Audit - 1988
CITY OF SALINA
Salina, Kansas
FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORTS
December 31, 1988
KENNEDY AND COE
Certified Public Accountants
Salina, Kansas
Exhibit A
Exhibit B
Schedule 1
Schedule 2
Schedule 3
CITY OF SALINA
Salina, Kansas
CONTENTS
INDEPENDENT AUDITORS' REPORTS
REPORT ON FINANCIAL STATEMENTS
REPORT ON INTERNAL ACCOUNTING CONTROLS BASED SOLELY ON A
STUDY AND EVALUATION MADE AS A PART OF AN AUDIT OF THE
BASIC FINANCIAL STATEMENTS
REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS THAT HAY
HAVE A MATERIAL EFFECT ON THE FINANCIAL STATEMENTS
REPORT ON SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
REPORT ON INTERNAL ACCOUNTING AND ADHINISTRATIVE CONTROLS
USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE
PROGRAHS
REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS RELATED
TO FEDERAL FINANCIAL ASSISTANCE PROGRAHS
SCHEDULE OF FINDINGS
FINANCIAL STATEMENTS
SUMHARY STATEHENT OF RECEIPTS, EXPENDITURES, AND BALANCES
BY FUNDS AND COHPARISON OF CASH BALANCES WITH ENCill1-
BRANCES
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN
UNENCUHBERED CASH BALANCES COHPARED WITH BUDGET
NOTES TO FINANCIAL STATEMENTS
Supplemental Information
Composition of Ending Cash Balances
Comparison of Gross Cash Balances with Depository
Security
Schedule of Federal Financial Assistance
Page
1-2
3-4
5
6
7-9
10
11
12-13
14-30
31-39
40
41
42
Contents
Exhibit A
Exhibit B
Exhibit C
Exhibit D
CITY OF SALINA
Salina, Kansas
CONTENTS (CONTD.)
SEPARATE FINANCIAL STATEMENTS - WATER
AND SEWERAGE DEPARTMENT
INDEPENDENT AUDITORS' REPORT
BALANCE SHEETS
STATEHENTS OF INCOME
STATEMENTS OF CONTRIBUTED CAPITAL AND RETAINED EARNINGS
STATEMENTS OF CHANGES IN FINANCIAL POSITION
NOTES TO FINANCIAL STATEMENTS
Page
43
44
45
46
47
48-51
Contents
KENNEDY AND CaE
CERTIFIED PUBLIC ACCOUNTANTS
OFFICES IN
KANSAS
NEBRASKA
OKLAHOMA
COLORADO
HOME OFFICE:
P.O. BOX 1100
SALINA, KANSAS 67402-1100
913.825.1561
INDEPENDENT AUDITORS' REPORT ON FINANCIAL STATEMENTS
To the Hayor and
The Board of City Commissioners:
We have audited the financial statements
ended December 31, 1988, included herein
funds and account groups except
(1) Saline County-Ci ty Bui lding Authority, Salina-Saline County Board
of Health, and Salina Public Library, which we audit and report
on separately.
(2) Firemen's Relief Association, Salina Recreation Commission, Salina
Arts Commission, Salina Housing Authority, and the Salina Airport
Authority, which are audited by other auditors who issue their
separate reports.
These financial statements are the responsibility of the City's management.
responsibility is to express an opinion on these financial statements based
audit.
of the City of Salina, Kansas, for the year
on pages 12 to 39. Our audit included all
Our
on our
We conducted our audit in accordance with generally accepted auditing standards and
the Hinimum Standard Audit Program approved by the State Hunicipal Accounting Board.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
As discussed in Note 1, these financial statements were prepared on a prescribed
basis of accounting that demonstrates compliance with the cash basis and budget laws
of the State of Kansas, which is a comprehensive basis of accounting other than
generally accepted accounting principles.
In our opinion, the accompanying financial statements present fairly, in all material
respects, the cash and unencumbered cash balances of the City of Salina, Kansas, as
of December 31, 1988, and its receipts and expenditures for the year then ended in
accordance with the basis of accounting described in Note 1.
Our audit was made for the purpose of forming an opinion on the financial statements
taken as a whole. The accompanying supplemental information presented on pages 40 to
42 is presented for purposes of additional analysis and is not a required part of the
financial statements. This information has been subjected to the auditing procedures
applied in the audit of the financial statements mentioned above and, in our opinion,
is fairly stated in all material respects in relation to the financial statements
taken as a whole.
-1-
MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND
SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE
SECTION OF THE AICPA DIVISION FOR CPA FIRMS
This report is intended solely for the information and use of the Hayor, Board of
City Commissioners and management of the City of Salina, Kansas and for filing with
the Kansas Department of Administration, Division of Accounts and Reports, the cog-
nizant federal agency, and other applicable federal audit agencies and should not be
used for any other purpose.
Salina, Kansas
June 16, 1989
~.~ C.P.A.
Certified Public Accountant in charge
of and actively engaged on this audit.
Respectfully submitted,
~--;7 -L ~
-2-
KENNEDY AND CaE
CERTIFIED PUBLIC ACCOUNTANTS
OFFICES IN
KANSAS
NEBRASKA
OKLAHOMA
COLORADO
HOME OFFICE:
P.O. BOX 1100
SALINA, KANSAS 67402.1100
913.825.1561
INDEPENDENT AUDITORS' REPORT ON INTERNAL ACCOUNTING CONTROLS BASED SOLELY
ON A STUDY AND EVALUATION MADE AS PART OF AN
AUDIT OF THE BASIC FINANCIAL STATEMENTS
To the Mayor and
The Board of City Commissioners:
We have audited the financial statements of the City of Salina, Kansas, for the
year ended December 31, 1988, and have included our report thereon on pages 1 to 2.
As part of our audit, we made a study and evaluation of the system of internal
accounting control of the City of Salina, Kansas, to the extent we considered
necessary to evaluate the system as required by generally accepted auditing stand-
ards, the Hinimum Standard Audit Program approved by the State Hunicipal Accounting
Board, and the standards for financial and compliance audits contained in the U.S.
General Accounting Office Standards for Audit of Governmental Organizations, Programs,
Activities, and Functions. For the purpose of this report, we have classified the
significant internal accounting controls in the following categories:
1.
2.
3.
4.
Receipts
Purchases/disbursements
Cash and investment balances
Financial reporting
Our study included all of the control categories listed above. The purpose of our
study and evaluation was to determine the nature, timing, and extent of the auditing
procedures necessary for expressing an opinion on the City's financial statements.
Our study and evaluation was more limited than would be necessary to express an
opinion on the system of internal accounting control taken as a whole or on any
of the categories of controls identified above.
The management of the City of Salina, Kansas, is responsible for establishing and
maintaining a system of internal accounting control. In fulfilling that responsi-
bility, estimates and judgments by management are required to assess the expected
benefits and related costs of control procedures. The objectives of a system are
to provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition, and that transactions
are executed in accordance with management's authorization and recorded properly
to permit the preparation of financial statements in accordance with the method
of accounting described in Note 1 to the financial statements. Because of inherent
limitations in any system of internal accounting control, errors or irregularities
may nevertheless occur and not be detected. Also, projection of any evaulation
of the system to future periods is subject to the risk that procedures may become
inadequate because of changes in conditions or that the degree of compliance with
the procedures may deteriorate.
-3-
MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND
SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE
SECTION OF THE AICPA DIVISION FOR CPA FIRMS
Our study and evaluation made for the limited purpose described in the first para-
graph would not necessarily disclose all material weaknesses in the system. Accord-
ingly, we do not express an opinion on the system of internal accounting control of
the City of Salina, Kansas, taken as a whole or on any of the categories of controls
identified in the first paragraph. However, our study and evaluation disclosed the
following conditions that we believe result in more than a relatively low risk that
errors or irregularities in amounts that would be material in relation to the financial
statements of the City of Salina may occur and not be detected within a timely period.
Good internal controls require the segregation of duties between the
accounting records and the custody of assets, including the control
of receipts and disbursements of funds. One employee receipts,
disburses, reconciles, and records all transactions for funds received
under the U.S. Department of Housing and Urban Development - Community
Development Block Grant/Small Cities Program for Housing Rehabilitation.
These conditions were considered in determining the nature, timing, and extent of the
audit tests to be applied in our audit of the 1988 financial statements, and this
report does not affect our report on the financial statements dated June 16, 1989.
This report is intended solely for the use of management of the City of Salina,
Kansas, and should not be used for any other purpose. This restriction is not
intended to limit the distribution of this report which, upon acceptance by the
City of Salina, Kansas, is a matter of public record.
Respectfully submitted,
Salina, Kansas
June 16, 1989
~....L~
-4-
KENNEDY AND CaE
CERTIFIED PUBLIC ACCOUNTANTS
OFFICES IN
KANSAS
NEBRASKA
OKLAHOMA
COLORADO
HOME OFFICE:
P.O. BOX 1100
SALINA, KANSAS 67402.1100
913.825.1561
INDEPENDENT AUDITORS' REPORT ON COHPLIANCE WITH LAWS
AND REGULATIONS THAT MAY HAVE A HATERIAL
EFFECT ON THE FINANCIAL STATEMENTS
To the Hayor and
The Board of City Commissioners:
We have audited the financial statements of the City of Salina, Kansas, for the
year ended December 31, 1988, and have included our report thereon on pages 1 to
2. Our audit was made in accordance with generally accepted auditing standards,
the Hinimum Standard Audit Program approved by the State Municipal Accounting
Board, and the standards for financial and compliance audits contained in the
Standards for Audit of Governmental Organizations, Programs, Activities, and
Functions, issued by the U.S. General Accounting Office and, accordingly, included
such tests of the accounting records and such other auditing procedures as we
considered necessary in the circumstances.
The management of the City of Salina, Kansas, is responsible for the City's com-
pliance with laws and regulations. In connection with our audit referred to
above, we selected and tested transactions and records to determine the City's
compliance with laws and regulations noncompliance with which could have a material
effect on the financial statements of the City.
The results of our tests indicate that for the transactions tested, the City of
Salina, Kansas, complied with those laws and regulations referred to above,
except as described in Note 8 to the financial statements. Those instances of
noncompliance were considered by us in evaluating whether the financial state-
ments are presented fairly, in all material respects, in conformity with the
method of accounting described in Note 1 to the financial statements. With
respect to the transactions not tested, nothing came to our attention to indicate
that the City of Salina, Kansas, had not complied with laws and regulations other
than those laws and regulations for which we noted violations in our testing
referred to above.
Respectfully submitted,
Salina, Kansas
June 16, 1989
~....LW-
-5-
MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND
SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE
SECTION OF THE AICPA DIVISION FOR CPA FIRMS
KENNEDY AND CaE
CERTIFIED PUBLIC ACCOUNTANTS
OFFICES IN
KANSAS
NEBRASKA
OKLAHOMA
COLORADO
HOME OFFICE:
P.O. BOX 1100
SALINA, KANSAS 67402.1100
913.825-1561
INDEPENDENT AUDITORS' REPORT ON SCHEDULE OF
FEDERAL FINANCIAL ASSISTANCE
To the Mayor and
The Board of City Commissioners:
We have audited the financial statements of the City of Salina, Kansas, for the
year ended December 31, 1988, and have included our report thereon on pages 1 to
2. Our audit of such financial statements was made in accordance with generally
accepted auditing standards, the Minimum Standard Audit Program approved by the
State Hunicipal Accounting Board, and the standards for financial and compliance
audits contained in the Standards for Audit of Governmental Organizations, Programs,
Activities, and Functions, issued by the U.S. General Accounting Office and,
accordingly, included such tests of the accounting records and such other auditing
procedures as we considered necessary in the circumstances.
Our audit was made for the purpose of forming an opinion on the financial statements
taken as a whole. The included Schedule of Federal Financial Assistance, Schedule 3,
is presented for purposes of additional analysis and is not a required part of the
financial statements of the City of Salina, Kansas. The information in that schedule
has been subjected to the auditing procedures applied in the audit of the City's
financial statements and, in our opinion, is fairly stated in accordance with the
City's method of accounting described in Note 1 to the financial statements, in all
material respects in relation to the financial statements taken as a whole.
