term Liabilities
December 31
1999 1998
$ 8,427,792 $ 7,488,762
7,629,515 7,038,281
16,832,170 17,290,397
1,420,300 1,129,697
$34,309,777 $32,947,137
9,725,025 8,863,249
$24,584,752 $24,083,888
Following is a summary of changes in long -term liat
Balance
January 1,
1999
General obligations bonds $6,170,000
Revenue bonds 555,000
Loan payable 373,783
$7,098,783
27
iilities for fiscal
Additions
$1,280,000
0
94,760
$1,374,760
year 1999:
Reductions
$1,880,000
55,000
48,014
$1,983,014
Balance
December 31,
1999
$5,570,000
500,000
420,529
$6,490,529
Balance
Reclassifications
Balance
January 1,
and
December 31,
1999
Additions
Deletions
1999
Land
$ 7,488,762
$ 729,520
$ 209,510
$ 8,427,792
Buildings and improvements
7,038,281
609,999
(18,765)
7,629,515
Airfield
17,290,397
60,835
(519,062)
16,832,170
Equipment
1,129,697
25,907
264,696
1,420,300
32,947,137
1,426,261
(63,621)
34,309,777
Less: Accumulated
depreciation
8,863,249
925,397
(63,621)
9,725,025
Total
$24,083,888
$ 500,_864
$ 0
$24,584,752
The following is a summary of proprietary fund -type fixed assets at December 31, 1999:
Land
Buildings and improvements
Airfield
Equipment
Less: Accumulated depreciation
Net Fixed Assets
E. Long -Term Liabilities
December 31
1999 1998
$ 8,427,792 $ 7,488,762
7,629,515 7,038,281
16,832,170 17,290,397
1,420,300 1,129,697
$34,309,777 $32,947,137
9,725,025 8,863,249
$24,584,752 $24,083,888
Following is a summary of changes in long -term liat
Balance
January 1,
1999
General obligations bonds $6,170,000
Revenue bonds 555,000
Loan payable 373,783
$7,098,783
27
iilities for fiscal
Additions
$1,280,000
0
94,760
$1,374,760
year 1999:
Reductions
$1,880,000
55,000
48,014
$1,983,014
Balance
December 31,
1999
$5,570,000
500,000
420,529
$6,490,529
III.
Salina Airport Authority
NOTES TO FINANCIAL STATEMENTS
December 31, 1999 and 1998
DETAILED NOTES - continued
E. Long -Term Liabilities - continued
The following is a detailed listing of the Authority's long -term debt including general obligation bonds,
revenue bonds and loan payable.
General Obligation Bonds
General Obligation 1993 -A, due 2003
General Obligation 1993 -B, due 2003
General Obligation 1998, due 2007
Taxable General Obligation 1999 -A,
due 2006
General Obligation 1999 -B, due 2010
Revenue Bonds
Leasehold revenue 1991, due 2006
Kansas Department of Commerce
and Housing Loan, due 2007
Total
Interest expense in 1999 is as follows:
General Obligation Bonds
Revenue Bonds
Loan
Less: Capitalized interest
Add: Amortization of bonds costs
Original
Interest
Bonds
Issue
Rates
Outstanding
$ 375,000
3.40% to 5.00%
$ 170,000
275,000
3.90% to 5.20%
125,000
4,440,000
4.05% to 5.50%
3,995,000
725,000
6.25% to 6.90%
725,000
555,000
3.90% to 5.10%
555,000
$5,570,000
$ 850,000
5.00% to 7.25%
$ 500,000
$ 515,609
2%
$ 420,529
$6,490,529
$ 308,420
38,552
9.132
356,104
4,215
351,889
17,672
J_!69 ,561
Advance refunding. The Authority issued $1,280,000 of general obligation bonds to provide resources to
purchase US Treasury securities which with other funds, were used to execute a current refunding of the
callable portion of the Authority's outstanding General Obligation Economic Development Bonds, Series
1990 -A and Series 1990 -B. The refunded bonds were called and redeemed on September 1, 1999 at a price
equal to 100% of par value without premium. The refunding plan was undertaken in order to achieve
interest cost savings and restructure the Authority's current debt repayment schedule.
