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Audit - 1984 CITY OF SALINA Sa 1 ina, Kansas FINANCIAL STATEMENTS AND AUDITORS' REPORT December 31, 1984 KENNEDY AND COE Certified Public Accountants Salina, Kansas Exhibit A Exhibit B Schedule 1 Schedule 2 Schedule 3 Schedule 4 Schedule 5 Exhibit A Exhibit B Exhibit C Exhibit D CITY OF SALINA Sa 1 ina, Ka nsas CONTENTS AUDITORS' REPORT ON FINANCIAL STATEMENTS AUDITORS' REPORT ON INTERNAL ACCOUNTING CONTROLS AUDITORS' REPORT ON COMPLIANCE FINANCIAL STATEMENTS SUMMARY STATEMENT OF RECEIPTS, EXPENDITURES, AND BALANCES BY FUNDS AND COMPARISON OF CASH BALANCES WITH ENCUM- BRANCES STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET NOTES TO FINANCIAL STATEMENTS Supplemental Information Schedule of Indebtedness Composition of Ending Cash Balances Comparison of Gross Cash Balances with Depository Security Comparison of Special Assessments Projects Expenditures to Authorizations Schedule of Active Federal Awards AUDITORS' FINDINGS SCHEDULE OF AUDITORS' FINDINGS SEPARATE FINANCIAL STATEMENTS - WATER AND SEWERAGE DEPARTMENT AUDITORS' REPORT BALANCE SHEETS STATEMENTS OF INCOME STATEMENTS OF CONTRIBUTED CAPITAL AND RETAINED EARNINGS STATEMENTS OF CHANGES IN FINANCIAL POSITION NOTES TO FINANCIAL STATEMENTS Page 1-2 3-4 5 6-7 8-25 26-30 31-32 33 34 35 36 37-38 39 40 41 42 43-44 45-46 Contents MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KENNEDY AND CaE HOME OFFICE: P. 0 BOX 1 179 CERTIFIED PUBLIC ACCOUNTANTS OFFICES IN KANSAS SALINA. KANSAS 67401 913.B25.1561 NEBRASKA OKLAHOMA AUDITORS' REPORT ON FINANCIAL STATEMENTS To the Mayor and The Board of City Commissioners: We have examined the financial statements of the year ended December 31, 1984, included herein on included all funds and account groups except (1) Saline County-City Building Authority, Salina-Saline County Board of Health, and Salina Public Library, which we have previously examined and reported on separately. (2) Firemen's Relief Association, Salina Recreation Commission, Salina Arts Commission, Salina Housing Authority, and the Salina Airport Authority, which were examined by other auditors who issued their separate reports. Our examination was made in accordance with generally accepted auditj~ng standards and the Minimum Standard Audit Program approved by the State Municipal Accounting Board and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. City of Salina, Kansas for the pages 6 to 30. Our examination The City of Salina maintains its accounting records and prepares its financial statements on the cash basis, modified by recording encumbrances. As discussed in Note 1, this basis of accounting and presentation differs in some respects from generally accepted accounting principles. Accordingly, the accompanying financial statements are not intended to present financial position and results of operations in conformity with generally accepted accounting principles. The City of Salina did not record its obligation in the amount of $58,000.00 to the Kansas Public Employees Retirement Fund as of December 31, 1983. In our opinion, the obligation should have been recorded as an encumbrance in order to conform with the City's method of accounting. If this obligation was recorded, the unencumbered cash balance of the City would decrease by $58,000.00 at January 1, 1984, and expenditures would decrease $58,000.00 for the year 1984. In our opinion, except for the effects of not encumbering the obligations as dis- cussed in the preceding paragraph, the accompanying financial statements present fairly the cash and unencumbered cash balances of the City of Salina, Kansas at December 31, 1984, and its receipts and expenditures for the year then ended in accordance with the method of accounting described in the preceding paragraph, which method has been applied in a manner consistent with that of the preceding year. -1- The accompanying supplemental information presented on pages 31 to 36 is not necessary for a fair presentation of the financial statements, but is presented as additional analytical data. This information has been subjected to the tests and other auditing procedures applied in the examination 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. Respectfully submitted, Sa 1 ina, Kansas November 8, 1985 !)~ ~ ~ ~,~ C.P.A. Certified Public Accountant in charge of and actively engaged on this audit. -2- MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KENNEDY AND CaE HOME OFFICE: P. O. BOX I 179 CERTIFIED PUBLIC ACCOUNTANTS OFFICES IN KANSAS SALINA. KANSAS 67401 913.825.1561 NEBRASKA OKLAHOMA AUDITORS' REPORT ON INTERNAL ACCOUNTING CONTROLS To the Mayor and The Board of City Commissioners: We have examined the financial statements of the City of Salina, Kansas, for the year ended December 31, 1984, and have included our report thereon on pages 1 and 2. As part of our examination, we made a study and evaluation of the system of internal accounting control to the extent we considered necessary to evaluate the system as required by generally accepted auditing standards and the standards for financial and compliance audits contained in the U.S. General Accounting Office's 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. However, we did not perform compliance tests of the controls since, in our opinion, it ~lS more efficient to perform primarily substantive audit procedures for transactions and balances applicable to the categories. The purpose of our study and evaluation was to determine the nature, timing, and extent of performing auditing procedures for expressing an opinion on the entity'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 ma inta ining a sys tem of interna 1 account ing control. In fulf illing this respons ibil ity, estimates and judgements 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 established method of accounting. 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 evaluation 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 com- pliance with the procedures may deteriorate. -3- 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 condition that we believe to be a material weakness. Disbursement of funds lacks segregation of duties to the extent that the City Clerk, who approves all invoices for payment, also has control of the signature plate used for signing checks. This report is intended solely for the use of the City of Salina, Kansas, the cogni- zant federal agency, and other applicable federal audit agencies and should not be used for any other purpose. Respectfully submitted, Sa 1 i na, Ka ns a s November 8, 1985 t1~~~~ -4- MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KENNEDY AND CaE HOME OFFICE: P. O. BOX 1 179 CERTIFIED PUBLIC ACCOUNTANTS OFFICES IN KANSAS SALINA. KANSAS 67401 913-825-1561 NEBRASKA OKLAHOMA AUDITORS' REPORT ON COMPLIANCE To the Mayor and The Board of City Commissioners: We have examined the financial statements of the City of Salina, Kansas, for the year ended December 31, 1984, and have included our report thereon en pages 1 and 2. Our examination was made in accordance with generally accepted auditing standards; the provisions of Standards for Audit of Governmental Organizations, Programs, Activities and Functions, promulgated by the U.S. Comptroller General, as they pertain to financial and compliance audits; the provisions of the Office of Manage- ment and Budget's (O}fB) Compliance Supplement-Uniform Requirements for Grants to State and Local Governments (the compliànce supplement); the provisions of OMB's Circular A-I02, Uniform Administrative Requirements for Grants-in-Aid to State and Local Governments, Attachment P, Audit Requirements; and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary ~n the circumstances. Based on our examination, we found that, for the items tested, the City of Salina, Kansas, complied with the material terms and conditions of the federal award agree- ments, except as described in the Schedule of Auditors' Findings (pages 37 to 38). Further, based on our examination and the procedures referred to above, nothing came to our attention