Respectfully submitted,
Salina, Kansas
June 16, 1989
~-L~
-6-
MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND
SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE
SECTION OF THE AICPA DIVISION FOR CPA FIRMS
KENNEDY AND CaE
CERTIFIED PUBLIC ACCOUNTANTS
OFFICES IN
KANSAS
NEBRASKA
OKLAHOMA
COLORADO
HOME OFFICE:
P.O. BOX 1100
SALINA, KANSAS 67402.1100
913.825.1561
INDEPENDENT AUDITORS' REPORT ON INTERNAL ACCOUNTING AND
ADHINISTRATIVE CONTROLS USED IN ADMINISTERING
FEDERAL FINANCIAL ASSISTANCE PROGRAMS
To the Hayor and
The Board of City Commissioners:
We have audited the financial statements of the City of Salina, Kansas, for the
year ended December 31, 1988, and have included our report thereon on pages 1 to
2. As part of our audit, we made a study and evaluation of the internal control
systems, including applicable internal administrative controls, used in admin-
istering federal financial assistance programs to the extent we considered necessary
to evaluate the systems as required by generally accepted auditing standards, the
standards for financial and compliance audits contained in the Standards for Audit
of Governmental Organizations, Programs, Activities, and Functions, issued by the
U.S. General Accounting Office, the Single Audit Act of 1984, and the provisions of
OMB Circular A-128, Audits of State and Local Governments. For the purpose of this
report, we have classified the significant internal accounting and administrative
controls used in administering federal financial assistance programs in the following
categories:
Accounting Controls
1. Receipts
2. Purchases/disbursements
3. Cash and investment balances
4. Financial reporting
Administrative Controls
1. General requirements
Political activity
Civil rights
Cash management
Federal financial
reports
2.
Specific requirements
Types of services
Reporting
Special requirements
-7-
MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND
SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE
SECTION OF THE AICPA DIVISION FOR CPA FIRMS
The management of the City of Salina, Kansas, is responsible for establishing and
maintaining internal control systems used in administering federal financial assis-
tance programs. In fulfilling that responsibility, estimates and judgments by
management are required to assess the expected benefits and related costs of control
procedures. The objectives of internal control systems used in administering federal
financial assistance programs are to provide management with reasonable, but not
absolute, assurance that, with respect to federal financial assistance programs,
resource use is consistent with laws, regulations, and policies; resources are
safeguarded against waste, loss, and misuse; and reliable data are obtained, main-
tained, and fairly disclosed in reports.
Because of inherent limitations in any system of internal accounting and admini-
strative controls used in administering federal financial assistance programs,
errors or irregularities may nevertheless occur and not be detected" Also, pro-
jection of any evaluation of the systems to future periods is subject to the risk
that procedures may become inadequate because of changes in conditions or that the
degree of compliance with the procedures may deteriorate.
Our study included all of the applicable control categories listed above. During
the year ended December 31, 1988, the City of Salina, Kansas, had no major federal
financial assistance programs and expended 84% of its total federal financial assis-
tance under the following nonmajor federal financial assistance program: U.S.
Department of Housing and Urban Development - Community Development Block Grant/
Small Cities Program for Housing Rehabilitation. With respect to internal control
systems used in administering this nonmajor federal financial assistance program,
our study and evaluation included considering the types of errors and irregularities
that could occur, determining the internal control procedures that should prevent
or detect such errors and irregularities, determining whether the necessary pro-
cedures are prescribed and are being followed satisfactorily, and evaluating any
weaknesses.
With respect to the internal control systems used solely in administering the other
nonmajor federal financial assistance programs of the City of Salina, Kansas, our
study and evaluation was limited to a preliminary review of the systems to obtain
an understanding of the control environment and the flow of transactions through
the accounting system. Our study and evaluation of the internal control systems
used solely in administering these nonmajor federal financial assistance programs
of the City of Salina, Kansas, did not extend beyond this preliminary review phase.
Our study and evaluation was more limited than would be necessary to express an
opinion on the internal control systems used in administering the federal financial
assistance programs of the City of Salina, Kansas. Accordingly, we do not express
an opinion on the internal control systems used in administering the federal finan-
cial assistance programs of the City of Salina, Kansas.
Also, our audit, made in accordance with the standards mentioned above, would not
necessarily disclose material weaknesses in the internal control systems, for which
our study and evaluation was limited to a preliminary review of the systems, as
discussed in the fifth paragraph of this report.
-8-
However, our study and evaluation and our audit disclosed the following conditions
that we believe result in more than a relatively low risk that errors or irregu-
larities in amounts that would be material to a federal financial assistance
program may occur and not be detected within a timely period.
Good internal controls require the segregation of duties between the
accounting records and the custody of assets, including the control
of receipts and disbursements of funds. One employee receipts,
disburses, reconciles, and records all transactions for funds received
under the U.S. Department of Housing and Urban Development - Community
Development Block Grant/Small Cities Program for Housing Rehabilitation.
These conditions were considered in determining the nature, timing, and extent of the
audit tests to be applied in our audit of the 1988 financial statements, and this
report does not affect our reports on the financial statements and on the City's
compliance with laws and regulations dated June 16, 1989.
This report is intended solely for the use of management of the City of Salina,
Kansas, the cognizant federal agency, and other applicable federal audit agencies
and should not be used for any other purpose. This restriction is not intended to
limit the distribution of this report, which, upon acceptance by the City of Salina,
Kansas, is a matter of public record.
Respectfully submitted,
Salina, Kansas
June 16, 1989
~-.L~
-9-
KENNEDY AND CaE
CERTIFIED PUBLIC ACCOUNTANTS
OFFICES IN
KANSAS
NEBRASKA
OKLAHOMA
COLORADO
HOME OFFICE:
P.O. BOX 1100
SALINA. KANSAS 67402-1100
913.825.1561
INDEPENDENT AUDITORS' REPORT ON COHPLIANCE WITH LAWS
AND REGULATIONS RELATED TO FEDERAL
FINANCIAL ASSISTANCE PROGRAHS
To the Mayor and
The Board of City Commissioners:
We have audited the financial statements of the City of Salina, Kansas, for the
year ended December 31, 1988, and have included our report thereon on pages 1 to
2. Our audit was made in accordance with generally accepted auditing standards;
the Minimum Standard Audit Program approved by the State Municipal Accounting
Board; the standards for financial and compliance audits contained in the Stand-
ards for Audit of Governmental Organizations, Programs, Activities, and Functions,
issued by the U.S. General Accounting Office; the Single Audit Act of 1984; and
the provisions of OMB Circular A-128, Audits of State and Local Governments and,
accordingly, included such tests of the accounting records and such other auditing
procedures as we considered necessary in the circumstances.
The management of the City of Salina, Kansas, is responsible for the City's com-
pliance with laws and regulations. In connection with the audit referred to
above, we selected and tested transactions and records from nonmajor federal
financial assistance programs to determine the City's compliance with laws and
regulations noncompliance with which we believe could have a material effect on
the allowability of program expenditures.
The results of our tests that for the transactions and records tested the City of
Salina, Kansas, complied with the laws and regulations referred to above, except
as described in the accompanying schedule of findings. Our testing was more limited
than would be necessary to express an opinion on whether the City of Salina, Kansas,
administered those programs in compliance in all material respects with those laws
and regulations noncompliance with which we believe could have a material effect
on the allowability of program expenditures; however, with respect to the trans-
actions and records that were not tested by us, nothing came to our attention to
indicate that the City of Salina, Kansas, had not complied with laws and regulations
other than those laws and regulations for which we noted violations in our testing
referred to above.
Salina, Kansas
June 16, 1989
Respectfully submitted,
~-...t:~
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MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND
SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE
SECTION OF THE AICPA DIVISION FOR CPA FIRMS
INDEPENDENT AUDITORS' FINDINGS
CITY OF SALINA
Salina, Kansas
SCHEDULE OF INDEPENDENT AUDITORS' FINDINGS
Year Ended December 31, 1988
Community Development Block Grant/Small Cities Program
Finding/Noncompliance
Grant Number
87-HR-088
Compliance Requirement - The grantee is to provide $156,900
in other sources of funds to this Community Development
Program in accordance with the activities and budget
approved.
Auditors' findings indicate that by the end of the grant
period, January 31, 1989, only $148,554 local funds
were expended for the activities and budget approved
for the Community Development Program.
-See Independent Auditors' Report on Compliance with Laws and
Regulations Applicable to Federal Financial Assistance Programs-
-11-
FINANCIAL STATEMENTS
CITY OF SALINA
Salina, Kansas
SUMMARY STATEMENT OF RECEIPTS, EXPENDITURES, AND
BALANCES BY FUNDS AND COHPARISON OF CASH
BALANCES WITH ENCUHBRANCES
Year Ended December 31, 1988
Fund
General Fund
Special Revenue Funds
Street Machinery
Special Gasoline Tax
Tourism and Convention Promotion
Employee Benefit Fund
Ut i li ty Fund
Special Parks and Recreation
Special Alcohol Programs
Special Liability Fund
Fair Housing Assistance Program
Business Improvement District
Equipment Reserve
Recreation
Debt Service Fund
Bond and Interest
Capital Projects Fund
Construction Fund
Enterprise Funds
Golf Course
Sanitation
Parking Meters
Bicentennial Center
Solid Waste Disposal
Water and Sewerage
Bicentennial Center
Data Processing
Events Fund (Note 5)
Water and Sewerage Principal and Interest
Account for Combined Water and Sewage System
Refunding Revenue Bonds, Series of 1984 and
Combined Water and Sewage System Revenue
Bonds, Series of 1987
Unencumbered
Cash Balance
January 1, 1988
$2,273,638.55
63,380.31
72,449.60
1,481.37
277,225.39
188,735.42
769.63
52,375.76
2,119.39
22,084.90
130,530.29
304,244.26
878,260.77
55,016.19
326,158.93
682.89
160,045.73
413,739.46
1,168,184.09
33,024.19
48,596.44
365,138.27
Receipts
$ 9,951,438.08
808,088.34
215,622.42
1,401,137.47
574,626.01
53,465.79
53,465.78
115,260.85
29,190.00
17,533.75
195,000.00
141,796.96
2,525,381.29
2,806,645.20
373,269.58
721,336.26
40,000.00
556,504.50
334,811.95
6,598,803.42
586,678.93
141,259.03
705,173.73
Exhibit A
Unencumbered
Cash Balance Encumbrances Cash Balance
Expenditures December 31, 1988 December 31, 1988 December 31, 1988
$ 9,326,066.10 $2,899,010.53 $ 243,630.48 $ 3,142,641.01
63,380.31 63,380.31
749,963.24 130,574.70 2.00 130,576.70
217,103.79
1,523,323.90 155,038.96 54,037.32 209,076.28
635,032.67 128,328.76 128,328.76
45,000.00 8,465.79 8,465.79
45,000.00 9,235.41 9,235.41
152,699.70 14,936.91 14,936.91
31,309.39
19,500.00 20,118.65 20,118.65
211,868.91 113,661.38 113,661. 38
86,273.60 55,523.36 123.86 55,647.22
2,477,667.49 351,958.06 351,958.06
2,679,086.92 1,005,819.05 888,888.61 1,894,707.66
372,212.52 56,073.25 378.30 56,451.55
622,034.17 425,461. 02 2,784.42 428,245.44
40,648.29 34.60 34.60
542,503.17 174,047.06 1,254.00 175,301.06
238,201.15 510,350.26 510,350.26
7,425,455.32 341,532.19 1,802,699.75 2,144,231.94
605,237.65 14,465.47 14,465.47
125,082.44 64,773.03 9,283.00 74,056.03
661,112.50
409,199.50
409,199.50
-12-
CITY OF SALINA
Salina, Kansas
SUHMARY STATEHENT OF RECEIPTS, EXPENDITURES, AND
BALANCES BY FUNDS AND COMPARISON OF CASH
BALANCES WITH ENCUMBRANCES
Year Ended December 31, 1988
Fund
Unencumbered
Cash Balance
January 1, 1988
Receipts
Water and Sewerage Reserve Accounts for
Combined Water and Sewage System
Refunding Revenue Bonds, Series of 1984
Revenue Bonds, Series of 1987
Depreciation and Emergency Replacement
Extension and Bond Retirement
Totals (Memorandum Only)
$ 658,538.66 $ 48,329.48
265,000.00
350,000.00
722,758.20 257,000.00
(28,214.69) 640, 561. 47
87,689.35 531,445.70
14,683.81 72 7.39
47,950.14 670,605.68
96,766.76 3,373.38
17;624.17
2,800.00 12,409.65
$9,073,478.23 $31,110,942.09
Intragovernmental Funds
Central Garage
Risk Management
Trust and Agency Funds
Citizenship Trust
HUD Community Development
Cemetery Endowment
Mausoleum Endowment
Fire Insurance Proceeds
The accompanying notes are an integral
part of this financial statement.