Salina Airport Authority
NOTES TO FINANCIAL STATEMENTS
December 31, 1999, and 1998
III. DETAILED NOTES - continued
E. Long -Term Liabilities - continued
Annual debt service requirements to maturity for general obligation bonds to be paid with tax levies and
rental revenues:
1%
Bonds
Interest
Year
Outstanding
Due
Total
2000
$ 630,000
$ 272,219
$ 902,219
2001
645,000
228,954
873,954
2002
660,000
198,669
858,669
2003
680,000
167,360
847,360
2004
605,000
137,834
742,834
To maturity
2,350,000
279,410
2,629,410
$5,570,000
$1,284,446
$6,854,446
Annual debt service requirements to
maturity for revenue bonds to be paid with rental
revenues:
Bonds
Interest
Year
Outstanding
Due
Total
2000
$ 60,000
$ 35,006
$ 95,006
2001
60,000
31,104
91,104
2002
65,000
26,994
91,994
2003
70,000
22,510
92,510
2004
75,000
17,610
92,610
To maturity
170,000
18,880
188,880
$500,000
$152,104
$652,104
Annual debt service requirements to maturity for Kansas Department of Commerce and Housing Loan to
be paid from rental levies:
Loan
Interest
Year
Principal
Due
Total
2000
$ 48,978
$ 8,167
$57,145
2001
49,963
7,182
57,145
2002
50,967
6,178
57,145
2003
51,991
5,154
57,145
2004
53,036
4,109
57,145
To maturity
165,594
5,844
171,437
$420,529
$36,634
j4E 162
1%
Salina Airport Authority
NOTES TO FINANCIAL STATEMENTS
December 31, 1999 and 1998
III. DETAILED NOTES — continued
IV.
F. Retained Earnings and Contributed Capital
Under the provision of bond agreements, certain assets are restricted for specific uses. Retained earnings
which have been reserved relating to these restricted assets consist of the following:
Reserved retained earnings:
Land sale proceeds
Leasehold bonds reserve
Reserved retained earnings
Unreserved retained earnings
Total retained earnings
December 31
1999 1998
$ 0 $ 258,500
85,000 85,000
85,000 343,500
9,211,811 8,340,265
$9,296,811 $8,683,765
Board designated restricted assets are not reported as reserved retained earnings
Changes in grants and contributions are summarized as follows:
OTHER INFORMATION
A. Defined Benefit Pension Plan
Plan description — The Authority participates in the Kansas Public Employees Retirement System
( KPERS). The plan is a cost - sharing multiple - employer defined benefit pension plan as provided by
Kansas statutes (KSA 74 -4901 et seq). KPERS provides retirement benefits, life insurance, disability
income benefits and death benefits. Kansas law establishes and amends benefit provisions. KPERS issues
30
Federal
Grants
Balance January 1, 1998
$ 9,731,232
1998 additions, AIP & HUD grants
1,447,768
Depreciation on property and equipment acquired by government grants
(576,420)
Balance December 31, 1998
10,602,580
1999 additions, AIP & HUD grants
97,971
1999 return of previous AIP grant
(11,131)
Depreciation on property and equipment acquired by government grants
(595,779)
Balance December 31, 1999
$10,093,641
OTHER INFORMATION
A. Defined Benefit Pension Plan
Plan description — The Authority participates in the Kansas Public Employees Retirement System
( KPERS). The plan is a cost - sharing multiple - employer defined benefit pension plan as provided by
Kansas statutes (KSA 74 -4901 et seq). KPERS provides retirement benefits, life insurance, disability
income benefits and death benefits. Kansas law establishes and amends benefit provisions. KPERS issues
30
Salina Airport Authority
NOTES TO FINANCIAL STATEMENTS
December 31, 1999 and 1998
IV. OTHER INFORMATION -continued
A. Defined Benefit Pension Plan — continued
a publicly available financial report that includes financial statements and required supplementary
information. Those reports may be obtained by writing to KPERS (611 S. Kansas Avenue, Suite 100,
Topeka, Kansas 66603 -3803) or by calling 1- 800 - 228 -0366.
Funding policy — KSA 74 -4919 establishes the KPERS member - employee contribution rate at 4% of
covered salary. The employer collects and remits member - employee contributions according to the
provision of section 414(h) of the Internal Revenue Code. State law provides that the employer
contribution rates be determined annually based on the results of an annual actuarial valuation. KPERS is
funded on an actuarial reserve basis. State law sets a limitation on annual increases in the employer
contribution rates. The KPERS employer rate established for calendar year 1999 is 2.93 %. The Authority
employer contributions to KPERS for the years ending December 31, 1999, 1998, and 1997 were $11,147,
$9,908,and $8,128 respectively, equal to the required contributions for each year.
B. Deferred Compensation Plan
The Authority offers its employees a deferred compensation plan ( "Plan ") created in accordance with
Internal Revenue Code Section 457. The Plan, available to all Authority employees, permits them to defer
a portion of their salary until future years. The deferred compensation is not available to employees until
termination, retirement, death, or unforeseeable emergency. Plan assets are transferred to a plan agent in a
custodial trust and are not available to the claims of the Authority's general creditors.
C. Flexible Benefit Plan (I.R.C. Section 125)
The Authority has adopted by resolution a salary- reduction flexible benefit plan ( "Plan ") under Section 125
of the Internal Revenue Code. All Authority employees working more than 20 hours per week are eligible
to participate in the Plan beginning after two full months of employment. Each participant may elect to
reduce his or her salary to purchase benefits offered through the Plan. Benefits offered through the Plan
include various insurance and disability benefits.
