Audit - 2017COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF 300 West Ash Street
P.O. Box 736
Salina, Kansas 67402 -0736
For the Fiscal Year Ended
December 31, 2017
Prepared by Department of Finance and Administration
of City of Salina, Kansas
CITY OF SALINA, KANSAS
Comprehensive Annual Financial Report
For the year ended December 31, 2017
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION
Letter of Transmittal i -iv
Organizational Chart v
List of Principal Officials vi
FINANCIAL SECTION
Independent Auditor’s Report 1 -3
Management's Discussion and Analysis 4 -15
Basic Financial Statements:
Government-wi de Financial Statements
Statement of Net Position 16
Statement of Activities 17
Fund Financial Statements
Balance Sheet -Governmental Funds 18
Reconciliation of the Total Governmental Fund Balance to
Net Position of Governmental Activities 19
Statement of Revenues, Expenditures, and Changes in
Fund Balance -Governmental Funds 20
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures
and Changes in Fund Balance with the Government-Wide Statement of Activities 21
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual (Non-GAAP Basis)
General Fund 22
Tourism and Convention Fund 23
Special Gas Fund 24
Sales Tax Capital Fund 25
Statement of Net Position -Proprietary Funds 26
Statement of Revenues, Expenses, and Changes in
Net Position -Proprietary Funds 27
Statement of Cash Flows -Proprietary Funds 28 -29
Statement of Assets and Liabilities -Agency Funds 30
CITY OF SALINA, KANSAS
Comprehensive Annual Financial Report
For the year ended December 31, 2017
TABLE OF CONTENTS -CONTINUED
Page
FINANCIAL SECTION -CONTINUED
Notes to the Basic Financial Statements 31 -67
Required Supplementary Information
Schedule of Funding Progress and Schedule of Employer Contributions 68
KPERS Pension Plan
Schedule of City’s Proportionate Share of the Net Pension Liability 69
Schedule of City Contributions 69
Combining Statements and Individual Fund Schedules
Combining Statements -Nonmajor Funds
Fund Descriptions 70 -71
Combining Balance Sheet -Nonmajor Governmental Funds 72
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances -Nonmajor Governmental Funds 73
Combining Balance Sheet -Nonmaj or Special Revenue Funds 74 -75
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances -Nonmajor Special Revenue Funds 76 -77
Combining Balance Sheet -Nonmajor Permanent Funds 78
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances -Nonmajor Permanent Funds 79
Individual Fund Schedules of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual (Non-GAAP Basis):
Bicentennial Center Fund 80
Business Improvement City Fund 81
Neighborhood Park Fund 82
Special Parks and Recreation Fund 83
Special Alcohol Fund 84
Sales Tax Economic Development Fund 85
Arts & Humanities Fund 86
Debt Service Fund 87
Solid W aste Disposal Fund 88
Water and Sewer Fund 89
Sanitation Fund 90
Golf Course Fund 91
Workers’ Compensation Reserve Fund 92
Health Insurance Fund 93
Central Garage Fund 94
CITY OF SALINA, KANSAS
Comprehensive Annual Financial Report
For the year ended December 31, 2017
TABLE OF CONTENTS -CONTINUED
Page
FINANCIAL SECTION -CONTINUED
Internal Service Fund Descriptions 95
Combining Statement of Net Position -Internal Service Funds 96
Combining Statement of Revenues, Expenses, and Changes in Net
Position -Internal Service Funds 97
Combining Statement of Cash Flows -Internal Service Funds 98 -99
Fiduciary Fund Descriptions -Agency Funds 100
Combining Balance Sheet -Agency Funds 101
Combining Statement of Changes in Assets and Liabilities -Agency Funds 102
Schedule
STATISTICAL SECTION
Net Position by Component -Last Ten Years 1 103
Changes in Net Position -Last Ten Years 2 104
Fund Balances, Governmental Fund -Last Ten Years 3 105
Changes in Fund Balances, Governmental Funds -Last Ten Years 4 106
Tax Revenues by Source, Governmental Funds -Last Ten Years 5 107
Assessed and Estimated Actual Value of Taxable Property –Last Ten Years 6 108
Direct and Overlapping Property Tax Rates –Last Ten Years 7 109
Principal Property Tax Payers 8 110
Property Tax Levies and Distributions 9 111
Direct Sales Rate by Taxing Entity 10 112
Water Sales by Class of Customer 11 113
Ratio of Outstanding Debt by Type 12 114
Ratio of Net General Bonded Debt Outstanding 13 115
Direct and Overlapping Governmental Activities Debt 14 116
Legal Debt Margin 15 117
Pledged Revenue Coverage 16 118
Demographic and Economic Statistics 17 119
Principal Employers 18 120
INTRODUCTORY SECTION
DEPARTMENT OF FINANCE TELEPHONE (785) 309-5735
AND ADMINISTRATION FAX (785) 309-5738
300 West Ash, P.O. Box 736 TDD (785) 309-5747
Salina, Kansas 67402-0736 Website: www.salina-ks.gov
i
October 12, 2018
To the Citizens of the City of Salina, Kansas:
The Comprehensiv e Annual Financial Report of the City of Salina, Kansas (the "City") for the year ended
December 31, 2017, is hereby submitted. The City’s Finance Department prepared the report.Responsibility
for both the accuracy of the data and the completeness and fairness of the presentation, including all
disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data is accurate in all
material respects and is reported in a manner designed to present fairly the financial position and results of
operations of all various funds and account groups of the City.We believe that all di sclosures necessary to
enable the reader to gain an understanding of the City's financial activities have been included.
Report Format
The Comprehensiv e Annual Financial Report is presented in three sections: Introductory, Financial and
Statistical.The introductory section includes a description of the City, including services provided, and
explanation of the City’s accounting system and budgetary controls, and a brief di scussion of the City’s
economic condition and outlook.The City's organizational chart is also included to assist the reader in
understanding the structure of the City.The financial section includes the Independent auditor’s report,
Management’s discussion & analysis, Government wide financial statements, Fund financial statements,
Notes to the financial statements, and Individual and combining statements and schedules. The statistical
section includes selected financial and demographic information, generally presented on a multi-year basis.
The reader is specifically directed to Management’s Discussion and Analysis (MD&A) which immediately
follows the independent auditor’s report.MD&A provides a narrative ex pl anation and overview of significant
features and trends reflected by data in the financial statements.
Accounting Systems and Internal Controls
A critical part of the control system is the City’s comprehensiv e Budgetary and Financial Policies, which
establish guidelines for budgetary and financial practices.The Budgetary and Financial Policies are reviewed
by the City Commission and updated each year as a part of the budget process.
City staff is responsible for establishing and maintaining an internal control structure designed to ensure that
the assets of the City are protected from loss, theft or misuse and that adequate accounting data is compiled
to al low for the preparation of financial statements in conf ormity with generally accepted accounting
principles.The internal control structure is designed to provide reasonable, but not absolute, assurance that
these objectiv es are met.The concept of reasonable assurance recognizes that:(1) the cost of a control
should not ex ceed the benefits likely to be derived;and (2) the valuation of costs and benefits require
estimates and judgment by management.
The objective of budgetary controls is to ensure compliance with legal provisions embodied in the annual
appropriated budget approved by the City Commission.The legal level of budgetary control is maintained at
the Fund level, in accordance with State Statutes.Howev er, management control is maintained at the
department level.The City uses an encumbrance accounting system, in which estimated purchase am ounts
are recorded prior to the release of purchase orders to vendors.Open encumbrances are reported as
reserv ations of fund balance at December 31, 2017 in the general fund and the special revenue funds.
Various internal compliance procedures are implemented to insure proper implementation of the budget as
well as to maintain a degree of accountability for both rev enues and expenditures.
ii
Independent Audit
Kansas Statutes Annotated 75-1122 requires an annual audit of the books of account, financial records and
transactions of all administrative departments of the City by independent certified public accountants
selected by the City Commission.This requirement has been complied with and the auditor's opinion has
been included in this report.
Profile of the Community
The Town of Salina was organized in 1858 under the Town and Village Act in the State of Kansas, and
became a City of the First Class on July 9, 1920.The City has had a Commission-City Manager form of
gov ernment since 1921.The Commission is comprised of five members elected at large.Each year the
commission chooses one member to act as Mayor.The City Manager is appointed by the Commission, and
acts as its primary agent in accordance with state statute.Other city officers and employees are appointed
by the City Manager.The current population of the City is 47,336.
The reporting entity includes the City of Salina as well as two discretely presented component units, both
proprietary fund types.The Salina Airport Authority operates the Salina Municipal Airport and Airport
Industrial Center, and the Salina Housing Authority administers public housing programs within the City of
Salina.The entity al so includes one blended component unit. Salina Field House Qualified Active Low-
Income Community Business,Inc. (SFH QalicB). SFH QalicB was created for the purpose of providing an
indoor sports facility in the downtown corridor of the city of Salina. In addition, the City of Salina participates
in a joint venture with Saline County, the City-County Building Authority.This report includes all funds and
account groups of the City..
The City provides a full range of services including police and fire protection, development services,
construction and maintenance of streets, drainage facilities and other infrastructure; recreational activities
and cultural ev ents; emergency medical services and conv ention facilities.In addition to general government
activities, the City al so provides water, wastewater, sanitation, and solid waste services; therefore, these
activities are included in the reporting entity.
Economic Outlook and Strength
The City benefits from its location at the junction of Interstate Highways 70 and 135.This conv enient location
has drawn numerous national and regional companies to open manufacturing or distribution centers in or
adjacent to the community.Such companies include Pepsi-Cola, Exide Technologies, Blue Philips Lighting
Company, ElDorado National, and Schwan’s Global Supply Chain. Manuf acturing, retail trade, and service
industries rank as the three primary employers in the City. No single industry is dominant.
The City of Salina retains its position near the top of a list of first class cities with respect to “trade pull
factor.” The pull factor measures the degree to which a city or county area captures retail trade from outside
the jurisdiction.A pull factor of greater than 1 indicates that a city is attracting more retail trade from outside
the city/county than it is losing to other counties.It is apparent from this that Salina continues to serv e as a
regional economic hub in 2017.
Major Initiatives
In April, 2016, voters el ected to replace the .40 cent capital improvement sales tax with a .75 cent capital
improvement sales tax for a term of 20 years. Priorities for the sales tax are improving neighborhood streets
and drainage, preserving stable property tax rates, ensuring a quality park system, constructing and
maintaining community improvements, funding equipment for maintenance, repayment of future bonds for
large projects and attracting quality jobs.As a result of this initiativ e, the City has seen a 38% increase in
sales tax collections in 2017 as compared to 2016.
In July of 2017, the Salina Field House was opened for business. Other major projects that were on going,
included reconstruction on Country Club Road,South Well Field improvements, continued improvements to
iii
the water distribution system and preliminary design on the Sm oky Hill River Renewal and Police Training
Center projects.
The City continues to address fiduciary pressures generated by a recessionary economy. General
adjustments to the pay pl an for cost of living changes at a rate of 2% were implemented in 2017. The City
also allowed for merit review increases up to 3%.
Capital Improvement Planning
The City's Capital Improvement Plan (CIP) consists of two components.One component consists of “routine”
capital—including vehicle and equipment replacement, technology replacement, building repair and
improvement, routine pavement mai ntenance activity, utility system enhancements and similar items.The
amount of funding for these projects may fluctuate based on needs and funding av ailability, howev er,
planned amounts are allocated over a multi-year period.Source of funding for routine capital is current cash
resources from the fund appropriate to the nature of the purchase.
The second component of the CIP includes major projects that typically require issuance of bonds or notes,
although these projects may also be supplemented with av ailable cash and grant financing.The plan is
updated each year after an ex tensive ev aluation of the demands on future financial resources.The Capital
Improvement program is scheduled for a major revision as the result of the sales tax to be used for that
purpose.
Construction initiated: *2018 2019 2020 2021 2022
Sales tax $ 8,260,500 $ 4,380,000 $ 4,385,000 $ 4,390,000 $ 3,895,000
Water & wastewater fund 1,776,101 --------
General obligation bonds 4,500,000 6,135,000 25,000,000 ----
Revenue bonds 38,250,000 4,000,000 5,850,000 32,000,000 4,000,000
Other sources 7,810,000 750,000 ------
$ 60,596,601 $ 15,265,000 $35,235,000 $36,390,000 $ 7,895,000
*The year a project is scheduled reflects the year that construction is initiated.Preliminary work (design,
acquisition) may precede this date by one or more years, and permanent financing may not occur until one
(or more years depending on project magnitude) subsequent to this date.
Financial Policies
The City has adopted a formal set of Budgetary and Financial Policies, addressing such items as fund
balances, capital improv ements, operating budgets, long term debt management, accounting, auditing and
financial reporting, revenues, cash management and inv estments. Financial policies contribute to financial
stability by:
1.Providing consistent guidance in decision making
2.Establishing appropriate levels of fund balances
3.Gov erning the use of one time or unanticipated resources
4.Providing a multi-year capital improv ements process
5.Establishing responsibilities and deadlines for budget preparation
6.Providing for a balanced annual operating budget
7.Providing guidelines on the use of debt, including appropriate purposes and terms
8.Provide a linkage between capital improvement scheduling and long term debt management
planning
9.Require annual audits and financial reporting in conformance with Generally Accepted Accounting
Procedures
10.Require timely and regular interim financial reporting to the Governing body
11.Insure the saf ety of cash and near cash resources (timely collection of Accounts Receivable,
etc.).
iv
Acknowledgments
The preparation of the Comprehensive Annual Financial Report was made possible by the dedicated
Finance staff of the City of Salina and the professional advice and effort s of the Mize Houser auditing team.
Finally, preparation of this report would not have been possible without the support of the City Commission.
Sincerely,
Mike Schrage
Interim City Manager
CITIZENS
CITY COMMISSION
Karl Ryan, Mayor
Trent Davis
Melissa Rose Hodges
Mike Hoppock
Joe Hay
Interim City Manager
Michael Schrage
Municipal Court
Risk Management
Deputy City Manager
Michael Schrage
Legal Services
Clark Mize & Linville Chartered*
Greg Bengtson
Continuous Process Improvement
Scott Gardner
Development Services
Lauren Driscoll
Building Services
Neighborhood Services
Planning & Zoning
Community Relations
Human Resources
Natalie Fischer
Arts & Humanities
Brad Anderson
Computer Technology
Jack Rolfs
Smoky Hill Museum
Parks Division
Recreation Division
Golf Course
Facility Maintenance
Animal Services
*Tony’s Event Center
Parks & Recreation
Chris Cotten
Public Works
Jim Kowach
Police
Brad Nelson
Utilities
Martha Tasker
Finance/Administration
Debbie Pack
Fire
Kevin Royse
Engineering
Public Services
Streets
Traffic Control
Flood Control
Sanitation
Solid Waste
Central Garage
Water Plant Division
Wastewater Plant
Division
Utility Division
Water Distribution
Wastewater
Collection
City Clerk
Water Customer
Accounting
Finance
Fire Administration
Fire Suppression
Fire Prevention
EMS
Administration
Patrol Division
Support Division
Investigative
Division
v
vi
City of Salina, Kansas
List of Principal Officials
City Commission
Karl Ryan, Mayor
Trent Davis, Vice Mayor
Mike Hoppock, Commissioner
Melissa Hodges, Commissioner
Joe Hay, Jr, Commissioner
City Executive Staff
Michael Schrage, Interim City Manager
Lauren Driscoll, Director of Development Services
Debbie Pack, Director of Finance and Administration
Jack Rolfs, Director of Computer Technology
Natalie Fischer, Director of Human Resources
Greg Bengston, City Attorney
Brad Nelson, Chief of Police
Kevin Royse, Fire Chief
Daniel Stack, City Engineer
Jim Kowach, Director of Public Works
Martha Tasker, Director of Utilities
Chris Cotton, Director of Parks and Recreation
Brad Anderson, Director of Arts and Humanities
FINANCIAL SECTION
www.mizehouser.com mhco@mizehouser.com
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534 S Kansas Ave, Suite 400 Topeka, KS 66603-3454 785.234.5573 p 785.234.1037 f
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211 E Eighth Suite ALawrence, KS 66044-2771 785.842.8844 p 785.842.9049 f
1
INDEPENDENT AUDITOR’S REPORT
Mayor and City Commissioners
City of Salina, Kansas
Report on the Financial Statements
We have audited the accompanying financial st atements of the governmental activities, the business-type activities,
the aggregate di scretely presented component units, each major fund, and the aggregate remaining fund
information of the City of Salina, Kansas, as of and for the year ended December 31, 2017, and the related notes to
the financial st atements, whi ch collectively comprise the City’s basic financial st atements as listed in the table of
contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial st atements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relev ant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on the financial statement based on our audit. We conducted our audit
in accordance with auditing standards generally accepted in the United States of America and the Kansas
Municipal Audit and Accounting Guide. Those standards require we plan and perform the audit to obtain
reasonable assurance about whether the financial statement is free of material misstatement. We did not audit the
financial statements of the Salina Field House Qualified Active Low-Income Community Business, Inc. (SFH
QalicB), which is included within the financial statements as a major gov ernmental fund. This activity represents
6% and 0%, respectively, of the total assets and total rev enues of the governmental funds. Those financial
statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it
relates to the am ounts included for SFH QalicB, is based solely on the report of the other auditors. We also did
not audit the financial statements of the Salina Airport Authority which statements reflect total assets and deferred
outflows of resources of $47,156,349 as of December 31, 2017 and total revenues of $5,559,861 for the year then
ended, and the Housing Authority of the City of Salina which statements reflect total assets and deferred outflows
of resources of $7,613,952 as of June 30, 2017 and total revenues of $2,623,955 for the year then ended, which
are discretely presented component units in the accompanying financial statements. Those financial statements
were audited by other auditors whose reports thereon hav e been furnished to us, and our opinion, insofar as it
relates to the am ounts included for the Salina Airport Authority and the Housing Authority of the City of Salina is
based solely on the reports of the other auditors.
2
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinions
In our opinion, based on our audit and the reports of other auditors, the financial statements referred to above
present fairly, in all material respects, the respective financial position of the governmental activities, the business-
type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining
fund information of the City of Salina, Kansas, as of December 31, 2017, and the respective changes in financial
position and cash flows, where applicable, thereof and the respective budgetary comparison for the General,
Tourism and Convention, Special Gas and Sales Tax Capital Funds for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's discussion
and analysis on pages 4 through 15 and the schedules of funding progress on page 68, the schedule of the City’s
proportionate share of the net pension liability on page 69 and the schedule of City contributions on page 69 be
presented to supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part
of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical
context. We have applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency with management’s
responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the City’s financial statements as a whole. The introductory section, combining and individual nonmajor fund
financial statements and schedules, and statistical tables as listed in the table of contents are presented for
purposes of additional analysis and are not a required part of the basic financial statements. The combining and
individual nonmajor fund financial statements and schedules are the responsibility of management and were derived
from and relate directly to the underlying accounting and other records used to prepare the financial statements. The
information has been subjected to the auditing procedures applied in the audit of the financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying account and
other records used to prepare the basic financial statements or to the financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United States of America. In
our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.
3
The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of
the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.
Certified Public Accountants
Lawrence, Kansas
October 12, 2018
4
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2017
(Unaudited)
This section of the report contains an ov erview and analysis of the City of Salina’s financial statements for the fiscal
year ended December 31, 2017. The information contained here, as well as the information contained in the letter of
transmittal, are intended to provide the reader of the financial statements with a well-rounded picture of the City’s
financial condition.
Financial Highlights
On an accrual basis, the City’s government-wide net position increased $9.4 million from current operations with
net position increases of $7.8 million and $1.6 million in gov ernmental activities and business-type activities,
respectiv el y.
At the close of 2017, the City’s gov ernmental funds reported combined ending fund balances of $21.8 million, an
increase of $5.1 million from the prior year. This primarily resulted from issuance of general obligation bonds in
the Capital Projects Fund and the capital project expenditures in the SFH QalicB Fund. The General Fund
balance increased $1.9 million ov er the prior year.
At the close of 2017, the City’s enterprise funds reported a combined ending Net Position of $89.1 million, an
increase of $1.5 million ov er prior year. Positive performance was shared by all enterprise funds, with the Water
and Sewer Fund prov iding the bulk of the change ($.9 million).
Revenues from governmental funds decreased $.6 million from the prior year and revenues from business type
funds increased $1.1 million from the prior year.
Rev enues from inv estments continue to be minimal.
The Basic Financial Statements
The basic financial statements of the City include the government-wide financial statements and the fund financial
statements. The notes to the financial statements follow the basic financial statements and are essential for the
reader’s understanding of the financial statements. Other supplementary information, including the combining
schedules for non-major funds and the budgetary comparison reports, are at the end of this report to provide
additional information for the reader.
Government-wide Financial Statements
The gov ernment-wide financial statements present the results of the City’s operations using the accrual basis of
accounting, the same basis as is used by priv ate sector businesses. These statements focus on the long-term
financial picture of the City as a whole.
The Statement of Net Position reports all of the City’s assets and liabilities. Net position, the difference between
assets and deferred outflows of resources and liabilities, are an important measure of the City’s ov erall financial
health. Net position represents the total accumulated and unused resources av ailable to the City for the purpose of
providing services. Over time, the increases and decreases in net position can be monitored to determine if the
City’s financial position is improving or deteriorating.
The Statement of Activities shows how net position has changed during the fiscal year. One unique feature of this
statement is how it shows the rev enues and expenses related to specific programs and how much of those programs
were supported by the general taxes of the City. Since this statement is prepared on the accrual basis of accounting,
all rev enues and expenses are included, regardless of when cash is actually received. Both statements show the
operations of the City broken down between gov ernmental and business-type activities. Governmental activities are
the operations of the City generally supported by taxes, such as public saf ety (police, fire, and EMS), public works,
public health, and culture & recreation. Business-type activities are operations of the City that are intended to
recov er a significant portion of their costs through user fees and charges. These include water and sewer, refuse
collection, the golf course, and operation of the City solid waste facility.
5
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2017
The gov ernment-wide financial statements include the Salina Airport Authority and Salina Housing Authority as
discretely presented component units of the City and the Salina Field House Qualified Active Low-Income
Community Business, Inc. (SFH QalicB) as a blended component unit. Note 1, item A in the Notes to the Financial
Statements provides a more complete explanation of the relationship between these entities and the City of Salina.
Fund Financial Statements
The City uses three types of funds to manage its resources: gov ernmental funds, proprietary funds, and fiduciary
funds. A fund is a fiscal entity with a set of self -balancing accounts recording financial resources together with all
related liabilities and residual equities and balances, and the changes therein. These accounting entities are
separated for the purpose of carrying on specific activities or attaining certain objectives in accordance with
regulations, restrictions, or limitations.
Gov ernmental fund financial statements are prepared on a modified accrual basis. Under this basis, revenues are
recognized when they become measurable and av ailable, and ex penditures are recognized when the related fund
liability is incurred with the exception of long term debt and similar items which are recorded when due. The focus is
on the short-term financial pi cture of the operations of the individual fund, rather than long-term citywide view
provided by the government-wide statements. Major gov ernmental funds are presented in individual columns, while
non-major gov ernmental funds are aggregated into an “Other Governmental Funds”column. A combining statement
for the non-major funds is presented as supplementary information in the back of the report. The information
presented in these statements can be compared to the gov ernmental activities information in the government-wide
statements. The reconciliation at the end of the fund financial statements details the relationship between the two
types of financial statements.
Proprietary funds fall into two categories: enterprise funds and internal service funds. All proprietary funds are
prepared on the accrual basis of accounting and are used to account for business-type activities. Enterprise fund
statements present the same information that is in the gov ernment-wide statements for business-type activities, but
in greater detail. The City of Salina currently operates four enterprise funds: Sanitation, Solid Waste Disposal, Golf
Course, and Water and Sewer. Internal service funds are used to account for the cost of operations shared by
various departments of the City. The city operates three internal service funds. Two of these are for self-insurance
activity: Workers Compensation Reserv e, and Health Insurance. The remaining accounts for the Central Garage
operation. A com bi ni ng statement for these internal service funds can be found in the supplementary information
following the notes to the financial statements.
Fiduciary funds are used by the City to account for resources held by the City for a third party. Agency funds are a
special class of fiduciary fund in which liabilities always equal assets, and thus there is no net position. The City of
Salina operates twelve agency funds. Schedules for these funds may be viewed in the supplementary section of this
report.
Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not principal,
may be used. Permanent funds operated by the City include the Citizenship Trust, Cemetery and Mausoleum
Endowments, and the Tri-centennial Commission fund.
Notes to the Financial Statements
The notes to the financial statements are an integral part of the basic financial statements since they contain valuable
additional information necessary for gaining a complete understanding of the City’s financial statements.
Other Information
In addition to the basic financial statements and the notes described abov e, this report also presents the general fund
and major special revenue fund’s budgetary statements as required supplementary information directly following the
notes to the basic financial statements. The combining statements for the non-major funds are shown after the
required supplementary information. Finally, the statistical section includes selected statistical data about the City’s
operations and economy.
6
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2017
The City as a Whole
This section will identify, di scuss, and analyze significant differences and trends that will enhance the reader’s
understanding of the City’s financial position.
Tax Base and Economy
The City of Salina relies on three major groups of revenues to support its operations. Each of these rev enue streams
has a different revenue base. In declining order of magnitude, they are charges for services, sales taxes, and
property taxes. Sales taxes and property taxes apply primarily to gov ernmental activities, while charges for services
apply to both gov ernmental (20%) and business-type (80%) activities.
Charges for services account for about 43% ($36.8 million) of the City’s rev enue stream. Charges for service
depend on both the rate that is set for the activity, as well as the volume of services provided. Significant services
include water and wastewater fees, sanitation and landfill fees, licenses and permits, inspection fees and golf course
fees.Charges for services increased $1.1 million (3%) from the prior year with the solid waste disposal fund
increasing $370K (13.24%) and water and sewer fund increasing $533K (3%). The increase in charges for serv ices
in the solid waste disposal fund is a result an increase in disposal fees of 3.5%, as well as well as a large one time
customer, while the increase in the water and sewer fund is a result of an increase in water and wastewater fees by
3%.
Sales taxes are the next largest component of the rev enue mix, providing 25.5%($21.7 million) of the total
rev enues. The City receives a .90% City-wide sales tax, and also a portion of the County-wide 1% sales tax. Forty-
four percent, (a rate of .75%)of the City-wide sales tax is required to be used for special purposes. The remaining
.5%,al ong with the City portion of the County-wide tax is av ailable for general purposes.
In 2008, Salina voters approv ed an increase of the special purpose .25% tax to a .40% tax. The extended tax is to
sunset March 31, 2019. The tax was also modestly re-purposed, for Capital and Economic Development purpose s
only, as well as retaining a property tax stabilization component.In May 2017, Salina voters approv ed an increase in
the special purpose .40% tax to a .75% tax (thus repealing the 2008 increase). This change became effective
October 1, 2017 for twenty years.
Property taxes are the third major component of the rev enue mix, accounting for 13.6%($11.6 million) of total
rev enues. Property taxes consist of two components: Real estate and personal property taxes which are
determined by the mill levy set by the city and the assessed value of the property; and motor vehicle taxes which are
established by a countywide av erage tax rate and the assessed v alue of the vehicle.
Real estate assessed value increased by .5%. The total City mill levy decreased 1.06%. The ov erlapping levy
decreased in 2017 by .63%.
Personal property value continued to slide, presumably as a result of rem ov ing business equipment from the tax
base. Personal property value has now dropped to $11.1 million from its peak of $39.7 million in 2007. At the 2017
tax rate, this exemption is equivalent to ov er $760K in annual lost revenue.
Motor vehicle value decreased 1.66%. Motor vehicle taxes are di stributed based on a formula using prior year’s tax
effort (similar to the Countywide Sales Tax Distribution).
7
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2017
The following table summarizes the comparative property assessed v alues and tax levy rates:
Fiscal (Budget) Year 2017 2016 Change
Real Estate and Personal Property Assessed Valuation 422,364,328$ 420,849,599$ 1,514,729$
City Mill Levy ($ per $1,000)
Operating (General Fund)21.694 19.95 1.744
Debt Service 5.909 7.361 (1.452)
Total City Rate 27.603 27.311 0.292
Total Overlapping Levy 134.153 134.999 (0.846)
Percent of Total Taxes Collected 99.9%93.5%6.4%
Ratio of Total Taxes (including delinquent collections) to taxes levied 101.7%95.5%6.2%
Motor Vehicle Valuation 50,970,796$ 51,833,505$ (862,709)$
Comparative Property Values and Tax Levy Rates
The unemployment rate in Salina decreased slightly from 3.3% at the end of 2016 to 2.7% at the end of 2017,
reflecting general economic conditions. This is still slightly below the statewide and significantly below the national
unemployment rate. The total labor force stayed at 27,684.
In 2017, the top ten property taxpayers accounted for 14.24%of total assessed v al ue. This is less concentrated than
ten years ago (at 15.48%).
Statement of Net Position
Net position may, ov er time, provide an indicator of a gov ernment’s financial position. In the case of the City of
Salina, assets and deferred outflows of resources exceeded liabilities by $212.8 million at December 31, 2017. This
represents an increase in net assets of $9.4 million over 2016. A comparative Condensed Statement of Net Position
at December 31, 2017 and 2016:
8
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2017
2017 2016 2017 2016 2017
% of
Total 2016
% of
Total
2017-2016
change
Cash and investments 24,491$ 26,873$ 30,336$ 29,505$ 54,827$ 15%56,378$ 16%(1,551)$
Other current assets 13,836 13,990 2,338 2,213 16,174 4%16,203 4%(29)
Noncurrent (capital) assets 206,600 197,122 91,306 90,784 297,906 81%287,906 80%10,000
Total assets 244,927 237,985 123,980 122,502 368,907 100%360,487 100%8,420
Total deferred outflows of
resources 5,968 6,681 887 878 6,855 100%7,559 100%(704)
Total assets and deferred outflows
of resources 250,895 244,666 124,867 123,380 375,762 368,046 7,716
Current liabilities 12,540 17,370 3,879 3,598 16,419 11%20,968 14%(4,549)
Noncurrent liabilities 102,076 98,158 31,685 32,020 133,761 89%130,178 86%3,583
Total liabilities 114,616 115,528 35,564 35,618 150,180 100%151,146 100%(966)
Total deferred inflows of resources 12,578 13,270 220 202 12,798 13,472 (674)
Net position:
Net investment in capital assets 129,921 124,635 63,316 62,427 193,237 91%187,062 92%6,175
Restricted for permanent funds 502 489 - - 502 0%489 0%13
Restricted for debt service 1,510 1,249 1,512 1,512 3,022 1%2,761 1%261
Unrestricted (8,232) (10,505) 24,255 23,621 16,023 8%13,116 6%2,907
Total net position 123,701 115,868 89,083 87,560 212,784 100%203,428 100%9,356
Percent of total net position 58%57%42%43%100%100%
Cash and investments as a percentage
of current liabilities 195%155%782%820%334%269%
Governmental Activities Business-Type Activities
Condensed Statement of Net Position
As of December 31
(In $000)
Total Primary Government
The largest segment of the City’s net position reflects its investment in capital assets (land, buildings, streets and
drainage facilities, utility plant, vehi cles, equipment, etc.), less any debt used to acquire those assets that is still
outstanding. These assets are used to provide services to citizens. As a result, resources required to retire related
debt cannot come from liquidation of the asset. Such resources generally must be provided from other sources, such
as future taxes or user charges.
A small portion of net position is restricted for debt service and permanent funds. The remainder (unrestricted) of net
position may be used to meet the City’s obligations to citizens and creditors.
In 2017, the amount of net investment in capital assets increased by $6.2 million. Am ount restricted for debt service
increased by $261 thousand. Outside of the increase in net investment in capital assets and the increase of
restricted for debt service, 2017 resulted in a $2.9 million increase to the net position.
Total liabilities decreased in gov ernmental activities and slightly decreased in business-type activities.In
gov ernmental activities,current liabilities and non-current liabilities decreased primarily due to a reduction in
temporary notes and an increase in general obligation bonds.
9
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2017
Statement of Activities
A Condensed Statement of Activities is shown below.