to indicate that the City of Salina, Kansas, had not complied with the signficiant compliance terms and conditions of the awards referred to above. This report is intended solely for the use of the City of Salina, Kansas, the cogni- zant federal agency, and other applicable federal audit agencies, and should not be used for any other purpose. Respectfully submitted, Sa 1 ina, Kansas November 8, 1985 Æ~~ {'~ -5- FINANCIAL STATEMENTS CITY OF SALINA Sa 1 i na, Ka ns a s SUMMARY STATEMENT OF RECEIPTS, EXPENDITURES, AND BALANCES BY FUNDS AND COMPARISON OF CASH BALANCES WITH ENCUMBRANCES Year Ended December 31, 1984 Fund General Fund Special Revenue Funds Emergency Preparedness Street Machinery Special Gasoline Tax Federal Revenue Sharing Special Highway Improvement Fund Tourism and Convention Promotion Employee Benefit Fund Ut il ity Fund Special Parks and Recreation Special Alcohol Programs Special Liability Fund Fair Housing Assistance Program Heritage Conservation Business Improvement District Debt Service Fund Bond and Interest Capital Projects Fund Construction Fund Enterprise Funds Go If Cours e Sanitation Parking Meters Bicentennial Center Solid Waste Disposal Water and Sewerage Bicentennial Center Data Processing Events Fund (Note 4) Water and Sewerage Bond Fund for Combined Water and Sewage System Refunding Revenue Bonds, Series of 1978 Water and Sewerage Reserve Accounts for Combined Water and Sewage System Refunding Revenue Bonds, Series of 1978 Unencumbered Cash Ba lance January 1, 1984 $1,924,802.98 5,810.89 75,495.68 212,244.53 18,273.76 43,933.27 94,103.30 65,011.67 138,620.64 455.99 54.27 146,829.50 0,285.09) 3,041.12 462,361. 90 700,984.11 20,251. 64 305,187.68 2,516.96 127,542.63 43,988.76 637,535.63 7,727.06 86.90 1,277,222.17 691,993.92 Receipts $8,844,648.33 105,527.55 42,553.76 662,132.58 404,331.37 133,074.88 1,879,474.88 430,429.58 49,613.19 49,613.19 59,822.20 28,469.09 9,469.75 49,411.43 2,071,266.48 1,342,224.17 216,653.68 683,463.17 42,072.95 609,668.01 302,383.14 7,124,915.26 606,406.82 219,691.37 214,214.28 47,068.65 Exhibit A Expenditures Unencumbered Cash Ba lance ,December 31, 1984 Encumbrances December 31, 1984 Cash Ba lance December 31, 1984 $ 8,006,052.87 $2,763,398.44 $1,296,671.16 $4,060,069.60 105,868.62 31,933.60 719,482.20 403,743.07 5,469.82 86,115.84 154,894.91 18,862.06 43,933.27 83,907.11 142,447.39 91,174.35 69.18 3,175.73 8,645.55 86,115.84 167,897.52 32,380.06 43,933.27 90,239.81 415,796.33 133,196.61 69.18 13,002.61 13,518.00 143,271.07 1,802,039.16 477 ,875.87 50,000.00 49,667.46 31,742.34 18,164.69 3,808.70 48,721. 03 6,332.70 273,348.94 42,022.26 174,909.36 3,019.31 8,702.17 690.40 904.85 175,814.21 3,019.31 8,702.17 791.04 100.64 2,077 ,232.80 456,395.58 456,395.58 2,002,402.83 40,805.45 3,921.26 44,726.71 219,993.51 667,733.36 43,923.11 647,913 . 65 240,804.48 7,199,163.08 605,772.99 190,856.81 16,911.81 320,917.49 666.80 89,296.99 105,567.42 563,287.81"- 8,360.89 28,921.46 15,632.91 5,513.62 4,797.17 32,544.72 326,431. 11 666.80 160,104.76 111,853.34 730,736.94 8,360.89 33,718.63 70,807.77 6,285.92 167,449.13 1,491,436.45 739,062.57 -6- CITY OF SALINA Sa 1 ina, Kansas SUMMARY STATEMENT OF RECEIPTS, EXPENDITURES, AND BALANCES BY FUNDS AND COMPARISON OF CASH BALANCES WITH ENCUMBRANCES Year Ended December 31, 1984 Fund Unencumbered Cash Ba lance January 1, 1984 Water and Sewerage Principal and Interest Account for Combined Water and Sewage System Refunding Revenue Bonds, Series of 1984 $ Water and Sewerage Reserve Accounts for Combined Water and Sewage System Refunding Revenue Bonds, Series of 1984 Depreciation and Emergency Replacement Extension and Bond Retirement 577,773.87 582,678.03 Intragovernmental Fund Central Garage 7,510.06 Trust and Agency Funds Citizenship Trust HUD Community Development Cemetery Endowment Mausoleum Trust Mausoleum Endowment 11,691.81 66,718.70 70,750.00 490.00 17,575.17 Totals (Memorandum Only) $8,333,979.51 The accompanying notes are an integral part of this financial statement. Receipts $ 540,867.98 525,744.30 53,033.51 54,418.47 499,968.82 998.65 150,227.19 5,790.34 $28,059,649.02 Expenditures $ 519,045.63 187,405.20 $28,725,117.15 Unencumbered Cash Balance December 31, 1984 $ 540,867.98 525,744.30 630,807.38 637,096.50 01,566.75) 12,690.46 29,540.69 76,540.34 490.00 17,575.17 $7,668,511.38 Encumbrances December 31, 1984 $ 31,866.30 4,853.61 $1,960,204.58 Exhibit A (Contd.) Cash Balance December 31, 1984 $ 540,867.98 525,744.30 630,807.38 637,096.50 20,299.55 12,690.46 34,394.30 76,540.34 490.00 17,575.17 $9,628,715.96 -7- CITY OF SALINA Sa 1 ina, Kansas STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 GENERAL FUND Receipts Current tangible tax Vehicle tax Delinquent taxes Local sales tax Bingo gross receipts tax City 1 iquor 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 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 Attorney Municipal Court City Building Engineering Fire Inspection Park Police Street Huma n Re la t ions Emergency Medial Services Traffic Swimming Pools Administration and Planning Insurance and Contingencies Arts Commission Actual 1 imi ts $1,326,021. 33 331,817.49 57,918.29 3,140,348.92 19,411.72 49,613.17 223,920.22 165,076.07 12,334.82 3,090.00 209,993.06 343,376.87 1,165,927.44 8,018.50 735,658.31 179,353.13 149,235.93 168,910.88 354,622.18 200,000.00 8,844,648.33 285,940.31 74,229.77 180,643.52 47,891.02 58,008.48 127,096.48 134,548. 12 1,499,834.18 79,705.96 367,445.47 1,608,293.46 526,404.86 47,495.08 383,675.87 79,982.38 38,305.13 104,198.68 182,539.59 69,406.22 Budget $1,348,625.00 239,460.00 30,500.00 2,600,000.00 18,000.00 50,000.00 221,000.00 170,000.00 12,000.00 3,100.00 225,480.00 350,000.00 900,000.00 4,900.00 370,000.00 159,600.00 120,000.00 132,000.00 320,710.00 200,000.00 7,475,375.00 290,220.00 72,070.00 183,400.00 49,740.00 54,100.00 138,910.00 136,940.00 1,513,790.00 100,200.00 372,170.00 1,601,590.00 528,870.00 47,090.00 347,710.00 86,730.00 38,100.00 104,050.00 193,380.00 68,090.00 Exhibit B (Over) Under Budget $ 22,603.67 (92,357.49) (27,418.29) (540,348.92) 0,411. 72) 386.83 (2,920.22) 4,923.93 034.82) 10.00 l5,486.94 6,623.13 (265,927.44) 0,118.50) 065,658.31) 09,753.13) (29,235.93) 06,910.88) 03,912.18) 0,369,273.33) 4,279.69 (2,159.77) 2,756.48 1,848.98 0,908.48) 11,813.52 2,391.88 13,955.82 20,494.04 4,724.53 (6,703.46) 2,465.14 (405.08) 05,965.87) 6,747.62 (205.13) 048.68) 10,840.41 0,316.22) -8- CITY OF SALINA Sa 1 ina, Kansas Exhibit B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 GENERAL FUND (CONTD.) Expenditures (Contd.) Department (Contd.) Cemetery General Improvement Museum Floodworks Neighborhood Centers Capital Improvements Total Expenditures Budget (Over) Under Budget Actual Receipts Over (Under) Expenditures $ 50,478.67 $ 56,670.00 $ 6,191.33 50,733.60 55,700.00 4,966.40 16,408.78 83,000.00 66,591.22 57,273.75 57,690.00 416.25 70,012.15 69,160.00 (852.15) 1,865,501.34 2,705,000.00 839,498.66 8,006,052.87 8,954,370.00 948,317.13 838,595.46 0,478,995.00) (2,317,590.46) 1,924,802.98 1,478,995.00 (445,807.98) $2,763.398.44 $ ($2,763,398.44) Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 EMERGENCY PREPAREDNESS (NOTE 2) Receipts Other apportionments and grants Matching funds from the State of Kansas Reimbursement of expenditures Total Receipts $ 65,041.00 35,799.51 4,687.04 105,527.55 Expenditures Personal services Contractual services Materials and supplies Sundry expenditures Capital outlay Total Expenditures 56,736.64 32,348.94 4,236.22 180.00 12,366.82 105,868.62 Receipts Over (Under) Expenditures 041.07) Unencumbered Cash Balance, January 1 5,810.89 Unencumbered Cash Balance, December 31 $ 5,469.82 -9- CITY OF SALINA Sa 1 ina, Kansas Exhibit B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 (Over) Under Ac tua 1 Budget Budget STREET MACHINERY (NOTE 2) Receipts Interest from investments $ 553.76 Trans fers from General Fund 42,000.00 Total Receipts 42,553.76 Expenditures Capital outlay 31,933.60 Receipts Over Expenditures 10,620.16 Unencumbered Cash Ba lance, January 1 75,495.68 Unencumbered Cash Ba lance, December 31 $ 86,115.84 SPECIAL GASOLINE TAX Receipts Spec ia 1 gasoline tax $ 662,132.58 $ 700,000.00 $ 37,867.42 Expenditures Personal services 58,221.24 62,850.00 4,628.76 Contractual services 415,242.52 435,000.00 19,757.48 Materials and supplies 96,018.44 110,220.00 14,201. 