D. Risk Management
The Authority is exposed to various risks of loss related to torts; theft of, damage to and destruction of
assets; errors and omissions; and natural disasters for which the Authority carries commercial insurance.
Settlements of claims did not exceed coverage for the years ended December 31, 1999, 1998 or 1997.
E. Subsequent Events
The Authority closed on the sale of a manufacturing building and land on March 31, 2000. The net
proceeds were $1,405,991.
31
Salina Airport Authority
NOTES TO FINANCIAL STATEMENTS
December 31, 1999 and 1998
IV. OTHER INFORMATION - continued
F. Contingent Liabilities
The Authority receives significant financial assistance from numerous federal and state governmental
agencies in the form of grants and state pass - through aid. The disbursement of funds received under these
programs generally requires compliance with terms and conditions specified in the grant agreements and is
subject to audit. Any disallowed claims resulting from such audits could become a liability of the
Authority. However, in the opinion of management, any such disallowed claims would not have a material
effect on any of the financial statements of the Authority at December 31, 1999.
The Authority is a defendant in one lawsuit. Although the outcome of this lawsuit is not presently
determinable, it is the opinion of the Authority's legal counsel that resolution of these matters will not have
a material adverse effect on the financial condition of the Authority.
G. Environmental Matter
The Authority has been involved in discussions with the Corps of Engineers, Environmental Protection
Agency, and the Kansas Department of Health and Environment relative to the former Schilling Air Force
Base (the "Base ") in Salina, Kansas. The Base was operational from 1942 to 1965 when it was
decommissioned and became the current Salina Municipal Airport and Salina Airport Industrial Center.
During its period of operation, the Base was used for large aircraft including B -17s, 13 -29s, B -47s and the
refueling KC -97s and KC -135s. The Army Corps of Engineers did a removal of 107 former underground
storage tanks at the former Base in 1995. In addition to efforts by the Corps of Engineers, the
Environmental Protection Agency is planning to conduct an Expanded Site Investigation (ESt) to evaluate
all sources of potential contamination at the Site.
Once the additional information gathering effort has been conducted and all parties know the nature and
extent of contamination, we anticipate that there will be a discussion with respect to cleanup options and
allocation of responsibility. At this time, the Authority does not know specifically whether the City of
Salina or the Authority will have cleanup obligations.
H. Rental Income Under Operating Leases
A significant portion of the operating revenue of the Authority is generated through the leasing of airport
and building space to airport fixed base operators and others on a fixed fee as well as a contingent rental
basis. Ownership risks are retained by the Authority, and accordingly, such leases are treated as operating
leases.
32
Salina Airport Authority
NOTES TO FINANCIAL STATEMENTS
December 31, 1999 and 1998
IV, OTHER INFORMATION - continued
I. Rental Income Under Operating Leases - continued
The following is a schedule of minimum future rentals on non - cancellable operating leases to be received
in each of the next five years and thereafter:
Years Ended
December 31
2000
$ 707,304
2001
568,792
2002
209,095
2003
99,905
2004
52,872
Later years
268,858
Total $1,906,826
J. Major Customers
The Authority receives significant operating and financing lease revenue from Raytheon Aircraft Company,
Kansas State University- Salina, E1Dorado National, Moore's Midway Aviation, Schwan's Sales, and
Flower Aviation. Rentals from these six tenants equals 65% of operating and capital lease revenue for the
year ended December 31, 1999.
