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Audit - 1982 CITY OF SALINA Salina, Kansas REPORT ON EXAMINATION December 31, 1982 KENNEDY AND COE Certified Public Accountants Salina, Kansas Exhibit A Exhibit B Exhibit C Exhibit D Exhibit E Exhibit F Exhibit A Exhibit B Exhibit C Exhibit D CITY OF SALINA Salina, Kansas TABLE OF CONTENTS ACCOUNTANTS' OPINION SUMMARY STATEHENT OF RECEIPTS, EXPENDITURES, AND BALANCES BY FUNDS AND COHPARISON OF CASH BALANCES WITH ENClJJII[- BRANCES STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET STATEMENT OF BONDED INDEBTEDNESS COMPOSITION OF ENDING CASH BALANCES COHPARISON OF GROSS CASH BALANCES WITH DEPOSITORY SECURITY COMPARISON OF SPECIAL ASSESSMENTS PROJECTS EXPENDITURES TO AUTHORIZATIONS Notes to Financial Statements SEPARATE FINANCIAL STATEMENTS - WATER AND SEWERAGE DEPARTMENT ACCOUNTANTS' OPINION BALANCE SHEET INCOME STATEMENT STATEMENT OF CONTRIBUTIONS AND RETAINED EARNINGS STATEMENT OF CHANGES IN FINANCIAL POSITION Notes to Financial Statements Page 1 2-3 4-19 20 21 22 23 24-26 27 28 29 30 31 32-33 Table of Contents MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KENNEDY AND COE HOME OFFICE: p, 0, BOX "79 SALINA, KANSAS 67401 9. 3'B25,'561 CERTIFIED PUBLIC ACCOUNTANTS OFFICES IN KANSAS NEBRASKA OKLAHOMA 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, 1982, included herein on pages 2 to 26. Our examination 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, 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 auditing 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. The City of Salina maintains its accounting records and prepares its financial state- ments 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 conform- ity with generally accepted accounting principles. The City of Salina has not recorded its obligations to the Kansas ~lblic Employees Retirement Fund as of December 31, 1982 and 1981, for the fourth quarter expense which, in our opinion, should be recorded as an encumbrance in order to conform with the City's method of accounting. If such obligations were recorded, the unencumbered cash balances of the City would decrease by $211,804.81 at January 1, 1982, and $184,106.64 at December 31, 1982, and expenditures would decrease $27,698.17 for the year 1982. In our opinion, except for the effects of not encumbering the obligations as dis- cussed in the preceding paragraph, the accompanying financial statenlents present fairly the cash and unencumbered cash balances of the City of Salina, Kansas at December 31, 1982, 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. Respectfully submitted, Salina, Kansas June 13, 1983 ~~ C-e- ~,)M Certified Public Accountant in charge of and actively engaged on this audit. C.P.A. -1- CITY OF SALINA Salina, Kansas SUMMARY STATEMENT OF RECEIPTS, EXPENDITURES, AND BALANCES BY FUNDS AND COMPARISON OF CASH BALANCES WITH ENCUMBRANCES Year Ended December 31, 1982 Fund General Fund Special Revenue Funds Emergency Preparedness Street Machinery Special Gasoline Tax Federal Revenue Sharing Special Reserve Tourism and Convention Promotion Employee Benefit Fund Utility Fund Special Parks and Recreation Special Alcohol Programs Special Liability Fund Bicycle Safety Fair Housing Assistance Program 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 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 Depreciation and Emergency Replacement Extension and Bond Retirement Unencumbered Cash Balance January 1, 1982 $ 753,867.53 0,674.01) 112,622.84 40,031.30 107,389.85 42,944.15 83,652.52 256,480.82 119,444.55 19,337.66 23,640.95 61,273.35 (2,452.80) 189,889.95 575,204.40 13,198.18 161,298.65 6,586.59 164,524.56 71,274.96 427,555.76 32,621. 53 879,628.82 537,736.06 460,282.79 218,849.14 Receipts $ 5,334,521.38 88,503.84 969.08 422,090.74 421,568.19 989.12 123,706.58 1,680,293.58 420,915.89 55,776.52 55,776.52 71,041. 35 2,452.80 2,340,542.54 531,515.01 146,575.28 575,558.40 87,470.15 580,141.32 211 , 911. 25 3,718,022.59 1,118,295.04 469,268.91 80,590.43 67,770.61 31,282.81 Exhibit A Unencumbered Cash Balance Cash Balance Encumbrances December 31, 1982 Expenditures December 31, 1982 December 31, 1982 (Exhibit D) $ 5,098,534.13 $ 989,854.78 $102,738.72 $1 ,092 , 593. 50 82,072.21 4,757.62 2,181.30 6,938.92 113, 591. 92 113,591.92 371 , 992.64 90,129.40 6,635.21 96,764.61 435,293.38 93,664.66 46,000.00 139,664.66 43,933.27 43,933.27 115,629.03 91,730.07 11,719.63 103,449.70 1,707,426.55 229,347.85 90,458.30 319,806.15 374,957.63 165,402.81 31,879.84 197,282.65 55,000.00 20,114.18 20,114.18 55,000.00 24,417.47 13,750.00 38,167.47 29,078.00 103,236.70 635. 00 103,871.70 5,773.84 ( 5, 77 3 . 84 ) 26.00 (5,747.84) 2,246,129.80 284,302.69 43,380.25 327,682.94 1,229,963.36 (123,243.95) 896.96 (122,346.99) 140,682.41 19, 091. 05 10,660.83 29,751.88 467,333.95 269,523.10 6,964.63 276,487.73 93,249.17 807.57 850. 16 1,657.73 571,529.20 173,136.68 25,803.26 198,939.94 248,293.10 34,893. 11 1,880.39 36,773.50 3, 563 , 360. 11 582,218.24 108,518.99 690,737.23 1,062,519.14 88,397.43 88,397.43 278,765.00 1,070,132.73 1,070,132.73 618,326.49 528,053.40 250,131. 95 618,326.49 528,053.40 250,131. 