2017 2016 2017 2016 2017 % 2016 %
2017-2016
Change
Program Revenues:
Charges for Services 10 ,100$ 10 ,085$ 26,703$ 25,657$ 36,803$ 43%35,742$ 42%1,061$
Operating Grants and Contributions 4,541 4,332 - - 4,541 5%4,332 5%209
Capital Grants and Contributions - 734 - - - 0%734 1%(734)
General Revenues:
Property Taxes 12 ,960 12 ,588 - - 12 ,960 15 %12 ,5 88 15 %372
Sales Taxes 21,738 17 ,682 - - 21,738 25%17 ,6 82 21%4,056
Other Taxes 6,899 7,991 - - 6,899 8%7,991 9%(1,092)
Inv estment Revenue 93 14 8 12 9 78 222 0%226 0%(4)
Other M iscellaneous 2,003 5,841 10 3 79 2,106 2%5,920 7%(3,814)
Total Revenues:58,334 59,401 26,935 25,814 85,269 10 0%85,215 10 0%54
Expenses:-
General Government 9,781 9,188 - - 9,781 13 %9,188 12 %593
Public Safety 23,120 22,232 - - 23,120 30%22,232 30%888
Public Wo rks 10 ,345 9,773 - - 10 ,345 14 %9,773 13 %572
Public Health and Sanitation 1,12 6 1,095 - - 1,12 6 1%1,095 1%31
Culture and Recreatio n 6,880 6,612 - - 6,880 9%6,612 9%268
Planning and Development 1,835 2,047 - - 1,835 2%2,047 3%(212)
So lid Waste Disposal - - 2,364 2,335 2,364 3%2,335 3%29
Wa ter and Sewer - - 15 ,650 14 ,807 15 ,650 21%14 ,8 07 20%843
Sanitation - - 2,178 2,043 2,178 3%2,043 3%13 5
Go lf Course - - 852 792 852 1%792 1%60
Interest on Lo ng Term Debt 1,724 2,971 - - 1,724 2%2,971 4%(1,247)
Total Expenses 54,811 53,918 21,044 19 ,977 75,855 10 0%73,895 10 0%1,960
Increase in net assets before transfers 3,523 5,483 5,891 5,837 9,414 11,320 1,906
Transfers and o ther extraordinary items 4,309 3,600 (4,367) (3,581) (58) 19 (77)
Change in Net Position 7,832 9,083 1,524 2,256 9,356 11,339 1,829
Net Position January 1 115 ,869 10 6,704 87,559 85,229 203,428 19 1,933 11,495
Prio r P erio d A djustment - 82 - 74 - 15 6 (156)
Net Position January 1, r estated 115 ,869 10 6,786 87,559 85,303 203,428 19 2,089 11,339
Net Position December 31 12 3,701$ 115 ,869$ 89,083$ 87,559$ 212,784$ 203,428$ 13 ,168$
Condensed Statement of Activities
For the Year Ended December 31
Go vernmental
Activities
Business-Type
Activities Total Primary Government
Gov ernmental Activities. Charges for services attributable to governmental activities totaled $10.1 million and
operating grants for those purposes were $4.5 million. Both of these revenue streams increased slightly from the
prior year. The balance was funded by general revenues. Sales taxes accounted for $21.7 million of general
rev enues, with property taxes providing $12.9 million. The net position increased by $7.8 million as a result of
gov ernmental activities. This increase was primarily related to the increase in sales tax as a result of the collection of
two months of sales tax with the new special purpose sales tax rate.
Total ex penses for gov ernmental activities for the year ending December 31, 2017 were $54.8 million compared to
$53.9 million in 2016. Governmental activities represent 72%of the City’s total ex penses. The largest el ement of
gov ernmental activity expense was public safety, accounting for 30% of the total.
10
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2017
Business Type Activities. Business-type activities are primarily supported by user charges, with a very small amount
coming from investment and miscellaneous rev enues. Total ex penses for business-type activities for the year were
$21 million, or 27% of the City’s total ex penses. The majority of this ex pense ($15.6 million)is attributable to water
and sewer operations, with the other activities costing a combined total of $5.4 million. Net position decreased by
$1.5 million.This decrease was primarily related to the increase in water and sewer fund expenses.
Fund Financial Analysis
Governmental Funds
Fund Balances:
The table below shows the Gov ernmental Fund balances for major funds as of December 31, 2017 and December
31, 2016.
Fund 2017 2016 Change
General 6,883$ 5,032$ 1,851$
To uris m and Convent ion 213 183 30
Special Gas 1,082 812 270
Sales Tax Capital 2,084 1,667 417
Schilling Capital Improvement 3,024 4,061 (1,037)
Debt Servi ce 1,510 1,249 261
Capit al Projects 895 (6,823) 7,718
SFH QalicB 1,715 6,811 (5,096)
Other Governmental Funds 4,353 3,685 668
21,759$16,677$ 5,082$
Governmental Fund Balanc es
as of December 31,
(in 000's)
Total gov ernmental fund balances increased by $5.1 million. The reasons for these changes are varied. The
Schilling Capital Improv ement Fund, which was created to account for U.S. Gov ernment and other funds received for
the abatement of groundwater contamination, continues to decrease as the City uses funds previously di stributed.
The Capital Projects Fund increase was largely the result of the issuance of general obligation bonds to fund capital
outlays on projects.The SFH QalicB fund was created to account for funds for the Salina Field House.
11
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2017
Rev enues and Expenditures:
The following table shows a comparison of revenues and expenditures (including other sources and uses) for major
funds for the years ending December 31, 2017 and 2016.
Fund 2017 2016 Change
Revenues (Including Other Financing Sources)
General 41,864$ 40,081$ 1,783$
Tourism and Convention 1,685 1,643 42
Special Gas 1,598 1,570 28
Sales Tax Capit al 8,265 4,439 3,826
Schilling Capital Improvement 12 10 2
Debt Service 6,659 20,228 (13,569)
Capital Projects 12,125 16,432 (4,307)
SFH QalicB 248 12,573 (12,325)
Other Governmental Funds 4,067 4,119 (52)
To tal Revenues 76,523 101,095 (24,572)
Less Other Sources (19,924) (43,876) 23,952
Revenues, net of other sources 56,599$ 57,219$ (620)$
Expenditures (Including Other Finacing Uses)
General 40,013$ 39,889$ 124$
Tourism and Convention 1,655 1,624 31
Special Gas 1,328 1,396 (68)
Sales Tax Capit al 7,848 4,392 3,456
Schilling Capital Improvement 1,049 1,484 (435)
Debt Service 6,398 19,724 (13,326)
Capital Projects 4,407 12,718 (8,311)
SFH QalicB 5,344 5,762 (418)
Other Governmental Funds 3,399 3,838 (439)
To tal Expenditures 71,441 90,827 (19,386)
Les s Other Uses (4,160) (3,971) (189)
Expenditures, net of other uses 67,281$ 86,856$ (19,575)$
Consolidated Statement of Revenues and Expenditures for Major Governmental Funds
For the years ended December 31
Modified Accrual Basis
(in $000's )
Total revenues, including other sources, were down $24.6 million compared to 2016. The largest components of this
change were a $13.6 million decrease in Debt Service Fund primarily resulting from decreased bond proceeds and a
$12.3 million decrease in the SFH QalicB Fund primarily resulting from a decrease in bond proceeds.
Expenditures decreased in most ev ery fund. The Sales Tax Capital Fund ex penditures increased as a result the
ability of the city to expend additional revenues generated by the newly approv ed special purpose sales tax.
12
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2017
Proprietary Funds
The City of Salina operates four enterprise funds as well as five internal service funds. A summarized comparative
Statement of Net Position follows for each enterprise fund:
2017 2016 Ch ange 2017 2016 Ch ange
Cu rrent Assets 6,709$ 5,886$ 823$ 24,014$ 24,445$ (431)$
Ca pital Assets 3,196 4,047 (851) 86,888 85,444 1,444
De ferred Outflow s 79 72 7 676 675 1
Total Assets and deferred outf low s 9,984$ 10,005$ (21)$ 111,578$ 110,564$ 1,014$
Cu rrent Liabilities 445$ 442$ 3$ 3,299$ 3,043$ 256$
No ncurrent Liabilities 3,272 3,605 (333) 27,440 27,554 (114)
De ferred Inf low s 30 26 4 143 129 14
Total Liabilities 3,747$ 4,073$ (326)$ 30,882$ 30,726$ 156$
Ne t investment in capital assets 2,041$ 2,527$ (486)$ 60,053$ 66,038$ (5,985)$
Re stricted - - - 1,512 1,512 -
Un restricted 4,196 3,405 791 19,131 12,288 6,843
Total Net Position 6,237$ 5,932$ 305$ 80,696$ 79,838$ 858$
Cu rrent Assets as a percentage of current
liabilities 1508%1332%728%803%
2017 2016 Ch ange 2017 2016 Ch ange
Cu rrent Assets 1,787$ 1,250$ 537$ 164$ 136$ 28$
Ca pital Assets 826 894 (68) 395 399 (4)
De ferred Outflow s 102 100 2 32 31 1
Total Assets 2,715$ 2,244$ 471$ 591$ 566$ 25$
Cu rrent Liabilities 87$ 75$ 12$ 48$ 38$ 10$
No ncurrent Liabilities 733 613 120 240 248 (8)
De ferred Inf low s 38 36 2 11 11 -
Total Liabilities 858$ 724$ 134$ 299$ 297$ 2$
Ne t investment in capital assets 826$ 894$ (68)$ 395$ 399$ (4)$
Re stricted - - - - - -
Un restricted 1,031 626 405 (103) (130) 27
Total Net Position 1,857$ 1,520$ 337$ 292$ 269$ 23$
Cu rrent Assets as a percentage of current
liabilities 2054%1667%342%358%
Co mp ar ativ e Summa ry Statement of Net Position
as of Dec ember 31
(in $000's)
Solid Waste Dis posal Water and Sew er
Sanitation Golf Course
13
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2017
Revenues, Expenses, and Changes in Net Position
All enterprise funds show healthy results, with all funds reflecting increases in net position.
2017 2016 Ch ange 2017 2016 Ch ange
Operating Revenues 3,185$ 2,816$ 369$ 19,861$ 19,328$ 533$
Operating Expenses 2,320 2,312 8 14,721 13,982 739
Operating Income 865 504 361 5,140 5,346 (206)
No n-operating revenues (expenses)(20) (8) (12) (832) (764) (68)
Inc ome (Loss) before Transfers 845 496 349 4,308 4,582 (274)
Tr ansfers in (out)(540) (640) 100 (3,450) (2,450) (1,000)
Ch ange in Net Position 305 (144) 449 858 2,132 (1,274)
Ne t Pos ition January 1 5,932 6,067 (135) 79,838 77,649 2,189
Re statement - 9 (9) - 57 (57)
Ne t Pos ition January 1, restated 5,932 6,076 (144) 79,838 77,706 2,132
Ne t Pos ition December 31 6,237$ 5,932$ 305$ 80,696$ 79,838$ 858$
2017 2016 Ch ange 2017 2016 Ch ange
Operating Revenues 2,886$ 2,751$ 135$ 876$ 840$ 36$
Operating Expenses 2,178 2,092 86 852 788 64
Operating Income 708 659 49 24 52 (28)
No n-operating revenues (expenses)6 52 (46) - (4) 4
Inc ome (Loss) before Transfers 714 711 3 24 48 (24)
Tr ansfers in (out)(377) (492) 115 - - -
Ch ange in Net Position 337 219 118 24 48 (24)
Ne t Pos ition January 1 1,520 1,296 224 268 217 51
Re statement - 5 (5) - 3 (3)
Ne t Pos ition January 1, restated 1,520 1,301 219 268 220 48
Ne t Pos ition December 31 1,857$ 1,520$ 337$ 292$ 268$ 24$
Co mp arative Summa ry of Revenues, Expenses and Changes in Net Pos ition
for the Y ear Ended December 31
(In $000's)
Solid Waste Disposal Water and Sew er
Sanitation Golf Course
14
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2017
Budgetary Highlights
The objective of budgetary controls is to ensure compliance with legal provisions em bodied in the annual
appropriated budget approv ed by the City Commission. The legal level of budgetary control is maintained at the fund
level, in accordance with State Statutes. Management control is maintained at the departmental level. Within the
departments, considerable di scretion is permitted. The City uses an encumbrance accounting system, in which
estimated purchase orders are recorded prior to the release of purchase orders to vendors. Open purchase orders
are reported as reserv ations of budgetary basis fund balances at December 31, 2017. Formal budgetary
amendments are limited to those circumstances in which the need is perceiv ed to al ter the total fund budget. Re-
allocation among departments or line items are not typically recorded as budgetary amendments.
Howev er, in addition to formal amendments, departments within the City are allowed to transfer budget between line
items within a department. Budgets may al so be transferred from department to department within each fund. As a
result of these transfers, the original budget and the final budgets may not be the same for departments within a
fund.
Capital Assets and Debt Administration
Capital Assets
The total amount inv ested in Capital Assets for the City at December 31, 2017 was $297,905,515 net of accumulated
depreciation.
The following table illustrates the Capital Asset balance by various classes of assets at December 31, 2017 and
2016:
2017 2016 2017 2016 2017 2016
Equipment, Furniture and Fixtures 2,040$ 1,190$ 1,484$ 1,692$ 3,524$ 2,882$
Vehicles 3,521 3,148 1,041 1,161 4,562 4,309
Buildings and Improvements 33,079 24,857 9,362 9,783 42,441 34,640
Land 24,093 24,002 1,542 1,542 25,635 25,544
Infras tructure 114,958 113,114 75,727 60,879 190,685 173,993
Construction in Progress 28,909 30,811 2,150 15,728 31,059 46,539
Total 206,600$197,122$91,306$ 90,785$ 297,906$287,907$
Capital Asset Balances Net of Depreciation
as of December 31
(In 000's)
Governmental Activity Activity To tal
Changes to capital assets may be summarized as follows:
Governmental
Activity
Business -Ty pe
Activity Tot al
Additions 26,318$ 22,846$ 49,164$
Ret irement s (11,129) (18,014) (29,143)
Deprec iation (5,711) (4,311) (10,022)
Net Additions 9,478$ 521$ 9,999$
Changes to Capital Assets, 2017
(in 000's )
Additional information on the City’s capital assets can be found in Note 4,D. of the notes to the basic financial
statements.
15
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2017
Debt Management
The City’s general policy for general obl igation bonds is to issue them for no more than 10 years for the City at Large
portion, with some ex ceptions permitted for extraordinary projects. On special assessment bonds, the maturity may
extend to 15 years.
The outstanding general obligation bonds for gov ernmental activities at December 31, 2017 totaled $55,994,305. In
addition, there were temporary notes outstanding in the amount of $6,811,742, as well as a financing lease in the
amount of $157,868.
Business-type activities had $12,606,747 in rev enue bonds outstanding, as well as $6,520,433 in general obligation
bonds. Revenues generated by user fees are pledged to retire all of the bonds issued by business-type activities. In
addition, a loan payable is outstanding in the amount of $8,862,810.
The City engaged in the following debt transactions during 2017:
On July 21st, the City issued 2017A, $9,310,000 of improv em ent bonds. The proceeds were used to finance
construction of the Bicentennial Center, Country Club road, and fund preliminary design costs for the Smoky
Hill River Renewal.
On July 21st, the City issued $2,180,000 in temporary notes to finance construction of Downtown
Streetscape, Grand Prairie Addition Phase II and the Police Training Facility.This note will be refinanced into
a long term bond issue in August 2018.
Additional information on the City’s debt can be found in Note 4, E. of the notes to the basic financial statements.
Requests for Information
This financial report is intended to giv e the reader a general ov erview of the City’s finances. Questions about
information in this report or requests for additional information should be directed to the Director of Finance, Room
206, 300 West Ash Street, Salina, Kansas, 67401.
BASIC FINANCIAL STATEMENTS
Total Total Total Salina Salina
Governmental Business-type Primary Housing Airport
Activities Activities Government Authority Authority
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
Current assets:
Cash and investments 22,490,234$ 30,335,879$ 52,826,113$ 1,962,074$ 1,613,791$
Receivables (net of allowance for uncollectibles)
Accounts 1,791,556 1,902,943 3,694,499 18,369 266,634
Taxes 11,708,927 - 11,708,927 - -
Interest 16,726 16 16,742 - -
Inventory 318,107 435,252 753,359 30,763 -
Restricted cash and investments 2,001,589 - 2,001,589 146,622 -
Prepaid expenses - - - 39,652 8,838
Total current assets 38,327,139 32,674,090 71,001,229 2,197,480 1,889,263
Noncurrent assets:
Capital assets, nondepreciable
Construction in progress 28,909,568 2,149,789 31,059,357 148,719 3,010,444
Land 24,092,859 1,541,806 25,634,665 1,454,559 9,888,105
Capital assets, depreciable 269,325,527 151,065,494 420,391,021 8,299,346 72,676,151
Less: Accumulated depreciation 115,728,000 63,451,528 179,179,528 4,571,879 41,804,269
Total noncurrent assets 206,599,954 91,305,561 297,905,515 5,330,745 43,770,431
Total assets 244,927,093 123,979,651 368,906,744 7,528,225 45,659,694
Deferred outflows of resources:
Pension deferred outflows of resources 5,841,010 651,365 6,492,375 85,727 105,185
Deferred charge on bond issuance 127,336 236,123 363,459 - 1,391,470
Total deferred outflows of resources 5,968,346 887,488 6,855,834 85,727 1,496,655
Total assets and deferred outflows of resources 250,895,439$ 124,867,139$ 375,762,578$ 7,613,952$ 47,156,349$
Liabilities:
Current liabilities:
Accounts payable 1,764,815$ 588,035$ 2,352,850$ 38,686$ 158,295$
Retainage payable 604,811 10,681 615,492 - -
Accrued liabilities 572,832 - 572,832 37,118 92,466
Accrued interest payable 182,225 236,626 418,851 - 270,898
Deposits payable - 176,114 176,114 92,027 -
Current portion of compensated absences 1,499,345 344,215 1,843,560 3,176 -
Current portion of temporary notes payable 2,196,742 - 2,196,742 - -
Current portion of loans payable - 571,773 571,773 - -
Current portion of revenue bonds payable - 708,696 708,696 - -
Current portion of financing leases payable 157,868 - 157,868 - -
Current portion of special assessment debt payable - - - - 2,153
Current portion of general obligation bonds payable 5,561,280 1,242,407 6,803,687 - 1,220,000
Total current liabilities 12,539,918 3,878,547 16,418,465 171,007 1,743,812
Noncurrent liabilities:
Accrued liabilities 44,772 - 44,772 38,412 -
Compensated absences 1,298,613 298,132 1,596,745 28,576 -
Security deposits returnable - - - - 49,347
Net OPEB obligation 4,548,909 604,645 5,153,554 - -
Net pension liability 28,966,518 3,333,610 32,300,128 373,407 603,456
Temporary notes payable 4,615,000 - 4,615,000 - -
Loans payable 12,171,090 8,291,037 20,462,127 - -
Revenue bonds payable - 11,898,051 11,898,051 - -
Special assessment debt payable - - - - 7,054
General obligation bonds payable 50,433,025 5,278,026 55,711,051 - 22,787,515
Landfill post-closure care liabilities - 1,981,498 1,981,498 - -
Total noncurrent liabilities 102,077,927 31,684,999 133,762,926 440,395 23,447,372
Total liabilities 114,617,845 35,563,546 150,181,391 611,402 25,191,184
Deferred inflows of resources:
Unavailable revenue - property taxes 11,165,043 - 11,165,043 10,742 60,495
Pension deferred inflows of resources 1,411,701 220,777 1,632,478 15,329 96,486
Total deferred inflows of resources 12,576,744 220,777 12,797,521 26,071 156,981
Total liabilities and deferred inflows of resources 127,194,589$ 35,784,323$ 162,978,912$ 637,473$ 25,348,165$
Net Position
Net investment in capital assets 129,921,343$ 63,315,571$ 193,236,914$ 5,330,745$ 19,753,708$
Restricted for:
Permanent funds:
Expendable 501,693 - 501,693 14,718 -
Debt service 1,509,863 1,512,125 3,021,988 - -
Unrestricted [8,232,049] 24,255,120 16,023,071 1,631,016 2,054,476
Total net position 123,700,850$ 89,082,816$ 212,783,666$ 6,976,479$ 21,808,184$
Primary Government
CITY OF SALINA, KANSAS
STATEMENT OF NET POSITION
December 31, 2017
Component Units
The notes to the basic financial statements are an integral part of this statement.
16
Operating Capital Total Total Total Salina Salina
Charges for Grants and Grants and Governmental Business-type Primary Housing Airport
Expenses Services Contributions Contributions Activities Activities Government Authority Authority
Governmental activities:
General government 9,779,656$ 3,470,076$ 824,116$ -$ [5,485,464]$ -$ [5,485,464]$ -$ -$
Public safety 23,120,215 4,600,899 1,147,371 - [17,371,945] - [17,371,945] - -
Public works 10,345,513 347,672 1,934,805 - [8,063,036] - [8,063,036] - -
Public health and sanitation 1,126,249 49,966 277,255 - [799,028] - [799,028] - -
Culture and recreation 6,880,276 1,540,620 213,229 - [5,126,427] - [5,126,427] - -
Planning and development 1,834,917 91,013 144,615 - [1,599,289] - [1,599,289] - -
Interest on long-term debt 1,724,439 - - - [1,724,439] - [1,724,439] - -
Total governmental activities 54,811,265 10,100,246 4,541,391 - [40,169,628] - [40,169,628] - -
Business-type activities:
Solid Waste Disposal 2,364,863 3,164,761 - - - 799,898 799,898 - -
Water and Sewer 15,650,277 19,855,033 - - - 4,204,756 4,204,756 - -
Sanitation 2,177,632 2,884,526 - - - 706,894 706,894 - -
Golf Course 852,260 798,368 - - - [53,892] [53,892] - -
Total business-type activities 21,045,032 26,702,688 - - - 5,657,656 5,657,656 - -
Total primary government 75,856,297$ 36,802,934$4,541,391$ -$ [40,169,628] 5,657,656 [34,511,972] - -
Component units:
Salina Housing Authority 2,661,191$ 384,749$ 2,124,815$ 100,059$ - - - [51,568] -
Salina Airport Authority 5,474,912 2,213,300 - 1,280,204 - - - - [1,981,408]
Total component units 8,136,103$ 2,598,049$ 2,124,815$ 1,380,263$ - - - [51,568] [1,981,408]
General Revenues:
Property taxes levied for
General purposes 9,100,808 - 9,100,808 - 2,043,302
Debt service 2,486,666 - 2,486,666 - -
Motor vehicle tax
General purposes 1,372,532 - 1,372,532 - -
Sales tax
General purposes 12,906,032 - 12,906,032 - -
Selective purposes 8,832,312 - 8,832,312 - -
Other taxes
General purposes 6,899,586 - 6,899,586 - -
Investment revenues 92,820 129,144 221,964 8,835 974
Miscellaneous 2,002,864 103,082 2,105,946 5,497 22,081
Transfers, net 4,308,834 [4,366,500] [57,666] - -
Subtotal general revenues 48,002,454 [4,134,274] 43,868,180 14,332 2,066,357
Change in net position 7,832,826 1,523,382 9,356,208 [37,236] 84,949
Net position - beginning 115,868,024 87,559,434 203,427,458 7,013,715 21,723,235
Net position - ending 123,700,850$89,082,816$ 212,783,666$6,976,479$ 21,808,184$
Changes in Net Position
Component UnitsPrimary GovernmentProgram Revenues
CITY OF SALINA, KANSAS
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2017
Net [Expenses] Revenue and
The notes to the basic financial statements are an integral part of this statement.
17
Tourism
and Special Sales Tax
General Convention Gas Capital
ASSETS
Cash and investments 5,853,666$ 847$ 802,597$ 2,265,055$
Restricted cash - - - -
Receivables (net)
Accounts 1,257,980 476,551 - -
Taxes 8,864,737 - 322,888 -
Interest 16,726 - - -
Inventory 152,982 - - -
Due from other funds 27,854 - - -
Total assets 16,173,945$ 477,398$ 1,125,485$ 2,265,055$
LIABILITIES, DEFERRED INFLOW S OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable 600,386$ 263,937$ 43,187$ 17,775$
Retainage payable - - - 163,666
Due to other funds - - - -
Total liabilities 600,386 263,937 43,187 181,441
Deferred inflows of resources
Unavailable revenue - property taxes 8,691,050 - - -
Total deferred inflows of resources 8,691,050 - - -
Fund balance:
Nonspendable 152,982 - - -
Restricted - 213,461 1,072,347 -
Committed - - - 1,658,876
Assigned 214,010 - 9,951 424,738
Unassigned 6,515,517 - - -
Total fund balances 6,882,509 213,461 1,082,298 2,083,614
Total liabilities, deferred inflows of
resources and fund balances 16,173,945$ 477,398$ 1,125,485$ 2,265,055$
CITY OF SALINA, KANSAS
BALANCE SHEET
GOVERNMENTAL FUNDS
43100
Schilling Other Total
Capital Debt Capital SFH Governmental Governmental
Improvement Service Projects QalicB Funds Funds
3,024,578$ 1,462,554$ 1,483,544$ 6,896$ 4,540,664$ 19,440,401$
- - - 2,001,589 - 2,001,589
- - 54,161 123,914 2,864 1,915,470
- 2,521,302 - - - 11,708,927
- - - - - 16,726
- - - - - 152,982
- - 9,656 - - 37,510
3,024,578$ 3,983,856$ 1,547,361$ 2,132,399$ 4,543,528$ 35,273,605$
-$ -$ 560,602$ 58,284$ 162,754$ 1,706,925$
- - 91,642 349,503 - 604,811
- - - 9,656 27,854 37,510
- - 652,244 417,443 190,608 2,349,246
- 2,473,993 - - - 11,165,043
- 2,473,993 - - - 11,165,043
- - - - - 152,982
- 1,509,863 - - 1,395,051 4,190,722
2,817,807 - 895,117 1,714,956 2,985,723 10,072,479
206,771 - - - - 855,470
- - - - [27,854] 6,487,663
3,024,578 1,509,863 895,117 1,714,956 4,352,920 21,759,316
3,024,578$ 3,983,856$ 1,547,361$ 2,132,399$ 4,543,528$ 35,273,605$
18
The notes to the basic financial statements are an integral part of this statement.
Total Governmental Fund Balances 21,759,316$
Amounts reported for governmental activities in the
statement of net position are different because
Bond issuance costs are shown as current year expenditures in the funds.
Bond issuance costs 127,336
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the funds
The cost of capital assets is 322,143,628
Accumulated depreciation is 115,567,034 206,576,594
Pension contributions are reported an expense in the funds and as a
deferred outflow of resources in the governmental activities in the
statement of net position.5,809,770
Pension fundings are reported an a revenue in the funds and as a
deferred inflow of resources in the governmental activities in the
statement of net position.[1,400,363]
Certain intrafund transactions have been elimniated between the City's
primary funds and the QALICB blended component unit.[123,914]
An internal service fund is used by the City's management to charge the
costs of the worker's compensation program. The assets and liabilities
of the internal service fund are included with governmental activities.2,363,597
The following liabilities, including bonds payable, are not due and payable
in the current period and therefore are not reported as liabilities in the funds.
These liabilities at year end consist of:
Compensated absences 2,744,388
Net OPEB obligation 4,548,909
Net pension liability 28,800,959
Temporary notes payable 6,811,742
Bonds payable 55,994,305
Financing leases payable 157,868
Loans payable 12,171,090
Accrued interest on the bonds 182,225 [111,411,486]
Net Position of Governmental Activities 123,700,850$
CITY OF SALINA, KANSAS
RECONCILIATION OF THE TOTAL GOVERNMENTAL FUND BALANCE TO
NET POSITION OF GOVERNMENTAL ACTIVITIES
December 31, 2017
The notes to the basic financial statements are an integral part of this statement.
19
Tourism
and Special Sales Tax
General Convention Gas Capital
REVENUES:
Taxes
Real estate taxes 8,943,754$ -$ -$ -$
Delinquent taxes 157,054 - - -
Motor vehicle taxes 1,014,976 - - -
General sales taxes 12,906,032 - - -
Selective sales taxes - - - 8,251,546
Other taxes 5,215,264 1,684,322 - -
Intergovernmental 1,133,310 - 1,435,167 -
Special assessments - - - -
Licenses and permits - - - -
Charges for services 6,153,450 - - -
Investment revenue 3,336 480 2,777 13,381
Donations - - - -
Miscellaneous 1,709,491 - - -
Total revenues 37,236,667 1,684,802 1,437,944 8,264,927
EXPENDITURES:
Current
General government 5,423,241 - - -
Public safety 21,628,730 - - -
Public works 5,328,315 - 495,919 -
Public health and sanitation 749,656 - - -
Culture and recreation 4,424,221 - - -
Planning and development 752,825 930,916 - -
Miscellaneous - - - -
Capital outlay 896,026 - 831,852 5,280,012
Debt service
Principal retirement - - - -
Interest and other charges - - - -
Total expenditures 39,203,014 930,916 1,327,771 5,280,012
Excess [deficiency] of revenue and other sources
over [under] expenditures and other [uses][1,966,347] 753,886 110,173 2,984,915
OTHER FINANCING SOURCES [USES]
Issuance of bonds - - - -
Issuance of temporary notes - - - -
Bond premium - - - -
Transfers in 4,626,500 - 160,000 -
Transfers [out][810,000] [723,942] - [2,568,350]
Total other financing sources [uses]3,816,500 [723,942] 160,000 [2,568,350]
Net change in fund balance 1,850,153 29,944 270,173 416,565
Fund balance - Beginning of year 5,032,356 183,517 812,125 1,667,049
Fund balance - End of year 6,882,509$ 213,461$ 1,082,298$ 2,083,614$
CITY OF SALINA, KANSAS
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2017
Schilling Other Total
Capital Debt Capital SFH Governmental Governmental
Improvement Service Projects QalicB Funds Funds
-$ 2,433,770$ -$ -$ -$ 11,377,524$
- 52,896 - - - 209,950
- 357,556 - - - 1,372,532
- - - - - 12,906,032
- - - - 580,766 8,832,312
- - - - - 6,899,586
- - 494,337 - 1,473,276 4,536,090
- 1,538,904 - - - 1,538,904
- - - - 5,300 5,300
- - - 246,458 480,385 6,880,293
12,794 17,104 - 1,104 28,178 79,154
- - - - 110,606 110,606
- - 63,818 - 77,763 1,851,072
12,794 4,400,230 558,155 247,562 2,756,274 56,599,355
- - - - - 5,423,241
- - - - - 21,628,730
- - - - 223,912 6,048,146
- - - - 347,442 1,097,098
- - - - 1,718,877 6,143,098
- - - 31,081 86,832 1,801,654
- - - - 35 35
1,049,381 - 4,210,392 5,262,024 751,068 18,280,755
- 4,907,918 - - 180,000 5,087,918
- 1,490,423 139,036 50,486 90,935 1,770,880
1,049,381 6,398,341 4,349,428 5,343,591 3,399,101 67,281,555
[1,036,587] [1,998,111] [3,791,273] [5,096,029] [642,827] [10,682,200]
- 1,000 9,309,000 - - 9,310,000
- - 2,180,000 - - 2,180,000
- 16,751 78,361 - - 95,112
- 2,241,309 - - 1,310,983 8,338,792
- - [57,666] - - [4,159,958]
- 2,259,060 11,509,695 - 1,310,983 15,763,946
[1,036,587] 260,949 7,718,422 [5,096,029] 668,156 5,081,746
4,061,165 1,248,914 [6,823,305] 6,810,985 3,684,764 16,677,570
3,024,578$ 1,509,863$ 895,117$ 1,714,956$ 4,352,920$ 21,759,316$
The notes to the basic financial statements are an integral part of this statement.
20
Total Net Change In Fund Balances - Governmental Funds 5,081,746$
Amounts reported for governmental activities in the
statement of activities are different because
Capital outlays to purchase or build assets are reported in governmental funds
as expenditures. However, for governmental activities those costs are shown
in the statement of net position and allocated over their estimated useful lives
as annual depreciation expenses in the statement of activities. This is the
amount by which capital outlays exceeds depreciation in the period.