K. Non - Operating Income
Net non - operating income consisted of the following for the years ended December 31, 1999 and 1998:
1999 1998
Mill levy $783,363 $322,270
Interest and investment income
Financing leases 126,230 132,327
Other interest 32,628 113,146
Total 942,221 567,743
Interest expense
Revenue bond 38,552 40,651
General obligation bonds 304,205 148,058
Other debt 9,132 12,421
Amortization of bond issue costs 17,672 6.000
Total 369,561 207,130
Net non - operating income $572,660 $ 360,613
33
IV
Salina Airport Authority
NOTES TO FINANCIAL STATEMENTS
December 31, 1999 and 1998
OTHER INFORMATION - continued
L. Commitment Under Operating Lease
The Authority has entered into a non - cancellable operating lease agreement for the rental of office
equipment. Minimum rentals, on an annual basis are as follows:
Years Ended
December 31
2000
2001
2002
2003
2004
34
$ 4,260
4,260
4,260
4,260
2,130
$19,170
(THIS PAGE INTENTIONALLY LEFT BLANK)
35
SALINA AIRPORT AUTHORITY
SCHEDULES OF OPERATIONS AND CHANGES
IN RETAINED EARNINGS
(continued)
36
January 1 to December 31
1999
1998
OPERATING REVENUES
Building rents
$ 802,744
$ 813,854
Ramp rents
59,859
58,333
Land rents
212,927
152,562
Agri land rents
47,328
53,337
Hangar rents
72,172
56,117
Tank farm rents
7,118
6,550
Fixed base operator
234,338
178,814
Landing fees
10,660
8,784
Commissions
18,872
13,963
Other income
8,094
22,128
TOTAL OPERATING REVENUES
1,474,112
1,364,442
OPERATING EXPENSES BEFORE DEPRECIATION
ADMINISTRATIVE EXPENSES
Office salaries
209,282
191,304
Office supplies
7,272
11,733
Postage
4,522
5,151
Travel and meetings
25,962
22,461
Legal and accounting
38,428
33,528
Insurance - property /liability
46,364
52,700
Insurance- medical
70,927
63,448
Engineering
5,645
-
FICA tax
31,912
31,707
Kansas unemployment tax
417
475
Employees retirement
11,148
11,482
Telephone
11,890
13,184
Industrial development
20,000
20,000
Airport promotion
37,058
33,479
Property taxes
171,752
114,084
Dues and subscriptions
11,909
10,985
Property appraisals
2,950
4,500
Other administrative
19,213
10,852
TOTAL ADMINISTRATIVE EXPENSES
726,651
631,073
(continued)
36
SALINA AIRPORT AUTHORITY
SCHEDULES OF OPERATIONS AND CHANGES
IN RETAINED EARNINGS
(continued)
MAINTENANCE EXPENSES
Maintenance salaries
Building maintenance
Airfield maintenance
Grounds maintenance
Equipment gas, oil & repairs
Utilities
Snow removal expense
Fire department expense
Other maintenance expenses
TOTAL MAINTENANCE EXPENSES
TOTAL OPERATING EXPENSES BEFORE
DEPRECIATION
OPERATING EARNINGS BEFORE DEPRECIATION
DEPRECIATION EXPENSE
OPERATING LOSS
NON - OPERATING INCOME (EXPENSE)
Mill levy
Interest income - capital lease
Interest income
Bond interest - expense
Amortization of bond costs
NET NON - OPERATING INCOME
NET INCOME (LOSS)
ADD DEPRECIATION ON ASSETS ACQUIRED THROUGH
FEDERAL CONTRIBUTIONS (Note 1)
INCREASE (DECREASE) IN RETAINED EARNINGS
RETAINED EARNINGS, January I
RETAINED EARNINGS, December 31
37
January I to December 31
1999
1998
214,526
209,588
36,392
30,300
14,908
13,594
2,365
12,815
16,843
18,904
68,724
71,647
6,600
-
4,602
5,949
377,457 377,551
370,004 355,818
(555,393) (535,794)
783,364
322,270
126,230
132,327
32,628
113,146
(351,890)
(201,130)
(17,672)
(6,000)
572,660
360,613
17,267
(175,181)
595,779 576,421
613,046 401,240
8,683,765 8,282,525
$ 9,296,811 $ 8,683,765
SALINA AIRPORT AUTHORITY
CAPITAL EXPENDITURES
LAND
Design & construction
TOTAL LAND
EQUIPMENT
Shop equipment
Computer equipment
Communication equipment
Other equipment
TOTAL EQUIPMENT
BUILDINGS AND IMPROVEMENTS
Terminal building remodel
Terminal and T- Hangar parking apron
Terminal landscaping
Raytheon loading dock
1655 Wall St. modifications
Wall St. Aerospace Site improvements
Other building improvements
TOTAL BUILDINGS
AIRFIELD AND INFRASTRUCTURE
Airservice planning consultant
AIP 18
TARDI S
TOTAL OTHER IMPROVEMENTS
TOTAL CAPITAL EXPENDITURES
W.