95 -2- CITY OF SALINA Salina, Kansas SUMMARY STATEMENT OF RECEIPTS, EXPENDITURES, AND BALANCES BY FUNDS AND COMPARISON OF CASH BALANCES WITH ENCUMBRANCES Year Ended December 31, 1982 Fund Intragovernmental Fu Central Garage Trust and Agency Fun s Citizenship Trust HUD Community Development Cemetery Endowment Mausoleum Trust Mausoleum Endowment State Withholding ax Totals Unencumbered Cash Balance January 1, 1982 $ 18,174.07 13,447.15 107,342.71 54,159.27 490.00 17,575.17 Only) $5,566,398.47 accompanying notes to financial statements which are an integral part hereof. I I I I Receipts I $ I 492,870.84 872 . 33 13,175.16 11,132.90 I 147,021.33 $19,302,622.49 I I I I I I I I I I I I Exhibit A (Contd.) Unencumbered Cash Balance Cash Balance Encumbrances December 31, 1982 Expenditures December 31, 1982 December 31, 1982 (Exhibit D) $ 501,120.83 $ 9,924.08 $ 30,561.33 $ 40,485.41 1,500.00 12,819.48 12,819.48 96,911.92 23,605.95 90. 76 23,696.71 65,292 .17 65,292.17 490.00 490.00 17,575.17 17,575.17 147,021.33 37,547.00 37,547.00 $18.979.136.73 $5.889.884.23 $573.178.56 }6.463.062.79 -3- CITY OF SALINA Salina, Kansas Exhibit B STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES CO}lPARED WITH BUDGET Year Ended December 31, 1982 (Over) Under Actual Budget Budget GENERAL FUND Receipts Current tangible tax $1,624,792.80 $1,645,300.00 $ 20,507.20 Current intangible tax 654,629.79 450,000.00 (204,629.79) Vehicle tax 301,793.38 192,830.00 008,963.38) Delinquent taxes 31,726.33 34,000.00 2,273.67 Bingo gross receipts tax 14,483.29 10,400.00 (4,083.29) City liquor tax 55,776.52 55,000.00 ( 77 6. 52 ) Local ad valorem tax reduction 204,191.20 215,870.00 11 , 678. 80 State shared taxes 144,536.41 153,170.00 8,633.59 Auto dealers tax stamps 4,596.08 7,070.00 2,473.92 Highway maintenance 3,090.00 3,100.00 10.00 Licenses, fees and permits 173,623.82 184,980.00 11,356.18 Municipal court fines 338,280.50 400,000.00 61,719.50 Franchise taxes 830,339.17 720,000.00 010,339.17) Rents and concessions 7,981.47 6,460.00 0,521. 47) Interest from investments 492,569.62 200,000.00 (292,569.62) Services and sales 151,873.99 350,760.00 198,886.01 Fire protection - Outside city limits 105,787.25 60,000.00 (45,787.25) Reimbursement of expenditures 7,961.45 18,000.00 10,038.55 Transfers from other funds 186,488.31 185,000.00 0,488.31) Total Receipts 5,334,521.38 4,891,940.00 (442,581.38) Expenditures Department City Commission 271,907.35 256,170.00 (15,737.35) City Manager 73,103.67 69,860.00 (3, 243. 67) City Clerk 193,891. 94 194,750.00 858. 06 City Attorney 44,719.34 46,460.00 1,740.66 Municipal Court 43,071. 93 40,540.00 (2,531.93) City Building 105,515.04 114, 77 o. 00 9,254.96 Engineering 126,411.56 133, 880. 00 7,468.44 Fire 1,301,847.93 1,296,160.00 (5,687.93) Inspection 75,317.41 93 , 91 o. 00 18,592.59 Park 329,116.24 327,460.00 0,656.24 ) Police 1,466,662.59 1,490,200.00 23,537.41 Street 507,651. 29 508,760.00 1,108.71 Human Relations 39,399.93 41,430.00 2,030.07 Traffic 71,984.32 70,450.00 0,534.32) Swimming Pools 34,332.67 39,970.00 5,637.33 Administration and Planning 91,137.13 103,450.00 12,312.87 Insurance and Contingencies 55,681.53 71,200.00 15,518.47 Arts Commission 61,049.84 61,050.00 .16 Cemetery 52,928.11 51,380.00 (1,548.11) -4- 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, 1982 (Over) Under Actual Budget Budget GENERAL FUND (CONTD.) Expenditures (Contd.) Department (Contd.) General Improvement $ 35,341.47 $ 40,080.00 $ 4,738.53 Floodworks 53,649.32 53,000.00 (649.32) Neighborhood Centers 63,813.52 66,800.00 2,986.48 Total Expenditures 5,098,534.13 5.171,730.00 73,195.87 Receipts Over (Under) Expenditures 235,987.25 (279,790.00) (515,777.25) Unencumbered Cash Balance, January 1 753,867.53 279,790.00 (474,077.53) Unencumbered Cash Balance, December 31 $ 989,854.78 $ ($989,854.78) EMERGENCY PREPAREDNESS (Note 2) Receipts Other apportionments and grants Matching funds from the State of Kansas Reimbursement of expenditures Total Receipts $ 54,950.00 27.975.24 5,578.60 88,503.84 Expenditures Personal services Contractual services Materials and supplies Sundry expenditures Capital outlay Total Expenditures 48.334.56 27,745.78 3,975.87 60.00 1.956.00 82,072.21 Receipts Over Expenditures 6,431.63 Unencumbered Cash Balance (Deficit). January 1 0,674.01) Unencumbered Cash Balance, December 31 $ 4,757.62 -5- 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, 1982 STREET MACHINERY (NOTE 2) Receipts Interest from investments Budget (Over) Under Budget Actual $ 969.08 Expenditures Revenues Over Expenditures 969.08 Unencumbered Cash Balance, January 1 112,622.84 Unencumbered Cash Balance, December 31 $ 113,591.92 SPECIAL GASOLINE TAX Receipts Special gasoline tax $ 422,090.74 $ 375,000.00 ($ 47,090.74) Expenditures Personal services 33,266.38 35,720.00 2,453.62 Contractual services 142,517.61 117,520.00 (24,997.61) Materials and supplies 66,208.65 91,760.00 25,551. 35 Transfers to General Fund 130,000.00 130,000.00 Total Expenditures 371,992.64 375,000.00 3,007.36 Receipts Over Expenditures 50,098.10 (50,098.10) Unencumbered Cash Balance, January 1 40,031.30 1,682.00 (38,349.30) Unencumbered Cash Balance, December 31 $ 90,129.40 $ 1,682.00 ($ 88,447.40) FEDERAL REVENUE SHARING Receipts Grants from Federal government $ 406,251. 