Gain/[Loss] on sale of assets [151,301]
Capital outlays 15,709,428
Depreciation expense [6,066,797] 9,491,330
Interest on long-term debt in the statement of activities differs from the amount
reported in the governmental funds because interest is recorded as an
expenditure in the funds when it is due, and thus requires the use of current
financial resources. In the statement of activities, however, interest expense
is recognized as the interest accrues, regardless of when it is due. This is
the amount by which interest decreased.46,441
An internal service fund is used by the city's management to charge the
costs of certain activities to the individual funds. The revenues and expenses
of certain internal service fund is reported with governmental activities.285,664
Certain intrafund transactions have been eliminated between the City's
primary funds and the QALICB blended component unit.[123,914]
Some expenses reported in the statement of activities, such as compensated
absences and other post employment benefits, do not require the use of current
financial resources and therefore are not reported as expenditures in
governmental funds.30,943
Pension payments are reported as expenditures in the governmental funds and
do not affect the statement of net activities.[723,482]
Bond, temporary note, loan and lease proceeds are other financing sources in the
governmental funds, but they increase long-term liabilities in the statement of net
position and do not affect the statement of activities. Also, governmental funds
report the effect of issuance costs, premiums, discounts, and similar items when
debt is first issued, whereas these amounts are deferred and amortized in the
statement of activities. This amount is the net effect of these differences in the
treatment of long-term debt and related items.[11,476,527]
Repayment of bond principal and bond issuance costs is an expenditure
in the governmental funds, but it reduces long-term liabilities in the statement
of net position and does not affect the statement of activities.5,220,625
Changes In Net Position of Governmental Activities 7,832,826$
CITY OF SALINA, KANSAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE WITH THE GOVERNMENT-W IDE STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2017
The notes to the basic financial statements are an integral part of this statement.
21
CITY OF SALINA, KANSAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
GENERAL FUND
For the Year Ended December 31, 2017
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Taxes
Real estate taxes 8,943,754$ 9,075,239$ 9,075,239$ [131,485]$
Delinquent taxes 157,054 125,000 125,000 32,054
Motor vehicle taxes 1,016,439 991,987 991,987 24,452
General sales tax 12,906,032 12,805,000 12,805,000 101,032
Other taxes 5,215,264 6,804,632 6,804,632 [1,589,368]
Intergovernmental 1,133,310 1,145,000 1,145,000 [11,690]
Charges for services 5,481,314 6,025,327 6,025,327 [544,013]
Investment revenue 11,540 - - 11,540
Miscellaneous 1,709,490 183,739 183,739 1,525,751
Total revenues 36,574,197 37,155,924 37,155,924 [581,727]
Expenditures
General government 4,967,756 3,405,885 3,405,885 [1,561,871]
Public safety 21,750,244 20,726,693 20,726,693 [1,023,551]
Public works 5,337,833 5,790,152 5,790,152 452,319
Public health and sanitation 749,656 - - [749,656]
Culture and recreation 4,426,706 5,283,377 5,283,377 856,671
Planning and development 752,825 2,213,740 2,213,740 1,460,915
Capital outlay 951,921 4,259,262 4,259,262 3,307,341
Total expenditures 38,936,941 41,679,109 41,679,109 2,742,168
Excess [deficiency] of revenues
over [under] expenditures [2,362,744] [4,523,185] [4,523,185] 2,160,441
Other financing sources [uses]
Transfers in 4,626,500 4,675,089 4,675,089 [48,589]
Transfers [out][810,000] [3,661,132] [3,661,132] 2,851,132
Total other financing sources [uses]3,816,500 1,013,957 1,013,957 2,802,543
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]1,453,756 [3,509,228] [3,509,228] 4,962,984
Unreserved fund balance, January 1 3,509,762 3,509,228 3,509,228 534
Prior year cancelled encumbrances 103,606 - - 103,606
Unreserved fund balance, December 31 5,067,124 -$ -$ 5,067,124$
Reconciliation to GAAP
Interest receivable 16,726
Accounts receivable 1,257,980
Taxes receivable 8,864,737
Inventory 152,982
Deferred revenue [8,691,050]
Current year encumbrances 214,010
GAAP Fund Balance, December 31 6,882,509$
Budgeted Amounts
See independent auditor's report on the financial statements.
22
CITY OF SALINA, KANSAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
TOURISM AND CONVENTION FUND
For the Year Ended December 31, 2017
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Other taxes 1,616,808$ 1,608,000$ 1,658,000$ [41,192]$
Investment revenue 480 - - 480
Total revenues 1,617,288 1,608,000 1,658,000 [40,712]
Expenditures
Planning and development 930,916 893,000 893,000 [37,916]
Total expenditures 930,916 893,000 893,000 [37,916]
Excess [deficiency] of revenues
over [under] expenditures 686,372 715,000 765,000 [78,628]
Other financing sources [uses]
Transfers [out][723,942] [683,800] [733,800] 9,858
Total other financing sources [uses][723,942] [683,800] [733,800] 9,858
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses][37,570] 31,200 31,200 [68,770]
Unreserved fund balance, January 1 [225,520] 80,343 368 [225,888]
Unreserved fund balance, December 31 [263,090] 111,543$ 31,568$ [294,658]$
Reconciliation to GAAP
Accounts receivable 476,551
GAAP Fund Balance, December 31 213,461$
Budgeted Amounts
See independent auditor's report on the financial statements.
23
CITY OF SALINA, KANSAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
SPECIAL GAS FUND
For the Year Ended December 31, 2017
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Intergovernmental 1,435,031$ 1,370,400$ 1,370,400$ 64,631$
Investment revenue 2,777 6,000 6,000 [3,223]
Total revenues 1,437,808 1,376,400 1,376,400 61,408
Expenditures
Public works 495,919 569,915 569,915 73,996
Capital outlay 745,820 946,243 946,243 200,423
Total expenditures 1,241,739 1,516,158 1,516,158 274,419
Excess [deficiency] of revenues
over [under] expenditures 196,069 [139,758] [139,758] 335,827
Other financing sources [uses]
Transfers in 160,000 160,000 160,000 -
Total other financing sources [uses]160,000 160,000 160,000 -
Excess [deficiency] of revenues
and other sources over [under]356,069 20,242 20,242 335,827
expenditures and other [uses]
Unreserved fund balance, January 1 387,919 669,880 669,880 [281,961]
Prior year cancelled encumbrances 5,471 - - 5,471
Unreserved fund balance, December 31 749,459 690,122$ 690,122$ 59,337$
Reconciliation to GAAP
Taxes receivable 322,888
Current year encumbrances 9,951
GAAP Fund Balance, December 31 1,082,298$
Budgeted Amounts
See independent auditor's report on the financial statements.
24
CITY OF SALINA, KANSAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
SALES TAX CAPITAL FUND
For the Year Ended December 31, 2017
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Taxes
Selective sales taxes 8,251,546$ 8,043,656$ 8,269,993$ [18,447]$
Investment revenue 13,381 5,000 5,000 8,381
Total revenues 8,264,927 8,048,656 8,274,993 [10,066]
Expenditures
Capital outlay 5,270,351 4,620,500 6,470,500 1,200,149
Total expenditures 5,270,351 4,620,500 6,470,500 1,200,149
Excess [deficiency] of revenues
over [under] expenditures 2,994,576 3,428,156 1,804,493 1,190,083
Other financing sources [uses]
Transfers [out][2,568,350] [3,750,000] [2,500,000] [68,350]
Total other financing sources [uses][2,568,350] [3,750,000] [2,500,000] [68,350]
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]426,226 [321,844] [695,507] 1,121,733
Unreserved fund balance, January 1 1,056,648 785,304 1,797,359 [740,711]
Prior year cancelled encumbrances 176,002 - - 176,002
Unreserved fund balance, December 31 1,658,876 463,460$ 1,101,852$ 557,024$
Reconciliation to GAAP
Current year encumbrances 424,738
GAAP Fund Balance, December 31 2,083,614$
Budgeted Amounts
See independent auditor's report on the financial statements.
25
Total Internal
Solid W aste Water and Enterprise Service
Assets and deferred outflows of resources:Disposal Sewer Sanitation Golf Course Funds Funds
Current assets:
Cash and investments 6,515,002$ 22,115,048$ 1,568,556$137,273$ 30,335,879$ 3,049,833$
Receivables (net of allowance for uncollectibles)
Accounts 194,086 1,490,712 218,145 - 1,902,943 -
Interest 16 - - - 16 -
Inventory and prepaid supplies - 408,562 - 26,690 435,252 165,125
Total current assets 6,709,104 24,014,322 1,786,701 163,963 32,674,090 3,214,958
Capital assets:
Nondepreciable capital assets:
Construction in progress - 2,149,789 - - 2,149,789 -
Land 682,000 844,806 - 15,000 1,541,806 -
Depreciable capital assets:
Capital assets 11,312,996 136,213,033 2,377,725 1,161,740 151,065,494 184,326
Less: accumulated depreciation 8,798,898 52,319,351 1,551,983 781,296 63,451,528 160,966
Total capital assets 3,196,098 86,888,277 825,742 395,444 91,305,561 23,360
Total assets 9,905,202 110,902,599 2,612,443 559,407 123,979,651 3,238,318
Deferred outflows of resources:
Pension deferred outflows of resources 78,469 439,410 102,050 31,436 651,365 31,240
Deferred charge on bond issuance - 236,123 - - 236,123 -
Total deferred outflows of resources 78,469 675,533 102,050 31,436 887,488 31,240
Total assets and deferred outflows of resources 9,983,671$ 111,578,132$ 2,714,493$590,843$ 124,867,139$ 3,269,558$
Liabilities and deferred inflows of resources:
Current liabilities
Accounts payable 24,885$ 535,111$ 18,675$ 9,364$ 588,035$ 57,890$
Retainage payable - 10,681 - - 10,681 -
Interest payable 10,937 225,689 - - 236,626 -
Meter deposits payable - 176,114 - - 176,114 -
Current portion of compensated absences payable 33,697 203,412 68,558 38,548 344,215 28,707
Current portion of accrued claims payable - - - - - 572,832
Current portion of loans payable - 571,773 - - 571,773 -
Current portion of general obligation bonds payable 375,000 867,407 - - 1,242,407 -
Current portion of revenue bonds payable - 708,696 - - 708,696 -
Total current liabilities 444,519 3,298,883 87,233 47,912 3,878,547 659,429
Noncurrent liabilities:
Compensated absences payable 29,185 176,179 59,381 33,387 298,132 24,863
Accrued claims payable - - - - - 44,772
Net OPEB Obligation 78,890 374,881 116,258 34,616 604,645 -
Net pension liability 402,327 2,202,239 557,424 171,620 3,333,610 165,559
Payable from restricted assets
Loans payable - 8,291,037 - - 8,291,037 -
General obligation bonds payable 780,000 4,498,026 - - 5,278,026 -
Revenue bonds payable - 11,898,051 - - 11,898,051 -
Landfill post-closure care liabilities 1,981,498 - - - 1,981,498 -
Total noncurrent liabilities 3,271,900 27,440,413 733,063 239,623 31,684,999 235,194
Total liabilities 3,716,419 30,739,296 820,296 287,535 35,563,546 894,623
Deferred inflows of resources
Pension deferred inflows of resources 30,040 141,970 37,644 11,123 220,777 11,338
Total deferred inflows of resources 30,040 141,970 37,644 11,123 220,777 11,338
Total liabilities and deferred inflows of resources 3,746,459$ 30,881,266$ 857,940$ 298,658$ 35,784,323$ 905,961$
Net position
Net investment in capital assets 2,041,098$ 60,053,287$ 825,742$ 395,444$ 63,315,571$ 23,360$
Restricted
Restricted for bond retirement - 1,512,125 - - 1,512,125 -
Unrestricted 4,196,114 19,131,454 1,030,811 [103,259] 24,255,120 2,340,237
Total net position 6,237,212$ 80,696,866$ 1,856,553$292,185$ 89,082,816$ 2,363,597$
Business-Type Activities:
Enterprise Funds
CITY OF SALINA, KANSAS
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2017
The notes to the basic financial statements are an integral part of this statement.
26
Total Internal
Solid W aste Water and Enterprise Service
Disposal Sewer Sanitation Golf Course Funds Funds
Operating revenues
Charges for services 3,164,761$19,855,033$2,884,526$798,368$ 26,702,688$8,323,935$
Miscellaneous 20,552 5,522 - 77,008 103,082 41,186
Total operating revenues 3,185,313 19,860,555 2,884,526 875,376 26,805,770 8,365,121
Operating expenses
General government - - - - - 8,209,819
Public works 1,469,858 11,398,035 2,024,390 - 14,892,283 -
Recreation - - - 820,627 820,627 -
Depreciation 850,548 3,322,113 153,242 31,633 4,357,536 9,260
Total operating expenses 2,320,406 14,720,148 2,177,632 852,260 20,070,446 8,219,079
Operating income [loss]864,907 5,140,407 706,894 23,116 6,735,324 146,042
Nonoperating revenues [expenses]
Investment revenue 24,658 98,307 5,793 386 129,144 13,666
Interest expense [44,457] [923,217] - - [967,674] -
Gain/[loss] on disposal of fixed assets - - - - - [4,044]
Accretion of bond premium - 11,560 - - 11,560 -
Amortization of bond issuance costs - [18,472] - - [18,472] -
Total nonoperating revenues [expenses][19,799] [831,822] 5,793 386 [845,442] 9,622
Income [loss] before transfers 845,108 4,308,585 712,687 23,502 5,889,882 155,664
Transfers from [to] other funds
Transfers in - - - - - 130,000
Transfers [out][540,000] [3,450,000] [376,500] - [4,366,500] -
Total transfers [540,000] [3,450,000] [376,500] - [4,366,500] 130,000
Change in net position 305,108 858,585 336,187 23,502 1,523,382 285,664
Net position, January 1 5,932,104 79,838,281 1,520,366 268,683 87,559,434 2,077,933
Net position, December 31 6,237,212$80,696,866$1,856,553$292,185$ 89,082,816$2,363,597$
Business-Type Activities:
Enterprise Funds
CITY OF SALINA, KANSAS
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
For the Year Ended December 31, 2017
The notes to the basic financial statements are an integral part of this statement.
27
Total Internal
Solid Waste Water and Enterprise Service
Disposal Sewer Sanitation Golf Course Funds Funds
Cash flows from operating activities
Cash received from customers and users 3,160,158$19,691,753$2,856,083$798,368$ 26,506,362$8,392,053$
Cash paid to suppliers of goods or services [828,507] [7,171,517] [1,101,055][400,392] [9,501,471] [7,875,819]
Cash paid to employees [607,960] [3,976,523] [791,564] [423,329] [5,799,376] [275,772]
Other operating receipts 20,552 5,522 - 77,008 103,082 41,185
Net cash provided by [used in] operating activities 1,744,243 8,549,235 963,464 51,655 11,308,597 281,647
Cash flows from capital and related financing activities
Purchase and construction of capital assets - [4,719,132] [84,953] [27,642] [4,831,727] -
Proceeds from sale of capital assets - [47,023] - - [47,023] -
Proceeds from loans - 2,116,375 - - 2,116,375 -
Principal payments - loans - [685,589] - - [685,589] -
Principal payments - general obligation bonds [365,000] [747,082] - - [1,112,082] -
Principal payments - revenue bonds - [675,000] - - [675,000] -
Interest paid [45,118] [960,485] - - [1,005,603] -
Net cash provided by [used in] capital
and related financing activities [410,118] [5,717,936] [84,953] [27,642] [6,240,649] -
Cash flows from investing activities
Interest received 24,658 98,307 5,793 386 129,144 13,666
Cash flows from noncapital financing activities
Transfers in - - - - - 130,000
Transfers [out][540,000] [3,450,000] [376,500] - [4,366,500] -
Net cash provided by [used in] noncapital financing activities [540,000] [3,450,000] [376,500] - [4,366,500] 130,000
Net increase [decrease] in cash and cash equivalents 818,783 [520,394] 507,804 24,399 830,592 425,313
Cash and cash equivalents, January 1 5,696,219 22,635,442 1,060,752 112,874 29,505,287 2,624,520
Cash and cash equivalents, December 31 6,515,002$22,115,048$1,568,556$137,273$ 30,335,879$3,049,833$
Business-Type Activities:
Enterprise Funds
CITY OF SALINA, KANSAS
STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2017
PROPRIETARY FUNDS
The notes to the basic financial statements are an integral part of this statement.
28
Total Internal
Solid Waste Water and Enterprise Service
Disposal Sewer Sanitation Golf Course Funds Funds
Reconciliation of operating [loss] income to net cash
provided by [used in] operating activities
Operating income [loss]864,907$ 5,140,407$ 706,894$23,116$ 6,735,324$ 146,042$
Adjustments to reconcile operating income [loss] to
net cash provided by [used in] operating activities
Depreciation expense 850,548 3,322,113 153,242 31,633 4,357,536 9,260
[Increase] decrease in accounts receivable [4,603] [160,456] [28,443] - [193,502] -
[Increase] decrease in inventory - 71,210 - [3,706] 67,504 24,761
[Increase] decrease in deferred outflows [5,914] [19,295] [2,089] [287] [27,585] [1,162]
Increase [decrease] in accounts payable 1,701 433,569 4,827 6,743 446,840 20,018
Increase [decrease] in retainage payable - [282,912] - - [282,912] -
Increase [decrease] in accrued compensated absences [16,221] [27,819] 11,794 4,467 [27,779] 14,065
Increase [decrease] in claims payable - - - - - 68,117
Increase [decrease] in landfill postclosure liabilities 63,649 - - - 63,649 -
Increase [decrease] in net pension liability [1,191] [3,883] [421] [58] [5,553] [234]
Increase [decrease] in net OBEB obligation [12,601] 66,180 116,258 [10,445] 159,392 -
Increase [decrease] in meter deposits payable - [2,824] - - [2,824] -
Increase [decrease] in deferred inflows 3,968 12,945 1,402 192 18,507 780
Net cash provided by [used in] operating activities 1,744,243$ 8,549,235$ 963,464$51,655$ 11,308,597$281,647$
Business-Type Activities:
Enterprise Funds
CITY OF SALINA, KANSAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS (Continued)
For the Year Ended December 31, 2017
The notes to the basic financial statements are an integral part of this statement.
29
ASSETS
Cash and investments 389,555$
Total assets 389,555$
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable 389,555$
Total liabilities 389,555$
December 31, 2017
CITY OF SALINA, KANSAS
STATEMENT OF ASSETS AND LIABILITIES
AGENCY FUNDS
The notes to the basic financial statements are an integral part of this statement.
30
31
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A.Reporting Entity
The City of Salina, Kansas (the City) is a municipal corporation gov erned by a mayor as part of a five-
member commission. These financial statements present the City and its component units, entities for which
the gov ernment is considered to be financially accountable. Each di scretely presented component unit is
reported in a separate column in the gov ernment wide statements (see note below for descriptions)to
em phasize that it is legally separated from the gov ernment.The bl ended component unit is reported as a
governmental fund of the City (see note below for description) to emphasize that it is a part of the city.
Discretely Presented Component Units
City of Salina Airport Authority -The Salina Airport Authority was created for the purpose of accepting as
surplus property portions of the former Schilling A.F.B that was closed by the United States Department of
Defense in June 1965. One of the primary functions of the Airport Authority is to facilitate the continued
growth of jobs and payroll at the Airport Industrial Center. The Airport Authority is managed and controlled by
a five-member Board of Directors appointed by the Salina City Commission. Any director may be removed
by a majority vote of the Salina City Commission. The Airport Authority’s basic mill levy (up to 3 mills)
requires the approval of the City Commission. The Commission must al so approve the issuance of general
obligation debt by the Airport Authority. The Airport Authority has a December 31 fiscal year end.
Housing Authority of the City of Salina -The purpose of the Housing Authority of the City of Salina (Housing
Authority) is to administer Public Housing Programs authorized by the United States Housing Act of 1937.
The Mayor of the City of Salina appoints the gov erning board. The City Commission may remove
commissioners of the Housing Authority. The City must issue revenue bonds for the Housing Authority. The
financial liability of the Housing Authority is essentially supported by the operating and debt service subsidies
received under contract from the Federal government. The Housing Authority has a June 30 fiscal year end.
Information in the accompanying financial statements covers the fiscal year ended June 30, 2017.
Blended Component Unit
Salina Field House Qualified Active Low-Income Community Business, Inc.(SFH QalicB)-SFH QalicB was
created to function as a qualified low-income community business, as defined in Section 45D(d)(2) of the
Internal Revenue Code of 1986 for the purpose of providing an indoor sports facility in the downtown corridor
of the city of Salina. The purpose of the facility is to cater to local residents as well as host regional sports
tournaments with the anticipation of becoming a regional destination for youth athletics. Thi s mix of
participation is ex pected to provide the most consistent visitation and tourism for the downtown di strict. The
SFH QalicB is managed and controlled by a five-member Board of Directors appointed by the Salina City
Commission. The field house is st affed by City of Salina employees. SFH QalicB has a December 31 fiscal
year end.SFH QalicB is a not-for-profit organization exempt from income tax under Section 50l(c)(3)of the
Internal Revenue Code and is exempt from similar state and local taxes.
Complete financial statements for each of the individual component units may be obtained at the entity’s
administrative offices.
Salina Airport Authority Housing Authority of Salina Field House
3237 Arnold Ave.the City of Salina QALICB, Inc.
Salina, KS 469 S. 5th 300 W. Ast St.
Salina, KS Salina, KS
Joint Ventures
The City of Salina al so participates with Saline County in one joint venture. The City and County organized
the Salina County-City Building Authority to acquire, operate and maintain facilities for the administrative
offices of both gov ernments. The primary gov ernments each have an ongoing financial responsibility for the
joint venture. Separate financial statements are available from the governing board of the joint venture.
32
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
A.Reporting Entity (Continued)
Joint Ventures (Continued)
(Kansas Regulatory Basis)
Building
Authority
(Audited)
Total unencumbered cash, December 31, 2017 1,173,041$
Total change in unencumbered cash, year ended December 31, 2017 22,690
Total cash receipts, year ended December 31, 2017 1,431,170
Total cash receipts from City of Salina 440,883
Complete financial statements for the joint venture may be obtained at the entity’s administrative office.
Salina County-City
Building Authority
300 West Ash Street
Salina, KS
B.Government-wi de and fund financial statements
The st atement of net position and the statement of activities report information on all of the nonfiduciary
activities of the primary government and its component units. For the most part, the effect of interfund activity
has been removed from these st atements. Exceptions to this general rule are charges between the City’s
governmental and business-type activities. Elimination of these charges would di st ort the direct costs and
program revenues reported for the various functions concerned. Governmental activities, which normally are
supported by taxes and intergovernmental revenues, are reported separately from business-type activ ities,
which rely to a significant extent on fees and charges for support. Likewise, the primary gov ernment is
reported separately from certain legally separate component units for whi ch the primary gov ernment is
financially accountable.
The st atement of activities demonstrates the degree to whi ch the direct expenses of a giv en function are
offset by program revenues. Direct expenses are those that are specifically associated with a serv ice,
program or department and therefore clearly identifiable to a particular function. Program revenues include
charges paid by the recipient of the goods or serv ices offered by the program and grants and contributions
that are restricted to meeting the operational requirements of a particular program. Tax es and other items,
which are not classified as program revenues,are presented as general revenues of the city.
Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds,
ev en though the latter are excluded from the gov ernment-wide financial statements. Maj or individual funds
are reported as separate columns in the fund financial statements. Nonmajor funds are aggregated and
presented in a single column in the fund financial statements.
C.Measurement Focus, Basis of Accounting and Basis of Presentation
The gov ernment-wide financial st atements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund. Revenues are recorded when earned and
ex penses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property
taxes are recognized as revenues in the year for which they are levied. Grants and similar items are
recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
33
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C.Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Rev enues are recognized as soon as they are both
measurable and av ailable. Rev enues are considered to be av ailable when they are collectible wi thin the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City
considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.
Ex penditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt
service expenditures, as well as ex penditures related to certain compensated absences and claims and
judgments are recognized when the obligations are expected to be liquidated with ex pendable av ailable
financial resources.
Property taxes and interest associated with the current fiscal period are all considered to be susceptible to
accrual and so hav e been recognized as revenues of the current fiscal period. Entitlements and shared
revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria are met.
Ex penditure-driven grants are recognized as revenue when the qualifying expenditures hav e been incurred
and all other grant requirements have been met.
Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in net
position. Proprietary funds di stinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing goods and serv ices in connection with a
proprietary fund’s ongoing operations. The principal operating revenues of the City’s proprietary funds are
charges to customers for sales and services. Operating expenses for enterprise funds and internal serv ice
funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All
revenue and expenses not meeting this definition are reported as nonoperating revenues and expenses.
The internal serv ice funds account for risk management, worker’s compensation, health insurance, central
garage and information services that are provided to other departments or agencies of the government, or to
other governments, on a cost-reimbursement basis.
Agency funds are custodial in nature and do not measure results of operations or hav e a measurement
focus. Agency funds do however use the accrual basis of accounting.Agency funds are used to account for
assets held as an agent for individuals, other governmental units, private organizations and/or other funds.
The City reports the following major governmental funds:
General fund -To account for resources traditionally associated with gov ernment, whi ch are not required
legally,or by sound financial management to be accounted for in another fund.
Tourism and convention fund -To account for transient guest tax revenues, which are specifically restricted
to promotion and tourism activities.
Special gas fund -To account for the City's share of motor fuel tax revenues, which are legally restricted to
the maintenance,or improvement of streets within the City.
Sales tax capital fund -To account for 93% of the .40 cent sales tax designated for capital, debt, and human
services purposes.
Schilling capital improvement fund -To account for the funding prov ided by U.S. Gov ernment and Public
Entities and the remedial investigation, feasibility st udy and expenditures necessary to abate groundwater
contamination beneath the property formerly identified as Schilling Air Force Base.
34
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C.Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
Debt serv ice fund -To account for the accumulation of resources and payment of general obligation bond
principal and interest from governmental resources and special assessment bond principal and interest from
special assessment levies when the City is obligated in some manner for the payment.
Capital projects fund -To account for the acquisition and construction of major capital facilities other than
those financed by proprietary funds and trust funds.
SFH QalicB fund -To account for the activ ities of Salina Field House Qualified Active Low-Income
Community Business, Inc. as a component unit blended into the financial statements.
The City reports the following major proprietary funds:
Sanitation fund -To account for the operations of the City's refuse collection service.
Solid waste di sposal fund -To account for the activities of the City's landfill.
Golf course fund -To account for the operations of the municipal golf course.
Water and sewer fund -To account for the activities of the City's water and sewer operations.
D. Assets, Liabilities, Fund Balance, and Net Position
1. Pooled cash and investments
The City maintains a cash and investment pool that is available for use by all funds managed by the city.
Each fund type’s portion of this pool is displayed in the financial statements as “Cash and Investments.” The
city’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 the date of acquisition. Investments in the
Kansas Municipal Pool are carried at fair value.
Cash balances from all funds are invested to the extent av ailable in certificates of deposit and other
authorized investments. Inv estments with maturity dates greater than three months are stated separately.
Earnings from these investments, unless specifically designated, are allocated monthly to the investing fund
based on the percentage of funds invested to total investments. All investments are carried at fair value.
2. Receivables and Payables
Transactions between funds that are representative of lending/borrowing arrangements outstanding at the
end of the year are referred to as either “interfund receivables/payables” (i.e., the current portion of interfund
loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other
outstanding balances between funds are reported as “due to/from other funds.”
Accounts Receivable. The City records rev enues when services are provided. All receivables are shown net
of an allowance for doubtful accounts.
Property taxes receivable. Collection of current year property tax by the County Treasurer is not completed,
apportioned or di st ributed to the various subdivisions until the succeeding year, such procedure being in
conformity with gov erning state statutes. Consequently, current year property taxes receivable are not
av ailable as a resource that can be used to finance the current year operations of the City and, therefore, are
not susceptible to accrual. Accruals of uncollected current year property taxes are offset by deferred revenue
and are identical to the adopted budget for 2018. It is not practicable to apportion delinquent taxes held by
the County Treasurer at the end of the accounting period, and further, the amounts thereof are not material in
relationship to the financial statements taken as a whole.
35
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities and Equity (Continued)
2. Receivables and Payables (Continued)
The determination of assessed valuations and the collection of property taxes for all political subdivisions in
the State of Kansas are the responsibility of the various counties. The County Appraiser annually determines
assessed valuations on January 1 and the County Clerk spreads the annual assessment on the tax rolls. The
County Treasurer is the tax collection agent for all taxing entities wi thin the County. In accordance with st ate
statutes, property taxes levied during the current year are a revenue source to be used to finance the budget
of the ensuing year. Property tax es are levied and liens against property are pl aced on November 1 of the
year prior to the fiscal year for whi ch they are budgeted. Payments are due November 1, becoming
delinquent, with penalty, December 21. Payments of 50% are accepted through December 20, with the
second 50% then being due on or before May 10 of the following year. This procedure eliminates the need
to issue tax anticipation notes since funds will be on hand prior to the beginning of each fiscal year. The City
Treasurer draws down all av ailable funds from the County Treasurer’s office in two-month intervals. Taxes
remaining due and unpaid at February 15 and July 1 are subject to collection procedures prescribed in st ate
statutes.
3. Inventories and Prepaid Items
Inventories are valued at cost using the first-in/first-out (FIFO) method. The costs of governmental fund-type
inventories are recorded as expenditures when consumed.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items.
4.Capital Assets
Capital assets, whi ch include property, pl ant, equipment and infrastructure assets, are reported in the
applicable gov ernmental or business-type activ ities columns in the government-wi de financial statements.
Capital assets are defined by the gov ernment as assets with an initial, individual cost of more than $5,000
and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated
historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market
value at the date of donation. Capital assets used in gov ernmental fund types of the City are recorded at
cost or estimated hi storical cost if purchased or constructed. Donated capital assets are recorded at their
estimated fair value at the date of donation.
The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend
assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business-type is included in the capitalized value
of the asset constructed, net of interest earned on the invested proceeds over the same period.
Property, plant and equipment of the primary gov ernment, are depreciated using the straight-line method
ov er the following estimated useful lives:
Assets Years
Buildings 50
Other equipment 5 -15
Vehicles 6 -10
Infrastructure 30 -50
36
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D.Assets, Liabilities, Fund Balance, and Net Position (Continued)
5. Compensated Absences
It is the City’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits.
All employees of the City, except temporary and part time employees, may accumulate sick leave at a rate of
8 or 11 hours per month depending on their work duty schedule. There is no limit on the amount of sick
leav e that can be accumulated. Employees with more than five years of serv ice with the City are paid for
one-third of their accumulated sick leave at their current wage scale upon termination of employment in good
standing. In 2001, a limited buy back policy was instituted.
All regular em ployees are entitled to paid vacation time. Such leave is granted each year of employment.
Employees must use 50% of leave accrued each calendar year and an employee's maximum accrued
vacation leave balance cannot exceed 250 hours (or 350 hours for employees working 24 hour shifts).
Employees are paid for all accumulated vacation leave at their current wage scale upon termination of
em ployment.
Vested or accumulated vacation leave that is expected to be liquidated with expendable av ailable financial
resources is reported as an expenditure and a fund liability in the gov ernment fund financial st atements that
will pay it. A liability for these amounts is reported in gov ernmental funds onl y if they hav e matured, for
ex ample, as a result of employee resignations and retirements. Vested or accumulated vacation leave of the
business-type funds and gov ernment wide financial st atements are recorded as an expense and liability of
those funds as the benefits accrue to employees. A liability is recorded for accumulated rights to receive sick
pay benefits that are payable upon termination of employment.
The General Fund, Bicentennial Center Fund, Central Garage Fund, Sanitation Fund, Solid Waste Fund,
Golf Course Fund, and Water and Sewer Fund have been used in prior years to liquidate the liability for
compensated absences.