January 1 to December 31
999
S 729,520
729,520
4,008
10,581
4,991
6,327
25,907
214,228
36,495
32,678
75,074
194,990
50,270
6,264
609,999
40,439
15,411
4,985
60,835
$ 1,426,261
Date of isue:
Amount of issue:
Interest rate:
Maturity date:
Principal paid:
Outstanding balance:
SALINA AIRPORT AUTHORITY
TAXABLE GENERAL OBLIGATION REFUNDING BONDS
SERIES 1999 - A
December 31, 1999
11111111 1111;� 11111 111! 1111111
Due in
Year
June 29, 1999
$ 725,000
6.25% to 6.90%
Sept. 1, 2006
$ 725,000
Bond Bond
Inter Interes Principal
2000
$ 57,024
$ 55,000
2001
45,440
80,000
2002
40,160
95,000
2003
33,795
115,000
2004
26,032
120,000
Thereafter
26.498
260.000
39
$ 228,949 $ 725,000
Date of isue:
Amount of issue:
Interest rate:
Maturity date:
Principal paid:
Outstanding balance:
SALINA AIRPORT AUTHORITY
GENERAL OBLIGATION REFUNDING BONDS
SERIES 1999 - B
December 31, 1999
Due in
Year
June 29, 1999
$ 555,000
390% to 5.20%
Sept. 1, 2010
$ 555,000
Bond Bond
Interest Principal
2000
$ 30,001
$ 60,000
2001
23,375
50,000
2002
21,325
45,000
2003
19,412
40,000
2004
17,672
40,000
Thereafter
63,078
320,000
$ 174,863
$ 555,000
M
Date of issue:
Amount of issue:
Interest rate:
Maurity date:
Principal paid:
Outstanding balance:
SALINA AIRPORT AUTHORITY
GENERAL OBLIGATION BONDS
SERIES 1998 - A
December 31, 1999
June 29, 1998
$ 4,440,000
4.05% to 5.50%
Sept. 1, 2008
$ 445,000
$ 3,995,000
RTMOM -e U' -
Due in
Bond
Bond
Year
Interes Inter
Principal
2000
$ 172,672
$ 445,000
2001
150,422
445,000
2002
130,398
445,000
2003
112,375
445,000
2004
94,130
445,000
Thereafter
189,834
1,770,000
$ 849,831
$ 3,995,000
41
Date of issue:
Amount of issue:
Interest rate:
Maturity date:
Principal paid:
Outstanding balance:
SALINA AIRPORT AUTHORITY
GENERAL OBLIGATION BONDS
SERIES 1993 - A
December 31, 1999
• • • :•�• • ' lavlors ••-0
Due in
Year
Dec. 6, 1993
$ 375,000
3.40% to 5.00%
Sept. 1, 2003
$ 205,000
$ 170,000
Bond Bond
Interest n i 1
2000
$ 7,092
$ 40,000
2001
5,532
40,000
2002
3,892
45,000
2003
990
45,000
Thereafter
-
-
42
$17,506 $ 170,000
Date of issue:
Amount of issue:
Interest rate:
Maurity date:
Principal paid:
Outstanding balance:
SALINA AIRPORT AUTHORITY
GENERAL OBLIGATION BONDS
SERIES 1993 - B
December 31, 1999
Due in
Year
Bond
Interes
Dec. 1, 1993
$ 275,000
3.85% to 4.75%
Sept. 1, 2003
$ 150,000
$ 125,000
Bond
Principalal
2000
$ 5,430
$ 30,000
2001
4,185
30,000
2002
2,894
30,000
2003
788
35,000
Thereafter
-
-
$13,297
$ 125,000
43
SALINA AIRPORT AUTHORITY
KANSAS DEPARTMENT OF COMMERCE AND HOUSING, LOAN PAYABLE
December 31, 1999
Date of loan:
Amount of loan:
Interest Rate:
Maturity date:
Principal paid:
Outstanding balance:
Oct. 1, 1998
$ 515,609
2%
Oct. 1, 2007
$ 95,081
$ 420,528
619103 W1 02 9 9 Was Me 91W UM-
Due in
Loan
Loan
Year
Interest
rin i al
2000
$ 8,167
$ 48,978
2001
7,182
49,963
2002
6,178
50,967
2003
5,154
51,991
2004
4,109
53,036
Thereafter
5,844
165,594
$ 36,634
$ 420,529
44
Date of issue:
Amount of issue:
Interest rate:
Maturity rate:
Principal paid:
Outstanding balance:
SALINA AIRPORT AUTHORITY
LEASEHOLD REVENUE BONDS
SERIES 1991
December 31, 1999
Nov. 1, 1991
$ 850,000
5.00% to 7.25%
Sept. 1, 2006
$ 350,000
$ 500,000
Due in
Bond
Bond
Year
Interest
Principal
2000
$ 35,006
$ 60,000
2001
31,104
60,000
2002
26,994
65,000
2003
22,510
70,000
2004
17,610
75,000
Thereafter
18,880
170,000
$ 152,104
$ 500,000
45
SALINA AIRPORT AUTHORITY
SCHEDULE OF FEDERAL ASSISTANCE
For The Year Ended December 31, 1999
Program Title
DEPARTMENT OF TRANSPORTATION,
CFDA #20.106
Federal Aviation Administration
Terminal apron overlay
South general aviation apron overlay
DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT, CFDA #14.219
Federal ID Expenditures Amount
Number During Year of Awards
3 -20- 0072 -18
3 -20- 0072 -19
Pass through Kansas Department of Commerce and Housing
Grant Agreement No. 96 -CP -005
(1) Grant
(2) Loan
W-11
$ 15,411 $ -
- 3,212
189,520 94,760 (1)
94,760 (2)
$ 204,931 $ 192,732
SALINA AIRPORT AUTHORITY
COMPARISON OF GROSS CASH BALANCES WITH DEPOSITORY SECURITY
December 31, 1999
GROSS CASH BALANCES
Demand deposit
Cash in checking - balance per books
Uncleared checks and deposits
BANK BALANCE
LESS FDIC COVERAGE
BALANCESSECURABLE
BY COLLATERAL
SECURITY REQUIRED
(100°/x)
SECURITY PROVIDED
BY DEPOSITORIES
AMOUNT UNDERSECURED
BY STATUTE
47
UMB-
National Bank Sunflower
$ 80,127 $ 78,484
7,288 156
87,415 78,640
100,000 100,000
$ (12,585) $ (21,360)
1,006,919 870,332
SALINA AIRPORT AUTHORITY
INSURANCE IN FORCE
December 31, 1999
AMOUNT OF
INSURANCE POLICY TYPE OF COVERAGE COVERAGE
Commercial Union Ins. Co. Workmen's Compensation
Pol. #711900070135 and Employer's Liability $ 500,000
National Union Fire Ins. Co. Bodily Injury & Liability $ 500,000
of Pittsburgh, PA Hangar Keepers $ 500,000
Pol. #AP3229456 -05
Commercial Union Ins. Co.