00 $ 450,420.00 $ 44,169.00 Interest from investments 15,317.19 05,317.19) Total Receipts 421,568.19 450,420.00 28,851.81 Expenditures Contractual service 5,000.00 30,520.00 25,520.00 Transfers to Bicentennial Center 225,000.00 225,000.00 Capital outlay 205,293.38 194,900.00 00,393.38) Total Expenditures 435,293.38 450,420.00 15,126.62 -6- 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, 1982 (Over) Under Actual Budget Budget FEDERAL REVENUE SHARING (CONTD.) Receipts Over (Under) Expenditures ($ 13,725.19) $ $ 13,725.19 Unencumbered Cash Balance, January 1 107.389.85 007,389.85) Unencumbered Cash Balance, December 31 $ 93,664.66 $ ($ 93,664.66) SPECIAL RESERVE (NOTE 2) Receipts Interest from investments $ 989.12 Expenditures Receipts Over Expenditures 989.12 Unencumbered Cash Balance, January 1 42.944.15 Unencumbered Cash Balance, December 31 $ 43,933.27 TOURISM AND CONVENTION PROMOTION (NOTE 2) Receipts Transient guest tax $ 123,706.58 Expenditures Professional services 115,629.03 Receipts Over Expenditures 8,077 .55 Unencumbered Cash Balance, January 1 83,652.52 Unencumbered Cash Balance, December 31 $ 91,730.07 -7- 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, 1982 (Over) Under Actual Budget Budget EMPLOYEE BENEFIT FUND Receipts Current tangible taxes $ 962,339.77 $ 974, 990. 00 $ 12,650.23 Delinquent taxes 17,761. 11 7,000.00 00,761.11) Auto dealers tax stamps 2,254.34 2,930.00 675.66 Interest on investments 18,252.92 18,000.00 (252.92) Employees contributions to Kansas Firemen's and Policemen's Retire- ment Fund 133,985. 59 150,000.00 16,014.41 Social security contributions 236,179.22 220,000.00 06,179.22) Employees retirement contributions 124,300.91 126,000.00 1,699.09 Unemployment insurance contributions 1,849.10 400.00 (1,449.10) Reimbursement of expenditures 4,484.69 1,000.00 o , 484 . 69) Vehicle tax 178,885.93 126,850.00 (52,035.93) Total Receipts 1,680,293.58 1,627,170.00 (53,123.58) Expenditures Public officials and employee liability insurance 5,398.40 7,200.00 1,801.60 Social security 355,009.74 383,800.00 28,790.26 Police and fire retirement 697,206.77 759,800.00 62,593.23 Employees retirement 249,929.61 250,000.00 70.39 Group insurance 283,351.65 240,000.00 (43,351.65) Unemployment insurance 47,639.38 28,000.00 09,639.38) Workman's compensation 68,891.00 68,000.00 (891.00) Total Expenditures 1,707,426.55 1,736,800.00 29,373.45 Receipts over (Under) Expenditures (27,132.97) 009,630.00) (82,497.03) Unencumbered Cash Balance, January 1 256,480.82 109,630.00 046,850.82) Unencumbered Cash Balance, December 31 $ 229,347.85 $ ($229.347.85) UTILITY FUND Receipts Current tangible taxes $ 346,419.09 $ 350,020.00 $ 3,600.91 Delinquent taxes 6,334.60 3,000.00 0,334.60) Auto dealers tax stamps 910.12 1,550.00 639.88 Interest on investments 3,480.02 3,000.00 ( 4 80. 02 ) Vehicle taxes 63,772.06 41,720.00 (22,052.06) Total Receipts 420,915.89 399,290.00 (21,625.89) -8- 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, 1982 (Over) Under Actual Budget Budget UTILITY FUND (CONTD.) Expenditures Gas service $ 35,562.47 $ 40,000.00 $ 4 , 437 . 53 Light and power service 73,265.54 82,000.00 8,734.46 \.;rater service 29,271. 83 27,000.00 ( 2 , 271. 83 ) Traffic control signals 20,280.00 26,000.00 5,720.00 Street lighting 216,577.79 265,000.00 48,422.21 Total Expenditures 374,957.63 440,000.00 65,042.37 Receipts Over (Under) Expenditures 45,958.26 (40,710.00) (86,668.26) Unencumbered Cash Balance, January 1 119,444.55 40,710.00 (78,734.55) Unencumbered Cash Balance, December 31 $ 165,402.81 $ ($165,402.81) SPECIAL PARKS AND RECREATION Receipts City liquor tax $ 55,776.52 $ 55,000.00 ($ 77 6 . 52 ) Expenditures Transfer to General Fund 55,000.00 55,000.00 Receipts Over Expenditures 77 6 . 52 ( 77 6 . 52 ) Unencumbered Cash Balance, January 1 19,337.66 (19,337.66) Unencumbered Cash Balance, December 31 $ 20,114.18 $ ($ 20,114.18) SPECIAL ALCOHOL PROGRAMS Receipts City liquor tax $ 55,776.52 $ 55,000.00 ($ 77 6 . 52 ) Expenditures Contractual services 55,000.00 59,300.00 4,300.00 Receipts Over (Under) Expenditures 77 6 . 52 (4,300.00) (5,076.52) Unencumbered Cash Balance, January 1 23,640.95 4,300.00 (19,340.95) Unencumbered Cash Balance, December 31 $ 24,417.47 $ ($ 24,417.47) -9- 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, 1982 (Over) Under Actual Budget Budget SPECIAL LIABILITY FUND Receipts Current tangible taxes $ 54,447.29 $ 54,270.00 ($ 177.29) Delinquent tangible taxes 1, 133.38 200.00 (933.38) Auto dealers tax stamps 148.92 230.00 81 . 08 Transfers from other funds 5, 82 9. 00 12,000.00 6 , 1 7 1. 00 Vehicle taxes 9,482.76 8,220.0C~ 0,262.76) Total Receipts 71,041.35 74,920.0C~ 3,878.65 Expenditures Liability insurance 29,078.00 55,000.00 25,922.00 Professional services 20,000.00 20,000.00 Total Expenditures 29,078.00 75,000.00 45,922.00 Receipts Over (Under) Expenditures 41,963.35 (80.00) (42,043.35 ) Unencumbered Cash Balance, January 1 61,273.35 30,080.00 01,193.35) Unencumbered Cash Balance, December 31 $ 103,236.70 $ 30,000.00 ($ 73,236.70) BICYCLE SAFETY (NOTE 2) Receipts Reimbursement of expenditures $ 2,452.80 Expenditures Receipts Over Expenditures 2,452.80 Unencumbered Cash Balance (Deficit), January 1 (2,452.80) Unencumbered Cash Balance, December 31 $ FAIR HOUSING ASSISTANCE PROGRAM (NOTE 2) Receipts $ Expenditures Personal services Contractual services Materials and supplies Total Expenditures 1 , 868. 52 3,840.40 64.92 5,773.84 -10- 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, 1982 FAIR HOUSING ASSISTANCE PROGRAM (NOTE 2) (CONTD.) Receipts Over (Under) Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance (Deficit), December 31 (Note 5) BOND AND INTEREST Receipts Current tangible taxes Delinquent tangible taxes Current special assessment taxes Delinquent special assessment taxes Auto dealers tax stamps 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 paving 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 (Over) Under Budget Budget ($ 5, 77 3 . 