56 Trans fers to General Fund 150,000.00 150,000.00 Total Expenditures 719,482.20 758,070.00 38,587.80 Receipts Over (Under) Expenditures (57,349.62) (58,070.00) 020.38) Unencumbered Cash Ba lance, January 1 212,244.53 69,130.00 (143,114.53) Unencumbered Cash Balance, December 31 $ 154,894.91 $ 11,060.00 ($ 143,834.91) FEDERAL REVENUE SHARING Receipts Grants from Federal government $ 395,106.00 $ 411,000.00 $ 15,894.00 Interest from investments 9,225.37 (9,225.37) Total Receipts 404,331.37 411,000.00 6,668.63 Expenditures Contractual service 26,110.50 32,500.00 6,389.50 Trans fers to other funds 265,000.00 265,000.00 Capital outlay 112,632.57 113,500.00 867.43 Total Expenditures 403,743.07 411 ,000.00 7,256.93 -10- CITY OF SALINA Sa 1 ina, Kansas Exhibit B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 FEDERAL REVENUE SHARING (CONTD.) (Over) Under Actual Budget Budget $ 588.30 $ ($ 588.30) 18,273.76 08,273.76) $ 18,862.06 $ . ($ 18,862.06) Receipts Over Expenditures Unencumbered Cash Ba la nce, January 1 Unencumbered Cash Balance, December 31 SPECIAL HIGHWAY IMPROVEMENT FUND (NOTE 2) Receipts $ Expenditures Receipts Over Expenditures Unencumbered Cash Balance, January 1 43,933.27 Unencumbered Cash Balance, December 31 $ 43,933.27 TOURISM AND CONVENTION PROMOTION (NOTE 2) Receipts Transient guest tax $ 133,074.88 Expenditures Professional services 143,271.07 Receipts Over (Under) Expenditures 00,196.19) Unencumbered Cash Balance, January 1 94,103.30 Unencumbered Cash Balance, December 31 $ 83,907.11 -11- CITY OF SALINA Sa 1 ina, Kansas Exhibit B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 EMPLOYEE BENEFIT FUND Receipts Current tangible taxes Delinquent taxes Interest on investments Employees contributions to Kansas Firemen's and Policemen's Retire- ment Fund 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 l.nsurance Unemployment insurance Workman's compensation Ea rned leave Total Expenditures Receipts over (Under) Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 UTILITY FUND Receipts Current tangible taxes Delinquent taxes Interest on investments Vehicle taxes Total Receipts Ac tua 1 $1,143,325.03 34,328.34 16,175.52 l73,428.04 18,156.81 135,609.56 727.94 126,564.22 191,159.42 40,000.00 1,879,474.88 9,366.50 151,695.08 914,436.56 220,829.29 385,441. 81 14,415.88 83,192.00 22,662.04 1,802,039.16 77,435.72 65,011.67 $ 142,447.39 $ 344,740.84 12,186.30 2,641.31 70,861.13 430,429.58 Budget $1,167,339.00 10,000.00 15,000.00 191,800.00 270,500.00 159,200.00 1,800.00 90,350.00 137,800.00 40,000.00 2,083,789.00 9,000.00 406,200.00 873,400.00 250,000.00 407,900.00 30,000.00 91,500.00 40,000.00 2,108,000.00 (24,211.00) 24 , 211 .00 $ $ 352,192.00 4,000.00 2,000.00 51,140.00 409,332.00 (Over) Under Budget $ 24,013.97 (24,328.34) 0,175.52) 18,371.96 252,343.19 23,590.44 1,072.06 (36,214.22) (53,359.42) 204,314.12 (366.50) 25L~, 504. 92 (41,036.56) 29,170.71 22,458.19 15,584.12 8,308.00 17,337.96 305,960.84 001,646.72) (40,800.67) ($ 142,447.39) $ 7,451.16 (8,186.30) (641.31) 09,721.13) (21,097.58) -12- CITY OF SALINA Sa 1 ina, Kansas Exhibit B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 Actual UTILITY FUND (CONTD.) Expenditures Gas service Light and power serV1ce Water service Traffic control signals Street lighting Total Expenditures $ 48,391.89 98,652.29 33,575.08 34, 791. 91 262,464.70 477,875.87 Receipts Over (Under) Expenditures (47,446.29) Unencumbered Cash Balance, January 1 138,620.64 Unencumbered Cash Balance, December 31 $ 91,174.35 SPECIAL PARKS AND RECREATION Receípts City liquor tax $ 49,613.19 Expenditures Transfer to General Fund 50,000.00 Receipts Over (Under) Expenditures (386.81) Unencumbered Cash Balance, January 1 455.99 Unencumbered Cash Balance, December 31 $ 69.18 SPECIAL ALCOHOL PROGRAMS Re ce ip ts City liquor tax $ 49,613.19 Expenditures Contractual serV1ces 49,667.46 Receipts Over (Under) Expendítures (54.27) Unencumbered Cash Balance, January 1 54.27 Unencumbered Cash Balance, December 31 $ Budget $ 46,000.00 ($ 96,000.00 34,000.00 30,000.00 290,000.00 496,000.00 (86,668.00) 86,668.00 $ $ 50,000.00 50,770.00 (770.00) 770.00 $ $ 50,000.00 55,080.00 (5,080.00) 5,080.00 $ (Over) Under Budget 2,391.89) (2,652.29) 424.92 (4,791.91) 27,535.30 18,124.13 (39,221. 71) (51,952.64) ($ 91,174.35) $ 386.81 770.00 (383.19) 314.01 ($ 69.18) $ 386.81 5,412.54 (5,025.73) 5,025.73 $ -13- CITY OF SALINA Sa lina, Kansas Exhibit B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 SPECIAL LIABILITY FUND (Over) Under Ac tua 1 Budget Budget $ 40,799.72 $ 41,144.00 $ 344.28 1,815.27 500.00 0,315.27) 6,900.00 7,700.00 800.00 10,307.2l 7,420.00 (2,887.21) 59,822.20 56,764.00 0,058.20) Receipts Current tangible taxes Delinquent tangible taxes Transfers from other funds Vehicle taxes Total Receipts Expenditures Liability insurance Professional services Total Expenditures 27,703.00 4,039.34 31,742.34 35,000.00 20,000.00 55,000.00 7,297.00 15,960.66 23,257.66 Receipts Over Expenditures 28,079.86 1,764.00 (26,315.86) 03,593.50) Unencumbered Cash Balance, January 1 146,829.50 113,236.00 Unencumbered Cash Balance, December 31 $ 174,909.36 $ 115,000.00 ($ 59,909.36) FAIR HOUSING ASSISTANCE PROGRAM (NOTE 2) Receipts Grants from Federal government Reimbursement of expenditures Total Receipts $ 17,962.69 10,506.40 28,469.09 13,263.78 4,819.77 81.14 18,164.69 10,304.40 0,285.09) $ 3,019.31 Expenditures Personal services Contractual services Materials and supplies Total Expenditures Receipts Over Expenditures Unencumbered Cash Balance (Deficit), Ja nua ry 1 Unencumbered Cash Balance, December 31 -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, 1984 (Over) Under Actual Budget Budget HERITAGE CONSERVATION (NOTE 2) Receipts Grants from federal government $ 9,469.75 Expenditures Personal services 3,443.20 Contractual serv~ces 224.18 Ma terials and supplies 141.32 Total Expenditures 3,808.70 Receipts Over Expenditures 5,661. 05 Unencumbered Cash Balance, January 1 3,041.l2 Unencumbered Cash Balance, December 31 $ 8,702.17 BUSINESS IMPROVEMENT DISTRICT Receipts Assessment fees $ 42,411.43 $ 50,000.00 $ 7,588.57 Trans fers from General Fund 7,000.00 C7 ,000.00) Total Rece ipts 49,411.43 50,000.00 588.57 Expenditures Persona 1 services 20,609.84 22,000.00 1,390.16 Contractual services 26,715.10 24,700.00 (2,015.10) Ma terials and suppl ies 367.14 2,200.00 1,832.86 Sundry expenditures 250.00 300.00 50.00 Capital outlay 778.95 800.00 21. 05 Total Expenditures 48,721.03 50,000.00 1,278.97 Receipts over Expenditures 690.40 (690.40) Unencumbered Cash Ba lance, January 1 Unencumbered Cash Ba lance, December 31 $ 690.40 $ ($ 690.40) BOND AND INTEREST Receipts Current tangible taxes $ 857,789.17 $ 875,782.00 $ 17,992.83 Delinquent tangible taxes 34,188.65 15,000.00 09,188.65) Current special assessment taxes 681,741. 94 670,000.00 01,741. 94) Delinquent special assessment taxes 45,275.18 20,000.00 (25,275.18) Interest from investments 20,032.96 20,000.00 (32.96) -15- CITY OF SALINA Sa lina, Kansas Exhibit B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 (Over) Under Actual Budget Budget BOND AND INTEREST (CONTD.) Receipts (Contd.) Accrued interest on bonds sold $ 2,667.29 $ 2,000.00 ($ 667.29) Special assessments 3,891.37 4,000.00 108.63 Trans fers from other funds 233,700.00 221,700.00 02,000.00) Vehicle taxes 191,979.92 138,120.00 (53,859.92) Total Receipts 2,071,266.48 1,966,602.00 004,664.48) Expenditures General bond principal 740,000.00 740,000.00 General bond interest 309,584.52 309,600.00 15.48 Curb, gutter and pav~ng principal (City share) 114,896.12 114,900.00 3.88 Curb, gutter and paving principal (Property owner share) 634,103.88 634,100.00 0.88) Curb, gutter and paving interest (City share) 33,573.25 33,600.00 26.75 Curb, gutter and paving interest (Property owner share) 244,611. 