6.Temporary Notes
Upon authorization for the issuance of general obligation bonds for certain improvements, Kansas law
permits the temporary financing of such improvements by the issuance of temporary notes. Temporary
notes issued may not exceed the aggregate amount of bonds authorized, are interest bearing and hav e a
maturity date not later than four years from the date of issuance of such temporary notes. Temporary notes
outstanding are retired from the proceeds of the sale of general obligation bonds.
7. Long-term Obligations
In the gov ernment-wide financial statements, and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and
discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective
interest method. Bonds payable are reported net of the applicable bond premium or di scount. Bond
issuance costs are reported as deferred charges and amortized over the term of the related debt.
In the fund financial st atements, gov ernmental fund types recognize bond premiums and di scounts, as well
as issuance costs, during the current period. The face amount of debt issued is reported as other financing
sources. Premiums received on debt issuances are reported as other financing sources while di scounts on
debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual
debt proceeds received, are reported as debt service expenditures.
37
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D.Assets, Liabilities, Fund Balance, and Net Position (Continued)
8. Fund Balances
In the fund financial statements, gov ernmental funds report fund bal ance in the following classifications:
nonspendable, restricted, committed, assigned and unassigned.Nonspendable fund balance includes
am ounts that cannot be spent because they are either not in spendable form or legally or contractually
required to be maintained intact. Restricted fund balance indi cates that constraints hav e been placed on the
use of resources either by being externally imposed by creditors, grantors, contributors, or laws or regulations
of other gov ernments or imposed by law through constitutional prov isions or enabling legislation. Committed
fund bal ances include amounts that can only be used for specific purposes pursuant to constraints imposed
by formal action of the city commission. Assigned fund balances include amounts that are constrained by the
City management’s intent to be used for specific purposes, but are neither restricted nor committed.
Unassigned fund balance represents fund bal ance that has not been assigned to other funds and that has
not been restricted, committed, or assigned to specific purposes within the General Fund. When an
ex penditure is incurred for purposes for whi ch both restricted and unrestricted fund balance is av ailable
restricted amounts are considered to be spent first.When an ex penditure is incurred for purposes for whi ch
committed, assigned, or unassigned fund balance is av ailable, the following is the order in which resources
will be expended: committed, assigned and unassigned.
The following is the detail for fund balance classifications in the financial statements:
Tourism Schilling Other Total
and Special Sales Tax Capital Debt Capital SFH Governmental Governmental
General Convention Gas Capital Improvement Service Projects QalicB Funds Funds
Fund Balances:
Nonspendable for:
Inventory 152,982$ -$ -$ -$ -$ -$ -$ -$ -$ 152,982$
Restricted for:
Public works - - 1,072,347 - - - - - - 1,072,347
Public health and sanitation - - - - - - - - 164 164
Culture and recreation - - - - - - - - 124,221 124,221
Planning and development - 213,461 - - - - - - 232,778 446,239
Debt payments - - - - - 1,509,863 - - 1,037,888 2,547,751
Committed for:
Public safety - - - - - - - - 375,147 375,147
Culture and recreation - - - - - - - - 690,067 690,067
Planning and development - - - - - - - 1,714,956 18,589 1,733,545
Cemetery - - - - - - - - 495,895 495,895
Capital improvements - - - 1,658,876 2,817,807 - 895,117 - 1,406,025 6,777,825
Assigned for:
General government 28,477 - - - - - - - - 28,477
Public safety 121,515 - - - - - - - - 121,515
Public works 61,533 - - - - - - - - 61,533
Culture and recreation 2,485 - - - - - - - - 2,485
Capital improvements - - 9,951 424,738 206,771 - - - - 641,460
Unassigned:6,515,517 - - - - - - - [27,854] 6,487,663
Total Fund Balances 6,882,509$ 213,461$ 1,082,298$ 2,083,614$ 3,024,578$ 1,509,863$ 895,117$ 1,714,956$ 4,352,920$ 21,759,316$
Major Governmental Funds
38
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D.Assets, Liabilities, Fund Balance, and Net Position (Continued)
9. Deferred Outflows/Inflows of Resources
In addition to asset s, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement el em ent, deferred outflows of resources,
represents a consumption of net position that applies to a future period(s) and so will not be recognized as
an outflow of resources (expense/expenditure) until then. The City reports a def erred charge on bond
issuance reported in the gov ernment-wide statement of net position. A def erred charge on bond issuance
results from the difference in the carrying value of the debt and its reacquisition price. This am ount is
deferred and am ortized ov er the life of the debt.Additionally, the City reports changes in the pension
liability proportion and contributions made to the pension plan after the measurement date of the net
pension liability as deferred outflows of resources in the gov ernment activities.
In addition to liabilities, the statement of financial position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement el em ent, deferred inflows of resources,
represents an acquisition of net position that applies to a future period(s) and so will not be recognized as
an inflow of resources (rev enue) until that time. Unavailable revenue –property taxes, is reported in the
gov ernmental funds balance sheet and the governmental activities in the government-wide statement of
net position. Additionally, the City reports differences between expected and actual experience, differences
between projected and actual investment earnings, changes in assumptions, and changes in the pension
liability proportion as deferred inflows for governmental activities.These amounts are deferred and
recognized as an inflow of resources in the period that the amounts become available.
10. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported assets and liabilities at the date of
the financial statements and the reported amounts of rev enues and expenses during the reporting period.
Actual results could differ from those estimates.
11. Net Position
Net position represents the difference between assets and liabilities. Net investment in capital assets
consists of capital assets, net of accumulated depreciation, reduced by the outstanding bal ances of any
borrowings used for the acquisition, construction or improvement of those assets. Net position is reported as
restricted when there are limitations imposed on their use either through the enabling legislation adopted by
the City or through external restrictions imposed by creditors, grantors or laws or regulations of other
governments.
Note 2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A.Budgetary Information
Kansas statutes require that an annual operating budget be legally adopted for the general fund, special
revenue funds (unless specifically exempted by statute), debt service fund, and enterprise funds.
The statutes provide for the following sequence and timetable in the adoption of the legal annual operating
budget:
1.Preparation of the budget for the succeeding year on or before August 1.
2.Publication in local newspaper of the proposed budget and notice of public hearing on the budget on or
before August 5.
3.Public hearing on or before August 15, but at least ten days after publication of notice of hearing.
4.Adoption of the final budget on or before August 25.
39
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued)
A.Budgetary Information (Continued)
The st atutes allow the governing body to increase the originally adopted budget for previously unbudgeted
increases in revenue other than ad valorem property taxes. To do this, a notice of public hearing to amend
the budget must be published in the local newspaper. At least ten days after publication the hearing may be
held and the gov erning body may amend the budget at that time. The 2017 budget was amended for the
Tourism and Convention Fund and the Sales Tax Capital Fund.
The st atutes permit management to transfer budgeted amounts between line items within an individual fund.
However, such st atutes prohibit ex penditures in excess of the total amount of the adopted budget of
ex penditures of individual funds. Budget comparison statements are presented for each fund showing actual
receipts and expenditures compared to legally budgeted receipts and expenditures.
All legal annual operating budgets are prepared using the st atutory basis of accounting, in whi ch, revenues
are recognized when cash is receiv ed, and expenditures include di sbursements, accounts payable, and
encumbrances. Encumbrances are commitments by the municipality for future payments and are supported
by a document ev idencing the commitment, such as a purchase order or contract. All unencumbered
appropriations (legal budget expenditure authority) lapse at year end.
A legal operating budget is not required for capital projects funds, the SFH QalicB fund, non-major debt
service funds, trust funds, and the following special rev enue funds: Community Development Rev olv ing,
Downtown TIF District #1,South 9th CID, State Grants, 911 Communications, Kenwood Cove Capital,
Special Law Enforcement, Police Grants, Federal Grants, DARE Donations,War Memorial Maintenance,
Federal CARE Grant, Police Department Federal Forfeiture,Homeowners’ Assistance, Priv ate Grants and
Animal Shelter Donations Funds. A legal operating budget is not required for the following Enterprise funds:
Solid W aste Disposal, W ater and Sewer, Sanitation and Golf Course Funds. A legal operating budget is also
not required for the Internal Service funds. Actual to budget comparisons for these funds that present
budgets to the Commissioners are shown strictly for informational purposes.
Spending in funds, which are not subject to the legal annual operating budget requirements are controlled by
federal regulations, other statutes, or by the use of internal spending limits established by the gov erning
body.
B.Statutory Violations
Actual ex ceeded budgeted expenditures at December 31, 2017 in the Tourism and Conv ention Fund
which violates KSA 79-2935.
C.Legal Debt Margin
The City is subject to the municipal finance law of the state of Kansas which limits the bonded debt (exclusive
of revenue bonds and special assessment bonds) the city may hav e outstanding to 30 percent of the
assessed value of all tangible taxable property wi thin the city, as certified to the county clerk on the
proceeding August 25. At December 31, 2017, the st atutory limit for the City was $142,000,537, providing a
debt margin of $80,704,353.
40
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 3. DETAILED NOTES ON ALL FUNDS
A.Deposits and Investments
The City’s cash is considered to be active funds by management and is invested according to KSA 9-1401.
The st atute requires that banks eligible to hold active funds hav e a main or branch bank in the county in
which the City is located or in a county adj acent to the City and the banks provide an acceptable rate for
active funds.
Various City investments are considered to be idle funds by management and are invested according to KSA
12-1675. The statute requires that the City invest its idle funds in only temporary notes of the City, bank
certificates of deposit, repurchase agreements, and if eligible banks do not offer an acceptable rate for the
funds: U.S. Treasury bills or notes or the Municipal Investment Pool (KMIP). Maturities of the abov e
investments may not exceed two years by statute.
Some of the City’s investments are of bond proceeds invested pursuant to KSA 10-131. This st atute allows
additional investment authority beyond that of KSA 12-1675. Investments of bond proceeds may follow KSA
12-1675 or include other investments such as the KMIP, direct obligations of the U.S.gov ernment or any
agency thereof, investment agreements with a financial institution the obligations of whi ch at the time of
investment are rated in either of the three highest rating categories by Moody’s investors service or Standard
and Poor’s corporation, and various other investments as specified in KSA 10-131.
At December 31, 2017, the City has the following investments:
Investment Type Fair Value Rating
Kansas Municipal Investm ent Pool 305,523$ S&P AAAf/S1+
Total fair value 305,523$
The municipal investment pool is under the oversight of the Pooled Money Investment Board. The board is
comprised of the State Treasurer and four additional members appointed by the State Governor. The board
reports annually to the Kansas legislature. State pooled monies may be invested in direct obligations of, or
obligations that are insured as to principal and interest by the U.S. gov ernment or any agency thereof, with
maturities up to four years. No more than 10 percent of those funds may be inv ested in mortgage-backed
securities. In addition, the State pool may invest in repurchase agreements wi th Kansas banks or wi th
primary government securities dealers.
41
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
A.Deposits and Investments (Continued)
The City’s investment policy provides direction on concentration risk. The City policy states that funds shall
be div ersified to reduce the extent of losses due to having an unbalanced portfolio in terms of maturities,
instrument type, and issuers. Therefore, portfolio maturities shall be staggered to avoid undue concentration
of assets in a specific maturity sector. Liquidity, free of market risk, shall be assured through practices
insuring that the next di sbursement date and payroll date are cov ered through maturing investments,
marketable U.S. Treasury Bills, the Municipal Investment Pool, or money market accounts.
Default risk shall be minimized by requiring that all security purchases occur on a delivery vs. payment basis,
and that all securities are adequately collateralized.
Risk of market price volatility shall be controlled through the adoption of a "buy and hold" st rategy whereby
the City holds each investment to maturity, coupled with maintenance of an adequate liquidity position to
insure the ability to meet normal anticipated cash flow needs.
When adv antageous, it is allowable to sell investments to realize a gain due to price fluctuations; howev er,
such transactions shall not be a part of the normal course of business.
The City recognizes that investment risks can result from issuer defaults, market price changes or various
technical complications leading to temporary illiquidity. Portfolio diversification is employed as a way to
control risk due to issuer default. In the event of a default by a specific issuer, the Director of Finance and
Administration shall review, and, if appropriate, proceed to liquidate securities having comparable credit risks.
Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be returned to it.
The City’s deposit policy for custodial credit ri sk require that the depository banks will maintain 100% security
in the form of FDIC coverage and pledged collateral according to KSA 9-1402. As of December 31 2017, the
City’s deposits were considered fully secured.
Restricted cash is comprised of a construction account, an interest reserv e account (the "Interest
Reserv e"), and an ex pense reserv e account (the "Operating Reserv e") related to the SFH QalicB bl ended
component unit. The Interest Reserv e and the Operating Reserv e accounts are av ailable as part of the
loans payable financing (see Note 4E). As of December 31, 2017, the balance of the construction account,
Interest Reserv e, and Operating Reserv e was $1,439,071, $437,246, and $125,272, respectively.
42
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
B.Receivables
Receivables as of year-end, including the applicable allowances for doubtful accounts, are as follows:
Tourism
and Special Debt Capital SFH Other
General Convention Gas Service Projects QalicB Governmental Subtotal
Primary Government
Receivables:
Accounts 6,066,477$ 476,551$ -$ -$ 54,161$ 123,914$ 16,034$ 6,737,137$
Taxes 8,864,737 - 322,888 2,521,302 - - - 11,708,927
Interest 16,726 - - - - - - 16,726
Gross receivables 14,947,940 476,551 322,888 2,521,302 54,161 123,914 16,034 18,462,790
Less: allowance for
uncollectibles [4,808,497] - - - - - [13,170] [4,821,667]
Total 10,139,443$ 476,551$ 322,888$ 2,521,302$ 54,161$ 123,914$ 2,864$ 13,641,123$
Solid Water
Waste and
Disposal Sewer Sanitation Total
Primary Government
Receivables:
Accounts 194,086$ 2,790,241$ 408,313$ 10,129,777$
Taxes - - - 11,708,927
Interest 16 - - 16,742
Gross receivables 194,102 2,790,241 408,313 21,855,446
Less: allowance for
uncollectibles - [1,299,529] [190,168] [6,311,364]
Total 194,102$ 1,490,712$ 218,145$ 15,544,082$
Component Units
Salina Airport Authority
Accounts 268,134$
Less: allowance for uncollectibles [1,500]
Total Salina Airport Authority 266,634
Salina Housing Authority
Accounts 18,934
Less: allowance for uncollectibles [1,000]
Interest 435
Total Salina Housing Authority 18,369
Total 285,003$
C.Interfund Receivables and Payables
The composition of interfund balances as of December 31, 2017, is as follows:
Fund Types Due From Due To
General Fund 27,854$ -$
Capital Project Fund 9,656 -
SFH QalicB Fund - 9,656
Police Grants Fund - 27,854
37,510$ 37,510$
The City uses interfund receivables and payables between the General Fund and Other Gov ernmental
Funds as needed when pooled cash is negative within a fund until investments mature or grant proceeds are
received. All payables are cleared in less than one year.
43
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
D.Capital Assets
Capital asset activity for the year ended December 31, 2017, was as follows:
Balance Adj. Bal.Balance
12/31/2016 Adjustments 12/31/2016 Additions Retirements 12/31/2017
City governmental activities:
Governmental activities:
Capital assets, not being depreciated
Construction in progress 30,810,942$ -$ 30,810,942$ 8,706,902$ 10,608,276$ 28,909,568$
Land 24,001,859 - 24,001,859 91,000 - 24,092,859
Capital assets, being depreciated
Infrastructure 193,545,859 - 193,545,859 5,769,479 - 199,315,338
Buildings and improvements 43,599,404 - 43,599,404 9,417,305 7,030 53,009,679
Vehicles 9,551,939 - 9,551,939 1,276,732 442,172 10,386,499
Equipment, furniture and fixtures 5,628,958 - 5,628,958 1,056,286 71,233 6,614,011
Total capital assets 307,138,961 - 307,138,961 26,317,704 11,128,711 322,327,954
Less accumulated depreciation for:
Infrastructure 80,432,297 - 80,432,297 3,925,147 - 84,357,444
Buildings and improvements 18,742,249 - 18,742,249 1,191,358 3,156 19,930,451
Vehicles 6,403,701 - 6,403,701 763,511 300,936 6,866,276
Equipment, furniture and fixtures 4,438,786 - 4,438,786 196,041 60,998 4,573,829
Total accumulated depreciation 110,017,033 - 110,017,033 6,076,057 365,090 115,728,000
Governmental activities capital assets, net 197,121,928$ -$ 197,121,928$ 20,241,647$ 10,763,621$ 206,599,954$
Business-type activities:
Capital assets, not being depreciated
Construction in progress 15,727,780$ -$ 15,727,780$ 4,389,421$ 17,967,412$ 2,149,789$
Land 1,541,806 - 1,541,806 - - 1,541,806
Capital assets, being depreciated
Infrastructure 101,119,995 - 101,119,995 18,337,654 - 119,457,649
Buildings and improvements 22,579,933 - 22,579,933 - - 22,579,933
Vehicles 3,652,923 - 3,652,923 84,953 47,024 3,690,852
Equipment, furniture and fixtures 5,302,926 - 5,302,926 34,134 - 5,337,060
Total capital assets 149,925,363 - 149,925,363 22,846,162 18,014,436 154,757,089
Less accumulated depreciation for:
Infrastructure 40,241,102 - 40,241,102 3,488,860 - 43,729,962
Buildings and improvements 12,796,638 - 12,796,638 421,287 - 13,217,925
Vehicles 2,492,221 - 2,492,221 205,045 47,024 2,650,242
Equipment, furniture and fixtures 3,611,055 - 3,611,055 242,344 - 3,853,399
Total accumulated depreciation 59,141,016 - 59,141,016 4,357,536 47,024 63,451,528
Business-type activities capital assets, net 90,784,347$ -$ 90,784,347$ 18,488,626$ 17,967,412$ 91,305,561$
44
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
D. Capital Assets (Continued)
The City’s depreciation expense was charged to governmental functions as follows:
Governmental Activities:
General government 75,433$
Public safety 721,766
Public works 4,280,905
Public health 30,270
Culture and recreation 811,875
Planning and development 155,808
Total depreciation 6,076,057$
Business-type Activities:
Solid W aste Disposal 850,548$
Water and Sewer 3,322,113
Sanitation 153,242
Golf Course Division 31,633
Total depreciation 4,357,536$
E.Long-Term Debt
Following is a summary of changes in long-term debt for fiscal year 2017:
Restated
Balance Balance Amounts
January 1, December 31,Due Within
2017 Additions Deletions 2017 One Year
Governmental activities:
General obligation bonds 51,816,400$ 9,388,370$ 5,210,465$ 55,994,305$ 5,561,280$
Financing lease 321,174 - 163,306 157,868 157,868
Loans payable 12,157,127 13,963 - 12,171,090 -
Accrued compensation 2,803,847 1,493,457 1,499,346 2,797,958 1,499,345
Temporary notes 11,505,000 2,196,742 6,890,000 6,811,742 2,196,742
Total 78,603,548$ 13,092,532$ 13,763,117$ 77,932,963$ 9,415,235$
Business-type activities:
General obligation bonds 7,640,380$ -$ 1,119,947$ 6,520,433$ 1,242,407$
Revenue bonds 13,285,443 - 678,696 12,606,747 708,696
Loans payable 7,432,024 2,116,375 685,589 8,862,810 571,773
Accrued compensation 670,126 316,436 344,215 642,347 344,215
Total 29,027,973$ 2,432,811$ 2,828,447$ 28,632,337$ 2,867,091$
Component Units:
General obligation bonds 22,632,000$ 2,520,000$ 1,065,000$ 24,087,000$ 1,220,000$
Less unamortized discount [204,733] [53,956] [179,204] [79,485] -
Special assessment debt 11,268 - 2,061 9,207 2,153
Total component units 22,438,535$ 2,466,044$ 887,857$ 24,016,722$ 1,222,153$
45
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
E.Long-Term Debt (Continued)
The following is a detailed listing of the city’s long-term debt including general obligation bonds, revenue
bonds, temporary notes and loans payable:
Primary Government Original Interest Bonds
General Obligation Bonds Issue Rates Outstanding
Internal Improvements 2008B, due 7/1/2028 3,525,000$ 3.65% to 5.00%1,845,000$
Internal Improvements 2009A, due 10/1/2029 23,695,000 2.00% to 5.00%5,220,404
Internal Improvements 2010A, due 10/1/2025 6,916,592 2.00% to 3.875%968,318
Internal Improvements 2010B, due 10/1/2023 7,973,044 0.50% to 3.00%2,297,173
Internal Improvements 2011A, due 10/1/2031 6,587,985 2.00% to 5.00%1,444,598
Internal Improvements 2012A, due 10/1/2027 2,383,903 1.00% to 2.45%1,662,602
Refunding 2012B, due 10/1/2020 3,817,108 1.00% to 1.40%902,040
Internal Improvements 2013A, due 10/1/28 1,369,380 3.00% to 4.00%1,086,880
Internal Improvements 2013B, due 10/1/33 4,485,073 0.60% to 3.65%3,539,058
Internal Improvements 2014A, due 10/1/34 7,839,050 2.50% to 3.75%6,088,693
Improvement and Refunding 2015A, due 10/1/35 7,157,688 2.00% to 4.00%6,494,420
Internal Improvements 2016A, due 10/1/36 6,681,766 2.00% to 3.00%6,436,178
Refunding 2016B, due 10/1/2031 15,141,004 2.00% to 5.00%15,141,004
Internal Improvements 2017A, due 10/1/37 9,388,370 3.00% to 3.375%9,388,370
Total general obligation bonds 62,514,738$
Revenue Bonds
Revenue 2011, due 10/1/31 16,193,925$ 2.00% to 4.60%12,606,747$
Total revenue bonds 12,606,747$
Temporary Notes
Series 2016-2, due 9/1/2019 4,615,000$ 1.00%4,615,000$
Series 2017-1, due 8/1/2018 2,180,000 2.00%2,196,742
Total temporary notes 6,811,742$
Loans Payable
Kansas Public Water Supply, due 8/1/2034 9,330,000$ 2.12%4,833,476$
Kansas Public Water Supply, due 8/1/2035 4,250,000 2.78%4,029,334
Dakotas & CNMC Notes, due 12/10/2050 12,640,000 1.58%12,171,090
Total loans payable 21,033,900$
Financing Lease, due 2/10/2017
Equipment, due 5/8/18 146,235$ 3.28%38,347$
Software, due 10/10/18 456,370 3.19%119,521
157,868$
46
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
E. Long-Term Debt (Continued)
Original Interest Bonds
Issue Rates Outstanding
Component Unit
Salina Airport Authority
General Obligation Bonds
General Obligation 2009B, due 2021 6,080,000$ 4.78 1,545,000$
General Obligation 2011A, due 2023 11,820,000 3.89%3,160,000
General Obligation 2015A, due 2025 3,075,000 2.67%2,195,000
Temporary Note 2016-1, due 2019 657,000 0.90%657,000
Temporary Note 2017-1, due 2019 1,440,000 1.43%1,440,000
General Obligation 2017A, due 2030 10,255,000 3.04%10,255,000
General Obligation 2017B, due 2025 4,835,000 3.02%4,835,000
Less unamortized bond premium 33,023
Less unamortized bond discount [112,508]
Total general obligation bonds 24,007,515
Special Assessment Debt
Hangar 600 Sanitary Sewer, due 2021 27,599 4.47%9,207
Total special assessment debt 9,207
Total 24,016,722$
Annual debt service requirements to maturity for general obligation bonds to be paid with tax levies:
Bonds Interest
Year Outstanding Due Total
2018 6,803,687$ 1,899,204$ 8,702,891$
2019 6,923,687 1,627,845 8,551,532
2020 4,778,686 1,431,514 6,210,200
2021 4,498,434 1,298,645 5,797,079
2022 4,577,283 1,150,154 5,727,437
2023-2027 18,891,638 18,891,638 37,783,276
2028-2032 10,234,792 1,648,156 11,882,948
2033-2037 5,806,531 453,346 6,259,877
Total 62,514,738$ 28,400,502$ 90,915,240$
General Obligation - Primary Government
47
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
E. Long-Term Debt (Continued)
Bonds Interest
Year Outstanding Due Total
2018 1,220,000$ 746,880$ 1,966,880$
2019 1,310,000 652,277 1,962,277
2020 1,350,000 612,110 1,962,110
2021 1,400,000 565,880 1,965,880
2022 1,455,000 511,135 1,966,135
2023 - 2027 7,970,000 1,852,938 9,822,938
2028 - 2031 7,285,000 575,795 7,860,795
Total 21,990,000$ 5,517,015$ 27,507,015$
General Obligation - Component Units
Annual debt service requirements to maturity for revenue bonds to be paid with utility revenues:
Bonds Interest
Year Outstanding Due Total
2018 708,696$ 509,141$ 1,217,837$
2019 728,696 487,991 1,216,687
2020 748,696 466,242 1,214,938
2021 773,696 798,696 1,572,392
2022 798,696 414,148 1,212,844
2023-2027 4,498,480 1,563,177 6,061,657
2028-2031 4,349,787 504,816 4,854,603
Total 12,606,747$ 4,744,211$ 17,350,958$
Revenue Bonds - Primary Government
Annual debt service requirements to maturity for temporary notes -to be paid through the issuance of general
obligation bonds:
Not es Int eres t
Year Outstanding Due Tot al
2018 2,196,742$ 90,234$ 2,286,976$
2019 4,615,000 46,150 4,661,150
Total 6,811,742$ 136,384$ 6,948,126$
Temporary Notes - Primary Government
48
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
E. Long-Term Debt (Continued)
Annual debt service requirements to maturity for financing leases -to be paid from revenues:
Lease Interest
Year Outstanding Due Total
2018 157,868$ 5,071$ 162,939$
Total 157,868$ 5,071$ 162,939$
Capital Lease - Primary Government
Kansas Public Water Supply Loans.The City has engaged in a loan with the Kansas Public Water Supply
Fund. The following di splays annual debt serv ice requirements to maturity for the loan payable to be paid
from service revenues, for the full proceeds amount:
Loans Int erest
Year Outstanding Due Tot al
2018 571,773$ 277,128$ 848,901$
2019 580,276 268,625 848,901
2020 593,764 255,137 848,901
2021 607,573 241,328 848,901
2022 621,707 227,194 848,901
2023-2027 3,332,540 911,965 4,244,505
2028-2032 3,739,637 504,868 4,244,505
2033-2035 2,150,661 95,361 2,246,022
Total 12,197,931$ 2,781,606$ 14,979,537$
Kansas Water Supply Loans - Primary Government
Dakotas and CNMC Notes. Dakotas Note A -On July 27, 2016, a $6,016,500 promissory note with a
maturity date of December 10, 2050 was provided to SFH QalicB by Dakotas XXII, LLC. Interest accrues
on the unpaid principal balance at an interest rate of 1.582625% with annual interest only payments,
partially in arrears and partially in advance, commencing on December 10, 2016 and continuing on the
tenth day of each December thereafter through December 10, 2025. On July 27, 2023, payment of all
accrued and unpaid interest through July 27, 2023 is due. Commencing on December 10, 2023 and
continuing on the tenth day of each December thereafter through December 10, 2026, accrued and unpaid
interest shall be due and payable annually, partially in arrears and partially in adv ance for interest accruing
through the end of each calendar year. Commencing on December 10, 2026 and continuing through the
maturity date,annual payments of principal and interest in an am ount equal to $293,276 are due. At
maturity, the entire outstanding principal balance pl us all accrued and unpaid interest thereon is due and
payable in full. The loan may not be prepaid prior to July 27, 2023 and is secured by the Loan and Security
Agreement. As of December 31, 2017, the note balance was $6,016,500.
49
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
E. Long-Term Debt (Continued)
Dakotas Note B -On July 27, 2016, a $2,623,500 promissory note with a maturity date of December 10,
2050 was provided to the SFH QalicB by Dakotas XXII, LLC. Interest accrues on the unpaid principal
balance at an interest rate of 1.582625% with annual interest only payments, partially in arrears and
partially in advance, commencing on December 10, 2016 and continuing on the tenth day of each
December thereafter through December 10,2025. On July 27, 2023, payment of all accrued and unpaid
interest through July 27, 2023 is due. Commencing on December 10, 2023 and continuing on the tenth day
of each December thereafter through December 10, 2025, accrued and unpaid interest shall be due and
payable annually, partially in arrears and partially in adv ance for interest accruing through the end of each
calendar year. Commencing on December 10, 2026 and continuing through the maturity date,annual
payments of principal and interest in an am ount equal to $127,883 are due. At maturity, the entire
outstanding principal balance pl us all accrued and unpaid interest thereon is due and payable in full. The
loan may not be prepaid prior to July 27, 2023 and is secured by the Loan and Security Agreement. As of
December 31, 2017, the note balance was $2,623,500.
CNMC Note A -On July 27, 2016, a $2,674,000 promissory note with a maturity date of December 10, 2050
was provided to the SFH QalicB by CNMC Sub-COE 114, LLC. Interest accrues on the unpaid principal
balance at an interest rate of 1.582625% with annual interest only payments, partially in arrears and
partially in advance,commencing on December 10, 2016 and continuing on the tenth day of each
December thereafter through December 10, 2025. On July 27, 2023, payment of all accrued and unpaid
interest through July 27, 2023 is due. Commencing on December 10, 2023 and continuing on the tenth day
of each December thereafter through December 10, 2025, accrued and unpaid interest shall be due and
payable annually, partially in arrears and partially in adv ance for interest accruing through the end of each
calendar year. Commencing on December 10, 2026 and continuing through the maturity date, annual
payments of principal and interest in an am ount equal to $130,345 are due.At maturity, the entire
outstanding principal balance pl us all accrued and unpaid interest thereon is due and payable in full. The
loan may not be prepaid prior to July 27, 2023 and is secured by the Loan and Security Agreement. As of
December 31, 2017, the note balance was $2,674,000.
CNMC Note B -On July 27, 2016, a $1,326,000 promissory note with a maturity date of December 10, 2050
was provided to the SFH QalicB by CNMC Sub-COE 114, LLC. Interest accrues on the unpaid principal
balance at an interest rate of 1.582625% with annual interest only payments, partially in arrears and
partially in advance, commencing on December 10, 2016 and continuing on the tenth day of each
December thereafter through December 10, 2025. On July 27, 2023, payment of all accrued and unpaid
interest through July 27, 2023 is due. Commencing on December 10, 2023 and continuing on the tenth day
of each December thereafter through December 10, 2025, accrued and unpaid interest shall be due and
payable annually, partially in arrears and partially in adv ance for interest accruing through the end of each
calendar year. Commencing on December 10, 2026 and continuing through the maturity date, annual
payments of principal and interest in an am ount equal to $64,636 are due. At maturity, the entire
outstanding principal balance pl us all accrued and unpaid interest thereon is due and payable in full. The
loan may not be prepaid prior to July 27, 2023 and is secured by the Loan and Security Agreement. As of
December 31, 2017, the note balance was $1,326,000.
As of December 31, 2017, the principal balance of these four loans net of $468,910 of unamortized debt
issuance costs was $12,171,090.
50
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
E. Long-Term Debt (Continued)
Annual debt service requirement to maturity for Special Assessment Debt to be paid from rental revenue:
Assessment Interest
Year Outstanding Due Total
2018 2,153$ 412$ 2,565$
2019 2,249 315 2,564
2020 2,350 215 2,565
2021 2,455 110 2,565
Total 9,207$ 1,052$ 10,259$
Special Assessment Debt - Component Units
Special assessments. As prov ided by Kansas statutes, projects financed in part by special assessments are
financed through general obligation bonds of the City and are retired from the debt serv ice fund. Special
assessments paid prior to the issuance of bonds are recorded as revenue in the appropriate project. Special
assessments received after the issuance of bonds are recorded as revenue in the debt serv ice fund. The
special assessments are not recorded as rev enue when levied against the respective property owners as
such amounts are not av ailable to finance current year operations. The special assessment debt is a
contingent obligation of the City to the extent of property owner defaults, which hav e hi st orically been
immaterial.
Premises lease.On July 27, 2016, SFH QalicB entered into a lease agreement with the City for the use of
the Salina Field House, as defined in the Net Lease agreement (the "Property"), under a direct financing
lease. The lease term is 30 years, as defined in the Net Lease agreement. Beginning on July 1, 2017 and
on the first day of each December thereafter through December 1, 2046, annual payments are due, in
adv ance, as specified in the Net Lease agreement.