84 ) ($ 5, 77 3 . 84 ) $1,015,246.89 $1,028,080.00 $ 1 2 , 833. 11 19,473.99 18,000.00 0,473.99) 727,806.32 670,000.00 (57,806.32) 26, 087.34 30,000.00 3,912.66 2,747.97 3,900.00 1,152.03 29,452.18 30,000.00 547 . 82 2,000.00 2,000.00 21,233.52 4,000.00 07,233. 52) 309,737.50 315,320.00 5,582.50 188,756.83 136, 840. O(~ (51,916.83) 2,340,542.54 2,238,140.0(~ 002,402.54) 730,000.00 730,000.00 401,748.69 401,800.00 51. 31 160,803.60 162,600.00 1,796.40 644,196.40 642,500.00 0,696.40) 43,215.81 43,500.00 284.19 265,539.05 265,300.00 (239.05) 626.25 1,000.00 373.75 40,000.00 40,000.00 2,246,129.80 2,286,700.00 40,570.20 94,412.74 (48,560.00) 042,972.74 ) 189,889.95 48,560.00 (141,329.95) $ 284,302.69 $ ($284,302.69) -11- 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, 1982 Actual Budget CONSTRUCTION FUND (NOTE 2) Receipts Special assessments and charges $ 63,235.01 Issuance of temporary note (Note 6) 468,280.00 Total Receipts 531,515.01 Expenditures 1,229,963.36 Receipts Over (Under) Expenditures (698,448.35) Unencumbered Cash Balance, January 1 575,204.40 Unencumbered Cash Balance, December 31 (Note 7) ($ 123.243.95) (Over) Under Budget GOLF COURSE Receipts Membership and green fees $ 126,798.00 $ 112,000.00 ($ 14,798.00) Cart rental 1,144.20 1,000.00 044.20) Cart storage 4,751.25 3,200.00 0,551. 25) Cart user fees 10,822.00 10,000.00 (822.00) Oil well lease 3,059.83 7,000.00 3,940.17 Total Receipts 146,575.28 133,200.00 03,375.28) Expenditures Personal services 61,258.88 60,840.00 (418.88) Contractual services 25,655.09 27,590.00 1,934.91 Materials and supplies 26,122.02 25,500.00 (622.02) Transfer to other funds 15,060.00 25,060.00 10,000.00 Capital outlay 12,586.42 4,350.00 (8,236.42) Total Expenditures 140,682.41 143,340.00 2,657.59 Receipts Over (Under) Expenditures 5,892.87 00,140.00) 06,032.87) Unencumbered Cash Balance, January 1 13,198.18 20,421.00 7,222.82 Unencumbered Cash Balance, December 31 $ 19.091. 05 $ 10.281. 00 ($ 8.810.05) -12- 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, 1982 Actual SANITATION Receipts Interest from investments Miscellaneous sales and services Service fees Reimbursement of expenditures Total Receipts $ 2,768.80 2,074.40 564,000.00 6,715.20 575,558.40 Expenditures Personal services Contractual services Materials and supplies Transfer to other funds Total Expenditures 248,550.68 137,667.81 81 , 115.46 467,333.95 Receipts Over (Under) Expenditures 108,224.45 Unencumbered Cash Balance, January 1 161,298.65 Unencumbered Cash Balance, December 31 $ 269,523.10 $ PARKING METERS Receipts Parking meter receipts Parking meter permits Reimbursement of expenditures Total Receipts $ 53,834.65 $ 33,545.50 90.00 87,470.15 Expenditures Personal services Contractual services Materials and supplies Transfers to Debt Service Fund Total Expenditures 41,876.36 11,339.80 9,263.01 30,770.00 93,249.17 (5,779.02) Receipts Over (Under) Expenditures Unencumbered Cash Balance, January 1 6,586.59 Unencumbered Cash Balance, December 31 $ 807.57 $ Budget $ 4,500.00 8,500.00 644,100.00 657,100.00 272,770.00 156,390.00 79,050.00 150,000.00 658,210.00 (1,110.00) 81,631. 00 (Over) Under Budget $ 1,731.20 6,425.60 80,100.00 (6,715.20) 81,541.60 24,219.32 18,722.19 (2,065.46) 150,000.00 190,876.05 (109,334.45) (79,667.65) 80,521.00 ($189,002.10) 90,000.00 20,000.00 110,000.00 42,580.00 20,810.00 9,510.00 36,770.00 109,670.00 330.00 4,234.00 4,564.00 $ 36,165.35 (13 , 545. 50 ) (90.00) 22,529.85 703.64 9,470.20 246.99 6,000.00 16,420.83 6,109.02 (2,352.59) $ 3,756.43 -13- CITY OF SALINA Salina, Kansas Exhibit B (Contd.) STATEHENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUMBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1982 Actual BICENTENNIAL CENTER Receipts Rent Concessions Reimbursement of expenditures Transfers from Federal Revenue Sharing Fund Total Receipts $ 143,574.40 208,644.15 2,922.77 225,000.00 580,141.32 Expenditures Personal services Contractual services Materials and supplies Sundry expenditures Capital outlay Total Expenditures 252,126.52 206,260.42 33,791.78 78,954.98 395.50 571 ,529.20 Receipts Over (Under) Expenditures 8,612.12 Unencumbered Cash Balance, January 1 164,524.56 Unencumbered Cash Balance, December 31 $ 173,136.68 SOLID WASTE DISPOSAL Receipts Income from leased land Service fees Reimbursement of expenditures Total Receipts $ 713.00 211 , 1 72 . 00 26.25 211,911.25 Expenditures Personal services Contractual services Materials and supplies Sundry expenditures Transfers to other funds Total Expenditures 62,462.06 26,830.32 51,666.62 10,000.00 97,334.10 248,293.10 Receipts Over (Under) Expenditures (36,381. 