28 244,600.00 01.28) Fiscal agency commission and postage 400.00 700.00 300.00 Estimated interest - Bonds to be issued 63.75 40,000.00 39,936.25 Total Expenditures 2,077,232.80 2,11 7 ,500.00 40,267.20 Receipts Over (Under) Expenditures (5,966.32) (150,898.00) 044,931. 68) Unencumbered Cash Ba lance, January 1 462,361.90 150,898.00 011,463.90) Unencumbered Cash Balance, December 31 $ 456,395.58 $ ($ 456,395.58) CONSTRUCTION FUND (NOTE 2) Receipts Issuance of general obligation bonds $ Issuance of internal improvement bonds Transfers from other funds Reimbursement of expenditures Other Total Receipts 425,000.00 768,000.00 10,000.00 58,017.58 81,206.59 1,342,224.17 Expenditures Payment of temporary note and interest 533,566.04 Construction and capital outlay 1,468,836.79 Total Expenditures 2,002,402.83 Receipts Over (Under) Expenditures (660,178.66) Unencumbered Cash Balance, January 1 700,984.11 Unencumbered Cash Balance, December 31 $ 40,805.45 -16- CITY OF SALINA Sa 1 ina, Kansas Exhibit B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 Actual GOLF COURSE Receipts Membership and green fees Ca rt rental Cart storage Ca rt user fees oil well lease Sales Total Receipts $ 137,440.35 42,424.47 3,616.25 3,355.00 4,802.83 25,014.78 216,653.68 Expenditures Personal services Contractual services Materials and supplies Sundry expenditures Capital outlay Total Expenditures 94,644.94 41,222.59 39,880.24 30,160.74 14,085.00 219,993.51 Receipts Over (Under) Expenditures 0,339.83) Unencumbered Cash Balance, January 1 20,251.64 Unencumbered Cash Balance, December 31 $ 16,911.81 SANITATION Receipts Interest from investments Miscellaneous sales and services Service fees Reimbursement of expenditures Total Receipts $ 1,107.52 1,470.00 680,275.00 610.65 683,463.17 Expenditures Personal services Contractual services Materials and supplies Transfer to Bond and Interest Fund Capital outlay Total Expenditures 258,013.36 125,569.61 97,704.39 132,800.00 53,646.00 667,733.36 Receipts Over (Under) Expenditures 15,729.81 Unencumbered Cash Balance, January 1 305,187.68 Unencumbered Cash Balance, December 31 $ 320,917.49 Budget $ 145,200.00 37,200.00 6,300.00 10,800.00 5,000.00 39,300.00 243,800.00 91,710.00 38,650.00 45,100.00 60,800.00 16,950.00 253,210.00 (9,410.00) 10,591.00 $ 1,181.00 ($ $ 2,000.00 3,000.00 660,960.00 1,000.00 666,960.00 276,100.00 143,220.00 87,450.00 132,800.00 75,000.00 714,570.00 (47,610.00) 211 ,312.00 $ 163.702.00 ($ (Over) Under Budget $ 7,759.65 (5,224.4 n 2,683.75 7,445.00 197.17 14,285.22 27,146.32 (2,934.94) (2,572.59) 5,219.76 30,639.26 2,865.00 33,216.49 (6,070.1n (9,660.64) 15,730.81) $ 892.48 1,530.00 09,315.00) 389.35 (16,503.17) 18,086.64 17,650.39 00,254.39) 21,354.00 46,836.64 (63,339.81) (93,875.68) 157.215.49) -17- CITY OF SALINA Sa 1 ina, Kansas Exhibit B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 Ac tua 1 PARKING METERS Receipts Parking meter receipts Parking meter permits Total Receipts $ 972.95 41,100.00 42,072.95 Expenditures Personal services Contractual services Materials and supplies Total Expenditures 32,092.08 6,263.02 5,568.01 43,923.11 Receipts Over (Under) Expenditures 0,850.16) Unencumbered Cash Balance, January 1 2,516.96 Unencumbered Cash Balance, December 31 $ 666.80 BICENTENNIAL CENTER Receipts Rent Concessions Reimbursement of expenditures Transfers from Federal Revenue Sharing Fund Total Receipts $ 127,131.18 214,369.94 3,166.89 265,000.00 609,668.01 Expendi tures Personal services Contractual services Materials and supplies Sundry expenditures Capital outlay Total Expenditures 276,292.57 239,033.70 42,358.55 77 ,081. 76 13,147.07 647,913.65 Receipts Over (Under) Expenditures (38,245.64) Unencumbered Cash Balance, January 1 127,542.63 Unencumbered Cash Balance, December 31 $ 89.296.99 Budget $ 1,200.00 54,300.00 55,500.00 32,040.00 16,200.00 8,480.00 56,720.00 0,220.00) 1,479.00 $ 259.00 ($ $ 150,000.00 230,000.00 265,000.00 645,000.00 288,460.00 263,390.00 43,360.00 110,950.00 30,170.00 736,330.00 (91,330.00) 131,659.00 $ 40 , 329.00 ($ (Over) Under Budget $ 227.05 13,200.00 13,427.05 (52.08) 9,936.98 2,911.99 12,796.89 630.16 0,037.96) 407.80) $ 22,868.82 15,630.06 (3,166.89) 35,331.99 12,167.43 24,356.30 1,001.45 33,868.24 17,022.93 88,416.35 (53,084.36) 4,116.37 48,967.99) -18- CITY OF SALINA Sa 1 ina, Ka nsas Exhibit B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 (Over) Under Ac tua 1 Budget Budget SOLID HASTE DISPOSAL Receipts Income from leased land $ 39.24 $ 14,000.00 $ 13,960.76 Service fees 301,055.81 235,000.00 (66,055.81) Reimbursement of expenditures 1,288.09 0,288.09) Total Receipts 302,383.14 249,000.0(~ (53,383.14) Expenditures Personal serv~ces 65,770.40 69,950.00 4,179.60 Contractual services 25,030.36 27,700.00 2,669.64 Ma terials and supplies 51,103.72 55,510.00 4,406.28 Trans fers to other funds 98,900.00 98,900.0C~ Total Expenditures 240,804.48 252,060.0C~ 11,255.52 Receipts Over (Under) Expenditures 61,578.66 0,060.00) (64,638.66) Unencumbered Cash Balance, January 1 43,988.76 20,942.0C~ (23,046.76) Unencumbered Cash Ba lance, December 31 $ 105,567.42 $ 17,882.0C~ ($ 87,685.42) WATER AND SEWERAGE FUND Receipts Wa ter Sewerage Sanitation fees Tapping and front footage service Service charge - Sanitation department Meter repair and service line revenue Miscellaneous income Sales tax collections Meter deposits Reserve for Extension and Bond Re- tirement Reserve for Depreciation and Emergency Issuance of Combined Water and Sewage System Refunding Revenue Bonds, Series of 1984 (Note 3) Total Receipts $2,812,416.18 $2,754,000.00 ($ 58,416.18) 675,895.27 714,000.00 38,104.73 673,600.45 660,000.00 03,600.45) 21,065.36 15,000.00 (6,065.36) 6,733.28 12,000.00 5,266.72 27,440.94 (27,440.94) 57,919.90 12,000.00 (45,919.90) 44,893.88 40,000.00 (4,893.88) 34,950.00 38,000.00 3,050.00 400,000.00 400,000.00 400,000.00 400,000.00 2,770,000.00 (2,770,000.00) 7,124,915.26 5,045,000.00 (2,079,915.26) Expenditures (Note 5) Water supply Softening and treatment Pumping Distribution 84,773.78 725,203.09 219,377.60 340,838.01 89,100.00 692,350.00 178,600.00 233,850.00 4,326.22 02,853.09) (40,777.60) 006,988.01) -19- CITY OF SALINA Sa 1 ina, Kansas Exhibit B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 WATER AND SEWERAGE FUND (CONTD.) Expenditures (Contd.) 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 Transfer to Reserve for Extension and Bond Retirement Reserve for Depreciation and Emergency Transfer to Refunding Escrow Trust Account (Note 3) Bond issuance cost (Note 3) Total Expenditures (Note 5) Receipts Over (Under) Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 BICENTENNIAL CENTER EVENTS FUND (NOTE 4) Receipts Expenditures Transfer of net rental fees to Bicentennial Center Fund Special events expenditures Total Expenditures Receipts Over Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 (Over) Under Actual Budget Budget $ 297,587.14 $ 310,200.00 $ 12,612.86 575,806.98 584,000.00 8,193.02 586,974.47 594,140.00 7,165.53 520,483.31 406,820.00 013,663.31) 680,000.00 660,000.00 (20,000.00) 302,694.82 400,000.00 97,305.18 44,893.88 36,000.00 (8,893.88) 50,530.00 33,000.00 07,530.00) 400,000.00 400,000.00 400,000.00 400,000.00 2,601,900.00 168,100.00 7,199,163.08 (2,601,900.00) (168,100.00) (2,181,103.08) 5,018,060.0C~ 04,247.82) 26,940.00 101,187.82 _?37,535.63 716,023.00, 78,487.37 $ 563,287.81 $ 742,963.0C~ $ 179,675.19 $ 606,406.82 55,009.39 550,763.60 605,772.99 633.83 7,727.06 $ 8,360.89 -20- CITY OF SALINA Sa 1 ina, Ka nsas Exhibit B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 (Over) Under Ac tua 1 Budget Budget DATA PROCESSING Receipts Sale of commodities $ 1,234.12 $ 1,000.00 ($ 234.12) Fees 208,766.00 189,900.00 (18,866.00) Computer programming s erv~ce 9,691.25 14,000.OC~ 4,308.75 Total Receipts 219,691.37 204,900.0C~ (14,791.37) Expenditures Personal services 49,399.60 50,240.00 840.40 Contractual services 137,701. 