For the year ended December 31, 2017, SFH QalicB earned $246,458 of rental income under the terms of
the Net Lease. As of December 31, 2017, rental income of $123,914 remained receivable from the City.
51
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
E. Long-Term Debt (Continued)
Premises lease (continued).The following is a schedule, by year, of total minimum lease payments by the
City to SFH QalicB under the direct financing lease as of December 31, 2017:
2018 130,000$
2019 130,000
2020 130,000
2021 130,000
2022 130,000
2023-2027 1,917,500
2028-2032 3,250,000
2033-2037 3,250,000
2038-2042 3,250,000
2043-2046 2,275,000
14,592,500$
F. Operating Leases
On December 20, 2012, the City and Saline County jointly entered into a non-cancelable lease to finance a
$2,750,000 heating, ventilation and air conditioning (HVAC)upgrade at the Saline County-City Building
Authority. The City’s share of the lease agreement is 40% and will pay the lessor $1,100,000, plus interest,
through monthly payments of $7,827 over a term of 180 months. The total cost for this lease was $93,926 for
the year ended December 31, 2017. The future minimum lease payments for the lease are as follows:
Year Amount
2018 93,926$
2019 93,926
2020 93,926
2021 93,926
2022 93,926
2023-2027 469,633
Total 939,263$
52
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
G. Reconciliation of Transfers
A reconciliation of interfund transfers follows:
Transfer In Transfer Out
Major Funds:
General fund 4,626,500$810,000$
Tourism and convention fund - 723,942
Special gas fund 160,000 -
Sales tax capital fund - 2,568,350
Debt service 2,241,309 -
Capital projects - 57,666
Salina Fieldhouse QALICB, Inc.- -
Other governmental funds 1,310,983 -
Agency funds 57,666 -
Solid waste disposal fund - 540,000
Water and sewer fund - 3,450,000
Sanitation fund - 376,500
Central garage fund 130,000 -
Total Transfers 8,526,458$8,526,458$
The City uses interfund transfers to share administrative costs between funds.
53
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 5. OTHER INFORMATION
A. Defined Benefit Pension Plan
Description of Pension Plan. The City participates in a cost-sharing multiple-employer pension plan (Pension
Plan), as defined in Governmental Accounting Standards Board Statement No. 67, Financial Reporting for
Pension Plans. The Pension Plan is administered by the Kansas Public Employees Retirement System
(KPERS), a body corporate and an instrumentality of the State of Kansas. KPERS prov ides benefit
provisions to the following statewide pension groups under one plan, as provided by K.S.A. 74, article 49:
Public employees, which includes:
State/School employees
Local employees
Police and Firemen
Judges
Substantially all public em pl oyees in Kansas are covered by the Pension Plan. Participation by local
political subdivisions is optional, but irrevocable once elected.
Those employees participating in the Pension Plan for the City are included in the Local em ployees group
and the Kansas Police and Firemen group.
KPERS issues a stand-alone comprehensiv e annual financial report, which is av ai lable on the KPERS
website at www.kpers.org.
Benefits. Benefits are established by statute and may only be changed by the State Legislature. Members
(except Police and Firemen) with ten or more years of credited service, may retire as early as age 55
(Police and Firemen may be age 50 with 20 years of credited service), with an actuarially reduced monthly
benefit. Normal retirement is at age 65, age 62 with ten years of credited service, or whenev er a member’s
combined age and years of service equal 85. Police and Firemen normal retirement ages are age 60 with
15 years of credited service, age 55 with 20 years, age 50 with 25 years, or any age with 36 years of
service.
Monthly retirement benefits are based on a statutory formula that includes final av erage salary and years
of service. When ending em pl oyment, members may withdraw their contributions from their individual
accounts, including interest. Members who withdraw their accumulated contributions lose all rights and
privileges of membership. For all pension coverage groups, the accumulated contributions and interest are
deposited into and disbursed from the membership accumulated reserv e fund as established by K.S.A. 74-
4922.
Members choose one of sev en payment options for their monthly retirement benefits. At retirement a
member may receive a lump-sum payment of up to 50% of the actuarial present value of the member’s
lifetime benefit. His or her monthly retirement benefit is then permanently reduced based on the amount of
the lump sum. Benefit increases, including ad hoc post-retirement benefit increases, must be passed into law
by the Kansas Legislature. Benefit increases are under the authority of the Legislature and the Governor of
the State of Kansas.
The 2012 Legislature made changes affecting new hires, current members and employers. A new KPERS 3
cash balance retirement plan for new hires starting January 1, 2015, was created. Normal retirement age for
KPERS 3 is 65 with five years of service or 60 with 30 years of serv ice. Early retirement is av ailable at age
55 with ten years of service, with a reduced benefit. Monthly benefit options are an annuity benefit based on
the account balance at retirement.
54
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 5. OTHER INFORMATION (Continued)
A. Defined Benefit Pension Plan (Continued)
For all pension coverage groups, the retirement benefits are di sbursed from the retirement benefit payment
reserve fund as established by K.S.A. 74-4922.
Contributions. Member contributions are established by state law, and are paid by the em ployee
according to the provisions of Section 414(h) of the Internal Revenue Code. State law provides that the
employer contribution rates are determined based on the results of an annual actuarial valuation. The
contributions and assets of all groups are deposited in the Kansas Public Em pl oyees Retirement Fund
established by K.S.A. 74-4921. All of the retirement systems are funded on an actuarial reserv e basis.
For fiscal years beginning in 1995, Kansas legislation established statutory limits on increases in
contribution rates for KPERS em pl oyers. Annual increases in the em pl oyer contribution rates related to
subsequent benefit enhancements are not subject to these limitations. The statutory cap increase over the
prior year contribution rate is 1.2% of total payroll for the fiscal year ended June 30, 2017.
The actuarially determined em ployer contribution rates (not including the 1.00% contribution rate for the
Death and Disability Program) and the statutory contribution rates are as follows:
Actuarial Statutory Employer
Em ployer Rate Capped Rate
Local employees 8.46%8.46%
Police and Firemen 19.03%19.03%
Member contribution rates as a percentage of eligible compensation for the fiscal year 2017 are 6.00% for
Local employees and 7.15% for Police and Firemen.
Employer Allocations. Although KPERS administers one cost-sharing multiple-em pl oyer defined benefit
pension plan, separate (sub) actuarial valuations are prepared to determine the actuarial determined
contribution rate by group. Following this method, the measurement of the collective net pension liability,
deferred outflows of resources, deferred inflows of resources, and pension ex pense are determined
separately for each of the following groups of the plan:
State/School
Local
Police and Firemen
Judges
To facilitate the separate (sub) actuarial valuations, KPERS maintains separate accounts to identify
additions, deductions, and fiduciary net position applicable to each group. The allocation percentages
presented for each group in the schedule of employer and nonemployer allocations are applied to amounts
presented in the schedules of pension amounts by employer and nonemployer.
The allocation percentages for the City’s share of the collective pension am ounts as of December 31,
2017, are based on the ratio of its contributions to the total of the employer and nonemployer contributions
of the group for the fiscal years ended December 31, 2017.
The contributions used exclude contributions made for prior service, ex cess benefits and irregular
payments. At June 30, 2017, the City’s proportion for the Local em pl oyees group was 0.811%, which was
an increase of .05% from its proportion measured at June 30, 2016. At June 30, 2017, the City’s
proportion for the Police and Firemen group was 2.191%, which was an increase of .011% from its
proportion measured at June 30, 2016.
55
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 5. OTHER INFORMATION (Continued)
A. Defined Benefit Pension Plan (Continued)
Net Pension Liability. At December 31, 2017 and 2016, the City and its component units reported a liability
of $33,276,991 and $32,923,025, respectively, for its total proportionate share of the net pension liability
for the Local and Police and Firemen groups.
Actuarial Assumptions. The total pension liability was determined by an actuarial v al uation as of
December 31, 2016, which was rolled forward to June 30, 2017, using the following actuarial assumptions:
Assumptions Rate
Price inflation 2.75%
Wage inflation 3.50%
Salary increases, including wage increases 3.5% to 12.0% including inflation
Long-term rate of return, net of investment expense, and
including price inflation 7.75%
Mortality rates were based on the RP-2014 Mortality Tables, with age setbacks and age set forwards as
well as other adjustments based on different membership groups. Future mortality improvements are
anticipated using Scale MP-2016.
The actuarial assumptions used in the December 31, 2016 valuation were based on the results of an
actuarial ex perience study conducted for the period of January 1, 2013, through December 31, 2015. The
experience study is dated November 18, 2016.
The long-term ex pected rate of return of pension plan investments was determined using a building-block
method in which best-estimate ranges of expected future real rates of return (expected returns, net of
pension plan investment ex pense and inflation) are dev el oped for each major asset class. These ranges
are combined to produce the long-term expected rate of return by weighting the expected future real rates
of return by the target asset allocation percentage.
Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s
target asset allocation as of June 30, 2017 are summarized in the following table:
Long-Term Expected
Asset Long-Term Allocation Real Rate of Return
Global Equity 47.00%6.80%
Fixed Income 13.00%1.25%
Yield driven 8.00%6.55%
Real Return 11.00%1.71%
Real estate 11.00%5.05%
Alternatives 8.00%9.85%
Short-term investments 2.00%-0.25%
100.00%
Discount Rate. The di scount rate used to measure the total pension liability was 7.75%. The projection of
cash flows used to determine the discount rate assumed that contributions from pl an members will be
made at the contractually required rate. The State, School and Local em ployers do not necessarily
contribute the full actuarial determined rate. Based on legislation passed in 1993, the employer
contribution rates certified by the System’s Board of Trustees for these groups may not increase by more
than the statutory cap. The ex pected KPERS em pl oyer statutory contribution was modeled for future
years, assuming all actuarial assumptions are met in future years. Em pl oyers contribute the full actuarial
determined rate for Police & Firemen, and Judges. Future employer contribution rates were also modeled
for Police & Firemen and Judges, assuming al l actuarial assumptions are met in future years. Based on
those assumptions, the pension plan’s fiduciary net position was projected to be av ailable to make al l
projected future benefit paym ents of current plan members. Therefore, the long-term expected rate of
56
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 5. OTHER INFORMATION (Continued)
A. Defined Benefit Pension Plan (Continued)
return on pension pl an investments was applied to al l periods of projected benefit payments to determine
the total pension liability.
Sensitivity of the City’s proportionate share of the net pension liability to changes in the discount rate. The
following presents the City’s proportionate share of the net pension liability calculated using the di scount
rate of 7.75%, as well as what the City’s proportionate share of the net pension liability would be if it were
calculated using a discount rate that is 1-percentage point lower (6.75%) or 1-percentage point higher
(8.75%) than the current rate:
1% Decrease (6.75%)Discount Rate (7.75%)1% Increase (8.75%)
Local 16,927,244$ 11,753,246$ 7,391,770$
Police & Firemen 29,148,713 20,546,882 13,345,922
Total 46,075,957$ 32,300,128$ 20,737,692$
Pension Expense. For the year ended December 31, 2017, the City recognized Local pension expense of
$1,138,591 and Police and Firemen pension expense of $2,722,012, which includes the changes in the
collective net pension liability, projected earnings on pension plan investments, and the am ortization of
deferred outflows of resources and deferred inflows of resources for the current period.The Salina
Housing Authority’s and Salina Airport Authority’s portion of the Local pension expense were $32,442 and
$41,605, respectiv el y
Deferred Outflows of Resources and Deferred Inflows of Resources. At December 31, 2017, the City
reported def erred outflows of resources and def erred inflows of resources related to pensions for Local
and Police and Firemen groups from the following sources:
Deferred outflows Deferred inflows
Local of resources of resources
Differences between actual and expected experience 56,846$ 406,403$
Contributions subsequent to the measurement date 595,232 -
Net differences between projected and actual earnings on investments 368,680 -
Changes in assumptions 632,961 85,945
Changes in proportion 576,693 310,651
Total 2,230,412$ 802,999$
Deferred outflows Deferred inflows
Police & Firemen of resources of resources
Differences between actual and expected experience 993,261$ 153,700$
Contributions subsequent to the measurement date 1,006,499 -
Net differences between projected and actual earnings on investments 761,169 -
Changes in assumptions 1,434,755 91,820
Changes in proportion 66,279 583,959
Total 4,261,963$ 829,479$
57
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 5. OTHER INFORMATION (Continued)
A. Defined Benefit Pension Plan (Continued)
At December 31, 2017, the Salina Housing Authority and Salina Airport Authority reported def erred outflows
of resources and deferred inflows of resources related to pensions for Local and Police and Firemen groups
from the following sources:
Deferred outflows Deferred inflows Deferred outflows Deferred inflows
Local of resources of resources of resources of resources
Differences between actual and expected experience 2,167$ 6,740$ 2,919$ 20,866$
Contributions subsequent to the measurement date 36,983 - 5,290 -
Net differences between projected and actual earnings on investments 44,110 - 18,930 -
Changes in assumptions - 3,493 32,499 4,413
Changes in proportion 2,467 5,096 45,547 71,207
Total 85,727$ 15,329$ 105,185$ 96,486$
Airport AuthorityHousing Authority
$1,601,731 reported as deferred outflows of resources related to pensions resulting from City contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the
year ended December 31, 2017. Amounts reported as deferred outflows of resources and deferred inflows
of resources related to pensions will be recognized in pension expense as follows:
Local Police & Firemen
Deferred Deferred
Year ended [Inflows] Outflows [Inflows] Outflows
December 31,Amount Amount Total
2018 [8,406]$ 356,816$ 348,410$
2019 449,682 1,137,553 1,587,235
2020 306,743 714,701 1,021,444
2021 [6,545] 58,150 51,605
2022 90,707 158,765 249,472
Total 832,181$ 2,425,985$ 3,258,166$
$36,983 and $5,290 reported as deferred outflows of resources related to pensions resulting from Salina
Housing Authority and Salina Airport Authority contributions subsequent to the measurement date will be
recognized as a reduction of the net pension liability in the year ended December 31, 2017. Am ounts
reported as deferred outflows of resources and deferred inflows of resources related to pensions will be
recognized in pension expense as follows:
Hous ing Airport
Authority Authority
Deferred Deferred
Year ended [Inflows] Outflows [Inflows] Outflows
Dec ember 31,Amount Amount Tot al
2018 2,399$ [17,980]$ [15,581]$
2019 16,286 7,594 23,880
2020 12,198 9,651 21,849
2021 134 [2,028] [1,894]
2022 2,398 6,172 8,570
Total 33,415$ 3,409$ 36,824$
58
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 5. OTHER INFORMATION (Continued)
B. Deferred Compensation Plan
The City offers its employees a deferred compensation pl an ("Plan") created in accordance with Internal
Revenue Code Section 457. The Plan, av ailable to all City employees, permits them to defer a portion of
their salary until future years. The deferred compensation is not av ailable to employees until termination,
retirement, death, or unforeseeable emergency. Plan assets are transferred to a pl an agent in a custodial
trust and are not available to the claims of the City's general creditors.
C. Flexible Benefit Plan (I.R.C. Section 125)
The City Commission has adopted by resolution a salary reduction flexible benefit plan ("Plan") under
Section 125 of the Internal Revenue Code. All City 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 hi s 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 City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets;
errors and omissions; natural di sasters and other events for which the City carries commercial insurance. No
significant reductions in insurance coverage from that of the prior year hav e occurred. Settlements hav e not
ex ceeded insurance coverage for each of the past three years.
The City has established a limited risk management program for workers’ compensation. The program
covers all City employees. Premiums are paid into the Workers’ Compensation Reserve Fund by all other
funds and are av ailable to pay claims, claim reserves and administrative costs of the program. An excess
coverage insurance policy covers individual claims in ex cess of $250,000 ($350,000 for claims involving
em ployees classified as policemen or firemen). Incurred claims, including incurred but not reported claims,
have been accrued based primarily upon subsequent payments. Claim liabilities are calculated considering
the effects of inflation, recent claim settlement trends including frequency and amounts of payouts and other
economic and social factors. The liability for claims and judgments is reported in the Workers' Compensation
Reserve Fund because it is expected to be liquidated with expendable av ailable financial resources. Of the
liability, $177,141 is considered to be due within one year.
Changes in the balances of claims liabilities during the past two years are as follows:
2017 2016
Unpaid claims, January 1 255,154$ 281,601$
Incurred claims (including
IBNRs)622,556 947,583
Claim payments [655,797] [974,030]
Unpaid claims, December 31 221,913$ 255,154$
The City established a limited risk management program for employee health and dental insurance in 1997.
The program cov ers eligible City employees. Premiums are pai d into the health insurance fund by all other
funds and are av ailable to pay claims, claim reserves and administrative costs of the program. An excess
coverage insurance policy cov ers individual claims in excess of $50,000. Incurred claims, including incurred
but not reported claims, have been accrued based primarily upon subsequent payments. Claim liabilities are
calculated considering the effects of inflation, recent claim settlement trends including frequency and
am ounts of payouts and other economic and social factors. The liability for claims and judgments is reported
in the Health Insurance Fund because it is expected to be liquidated with ex pendable av ailabl e financial
resources. Therefore, all of the liability is considered to be due within one year. Changes in the balances of
claims liabilities during the past two years are as follows:
59
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 5. OTHER INFORMATION (Continued)
D. Risk Management (Continued)
2017 2016
Unpaid claims, January 1 294,333$ 275,440$
Inc urred claims (including
IBNRs )4,244,648 3,951,548
Claim payments [4,143,290][3,932,655]
Unpaid claims, December 31 395,691$ 294,333$
E. Contingent Liabilities
The City receives si gnificant financial assistance from numerous federal and st ate gov ernmental agencies in
the form of grants and st ate pass-through ai d. The di sbursement 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 General Fund or other
applicable funds. Howev er, in the opinion of management, any such di sallowed claims would not hav e a
material effect on any of the financial statements of the City at December 31, 2017.
The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently
determinable, it is the opinion of the City's legal counsel that resolution of these matters will not hav e a
material adverse effect on the financial condition of the City.
F. Municipal Solid Waste Landfill
State and federal laws and regulations require the City to pl ace a final cover on its landfill site when it st ops
accepting waste, and to perform certain maintenance and monitoring functions at the site for thirty years after
closure. Although closure and postclosure care costs will be pai d only near or after the date that the landfill
stops accepting waste, the City reports a portion of these closure and postclosure care costs as an operating
ex pense of the solid waste fund in each period based on landfill capacity used as of each balance sheet
date. The $1,981,498 reported as landfill closure and postclosure care liability at December 31 represents
the cumulative amount reported to date based on the use of 28.8% of the estimated capacity of the landfill.
The City's solid waste fund will recognize the remaining estimate cost of closure and postclosure care of
$4,892,995 as the remaining estimated capacity is filled over the remaining life expectancy of 147 years.
These amounts are based on what it would cost to perform all closure and postclosure care in 2017. Actual
cost may be higher due to inflation, changes, in technology or changes in regulations. The City is required by
State and Federal laws and regulations to provide assurances of financial responsibility for closure and post-
closure care. The City has el ected to utilize the Local Government Financial test promulgated by the U.S.
Environmental Protection Agency (at 40 CFR 258.74(f)) and the Kansas Department of Health and
Environment to provide these assurances. Any future closure or post-closure care costs will be provided
through the normal budgeting and rate setting process, including the issuance of general obligation bonds, if
necessary.
60
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 5. OTHER INFORMATION (Continued)
G. Capital Projects
Capital projects often extend over two or more fiscal years. The following is a schedule, which compares the
project authorization including allowable interest revenue to total project ex penditures from project inception
to December 31, 2017.
Project Authorization Expenditures
Markley-Magnolia VV Sewer 5,150,000$ 200,718$
Cloud from Ohio to Levee 155,014 69,242
Ninth and Cloud Intersection Realignment 1,100,000 1,048,542
Bicentennial Center Improvements 10,200,000 12,344,709
Lakewood Middle School Safe Route 81,375 47,509
Bicentennial Center Owners Rep 96,000 84,000
Water Well 13 & 14 Maintenance 52,184 50,830
Pavement Condition Survey 36,222 33,909
Community Fieldhouse 6,937,827 8,681,599
Community Fieldhouse 713,858 733,992
WasteW ater Treatment Plant Feasibil 154,395 154,395
Channel Road Erosion Repairs - 58,858
Rebuild High Service Pump P-203 24,187 6,259
Pump Stations and Force Mains 1,483,000 1,280,581
2016 W ater Meters 30,000 18,128
2017 Country Club Road Improvements 1,200,000 953,747
Dowtown STAR District 58,000 87,312
Downtown CID - Alley - 1,159
Downtown TIF - 1,944
2017 Mill & Inlay 1,577,502 1,413,554
2017 Major Concrete Rehab 469,472 423,675
Downtown Streetscape 12,165,000 1,109,400
Smoky Hill River Renewal 3,200,000 1,429,129
S W ell Field & W TP Phase 1 1,964,525 366,655
2017 Sidewalks 69,092 53,105
Police Training Facility 4,900,000 4,204
Beechcraft Road Improvements-Airport Authority 1,500,000 401
Indiana Ave Trail 79,262 74,486
Preliminary Design Broadway Impr 50,000 50,000
2018 Pavement Sealing 325,000 275
61
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 5. OTHER INFORMATION (Continued)
H. Environmental Matters
The Kansas Department of Health and Env ironm ent (KDHE) issued a report in 1994 indicating the presence
of volatile organic compounds at levels requiring rem edi ation at the Salina Public Water Supply Wells Site.
The City adopted a proactive Policy and Action Plan to remediate the groundwater contamination, and on
December 7, 1994, the City and KDHE entered into a Consent Order and Settlement Agreement under which
the City assumed primary responsibility for the further investigation and remediation of the groundwater
contamination. Field testing work has been completed. The necessary remediation work will be conducted
ov er the next several years at a yet undetermined cost to the City's Water and Sewer Fund.
The U.S. Department of Defense transf erred property located at the former Schilling Air Force Base (the
Base or Site) to the Authority on or about September 9, 1966. The property is now known to contain areas
of extensive soil and groundwater contamination, which is a result of the use and di sposal of chlorinated
solvents during military operations at the Base from 1942 until Base closure in 1965. The U.S. Department
of Defense is responsible for the investigation and remediation of contamination caused by military activities
at current and former military bases. The U.S. Army Corps of Engineers (Corps) is the lead agency for the
Department at formerly used defense sites. The Corps has investigated the soil and groundwater
contamination at the Site under the regulatory oversight of the U.S. Environmental Protection Agency (EPA)
and the Kansas Department of Health and Env ironment (KDHE). The Site is not designated as a National
Priority Li st Superfund site, but investigation and remediation are required to be in com pliance with the
Comprehensive Environmental Response, Compensation and Liability Act (CERCLA).
Potential liability for contamination under CERCLA extends broadly to parties associated with the release or
presence of hazardous substances, including not only those entities involved wi th contaminant use and
disposal, but in some cases other current and former owners and operators of contaminated si tes. As a
current owner of extensive amounts of property at the Site, the Authority is potentially liable under CERCLA,
although the Authority believes that it has meritorious defenses to such liability.
The Authority is considered to be a Potentially Responsible Party (PRP) for the Site, primarily due to its
status as a property owner. The Authority, City of Salina, Unified School District No. 305 and the Kansas
Board of Regents (Kansas State Univ ersity Polytechnic Campus), (collectively Salina Public Entities)
currently own ov er 90% of the nearly 4,000 acres of the Base property. No third party has asserted any
claim for bodily injury or property damage.
Beginning in August 2007, the Salina Public Entities initiated settlement negotiations with the U.S. Federal
Government. The negotiation objectives at that time included transferring the responsibility for completing
the cleanup from the U.S. to the Salina Public Entities. The local obj ective was to reach a settlement
agreement with the U.S. that provides the Salina Public Entities sufficient funds to complete cleanup
operations over a 30-year period.
During calendar year 2008, the Salina Public Entities, by and through its environmental consultant,
prepared a detailed Cost to Complete Estimate (CTC). The CTC preparation included consultation with
the EPA and KDHE. The Salina Public Entities’ CTC was completed in June of 2008 and submitted to
the Corps.
Subsequently, on January 23, 2009, the Salina Public Entities deliv ered a demand letter to the Corps. The
letter demanded that settlement negotiations begin immediately with the U.S. Department of Justice. On
May 14, 2009 the Authority was notified that the Corps referred the Base demand letter to the U.S.
Department of Justice on May 12, 2009.
The Salina Public Entities delivered on or about May 10, 2010, a settlement offer and a draft of a lawsuit
complaint to the attorney for the U.S. Department of Justice. The Salina Public Entities planned to file suit
against the U.S. if the matter was not settled by the end of May, 2010. The Salina Public Entities did not
intend to cut off settlement negotiations by the filing of suit, and this has been communicated to the U.S. No
remedial action plan or record of decision has been adopted by the EPA or KDHE.
62
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 5. OTHER INFORMATION (Continued)
H. Environmental Matters (Continued)
On or about May 27, 2010, the Salina Public Entities filed their Complaint against the United States of
America, the United States Department of Defense and Secretary of Defense, Robert M. Gates, in his
official capacity (collectively, "Defendants"). On or about September 22, 2010, the Salina Public Entities filed
their First Amended Complaint in four counts: Count I Citizen Suit Claim Pursuant to 42 U.S.C.§ 9659(a)(2),
Count II Citizen Suit Claim Pursuant to 42 U.S.C.§ 9659(a)(1), Count III Claim for Recovery of Response
Costs Pursuant to 42 U.S.C.§ 9607(a) and Count IV Claim for Declaratory Judgment Pursuant to 42
U.S.C.§ 9613(g)(2).
On or about October 6, 2010, Defendants filed their motion to dismiss and to strike, primarily with respect to
the citizen suit claims. On or about March 25, 2011, Judge Murguia entered hi s Memorandum and Order.
The Judge granted the Defendants' motion to di sm iss Counts I and II (citizen suit claims) for lack of subject
matter jurisdiction. He also granted the Defendants' motion to dismiss the Salina Public Entities' requests for
attorney fees, with the exception of non-litigation attorney fees. He denied the Defendants' motion to st rike
the Salina Public Entities' allegations of a conflict of interest. The Salina Public Entities' claims under Counts
III and IV for response costs under CERCLA 9607(a) are not affected by the Judge's rulings. The Salina
Public Entities di sagree with most of the Judge's filings and, if necessary, pl an to take an interlocutory
appeal to the Tenth Circuit to contest the rulings.
On or about April 22, 2011, Defendants filed their Answer to First Am ended Complaint and Counterclaim
against the Salina Public Entities. Count I of the Counterclaim alleges a claim for contribution under
CERCLA, 42 U.S.C.§ 9613(f)(1). Count II of the Counterclaim alleges a claim for cost recovery under
CERCLA, 42 U.S.C.§ 9607(a)(1). Count II alleges costs incurred by the U.S. Environmental Protection
Agency of approximately $1,838,241 as of September 30, 2007, and alleges costs incurred by the Corps of
approximately $14,915,228 as of April 17, 2009. The Salina Public Entities intend to vigorously contest the
claims brought against them and will assert, among other defenses, the third party defense under 42
U.S.C.§ 9607(b)(3).
The parties agreed on a mediation to discuss settlement. The mediation sessions occurred in October 2011,
and the mediation di scussions continued for ov er a year. The parties hav e now agreed upon a partial
settlement. The partial settlement includes payment by the U.S. in exchange for performance by the Salina
Public Entities of a remedial investigation/feasibility study through entry of a Corrective Action Decision by
KDHE (the "Work"). The present cost estimate of the Work is less than $10,000,000. The agreement is that
the U.S. will pay 90% of the cost of the Work with the Salina Public Entities responsible for payment of the
remaining 10%. It is anticipated that the agreed share of the Salina Public Entities will be paid by the City of
Salina. Also, the claims and counterclaims in the lawsuit hav e been di sm issed without prejudice with
provisions tolling any and all st atutes of limitation. No party is obligated under the settlement agreement to
implement the Corrective Action Decision upon its entry by KDHE, and the parties will either negotiate an
agreement to implement such Corrective Action Decision or refile their claims in court. The Salina Public
Entities have entered into a Consent Agreement and Final Order ("CAFO") with KDHE, which is conditioned
upon the U.S.'s payment to the City. On May 2, 2013, the U.S. District Court for the District of Kansas
entered its Consent Decree. City of Salina, Kansas, et al. v. United States of America, et al., Case No. 1 0-
CV -2298 CM/DJW . The Court's Consent Decree approved the settlement among the parties. The current
status is that the U.S. wire transferred $8,426,700 to the account of the City, and the City added the share of
the Salina Public Entities in the amount of $936,300 to the account.
The Remedial Inv estigation (RI) portion of the CAFO scope of work was completed during Q1 2018. The
Feasibility Study portion of the CAFO scope of work was al so completed during Q1 2018. The Feasibility
Study (FS) and Proposed Plan (PP) portions of the CAFO scope of work are scheduled to be completed
during Q2 2018 and submitted to KDHE. The Corrective Action Decision (CAD) document is scheduled to
be issued by KDHE during Q4 2018.
Although the claims and counterclaims in the lawsuit hav e been di sm issed without prejudice, the Authority
intends to vigorously pursue its claims that the U.S. should implement the Corrective Action Decision upon
63
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 5. OTHER INFORMATION (Continued)
H. Environmental Matters (Continued)
its entry by KDHE and its defenses against any claims brought against it. Based on presently known
information, the Authority has determined that while a possible liability exists, at this time, no reasonable
estimate of the possible liability can be made. Theref ore, no liability related to that matter has been
recorded.
I. Postemployment Health Care Plan
Plan Description. The City operates a si ngl e em ployer defined benefit healthcare pl an administered by the
City. The Employee Benefit Plan (the Plan) provides medical and dental benefits to eligible early retirees and
their spouses. KSA 12-5040 requires all local gov ernmental entities in the st ate that provide a group health
care plan to make participation available to all retirees and dependents until the retiree reaches the age of 65
years. No separate financial report is issued for the Plan.
Funding Policy. The contribution requirements of plan participants and the City are established and amended
by the City. The required contribution is based on projected pay-as-you-go financing requirements. Plan
participants contributed approximately $265,000 to the Plan (approximately 100% of total premiums) through
their required contribution of $525 per month for retiree-only coverage and $1,408 for family coverage.
Annual OPEB Cost and Net OPEB Obligation. The City’s annual other postemployment benefit (OPEB) cost
(expense) is calculated based on the annual required contribution of the employer (ARC), an amount
actuarially determined in accordance wi th the parameters of GASB Statement 45. The ARC represents a
level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any
unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years.
The following table shows the components of the City’s annual OPEB cost for the Plan for the year, the
am ount actually contributed to the plan, and the changes in the City’s net OPEB obligation to the Plan:
Annual required contribution 430,085$
Interest on Net OPEB Obligation 150,156
Adjustment to Annual Required Contribution [166,838]
Annual OPEB cost (expense)413,403
Benefit payments [265,000]
Change in net OPEB obligation 148,403
Net OPEB obligation - beginning of year 5,005,151
Net OPEB obligation - end of year 5,153,554$
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and the net OPEB
obligation for the year ended December 31, 2017 was as follows:
64
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
Note 5. OTHER INFORMATION (Continued)
I.Postemployment Health Care Plan (Continued)
Annual
Fiscal Annual OPEB Net
Year OPEB Cos t OP EB
Ended Cos t Contributed Obligation
Dec ember 31, 2013 570,434$ 148,000$ 3,986,743$
Dec ember 31, 2014 534,877 185,000 4,336,620
Dec ember 31, 2015 556,385 209,000 4,684,005
Dec ember 31, 2016 578,146 257,000 5,005,151
Dec ember 31, 2017 413,403 265,000 5,153,554
Funding Status and Funding Progress. As of the year ended Decem ber 31, 2017, the most recent actuarial
valuation date, the Plan was not funded. The actuarial accrued liability for benefits was $4,471,205 and the
actuarial value of asset was $0, resulting in an unfunded actuarial accrued liability (UAAL) of $4,471,205.