85) Unencumbered Cash Balance, January 1 71,274.96 Unencumbered Cash Balance, December 31 $ 34,893.11 $ Budget $ 121,000.00' 238,000.00' 225,000.00 584,000.00 273,470.00 206,320.00 29,600.00 103,600.00 612,990.00 (28,990.00) 97,518.00 $ 68,528.00 $ 19,000.00 219,000.00 238,000.00 61,500.00 24,920.00 57,260.00 10,000.00 106,100.00 259,780.00 (21,780.00) 36,188.00 (Over) Under Budget ($ 22,574.40) 29,355.85 (2,922.77) 3,858.68 21,343.48 59.58 (4,191.78) 24,645.02 (395.50) 41,460.80 (37,602.12) (67,006.56) ($104,608.68) $ 18,287.00 7,828.00 (26.25) 26,088.75 (962.06) (1,910.32) 5,593.38 8,765.90 11 ,486.90 14,601.85 (35,086.96) 14,408.00 ($ 20,485.11) -14- CITY OF SALINA Salina, Kansas Exhi bit B (Contd.) STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN UNENCUHBERED CASH BALANCES COMPARED WITH BUDGET Year Ended December 31, 1982 WATER AND SEWERAGE FUND Receipts Water Sewerage Sanitation fees Tapping and front footage service Service charge - Sanitation department Miscellaneous income Sales tax collections Meter deposits Reserve for Extension and Bond Re- tirement Reserve for Depreciation and Emergency Computer cost reimbursement 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 Capital expenditures Sales tax remitted Meter deposits refunded Other refunds to customers Reserve for Extension and Bond Re- tirement Reserve for Depreciation and Emergency Total Expenditures Receipts Over Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 (Over) Under Actual Budget Budget $2,400,963.91 $2,450,000.00 $ 49,036.09 652,499.76 700,000.00 47,500.24 564,000.00 598,500.00 34,500.00 5,693.77 15,000.00 9,306.23 10,696.29 8,000.00 (2,696.29) 9,251.97 10,000.00 748. 03 18,604.89 40,000.00 21,395.11 36,665.00 30,000.00 (6,665.00) 200,000.00 200,000.00 200,000.00 200,000.00 19,647.00 30,000.00 10,353.00 3,718,022.59 4,281,500.00 563,477 .41 59,832.76 72,550.00 12,717.24 674,476.95 652,350.00 (22,126.95) 144,693.48 161,420.00 16,726.52 223,342.41 215,510.00 (7,832.41 ) 283,168.86 288,060.00 4,891.14 485,854.63 507,730.00 21,875.37 505,094.76 518,450.00 13,355.24 403,546.85 407,300.00 3,753.15 564,000.00 598,500.00 34,500.00 152,198.36 350,000.00 197,801.64 18,604.89 40,000.00 21,395.11 33,320.00 30,000.00 (3,320.00) 15,226.16 (15,226.16) 200,000.00 200,000.00 200,000.00 200,000.00 3,563,360.11 4,241,870.00 678,509.89 154,662.48 39,630.00 (115,032.48) 427,555.76 286,768.00 (140,787.76) $ 582,218.24 $ 326,398.00 ($255,820.24) -15- 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, 1982 Actual Budget (Over) Under Budget BICENTENNIAL CENTER EVENTS FUND (NOTE 4) Receipts Expenditures Transfer of net rental fees to Bicentennial Center Fund Special events expenditures Total Expenditures $1,118,295.04 73,704.46 988,814.68 1,062,519.14 Receipts Over Expenditures 55,775.90 Unencumbered Cash Balance, January 1 32,621. 53 Unencumbered Cash Balance, December 31 $ 88,397.43 BOND FUND FOR COMBINED WATER AND SEWAGE SYSTEM REFUNDING REVENUE BONDS, SERIES OF 1978 (NOTE 2) Receipts Interest from investments Transfers from Water and Sewage Fund Total Receipts $ 65,722.06 403,546.85 469,268.91 Expenditures Bond principal Bond interest Total Expenditures 1,000.00 277 ,765.00 278,765.00 Receipts over Expenditures 190 , 503 . 91 879,628.82 Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 $1,070,132.73 RESERVE ACCOUNT FOR COMBINED WATER AND SEWAGE SYSTEM REFUNDING REVENUE BONDS, SERIES OF 1978 (NOTE 2) Receipts Interest from investments $ 80,590.43 Expenditures Receipts Over Expenditures 80,590.43 Unencumbered Cash Balance, January 1 537,736.06 Unencumbered Cash Balance, December 31 $ 618,326.49 -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, 1982 Actual Budget RESERVE ACCOUNT FOR COMBINED WATER AND SEWAGE SYSTEM DEPRECIATION AND EMERGENCY REPLACEMENT (NOTE 2) Receipts Interest from investments $ 67,770.61 Expenditures Receipts Over Expenditures 67,770.61 Unencumbered Cash Balance, January 1 460,282.79 Unencumbered Cash Balance, December 31 $ 528,053.40 (Over) Under Budget RESERVE ACCOUNT FOR COMBINED WATER AND SEWAGE SYSTEM EXTENSION AND BOND RETIREMENT (NOTE 2) Receipts Interest from investments $ 31,282.81 Expenditures Receipts Over Expenditures 31,282.81 Unencumbered Cash Balance, January 1 218,849.14 Unencumbered Cash Balance, December 31 $ 250,131.95 CENTRAL GARAGE (NOTE 2) Receipts Reimbursement of expenditures $ 492,870.84 Expenditures Personal services Contractual services Materials and supplies Sundry expenditures Capital outlay Total Expenditures 89,170.89 33,856.44 368,285.61 7,238.09 2,569.80 501,120.83 (8,249.99) Receipts Over (Under) Expenditures Unencumbered Cash Balance, January 1 18,174.07 9,924.08 Unencumbered Cash Balance, December 31 $ -17- 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, 1982 CITIZENSHIP TRUST (NOTE 2) Receipts Interest from investments Budget (Over) Under Budget Actual $ 872 . 33 Expenditures 1,500.00 Receipts Over (Under) Expenditures (627.67) Unencumbered Cash Balance, January 1 13,447.15 Unencumbered Cash Balance, December 31 $ 12,819.48 HUD COHMUNITY DEVELOPMENT (NOTE 2) Receipts Interest from investments $ Collection of housing and winteri- zation loans - Principal and interest Total Receipts 728.47 12,446.69 13,175.16 Expenditures Personal services Contractual services Materials and supplies Total Expenditures 13,975.10 82,234.94 701. 