81 149,660.00 11,958.19 Ma terials and supplies 3,755.40 5 ,000 . O(~ 1,244.60 Total Expenditures 190,856.81 204,900. O(~ 14,043.19 Receipts Over Expenditures 28,834.56 (28,834.56) Unencumbered Cash Ba lance, Janua ry 1 86.90 (86.90) Unencumbered Cash Ba lance, December 31 $ 28,921.46 $ ($ 28,921.46) BOND FUND FOR COHBINED WATER AND SEWAGE SYSTEM REFUNDING REVENUE BONDS, SERIES OF 1978 (NOTE 2) Receipts Interest from investments Transfers from Water and Sewerage Fund Total Receipts Expenditures Bond principal Bond interest Transfer to Refunding Escrow Trust Account (Note 3) Transfer to Principal and Interest Account for Combined Water and Sewage System Refunding Revenue Bonds, Series of 1984 Total Expenditures Receipts Over (Under) Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 $ 46,080.97 168,133.31 214,214.28 1,000.00 138,835.62 1,172,553.15 179,047.68 1,491,436.45 (1,277,222.17) 1,277,222.17 $ -21- CITY OF SALINA Sa 1 ina, Kansas Exhibit B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 RESERVE ACCOUNT FOR COMBINED WATER AND SEWAGE SYSTEM REFUNDING REVENUE BONDS, SERIES OF 1978 (NOTE 2) Receipts Interest from investments Expenditures Transfer to Refunding Escrow Trust Account (Note 3) Transfer to reserve account from Combined Water and Sewage System Refunding Revenue Bonds, Series of 1984 Total Expenditures Receipts Over (Under) Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 PRINCIPAL AND INTEREST ACCOUNT FOR COMBINED WATER AND SEWAGE SYSTEM REFUNDING REVENUE BONDS, SERIES OF 1984 (NOTE 2) Receipts Interest from investments Transfers from Water and Sewerage Fund Transfer from Bond Fund for Combined Water and Sewage System Refunding Revenue Bonds, Series of 1978 Total Receipts Expendi tures Receipts Over Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 Ac tua 1 (Over) Under Budget Budget $ 47,068.65 288,328.50 450,734.07 739,062.57 (691,993.92) 691,993.92 $ $ 9,470.30 352,350.00 179,047.68 540,867.98 540,867.98 $ 540,867.98 -22- CITY OF SALINA Sa 1 ina, Kansas Exhibit B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 RESERVE ACCOUNT FOR COMBINED WATER AND SEWAGE SYSTEM REFUNDING REVENUE BONDS, SERIES OF 1984 (NOTE 2) Receipts Interest from investments Transfer from Reserve Account for Combined Water and Sewage System Refunding Revenue Bonds, Series of 1978 Transfer from Refunding Escrow Trust Account (Note 3) Total Receipts Expenditures Receipts Over Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 RESERVE ACCOUNT FOR COMBINED WATER AND SEWAGE SYSTEM DEPRECIATION AND EMERGENCY REPLACEMENT (NOTE 2) Receipts Interest from investments Expenditures Receipts Over Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 RESERVE ACCOUNT FOR COMBINED AND SEWAGE SYSTEM EXTENSION BOND RETIREMENT (NOTE 2) Receipts Interest from investments WATER AND Expenditures Receipts Over Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 Actual (Over) Under Budget Budget $ 12,232.50 450,734.07 62,777.73 525,744.30 525,744.30 $ 525,744.30 $ 53,033.51 53,033.51 577,773.87 $ 630,807.38 $ 54,418.47 54,418.47 582,678.03 $ 637,096.50 -23- CITY OF SALINA Sa 1 ina, Kansas Exhibit STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 CENTRAL GARAGE (NOTE 2) Receipts Reimbursement of expenditures 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 (Deficit), December 31 CITIZENSHIP TRUST (NOTE 2) Receipts Interest from investments Expenditures Receipts Over (Under) Expenditures Unencumbered Cash Balance, January 1 Un~ncumbered Cash Balance, December 31 HUD COMMUNITY DEVELOPMENT (NOTE 2) Receipts Grants from federal government Interest from investments Collection of housing and winteri- zation loans - Principal and interest Reimbursement of expenditures Miscellaneous Total Receipts Expenditures Personal services Contractual services Materials and supplies Capital outlay Total Expenditures B (Contd.) Ac tua 1 (Over) Under Budget Budget $ 499,968.82 96,381.76 18,222.11 383,298.82 17,549.82 3,593.12 519,045.63 09,076.81) 7,510.06 ($ 11,566.75) $ 998.65 998.65 11,691.81 $ 12,690.46 $ 130,021.32 791.61 16,381. 65 2,176.61 856.00 150,227.19 34,196.24 143,818.90 1,075.06 8,315.00 187,405.20 -24- CITY OF SALINA Sa 1 ina, Ka nsas Exhibit STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1984 Actual Budget Receipts Over (Under) Expenditures ($ Unencumbered Cash Balance, Janua ry 1 Unencumbered Cash Balance, December 31 $ 37,178.01) 66,718.70 29,540.69 CEMETERY ENDOWMENT (NOTE 2) Receipts Interest from investments Perpetual care deposits Total Receipts $ 3,052.00 2,738.34 5,790.34 Expenditures Receipts Over Expenditures 5,790.34 Unencumbered Cash Balance, January 1 70,750.00 Unencumbered Cash Balance, December 31 $ = 76,540.34 MAUSOLEUM TRUST (NOTE 2) Receipts $ Expenditures Receipts Over Expenditures Unencumbered Cash Balance, January 1 490.00 Unencumbered Cash Balance, December 31 $ 490.00 MAUSOLEUM ENDOWMENT (NOTE 2) Receipts $ Expenditures Receipts Over Expenditures Unencumbered Cash Balance, January 1 17,575.17 Unencumbered Cash Balance, December 31 $ 17,575.17 The accompanying notes are an integral part of this financial statement. B (Contd.) (Over) Under Budget -25- CITY OF SALINA Sa 1 ina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1984 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 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 trans fer. 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; and a combined statement of revenues, expendi- tures, and changes in fund balance and combined comparison with budget for all governmental fund types. These required financial statements are not included in this report. The Ci ty 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-l120a as related to the preparation of financial statements in conformity with gener- ally accepted accounting principles. -26- 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 - The fund is an intragovernmental fund whose expenditures are reimbursable by 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. 3. Long-Term Obligations The City issued $2,770,000 Combined Water and Sewage System Refunding Revenue Bonds, Series of 1984, (the 1984 Bonds), dated June 15, 1984, for the purpose of refunding its Combined Water and Sewage System Refunding Revenue Bonds, Series of 1978 (the 1978 Bonds), in the outstanding amount of $4,388,000 as of June 15, 1984. Cash and investments were transferred to a Refunding Escrow Trust Account at Planters Bank and Trust Company, Salina, Kansas, pursuant to an escrow trust agreement dated as of June 15, 1984, to provide the necessary funds for the refunding of the 1978 Bonds, as follows: Funds transferred to (from) Refunding Escrow Trust Account Bond Fund for Combined Water and Sewage System Refunding Revenue Bonds, Series of 1978 Reserve Account for Combined Water and Sewage System Refunding Revenue Bonds, Series of 1978 Reserve Account for Combined Water and Sewage System Refunding Revenue Bonds, Series of 1984 Water and Sewerage Fund Net proceeds of the 1984 Bonds $1,172,553.15 288,328.50 (62,777.73) 2,601,900.00 To ta 1 ~00,003.92 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 1978 Bonds as they become due. -27- The City has outstanding an issue of Combined Water and Sewer System Revenue Bonds, Series of 1961, of which the principal amount of $430,000 remains out- standing at December 31, 1984, and an issue of Combined Water and Sewer System Revenue Bonds, Series of 1977, of which the principal amount of $2,970,000 remains outstanding at December 31, 1984. The City has provided for the payment of all principal and interest on the bonds by depositing United States government obligations to an escrow account at Planters Bank and Trust Company, Salina, Kansas, pursuant to an escrow trust agreement dated May 1, 1978.. Neither the assets deposited with the escrow agent for retirement of the 1961, 1977, and 1978 bonds nor the outstanding 1961, 1977, and 1978 obligations, are reflected in the accompanying financial statements. The City has established certain reserve accounts pursuant to the 1984 bond ordinance 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 Depart- ment are pledged to secure payment of the bonds; however, the pledge is sub- ordinate to a similar pledge to secure payment of the 1961, 1977, and 1978 bonds. The amounts required to be maintained in the reserve accounts established by the bond ordinance authorizing issuance of the Water and Sewage System Refunding Revenue Bonds, Series of 1984, have been provided and the net operating income of the water and sewerage system appears sufficient to meet the requirements of the ordinance. 