The covered payroll (annual payroll of active employees covered by the plan) was $23,770,671, and the ratio
of the UAAL to the covered payroll was 18.81%.
Actuarial valuations of an ongoing plan involv e estimates of the value of reported amounts and assumptions
about the probability of occurrence of ev ents far into the future. Examples include assumptions about future
em ployment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the
plan and the annual required contributions of the employer are subject to continual revision as actual results
are compared with past expectations and new estimates are made about the future. The schedule of funding
progress, presented as required supplementary information following the notes to the financial statement,
presents multiyear trend information about whether the actuarial value of plan assets (if any) are increasing or
decreasing over time relative to the actuarial accrued liabilities for benefits.
Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the
substantive plan (the pl an as understood by the employer and the pl an participants) and include the types of
benefits provided at the time of each valuation and the hi storical pattern of sharing of benefit costs between
the employer and pl an participants to that point. The actuarial methods and assumptions used include
techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the
actuarial value of assets, consistent with the long-term perspective of the calculations.
In the year ended December 31, 2017, actuarial valuation, the projected unit credit actuarial cost method was
used. The actuarial assumptions include a 3.00% investment rate of return, whi ch is the rate of the
em ployer’s own investments as there are no plan assets and an initial annual medical and dental healthcare
cost trend of 6.80%, reduced by decrements to an ultimate rate 4.10% after eighty years. The UAAL is being
am ortized as a level dollar over an open thirty-year period.
J.Deficit Fund Balance
The Police Grants Fund maintained a deficit fund balance of $[27,854] at December 31, 2017.
65
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
K.TAX ABATEMENTS
In 2017, the City of Salina participated in real property tax abatements for six local companies. Property tax
abatements are authorized under Kansas state statutes K.S.A. 12-1740 et seq. and K.S.A. 79-201a and
subject to City policy.
The City prov ides property tax abatements to encourage existing industry to expand, assist new business
start-ups, recruit new companies from out-of-st ate or internationally, encourage hi gh technology and research
based businesses, encourage training and development of Salina area employees, and encourage location
and retention of businesses whi ch are good "corporate citizens" that will add to the quality of life in the
community through leadership and support of civ ic and philanthropic organizations. Property tax abatements
reduce ad valorem property taxes. The percentage of reduction ranges from 40.5% to 100%, but in all cases,
the maximum duration is for ten years as per state st atute. To receive an abatement, applicants must submit
an application, which undergoes due diligence and analysis before being considered by the City Commission.
If the abatement is authorized, the applicant must sign a performance agreement that specifies annual
compliance measures. Each year, the applicant submits a renewal application, al ong with compliance
information, which is reviewed by City st aff for conformance with agreement prov isions. If compliance is not
met, appeals can be made to the City Commission to determine the amount of incentives, if any, to be
received by the property owner. The City of Salina negotiates property tax abatements on an individual basis.
Co mpany Sta rt En d %
2017
Ta x
Aba te d
Salina Vortex Corp (fac ility improvements)2015 2024 75% $ 20,981
Bergkamp (facility addition/improvements)2010 2019 50%6,486
Great Plains Mfg (facility improvements)2014 2023 100%-
Veris Tec hnologies (fac ility addition/improvement s)2015 2024 40.5%1,925
Twi n Oaks (fac ility addition/improvements)2015 2024 55%2,602
Salina Field House (facility)2017 2026 100%27,401
Tota l 59,395$
Ad Valorem Property Tax Aba te ments
Tax Increment Financing (TIF).TIFs are an economic development tool established by the Kansas TIF Act
(K.S.A. 12-1770 et seq.) and subject to City policy to aid in financing projects for substantial public benefit.
Public benefits can include creating jobs or retaining existing employment, eliminating blight, strengthening the
em ployment and economic base of the City, increasing property values and tax revenues, reducing pov erty,
creating economic st ability, upgrading older neighborhoods, facilitating economic self-sufficiency, promoting
projects that are of community wide importance, or implementing the economic development goals of the City.
The program works by reimbursing a portion of the incremental increase in property taxes resulting from
improvements and a portion of local sales tax generated within the di st rict to the property owner. The base
value, or what the property was valued at prior to improvements, is shielded from the rebate.
To receive a TIF, applicants must submit a detailed, written proposal to the City, which will undergo due
diligence and analysis before being considered by the City Commission. The City Commission then
determines if it will commence the statutory process to create a redevelopment district.
If the TIF di strict is authorized, the City and applicant will enter into an agreement that specifies performance,
certification, and reimbursement requirements. City Staff will work with the property owner to certify eligible
expenses and compliance with agreement provisions. Once the project begins to generate TIF rev enues
(sales tax and/or property tax), City staff works with the di st ributing agency and property owner to generate
and track reimbursements. Because reimbursements are not paid until after improvements are put in place,
agreement compliance is met, eligible expenses are certified, and sales and/or property tax di stributions are
made to the City, there are no prov isions for recapturing tax es. The City of Salina negotiates TIFs on an
individual basis.
66
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
K.TAX ABATEMENTS (Continued)
District Purpose Ba se Year Ex pires Sales Tax Property Tax
Lambertz
Construction of 10.79 acres of shopping
center, including single and multi-tenant
retail space, and related public and private
infrastructure 2007 2027 $ 212,624 $ 258,932
Total 212,624$ 258,932$
TIF Project Plans
2017 Reimbursements
Community Improvement Districts (CID). CIDs are an economic dev elopment tool established by the Kansas
CID Act (K.S.A. 12-6a26 et seq.) and subject to City policy to assist with the dev elopment of community
improvements which can benefit a dev elopment and the public. In all CIDs, public improvements were
financed initially by the developer and are reimbursed annually via a two percent (2%) transportation di strict
sales tax on retail or taxable services occurring within the district.
To establish a CID, the applicant first submits a CID petition which is si gned by the owners of all of the land
within the proposed di strict. The City Commission then considers the request to establish a CID.
If the CID is authorized, the City and applicant will enter into an agreement that specifies performance,
certification, and reimbursement requirements. City Staff will work wi th the property owner to certify eligible
ex penses and compliance with agreement prov isions. Once the project begins to generate CID revenues,
City Staff works with the distributing agency and property owner to make and track reimbursements. Because
reimbursements are not pai d until after improvements are put in place, agreement compliance is met, eligible
ex penses are certified, and CID sales tax di stributions are made to the City, there are no provisions for
recapturing taxes. The City of Salina negotiates CIDs on an individual basis.
Na me Ra te Start Ex pires Purpose
2017 Eligible
Re imbursement
Am ount*
South 9th Street 2.00%3/1/2016 12/31/2037
Assist with improvements to hotel
and conference center $ 154,154
Tota l 154,154$
* Reimbursement was not actually paid to developer until Jan. 2018
Community Improvement District (CID)
Neighborhood Revitalization Areas (NRA).NRAs are authorized under Kansas state st atutes K.S.A. 12-117
and subject to City policy to spur investment and rev italization of properties which can benefit a neighborhood
and the public. The program works by rebating a portion of the incremental increase in property taxes resulting
from improvements back to the property owner. The base value, or what the property was valued at prior to
improvements, is shielded from the rebate. Participation in the program and percentage of rebate and
duration are determined separately by the City, County, and School District. The current City of Salina
adopted plan is a 4 year plan running from 2014 –2018. It allows for a 10 year rebate and provides rebates
from 25% to 100% depending on year in plan and type of improvement. To receive an NRA, taxpayers must
submit an application, which undergoes due diligence and analysis before being approved by the City. If the
NRA is approved, each year, the applicant must submit proof that property tax es hav e been paid in full.
Because the rebate is not given until after improvements are put in place and property taxes paid, there are no
provisions for recapturing taxes. The City of Salina approves NRAs on an individual basis.
67
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2017
K.TAX ABATEMENTS (Continued)
2017
Property/Business Na me Address Type Re bate Paid
Weis Fire & Safety Improvement #2 Com 353$
Erick Mendenhal1 1325 N. 3rd Res 49
Annie/Arlene Lewis 1005 N. 10th Street Res 6
Michelle Malone 809 N. 2nd Street Res 21
Boyd E. Smith Trust 148 S. Santa Fe Res 104
Boyd E. Smith Trust 148 S. Santa Fe Com 121
Welsh Inves tments LLC 300 S. 9th Street Com 1,130
Leon Marrs Trust 740 N. 2nd Street Res 37
Johnny M. & Sung Hee Kim 233A S. Fourth Street Res 153
Pioneer Presidents Place LP 210 W.Mulberry Street Com 2,472
Christpher Helm 613 N 5th Street Com 427
Paul Foster 523 N. 11th Res 31
James M. Monroe 620 W. Hamilton Street Res 136
Chanel Thomas 241 N. Front Street Res 115
Christina Litwiller 148 N. 12th Street Res 77
Jeremy Cessna 219 N. Front Street Res 82
Troy & Dawn Cramer 1101 N. 10th Res 14
William & Mary Warhurst 714 Park Street Res 52
Holly Fain 204 Forest Avenue Res 94
Arlene Cox 200 Forest Avenue Res 95
Gloria Williams 903 N. 10th Street Res 89
Michelle Rogan 240 S. Clark Street Res 109
Samuel A. Rock 1329 N. 4th Street Res 21
Jessica A. Ziegler 221 N. 2nd Street Res 90
Devin or Jessica Know 207 N. Penn Res 277
Ravey Investments LLC 157 N. Seventh, 203 W. Ash, 205 W. Ash, 207 W. Ash & 209 W. Ash Com 1,116
Lamont Outland 1206 N. 7th Street Res 200
Michelle Bunch 634 N. 8th Street Res 212
Jermaine and Tykea Polk 226 N. 2nd Street Res 107
Mary Marshall 937 N. 3rd Street Res 184
Angela Fishburn 1219 N. 8th Street Res 184
Kress Building LLC 134 S. Santa Fe Ave Com 509
Heritage at Hawthorne Partners, LLC 715 N. 9th Street Com 1,523
Will & Mary Warhurst 809 W. Ash Res 228
Donnie & Ramona Marrs 2035 E. Iron #300R Res 815
TJTM, Inc .2035 E. Iron #213C Res 92
Troy Valcil 853 Navaho Res 111
Michelle Malone 815 N. 2nd Street Res 23
Timothy & Linda Rickman 719 E. Ash Res 134
Yvet te Gelinas 1115 N. 8th Street Res 201
Charles H Carroll Jr Trust 156-158 S. Santa Fe Com 2,576
Pestinger Enterprises LLC 2035 East Iron, Unit 306R Res 449
Latisha Pierce 705 N. 2nd Street Res 244
Tany a Shiehzadeh 703 N. 2nd Street Res 220
Robert & Brenda Burns 1205 N. 4th Street Res 174
Property Partners LLC 116 & 118 N. Santa Fe (2nd Floor Loft Apartments)Com 2,466
Phill Hemmer 2035 E. Iron Avenue, Unit #203R Res 1,843
Curtis and Rebecca Schlosser 2035 E. Iron Avenue, Unit #206R Res 960
Daryl Bixby Construction Co.156-158 N. 11th Street Com 516
Traniesh Byrd 701 N. 2nd Street Res 199
TJTM Inc 2035 E. Iron #105R Com 702
TJTM Inc 2035 E. Iron #302R Com 636
TJTM Inc 2035 E. Iron #202R Com 756
TJTM Inc 2035 E. Iron #205R Com 310
Mark Martin Living Trust 2035 E. Iron #104R Com 717
Total 24,560$
Ne ighborhood Revitalization Act (NRA)
REQUIRED SUPPLEMENTARY INFORMATION
68
CITY OF SALINA, KANSAS
OTHER POST-EMPLOYMENT BENEFITS
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2017
Schedule of Employer Contributions:
Annual
Fiscal Annual OPEB Net
Year OPEB Cost OPEB
Ended Cost Contributed Obligation
December 31, 2013 570,434$ 148,000$ 3,986,743$
December 31, 2014 534,877 185,000 4,336,620
December 31, 2015 556,385 209,000 4,684,005
December 31, 2016 578,146 257,000 5,005,151
December 31, 2017 413,403 265,000 5,153,554
Schedule of Funding Progress:
UAAL as
Actuarial Actuarial Actuarial Unfunded Funded Covered Percent of
Valuation Value of Accrued AAL Ratio Payroll Payroll
Date Assets (a)Liability (b)(b) - (a)(a/b)(c)(b-a)/(c)
12/31/2013 -$ 5,579,912$ 5,579,912$ 0.0% 22,283,185$ 25.04%
12/31/2014 - 5,538,770 5,538,770 0.0% 22,156,127 25.00%
12/31/2015 - 5,538,770 5,538,770 0.0% 22,958,300 24.13%
12/31/2016 - 5,538,770 5,538,770 0.0% 23,245,887 23.83%
12/31/2017 - 4,471,205 4,471,205 0.0% 23,770,671 18.81%
69
CITY OF SALINA, KANSAS
KPERS PENSION PLAN
REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED)
December 31, 2017
Schedule of the City’s Proportionate Share of the Net Pension Liability
Last Ten Fiscal Years*
Police and Police and Police and
Local Firemen Local Firemen Local Firemen
12/31/15 12/31/15 12/31/16 12/31/16 12/31/17 12/31/17
City's proportion of the net pension liability 0.764%2.258%0.761%2.180%0.811%2.191%
City's proportionate share of the net pension liability 10,027,679$16,395,794$11,770,699$20,251,512$11,753,246$20,546,882$
City's covered-employee payroll 12,931,197$10,161,866$13,371,550$10,799,898$13,606,499$10,606,934$
City's proportionate share of the net pension liability
as a percentage of its covered-employee payroll 77.55%161.35%88.03%187.52%86.38%193.71%
Plan fiduciary net position as a percentage of the total pension liability 71.98%74.60%68.55%69.30%72.15%70.99%
* - The amounts presented for each fiscal year were determined as of 12/31. Data became
available with the inception of GASB 68 during fiscal year 2015, therefore 10 years of
data is unavailable.
Schedule of the City’s Contributions
Last Ten Fiscal Years*
Police and Police and Police and
Local Firemen Local Firemen Local Firemen
12/31/15 12/31/15 12/31/16 12/31/16 12/31/17 12/31/17
Contractually required contribution 1,256,217$ 2,527,995$ 1,243,711$ 2,361,273$ 1,179,745$ 1,986,933$
Contributions in relation to the contractually
required contribution 1,256,217 2,527,995 1,243,711 2,361,273 1,179,745 1,986,933
Contribution deficiency [excess]-$ -$ -$ -$ -$ -$
City's covered-employee payroll 13,251,236$10,730,033$13,548,056$10,593,419$13,944,989$10,441,055$
Contributions as a percentage of covered
employee payroll 9.48%23.56%9.18%22.29%8.46%19.03%
* - Data became available with the inception of GASB 68
during fiscal year 2015, therefore 10 years of data is
unavailable.
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
70
CITY OF SALINA, KANSAS
COMBINING STATEMENTS -NONMAJOR FUNDS
Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for
particular purposes.
Bicentennial center fund -To account for the activities of the City's convention center.
Business improvement di strict fund -State law allows businesses within an area to voluntarily establish an
improvement City. This fund is used to account for the assessments made on the District. All revenues are to be
used within the Business Improvement District.
Neighborhood park fund -To account for fees collected from new residential building projects in Salina.
Ex penditures are for acquisition or development of neighborhood parks in the growing areas of the community.
Special parks and recreation fund -To account for liquor tax rev enues, whi ch must be used for park maintenance
and improvements.
Special alcohol fund -To account for liquor tax revenues, which must be used for programs, which address
prevention, education or intervention for drug and alcohol abuse.
Community dev elopment revolv ing fund -To account for funds, whi ch may be loaned for housing and economic
development,purposes, to later be repaid and reused on a revolving basis.
Sales tax economic dev elopment fund -To account for 12.5% of the 1/4 cent sales tax designated for economic
Development purposes.
Downtown TIF District #1 fund –To account for revenues and expenditures related to the Tax Increment Financing
District that was formed as part of the Downtown Revitalization Project.
South 9th CID fund -To account for incremental sales tax revenues received and disbursed back to the developer as
part of the Community Improvement District formed in 2015.
State Grants fund –To account for grant revenue and expenditures received from the State of Kansas.
911 communications fund -To account for transitioning the receipt and administration of 911 fees to the City from
the Kansas Department of Revenue and Saline County,as the City is now the public answering point. Monies will be
used to pay for 911 related services.
Kenwood cov e capital fund -To account for the Special Sales Tax proceeds to be used to provide for long-term
capital maintenance activity at the facility.
Special law enforcement fund -To account for revenues received from the sale of forfeited assets acquired during
drug enforcement activities. Expenses are limited to capital items to be used for further drug enforcement activities.
Police grants fund -To account for revenues from grants, which are to be used for special police activities, including
the D.A.R.E. program
Federal grants fund -To account for grants received from the federal government to be used to monitor and mediate
fair housing complaints.
D.A.R.E. donations fund -To account for donations to the D.A.R.E. program.
War memorial maintenance fund -To account for monies to be used for maintenance of the local war memorial.
Arts & humanities fund -To account for revenues and expenses associated with arts and humanities activities.
Federal CARE grant fund -To account for revenue and expenses associated with the CARE Grant.
Police Department federal forfeiture funds -To account for revenue and expenses associated with federal Equitable
Sharing Program funds.
71
CITY OF SALINA, KANSAS
COMBINING STATEMENTS -NONMAJOR FUNDS
NONMAJOR SPECIAL REVENUE FUNDS -CONTINUED
Homeowners’ assistance fund -To receive donations and/or other funds to assist low and moderate income persons
in improving their homes.
Private grants fund –To account for revenues and expenditures related to grants received from private entities with
specific purposes.
Animal shelter donations fund –To accumulate donations and account for expenses to benefit the animal shelter.
NONMAJOR PERMANENT FUNDS
Permanent funds are used to report resources that are legally restricted to the extent that onl y earnings, not
principal, may be used for purposes that support the reporting government’s programs.
Cemetery endowment fund -To account for amounts ex pended for perpetual care of the City cemetery. Interest
earnings are used for cemetery maintenance.
Mausoleum endowment fund -To account for amounts charged for perpetual care of the City mausoleum. Interest
earnings are used for mausoleum maintenance.
Tricentennial commission fund -To account for donations to be used to celebrate the nation's tricentennial in the
year 2076.
Total Total Nonmajor Total
Nonmajor Nonmajor Debt Nonmajor
Special Revenue Permanent Service Governmental
Funds Funds Fund Funds
ASSETS
Cash and investments 3,001,083$ 501,693$ 1,037,888$ 4,540,664$
Receivables
Accounts 2,864 - - 2,864
Total assets 3,003,947$ 501,693$ 1,037,888$ 4,543,528$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 162,754$ -$ -$ 162,754$
Due to other funds 27,854 - - 27,854
Total liabilities 190,608 - - 190,608
Fund balances:
Restricted 357,163 - 1,037,888 1,395,051
Committed 2,484,030 501,693 - 2,985,723
Assigned - - - -
Unassigned [27,854] - - [27,854]
Total fund balances 2,813,339 501,693 1,037,888 4,352,920
Total liabilities and fund balances 3,003,947$ 501,693$ 1,037,888$ 4,543,528$
CITY OF SALINA, KANSAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2017
See independent auditor's report on the financial statements.
72
Total Total Nonmajor Total
Nonmajor Nonmajor Debt Nonmajor
Special Revenue Permanent Service Governmental
Funds Funds Fund Funds
REVENUES
Taxes 580,766$ -$ -$ 580,766$
Intergovernmental 851,416 - 621,860 1,473,276
Charges for services 469,766 10,619 - 480,385
Licenses and permits 5,300 - - 5,300
Investment revenue 22,421 1,828 3,929 28,178
Donations 110,606 - - 110,606
Miscellaneous 77,763 - - 77,763
Total revenues 2,118,038 12,447 625,789 2,756,274
EXPENDITURES
Current
Culture and recreation 1,718,877 - - 1,718,877
Public safety 223,912 - - 223,912
Public health and sanitation 347,442 - - 347,442
Planning and development 86,832 - - 86,832
Miscellaneous - 35 - 35
Debt service
Principal retirement - - 180,000 180,000
Interest and other charges - - 90,935 90,935
Capital outlay 751,068 - - 751,068
Total expenditures 3,128,131 35 270,935 3,399,101
Excess [deficiency] of revenues
over [under] expenditures [1,010,093] 12,412 354,854 [642,827]
Other financing sources [uses]
Transfers in 1,310,983 - - 1,310,983
Transfers [out]- - - -
Total other financing sources [uses]1,310,983 - - 1,310,983
Net change in fund balance 300,890 12,412 354,854 668,156
Fund balance - Beginning of year 2,512,449 489,281 683,034 3,684,764
Fund balance - End of year 2,813,339$ 501,693$ 1,037,888$4,352,920$
For the Year Ended December 31, 2017
CITY OF SALINA, KANSAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
See independent auditor's report on the financial statements.
73
Business Special
Bicentennial Improvement Neighborhood Parks &Special
Center District Park Recreation Alcohol
ASSETS
Cash and investments 143,841$ 13,304$ 21,599$ 124,221$ 164$
Receivables
Accounts - 2,864 - - -
Total assets 143,841$ 16,168$ 21,599$ 124,221$ 164$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 85,861$ -$ -$ -$ -$
Due to other funds - - - - -
Total liabilities 85,861 - - - -
Fund balance:
Restricted - 16,168 - 124,221 164
Committed 57,980 - 21,599 - -
Assigned - - - - -
Unassigned - - - - -
Total fund balance [deficit]57,980 16,168 21,599 124,221 164
Total liabilities and fund balances 143,841$ 16,168$ 21,599$ 124,221$ 164$
CITY OF SALINA, KANSAS
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
43100
Community Sales Tax Downtown
Development Economic TIF South State 911
Revolving Development District #1 9th CID Grants Communications
185,112$ 1,052,103$ 101,631$ 290,851$ 6,436$ 374,898$
- - - - - -
185,112$ 1,052,103$ 101,631$ 290,851$ 6,436$ 374,898$
-$ 50,000$ -$ -$ -$ 9,670$
- - - - - -
- 50,000 - - - 9,670
185,112 - - - - -
- 1,002,103 101,631 290,851 6,436 365,228
- - - - - -
- - - - - -
185,112 1,002,103 101,631 290,851 6,436 365,228
185,112$ 1,052,103$ 101,631$ 290,851$ 6,436$ 374,898$
See independent auditor's report on the financial statements.
74
Kenwood Special
Cove Law Police Federal DARE
Capital Enforcement Grants Grants Donations
ASSETS
Cash and investments 101,852$ 81$ -$ 3,304$ 18,824$
Receivables
Accounts - - - - -
Total assets 101,852$ 81$ -$ 3,304$ 18,824$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 7,689$ -$ -$ -$ 235$
Due to other funds - - 27,854 - -
Total liabilities 7,689 - 27,854 - 235
Fund balance:
Restricted - - - - -
Committed 94,163 81 - 3,304 18,589
Assigned - - - - -
Unassigned - - [27,854] - -
Total fund balance [deficit]94,163 81 [27,854] 3,304 18,589
Total liabilities and fund balances 101,852$ 81$ -$ 3,304$ 18,824$
CITY OF SALINA, KANSAS
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS (Continued)
43100
Police
War Federal Department Animal
Memorial Arts &CARE Federal Homeowners'Private Shelter
Maintenance Humanities Grant Forfeiture Funds Assistance Grants Donations Totals
32,291$ 109,993$ 25,973$ 98$ 11,440$ 5,525$ 377,542$ 3,001,083$
- - - - - - - 2,864
32,291$ 109,993$ 25,973$ 98$ 11,440$ 5,525$ 377,542$ 3,003,947$
225$ 4,680$ -$ -$ -$ -$ 4,394$ 162,754$
- - - - - - - 27,854
225 4,680 - - - - 4,394 190,608
- - 25,973 - - 5,525 - 357,163
32,066 105,313 - 98 11,440 - 373,148 2,484,030
- - - - - - - -
- - - - - - - [27,854]
32,066 105,313 25,973 98 11,440 5,525 373,148 2,813,339
32,291$ 109,993$ 25,973$ 98$ 11,440$ 5,525$ 377,542$ 3,003,947$
See independent auditor's report on the financial statements.
75
Business Special
Bicentennial Improvement Neighborhood Parks &Special
Center District Park Recreation Alcohol
Revenues
Taxes -$ -$ -$ -$ -$
Intergovernmental - - - 202,255 202,255
Charges for services - 79,117 - - -
Licenses and permits - - 5,300 - -
Investment revenue 12,513 47 94 642 30
Donations - - - - -
Miscellaneous - - - - -
Total Revenues 12,513 79,164 5,394 202,897 202,285
Expenditures
Current
Culture and recreation 738,507 - - - -
Public safety - - - - -
Public health and sanitation - - - - 202,255
Planning and development - 72,197 - - -
Capital outlay - - 32,139 211,320 -
Total Expenditures 738,507 72,197 32,139 211,320 202,255
Excess [deficiency] of revenues over
[under] expenditures [725,994] 6,967 [26,745] [8,423] 30
Other financing sources [uses]
Transfers in 742,633 - - - -
Transfers [out]- - - - -
Total other financing sources [uses]742,633 - - - -
Net change in fund balance 16,639 6,967 [26,745] [8,423] 30
Fund balance, beginning of year 41,341 9,201 48,344 132,644 134
Fund balance, end of year 57,980$ 16,168$ 21,599$ 124,221$164$
CITY OF SALINA, KANSAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
For the Year Ended December 31, 2017
Community Sales Tax Downtown
Development Economic TIF South State 911
Revolving Development District #1 9th CID Grants Communications
-$ 335,247$ 88,219$ 157,300$ -$ -$
- - - - 10,974 331,339
- - - - - -
- - - - - -
681 4,060 336 713 22 1,122
- - - - - -
- - - 10,371 - -
681 339,307 88,555 168,384 10,996 332,461
- - - - - -
- - - - - 223,912
- - - - - -
- - - - - -
- 441,606 - - - -
- 441,606 - - - 223,912
681 [102,299] 88,555 168,384 10,996 108,549
- - - - - -
- - - - - -
- - - - - -
681 [102,299] 88,555 168,384 10,996 108,549
184,431 1,104,402 13,076 122,467 [4,560] 256,679
185,112$ 1,002,103$ 101,631$ 290,851$ 6,436$ 365,228$
See independent auditor's report on the financial statements.
76
Kenwood Special
Cove Law Police Federal DARE
Capital Enforcement Grants Grants Donations
Revenues
Taxes -$ -$ -$ -$ -$
Intergovernmental - - 21,033 - -
Charges for services - - - - -
Licenses and permits - - - - -
Investment revenue 180 1 - 50 54
Donations - - - - -
Miscellaneous - - - - 18,707
Total Revenues 180 1 21,033 50 18,761
Expenditures
Current
Culture and recreation - - - - -
Public safety - - - - -
Public health and sanitation - - - - -
Planning and development - - - - 14,635
Capital outlay 46,276 2,800 16,927 - -
Total Expenditures 46,276 2,800 16,927 - 14,635
Excess [deficiency] of revenues over
[under] expenditures [46,096][2,799] 4,106 50 4,126
Other financing sources [uses]
Transfers in 68,350 - - - -
Transfers [out]- - - - -
Total other financing sources [uses]68,350 - - - -
Net change in fund balance 22,254 [2,799] 4,106 50 4,126
Fund balance, beginning of year 71,909 2,880 [31,960] 3,254 14,463
Fund balance, end of year 94,163$81$ [27,854]$ 3,304$ 18,589$
CITY OF SALINA, KANSAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS (Continued)
For the Year Ended December 31, 2017
Police
War Federal Department Animal
Memorial Arts &CARE Federal Homeowners'Private Shelter
Maintenance Humanities Grant Forfeiture Funds Assistance Grants Donations Totals
-$ -$ -$ -$ -$ -$ -$ 580,766$
- - 8,560 - - - 75,000 851,416
- 390,649 - - - - - 469,766
- - - - - - - 5,300
118 93 96 - 38 3 1,528 22,421
- - - - - - 110,606 110,606
- 40,464 - - 2,699 5,522 - 77,763
118 431,206 8,656 - 2,737 5,525 187,134 2,118,038
345 980,025 - - - - - 1,718,877
- - - - - - - 223,912
- - - - - - 145,187 347,442
- - - - - - - 86,832
- - - - - - - 751,068
345 980,025 - - - - 145,187 3,128,131
[227] [548,819] 8,656 - 2,737 5,525 41,947 [1,010,093]
- 500,000 - - - - - 1,310,983
- - - - - - - -
- 500,000 - - - - - 1,310,983
[227] [48,819] 8,656 - 2,737 5,525 41,947 300,890
32,293 154,132 17,317 98 8,703 - 331,201 2,512,449
32,066$ 105,313$ 25,973$ 98$ 11,440$ 5,525$ 373,148$2,813,339$
See independent auditor's report on the financial statements.
77
Cemetery Mausoleum Tricentennial
ASSETS Endowment Endowment Commission Total
Cash and investments 493,866$ 2,029$ 5,798$ 501,693$
Total assets 493,866$ 2,029$ 5,798$ 501,693$
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable -$ -$ -$ -$
Total liabilities - - - -
Fund balances
Committed 493,866 2,029 5,798 501,693
Total liabilities and fund balances 493,866$ 2,029$ 5,798$ 501,693$
CITY OF SALINA, KANSAS
COMBINING BALANCE SHEET
December 31, 2017
NONMAJOR PERMANENT FUNDS
See independent auditor's report on the financial statements.
78
Cemetery Mausoleum Tricentennial
Endowment Endowment Commission Total
Revenues
Charges for services 10,619$ -$ -$ 10,619$
Investment revenue 1,798 8 22 1,828
Total revenues 12,417 8 22 12,447
Expenditures
Miscellaneous 35 - - 35
Total expenditures 35 - - 35
Net change in fund balance 12,382 8 22 12,412
Fund balances - beginning of year 481,484 2,021 5,776 489,281
Fund balances - end of year 493,866$ 2,029$ 5,798$ 501,693$
NONMAJOR PERMANENT FUNDS
For the Year Ended December 31, 2017
CITY OF SALINA, KANSAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
See independent auditor's report on the financial statements.
79
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
BICENTENNIAL CENTER FUND
For the Year Ended December 31, 2017
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Investment revenue 12,513$ -$ -$ 12,513$
Total revenues 12,513 - - 12,513
Expenditures
Culture and recreation 738,507 750,000 750,000 11,493
Total expenditures 738,507 750,000 750,000 11,493
Excess [deficiency] of revenues
over [under] expenditures [725,994] [750,000] [750,000] 24,006
Other financing sources [uses]
Transfers in 742,633 720,000 720,000 22,633
Total other financing sources [uses]742,633 720,000 720,000 22,633
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]16,639 [30,000] [30,000] 46,639
Unreserved fund balance, January 1 41,341 214,254 214,254 [172,913]
Unreserved fund balance/GAAP fund balance
December 31 57,980$ 184,254$ 184,254$ [126,274]$
Budgeted Amounts
See independent auditor's report on the financial statements.
80
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
BUSINESS IMPROVEMENT DISTRICT FUND
For the Year Ended December 31, 2017
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services 77,493$ 89,175$ 89,175$ [11,682]$
Investment revenue 47 15 15 32
Total revenues 77,540 89,190 89,190 [11,650]
Expenditures
Planning and development 72,197 89,175 89,175 16,978
Total expenditures 72,197 89,175 89,175 16,978
Excess [deficiency] of revenues
over [under] expenditures 5,343 15 15 5,328
Unreserved fund balance, January 1 7,961 4,754 4,754 3,207
Unreserved fund balance, December 31 13,304 4,769$ 4,769$ 8,535$
Reconciliation to GAAP
Accounts receivable 2,864
GAAP Fund Balance, December 31 16,168$
Budgeted Amounts
See independent auditor's report on the financial statements.