Expenditures
Unencumbered
Cash Balance
December 31, 1988
$ 257,000.00 $ 449,868.14
265,000.00
350,000.00
979,758.20
610,103.77 2,243.01
592,581. 40 26,553.65
1,500.00 13,911.20
577,365.33 141,190.49
100,140.14
17,624.17
13,007.55 2,202.10
$30,883,940.97 $9,300,479.35
Encumbrances
December 31, 1988
$
308,100.00
5,109.15
$3,316,290.89
Exhibit A (Contd.)
Cash Balance
December 31, 1988
$
449,868.14
265,000.00
350,000.00
979,758.20
2,243.01
26,553.65
13,911.20
449,290.49
100,140.14
17,624.17
7,311 .25
$12,616,770.24
-13-
CITY OF SALINA
Salina, Kansas
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET
Year Ended December 31, 1988
GENERAL FUND
Receipts
Current tangible tax
Vehicle tax
Delinquent taxes
Local sales tax
Bingo gross receipts tax
City liquor tax
Local ad valorem tax reduction
State shared taxes
Auto dealers tax stamps
Highway maintenance
Licenses, fees and permits
Municipal court fines
Franchise taxes
Rents and concessions
Interest from investments
Engineering fees
Services and sales
Ambulance fees
Fire protection - Outside city
Reimbursement of expenditures
Transfers from other funds
Total Receipts
Expenditures
Department
City Commission
City Manager
City Clerk
City At torney
Municipal Court
City Building
Engineering
Fire
Inspection
Park
Police
Street
Human Relations
Emergency Medical Services
Traffic
Swimming Pools
Administration and Planning
Contingencies
Actual
$1,836,847.75
401,958.72
26,289.46
3,393,572.86
11,185.26
53,465.78
292,880.00
229,983.99
12,662.37
limits
188,546.56
350,693.80
1,268,658.02
5,785.00
549,205.77
148,789.99
219,830.67
169,757.14
105,582.68
435,723.36
250,018.90
9,951,438.08
449,048.49
83,041. 79
226,479.45
71,671.18
66,831. 36
127,494.47
139,585.19
1,737,320.50
112,763.93
482,524.63
1,786,270.06
613,737.16
82,033.56
459,942.18
97,867.76
42,763.04
123,175.55
200,548.33
Budget
$1,867,627.00
358,100.00
25,000.00
3,300,000.00
16,000.00
45,000.00
292,880.00
224,630.00
15,000.00
3,100.00
212,000.00
370,000.00
1,250,000.00
7,300.00
600,000.00
100,000.00
223,500.00
160,000.00
141,500.00
383,530.00
214,500.00
9,809,667.0(~
442,920.00
76,650.00
206,730.00
62,600.00
73,410.00
123,190.00
136,610.00
1,745,510.00
104,030.00
472,410.00
1,829,790.00
613,750.00
78,700.00
454,690.00
100,910.00
43,850.00
127,920.00
204,420.00
Exhibit B
(Over) Under
Budget
$
30,779.25
(43,858.72)
(1,289.46)
(93,572.86)
4,814.74
(8,465.78)
(5,353.99)
2,337.63
3,100.00
23,453.44
19,306.20
(18,658.02)
1,515.00
50,794.23
(48,789.99)
3,669.33
(9,757.14)
35,917.32
(52,193.36)
(35,518.90)
041,771.08)
(6,128.49)
(6,391. 79)
(19,749.45)
(9,071.18)
6,578.64
(4 , 304. 47)
(2,975.19)
8,189.50
(8,733.93)
(10,114.63)
43,519.94
12.84
(3,333.56)
(5,252.18)
3,042.24
1,086.96
4,744.45
3,871.67
-14-
CITY OF SALINA
Salina, Kansas
Exhibit B (Contd.)
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET
Year Ended December 31, 1988
GENERAL FUND (CONTD.)
Expenditures (Contd.)
Department (Contd.)
Arts Commission
Cemetery
General Improvement
Museum
Floodworks
Neighborhood Centers
Capital Improvements
Total Expenditures
Receipts Over (Under) Expenditures
Unencumbered Cash Balance, January 1
Unencumbered Cash Balance, December 31
STREET MACHINERY (NOTE 2)
Receipts
Expenditures
Receipts Over Expenditures
Unencumbered Cash Balance, January 1
Unencumbered Cash Balance, December 31
SPECIAL GASOLINE TAX
Receipts
Special gasoline tax
Expenditures
Personal services
Contractual services
Materials and supplies
Transfers to General Fund
Capital outlay
Total Expenditures
Receipts Over (Under) Expenditures
Unencumbered Cash Balance, January 1
Unencumbered Cash Balance, December 31
Actual
(Over) Under
Budget
Budget
$ 119,638.18 $ 119,260. 00 ($ 378.18)
62,392.97 58,690.00 0,702.97)
55,263.81 61,710.00 6,446.19
157,274.49 155,950.00 (1,324.49)
62,423.07 61,950.00 (473.07)
84,658.68 84,210.00 (448.68)
1,881,316.27 3,078,000.00 1,196,683.73
9,326,066.10 10,517,860.00 1,191,793.90
625,371.98 008,193.00) (1,333,564.98)
2,273,638.55 708,193.00 0,565,445.55)
$2,899,010.53 $ ($2,899,010.53)
$
63,380.31
$
63,380.31
$ 808,088.34 $ 780,000.00 ($ 28,088.34)
68,664.47 69,160.00 495.53
350,678.32 400,000.00 49,321.68
158,330.45 161,490.00 3,159.55
150,000.00 150,000.00
22,290.00 22,350.00 60.00
749,963.24 803,000.00 53,036.76
58,125.10 (23,000.00) (81,125.10)
72,449.60 48,032.00 (24,417.60)
$ 130,574.70 $ 25,032.0(~ ($ 105,542.70)
-15-
CITY OF SALINA
Salina, Kansas
Exhibit B (Contd.)
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COHPARED WITH BUDGET
Year Ended December 31, 1988
TOURISM AND CONVENTION
PROMOT ION
Receipts
Transient guest tax
Expenditures
Contractual serv~ces
Receipts Over (Under) Expenditures
Unencumbered Cash Balance, January 1
Unencumbered Cash Balance, December 31
EMPLOYEE BENEFIT FUND
Receipts
Current tangible taxes
Delinquent taxes
Interest on investments
Social security contributions
Employees retirement contributions
Unemployment insurance contributions
Reimbursement of expenditures
Vehicle tax
Transfers from General Fund
Total Receipts
Expenditures
Public officials and employee
liability insurance
Social security
Police and fire retirement
Employees retirement
Group insurance
Unemployment ~nsurance
Workman's compensation
Earned leave
Total Expenditures
Receipts Over (Under) Expenditures
Unencumbered Cash Balance, January 1
Unencumbered Cash Balance, December 31
Actual
$
215,622.42
217,103.79
(1,481.37)
1,481.37
$
$
974,455.76
16,724.51
16,446.89
16,116.75
5,251.81
492.39
100,230.95
244,418.41
27,000.00
1,401,137.47
60,000.00
243,650.94
485,757.74
81,639.49
471,659.04
16,872.29
140,000.00
23,744.40
1,523,323.90
(122,186.43)
277,225.39
$
155,038.96
Budget
$
266,000.00
266,000.00
39,644.00
$
39,644.00
$
994,333.00
15,000.00
18,000.00
1,000.00
90,000.00
215,800.00
40,000.00
1,374,133.00
60,000.00
240,000.00
498,000.00
95,000.00
450,000.00
25,000.00
140,000.00
40,000.00
1,548,000.00
(1 73, 867.00)
173 , 867 . O(~
$
(Over) Under
Budget
$
50,377.58
48,896.21
1,481.37
38,162.63
$
39,644.00
$
19,877.24
(1, 724.51)
1,553.11
(16,116.75)
(5,251.81)
507.61
(10,230.95)
(28,618.41)
13 , 000 .00
(27,004.47)
0,650.94)
12,242.26
13,360.51
(21,659.04)
8,127.71
16,255.60
24,676.10
(51,680.57)
003,358.39)
($
155,038.96)
-16-
CITY OF SALINA
Salina, Kansas
Exhibit B (Contd.)
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET
Year Ended December 31, 1988
Actual
UTILITY FUND
Receipts
Current tangible taxes
Delinquent taxes
Interest on investments
Vehicle taxes
Transfers from General Fund
Total Receipts
$
441,228.28
7,300.30
2,000.00
110,597.43
13,500.00
574,626.01
Expenditures
Gas serv~ce
Light and power serv~ce
Water serv~ce
Traffic control signals
Street lighting
Total Expenditures
44,952.59
253,965.02
63,098.83
32,542.99
240,473 . 24
635,032.67
(60,406.66)
Receipts Over (Under) Expenditures
Unencumbered Cash Balance, January 1
188,735.42
Unencumbered Cash Balance, December 31
$
128,328.76
SPECIAL PARKS AND RECREATION
Receipts
Ci ty liquor tax
$
53,465.79
Expenditures
Transfer to General Fund
45,000.00
8,465.79
Receipts Over (Under) Expenditures
Unencumbered Cash Balance, January 1
Unencumbered Cash Balance, December 31
$
8,465.79
SPECIAL ALCOHOL PROGRAHS
Receipts
Ci ty liquor tax
$
53,465.78
Expenditures
Contractual serv~ces
45,000.00
8,465.78
Receipts Over (Under) Expenditures
Unencumbered Cash Balance, January 1
769.63
Unencumbered Cash Balance, December 31
$
9,235.41
Budget
$
450,196.00
5,000.00
2,000.00
98,400.00
15,000.00
570,596.00
80,000.00
210,000.00
47,000.00
38,000.00
300,000.00
675,000.00
(104,404.00)
104,404.00
$
$
45,000.00 ($
45,000. OC~
662.00
$
662.00
$
45,000.00 ($
45,000. OO~
663.00
$
663.00 ($
(Over) Under
Budget
$
8,967.72
(2,300.30)
(12,197.43)
1,500.00
(4,030.01)
35,047.41
(43,965.02)
(16,098.83)
5,457.01
59,526.76
39,967.33
(43,997.34)
($
(84,331.42)
128,328.76)
8,465.79)
(8,465.79)
662.00
$
7,803.79
8,465.78)
(8,465.78)
006.63)
8,572.41)
-17-
CITY OF SALINA
Salina, Kansas
Exhibit B (Contd.)