4. 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 City's rental fees from such events are transferred from the fund to the Bicentennial Center Fund. 5. Water and Sewerage Fund Expenditures of the Water and Sewerage Fund for the transfer to the Refunding Escrow Trust Account and payment of bond issuance costs in the total amount of $2,770,000 were funded by the issuance of the Combined Water and Sewage System Refunding Revenue Bonds, Series of 1984. Accordingly, expenditures of the Water and Sewerage Department are not in violation of the Kansas budget law (K.S.A. 79-2935) for the year 1984. 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, 1984 follows: Cash balance (deficit) resulting from Capital projects completed Capital projects in process Special assessments projects Reserves for future capital projects $635,220,l~2 22,814.76 097,935.18) 180, 705 .i~5 Total $ 40,805.,~ -28- The deficit resulting from special assessments projects will be funded by the issuance of a temporary note in 1985. 7. Compliance with Kansas Statutes A summary of statutory violations related to 1984 follows. The market value of securities pledged by First National Bank and Trust Company to secure the City's cash deposits in the bank were insufficient in amount to meet the statutory requirement of K.S.A. 9-1402 on December 31, 1984. The face value of the securities pledged by the bank, however, ~s $1,528,000" which exceeded the security required. a. b. Securities pledged by Planters Bank and Trust Company to secure the City's cash deposits in the bank appeared to be insufficient in amount to meet the statutory requirement of K.S.A. 9-1402 on March 21 and April 4, 1984. Encumbrances of the Central Garage exceed the cash balance of the fund by $11,566.75 as of December 31,1984, which appears to be in violation of the Kansas cash basis law (K.S.A. 10-1113). c. 8. Fund Trans fers Following is a schedule of transfers between funds for the year 1984. From Special Parks and Recreation Special Gasoline Tax General Fund - Street Federal Revenue Sharing Fund General Fund - Contingencies General Fund - Contingencies General Fund - Contingencies General Fund - Contingencies Sanitation Solid Waste Disposal Water and Sewerage - Administrative and general Water and Sewerage- Bond ordinance requirements Water and Sewerage Solid Waste Disposal - Contractual Services Golf Course - Contractual Services Sanitation - Contractual Services Water and Sewerage - Admini- strative and general Solid Waste Disposal To Amount General Fund General Fund Street Machinery BiCentennial Center Data Processing - Fees Business Improvement District Employee Benefit Fund Central Garage Bond and Interest Bond and Interest $ 50,000.00 150,000.00 42,000.00 265,000.00 85,000.00 7,000.00 40,000.00 7,440.00 132,800.00 88,900.00 Bond and Interest 12,000.00 Bond Fund for Combined Water and Sewer System Refunding Revenue Bonds, Series of 1978 Sanitation - Service Fees 168,133.31 680,000.00 Special Liability Fund Special Liability Fund Spec ia 1 Liabil ity Fund Special Liability Fund Construction Fund 400.00 600.00 800.00 5,100.00 10,000.00 -29- From Bicentennial Center Events Fund Bond Fund for Combined Water and Sewage System Refunding Revenue Bonds, Series of 1978 Reserve Account for Combined Water and Sewage System Refunding Revenue Bonds, Series of 1978 Water and Sewerage - Bond Ordinance requirements 9. Subsequent Event To Amount Bicentennial Center - Rent $ 55,009.39 Principal and Interest Account for Combined Water and Sewage System Refunding Revenue Bonds, Series of 1984 179,047.68 Reserve Account for Com- bined Water and Sewage System Refunding Revenue Bonds, Series of 1984 450,734.07 Principal and Interest Account for Combined Water and Sewage System Refunding Revenue Bonds, Series of 1984 352,350.00 The City issued $8,115,000.00 General Obligation Refunding Bonds, Series 1985, for the purpose of providing funds, together with other funds, to refund $9,430,000.00 principal amount of outstanding bonds of the City in October, 1985. -30- SUPPLEMENTAL INFORMATION Purpose General Obligation Bonds Flood control Library City-County building Municipal golf course Municipal golf course Park improvements Bicentennial Center Park improvements Park improvements Br idge improvements Solid waste Fire equipment Fire equipment Revenue Bonds Water and sewerage Water and sewerage Temporary Note Totals Payable in Year Ended December 31, 1985 1986 1987 1988 1989 Thereafter Totals CITY OF SALINA Sa 1 ina, Kansas SCHEDULE OF INDEBTEDNESS December 31, 1984 Da te of Issue ll-O 1-63 ll-O 1-65 ll-O 1-66 12-01-67 10-01-68 4-01-74 4-01- 77 12-15-77 6-01-79 6-01-80 3-01-81 3-01-81 4-01-84 Fi na 1 Ma turity Date 11-01-84 11-01-86 11-01-87 12-01-86 10-01-86 10-01-84 10-01-97 3-01-88 12-01-89 12-01-90 9-01-87 9-01-91 4-01-94 Rate 2.875%, 3.0%, 3.125%, and 3.5% 3.25%, 3.3%, and 3.375% 3.75%, 3.8%, and 5.0% 3.75%, 4.0%, and 4.25% 3.75%,4.0%, and 4.25% 4.1% and 4.2% 4.6%,4.7%, 5.0%, 5.2%, and 5.25% 4.375%,4.4%,4.5%, and 4.75% 5.375%, 5.4%, 5.75%, and 6.0% 5.7%, 5.75%, 5.8%, 5.9%, and 6.75% 7.25%, 7.3%, 7.4%, 7.875%, and 8.0% 7.5%, 7.6%, 7.7%, 7.8%, and 8.0% 7.8%, 7.9%, 8.15%, 8.4%, and 8.6% 5-01-78 2-15-07 6.25% 6-15-84 2-15-94 7.25%, 7.75%, 8.25%, 8.5%, 8.75%, 9.0%, 9.2%, 9.4%, 9.6%, and 9.75% 12-13-82 12-20-84 7.0% SCHEDULE OF MATURITIES December 3l, 1984 General Obligation Bonds Principal Interest Revenue Bonds Principal Interest $ 662,000.00 $ 322,617.49 672,000.00 270,409.38 630,000.00 235,027.50 470,000.00 204,785.00 450,000.00 180,892.50 2,930,000.00 665,970.00 $5,814,000.00 $1,879,701.87 $ 490,000.00 $ 260,359.17 310,000.00 190,852.50 210,000.00 170,177.50 230,000.00 151,740.00 250,000.00 131,027.50 1,280,000.00 297,565.00 $2,770,000.00 $1,201,721.67 Schedule 1 Amount of Outstanding Year Ended December 31, 1984 Outstanding Original Debt Debt Debt Debt Issue January 1, 1984 Issued Retired December 31, 1984 $ 260,000.00 $ 13,000.00 $ $ 13,000.00 (, ~' 675,000.00 90,000.00 30,000.00 60,000.00 1,100,000.00 220,000.00 55,000.00 165,000.00 75,000.00 18,000.00 6,000.00 12,000.00 75,000.00 18,000.00 6,000.00 12,000.00 100,000.00 10,000.00 10,000.00 6,500,000.00 4,550,000.00 325,000.00 4,225,000.00 250,000.00 125,000.00 25,000.00 100,000.00 250,000.00 150,000.00 25,000.00 125,000.00 250,000.00 175,000.00 25,000.00 150,000.00 900,000.00 520,000.00 190,000.00 330,000.00 280,000.00 240,000.00 30,000.00 210,000.00 425,000.00 425,000.00 425,000.00 11,140,000.00 6,129,000.00 425,000.00 740,000.00 5,814,000.00 4,394,000.00 4,389,000.00 4,389,000.00 2,770,000.00 2,770,000.00 2,770,000.00 7,164,000.00 4,389,000.00 2,770,000.00 4,389,000.00 2,770,000.00 468,280.00 468,280.00 468,280.00 $18,772,280.00 $10,986,280.00 $3,195.000.00 $5,597,280.00 ~ 8,584,000.00 -31- CITY OF SALINA Sa 1 ina, Kansas SCHEDULE OF INDEBTEDNESS December 31, 1984 Da te of Purpose Issue Special As ses sment Bo nds 11-01-63 Special Assessment Bonds 11-01-65 Special Assessment Bonds 11-01-67 Special Assessment Bonds 11-0l-68 Special As sessment Bo nds 4-01-70 Special Assessment Bonds 1-01-74 Special Assessment Bonds 9-01-75 Special Assessment Bonds 12-01-77 Special As sessment Bonds 6-01-78 Special Assessment Bonds 6-01-79 Special Assessment Bonds 6-01-80 Special As ses sment Bonds 3-01-81 Special Assessment Bonds 5-01-83 Special As s es sment Bonds 12-01-84 Totals Rate 3 1/8% 3 1/4% 3.7% to 4.25% 3.9% to 4.5% 5 1/2% to 6% 4.10% to 4.75% 4 1/4% 4.4% to 4.7% 4.7% to 5% 6.0% to 5.4% 5.80%, 5.90%, 6.75%, 5.70%, 5.75% 7.5% to 8.0% 6.5% to 7.5% 8.25%, 8.0%, 9.0%, 9.15% SCHEDULE OF MATURITIES December 31, 1984 Total City Share $ 677,000.00 $ 99,843.72 680,000.00 127,777.43 702,000.00 146,477.90 606,000.00 117,624.80 526,000.00 114,622.55 1,139,000.00 