Fire & Lightning,
Pol. #CTR446926
Extended Coverage,
Vandalism & Malicious Mischief
$
6,932,251
Business Personal Prop.
$
487,400
Loss of Rents
$
1,634,631
Commercial Union Ins. Co.
Boiler & Machinery
$
1,000,000
Pol. #CTR399483
Office and Stores
$
500,000
Commercial Union Ins. Co.
Vehicles & Equipment
Pol. #PTAR00079 -3
Liability
$
500,000
Medical Payments
$
2,000
Uninsured Motorists
$
500,000
ITT Hartford
Public Employees Blanket Bond
Pol. #PEB DB 1019
Honesty Blanket
Position Bond Coverage
$
100,000
Coregis Insurance Co.
Public Officials & Empl. Liability
Pol. #POI - 000227 -3
Errors & Ommissions
Excluding Asbestos,
Excluding Pollution Coverage
on a Claims Made Basis,
5,000 deductible
$
500,000
American Alliance Ins. Co.
Kansas UST Liability
Pol. #KST 788- 29 -33 -05
Environmental Incident
$
1,000,000
Annual Aggregate
$
1,000,000
Limit of Defense
$
100,000
5,000 deductible
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49
Salina Airport Authority
OPERATING EXPENSE HISTORY
Ten Years Ended December 31, 1999
50
Office &
Total
Administrative
Maintenance
Operating
Fiscal Year
Expense
Expense
Expense
1990
430,225
338,936
769,161
1991
408,578
329,137
737,715
1992
415,819
347,498
763,317
1993
458,918
361,412
820,330
1994
467,803
370,266
838,069
1995
481,914
375,594
857,508
1996
497,561
398,287
895,848
1997
568,606
367,530
936,136
1998
631,072
377,551
1,008,623
1999
726,651
377,457
1,104,108
50
Salina Airport Authority
FEDERAL FINANCIAL ASSISTANCE HISTORY
Ten Years Ended December 31, 1999
Fiscal Year
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
Federal Aviation
Administration
Airport
Improvement Grant
40,917
29,430
335,349
30,162
270,191
3,210,933
2,006,786
1,640,967
1,026,918
<7,920>
Housing & Urban
Development
Community Development
Block Grant
841,700
189,520
NOTE:
1. The use of Federal Aviation Administration Airport Improvement Program
Grant Funds are limited to use for funding specific airfield capital improvements.
Airfield capital improvements are detailed in program grant agreements
entered into by the Salina Airport Authority and the Federal Aviation Administration
The grant funds finance 90% of total project costs.
2. During 1998, the SAA was awared a Community Development Block
Grant from the Kansas Department of Commerce and Housing in the amount of $1,031,219
The proceeds were used to reconstruct over 6.5 miles of secondary streets within the
Salina Airport Industrial Center. 50% of the awarded amount is a true grant and 50% a loan.
3. During 1999, the SAA closed out two (2) Airport Improvement Projects. AIP No. 18 closeout
resulted in the SAA refunding the Federal Aviation Administation in the amount of $11,132.
The SAA received a final reimbursment in the amount of $3,212 to closeout AIP No. 19.
51
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Salina Airport Authority
REVENUE BOND COVERAGE
Ten Years Ended December 31, 1999
Fiscal
Pledged
Revenue Bond
Year
Revenue
Debt Service
Coverage
1990
409,915
211,780
1.93
1991
426,707
206,570
2.06
1992
531,761
286,024
1.86
1993
414,514
278,395
1.50
1994
421,554
280,578
1.50
1995
189,446
163,215
1.16
1996
189,446
163,790
1.16
1997
189,446
168,962
1.12
1998
189,446
163,938
1.16
1999
184,446
163,841
1.13
Notes:
1. Revenues pledged to service Leasehold
Revenue Bonds, Series 1990 -B
and Series 1991
2. During 1999, the Series 1990 -B Bonds were refinanced to remove IRS restrictions and
achieve an interest rate savings.