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUHBERED CASH BALANCES COMPARED WITH BUDGET
Year Ended December 31, 1988
Actual
SPECIAL LIABILITY FUND
Receipts
Current tangible taxes
Delinquent tangible taxes
Vehicle taxes
Total Receipts
$
65,949.80
2,629.82
46,681.23
115,260.85
Expenditures
Contractual serv~ces
Reserve
Total Expenditures
152,699.70
152,699.70
Receipts Over (Under) Expenditures
(37,438.85)
Unencumbered Cash Balance, January 1
52,375.76
Unencumbered Cash Balance, December 31
$
14,936.91
FAIR HOUSING ASSISTANCE
PROGRAH (NOTE 2)
Receipts
Grant from federal government
$
29,190.00
Expenditures
Personal serv~ces
Contractual serv~ces
Materials and supplies
Capital outlay
Total Expenditures
7,983.36
13,377.22
6,282.81
3,666.00
31,309.39
Receipts Over (Under) Expenditures
(2,119.39)
Unencumbered Cash Balance, January 1
2,119.39
Unencumbered Cash Balance, December 31
$
BUSINESS IMPROVEMENT DISTRICT
Receipts
Assessment fees
$
17,533.75
Expenditures
Contractual serv~ces
Sundry expenditures
Total Expenditures
19,498.00
2.00
19,500.00
Budget
$
67,179.00
600.00
42,800.00
110,579.00
120,000.00
35,000.00
155,000.00
(44,421. 00)
44,421.00
$
$
19,500.00
19,500.00
19,500.0C~
(Over) Under
Budget
$
1,229.20
(2,029.82)
(3,881.23)
(4,681.85)
(32,699.70)
35,000.00
2,300.30
(6,982.15)
0,954.76)
($
14,936.91)
$
1,966.25
2.00
(2.00)
-18-
CITY OF SALINA
Salina, Kansas
Exhibit B (Contd.)
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET
Year Ended December 31, 1988
BUSINESS IMPROVEMENT DISTRICT
(CONTD. )
Budget
(Over) Under
Budget
Actual
Receipts Over (Under) Expenditures
($
Unencumbered Cash Balance, January 1
1,966.25) $ $ 1,966.25
22,084.90 7,312.00 04,772.90)
20,118.65 $ 7,312.00 ($ 12,806.65)
Unencumbered Cash Balance, December 31
$
EQUIPMENT RESERVE
Receipts
Interest from investments
Transfers from General Fund
Total Receipts
$ 7,000.00 $ 8,000.00 $ 1,000.00
188,000.00 200,000.00 12,000.00
195,000.00 208,000.00 13,000.00
211,868.91 225, 700 . 00 13,831.09
(16,868.91) (17,700.00) (831. 09)
130,530.29 122,000.00 (8,530.29)
$ 113,661.38 $ 104,300.012 ($ 9,361. 38)
Expenditures
Capi tal outlay
Receipts Over (Under) Expenditures
Unencumbered Cash Balance, January 1
Unencumbered Cash Balance, December 31
RECREATION (NOTE 14)
Receipts
Current tangible taxes
Delinquent tangible taxes
Vehicle taxes
Miscellaneous revenues
Recreation activities
Employee benefit fund
Activity fund revenue
Concession revenue
Interest income
Total Receipts
$
20,344.78
602.61
29,428.01
62,586.78
14,290.50
7,350.18
6,040.75
680.35
473 . 00
141,796.96
Expenditures
Personal services
Contractual services
Materials and supplies
Sundry expenditures
Capital outlay
Total Expenditures
42,473.89
25,414.66
6,277.49
6,201.74
5,905.82
86,273.60
-19-
CITY OF SALINA
Salina, Kansas
Exhibit B (Contd.)
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET
Year Ended December 31, 1988
RECREATION (CONTD.)
Receipts Over Expenditures
Unencumbered Cash Balance, January 1
Unencumbered Cash Balance, December 31
BOND AND INTEREST
Receipts
Current tangible taxes
Delinquent tangible taxes
Current special assessment taxes
Delinquent special assessment taxes
Interest from investments
Accrued interest on bonds sold
Special assessments
Transfers from other funds
Vehicle taxes
Total Receipts
Expenditures
General bond principal
General bond interest
Curb, gutter and pav~ng principal
(City share)
Curb, gutter and paving principal
(Property owner share)
Curb, gutter and paving interest
(City share)
Curb, gutter and paving interest
(Property owner share)
Fiscal agency commission and postage
Estimated interest - Bonds to be
issued
Total Expenditures
Receipts Over (Under) Expenditures
Unencumbered Cash Balance, January 1
Unencumbered Cash Balance, December 31
Actual
$
55,523.36
$
55,523.36
$
768,310.34
13,015.87
852,576.89
63,308.23
20,000.00
3,949.10
6,135.02
605,081. 25
193,004.59
2,525,381.29
510,000.00
207,118.00
481,258.50
648, 741. 50
281,269.22
346,940.28
1,142.50
1,197.49
2,477,667.49
47, 713.80
304,244.26
$
351,958.06
Budget
$
783,986.00
15,000.00
770,000.00
50,000.00
20,000.00
3,000.00
6,000.00
495,000.00
170,900.00
2,313,886.00
510,000.00
207,120.00
310,500.00
669,510.00
341,950.00
370,280.00
1,640.00
40,000.00
2,451,000.00
(137,114.00)
137,114.00
$
(Over) Under
Budget
$
15,675.66
1,984.13
(82,576.89)
(13,308.23)
(949.10)
035.02)
010,081. 25)
(22,104.59)
(211,495.29)
2.00
(170,758.50)
20,768.50
60,680.78
23,339.72
497.50
38,802.51
(26,667.49)
(184,827.80)
067,130.26)
($
351,958.06)
-20-
CITY OF SALINA
Salina, Kansas
Exhibit B (Contd.)
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COHPARED WITH BUDGET
Year Ended December 31, 1988
CONSTRUCTION FUND (NOTE 2)
Receipts
Temporary notes
Issuance of general obligation
internal improvement bonds
Transfers from other funds
Reimbursements of expenditures
Other
Total Receipts
Budget
(Over) Under
Budget
Actual
$1,401,218.50
1, 115, 000. 00
99,300.00
50,000.00
141,126.70
2,806,645.20
Expenditures
Payment of temporary notes and
interest
Transfers to other funds
Construction and capital outlay
Total Expenditures
614,420.22
138,018.90
1,926,647.80
2,679,086.92
127,558.28
Receipts Over (Under) Expenditures
Unencumbered Cash Balance, January 1
878,260.77
Unencumbered Cash Balance, December 31
$1,005,819.05
GOLF COURSE
Receipts
Membership and green fees
Cart rental
Cart storage
Cart user fees
Oil well lease
Sales
Reimbursement of expenditures
Total Receipts
$ 204,977.00 $ 190,000.00 ($ 14,977.00)
76,938.95 79,500.00 2,561.05
4,955.00 6,000.00 1,045.00
4,482.00 6,000.00 1,518.00
2,929.52 2,500.00 (429.52)
72,201.93 109,000.00 36,798.07
6,785.18 (6,785.18)
373,269.58 393,000.00 19, 730 .42
136,824.76 140,420.00 3,595.24
58,863.99 59,400.00 536.01
86,485.55 76,000.00 (10,485.55)
45,695.78 104,000.00 58,304.22
44,342.44 41,000.00 (3,342.44)
372,212.52 420,820.00 48,607.48
1,057.06 (27,820.00) (28,877.06)
55,016.19 68,077 .00 13,060.81
$ 56,073.25 $ 40,257.00 ($ 15,816.25)
-21-
Expenditures
Personal services
Contractual services
Materials and supplies
Sundry expenditures
Capital outlay
Total Expenditures
Receipts Over (Under) Expenditures
Unencumbered Cash Balance, January 1
Unencumbered Cash Balance, December 31
CITY OF SALINA
Salina, Kansas
Exhibit B (Contd.)
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET
Year Ended December 31, 1988
(Over) Under
Actual Budget Budget
SANITATION
Receipts
Interest from investments $ 3,000.00 $ 3,000.00 $
Miscellaneous sales and serv~ces 1,060.50 2,000.00 939.50
Service fees 717,000.00 704,000.00 (13,000.00)
Reimbursement of expenditures 275.76 1,000.00 724 . 24
Total Receipts 721,336.26 710 , 000 . O(~ ( 11 ,336.26)
Expenditures
Personal serv~ces 298,832.05 309,870.00 1l,037.95
Contractual serV1.ces 157,581.53 165,720.00 8,138.47
Materials and supplies 97,388.97 100,700.00 3,311.03
Tr ans fer to Construction Fund 30,000.00 30,000.00
Capital outlay 38,231.62 42,260.00 4,028.38
Total Expenditures 622,034.17 648,550.00 26,515.83
Receipts Over (Under) Expenditures 99,302.09 61,450.00 (37,852.09)
Unencumbered Cash Balance, January 1 326,158.93 271,086.00 (55,072.93)
Unencumbered Cash Balance, December 31 $ 425,461.02 $ 332,536.01~ ($ 92,925.02)
PARKING METERS
Receipts
Transfers from General Fund $ 40,000.00 $ 42,000.00 $ 2,000.00
Expenditures
Personal serV1.ces 36,624.01 36,520.00 (1 04 . 01)
Contractual serv~ces 800.00 800.00
Materials and supplies 4,024.28 5,090.00 1,065. 72
Total Expenditures 40,648.29 42,410.00 1,761.71
Receipts Over (Under) Expenditures (648.29) (410.00) 238.29
Unencumbered Cash Balance, January 1 682.89 440.00 (242.89)
Unencumbered Cash Balance, December 31 $ 34.60 $ 30.00 ($ 4.60)
-
-22-
CITY OF SALINA
Salina, Kansas
Exhibit B (Contd.)
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET
Year Ended December 31, 1988
(Over) Under
Actual Budget Budget
BICENTENNIAL CENTER
Receipts
Rent $ 140,902.55 $ 197,590.00 $ 56,687.45
Concessions 214,070.42 260,580.00 46,509.58
Reimbursement of expenditures 1,531.53 4,000.00 2,468.47
Transfers from General Fund 200,000.00 200,000.00
Total Receipts 556,504.50 662,170.00 105,665.50
Expenditures
Personal serv~ces 334,963.58 374,670.00 39,706.42
Contractual serv~ces 60,007.17 69,900.00 9,892.83
Materials and supplies 40,884.96 51,700.00 10,815.04
Sundry expenditures 87,268.63 124,600.00 37,331.37
Capital outlay 19,378.83 46,640.00 27,261.17
Total Expenditures 542,503.17 667,510.00 125,006.83
Receipts Over (Under) Expenditures 14,001. 33 (5,340.00) (19,341. 33)
Unencumbered Cash Balance, January 1 160,045.73 119,436.00 (40,609.73)
Unencumbered Cash Balance, December 31 $ 174,047.06 $ 114,096.012 ($ 59,951.06)
SOLID WASTE DISPOSAL
Receipts
Income from leased land $ $ 100.00 $ 100.00
Service fees 332,688.25 265,000.00 (67,688.25)
Reimbursement of expenditures 2,123.70 (2,123.70)
Total Receipts 334,811.95 265,100.00 (69,711.95)
Expenditures
Personal serVIces 86,559.61 89,000.00 2,440.39
Contractual serv~ces 28,088.31 33,030.00 4,941.69
Materials and supplies 56,765.17 77,180.00 20,414.83
Sundry expenditures 61,456.00 60,000.00 (1,456.00)
Capital outlay 5,332.06 (5,332.06)
Total Expenditures 238,201.15 259,210.0(~ 21,008.85
Receipts Over (Under) Expenditures 96,610.80 5,890.00 (90,720.80)
Unencumbered Cash Balance, January 1 413,739.46 323,157.00 (90,582.46)
Unencumbered Cash Balance, December 31 $ 510,350.26 $ 329,047.00 ($ 181,303.26)
-23-
CITY OF SALINA
Salina, Kansas
Exhibit B (Contd.)