435,949.31 $4,330,000.00 $1,042,295.71 Payable in Year Ended December 31, 1985 1986 1987 1988 1989 Thereafter Totals Special Assessment Bond Principal Property Owner's Share $ 577,156.28 552,222.57 555,522.10 488,375.20 411,377 .45 703,050.69 $3,287,704.29 Schedule 1 (Contd.) Amount of Outstanding Year Ended December 31, 1984 Outstanding Original Debt Debt Debt Debt Issue January 1, 1984 Issued Re tired December 31, 1984 $ 986,218.15 $ 47,000.00 $ $ 47,000.00 $ 265,000.00 30,000.00 10,000.00 20,000.00 155,000.00 25,000.00 5,000.00 20,000.00 58,267.56 16,000.00 3,000.00 13,000.00 79,481.71 28,000.00 4,000.00 24,000.00 250,736.00 25,000.00 25,000.00 428,000.00 90,000.00 45,000.00 45,000.00 888,000.00 380,000.00 95,000.00 285,000.00 755,000.00 375,000.00 75,000.00 300,000.00 1,286,000.00 780,000.00 130,000.00 650,000.00 1,450,000.00 1,015,000.00 145,000.00 870,000.00 836,000.00 680,000.00 85,000.00 595,000.00 820,000.00 820,000.00 80,000.00 740,000.00 768,000.00 768,000.00 768,000.00 $ 9,025,703.42 $4, 311 ,000.00 $768,000.00 $749,000.00 $4,330,000.00 Special Assessment Bond Interest Property Owner's Total City Share Share $ 209,350.27 $ 25,451.62 $183,898.65 302,966.26 121,877 .40 181,088.86 197,295.00 63,160.75 134,134.25 155,160.00 53,381.53 101,778.47 117,182.50 44,926.99 72,255.51 221,511.25 122,190.70 99,320.55 $1,203,465.28 $430,988.99 $772,476.29 -32- CITY OF SALINA Sa 1 ina, Kansas COMPOSITION OF ENDING CASH BALANCES December 31, 1984 Cash in Checking Cash in Savings Cash in Depositories Planters Bank and Trust Company Sa 1 ina, Kansas Na t iona 1 Bank of America, Salinat Ka ns as First National Bank and Trust Company, Sa 1 ina t Kansas First Bank and Trus t Co., Sa 1 ina, Kansas Security Savings and Loan As soc ia t ion, Sa 1 ina, Kansas $1,080,261.88(1) $ 408.59 16,153.51(2) 540,867.98 879.22 1,674.78 30,000.00 Total Cash in Depositories $1,097,703.20 $572,542.76 Petty Cash Water and Sewerage Department Bicentennial Center Total Petty Cash Total (1) (2) Includes Federal funds balance of $975,000.00 Includes Federal funds balance of $60,000.00 Certificates of Deposit $2,503,000.00 2,749,000.00 1,603,000.00 1,100,000.00 $7,955,000.0(~ Schedule 2 Total $3,583,261. 88 2,749,408.59 2,160,021.49 1,102,554.00 30,000.00 9,625,245.96 2,500.00 970.00 3,470.00 $9,628,715.96 -33- CITY OF SALINA Sa 1 ina, Kansas Schedule 3 COHPARISON OF GROSS CASH BALANCES WITH DEPOSITORY SECURITY December 31, 1984 Gross Cash Balances Cash in checking Cash in savings Certificates of deposit Federa 1 funds Totals Less FDIC or FSLIC coverage Balances Securable by Collateral Security required ( 7 0% ) Security provided by depositories Amount Undersecured by Statute Planters First National Bank and National Bank Bank and Trust Company of America Trust Company Security Savings and Loan Association Fi rs t Ba nk and Trust Co. $ 18,886.09 $ 5,571.24 $ 13,749.99 $ 9,392.29 $ 540,867.98 30,000.00 2,503,000.00 2,749,000.00 1,603,000.00 1,100,000.00 975,000.00 60,000.00 3,496,886.09 2,754,571. 24 2,217,617.97 1,109,392.29 30,000.00 118,886.09 105,571.24 113,749.99 109,392.29 30,000.00 $3,378,000.00 $2,649,000.00 $2,103,867.98 $1,000,000.00 $ $2,364,600.00 $1,854,300.00 $1,472,707.59 $ 700,000.00 $ 3,180,091.00 2,823,594.32 1,405,420.00 1,053,437.00 $ $ 67,287.59 L,." $ -34- CITY OF SALINA Sa 1 ina, Kansas Schedule 4 COMPARISON OF SPECIAL ASSESSMENTS PROJECTS EXPENDITURES TO l~THORIZATIONS December 31, 1984 Project Name Street Improvements Street Improvement - Mayfair Street Improvements and Water Line and Sanitary Sewer Improvements Project Cumula t ive Authorization Expenditures $299,514.93 $263,966.74 222,066.39 197,542.34 522,910.52 398,625.57 -35- CITY OF SALINA Sa 1 ina, Kansas Schedule 5 SCHEDULE OF ACTIVE FEDERAL AWARDS Year Ended December 31, 1984 Program Title Project Number Amount of Award Federal Revenue Sharing 15th Entitlement Period Account No. 17-2-085-005 $395,106.00 Fair Housing Assistance Program HA-12502 22,000.00 Community Development Block Grant U.S. Department of Housing and Urban Development B-82-DH-20-0091 669,300.00(1) (1) For the period November 22, 1982 (date of grant approval) to December 31, 1984. -36- AUDITORS' FINDINGS CITY OF SALINA Sa 1 ina, Kansas SCHEDULE OF AUDITORS' FINDINGS Year Ended December 31, 1984 Federal Revenue Sharing Findings Compliance Requirement - The Government is required to provide certain finan- cial data to the Bureau of Census. These data are to be verified by the auditor. Information reported on Bureau of Census forms did not agree with the City's annual financial statements. Material differences for the City's fiscal year ended December 31, 1983, are shown below. Form F-21A (1984) Part I - Revenues Line 7.e. - Administrative and Misc. Service Fees - As reported Deduct swimming pool admissions also in Line 2.e. $179,760 included 24,628 As Adjus ted $155,132 Part IIA Direct Expenditures by Purpose and Type Current Operation Direct Expenditures Includ ing Salaries & Wages Capital Out lay Purchase of La nd, Equip- Construction ment, Etc. $165,000 $14,942 -- 55,067 $165,000 $70,009 Line 20 - Parks and other recreation, as reported Add expenditures for Bi- centennial Center and other activities $ 457,727 660,266 As Adjus ted $1,117,993 Line 23.a. - Interest on debt - Water and Sewerage System, as reported Deduct expenditures for bond reserve requirements $ 408,561 130,859 $ 277,702 $ $ As Adjus ted $ $ -See Auditors' Report on Compliance- -37- CITY OF SALINA Sa 1 ina, Kansas SCHEDULE OF AUDITORS' FINDINGS (CONTD.) Year Ended December 31, 1984 Federal Revenue Sharing (Contd.) Current Operation Direct Expenditures Includ ing Sa laries & Wages Capital Outlay Construction Purchase of Land, Equip- ment, Etc. Line 24.a. - Utilities - Water and Sewerage System, as reported Deduct depreciation expense $3,139,012 569,607 $193,830 $ As Adjus ted $2,569,405 $193,830 $ Fair Housing Assistance Program Comments and Findings - None Community Development Block Grant Comments At the request of HUD, audit procedures for the grant were extended to cover the period of the grant from November 22, 1982 (date of grant approval) to December 31, 1984. Revenue generated by the program, namely, collection of principal and interest on loans made under the Housing Rehabilitation activity, appears to be properly returned to the program for use in making additional loans and grants. Findings Compliance Requirement - Grantee financial management systems shall include procedures to minimize the time elapsed between the transfer of funds from the U.S. Treasury and the disbursement of funds by the grantee. Grantee received as part of a drawdown against the grant, $325,500.00 on September 19, 1983, for the Sewer Separation activity. These funds were disbursed as follows: Date Amount 9-30-83 10-28-83 11-29-83 12-16-83 $ 34,532.10 129,907.35 130,086.00 30,974.55 $325,500.00 It appears these funds were requested in advance of the grantee's need for the funds. -See Auditors' Report on Compliance- -38- SEPARATE FINANCIAL STATEMENTS WATER AND SEWERAGE DEPARTMENT CITY OF SALINA Sa 1 ina, Kansas WATER AND SEWERAGE DEPARTMENT FINANCIAL STATEMENTS AND AUDITORS' REPORT December 31, 1984 and 1983 KENNEDY AND COE Certified Public Accountants Sa 1 ina, Kansas MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KENNEDY AND CaE HOME OFFICE: P. O. BOX 1 179 CERTIFIED PUBLIC ACCOUNTANTS OFFICES IN KANSAS SALINA, KANSAS 67401 913.825-1561 NEBRASKA OKLAHOMA To the Mayor and The Board of City Commissioners: We have examined the balance sheets of the Water and Sewerage Department of the City of Salina, Kansas, as of December 31, 1984 and 1983, and the related state- ments of income, contributed capital and retained earnings, and changes in financial position for the years then ended. Our examinations were made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered nec- essary in the circumstances. In our opinion, the financial statements referred to above present fairly the finan- cial position of the Water and Sewerage Department of the City of Salina, Kansas, as of December 31, 1984 and 1983, 