88 96,911.92 Receipts Over (Under) Expenditures (83,736.76) Unencumbered Cash Balance, January 1 107,342.71 Unencumbered Cash Balance, December 31 $ 23,605.95 CEMETERY ENDOWMENT (NOTE 2) Receipts Interest from investments $ Perpetual care deposits Total Receipts 7,937.90 3,195.00 11,132.90 Expenditures Receipts Over Expenditures 11,132.90 54,159.27 Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 $ 65,292.17 -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, 1982 MAUSOLEUM TRUST (NOTE 2) Receipts Budget (Over) Under Budget Actual $ 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 STATE WITHHOLDING TAX (NOTE 2) Receipts State withholding tax deductions $ 147,021.33 Expenditures State withholding tax deductions remitted 147,021.33 Receipts Over Expenditures Unencumbered Cash Balance, January 1 Unencumbered Cash Balance, December 31 $ See accompanying notes to financial statements which are an integral part hereof. -19- Purpose General Obligation Bonds Flood control Library City-County building Municipal golf course Municipal golf course Park improvements Bicentennial Center Park improvements Park improvements Bridge improvements Solid waste Fire equipment Revenue Bonds Water and sewerage Totals CITY OF SALINA Salina, Kansas STATEMENT OF BONDED INDEBTEDNESS December 31, 1982 Date of Issue 1l-01-63 1l-01-65 1l-01-66 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 5-01-78 Final Maturity Date 1l-01-84 1l-01-86 1l-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 2-15-07 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% 6.25% SCHEDULE OF MATURITIES December 31, 1982 Payable in Year General Obligation Bonds Revenue Bonds Ended December 31, Principal Interest Principal Interest 1983 $ 730,000.00 $ 350,335.53 $ 1,000.00 $ 277,702.50 1984 740,000.00 309,584.47 1,000.00 277,640.00 1985 637,000.00 272,479.94 1,000.00 277 , 577 . 50 1986 637,000.00 239,649.39 1,000.00 277,515.00 1987 595,000.00 206,997.50 1,000.00 277 ,452.50 Thereafter 3,520,000.00 952,835.00 4,385,000.00 4,151,901.87 Totals $6,859,000.00 $2,331,881.83 $4,390,000.00 $5,539,789.37 See accompanying notes to financial statements which are an integral part hereof. Exhibit C Amount of Bonds Year Ended December 31, 1982 Bonds Original Outstanding Bonds Bonds Outstanding Issue January 1, 1982 Issued Retired December 31, 1982 $ 260,000.00 $ 39,000.00 $ $ 13,000.00 $ 26,000.00 675,000.00 150,000.00 30,000.00 120,000.00 1,100,000.00 330,000.00 55,000.00 275,000.00 75,000.00 30,000.00 6,000.00 24,000.00 75,000.00 30,000.00 6,000.00 24,000.00 100,000.00 30,000.00 10,000.00 20,000.00 6,500,000.00 5,200,000.00 325,000.00 4,875,000.00 250,000.00 175,000.00 25,000.00 150,000.00 250,000.00 200,000.00 25,000.00 175,000.00 250,000.00 225,000.00 25,000.00 200,000.00 900,000.00 900,000.00 190,000.00 71 0, 000. 00 280,000.00 280,000.00 20,000.00 260,000.00 10,715,000.00 7,589,000.00 730,000.00 6,859,000.00 4,394,000.00 4,391,000.00 1,000.00 4,390,000.00 $15,109,000.00 $11,980,000.00 $ $731,000.00 j11,249,000.00 -20- Cash in Depositories Planters Bank and Trust Company Salina, Kansas National Bank of America, Salina, Kansas First National Bank and Trust Company, Salina, Kansas First Bank and Trust Co., Salina, Kansas Security Savings and Loan Association, Salina, Kansas Total Cash in Depositories u.S. Treasury Bonds CITY OF SALINA Salina, Kansas COMPOSITION OF ENDING CASH BALANCES December 31, 1982 Cash in Checking Cash in Savings ($20,160.56) $ 408.59 35,179.40 208,252.19 879. 22 30,000.00 Certificates of Deposit Repurchase Agreements_ Exhibit D Total $1,190,000.00 $600,000.00 $1,769,839.44 See accompanying notes to financial statements which are an integral part hereof. 1,206,000.00 1,206,408.59 1,291,500.00 50,000.00 1,584,931.59 1,000,000.00 1 , 000, 879. 22 30,000.00 $16,306.65 $238,252.19 $4,687,500.00 $650,000.(~ $5,592,058.84 865,083.95 Petty Cash Water and Sewerage Department Bicentennial Center Total Petty Cash Total (Exhibit A) 2,500.00 3,420.00 5,920.00 $6,463,062.79 -21- CITY OF SALINA Salina, Kansas COMPARISON OF GROSS CASH BALANCES WITH DEPOSITORY SECURITY December 31, 1982 Gross Cash Balances Cash in checking Cash in savings Certificates of deposit Totals Less FDIC or FSLIC coverage Balances Securable by Collateral Security required (70%) Security provided by depositories Amount Under secured by Statute $ Planters Bank and Trust Company National Bank of America First National Bank and Trust Company $ 70,115.16 $ 6,312.66 $ 84. 60 39,495.53 $ 208,252.19 1,190,000.00 1,206,000.00 1,291,500.00 First Bank and Trus t Co. 1,000,000.00 Exhibit E Security Savings and Loan Association 1,260,115.16 1,212,397.26 1,539,247.72 1,000,879.22 30,000.00 170,115.16 106,312.66 139,495.53 100,879.22 30,000.00 1,090,000.00 1,106,084.60 1,399,752.19 763,000.00 774,259.22 979,826.53 2,123,445.28 2,089,124.50 1,378,416.00 $ $ 900,000.00 630,000.00 907,313.00 $ See accompanying notes to financial statements which are an integral part hereof. $ -22- CITY OF SALINA Salina, Kansas Exhibit F COMPARISON OF SPECIAL ASSESSMENTS PROJECTS EXPENDITURES TO AnTHORIZATIONS December 31, 1982 Project Name Mayfair drainage canal (Note 7) East Ridge water and sewer improvements Mayfair water and sewer improvements Mayfair street and drainage improvements Curbing, guttering, paving, and grading a portion of West Diamond Drive Coronado water line (Note 7) Lakewood Coachlight lane (1) Project complete at December 31, 1982. Proj ect Authorization $ 93,500.00 29,428.50 140,277.50 320,771. 60 129,616.20 11,091.75 621,191.75 88,544.25 See accompanying notes to financial statements which are an integral part hereof. Cumulative Expenditures $107,415.00 (1) 24,085.25 (1) 107,576.16 (1) 267,524.15 (1) 92,141.66 (1) 11 , 163. 23 (1) 479,997.68 (1) 40, 482 . 90 -23- CITY OF SALINA Salina, Kansas NOTES TO FINANCIAL STATEMENTS 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 require: 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. As discussed above, purchase commitments are recorded as encumbrances at year-end. Additionally, loss contingencies are recorded only when determined payment is probable and can be reasonably estimated. 