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET
Year Ended December 31, 1988
WATER AND SEWERAGE FUND
Receipts
Water
Sewerage
Sanitation fees
Tapping and front footage service
Service charge - Sanitation department
Meter repair and service line revenue
Interest income
Miscellaneous income
Sales tax collections
Meter deposits
Sale of assets
Reserve for Extension and Bond Re-
tirement
Reserve for Depreciation and
Emergency
Total Receipts
Expenditures
Water supply
Softening and treatment
Pumping
Distribution
Customer accounting and collection
Administrative and general
Sewage treatment and collection
Bond ordinance requirements
Transfer to Sanitation Department -
Service fees
Capital expenditures
Sales tax remitted
Meter deposits refunded
Bond issue costs
Transfer to Reserve for Extension
and Bond Retirement
Reserve for Depreciation and
Emergency
Total Expenditures
Receipts Over (Under) Expenditures
Unencumbered Cash Balance, January 1
Unencumbered Cash Balance, December 31
(Over) Under
Actual Budget Budget
$4,058,732.44 $3,219,800.00 ($ 838,932.44)
1,230,075.03 772,200.00 (457,875.03)
716,958.18 710,000.00 (6,958.18)
19,208.29 10,000.00 (9,208.29)
13,253.48 12,500.00 (753.48)
12,830.69 12,000.00 (830.69)
229,781. 33 95,000.00 (134, 781. 33)
197,128.23 30,000.00 (167,128.23)
76,416.75 48,300.00 (28,116.75)
37,770.00 32,000.00 (5,770.00)
6,649.00 (6,649.00)
400,000.00 400,000.00
400,000.00 400,000.00
6,598,803.42 5,741,800.00 (857,003.42)
97,441. 48 97,400.00 (41.48)
975,909.32 852,060.00 (123,849.32)
194,210.99 220,700.00 26,489.01
441,722.53 374,950.00 (66,772.53)
344,787.72 350,640.00 5,852.28
696,137.40 729,780.00 33,642.60
614,970.45 645,290.00 30,319.55
688,527.00 381,740.00 006, 787.00)
71 7,000. 00 710,000.00 (7,000.00)
2,501,508.34 400,000.00 (2,101,508.34)
76,416.75 56,000.00 (20,416.75)
37,000.00 15,000.00 (22,000.00)
39,823.34 09,823.34)
400,000.00 400,000.00
400,000.00 400,000.00
7,425,455.32 5,633,560.00 0,791,895.32)
(826,651. 90) 108,240.00 934,891. 90
1,168,184.09 48,468.00 0,119,716.09)
$ 341,532.19 $ 156,708.00 ($ 184,824.19)
-24-
CITY OF SALINA
Salina, Kansas
Exhibit B (Contd.)
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET
Year Ended December 31, 1988
Budget
(Over) Under
Budget
Actual
BICENTENNIAL CENTER EVENTS
FUND (NOTE 5)
Receipts
$
586,678.93
Expenditures
Transfer of net rental fees to
Bicentennial Center Fund
Special events expenditures
Total Expenditures
62,429.86
542,807.79
605,237.65
Receipts Over (Under) Expenditures
(18,558.72)
Unencumbered Cash Balance, January 1
33,024.19
Unencumbered Cash Balance, December 31
$
14,465.47
DATA PROCESSING
Receipts
Sale of commodities $ 782.03 $ 750.00 ($ 32.03)
Fees 138,814.50 136,900.00 (1,914.50)
Computer programm~ng serv~ce 1,662.50 3,000.00 1,337.50
Total Receipts 141,259.03 140,650.00 (609.03)
Expenditures
Personal serv~ces 75,326.96 83,860.00 8,533.04
Contractual serv~ces 45,377.23 59,110.00 13,732.77
Materials and supplies 4,378.25 5,000.00 621.75
Sundry expenditures 20,000.00 20,000.00
Total Expenditures 125,082.44 167,970.00 42,887.56
Receipts Over (Under) Expenditures 16,176.59 (27,320.00) (43,496.59)
Unencumbered Cash Balance, January 1 48,596.44 37 ,610.0(~ 00,986.44)
Unencumbered Cash Balance, December 31 $ 64,773.03 $ 10,290.0(~ ($ 54,483.03)
-25-
CITY OF SALINA
Salina, Kansas
Exhibit B (Contd.)
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COHPARED WITH BUDGET
Year Ended December 31, 1988
PRINCIPAL AND INTEREST ACCOUNT FOR
COMBINED WATER AND SEWAGE SYSTEM
REFUNDING REVENUE BONDS, SERIES OF
1984 AND COMBINED WATER AND SEWAGE
SYSTEM REVENUE BONDS, SERIES OF
1987 (NOTE 2)
Receipts
Interest from investments
Transfers from Water and Sewerage
Fund
Total Receipts
Expenditures
Bond principal
Bond interest
Total Expenditures
Receipts Over Expenditures
Unencumbered Cash Balance, January 1
Unencumbered Cash Balance, December 31
RESERVE ACCOUNT FOR COMBINED WATER
AND SEWAGE SYSTEM REFUNDING REVENUE
BONDS, SERIES OF 1984 (NOTE 2)
Receipts
Interest from investments
Expenditures
Transfer to Reserve for Extension
and Bond Retirement
Receipts Over (Under) Expenditures
Unencumbered Cash Balance, January 1
Unencumbered Cash Balance, December 31
Actual
(Over) Under
Budget
Budget
$ 16,646.73
688,527.00
705,173 . 73
300,000.00
361,112.50
661,112.50
44,061.23
365,138.27
$ 409,199.50
$
48,329.48
257,000.00
(208,670.52)
658,538.66
$
449,868.14
-26-
CITY OF SALINA
Salina, Kansas
Exhibit B (Contd.)
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET
Year Ended December 31, 1988
(Over) Under
Budget
Actual
Budget
RESERVE ACCOUNT FOR COHBINED WATER
AND SEWAGE SYSTEM REVENUE BONDS,
SERIES OF 1987 (NOTE 2)
Receipts
$
Expenditures
Receipts Over Expenditures
Unencumbered Cash Balance, January 1
265,000.00
Unencumbered Cash Balance, December 31
$
265,000.00
RESERVE ACCOUNT FOR COMBINED WATER
AND SEWAGE SYSTEM DEPRECIATION AND
EMERGENCY REPLACEMENT (NOTE 2)
Receipts
$
Expenditures
Receipts Over Expenditures
Unencumbered Cash Balance, January 1
350,000.00
Unencumbered Cash Balance, December 31
$
350,000.00
RESERVE ACCOUNT FOR COMBINED WATER
AND SEWAGE SYSTEM EXTENSION AND
BOND RETIREMENT (NOTE 2)
Receipts
Transfer from Reserve for Refunding
Revenue Bonds, Series of 1984
$
257,000.00
Expenditures
Receipts Over Expenditures
Unencumbered Cash Balance, January 1
Unencumbered Cash Balance, December 31
257,000.00
722,758.20
$
979,758.20
-27-
CITY OF SALINA
Salina, Kansas
Exhibit B (Contd.)
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET
Year Ended December 31, 1988
CENTRAL GARAGE (NOTE 2)
Budget
(Over) Under
Budget
Actual
Receipts
Reimbursement of expenditures
$
640,561.47
Expenditures
Personal services
Contractual services
Materials and supplies
Sundry expenditures
Capital outlay
Total Expenditures
119,506.89
19,861.98
428,455.04
33,646.89
8,632.97
610,103.77
Receipts Over Expenditures
30,457.70
Unencumbered Cash Balance, January 1
(28,214.69)
Unencumbered Cash Balance, December 31
$
2,243.01
RISK MANAGEMENT (NOTE 2)
Receipts
Reimbursement of expenditures
$ 531,445.70
35,201. 84
553,036.49
519.40
3,615.12
208.55
592,581.40
(61,135.70)
87,689.35
$ 26,553.65
Expenditures
Personal services
Contractual services
Materials and supplies
Sundry expenditures
Capital outlay
Total Expenditures
Receipts Over (Under) Expenditures
Unencumbered Cash Balance, January 1
Unencumbered Cash Balance, December 31
-28-
CITY OF SALINA
Salina, Kansas
B (Contd.)
Exhibit
STATEHENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET
Year Ended December 31, 1988
CITIZENSHIP TRUST (NOTE 2)
Receipts
Interest from investments
Expenditures
Contractual serv~ces
Receipts Over (Under) Expenditures
Unencumbered Cash Balance, January 1
Unencumbered Cash Balance, December 31 $
HUD COMMUNITY DEVELOPMENT (NOTE 2)
Receipts
Interest from investments
Collection of housing and winteri-
zation loans - Principal and
interest
Community Development Block Grants
Reimbursement of expenditures
Collection of Community Develop-
ment Block Grant loan
Total Receipts
Expenditures
Personal services
Contractual services
Materials and supplies
Return of Community Development Block
Grant funds to State of Kansas
Total Expenditures
Receipts Over Expenditures
Unencumbered Cash Balance, January 1
Unencumbered Cash Balance, December 31
Actual
(Over) Under
Budget
Budget
$
72 7.39
1,500.00
(772.61)
14,683.81
13,911.20
$
1,551.32
10,457.23
224,000.00
39,597.13
395,000.00
670,605.68
27,538.57
241,685.10
41.66
308,100.00
577,365.33
93,240.35
47,950.14
$ 141,190.49
-29-
CITY OF SALINA
Salina, Kansas
Exhibit B (Contd.)
STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES
IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET
Year Ended December 31, 1988
CEMETERY ENDOWMENT (NOTE 2)
Budget
(Over) Under
Budget
Actual
Receipts
Perpetual care deposits
$
3,373.38
Expenditures
Receipts Over Expenditures
3,373.38
Unencumbered Cash Balance, January 1
96,766.76
Unencumbered Cash Balance, December 31
$
100,140.14
MAUSOLEUM ENDOWMENT (NOTE 2)
Receipts
$
Expenditures
Receipts Over Expenditures
Unencumbered Cash Balance, January 1
17,624.17
Unencumbered Cash Balance, December 31
$
17,624.17
FIRE INSURANCE PROCEEDS (NOTE 2)
Receipts
Reimbursement of expenditures
$
12,409.65
Expenditures
13,007.55
Receipts Over (Under) Expenditures
(597.90)
Unencumbered Cash Balance, January 1
2,800.00
Unencumbered Cash Balance, December 31
$
2,202.10
The accompanying notes are an integral
part of this financial statement.
-30-
CITY OF SALINA
Salina, Kansas
NOTES TO FINANCIAL STATEHENTS
December 31, 1988
1.
Summary of Significant Accounting Policies
The City maintains its accounting records in accordance with the principles
of fund accounting in order to ensure observance of limitations and restric-
tions placed on the use of resources available. This is the procedure by
which resources are classified for accounting and reporting into funds estab-
lished according to their nature and purposes.
The City of Salina maintains its accounting records for all funds on the cash
basis, except that expenditures incurred but not paid and purchase commitments
at December 31 are recorded as encumbrances at that date. This method serves
to develop information relative to compliance with the budget, cash basis,
and other statutes applicable to municipalities within the State of Kansas.
The method is not, however, in accordance with generally accepted accounting
principles for municipalities. Generally accepted accounting principles
requ~re:
a. Certain accounts receivable and loans receivable relating to
Federal Funds to be recorded in the financial statements.
The City does not record these receivables until they are
collected in cash.
b. Expenditures to be recorded generally on the accrual basis.
The City records purchase commitments as encumbrances at
year-end, and any loss from loss contingencies is not
recorded until the amount of the loss is payable.
c. The General Fixed Assets and the General Long-Term Debt Account
Groups to be maintained. The City does not maintain these
account groups.
d. Transfers between funds to be recorded as reductions to fund
balance of the fund making the transfers and as additions
to fund balance of the fund receiving the transfer. The
City records such transfers as expenditures of the fund
making the transfer and as receipts of the fund receiving
the transfer.
e. The annual financial statements to include a combined balance
sheet for all fund types and account groups; a combined
statement of revenues, expenditures, and changes in fund
balance for all governmental fund types and expendable
trust funds; a combined statement of revenues, expenses,
and changes in retained earnings, and changes in financial
position for all proprietary fund types; and a combined
statement of revenues, expenditures, and changes in fund
balance and combined comparison with budget for all govern-
mental fund types. These required financial statements are
not included in this report.
The City has, by charter ordinance, elected to exempt itself from the Kansas
statutory requirement to maintain fixed asset records, and has requested the
Director of Accounts and Reports to waive the requirements of K.S.A. 75-1120a
as related to the preparation of financial statements in conformity with gener-
ally accepted accounting principles.
-31-
2.
Budgets
Applicable Kansas statutes require that
unless exempted by a specific statute.
contain several funds for which budgets
omitting certain budget comparisons are
budgets be legally adopted for all funds
The accompanying financial statements
were not prepared. The reasons for
described below.
Special Revenue Funds - Certain of the special revenue funds
are not budgeted since their revenues are designated for a
special purpose or the fund represents a clearing account.