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 applied on a consistent basis. Respectfully submitted, Sa 1 i na, Ka ns a s November 8, 1985 (~~ ~ {Îfl-/ ~~ C.P.A. Certified Public Accountant in charge of and actively engaged on this audit. -39- CITY OF SALINA Sa 1 ina, Kansas WATER AND SEWERAGE DEPARTMENT BALANCE SHEETS ASSETS Current Assets Cash and investments Accounts receivable, net of doubtful accounts - 1984, Prepaid supplies Total Current Assets allowance for $41,316; 1983, $30,126 Restricted Assets 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 Less accumulated depreciation Total Property, Plant, and Equipment Other Assets Deferred bond ~ssuance costs, net of amortization Totals December 31, 1984 1983 $ 730,737 262,705 109,983 1,103,425 540,868 525,744 1,267,904 2,334,516 116,263 14,585,306 9,968,717 73,961 303,828 25,048,075 12,133,122 12,914,953 158,680 $16,511,574 The accompanying notes are an integral part of these financial statements. $ 891,098 222,128 112,475 1,225,701 1,277,222 691,994 1,160,452 3,129,668 116,263 14,515,380 9,940,200 58,266 52,794 24,682,903 11 ,584,351 13,098,552 53,545 $17,507,466 Current Liabilities Accounts payable Customers' meter deposits Accrued interest payable Long-term.obligations due within Total Current Liabilities LIABILITIES one year (Note 2) Long-Term Obligations Revenue bonds due after one year (Note 2) 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 11,049,934 9,689,573 Capital and 13,384,450 12,819,241 $16,511,574 $17,507,466 Totals Exhibit A December 31, 1984 1983 $ $ 166,906 61,090 129,128 490,000 847,124 118,381 76,670 104,174 1,000 300,225 2,280,000 4,388,000 540,868 525,744 1,267,904 2,334,516 1,277,222 691,994 1,160,452 3,129,668 -40- CITY OF SALINA Sa 1 ina, Kansas WATER AND SEWERAGE DEPARTMENT Exhibit B STATEMENTS OF INCOME Operating Revenues Wa ter 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 Wa ter 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 Amortization of deferred bond Loss on retirement of assets Total Other Expenses ~ssuance costs Net Income before Extraordinary Item Extraordinary Item Gain on advance refunding of revenue bonds (Note 2) Net Income Year Ended December 31, 1984 1983 $2,851,556 $2,870,708 675,895 647,678 21,065 11 , 807 27 ,441 6,733 12,079 10,988 6,185 3,593,678 3,548,457 84,774 73,318 725,203 716,789 206,749 166,219 343,330 252,297 297,587 274,785 586,998 544,722 586,974 520,712 609,964 572,091 3,441,579 3,120,933 152,099 427,524 222,304 236,567 46,932 269,236 236,567 256,326 277,702 9,420 2,231 40,829 3,429 306,575 283,362 114,760 380,729 426,987 $ 541,747 $ 380,729 The accompanying notes are an integral part of these financial statements. -41- CITY OF SALINA Sa 1 i na, Ka ns a s Exhibit C WATER AND SEWERAGE DEPARTMENT STATEMENTS OF CONTRIBUTED CAPITAL AND RETAINED EARNINGS Additions Net income for the year (Exhibit B) Contributions of property, plant and Transfers from System sinking fund reserve Plant reserve fund Total Additions equipment Year Ended December 31, 1984 1983 $ 9,689,573 $ 9,711,224 541,747 380,729 23,462 260,644 1,312,389 278,702 225,551 2,103,149 920,075 Balance, Beginning of Year Deductions Transfers to restricted System sinking fund Plant reserve fund System reserve fund Total Deductions reserves 576,035 59,301 107,452 742,788 485,791 73,668 382,267 941,726 Balance, End of Year $11,049,934 $ 9,689,573 The accompanying notes are an integral part of these financial statements. -42- CITY OF SALINA Sa 1 ina, Kansas WATER AND SEWERAGE DEPARTMENT Exhibit D STATEMENTS OF CHANGES IN FINANCIAL POSITION Sources of Working Capital From Operations Net income before extraordinary item (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 before extraordinary item Extraordinary item - Gain on advance refunding of revenue bonds Working capital provided by operations Issuance of revenue bonds Contributions of property, plant and equipment Total Sources of Working Capital Applications of Working Capital Refunding of revenue bonds Outstanding revenue bonds refunded Funds transferred from System sinking fund Plant reserve fund Refunding of revenue bonds - Net Decrease in long-term obligations Additions to property, plant, and equipment Increase in deferred bond issuance costs - Net Increase in restricted assets Total Applications of Working Capital Increase (Decrease) in Working Capital Year Ended December 31, 1984 1983 $ 114,760 $ 380,729 609,964 572,091 9,420 2,231 40,829 621 774,973 955,672 426,987 1,201,960 955,672 2,770,000 23,462 260,644 3,995,422 1,216,316 4,388,000 (1,172,553) (225,551) 2,989,896 490,000 467,194 114,555 602,952 4,664,597 1,000 373,104 663,024 1,037,128 ($ 669,175) $ 179,188 -43- CITY OF SALINA Sa 1 i na, Ka ns a s WATER AND SEWERAGE DEPARTMENT Exhibit D (Contd.) STATEMENTS OF CHANGES IN FINANCIAL POSITION Changes in Components of Working Capital Increase (Decrease) in Current Assets Cash and investments Accounts receivable Prepa id suppl ies Total Increase (Decrease) in Current Assets Increase (Decrease) in Current Liabilities Accoun ts payable Customers' meter deposits Accrued expenses Long-term obligations due within one year Total Increase (Decrease) in Current Liabilities Increase (Decrease) in Working Capital Year Ended December 31, 1984 1983 ($ 160,361) $ 200,360 40,577 (3,052) (2,492) 01,383) 022,276) 185,925 $ 48,525 $ 9,862 05,580) (3,125) 24,954 489,000 546,899 6,737 ($ 669,175) $ 179,188 The accompanying notes are an integral part of these financial statements. -44- 1. 2. CITY OF SALINA Sa 1 ina, Ka nsas WATER AND SEWERAGE DEPARTMENT NOTES TO FINANCIAL STATEMENTS December 31, 1984 and 1983 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. Long-Term Obligations The City issued $2,770,000 Combined Water and Sewage System Refunding Revenue Bonds, Series of 1984 (the 1984 Bonds), dated June 15, 1984, for the purpose of refunding its Combined Water and Sewage System Refunding Revenue Bonds, Series of 1978 (the 1978 Bonds), in the outstanding amount of $4,388,000 as of June 15, 1984. Cash and investments were transferred to a Refunding Escrow Trust Account at Planters Bank and Trust Company, Salina, Kansas, pursuant to an escrow trust agreement dated as of June 15, 1984, to provide the necessary funds for the refunding of the 1978 Bonds, as follows: Funds transferred to Refunding Escrow Trust Account from Restricted Assets System sinking fund Plant reserve fund $1,172,553 225,551 1,398,104 2,601,900 Net proceeds of the 1984 bonds Total $4,000,004 -45- 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 1978 Bonds as they become due. The transaction resulted in a gain on advance refunding in the amount of $426,987. The 1984 Bonds mature serially between February 15, 1985, and February 15, 1994, and bear interest at rates varying from 7 1/4 to 9 3/4 percent per annum. Maturities of the 1984 bonds in subsequent years are as follows: Year Amount 1985 1986 1987 1988 1989 Thereafter $ 490,000 310,000 210,000 230,000 250,000 1,280,000 Total Bonds Outstanding, December 31, 1984 $2,770,000 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 Planters Bank and Trust Company, 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. Neither the assets deposited with the escrow agent nor the outstanding 1961, 1977, and 1978 obligatons totaling $7,788,000 are reflected in the accom- paying financial statements as of December 31, 1984. The City has established certain reserve accounts pursuant to the 1984 bond ordinance 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 1961, 1977, and 1978 bonds. The amounts required to be maintained in the reserve accounts established by the 1984 bond ordinance have been provided and the net operating income of the system for 1984 is sufficient to meet the requirements of the ordinance. 3. Retirement Plan The City participates in the State of Kansas Public Employees' R.etirement System which is a defined contribution plan covering substantially all employees. The Department's portion of pension costs, which are funded as accrued, was $41,987 and $39,595, for the years 1984 and 1983, respectively. -46-