81
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
NEIGHBORHOOD PARK FUND
For the Year Ended December 31, 2017
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Licenses and permits 5,300$ 10,000$ 10,000$ [4,700]$
Investment revenue 94 500 500 [406]
Total revenues 5,394 10,500 10,500 [5,106]
Expenditures
Capital outlay 32,139 95,073 95,073 62,934
Total expenditures 32,139 95,073 95,073 62,934
Excess [deficiency] of revenues
over [under] expenditures [26,745] [84,573] [84,573] 57,828
Unreserved fund balance, January 1 48,344 84,573 84,573 [36,229]
Prior year cancelled encumbrances - - - -
Unreserved fund balance, December 31 21,599 -$ -$ 21,599$
Reconciliation to GAAP
Current year encumbrances -
GAAP Fund Balance, December 31 21,599$
Budgeted Amounts
See independent auditor's report on the financial statements.
82
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
SPECIAL PARKS AND RECREATION FUND
For the Year Ended December 31, 2017
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Intergovernmental 202,255$ 190,082$ 190,082$ 12,173$
Investment revenue 642 4,000 4,000 [3,358]
Total revenues 202,897 194,082 194,082 8,815
Expenditures
Capital outlay 194,000 194,000 194,000 -
Total expenditures 194,000 194,000 194,000 -
Excess [deficiency] of revenues
over [under] expenditures 8,897 82 82 8,815
Other financing sources [uses]
Transfers [out]- - - -
Total other financing sources [uses]- - - -
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]8,897 82 82 8,815
Unreserved fund balance, January 1 104,904 51,169 51,169 53,735
Prior year cancelled encumbrances 10,420 - - 10,420
Unreserved fund balance, December 31 124,221 51,251$ 51,251$ 72,970$
Reconciliation to GAAP
Current year encumbrances -
GAAP Fund Balance, December 31 124,221$
Budgeted Amounts
See independent auditor's report on the financial statements.
83
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
SPECIAL ALCOHOL FUND
For the Year Ended December 31, 2017
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Intergovernmental 202,255$ 216,086$ 216,086$ [13,831]$
Investment revenue 30 - - 30
Total revenues 202,285 216,086 216,086 [13,801]
Expenditures
Public health and sanitation 202,255 216,086 216,086 13,831
Total expenditures 202,255 216,086 216,086 13,831
Excess [deficiency] of revenues
over [under] expenditures 30 - - 30
Unreserved fund balance, January 1 134 - - 134
Unreserved fund balance/GAAP fund balance
December 31 164$ -$ -$ 164$
Budgeted Amounts
See independent auditor's report on the financial statements.
84
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
SALES TAX ECONOMIC DEVELOPMENT FUND
For the Year Ended December 31, 2017
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Taxes 335,247$ 649,849$ 649,849$ [314,602]$
Investment revenue 4,060 5,000 5,000 [940]
Total revenues 339,307 654,849 654,849 [315,542]
Expenditures
Capital outlay 441,606 1,474,000 1,474,000 1,032,394
Total expenditures 441,606 1,474,000 1,474,000 1,032,394
Excess [deficiency] of revenues
over [under] expenditures [102,299] [819,151] [819,151] 716,852
Unreserved fund balance, January 1 1,104,402 869,281 869,281 235,121
Unreserved fund balance/GAAP fund balance
December 31 1,002,103$ 50,130$ 50,130$ 951,973$
Budgeted Amounts
See independent auditor's report on the financial statements.
85
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
ARTS & HUMANITIES FUND
For the Year Ended December 31, 2017
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services 390,649$ 480,350$ 480,350$ [89,701]$
Investment revenue 93 2,000 2,000 [1,907]
Miscellaneous 40,464 500 500 39,964
Total revenues 431,206 482,850 482,850 [51,644]
Expenditures
Culture and recreation 980,025 1,016,988 1,016,988 36,963
Total expenditures 980,025 1,016,988 1,016,988 36,963
Excess [deficiency] of revenues
over [under] expenditures [548,819] [534,138] [534,138] [14,681]
Other financing sources [uses]
Transfers in 500,000 500,000 500,000 -
Transfers [out]- - - -
Total other financing sources [uses]500,000 500,000 500,000 -
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses][48,819] [34,138] [34,138] [14,681]
Unreserved fund balance, January 1 154,132 138,327 138,327 15,805
Unreserved fund balance/GAAP fund balance
December 31 105,313$ 104,189$ 104,189$ 1,124$
Budgeted Amounts
See independent auditor's report on the financial statements.
86
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
DEBT SERVICE FUND
For the Year Ended December 31, 2017
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Taxes
Real estate taxes 2,433,770$ 2,691,197$ 2,691,197$ [257,427]$
Delinquent taxes 52,896 55,000 55,000 [2,104]
Motor vehicle taxes 374,874 365,992 365,992 8,882
Special assessments 1,538,904 1,635,000 1,635,000 [96,096]
Investment revenue 17,102 2,500 2,500 14,602
Miscellaneous - 75,000 75,000 [75,000]
Total revenues 4,417,546 4,824,689 4,824,689 [407,143]
Expenditures
Debt Service
Principal retirement 4,907,918 5,157,920 5,157,920 250,002
Interest and other charges 1,490,423 2,086,687 2,086,687 596,264
Total expenditures 6,398,341 7,244,607 7,244,607 846,266
Excess [deficiency] of revenues
over [under] expenditures [1,980,795] [2,419,918] [2,419,918] 439,123
Other financing sources [uses]
Issuance of bonds 1,000 - - 1,000
Premium on bonds 16,751 - - 16,751
Transfers in 2,241,309 2,000,000 2,000,000 241,309
Total other financing sources [uses]2,259,060 2,000,000 2,000,000 259,060
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]278,265 [419,918] [419,918] 698,183
Unreserved fund balance,
January 1 1,184,289 419,918 419,918 764,371
Unreserved fund balance
December 31 1,462,554 -$ -$ 1,462,554$
Reconciliation to GAAP
Taxes receivable 2,521,302
Deferred revenue [2,473,993]
GAAP Fund Balance, December 31 1,509,863$
Budgeted Amounts
See independent auditor's report on the financial statements.
87
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN NET ASSETS - BUDGET AND ACTUAL (NON - GAAP BASIS)
SOLID W ASTE DISPOSAL FUND
For the Year Ended December 31, 2017
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services 3,160,158$ 2,047,479$ 2,047,479$ 1,112,679$
Investment revenue 14,079 4,000 4,000 10,079
Miscellaneous 20,552 49,310 49,310 [28,758]
Total revenues 3,194,789 2,100,789 2,100,789 1,094,000
Expenditures
Public works 1,449,639 1,678,330 1,678,330 228,691
Total expenditures 1,449,639 1,678,330 1,678,330 228,691
Excess [deficiency] of revenues
over [under] expenditures 1,745,150 422,459 422,459 1,322,691
Other financing sources [uses]
Transfers [out][905,000] [707,000] [707,000] [198,000]
Total other financing sources [uses][905,000] [707,000] [707,000] [198,000]
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]840,150 [284,541] [284,541] 1,124,691
Unreserved fund balances, January 1 3,040,780 2,090,260 2,090,260 950,520
Unreserved fund balances, December 31 3,880,930$ 1,805,719$ 1,805,719$ 2,075,211$
Budgeted Amounts
See independent auditor's report on the financial statements.
88
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN NET ASSETS - BUDGET AND ACTUAL (NON - GAAP BASIS)
WATER AND SEWER FUND
For the Year Ended December 31, 2017
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services 19,663,406$ 19,625,000$ 19,625,000$ 38,406$
Investment revenue 61,765 25,000 25,000 36,765
Miscellaneous 5,522 10,000 10,000 [4,478]
Total revenues 19,730,693 19,660,000 19,660,000 70,693
Expenditures
Public works 12,243,703 12,831,419 12,831,419 587,716
Total expenditures 12,243,703 12,831,419 12,831,419 587,716
Excess [deficiency] of revenues
over [under] expenditures 7,486,990 6,828,581 6,828,581 658,409
Other financing sources [uses]
Transfers in - 122,200 122,200 [122,200]
Transfers [out][5,649,625] [8,770,000] [8,770,000] 3,120,375
Total other financing sources [uses][5,649,625] [8,647,800] [8,647,800] 2,998,175
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]1,837,365 [1,819,219] [1,819,219] 3,656,584
Unreserved fund balances, January 1 9,229,332 7,746,266 7,746,266 1,483,066
Prior year cancelled encumbrances 234,904 - - 234,904
Unreserved fund balances, December 31 11,301,601$ 5,927,047$ 5,927,047$ 5,374,554$
Budgeted Amounts
See independent auditor's report on the financial statements.
89
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN NET ASSETS - BUDGET AND ACTUAL (NON - GAAP BASIS)
SANITATION FUND
For the Year Ended December 31, 2017
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services 2,826,962$ 2,913,179$ 2,913,179$ [86,217]$
Investment revenue 5,793 - - 5,793
Total revenues 2,832,755 2,913,179 2,913,179 [80,424]
Expenditures
Public works 1,953,277 1,934,016 1,934,016 [19,261]
Total expenditures 1,953,277 1,934,016 1,934,016 [19,261]
Excess [deficiency] of revenues
over [under] expenditures 879,478 979,163 979,163 [99,685]
Other financing sources [uses]
Transfers [out][376,500] [996,500] [996,500] 620,000
Total other financing sources [uses][376,500] [996,500] [996,500] 620,000
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]502,978 [17,337] [17,337] 520,315
Unreserved fund balance, January 1 1,041,379 1,041,560 1,041,560 [181]
Unreserved fund balances, December 31 1,544,357$ 1,024,223$ 1,024,223$ 520,134$
Budgeted Amounts
See independent auditor's report on the financial statements.
90
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN NET ASSETS - BUDGET AND ACTUAL (NON - GAAP BASIS)
GOLF COURSE FUND
For the Year Ended December 31, 2017
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services 798,369$ 823,950$ 823,950$ [25,581]$
Investment revenue 344 - - 344
Miscellaneous 75,470 50,000 50,000 25,470
Total revenues 874,183 873,950 873,950 233
Expenditures
Recreation 858,129 818,064 818,064 [40,065]
Total expenditures 858,129 818,064 818,064 [40,065]
Excess [deficiency] of revenues
over [under] expenditures 16,054 55,886 55,886 [39,832]
Other financing sources [uses]
Transfers [out]- [83,289] [83,289] 83,289
Total other financing sources [uses]- [83,289] [83,289] 83,289
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]16,054 [27,403] [27,403] 43,457
Unreserved fund balance, January 1 99,978 239,979 239,979 [140,001]
Unreserved fund balances, December 31 116,032$ 212,576$ 212,576$ [96,544]$
Budgeted Amounts
See independent auditor's report on the financial statements.
91
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
WORKERS' COMPENSATION RESERVE FUND
For the Year Ended December 31, 2017
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services 298,628$ 311,337$ 311,337$ [12,709]$
Investment revenue 3,080 2,500 2,500 580
Miscellaneous 2,197 - - 2,197
Total revenues 303,905 313,837 313,837 [9,932]
Expenditures
General government 389,412 709,667 709,667 320,255
Total expenditures 389,412 709,667 709,667 320,255
Excess [deficiency] of revenues
over [under] expenditures [85,507] [395,830] [395,830] 310,323
Unreserved fund balance, January 1 1,004,882 844,976 844,976 159,906
Unreserved fund balances, December 31 919,375$ 449,146$ 449,146$ 470,229$
Budgeted Amounts
See independent auditor's report on the financial statements.
92
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
HEALTH INSURANCE FUND
For the Year Ended December 31, 2017
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services 6,809,860$ 7,044,200$ 7,044,200$ [234,340]$
Investment revenue 10,586 5,000 5,000 5,586
Miscellaneous 32,507 5,000 5,000 27,507
Total revenues 6,852,953 7,054,200 7,054,200 [201,247]
Expenditures
General government 6,402,325 6,995,644 6,995,644 593,319
Total expenditures 6,402,325 6,995,644 6,995,644 593,319
Excess [deficiency] of revenues
over [under] expenditures 450,628 58,556 58,556 392,072
Unreserved fund balance, January 1 1,600,344 1,294,000 1,294,000 306,344
Unreserved fund balances, December 31 2,050,972$ 1,352,556$ 1,352,556$ 698,416$
Budgeted Amounts
See independent auditor's report on the financial statements.
93
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
CENTRAL GARAGE FUND
For the Year Ended December 31, 2017
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services 1,215,447$ -$ -$ 1,215,447$
Investment revenue - 40 40 [40]
Miscellaneous 6,481 17,500 17,500 [11,019]
Total revenues 1,221,928 17,540 17,540 1,204,388
Expenditures
General government 1,311,755 1,757,484 1,757,484 445,729
Total expenditures 1,311,755 1,757,484 1,757,484 445,729
Excess [deficiency] of revenues
over [under] expenditures [89,827] [1,739,944] [1,739,944] 1,650,117
Other financing sources [uses]
Transfers in 130,000 1,730,000 1,730,000 [1,600,000]
Transfers [out]- [10,000] [10,000] 10,000
Total other financing sources [uses]130,000 1,720,000 1,720,000 [1,590,000]
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]40,173 [19,944] [19,944] 60,117
Unreserved fund balance, January 1 [18,578] 165,078 165,078 [183,656]
Unreserved fund balance, December 31 21,595$ 145,134$ 145,134$ [123,539]$
Budgeted Amounts
See independent auditor's report on the financial statements.
94
95
CITY OF SALINA, KANSAS
INTERNAL SERVICE FUNDS
Internal serv ice funds are used to account for the financing of goods or services prov ided by one agency to other
departments or agencies of the government and to other governmental units on a cost reimbursement basis.
Workers' compensation reserve fund -To account for the costs of prov iding a partially self-insured workers'
compensation plan and for accumulating the necessary reserve amounts.
Health insurance fund -To account for the costs of providing a partially self-insured health insurance and for
accumulating the necessary reserve amounts.
Central garage fund -To account for the accumulation and allocation for costs associated with the City's centralized
vehicle repair shop.
Total
Workers'Internal
Compensation Health Central Service
ASSETS Reserve Insurance Garage Funds
Current assets:
Cash and investments 919,455$ 2,084,615$45,763$ 3,049,833$
Inventory and prepaid supplies - - 165,125 165,125
Total current assets 919,455 2,084,615 210,888 3,214,958
Capital assets:
Capital assets - - 184,326 184,326
Less: accumulated depreciation - - 160,966 160,966
Total capital assets - - 23,360 23,360
Total assets 919,455 2,084,615 234,248 3,238,318
Deferred outflows of resources:
Pension deferred outflows of resources - - 31,240 31,240
Total deferred outflows of resources - - 31,240 31,240
Total assets and deferred outflows of resources 919,455$ 2,084,615$265,488$3,269,558$
Liabilities:
Current liabilities (payable from current assets):
Accounts payable 80$ 33,642$ 24,168$ 57,890$
Current portion of compensated absences payable - - 28,707 28,707
Current portion of accrued claims payable 177,141 395,691 - 572,832
Total current liabilities (payable from current assets)177,221 429,333 52,875 659,429
Noncurrent liabilities:
Compensated absences payable - - 24,863 24,863
Accrued claims payable 44,772 - - 44,772
Net pension liability - - 165,559 165,559
Total noncurrent liabilities 44,772 - 190,422 235,194
Total liabilities 221,993 429,333 243,297 894,623
Deferred inflows of resources
Pension deferred inflows of resources - - 11,338 11,338
Total deferred inflows of resources - - 11,338 11,338
Total liabilities and deferred inflows of resources 221,993$ 429,333$ 254,635$905,961$
Net Position
Invested in capital assets, net of related debt -$ -$ 23,360$ 23,360$
Unrestricted 697,462 1,655,282 [12,507] 2,340,237
Total net position 697,462$ 1,655,282$10,853$ 2,363,597$
CITY OF SALINA, KANSAS
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
December 31, 2017
See independent auditor's report on the financial statements.
96
Total
Workers'Internal
Compensation Health Central Service
Reserve Insurance Garage Funds
Operating revenues
Charges for services 298,628$ 6,809,860$ 1,215,447$ 8,323,935$
Miscellaneous 2,197 32,507 6,482 41,186
Total operating revenues 300,825 6,842,367 1,221,929 8,365,121
Operating expenses
General government 356,171 6,503,682 1,349,966 8,209,819
Depreciation - - 9,260 9,260
Total operating expenses 356,171 6,503,682 1,359,226 8,219,079
Operating income [loss][55,346] 338,685 [137,297] 146,042
Nonoperating revenues [expenses]
Investment revenue 3,080 10,586 - 13,666
Gain/[loss] on disposal of fixed assets - - [4,044] [4,044]
Total other operating revenues [expenses] 3,080 10,586 [4,044] 9,622
Income [loss] before transfers [52,266] 349,271 [141,341] 155,664
Transfers from [to] other funds
Transfers in - - 130,000 130,000
Transfers [out] - - - -
Total transfers - - 130,000 130,000
Change in net position [52,266] 349,271 [11,341] 285,664
Net position, January 1 749,728 1,306,011 22,194 2,077,933
Net position, December 31 697,462$ 1,655,282$ 10,853$ 2,363,597$
COMBINING STATEMENT OF REVENUES, EXPENSES
INTERNAL SERVICE FUND
CITY OF SALINA, KANSAS
For the Year Ended December 31, 2017
AND CHANGES IN NET POSITION
See independent auditor's report on the financial statements.
97
Total
Workers'Internal
Compensation Health Central Service
Reserve Insurance Garage Funds
Cash flows from operating activities
Cash received from customers and users 265,387$ 6,911,218$1,215,448$8,392,053$
Cash paid to suppliers of goods or services [356,091] [6,470,040] [1,049,688] [7,875,819]
Cash paid to employees - - [275,772] [275,772]
Other operating receipts 2,197 32,507 6,481 41,185
Net cash provided by [used in] operating activities [88,507] 473,685 [103,531] 281,647
Cash flows from investing activities
Interest received 3,080 10,586 - 13,666
Cash flows from capital and related financing activities
Proceeds from sale of capital assets - - - -
Net cash provided by [used in] capital - - - -
Cash flows from noncapital financing activities
Transfers in - - 130,000 130,000
Transfers [out]- - - -
Net cash provided by [used in] noncapital financing activities - - 130,000 130,000
Net increase [decrease] in cash and cash equivalents [85,427] 484,271 26,469 425,313
Cash and cash equivalents, January 1 1,004,882 1,600,344 19,294 2,624,520
Cash and cash equivalents, December 31 919,455$ 2,084,615$45,763$ 3,049,833$
For the Year Ended December 31, 2017
CITY OF SALINA, KANSAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOW S
See independent auditor's report on the financial statements.
98
Total
Workers'Internal
Compensation Health Central Service
Reserve Insurance Garage Funds
Reconciliation of operating [loss] income to net cash
provided by [used in] operating activities
Operating income [loss][55,346]$ 338,685$[137,297]$ 146,042$
Adjustments to reconcile operating income [loss] to
net cash provided by [used in] operating activities
Depreciation expense - - 9,260 9,260
[Increase] decrease in inventory - - 24,761 24,761
[Increase] decrease in deferred outflows [1,162] [1,162]
Increase [decrease] in accounts payable 80 33,642 [13,704] 20,018
Increase [decrease] in accrued compensated absences - - 14,065 14,065
Increase [decrease] in net pension liability - - [234] [234]
Increase [decrease] in claims payable [33,241] 101,358 - 68,117
Increase [decrease] in deferred inflows - - 780 780
Net cash provided by [used in] operating activities [88,507]$ 473,685$[103,531]$ 281,647$
For the Year Ended December 31, 2017
CITY OF SALINA, KANSAS
INTERNAL SERVICE FUNDS (Continued)
COMBINING STATEMENT OF CASH FLOW S
See independent auditor's report on the financial statements.
99
100
CITY OF SALINA, KANSAS
AGENCY FUNDS
Agency funds are used to account for assets held by the gov ernment as an agent for individuals, private
organizations, other governments and/or other funds.
Special assessment escrow agency fund -To account for property owners' prepayment on outstanding special
assessments.
Fire insurance proceeds agency fund -To account for insurance proceeds received for sev erely damaged buildings
the insurance proceeds, pl us interest, are returned to the property owners when the buildings are repaired or
demolished.
Payroll clearing agency fund -To account for interfund payroll receivables and payables for all City funds.
Court bond and restitution agency fund -To account for bonds and restitution remitted to the court and awaiting
court orders for distribution.
Police investigation account agency fund -To account for monies hel d by the police department for use in
investigations.
Citizenship agency fund -To account for donations received and used for the citizenship fund.
Section 125 plan agency fund -To account for monies held for the Section 125 plan.
DTF federal forfeiture fund –To account for revenues and expenditures related to the sale of assets acquired during
drug enforcement activities as they related to federal cases. Expenses are limited to equipment and training for the
Drug Task Force.
DTF local fund –To account for rev enues and expenditures related to the sale of assets acquired during drug
enforcement activities as they relate to local cases. Expenses are limited to equipment and training for the Drug
Task Force.
DTF reserve fund –To account for revenues and expenditures related to State of Kansas Drug Tax Distributions.
Ex penses are limited to equipment and training for the Drug Task Force.
Beechcraft remediation settlement fund -To account for revenues and expenditures related to the bankruptcy of
Beechcraft and the former Schilling Airforce Base remediation case.
Bail bond escrow fund –To account for funds being held in escrow for bonds issued by Municipal Court.
Special Fire Court Police Section DTF Beechcraft Bail
Assessment Insurance Payroll Bond and Investigation 125 Federal DTF DTF Remedition Bond
Escrow Proceeds Clearing Restitution Account Citizenship Plan Forfeiture Local Reserve Settlement Escrow Totals
ASSETS:
Cash and investments 90,849$ 18,869$ [365,473]$ 23,818$ 3,379$ 94,580$ 291,014$3,696$ 47,216$26,299$154,181$ 1,127$389,555$
Total assets 90,849$ 18,869$ [365,473]$ 23,818$ 3,379$ 94,580$ 291,014$3,696$ 47,216$26,299$154,181$ 1,127$389,555$
LIABILITIES:
Accounts payable 90,849$ 18,869$ [365,473]$ 23,818$ 3,379$ 94,580$ 291,014$3,696$ 47,216$26,299$154,181$ 1,127$389,555$
Total liabilities 90,849$ 18,869$ [365,473]$ 23,818$ 3,379$ 94,580$ 291,014$3,696$ 47,216$26,299$154,181$ 1,127$389,555$
December 31, 2017
CITY OF SALINA, KANSAS
COMBINING BALANCE SHEET
AGENCY FUNDS
See independent auditor's report on the financial statements.
101
Balance Balance
December 31,December 31,
2016 Additions Deductions 2017
Cash and investments
Special Assessment Escrow 80,917$ 9,932$ -$ 90,849$
Fire Insurance Proceeds 63 54,045 35,239 18,869
Payroll Clearing [320,981] - 44,492 [365,473]
Court Bond and Restitution 34,525 - 10,707 23,818
Police Investigation Account 3,378 1 - 3,379
Citizenship Trust 24,874 126,501 56,795 94,580
Section 125 Plan Fund 290,772 348,638 348,396 291,014
DTF Federal Forfeiture 7 11,963 8,274 3,696
DTF Local - 101,926 54,710 47,216
DTF Reserve - 33,299 7,000 26,299
Beechcraft Remediation Settlement 153,614 567 - 154,181
Bail Bond Escrow 1,124 3 - 1,127
Total Assets 268,293$ 686,875$ 565,613$ 389,555$
Accounts Payable
Special Assessment Escrow 80,917$ 9,932$ -$ 90,849$
Fire Insurance Proceeds 63 54,045 35,239 18,869
Payroll Clearing [320,981] - 44,492 [365,473]
Court Bond and Restitution 34,525 - 10,707 23,818
Police Investigation Account 3,378 1 - 3,379
Citizenship Trust 24,874 126,501 56,795 94,580
Section 125 Plan Fund 290,772 348,638 348,396 291,014
DTF Federal Forfeiture 7 11,963 8,274 3,696
DTF Local - 101,926 54,710 47,216
DTF Reserve - 33,299 7,000 26,299
Beechcraft Remediation Settlement 153,614 567 - 154,181
Bail Bond Escrow 1,124 3 - 1,127
Total liabilities 268,293$ 686,875$ 565,613$ 389,555$
CITY OF SALINA, KANSAS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
For the Year Ended December 31, 2017
AGENCY FUNDS
See independent auditor's report on the financial statements.
102
ST AT ISTICAL SECTION
2010
Amount %Amount %Amount %Amount %Amount %Amount %Amount %Amount %Amount %Amount %
Governmental activities
Net investment in capital
assets 118,965$93%101,974$85%113,001$96%109,289$93%112,929$94%116,585$90%115,589$ 90%130,401$ 122%124,635$ 108%129,921$ 105%
Restricted 1,212 1%1,174 1%988 1%1,712 1%1,082 1%1,210 1%876 1%1,224 1%1,738 1%2,012 2%
Unrestricted 7,745 6%16,706 14%3,808 3%6,333 5%5,511 5%11,628 9%11,413 9%(24,922) -23%(10,505) -9%(8,232) -7%
Total governmental activities
net position 127,922$100%119,854$100%117,797$100%117,334$100%119,522$100%129,423$100%127,878$ 100%106,703$ 100%115,868$ 100%123,701$ 100%
Business-type activities
Net investment in capital
assets 45,931$ 79%48,234$ 79%48,078$ 75%44,227$ 63%50,857$ 69%57,103$ 75%61,721$ 75%68,107$ 80%62,427$ 71%63,316$ 71%
Restricted 1,211 2%1,553 3%1,553 2%1,553 2%1,553 2%1,553 2%1,512 2%1,512 2%1,512 2%1,512 2%
Unrestricted 11,197 19%11,482 19%14,306 22%24,528 35%21,450 29%17,794 23%19,545 24%15,610 18%23,621 27%24,255 27%
Total business-type activities
net position 58,339$ 100%61,269$ 100%63,937$ 100%70,308$ 100%73,860$ 100%76,450$ 100%82,778$ 100%85,229$ 100%87,560$ 100%89,083$ 100%
Primary government
Net investment in capital
assets 164,896$89%150,208$83%161,080$89%153,516$82%163,786$85%173,688$84%177,311$ 84%198,508$ 103%187,062$ 92%193,237$ 91%
Restricted 2,423 1%2,727 2%2,541 1%3,216 2%2,635 1%2,763 1%2,388 1%2,736 1%3,250 2%3,524 2%
Unrestricted 18,942 10%28,188 16%18,115 10%30,867 16%26,961 14%29,422 14%30,959 15%(9,312) -5%13,116 6%16,023 8%
Total primary government net
position 186,261$100%181,123$100%181,736$100%187,599$100%193,382$100%205,873$100%210,658$ 100%191,932$ 100%203,428$ 100%212,784$ 100%
Source: City of Salina Comprehensive Annual Financial Reports, 2008 - 2017
Fiscal Year
2011 2016
(accrual basis of accounting)
(in 000's)
2009 2013
Schedule 1
City of Salina, Kansas
Net Position by Component
Last Ten Fiscal Years
2008 2017201420152012
103
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Expenses
Governmental activities:
General government 6,791$ 14,664$ 10,845$ 13,614$ 11,278$ 10,978$ 12,550$ 10,743$ 9,188$ 9,780$
Public safety 18,440 16,539 18,592 18,579 19,066 19,649 20,208 21,084 22,232 23,120
Public works 9,706 9,781 9,782 9,858 10,957 11,064 11,401 9,049 9,773 10,345
Public health and sanitation 1,310 1,390 1,365 1,368 1,383 1,369 347 995 1,095 1,126
Culture and recreation 5,582 5,397 8,572 6,693 5,338 4,809 5,156 6,517 6,612 6,880
Planning and development 3,481 3,375 3,716 3,450 3,362 3,399 3,236 1,915 2,047 1,835
Interest on long term debt 1,454 - 2,256 1,650 1,914 1,953 1,817 1,774 2,971 1,725
Total governmental activities expenses 46,764 51,146 55,128 55,212 53,298 53,221 54,715 52,077 53,918 54,811
Business-type activities:
Solid waste disposal 2,008 2,287 3,010 2,945 2,067 3,532 1,870 1,766 2,335 2,365
Water and sewer 13,284 12,995 14,050 13,597 14,897 15,418 14,904 11,712 14,807 15,650
Sanitation 2,184 2,224 2,261 2,261 2,441 2,237 2,399 1,909 2,043 2,178
Golf course 884 897 817 825 723 768 843 821 792 852
Total business-type activities expenses 18,360 18,403 20,138 19,628 20,128 21,955 20,016 16,208 19,977 21,045
Total primary government expenses 65,124$ 69,549$ 75,266$ 74,840$ 73,426$ 75,176$ 74,731$ 68,285$ 73,895$ 75,856$
Program Revenues
Governmental activities:
Charges for services
General government 4,581$ 4,599$ 5,143$ 6,106$ 6,328$ 5,548$ 5,662$ 3,151$ 3,134$ 3,470$
Public safety 3,588 2,913 3,969 3,766 4,290 4,656 4,222 4,600 4,891 4,601
Public works 120 164 198 262 306 277 255 193 238 348
Public health and sanitation 39 42 37 43 46 34 46 46 44 50
Culture and recreation 2,139 1,936 2,817 3,140 1,728 1,466 1,533 1,501 1,638 1,541
Planning and development 240 267 144 153 158 161 167 73 140 91
Operating grants and contributions 3,752 3,163 3,415 2,907 4,495 4,200 4,015 3,394 4,332 4,541
Capital grants and contributions - - - - - - - - 733 -
Total governmental activities program revenues 14,458 13,084 15,723 16,377 17,351 16,342 15,900 12,958 15,150 14,642
Business-type activities:
Charges for services
Solid waste disposal 2,749 2,903 2,853 2,904 3,137 3,138 3,024 2,519 2,795 3,165
Water and sewer 14,073 14,980 16,520 17,904 19,099 17,938 18,742 19,059 19,322 19,855
Sanitation 2,172 2,292 2,310 2,334 2,462 2,514 2,553 2,529 2,751 2,885
Golf course 751 757 736 636 783 719 811 820 789 798
Operating grants and contributions - - - 202 - - - - - -
Capital grants and contributions - - - 3,804 274 - 115 - - -
Total business-type activities program revenues 19,744 20,932 22,419 27,784 25,755 24,309 25,245 24,927 25,657 26,703
Total primary government program revenues 34,202$ 34,016$ 38,142$ 44,161$ 43,106$ 40,651$ 41,145$ 37,885$ 40,807$ 41,345$
Net (Expense) Revenue
Governmental activities (32,306)$ (38,062)$ (39,405)$ (38,835)$ (35,947)$ (36,879)$ (38,815)$ (39,119)$ (38,768)$ (40,169)$
Business-type activities 1,384 2,529 2,281 8,156 5,627 2,354 5,229 8,719 5,680 5,658
Total primary government net expense (30,922)$ (35,533)$ (37,124)$ (30,679)$ (30,320)$ (34,525)$ (33,586)$ (30,400)$ (33,088)$ (34,511)$
General Revenues and Other Changes in Net Position
Governmental activities:
Taxes
Property taxes, general purpose 7,818$ 9,019$ 7,803$ 7,783$ 8,272$ 8,031$ 8,315$ 8,242$ 8,196$ 9,101$
Property taxes, debt service 1,529 1,711 2,230 2,779 2,439 2,362 2,578 2,766 3,022 2,487
Motor vehicle taxes 1,195 1,135 1,145 1,150 1,153 1,200 1,250 1,312 1,370 1,372
Sales tax, general purpose 11,986 11,669 11,118 11,767 12,165 12,260 12,689 12,931 12,781 12,906
Selective sales tax 2,589 3,380 4,108 4,080 4,210 4,281 4,461 4,558 4,901 8,832
Other taxes 5,747 5,791 6,298 6,390 6,486 6,630 7,231 7,363 7,991 6,900
Investment revenues 805 277 81 77 66 67 98 86 148 92
Miscellaneous 812 505 565 872 660 9,918 1,160 2,371 5,842 2,003
Transfers, net 60 255 92 199 30 999 1 3,819 3,600 4,309
Total governmental activities 32,540 33,742 33,440 35,097 35,481 45,748 37,783 43,448 47,851 48,002
Business-type activities:
Investment revenues 300 242 67 84 79 49 51 56 78 129
Miscellaneous 118 352 341 330 434 279 97 - - 103
Reimbursements - - - - - - 180 132 79 -
Transfers, net (60) (255) (92) (199) (30) (950) - (3,781) (3,581) (4,367)
Total business-type activities 358 339 316 215 483 (622) 328 (3,593) (3,424) (4,135)
Total primary government 32,898$ 34,081$ 33,756$ 35,312$ 35,964$ 45,126$ 38,111$ 39,855$ 44,427$ 43,867$
Change in Net Position
Governmental activities 234$ (4,320)$ (5,965)$ (3,738)$ (466)$ 8,869$ (1,032)$ 4,329$ 9,083$ 7,833$
Business-type activities 1,742 2,868 2,597 8,371 6,110 1,732 5,557 5,126 2,256 1,523
Total primary government 1,976$ (1,452)$ (3,368)$ 4,633$ 5,644$ 10,601$ 4,525$ 9,455$ 11,339$ 9,356$
Source: City of Salina Comprehensive Annual Financial Reports, 2008 - 2017
Fiscal Year
Schedule 2
City of Salina, Kansas
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(in 000's)
104
2008 2009 2010 2012 2013 2014 2015 2016 2017
General Fund
Reserved 274$ 508$ 99$ -$ -$ -$ -$ -$ -$ -$
Nonspendable - - - 90 116 81 107 111 131 153
Restricted - - - - - - - - - -
Committed - - - - - - - - - -
Assigned - - - 293 540 331 239 199 136 214
Unreserved/unassigned 5,756 4,580 3,518 3,454 3,172 3,138 3,908 4,530 4,765 6,516
Total general fund 6,030$ 5,088$ 3,617 3,837$ 3,828$ 3,550$ 4,254$ 4,840$ 5,032$ 6,883$
Restatement 156
Restated fund balance 3,773$
All other governmental funds
Reserved 3,951$ 11,092$ 6,413$ -$ -$ -$ -$ -$ -$ -$
Nonspendable - - - - - - - - - -
Restricted - - - 3,611 3,319 3,446 2,910 2,793 3,142 4,191
Committed - - - 127 (516) 7,486 9,886 8,695 14,284 10,072
Assigned - - - 4,323 4,087 3,146 1,280 619 1,043 641
Unreserved/unassigned 354 4,024 (1,130) - - - - (10,537) (6,823) (28)
Total all other governmental funds 4,305$ 15,116$ 5,283$ 8,061$ 6,890$ 14,078$ 14,076$ 1,570$ 11,646$ 14,876$
Note 1: Prior year amounts have not been restated for the implementation of GASB Statement 54 in fiscal year 2011.