Capital Projects Fund - The capital projects fund is not
budgeted since provision for payment of expenditure is
from the issuance of bonds, temporary notes, and special
assessments and charges.
Water and Sewerage Bond Fund and Reserve Accounts - These
funds are not budgeted since receipts and expenditures
are in accordance with requirements of applicable bond
~ssues.
Central Garage
governmental
other funds.
Trust and Agency Funds - The individual trust and agency funds
are not subject to the budget law since the assets do not
belong to the City of Salina.
and Risk Management - These funds are intra-
funds whose expenditures are reimbursable by
3.
Cash and Investment Balances
Kansas municipalities, such as the City of Salina, are authorized by Kansas
statutes to invest funds in:
(1)
Temporary notes or no-fund warrants issued by the investing
governmental unit,
Time deposit, open accounts or certificates of deposit,
Time certificates of deposit,
Repurchase agreements, and
United States Treasury bills or notes with maturities
not exceeding six months.
(2 )
(3)
(4 )
(5 )
Deposits or investments with qualifying financial institutions are to be secured
by a bond or by the pledge of certain types of securities specified by statute.
Cash and investments of the City of Salina deposited with financial institutions
were 100% insured or collateralized by securities provided by such depository
financial institutions at December 31, 1988.
Cash and investments were comprised of the following as of December 31, 1988.
Pe tty cash funds
Cash in checking and temporarily
invested in repurchase agreements
Cash in savings
Certificates of deposit
Treasury bills, at cost (Market value,
$1,961,216.80)
$
4,000.00
2,290,884.20
40,986.04
8,321,000.00
1,959,900.00
Total
$12,616,770.24
-32-
4.
Long-Term Obligations
a.
Changes in Long-Term Debt
The following is a summary of bond transactions of the City for the year
ended December 31, 1988:
Outstanding bonds at
January 1, 1988
New bonds issued:
1988 Internal improvement
Bonds retired
General
Obligation
Revenue
Total
Outstanding Bonds at
December 31, 1988
$12,350,000.00 $4,410,000.00 $16,760,000.00
1, 115,000. 00 1,115,000.00
1,640,000.00 300,000.00 1,940,000.00
$11,825,000.00 $4,110,000.00 $15,935,000.00
Outstanding bonds at December 31, 1988, are comprised of the following indi-
vidual issues:
General Obligation Bonds:
$8,115,000 General Obligation Refunding Bonds,
Series 1985, due in semi-annual installments
of $160,000 to $455,000 through April 1, 1996,
interest at 7.5% to 9.0%.
$ 4,430,000.00
$1,983,000 General Obligation Internal Improvement
Bonds, Series 1986, due in annual installments of
$150,000 to $270,000 through December 1, 1996,
interest at 5.2% to 5.7%.
1,780,000.00
$5,000,000 General Obligation Internal Improvement
Bonds, Series 1987, due in annual installments of
$500,000 through December 1, 1997, interest at
6.10% to 6.65%.
4,500,000.00
$1,115,000 General Obligation Internal Improvement
Bonds, Series 1988, due in annual installments of
$90,000 to $125,000 through December 1, 1998, interest
at 6.15% to 8.15%.
1 , 115 ,000.00
Total
$11,825,000.00
Revenue Bonds:
$2,770,000 Combined Water and Sewage System Refunding
Revenue Bonds, Series of 1984, due in annual install-
ments of $160,000 to $345,000 through February 15,
1994, interest at 8.75% to 9.75%.
$ 1,530,000.00
$2,650,000 Combined Water and Sewage System Revenue
Bonds, Series of 1987, due in annual installments
of $75,000 to $230,000 through October 1, 2007,
interest at 7.0% to 9.0%.
2,580,000.00
Total
$ 4,110,000.00
-33-
The annual requirements to amortize all bonds outstanding as of December 31,
1988, are as follows:
Payable in
Year Ended
December 31,
General
Obligation
Revenue
Total
Principal
1989
1990
1991
1992
1993
Thereafter
$ 1,705,000.00 $ 325,000.00 $ 2,030,000.00
1,590,000.00 355,000.00 L,945,000.00
1,460,000.00 275,000.00 1,735,000.00
1,365,000.00 400,000.00 1,765,000.00
1,395,000.00 440,000.00 L,835,000.00
4,310,000.00 2,315,000.00 -.!J, 625,000.00
11 ,825,000.00 4,110,000.00 15,935,000.00
Total Principal
Interest
1989
1990
1991
1992
1993
Thereafter
801,100.00 333,750.00 1,134,850.00
683,506.25 303,687.50 987,193.75
573,690.00 275,772.50 849,462.50
475,718.75 245,237.50 720,956.25
382,660.00 206,907.50 589,567.50
640,722.50 1,452,950.00 ~2,093,672.50
3,557,397.50 2,818,305.00 6,375,702.50
$15,382,397.50 $6,928,305.00 ~2, 310, 702. 50
Total Interest
Total Principal and
Interest
The City's share and property owner's share of the general obligation bonds
outstanding is $8,579,536.82 and $6,802,860.68, respectively.
b.
General Obligation and Special Assessment Bonds
The City issued its General Obligation Refunding Bonds, Series 1985
(the 1985 Bonds), dated October 15, 1985, for the purpose of refunding
all the City's then outstanding General Obligation and Special Assessment
Bonds (the Refunded Bonds). Cash and bond proceeds were transferred
to a Refunding Escrow Trust Account at a local bank, pursuant to an
escrow trust agreement dated as of October 15, 1985, to provide the
necessary funds for refunding of the Refunded Bonds.
Funds transferred to the Refunding Escrow Trust Account were invested in
United States Government obligations, and the investments and interest
earned on such investments will be sufficient to pay all principal and
interest on the Refunded Bonds as they become due.
The principal amount of $5,045,000.00 of the Refunded Bonds remains
outstanding at December 31, 1988. Neither the assets deposited with
the escrow agent for the retirement of the Refunded Bonds nor the
outstanding Refunded Bonds are reflected in the accompanying financial
statements.
-34-
c.
Revenue Bonds
The City has outstanding an ~ssue of Combined Water and Sewer System
Revenue Bonds, Series of 1977, of which the principal amount of
$2,700,000.00 remains outstanding at December 31, 1988, and an issue
of Combined Water and Sewage System Refunding Revenue Bonds, Series
of 1978, of which the principal amount of $4,384,000.00 remains out-
standing at December 31, 1988. The City has provided for the payment
of all principal and interest on the bonds by depositing United States
Government obligations in escrow accounts at a local bank pursuant to
certain escrow trust agreements.
Neither the assets deposited with the escrow agent for retirement of
the 1977 and 1978 bonds nor the outstanding 1977 and 1978 obligations,
are reflected in the accompanying financial statements.
The City has established certain reserve accounts pursuant to bond
ordinances authorizing the issuance of Combined Water and Sewage System
Refunding Revenue Bonds, Series of 1984 and the Combined Water and
Sewage System Revenue Bonds, Series of 1987, to provide funds for the
retirement of the bonds and payment of interest thereon and for making
replacements to the system in the event other funds are not available.
The gross revenues of the Water and Sewerage Department are pledged to
secure payment of the bonds; however, the pledge is subordiJ.ate to a
similar pledge to secure payment of the 1977 and 1978 bonds.
The amounts required to be maintained in the reserve accounts estab-
lished by the bond ordinances authorizing issuance of the 1984 and 1987
bonds have been provided and the total revenues of the water and sewerage
system appear sufficient to meet the requirements of the ordinance.
5.
Bicentennial Center Events Fund
The Bicentennial Center Events Fund is used as a clearing account for special
events when the City acts as the promotor's agent. Receipts from special events
are deposited in the fund and related expenses are disbursed from the fund.
The ci ty' s rental fees from such events are transferred from th,~ fund to the
Bicentennial Center Fund.
6.
Capital Projects Fund
The Capital Projects Fund is used to account for the purchase or construction
of capital facilities, equipment, and public improvements.
A summary of the fund's unencumbered cash balance at December 31, 1988, follows:
Cash balance resulting from
Capital projects completed
Capital projects in process
Special assessments projects
Reserves for future capital projects
$
618,328.81
133,093.36
28,333.74
226,063.14
$1,005,819.05
Total
-35-
7.
Subsequent Bond Issue
The City of Salina issued the Combined Water and Sewage System Revenue Bonds,
Series 1988, in the total amount of $3,000,000.00 on January 10,. 1989.
8.
Compliance with Kansas Statutes
A summary of statutory violations related to 1988 follows.
Expenditures of the Bond and Interest fund exceeded budgeted
expenditures for the year ended December 31, 1988, by
$26,667.49, which appears to be a violation of the Kansas
budget law (K.S.A. 79-2935).
a.
The assets pledged by two banks to secure cash deposits of the
City were not sufficient to meet the requirements of K.S"A.
9-1402 during the month of December, 1988.
b.
9.
Fund Transfers
Following ~s a schedule of transfers between funds for the year 1988.
From
To
Special Parks and Recreation
Special Gasoline Tax
General Fund - Contingencies
General Fund - Contingencies
Water and Sewerage
General Fund - Capital
improvements
General Fund - Police
Bicentennial Center Events
Water and Sewerage - Bond
Ordinance requirements
General Fund
General Fund
Parking meters
Employee Benefit Fund
Sanitation - Service Fees
Fund
Equipment Reserve
Equipment Reserve
Bicentennial Center - Rent
Principal and Interest
Account for Combined
Water and Sewage System
Refunding Revenue Bonds,
Series of 1984 and Com-
bined Water and Sewage
System Revenue Bonds,
Series of 1987
Utility Fund
General Fund -
General Fund -
Improvements
General Fund -
Improvements
General Fund -
Improvements
Huseum
Capital
Bicentennial Center
Capital
Bond and Interest
Capital
Construction Fund
Amount
$ 45,000.00
150,000.00
40,000.00
27,000.00
71 7,000. 00
138,000.00
50,000.00
62,429.86
688,527.00
13,500.00
200,000.00
605,081. 25
9,300.00
-36-
From
Business Improvement District
Contractual Services
Sanitation
Solid Waste - Sundry
Expenditures
Construction Fund
Construction Fund
Reserve Account for Com-
bined Water and Sewage
System Refunding Revenue
Bonds, Series of 1984
10.
Defined Benefit Pension Plan
To
General Fund
Construction
Construction
General Fund - Engineering
fees
General Fund
Reserve Account for Combined
Water and Sewage System
Extension and Bond Retire-
ment
Amount
$ 17,000.00
30,000.00
60,000.00
100,000.00
38,018.90
257,000.00
Substantially all full-time employees of the City of Salina participate in the
Kansas Public Employees Retirement System (the System), a multiple-employer
public employee retirement system. A group of employees participate in the
Kansas Police and Firemen System (KP&F), a separate program administered by
the System.
Following is a summary of covered payroll and contributions to the System for
the year ended December 31, 1988.
Covered
Payroll
General employees
Police and firemen
$4,047,434.43
3,238,384.98
Employer
Contributions
Employee
$123 , 041. 73
485,757.74
$177,357.44
205,877.04
Totals
$7,285,819.41
Total
$
300,399.17
691,634.78
$608,799.47
$383,234.48
$
992,033.95
The total payroll for the City of Salina was $7,943,846.58 for the year ended
December 31, 1988.
Substantially all general employees of the City of Salina are eligible to par-
ticipate in the System after one year of employment. Employees who retire at
or after age 65 are entitled to a retirement benefit, payable monthly for life,
equal to 1 percent of their final average salary for each year of "prior" ser-
vice and 1.25 to 1.5 percent for each year of "participating" service depending
upon the number of years of service. Final average salary is the employee's
average salary over the highest four years of credited service. Benefits
fully vest on reaching 10 years of service. Vested employees may retire at
age 55 to 65 with 10 years of credited service and receive reduced retirement
benefits. The system also provides death and disability benefits. Benefits
are established by State statute.
Covered general employees are required by State statute to contribute 4% of
their salary to the plan. The employer is required by the same statute to
contribute the remaining amounts necessary to pay benefits when due. The
employer's contribution was 3.04% of covered payroll for 1988.