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; 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 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 confonlity with gener- ally accepted accounting principles. -24- 2. The accompanying financial statements contain several funds for which budgets were not prepared. The reasons for omitting certain budget comparisons are shown below. 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. 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 expenditures 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 issues. 3. The City has outstanding an issue of Combined Water and Sewer System Revenue Bonds, Series of 1961, of which the principal amount of $825,000 remains out- standing at December 31, 1982, and an issue of Combined Water and Sewer System Revenue Bonds, Series of 1977, of which the principal amount of $2,990,000 remains outstanding at December 31, 1982. The City has provided for the payment of all principal and interest on the bonds by depositing United States government obligations with an escrow agent, as explained in Note 2 on page 32. Neither the assets deposited with the escrow agent for retirement of the 1961 and 1977 bond issues, nor the outstanding 1961 and 1977 obligations, are reflec- ted in the accompanying financial statements. The amounts required to be maintained in the reserve accounts established by the bond ordinance authorizing issuance of the Waterworks and Sewage System Refunding Revenue Bonds, Series of 1978, explained in Note 2, on page 32, have been provided and the net operating income of the water and sewerage system appears sufficient to meet the requirements of the ordinance. 4. 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. Certain expenditures of the Fair Housing Assistance Program are reimburseable by Federal agencies. General funds are being used to temporarily finance the deficit cash balances of the fund as of December 31, 1982, in accordance with K.S.A. 12-1664. 6. The City has outstanding a temporary note in the amount of $468,280 at December 31, 1982, which bears interest at 7% per annum and is due December, 1984. -25- 7. 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 deficit at December 31, 1982 follows: Cash balance (deficit) resulting from Capital projects completed Capital projects in process Special assessments projects Reserves for future capital projects $573,731.57 118,158.89 (881,367.28) 66,232.87 Total ($123,243.~) The City issued internal improvement bonds dated May 1, 1983, to fund the special assessments projects. General funds are being used to temporarily finance the deficit cash balance as of December 31, 1982 in accordance with K.S.A. 10-1116 (a) (2). Exhibit F provides a comparison of cumulative special assessments projects expenditures to authorizations. Two special assessments projects exceeded the project authorization at December 31, 1982 which appears to be in vio- lation of K.S.A. 79-2935. -26- SEPARATE FINANCIAL STATEMENTS WATER AND SEWERAGE DEPARTMENT MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS OF'FICES IN KANSAS NEBRASKA OKLAHOMA HOME OFFICE: p, 0, BOX 1179 SALINA, KANSAS 67401 913,825,1561 To the Mayor and The Board of City Commissioners: We have examined the balance sheet of the water and sewerage department of the City of Salina, Kansas, as of December 31, 1982 and 1981, and the related state- ments of income, contributions and retained earnings, and changes in financial position for the years then ended. Our examination was 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 report dated July 9, 1982, we did not express an opinion on the 1981 finan- cial statements because we did not perform procedures sufficient to verify the cost of inventories and property, plant, and equipment. Additionally we disclosed the following departures from generally accepted accounting principles. (1) Property, plant, and equipment included only amounts paid from the water and sewerage fund of the City of Salina. Amounts paid by other funds were not recorded. (2) Charges to expense for depreciation of fixed assets over their useful lives had not been recorded in the financial statements. As discussed in Note 3, the 1981 financial statements have been restated to conform with generally accepted accounting principles. Accordingly, our present opinion on the 1981 financial statements, as presented herein, is different from that expressed in our previous report. 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, 1982 and 1981, and the results of its operations and the changes in its financial position for the years then ended, in conformity wtth generally accepted accounting principles applied on a consistent basis after restatement for the change, with which we concur, in the method of accounting for property, plant, and equipment as described in Note 3 to the financial statements. Respectfully submitted, Salina, Kansas June 13, 1983 /~~~ C.P.A. Certified Public Accountant in charge of and actively engaged on this audit. ~~ -27- CITY OF SALINA Salina, Kansas WATER AND SEWERAGE DEPARTMENT BALANCE SHEET December 31, 1982 (With comparative figures for the preceding year) 1982 1981 ASSETS Current Assets Cash and investments Accounts receivable Inventories Total Current Assets $ 690,737.63 225,179.99 123,857.53 1,039,775.15 $ 503,158.87 197,760.96 111,345.75 812,265.58 Restricted Assets System sinking fund Cash and investments Plant reserve fund Cash and investments System reserve fund Cash and investments Total Restricted Assets Total Assets 1,070,132.73 879,628.82 618,326.49 537,736.06 778,185.35 679,131.93 2,466,644.57 2,096,496.81 116,263.00 116,263.00 14,393,218.00 14,329,383.00 9,755,599.00 9,698,488.00 53,384.00 44,641. 