Source: City of Salina Comprehensive Annual Financial Reports, 2008 - 2017
2011
(Note 1)
Fiscal Year
Schedule 3
City of Salina, Kansas
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(in 000's)
105
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Revenues
Taxes (see Schedule 5)30,788$ 32,706$ 32,702$ 33,949$ 34,724$ 34,764$ 36,523$ 37,171$ 38,261$ 41,597$
Intergovernmental 3,741 3,153 3,404 2,901 4,487 4,192 4,008 3,385 4,325 4,536
Special assessments 1,178 1,269 1,385 1,535 2,315 1,706 1,810 1,679 1,669 1,539
Licenses and permits 10 10 11 6 8 9 7 10 7 6
Charges for services 7,415 6,767 8,934 9,730 8,484 8,536 8,276 6,416 6,953 6,880
Investment revenue 490 210 64 69 47 40 59 47 142 79
Reimbursements 39 140 70 32 36 9,015 123 491 1,406 -
Donations - - - - - - 241 83 141 111
Miscellaneous 597 438 448 599 537 810 799 1,853 4,315 1,851
Total revenues 44,258 44,693 47,018 48,821 50,638 59,072 51,846 51,135 57,219 56,599
Expenditures
General government 3,600 3,007 3,549 3,461 3,574 4,269 3,986 5,342 5,422 5,423
Public safety 17,945 17,883 18,229 18,118 18,564 19,155 19,559 21,268 21,664 21,629
Public works 6,593 6,643 6,634 6,569 7,004 7,220 7,443 5,333 5,778 6,048
Public health and sanitation 1,276 1,353 1,332 1,330 1,343 1,344 319 982 1,078 1,097
Culture and recreation 5,142 4,947 5,777 5,900 4,449 3,939 4,292 5,659 5,817 6,143
Planning and development 3,377 3,269 3,609 3,344 3,256 3,293 3,232 1,910 2,042 1,801
Miscellaneous - - 32 - - - - - - -
Capital outlay 10,581 17,707 18,603 9,847 7,327 13,047 11,009 25,527 24,001 18,281
Debt service
Principal 2,812 4,667 5,959 4,411 8,592 5,038 5,261 6,250 17,902 5,088
Interest 1,567 1,596 2,258 2,084 2,103 1,867 1,864 1,833 3,152 1,771
Deposit to escrow - - 107 - 92 - - - - -
Total expenditures 52,892 61,072 66,089 55,064 56,304 59,172 56,965 74,104 86,856 67,281
Other financing sources (uses)
Bonds and notes issued 7,245 23,695 7,034 6,565 6,150 5,690 5,365 6,825 34,892 11,490
Bond and note premium 80 1,369 47 23 60 185 302 369 1,503 95
Transfers in 2,823 3,617 5,076 7,994 3,488 4,907 3,001 7,642 7,065 8,339
Transfers out (2,763) (3,422) (4,984) (5,692) (3,458) (3,907) (2,999) (3,913) (3,555) (4,160)
Issuance costs - - - - - - - - - -
Other - - - 156 - - - - - -
Total other financing
sources (uses)7,385 25,259 7,173 9,046 6,240 6,875 5,669 10,923 39,905 15,764
Net change in fund balance (1,250)$ 8,880$ (11,898)$2,803$ 574$ 6,775$ 550$ (12,046)$ 10,268$ 5,082$
Debt service as a percentage
of non-capital expenditures 12%17%21%17%28%18%18%20%50%16%
Source: City of Salina Comprehensive Annual Financial Reports, 2008 - 2017
Last Ten Fiscal Years
(modified accrual basis of accounting)
(in 000's)
Fiscal Year
Schedule 4
City of Salina, Kansas
Changes in Fund Balances, Governmental Funds
106
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Real estate 9,084$ 9,971$ 9,756$ 10,288$ 10,466$ 10,145$ 10,657$ 10,729$ 10,972$ 11,377$
Delinquent 263 760 278 274 245 248 235 279 246 210
Motor vehicle 1,120 1,135 1,145 1,150 1,153 1,200 1,250 1,312 1,370 1,372
General sales 11,986 11,669 11,117 11,767 12,165 12,260 12,689 12,931 12,781 12,906
Selective sales 2,589 3,380 4,108 4,080 4,210 4,281 4,461 4,558 4,901 8,832
Other taxes 5,747 5,791 6,298 6,390 6,485 6,630 7,231 7,362 7,991 6,900
Total taxes 30,788$ 32,706$ 32,702$ 33,949$ 34,724$ 34,764$ 36,523$ 37,171$ 38,261$ 41,597$
Source: City of Salina Comprehensive Annual Financial Reports, 2008 - 2017
Last Ten Fiscal Years
(modified accrual basis of accounting)
(in 000's)
Fiscal Year
Schedule 5
City of Salina, Kansas
Tax Revenues by Source, Governmental Funds
107
Assessed Value
Fiscal
(Budget)
Year Real Estate Personal Property State Assessed
Total, Excluding
Motor Vehicles Tax Rate
Motor Vehicle
(Note 1)
Total, Taxable
Assessed Value
Estimated Total
Market Value
(Note 2)
Ratio of
Assessed
Value to Est.
Market Value
2006 296,537,399$ 38,662,356$ 17,624,030$ 352,823,785$ 23.999 49,367,870$ 402,191,655$ 2,229,131,633$ 18.04
2007 321,695,326$ 39,691,690$ 16,530,171$ 377,917,187$ 23.789 50,551,299$ 428,468,486$ 2,416,543,103$ 17.73
2008 342,045,389$ 35,089,042$ 15,594,056$ 392,728,487$ 23.959 50,548,706$ 443,277,193$ 2,612,229,468$ 16.97
2009 356,678,712$ 28,373,980$ 14,929,456$ 399,982,148$ 25.886 51,351,656$ 451,333,804$ 2,914,775,730$ 15.48
2010 358,979,211$ 24,760,806$ 13,730,609$ 397,470,626$ 25.855 50,330,252$ 447,800,878$ 2,893,359,541$ 15.48
2011 367,750,803$ 19,918,188$ 14,685,585$ 402,354,576$ 26.022 47,406,062$ 449,760,638$ 2,869,531,746$ 15.67
2012 369,416,422$ 18,654,394$ 15,779,466$ 403,850,282$ 26.272 47,553,744$ 451,404,026$ 2,884,188,981$ 15.65
2013 370,390,092$ 17,769,120$ 16,948,264$ 405,107,476$ 26.927 48,882,411$ 453,989,887$ 2,889,385,914$ 15.71
2014 376,131,346$ 13,652,885$ 17,670,147$ 407,454,378$ 27.080 48,865,900$ 456,320,278$ 2,917,267,724$ 15.64
2015 381,087,426$ 12,607,815$ 18,984,453$ 412,679,694$ 27.311 50,350,566$ 463,030,260$ 2,957,531,741$ 15.66
2016 389,872,825$ 11,653,719$ 19,323,055$ 420,849,599$ 27.603 51,833,505$ 472,683,104$ 3,046,949,034$ 15.51
2017 391,895,060$ 11,146,213$ 19,323,055$ 422,364,328$ 27.311 50,970,796$ 473,335,124$ 3,097,885,103$ 15.28
Note 1: The tax rate for motor vehicles is set based on the average countywide tax rate. The City of Salina then receives a share of that based on tax effort.
Note 3: The Direct rate is expressed in dollars per thousand dollars of assessed value.
Source: Saline County Clerk
Note 2: The estimated market value excludes the value of the State assessed properties. Market value information is not available for those properties. However, state
assessed property is generally assessed at 33% of market value, except for railroads, which are assessed at 15% of market value.
Schedule 6
City of Salina, Kansas
Assessed and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
108
City of Salina Saline County USD 305 (2)Other (1)
Fiscal
(Budget)
Year
Operating
Millage
Debt
Serv ice
Millage
Total
City
Millage
Operating
Millage
Debt
Serv ice
Millage
Total
County
Millage
Operating
Millage
Debt
Serv ice
Millage
Total
USD
Millage Other
2008 20.047 3.912 23.959 27.435 27.435 42.761 12.229 54.990 10.775 117.159
2009 21.749 4.137 25.886 29.347 29.347 46.339 12.208 58.547 10.971 124.751
2010 20.082 5.773 25.855 31.303 31.303 45.341 13.155 58.496 12.401 128.055
2011 19.236 6.786 26.022 31.432 31.432 45.818 13.095 58.913 12.131 128.498
2012 20.326 5.946 26.272 32.576 32.576 47.127 11.693 58.820 11.989 129.657
2013 20.242 5.948 26.190 34.823 34.823 47.133 11.516 58.649 12.135 131.797
2014 20.539 6.388 26.927 37.895 37.895 46.599 11.517 58.116 12.941 135.879
2015 20.692 6.388 27.080 38.047 38.047 44.088 11.517 55.605 13.305 134.037
2016 19.950 7.361 27.311 38.275 38.275 44.465 11.655 56.120 13.293 134.999
2017 21.694 5.909 27.603 37.508 37.508 44.069 11.674 55.743 13.299 134.153
Source: Saline County Treasurer
(2) A small portion of Salina is covered by USD 306, USD 307, or USD 400. Total Tax Rates are different in the areas covered by
these jurisdictions.
Schedule 7
City of Salina, Kansas
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(rate per $1,000 of assessed value)
(1) The "Other" column includes the State of Kansas, the Salina Airport Authority, the Salina Public Library and Kansas State
Extension District #3.
Total
109
Taxpayer Type of Business
Assessed
Valuation
% of Total
Valuation Rank
Assessed
Valuation
% of
Total Rank
Westar Energy (Western Resources)Utility 7,287,074$ 2.17%3 11,025,004$ 2.38%1
SFC Global Supply Chain, Inc. (Schwan's)Pizza Manufacturing 12,382,582 3.69%1 7,189,283 1.55%4
RAF Salina, LLC Regional Shopping Center N/A 5,106,493 1.10%2
Central Mall Realty Holding LLC Regional Shopping Center 9,003,313 2.69%2 4,496,340 0.97%3
Kansas Gas Service Utility 2,633,187 0.79%7 3,644,537 0.79%5
Sams Real Estate Business Trust/Walmart Discount Retail Stores N/A 2,526,108 0.55%6
Menard Inc.Home Improvement N/A 25,066,064 5.41%7
Great Plains Manufacturing Manufacturing 2,308,375 0.69%9 2,327,353 0.50%8
Union Pacific Railroad N/A 2,288,512 0.49%9
Wal-mart Real Estate Business Trust Discount Retail Stores 3,627,525 1.08%6 2,278,951 0.49%10
Southwestern Bell Telephone Utility 4,783,821 1.43%5
S&B Motels Motel 2,388,908 0.71%8
Individual Residential 1,913,209 0.57%10
Salina Regional Health Center Hospital and Medical Offices 5,580,586 1.66%4
Combined Valuation of the Ten Largest Taxpayers 51,908,580$ 65,948,645$
City Valuation 335,262,182$ 463,030,260$
Percent of Total City Assessed Valuation 15.48%14.24%
Source: Saline County Clerk's Office or recent OS
Current Year and Ten Years Ago
2016 (2015 Assessed Value)2007 (2006 Assessed Value)
Schedule 8
City of Salina, Kansas
Principal Property Taxpayers
110
Fiscal
(Budget)
Year
Taxes Lev ied
for the fiscal
year Amount Percentage
Delinquent
Collections (1)Amount
Percentage
of levy
2008 9,409,338$ 9,083,917$ 96.5%262,511$ 9,346,428$ 99.3%
2009 10,354,161$ 9,923,959$ 95.8%759,764$ 10,683,723$ 103.2%
2010 10,276,905$ 9,704,937$ 94.4%278,656$ 9,983,593$ 97.1%
2011 10,415,491$ 10,287,770$ 98.8%273,843$ 10,561,613$ 101.4%
2012 10,570,420$ 10,411,299$ 98.5%245,086$ 10,656,385$ 100.8%
2013 10,576,448$ 10,145,404$ 95.9%248,184$ 10,393,588$ 98.3%
2014 10,908,147$ 10,776,688$ 98.8%398,820$ 11,175,508$ 102.5%
2015 11,316,065$ 10,460,246$ 92.4%617,496$ 11,077,742$ 97.9%
2016 11,740,993$ 10,972,299$ 93.5%245,577$ 11,217,876$ 95.5%
2017 11,254,398$ 11,239,051$ 99.9%209,950$ 11,449,001$ 101.7%
Source: Saline County Treasurer's Office
Last Ten Fiscal Years
(1) Delinquent collections are reported in the aggregate for all previous years. Data is not currently
av ailable for "collected in subsequent years"
Current Year Tax
Distributions Total Tax Distributions
Schedule 9
City of Salina, Kansas
Property Tax Levies and Distributions
111
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
City Direct Tax Rate
General 0.50%0.50%0.50%0.50%0.50%0.50%0.50%0.50%0.50%0.50%
Special purpose 0.25%0.25%/0.40%0.40%0.40%0.40%0.40%0.40%0.40%0.40%0.40%
County-wide Tax Rate 1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00%
Portion of County-wide tax allocated
to City (July Percentage)62.31%62.46%61.58%63.34%61.72%60.86%60.23%60.28%60.28%60.28%
Source: Kansas Department of Revenue
In addition to the direct tax, the City receives a portion of the Countywide sales tax, based on a formula distribution. The formula is based on
property tax effort and population, and is adjusted in January and July of each year.
In May, 2016, the voters approved an increase in the Special Purpose Tax rate from .40% to .75%, to be effective October 1, 2016.
Schedule 10
City of Salina, Kansas
Direct Sales Rate by Taxing Entity
Last Ten Fiscal Years
Fiscal Year
112
# Accts Water # Accts Water # Accts Water # Accts Water # Accts Water # Accts Water # Accts Water # Accts Water # Accts Water # Accts Water
Rate Class Billed Sold Billed Sold Billed Sold Billed Sold Billed Sold Billed Sold Billed Sold Billed Sold Billed Sold Billed Sold
Residential 17,813 994,875 17,792 1,043,774 17,838 1,127,864 17,899 1,194,629 17,893 1,225,931 17,966 989,788 18,042 1,003,100 18,086 987,540 18,125 950,697 18,124 988,572
Commercial 1,591 333,720 1,589 339,507 1,568 350,633 1,574 372,499 1,565 38,547 1,579 348,968 1,599 353,675 1,600 350,767 1,603 345,232 1,606 345,250
Industrial 48 203,491 46 152,910 44 183,166 44 180,277 42 174,595 40 182,529 42 193,233 44 202,407 44 191,236 44 193,503
Government 152 68,366 104 41,793 85 42,714 97 55,910 99 54,618 99 46,484 97 45,346 97 41,928 99 45,136 99 41,552
Apartment 182 64,703 182 71,503 172 71,121 168 72,562 169 70,263 168 67,155 166 60,865 164 61,400 163 57,039 163 58,378
Schools 81 38,835 84 39,815 85 46,386 85 53,679 81 57,027 84 44,187 84 45,328 85 45,545 85 41,176 83 36,039
Industrial special 1 42,574 1 32,934 1 44,457 1 44,051 1 40,448 1 20,439 - -- -- -- -
Consumed in production 18 28,699 18 26,223 17 32,604 13 22,728 12 19,266 12 18,665 12 19,264 12 17,338 9 9,580 8 9,652
Rural water 1 24,798 1 22,824 1 23,854 1 28,621 1 25,930 1 21,530 1 22,993 1 21,915 1 23,384 1 25,624
Hospitals 15 18,723 13 20,488 12 18,503 10 15,674 10 17,896 9 26,482 10 32,184 9 31,858 9 33,728 9 35,132
Religious/non profit 40 6,913 39 7,312 39 5,569 38 5,690 38 5,399 37 4,810 37 4,973 37 4,986 36 5,224 36 4,749
Other taxable deductions 4 8,023 - -- -- 699 - - - -- -- -- -- -
Engineering studies 8 5,327 8 6,176 8 5,266 7 3,754 8 6,104 8 6,822 8 5,095 8 4,807 7 4,573 7 4,772
Providing taxable service 2 4,663 2 4,869 2 5,494 2 4,827 2 6,118 2 3,495 1 3,561 1 3,167 1 3,921 1 3,347
Sale of component parts 8 5,748 8 5,200 8 5,851 8 5,454 8 5,726 6 5,972 6 6,850 5 3,900 4 3,129 4 2,917
Fire hydrant 3 1,147 2 1,032 3 2,424 3 1,389 4 2,533 3 1,922 2 1,474 - -3 1,727 3 1,790
Industrial consumed in production 3 3,230 3 2,314 3 4,083 3 3,260 3 3,543 3 4,417 3 3,588 3 2,388 3 1,930 3 1,962
Sales of farm equipment 1 256 1 205 1 213 1 56 1 83 1 107 1 48 1 53 1 54 1 104
19,971 1,854,091 19,893 1,818,879 19,887 1,970,202 19,954 2,065,759 19,937 1,754,027 20,018 1,793,771 20,111 1,801,577 20,153 1,779,999 20,193 1,717,766 20,192 1,753,343
Water Rate Schedule:
Monthly meter charge (5/8")3.75$ 4.44$ 4.51$ $4.60 $4.74 $4.88 $5.03 $5.20 $5.36 $5.52
Commodity charge (per 000 gal.):
0 - 2000 gal.2.54$ 2.34$ 2.55$ $3.77 $3.88 $4.04 $4.24 $4.45 $4.48 $4.77
2001 - 10,000 gal 2.31$
Over 10,000 gal.2.07$
Excess use charge 4.68$ 5.10$ $7.54 $7.76 $8.08 $8.48 $8.90 $9.16 $9.54
Wastewater Rate Schedule:
Monthly base charge 3.51$ 6.31$ 6.42$ $6.57 $6.77 $6.97 $7.11 $7.22 $7.36 $7.51
Unit cost (per 000 gal.):2.63$ 2.88$ 3.08$ $4.48 $4.61 $4.79 $4.94 $5.01 $5.19 $5.29
Water sold is expressed in thousands of gallons.
Number of Accounts billed is the annual number of billings for each class divided by 12.
Monthly meter charge increases with the size of the meter.
Residential Wastewater is calculated based on Winter Quarter water consumption. Other accounts are based on monthly water consumption.
2008 Water Consumption Rate Structure changed from a decreasing tier structure to one rate and Excess Use Charge which is double the consumption rate
Source: City of Salina Water Customer Accounting Office.
2012 2015201020092013201120082014
Schedule 11
City of Salina, Kansas
Water Sales by Class of Customer
Last Ten Fiscal Years
20172016
113
Fiscal Year
General
Obligation
Bonds
Loans
Payable
Capital
Lease
Temporary
Notes
General
Obligation
Bonds
Water
Revenue
Bonds
Loans
Payable
Temporary
Notes
Total Primary
Government
Percentage
of Personal
Income Per Capita
2008 29,869,930$-$ -$ 5,005,000$ 2,780,069$3,030,000$ 6,428,759$ -$ 47,113,758$ 2.5%1,014.12$
2009 52,067,590$-$ -$ -$ 2,320,000$2,320,000$ 5,862,516$ -$ 62,570,106$ 3.5%1,346.09$
2010 53,120,952$-$ -$ 2,500,000$ 8,614,576$1,580,000$ -$ -$ 65,815,528$ 3.8%1,425.20$
2011 55,225,670$-$ -$ 3,400,000$ 7,417,907$16,193,925$-$ -$ 82,237,502$ 4.3%1,723.80$
2012 49,109,575$-$ -$ 1,485,000$ 9,613,926$15,850,228$-$ -$ 76,058,729$ 3.8%1,583.07$
2013 49,631,797$-$ -$ 3,800,000$ 8,519,799$15,226,532$-$ -$ 77,178,128$ 3.7%1,613.05$
2014 50,033,555$-$ 176,235$5,000,000$ 9,587,351$14,592,836$6,208,102$ -$ 85,598,079$ 4.1%1,788.25$
2015 50,840,632$-$ 479,366$5,995,000$ 8,539,773$13,949,139$5,753,620$ -$ 85,557,530$ 4.1%1,789.42$
2016 51,816,399$12,157,127$321,174$11,505,000$7,640,381$13,285,443$7,432,024$ -$ 104,157,548$ 5.0%2,200.39$
2017 55,994,305$12,171,090$157,868$6,811,742$ 6,520,433$12,606,747$8,862,810$ -$ 103,124,995$ 4.9%2,194.43$
Source: City of Salina Comprehensive Annual Financial Reports, 2008 - 2017
Governmental Activities Business-Type Activities
Schedule 12
City of Salina, Kansas
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
114
Fiscal Year
General
Obligation
Bonds Capital Lease
Temporary
Notes Total
Less Debt
Serv ice Fund
Net General
Bonded Debt
Percentage of
Actual Taxable
Value of Per Capita
2008 32,649,999$-$ 5,005,000$ 37,654,999$792,744$ 36,862,255$8.3%793.45$
2009 54,387,590$-$ -$ 54,387,590$735,291$ 53,652,299$11.9%1,154.23$
2010 61,735,528$-$ 2,500,000$ 64,235,528$571,873$ 63,663,655$14.2%1,378.60$
2011 62,443,577$-$ 3,400,000$ 65,843,577$1,236,026$ 64,607,551$14.4%1,354.26$
2012 58,723,501$-$ 1,485,000$ 60,208,501$582,412$ 59,626,089$13.2%1,241.05$
2013 58,151,596$-$ 3,800,000$ 61,951,596$707,763$ 61,243,833$13.5%1,280.02$
2014 59,620,906$176,235$ 5,000,000$ 64,797,141$407,864$ 64,389,277$14.1%1,345.17$
2015 59,380,405$479,366$ 5,995,000$ 65,854,771$745,339$ 65,109,432$14.1%1,361.75$
2016 59,456,780$321,174$ 11,505,000$71,282,954$1,248,914$ 70,034,040$14.8%1,479.51$
2017 62,514,738$157,868$ 6,811,742$ 69,484,348$1,509,863$ 67,974,485$14.4%1,446.45$
Source: City of Salina Comprehensive Annual Financial Reports, 2008 - 2017
General Bonded Debt Outstanding
Schedule 13
City of Salina, Kansas
Ratio of Net General Bonded Debt Outstanding
Last Ten Fiscal Years
115
City of Salina, Kansas
Direct and Overlapping Governmental Activities Debt
Jurisdiction
Net General
Obligation
Bonded Debt
Outstanding
Percentage
Applicable to
City of Salina
Amount
Applicable to
the City of
Salina
Direct:
City of Salina 67,974,485$ 100.00%67,974,485$
Overlapping:
Salina Airport Authority 22,632,000 100.00%22,632,000
Saline County 145,000 75.08%108,866
USD 305 123,335,000 93.63%115,478,561
Total Overlapping Debt 146,112,000 138,219,427
Total Direct and Overlapping Debt 214,086,485$ 206,193,912$
Per Capita Direct and Overlapping debt 4,312.51$
Source: Saline County Clerk
Schedule 14
Percentage of debt applicable to the City of Salina is based on the proportion that the assessed
valuation of the City of Salina bears to the assessed valuation of the overlapping entity.
As of December 31, 2017
116
Assessed Valuation 473,335,124$
Debt Limit (30% of Assessed Value)142,000,537
Debt applicable to limit:
Total Bonded Debt 103,124,995$
Less GO Debt Attributable to Exempt Purposes (6,520,433)
Less Revenue Bonds (12,606,747)
Less Capital Leases (157,868)
Less Loans Payable (21,033,900)
Less Fund Balance designated for Debt Service (1,509,863)
Total Debt Applicable to Limitation 61,296,184$
Legal debt margin 80,704,353$
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Debt Limit 133,224,043$ 135,400,141$ 134,340,263$ 134,928,191$ 135,421,208$ 136,196,966$ 136,896,083 138,909,078 141,804,931 142,000,537
Total net debt applicable to limit 36,862,255 53,652,299 58,411,185 57,747,032 49,309,445 52,724,034 54,625,691 56,090,293 62,072,485 61,296,184
Legal debt margin 96,361,788$ 81,747,842$ 75,929,078$ 77,181,159$ 86,111,763$ 83,472,932$ 82,270,392$ 82,818,785$ 79,732,446$ 80,704,353$
Total net debt applicable to the limit
as a percentage of debt limit 28%40%43%43%36%39%40%40%44%43%
Last Ten Fiscal Years
Fiscal Year
Legal Debt Margin Calculation for 2017
Schedule 15
City of Salina, Kansas
Legal Debt Margin
117
Fiscal Year
Utility Service
Charges
Less Operating
Expenses
Net Av ailable
Rev enue Principal Interest Cov erage
2008 14,072,513$ 12,754,057$ 1,318,456$ 1,038,000$ 515,459$ 85%
2009 14,980,874$ 12,524,390$ 2,456,484$ 1,276,243$ 455,294$ 142%
2010 16,520,055$ 13,571,098$ 2,948,957$ 740,000$ 91,450$ 355%
2011 17,905,056$ 12,963,891$ 4,941,165$ 1,580,000$ 496,760$ 238%
2012 19,098,626$ 13,963,941$ 5,134,685$ 340,000$ 596,992$ 548%
2013 17,938,288$ 14,524,148$ 3,414,140$ 620,000$ 590,191$ 282%
2014 18,742,029$ 14,002,088$ 4,739,941$ 630,000$ 577,791$ 392%
2015 19,058,855$ 11,711,823$ 7,347,032$ 640,000$ 565,191$ 610%
2016 19,322,077$ 13,981,811$ 5,340,266$ 660,000$ 549,191$ 442%
2017 19,855,033$ 14,720,148$ 5,134,885$ 675,000$ 529,391$ 426%
Source: City of Salina Comprehensive Annual Financial Reports, 2008 - 2017
City of Salina Debt Service Schedules
Water/Sewer Rev enue Bonds
Schedule 16
City of Salina, Kansas
Pledged Rev enue Cov erage
Last Ten Fiscal Years
118
Fiscal Year Population
Per Capita
Personal
Income
(Saline County)
Personal Income,
Salina
(interpolated)
Unemployment
Rate
Labor Force,
City of Salina
USD 305
Headcount
Percentage
Free and
Reduced
Lunch
City .5 cent
sales tax
Per Capita .5
cent sales
Tax
As a % of
per capita
personal
income
2008 46,458 40,351$ 1,874,626,758$ 3.8%26,343 7,348 56.3%5,177,461$111.44$ 0.276%
2009 46,483 38,392$ 1,784,575,336$ 6.0%26,769 7,432 58.7%4,965,147$106.82$ 0.278%
2010 46,180 37,880$ 1,749,298,400$ 6.7%26,379 7,346 57.8%4,803,553$104.02$ 0.275%
2011 47,707 40,512$ 1,932,705,984$ 6.7%26,258 7,289 58.7%5,076,751$106.42$ 0.263%
2012 48,045 41,762$ 2,006,455,290$ 6.3%26,185 7,305 59.1%5,241,205$109.09$ 0.261%
2013 47,846 43,078$ 2,061,109,988$ 5.1%26,441 7,305 60.7%5,326,723$111.33$ 0.258%
2014 47,867 43,736$ 2,093,511,112$ 5.3%26,303 7,388 61.3%5,555,601$116.06$ 0.265%
2015 47,813 44,065$ 2,106,879,845$ 3.9%26,170 7,369 61.8%5,670,040$118.59$ 0.269%
2016 47,336 44,230$ 2,093,647,612$ 3.3%27,684 7,386 68.7%5,727,260$120.99$ 0.274%
2017 46,994 44,732$ 2,102,135,608$ 2.7%27,684 7,176 33.4%5,755,869$122.48$ 0.274%
Sources:Increase in per capita Sales Tax (10 years)14.3%
Population: Kansas Division of the Budget.Increase in per capita Personal Income 20.5%
Personal income for Salina is derived from the population and per capita personal income for Saline County
Per Capita Personal income as reported by the Bureau of Economic Analysis
2017 Per Capita Personal Income staff projection
2008 -2017 Employment City of Salina
USD305 headcount and free and reduced lunch data derived from Kansas Department of Education.
Employment: Kansas Department of Labor
Schedule 17
City of Salina, Kansas
Demographic and Economic Statistics
Last Ten Fiscal Years
Free and Reduced Lunch percentage is an average of the percentages for each building reported. School Data is reported at beginning of school year, eg 2017-2018
school year is reported as 2017.
119
Employer Type of Business Employees Rank
Percentage
of Labor
Force Employees Rank
Percentage
of Labor
Force
Salina Regional Health Center Health Care 1,082 #N/A 4.1%1,800 1 6.5%
Schwan's Global Supply Chain Frozen Pizza Manufacturing 1,850 1 7.0%1,700 2 6.1%
Unified School District No 305 Public School System 935 2 3.5%1,500 3 5.4%
Great Plains Manufacturing Agricultrual & Landscaping Equipment 650 4 2.5%1,100 4 4.0%
Exide Technologies Automotive Battery Manufacturer 800 3 3.0%600 5 2.2%
City of Salina City Government 493 6 1.9%425 6 1.5%
REV Group Manufacturing 300 7 1.1%
Salina Vortex Manufacturing 250 8 0.9%
Walmart Retail 250 9 0.9%
Blue Philips Lighting Company Fluorescent Lamps 600 5 2.3%230 10 0.8%
Lock/line Cellular Phone Insurance 420 7 1.6%
Raytheon Aircraft Aircraft Manufacturing 357 8 1.4%
Eldorado National Busses/Recreational Vehicle 255 9 1.0%
Total 6,360 24.1%6,355 23.0%
Source: Salina Chamber of Commerce
Most recent Official Statement (EMMA)
2008 2017
Schedule 18
City of Salina, Kansas
Principal Employers
Current Year and Nine Years Ago
120