-37-
The retirement benefits for participants in KP&F are different from those
described above for other participants in the System. Normal retirement
for KP&F participants is at age 55. They can retire at age 50 with 20
years of service, but with reduced benefits. The contribution rate was
3% to 7% for employees and 15% for the employer for 1988.
The "penson benefit obligation" is a standardized disclosure measure of
the present value of pension benefits, adjusted for the effects of projected
salary increases and step-rate benefits, estimated to be payable in the
future as a result of employee service to date. The measure, ,.rhich is the
actuarial present value of credited projected benefits, is intended to help
users assess the System's funding status on a going-concern basis and assess
progress made in accumulating sufficient assets to pay benefits when due.
The System does not make separate measurements of assets and pension benefit
obligation for individual employers. The pension benefit obligation at
January 1, 1987, for the System as a whole, determined through an actuarial
valuation performed as of that date, was $2.96 billion. The System's net
assets available for benefits on that date were estimated to be $2.59
billion, leaving an unfunded pension benefit obligation estimated at
$369 million.
Other information related to the system can be found in the System's 1988
comprehensive annual financial report.
11.
Water and Sewerage Fund
Expenditures of the Water and Sewerage Fund exceeded budget by $1,791,895.32
for the year 1988, due to capital expenditures for renovating the water and
sewerage system.
These capital expenditures will be funded by the issuance of the Combined Water
and Sewage System Revenue Bonds, Series of 1988, in the total amount of
$3,000,000.00 (see Note 7).
12.
Construction Fund Projects
Construction fund projects cumulative expenditures through December 31,
1988, are compared to project authorizations as follows:
Project Name
Street and Drainage Improvements
and Water Line and Sanitary
Sewer Extensions
Downtown Redevelopment
Street and Drainage Improvements
and Water Line and Sanitary
Sewer Extensions
Sidewalk Improvements
Emergency Equipment
Ambulance Equipment
Solid Waste Equipment
Ohio Street and Iron Avenue Inter-
section and Ohio Street South
Improvements
Broadway Overpass
Project
Authorization
Cumulative
Expenditures
$ 758,907.88 $ 683,211.99
6,500,000.00 5,193,076.24
400,533.79 293,490.70
99,998.84 66,947.00
347,000.00 346,960.09
98,985.20 98,985.20
41,360.00 38,632.00
800,000.00 670,797.47
500.00
-38-
Cumulative expenditures through December 31, 1988 exceeded the project
authorization as of December 31, 1988 for the Broadway Overpass project,
which appears to be a violation of the Kansas budget law (K.S.A. 79-2935).
13.
Temporary Notes
The following is a summary of temporary note transactions of the City for the
year ended December 31, 1988:
Outstanding debt at January 1, 1988
Temporary notes issued
Temporary notes paid
$ 300,000.00
1,401,218.50
(576,218.50)
Outstanding Debt at December 31, 1988
$1,125,000.00
Outstanding debt at December 31, 1988, is comprised of a $302,000.00 temporary
note issued on October 1, 1988, at an interest rate of 6.5%; a $23,000.00
temporary note issued on October 1, 1988, at an interest rate of 6.5%; and a
$800,000.00 temporary note issued on December 1, 1988, at an interest rate
of 7.0%.
14.
Recreation Fund
The City entered into an agreement with the Board of Education of Unified
School District #305 and the Salina Recreation Commission as of October 1,
1988, to terminate the Recreation Commission and establish a recreation
division within the City. The operations of such division are presented
in a separate Recreation Fund in these financial statements.
-39-
Supplemental Information
Cash in Depositories
Bank IV, Salina,
Kansas
National Bank of
America, Salina,
Kansas
First National
Bank and Trust
Company, Salina,
Kansas
First Bank and
Trus t Co.,
Salina, Kansas
Peoples Heritage
Federal Savings
and Loan
Association,
Salina, Kansas
Total Cash in
Depositories
CITY OF SALINA
Salina, Kansas
COHPOSITION OF ENDING CASH BALANCES
December 31, 1988
Cash ~n Cash ~n
Checking Savings
$ 941,359.700) $ $
280.05
1,333,115.42(2)
40,705.99
16,409.08
$2,290,884.20
$40,986.04
Investment
U.S. Treasury bills, due March 30, 1989
Petty Cash
Water and Sewerage Department
Bicentennial Center
Total Petty Cash
Total
0)
Certi ficates
of Deposit
3,795,000.00
10,000.00
4,516,000.00
$8,321,000.00
Includes Repurchase Agreement balance of $1,100,000.00.
(2)
Includes Repurchase Agreement balance of $1,860,000.00.
Schedule 1
Total
$
941,359.70
3,795,280.05
1,383,821.41
16,409.08
4,516,000.00
10,652,870.24
1,959,900.00
2,500.00
1,500.00
4,000.00
$12,616,770.24
-40-
CITY OF SALINA
Salina, Kansas
Schedule 2
COMPARISON OF GROSS CASH BALANCES WITH DEPOSITORY SECURITY
December 31, 1988
Gross Cash Balances
Cash in checking
Cash in savings
Certificates of
deposit
Federal funds
Totals
Less FDIC or FSLIC
coverage
Balances Securable
by Collateral
Security required
(100% )
Security provided
by depositories
Amount Undersecured
by Statute
Bank IV
-Salina
First National
National Bank Bank and
of America Trust Company
Peoples
Heritage
Federal
Savings
and Loan
Association
First Bank
and Trust
Co.
$ 484,534.61 $ 6,265.22 $ 23,239.33 $ $
280.05 40,705.99 19,985.20
3,795,000.00 10,000.00 4,516,000.00
1,100,000.00 1,860,000.00
1,584,534.61 3,801,545.27 1,933,945.32 19,985.20 4,516,000.00
100,000.00 106,265.22 73,945.32 19,985.20 100,000.00
$1,484,534.61 $3,695,280.05 $1,860,000.00 $ $4,416,000.00
$1,484,534.61 $3,695,280.05 $1,860,000.00 $ $4,416,000.00
3,394,266.32 4,191,338.37 5,504,284.00 1,015,625.00 5,078,574.03
$
$
$
$
$
-41-
CITY OF SALINA
Salina, Kansas
SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Year Ended December 31, 1988
Federal Grantor/
Pass Through
Gr an tor /
Program Title
U.S. Department of
Housing and Urban
Development - Fair
Housing Assistance
Program
U.S. Department of Housing
and Urban Development -
Community Development
Block Grant/Small Cities
Program (Passed Through
Kansas Department of
Commerce)
Xetec, Grant No.
85-BF-280
Revels, Grant No.
86-BF-181
Housing, Grant No.
87 -HR -088
U.S. Department of Housing
and Urban Development -
Community Development
Block Grant/Small Cities
Program
Xetec, Grant No.
85-BF-280
Total Federal
Assistance
Federal
CFDA
Number
14.401
14.219
14.219
Unencumbered
Cash Balance
January 1,
1988
Receipts
Expendi l~ures
Schedule 3
Unencumbered
Cash Balance
December 31,
1988
$
$
(1) Receipt of funds from subrecipient and expenditures represent return of funds to the
Kansas Department of Commerce.
$ 2,119.39
$ 29,190.00
$ 31,309.39
5,000.00
5,000.00
5,000.00
5,000.00
224,000.00
224,000.00
224,000.00
234,000.00
10,000.00
308, 100.00 (1 )
308,100.00(1)
$12,119.39
$561,290.00
$573,409.39
-42-
SEPARATE FINANCIAL STATEMENTS
WATER AND SEWERAGE DEPARTMENT
CITY OF SALINA
Salina, Kansas
WATER AND SEWERAGE DEPARTMENT
FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT
December 31, 1988 and 1987
KENNEDY AND COE
Certified Public Accountants
Salina, Kansas
KENNEDY AND CaE
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
OFFICES IN
KANSAS
NEBRASKA
OKLAHOMA
COLORADO
HOME OFFICE:
P.O BOX 1100
SALINA, KANSAS 67402.1100
913.825.1561
To the Mayor and
The Board of City Commissioners:
We have audited the balance sheets of the Water and Sewerage Department of the
City of Salina, Kansas, as of December 31, 1988 and 1987, and the related state-
ments of income, contributed capital and retained earnings, and changes in financial
position for the years then ended. These financial statements are the responsibility
of the City's management. Our responsibility is to express an op~n~on on these
financial statements based on our audits.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all
material respects, the financial position of the Water and Sewerage Department of
the City of Salina, Kansas, as of December 31, 1988 and 1987, and the results of
its operations and the changes in its financial position for the years then ended,
in conformity with generally accepted accounting principles.
Respectfully submitted,
Salina, Kansas
June 16, 1989
~~tk.-
~.~ C.P.A.
Certified Public Accountant in charge
of and actively engaged on this audit.
MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND
SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE
SECTION OF THE AICPA DIVISION FOR CPA FIRMS
-43-
CITY OF SALINA
Salina, Kansas
WATER AND SEWERAGE DEPARTMENT
Current Assets
Cash and investments
Accounts receivable, net of
doubtful accounts - 1988,
Accrued interest receivable
Total Current Assets
BALANCE SHEETS
ASSETS
allowance for
$46,632; 1987, $36,224
Restricted Assets
Construction fund
Cash and investments
System sinking fund
Cash and investments
Plant reserve fund
Cash and investments
System reserve fund
Cash and investments
Total Restricted Assets
Property, Plant, and Equipment
Land
Water plant and equipment
Sewerage plant and equipment
Furniture and office equipment
Construction in progress (Notes
4 and 6)
Less accumulated depreciation
Total Property, Plant, and Equipment
Other Assets
Prepaid supplies
Deferred bond issuance costs, net
accumulated amortization - 1988,
1987, $61,923
Total Other Assets
Totals
of
$80,668;
December 31,
1988 1987
$ 1,650,617
382,459
22,807
2,055,883
493,615
409,200
714,868
1,329,758
2,947,441
291,939
17,003,660
10,605,126
315,816
1,030,510
29,247,051
14,575,944
14,671,107
213,453
154,393
367,846
$20,042,277
The accompanying notes are an integral part
of these financial statements.
$
698,781
321,117
69,766
1,089,664
2,355,935
365,138
923,539
1,072,758
4,717,370
291,939
15,237,405
10,430,057
205,473
330,523
26,495,397
13,834,463
12,660,934
235, 173
133,315
368,488
$18,836,456
12,959,969 11,607,588
Capital and
15,413,795 13,969,023
$20,042,277 $18,836,456
LIABILITIES
Current Liabilities
Accounts payable
Customers' meter deposits
Accrued interest payable
Accrued liability for compensated absences
Long-term obligations due within one year (Note 3)
Total Current Liabilities
Long-Term Obligations
Revenue bonds due after one year (Note 3)
Reserves, Contributed Capital
Reserves
System sinking fund
Plant reserve fund
System reserve fund
Total Reserves
and Retained Earnings
Contributed capital and retained earn~ngs
(Exhibit C)
Total Reserves, Contributed
Retained Earnings
Totals
Exhibit A
December 31,
1988 1987
$ 204,438 $ 148,615
63,610 62,840
103,917 112,911
146,517 133,067
325,000 300,000
843,482 757,433
3,785,000
4, 11 0,000
409,200
714,868
1,329,758
2,453,826
365,138
923,539
1,072,758
2,361,435
-44-
CITY OF SALINA
Salina, Kansas
WATER AND SEWERAGE DEPARTMENT
STATEMENTS OF INCOME
Operating Revenues
Water revenue
Sewerage revenue
Tapping service and frontage charges
Meter repair and service line revenue
Service charge - Sanitation department
Miscellaneous income
Total Operating Revenues
Operating Expenses
Water supply
Softening and treatment
Pumping
Distribution
Customers' accounting and collection
Administrative and general
Sewage treatment and collection
Depreciation
Total Operating Expenses
Operating Income
Other Income
Interest on investments
Miscellaneous
Total Other Income
Other Expenses
Interest on revenue bonds (Note 4)
Amortization of deferred bond ~ssuance costs
Loss on retirement of assets
Total Other Expenses
Net Income
Exhibit B
Year Ended December 31,
1988 1987
$4,130,483
1,230,075
19,208
12,831
13,253
82,315
5,488,165
97,441
978,339
195,329
466,097
347,412
717,534
618,647
792,601
4,213 ,400
1,274,765
155,932
93,864
249,796
188,402
17,675
26,078
232,155
$1,292,406
The accompanying notes are an integral part
of these financial statements.