Source: Salina Airport Authority Records
53
Salina Airport Authority
Principal Customers
Year Ended December 31, 1999
Notes:
Total of Operating Lease and Direct Finance Lease Revenue for 1999 was $1,665,057.92
Source: Salina Airport Authority Records
54
% of Operating & Direct
Company
Revenue
Finance Lease Revenue
Raytheon Aircraft Corp.
$249,127
17.00%
Kansas State University - Salina
$194,158
13.25%
Schwan's Sales
$158,906
10.84%
Flower Aviation
$134,078
9.15%
Moore's Midway Aviation
$128,402
8.76%
ElDorado National
$90,293
6.16%
Kasa Fab, Inc.
$68,604
4.68%
Salina Vortex Corp.
$49,374
3.37%
Sandpiper Yachts
$25,875
1.77%
Exide Corporation
$25,312
1.73%
Builders Choice
$21,468
1.46%
ADM Milling Co.
$19,963
1.36%
Palleton of Kansas, Inc.
$18,950
1.29%
Kejr, Joe
$18,845
1.29%
Lanseair of Salina
$18,744
1.28%
Smith, Bill
$18,672
1.27%
FAA
$18,600
1.27%
GeoCore Services
$17,940
1.22%
Snak -Atak
$17,217
1.17%
Two Rivers Vending Co., Inc.
$15,800
1.08%
Salina Aircraft Sales
$15,000
1.02%
Laas, Brent
$14,550
0.99%
Coronado Engineering
$14,275
0.97%
Central Ks Auto Rental
$12,905
0.88%
Tiger Corp /Avis Rent -A -Car
$12,551
0.86%
Blicks Agri -Farm Center, Inc.
$12,000
0.82%
Blue Beacon International
$11,896
0.81%
Breer, Larry
$11,575
0.79%
GCC License Corporation
$11,400
0.78%
H &H Delivery Service
$11,187
0.76%
Roto - Reclaimer Corp.
$11,105
0.76%
Palmer Trucking Co.
$11,049
0.75%
Great Lakes Aviation, LTD
$10,897
0.74%
Mesa Airlines /Air Midwest
$10,252
0.70%
TVCN of KS
$9,360
0.64%
Waddle's Manufacturing
$8,750
0.53%
Plains Environmental
$8,736
0.52%
Notes:
Total of Operating Lease and Direct Finance Lease Revenue for 1999 was $1,665,057.92
Source: Salina Airport Authority Records
54
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Salina Airport Authority
PROPERTY TAX REVENUE
Ten Years Ended December 31, 1999
Fiscal Year
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
Source: Salina Airport Authority Records
56
Property Tax
Revenue
0
0
0
0
$301,829
$406,232
$357,887
$338,058
$322,270
$783,363
Salina Airport Authority
AIR TRAFFIC, FUEL FLOWAGE AND ENPLANEMENT TRENDS
Ten Years Ended December 31, 1999
Fiscal
Year
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
Air Traffic
Operations
96,254
83,372
71,697
66,144
61,215
68,291
62,021
68,822
80,338
90,400
Fuel Flowage
Gallons
3,136, 668
2,681,605
2,552,156
2,126,230
2,424,880
2,435,656
2,907,894
3,577,650
3,603,673
3,808,886
One air traffic operation equals one aircraft takeoff and landing
Source: Salina Airport Authority Records
57
Scheduled
Air Service
Enplainements
5,707
15,391
5,799
5,591
7,175
7,813
8,652
9,153
12,909
13,436
Salina Airport Authority
MAJOR EMPLOYERS IN THE SALINA /SALINE COUNTY AREA
December 31, 1999
Major Private Employers
Approx. # Type of
Company Employees Business
Tony's Pizza
2,100
Frozen Foods Manufacturer
Salina Reg. Med. Center
1,082
Health Care
Exide Corporation
775
Battery Manufacturing
Raytheon Aircraft Co.
653
Aircraft Sub - assemblies Manuf.
Great Plains Manufacturing
650
Farm Implements & Landscaping Equipment
Philips Lighting
620
Fluorescent Lamp Manufacture
Eldorado National, Inc.
345
Medium & Small Shuttle Buses
OCCK
229
Plastic products, Subcontracting
Wal -Mart
183
Retail
Advance Auto /Parts America
150
Warehouse Distribution
KASA/KASA Fab
144
Electronic Controls & Steel Fabrication
Crestwood Cabinets, Inc.
144
Custom Made Cabinets
Elliott Turbocharger, Inc.