$3,289,884
741,420
18,768
10,946
13,086
20,737
4,094,841
1l8,059
869,243
190,566
367,811
333,842
729,962
601,783
631,667
3,842,933
251,908
127,466
93,864
221,330
164,258
17,388
26,676
208,322
$
264,916
-45-
CITY OF SALINA
Salina, Kansas
Exhibit C
WATER AND SEWERAGE DEPARTMENT
STATEMENTS OF CONTRIBUTED CAPITAL AND RETAINED EARNINGS
Balance, Beginning of Year
Year Ended December 31,
1988 1987
$11,607,588 $11,222,235
1,292,406 264,916
152,366 119,828
661,112 380,178
257,000
357,786
2,362,884 1,122,708
Additions
Net income (loss) for the year (Exhibit B)
Contributions of property, plant and equipment
Transfers from
System sinking fund reserve
Plant reserve fund
System reserve fund
Total Additions
Deductions
Transfers to restricted
System sinking fund
Plant reserve fund
System reserve fund
Total Deductions
reserves
705,174
48,329
257,000
1,010,503
387,571
308,225
41,559
737,355
Balance, End of Year
$12,959,969
$11,607,588
The accompanying notes are an integral part
of these financial statements.
-46-
CITY OF SALINA
Salina, Kansas
WATER AND SEWERAGE DEPARTMENT
Exhibit D
STATEMENTS OF CHANGES IN FINANCIAL POSITION
Sources of Working Capital
From Operations
Net income (loss) (Exhibit B)
Charges against net income not affecting
working capital
Depreciation
Amortization of deferred bond issuance costs
Loss on dispositions of property, plant, and
equipment
Working capital provided by operations
Decrease in prepaid supplies
Increase in long-term obligations
Decrease in restricted assets
Proceeds from sale of property, plant, and
equipment
Total Sources of Working Capital
Applications of Working Capital
Decrease in long-term obligations
Increase in bond issuance costs
Additions to property, plant, and equipment
(net of contributions - 1988, $152,366;
1987, $119,828)
Increase in restricted assets
Increase in prepaid supplies
Total Applications of Working Capital
Increase (Decrease) in Working Capital
Year Ended December 31,
1988 1987
$1,292,406 $ 264,916
792,601 631,667
17,675 17,388
26,078 26,676
2,128,760 940,647
21, 720
2,650,000
1,769,929
6,649 1,511
3,927,058 3,592,158
325,000 300,000
38,753 27,138
2,683,135 721,843
2,355,326
5,704
3,046,888 3,410,011
$ 880,170 $ 182,147
Changes in Components of Working Capital
Increase (Decrease) ~n Current Assets
Cash and investments $ 951,836 $ 303,653
Accounts receivable 61,342 26,861
Accrued interest (46,959) 14,301
Total Increase (Decrease) ~n Current Assets 966,219 344,815
Increase (Decrease) ~n Current Liabilities
Accounts payable 55,823 16,020
Customers' meter deposits 770 2,350
Accrued expenses 4,456 54,298
Long-term obligations due within one year 25,000 90,000
Total Increase (Decrease) in Current Liabilities 86,049 162,668
Increase (Decrease) ~n Working Capital $ 880,170 $ 182,147
The accompanying notes are an integral part
of these financial statements.
-47-
1.
2.
CITY OF SAL INA
Salina, Kansas
WATER AND SEWERAGE DEPARTMENT
NOTES TO FINANCIAL STATEMENTS
December 31, 1988 and 1987
Summary of Significant Accounting Policies
a.
Fund Accounting: The City maintains its accounting records in accordance
with the principles of fund accounting in order to ensure observance
of limitations and restrictions placed on the use of resources available.
Resources are classified for accounting and reporting into funds
established according to their nature and purposes. The Water and
Sewerage Department of the City of Salina is a separate fund of the
City which is supported by user charges from its customers rather than
by tax monies.
The Department uses the accrual method of accounting in the preparation
of its financial statements. Revenue is recorded as earned and expenses
as incurred.
b.
Deferred Issuance Costs: Deferred issuance costs are amortized to expense
over the term of the related revenue bonds.
c.
Property, Plant, and Equipment and Depreciation: Property, plant, and
equipment are stated at cost. Assets acquired prior to 1981 have been
adjusted to reflect cost as determined by a firm of professional
appraisers. Depreciation is determined using the straight-line method
over the estimated useful life of each asset.
d.
Investments:
Investments are stated at cost which approximates market.
Cash and Investments
Kansas municipalities, such as the City of Salina, are authorized by Kansas
statutes to invest funds in:
(1) Temporary notes or no-fund warrants issued by the investing
governmental unit,
Time deposit, open accounts or certificates of deposit,
Time certificates of deposit,
Repurchase agreements, and
United States Treasury bills or notes with maturities
not exceeding six months.
(2 )
(3)
(4 )
(5 )
Deposits or investments with qualifying financial institutions are to be secured
by a bond or by the pledge of certain types of securities specified by statute.
Cash and investments of the City of Salina deposited with financial institutions
were 100% insured or collateralized by securities provided by such depository
financial institutions at December 31, 1988.
Cash and investments of the Water and Sewerage Department are pooled with other
funds of the City for deposit and investment purposes. Cash and investment
balances of the City included petty cash, cash in checking and savings accounts,
repurchase agreements, certificates of deposit and U.S. Treasury bills as of
December 31, 1988.
-48-
3.
Long-Term Obligations
Long-term obligations consist of the following:
December 31,
1988 1987
Combined Water and Sewage System Refunding
Revenue Bonds, Series of 1984 (the 1984
Bonds), matures serially each February 15
through 1994, remaining maturities bear
interest at rates varying from 8 3/4% to
9 3/4% per annum.
$1,530,000
$1,760,000
Combined Water and Sewage System Revenue
Bonds, Series of 1987 (the 1987 Bonds),
mature serially each October 1 through
2007, maturities bear interest at rates
varying from 7% to 9% per annum.
2,580,000
4,110,000
325,000
2,650,000
4,410,000
300,000
Less amounts due within one year
$3,785,000
,$4,110,000
Amounts Due After One Year
Aggregate maturities of the above obligations in subsequent years are as follows:
Year
Amount
1989
1990
1991
1992
1993
Thereafter
$
325,000
355,000
275,000
400,000
440,000
2,315,000
Total Bonds Outstanding,
December 31, 1988
$4,110,000
The City issued the 1987 Bonds as of October 1, 1987, for the purpose of finan-
cing certain improvements to the water and sewerage system.
The City issued the 1984 Bonds as of June 15, 1984, for the purpose of refunding
its Combined Water and Sewage System Refunding Revenue Bonds, Series of 1978
(the 1978 Bonds). The proceeds of the 1984 Bonds, cash and certain investments
were transferred to a Refunding Escrow Trust Account at a local bank, pursuant
to an escrow trust agreement dated as of June 15, 1984, and were invested in
United States Government obligations. The investments and inteTest earned on
such investments will be sufficient to pay all principal and interest on the
1978 Bonds as they become due.
The City issued the 1978 Bonds for the purpose of refunding its Combined
Water and Sewage System Revenue Bonds of 1961 and 1977. Proceeds of the
1978 Bonds were invested in United States Government obligations deposited
with a local bank, pursuant to an escrow trust agreement dated May 1, 1978.
Total funds deposited and interest earned on such funds will be sufficient
to pay all principal and interest on the 1961 and 1977 bonds as they become
due. The final maturity of the 1961 Bonds was retired in 1986.
-49-
Neither the assets deposited with the escrow agent nor the outstanding 1977
and 1978 obligations totaling $7,084,000 are reflected in the accompanying
financial statements as of December 31, 1988.
The City has established certain reserve accounts pursuant to the 1984 and
1987 bond ordinances to provide funds for the retirement of the bonds and
payment of interest thereon and for making replacements to the system in the
event other funds are not available. The gross revenues of the Department
are pledged to secure payment of the bonds; however, the pledge is subordinate
to a similar pledge to secure payment of the 1977 and 1978 bonds.
The amounts required to be maintained in the reserve accounts established
by the 1984 and 1987 bond ordinances have been provided and the total revenues
of the system for 1988 appear sufficient to meet the requirements of the
ordinances.
4.
Interest Cost
A summary of interest cost follows:
Interest Expense
Year Ended December 31,
1988 1987
$352,119 $208,459
(163,71n (44,201)
$188,402 $164,258
$163,717 $ 44,201
(91,866) ~9,32n
$ 71,851 $ 14,874
Total interest cost
Capitalized interest cost
Capitalized interest cost
Related interest earned on unexpended
bond proceeds whose use is limited
Net Interest Cost Capitalized
5.
Defined Benefit Pension Plan
Substantially all full-time employees of the City of Salina participate in the
Kansas Public Employees Retirement System ("System"), a multiple-employer
public employees retirement system. The payroll for employees of the Water
and Sewerage Department covered by the System for the years ended December 31,
1988 and 1987, respectively, was $1,125,203 and $1,005,890; the total payroll
for the Department was $1,211,510 and $1,132,385.
Substantially all employees of the City of Salina are eligible to participate
in the System after one year of employment. Employees who retire at or after
age 65 are entitled to a retirement benefit, payable monthly for life, equal
to 1 percent of their final average salary for each year of "prior" service
and 1.25 to 1.5 percent for each year of "participating" service depending
upon the number of years of service. Final average salary is the employee's
average salary over the highest four years of credited service. Benefits
fully vest on reaching 10 years of service. Vested employees may retire at
age 55 to 65 with 10 years of credited service and receive reduced retire-
ment benefits. The system also provides death and disability benefits.
Benefits are established by State statute.
-50-
Covered employees are required by State statute to contribute I~% of their
salary to the plan. The employer is required by the same statute to
contribute the remaining amounts necessary to pay benefits when due. The
Water and Sewerage Department's contribution requirement for the year ended
December 31, 1988 was $84,968, which consisted of $34,514 from the employer
and $50,454 from employees; these contributions represented 3.04% and 4% of
covered payroll, respectively. The Water and Sewerage Department's contri-
bution requirement for the year ended December 31, 1987, was $80,005, which
consisted of $39,770 from the employer and $40,235 from employees; these
contributions represented 3.9% and 4% of covered payroll, respectively.
The "penson benefit obligation" is a standardized disclosure measure of
the present value of pension benefits, adjusted for the effects of projected
salary increases and step-rate benefits, estimated to be payable in the
future as a result of employee service to date. The measure, which is the
actuarial present value of credited projected benefits, is intended to help
users assess the System's funding status on a going-concern basis and assess
progress made in accumulating sufficient assets to pay benefits when due.
The System does not make separate measurements of assets and peasion benefit
obligation for individual employers. The pension benefit obligation at
January 1, 1987, for the System as a whole, determined through an actuarial
valuation performed as of that date, was $2.96 billion. The System's net
assets available for benefits on that date were estimated to be $2.59
billion, leaving an unfunded pension benefit obligation estimated at
$369 million.
Other information related to the system can be found in the System's 1988
comprehensive annual financial report.
6.
Commi tments
The Department has entered into contractual commitments totaling $1,586,848 to
complete certain projects included in construction in process at December 31,
1988.
7.
Related Party Transactions
The Department reimbursed the City of Salina, Data Processing Fund $54,500 in
both 1988 and 1987 for data processing services.
The Department also paid $90,000 as its share of data process1ng equipment
purchased by the City of Salina, Data Processing Fund in 1988.
8.
Subsequent Bond Issue
The City of Salina issued the Combined Water and Sewage System Revenue Bonds,
Series 1988, in the total amount of $3,000,000 on January 10, 1989.
9.
Change in Accounting Estimate
The estimated useful lives of a group of water system assets were revised
during the year 1988, resulting ~n a one time charge to depreciation expense
of $108,705.
-51-