138
Rebuilding of diesel engine turbochargers
Exline
130
Structural steel fabrication
Salina Journal
130
Newspaper Publishing
Premier Pneumatics
110
Pneumatic Convey Equipment
PKM Steel
91
Steel Fabrication
Major Public Employers
Approx. #
Public Organizations Employees Type of Public Body
Unified School District #305 935 School System
City of Salina 471 City Government
Kansas State University - Salina 248 Engineering Technology & Aviation Technology
Saline County 233 County Government
US Postal Service 128 Postal Service
Source: Salina Area Chamber of Commerce
104
Salina Airport Authority
SALINE COUNTY POPULATION, DEMOGRAPHIC AND LABOR STATISTICS
Year Population
1990
49,365
1991
49,991
Saline County Population
1992
50,517
1993
51,066
53,000
52,000
1994
51,346
r0 51,000
1995
51,783
>- 50,000
1996
51,820
48,000
48,000
1997
51,637
1998
51,399
1999
51,379
Demographics
Median Age 33.5
Number of Households 19,826
Median Household Income $33,711
Per Capita Income $26,422
Employment and Civilian Labor Force
Civilian Labor
Year Force Employed Unemployed
1988 27,776 26,365 1,411 Employment and Civilian Labor Force
1989 27,954 26,772 1,182
1990 28,454 27,261 1,193 32,000
1991 29,356 28,179 1,177 30,000 _
1992 30,409 29,270 1,139 28,000
1993 28,549 27,261 1,288
1994 28,093 26,804 1,289 26,000
1995 30,412 29,027 1,385 2a,000
00 O> O C) N M M N !O 1M CO
00 00 Of T T OI Q1 M O)
1996 29,752 28,596 1,156 � � � � � � � � � � o
1997 29,918 28,832 1,086
1998 30,310 29,262 1,048
Sources: Institute for Public Policy and Business Research, University of Kansas and
Kansas Department of Human Resources Labor Market Information Services
59
Salina Airport Authority
SALINE COUNTY EMPLOYMENT DATA
Unemployment Rate - 1986 -1997
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
Employment by Industry
Total Employment
Services
Retail Trade
Manufacturing
Government & Gov't Services
Construction
Finance, Insurance, Real Estate
Wholesale Trade
Transportation
Farm
Ag. Services
Mining
6.1
Unemployment Rate
5.6
20,000
5.1
— - -
4.2
6.0
4.2
5.0
4.0
4.0
-
3.7
3.0
a
2.0
s
4.5
1.0
��
4.6
- - - -
4.6
3.9
^ono ^o�� ^000
3.6
r-
E
O m y to O
1997
38,291
10,712
8,108
6,906
4,204
2,287
1,701
1,632
1,531
772
325
113
1987
30,674
8,394
6,080
4,738
3,454
1,700
1,746
1,876
1,253
903
214
332
Employment by Industry
25,000"
20,000
— - -
15,000
-
-
10,000
-
5,000
0
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Source: Institute
for Public Policy and
Business Research
University of Kansas, Salina /Saline County Profile Report
60
1997
01987
HARRISON & ARNETT
CHARTERED
CERTIFIED PUBLIC ACCOUNTANTS
EUGENE O. HARRISON, C.P.A. 717 ROACH STREET . SALINA, KANSAS 67401 PHONE: (785) 827 -7244
THOMAS G. ARNETT, C.P.A. FAX: (785) 827 -0048
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL
REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Board of Directors
Salina Airport Authority
Salina, Kansas
We have audited the financial statements of Salina Airport Authority, a component unit of the City of Salina,
Kansas, as of and for the years ended December 31, 1999 and 1998, and have issued our report thereon dated
April 19, 2000. We conducted our audit in accordance with generally accepted auditing standards and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States.
Compliance
As part of obtaining reasonable assurance about whether Salina Airport Authority's financial statements are free
of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts and grants, noncompliance with which would have a direct and material effect on the determination of
financial statement amounts. However, providing an opinion on compliance with those provisions was not an
objective of our audit and accordingly, we do not express such an opinion. The results of our tests disclosed no
instances of noncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Salina Airport Authority's internal control over financial
reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the general
purpose financial statements and not to provide assurance on the internal control over financial reporting. Our
consideration of the internal control over financial reporting would not necessarily disclose all matters in the
internal control over financial reporting that might be material weaknesses. A material weakness is a condition in
which the design or operation of one or more of the internal control components does not reduce to a relatively
low level the risk that misstatements in amounts that would be material in relation to the financial statements
being audited may occur and not be detected within a timely period by employees in the normal course of
performing their assigned functions. We noted no matters involving the internal control over financial reporting
and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of the audit committee, management, others within the
organization, Board of Directors, and federal awarding agencies and pass - through entities and is not intended to
be and should not be used by anyone other than these specified parties.
Harrison & Arnett , Chartered
Salina, Kansas
April 19,2000
MEMBERS OF
DIVISION FOR CPA FIRMS PRIVATE COMPANIES PRACTICE SECTION
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
KANSAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
al
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62