00 96,557.00 24,318,464.00 24,285,332.00 11,020,304.00 10,439,331.00 13,298,160.00 13,846,001.00 55,776.31 58,007.35 $16,860,356.03 $16,812,770.74 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 issuance costs See accompanying notes to financial statements on pages 32 and 33 which are an integral part hereof. LIABILITIES Current Liabilities Accounts payable Customers' meter deposits Accrued interest payable Accrued employees' retirement Long-term obligations due within one year Total Current Liabilities Long-Term Liabilities Revenue bonds due after one year Reserves, Contributions and Retained Earnings Reserves System sinking fund Plant reserve fund System reserve fund Total Reserves Contributions and retained earnings (Exhibit C) Total Reserves, Contributions and Retained Earnings Total Liabilities 1982 $ 108,518.99 79,795.18 104,173.59 1,000.00 293,487.76 4,389,000.00 1,070,132.73 618,326.49 778,185.35 2,466,644.57 9,711,223.70 12,177 , 868.27 $16,860,356.03 Exhibit A 1981 $ 66,268.54 76,450.18 104,173.59 9,334.57 1,000.00 257,226.88 4,390,000.00 879,628.82 537,736.06 679,131.93 2,096,496.81 10,069,047.05 12,165,543.86 $16,812,770.74 -28- CITY OF SALINA Salina, Kansas Exhibit B WATER AND SEWERAGE DEPARTMENT INCOME STATEMENT Year Ended December 31, 1982 (With comparative figures for the preceding year) Net Income (Loss) 1982 1981 $2,413,156.78 $2,157,547.09 652,499.76 642,746.57 5,693.77 16 , 041. 91 10,696.29 11,685.00 1,958.33 10,112.25 8,461.51 3,092,158.85 2,838,440.41 63,350.93 58,160.83 714,173.28 608,846.75 153,201.46 145,782.08 236,474.94 199,983.67 263,521.86 248,798.42 499,410.00 434,015.38 534,794.33 490,794.07 580,973.00 608,880.00 3,045,899.80 2,795,261.20 46,259.05 43,179.21 246,061.40 214,731. 89 277,765.00 277,804.06 2,231.04 2,231.04 279,996.04 280,035.10 $ 12,324.41 ($ 22,124.00) Operating Revenues Water revenue Sewage revenue Tapping service and frontage charges Service charge - Sanitation department Fire hydrant revenue 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 Other Expenses Interest on revenue bonds Amortization of deferred issuance costs Total Other Expenses See accompanying notes to financial statements on pages 32 and 33 which are an integral part hereof. -29- CITY OF SALINA Salina, Kansas Exhibit C WATER AND SEWERAGE DEPARTMENT STATEMENT OF CONTRIBUTIONS AND RETAINED EARNINGS Year Ended December 31, 1982 (With comparative figures for the preceding year) Balance, End of Year 1982 1981 $10,069,047.05 $10,362,496.02 12,324.41 278,765.00 278. 827. 50 54,544.76 291,089.41 333.372.26 22,124.00 469,268.91 442.479.12 80,590.43 56,985.96 99,053.42 105,232.15 648,912.76 626,821.23 $ 9.711.223.70 $10.069,047.05 Balance, Beginning of Year, as restated (Note 3) Addi tions Net income for the year (Exhibit B) Transfers from restricted reserves System sinking fund System reserve fund Total Additions Deductions Net loss for the year (Exhibit B) Transfers to restricted reserves System sinking fund Plant reserve fund System reserve fund Total Deductions See accompanying notes to financial statements on pages 32 and 33 which are an integral part hereof. -30- CITY OF SALINA Salina, Kansas WATER AND SEWERAGE DEPARTMENT STATEMENT OF CHANGES IN FINANCIAL POSITION Year Ended December 31, 1982 (With comparative figures for the preceding year) 1982 SOURCE OF FUNDS Net income (loss) Charges against net income not affecting working capital Depreciation Amortization of deferred issuance costs $ 12,324.41 580,973.00 2 ,231. 04 Funds Provided by Operations 595,528.45 APPLICATION OF FUNDS Additions to property, plant, and equipment Increase in reserve account assets Decrease in long-term liabilities Increase in working capital (see below) 33,132.00 370,147.76 1,000.00 191,248.69 Totals $595,528.45 CHANGES IN WORKING CAPITAL Exhibit D 1981 ($ 22,124.00) 608,880.00 2,231.04 588,987.04 153,832.00 271 ,324.97 1,000.00 162,830.07 $588,987.04 Increase or (Decrease) Change in Current Assets Cash and investments Accounts receivable Inventories Net Change in Current Assets $187,578.76 27,419.03 12,511.78 227,509.57 Change in Current Liabilities Accounts payable Customers' meter deposits Accrued expenses Net Change in Current Liabilities 42,250.45 3,345.00 (9,334.57) 36,260.88 $191,248.69 Net Change in Working Capital See accompanying notes to financial statements on pages 32 and 33 which are an integral part hereof. $ 93,017.87 51,546.41 22,229.51 166,793.79 3,889.47 9,265.81 (9,191.56) 3,963.72 $162,830.07 -31- CITY OF SALINA Salina, Kansas WATER AND SEWERAGE DEPARTMENT NOTES TO FINANCIAL STATEMENTS 1. Significant accounting policies: (a) The accrual method of accounting is used in the preparation of these financial statements. Income is recorded as earned and expenses as incurred. (b) Inventories are stated at original cost and consist primarily of utility plant supplies and equipment not placed in service. ( c) Property, plant, and equipment are stated at cost. prior to 1981 have been adjusted to reflect cost as a firm of professional appraisers. Assets acquired determined by (d) Depreciation is computed using the straight-line method over the estimated useful life of each asset. (e) Investments are stated at cost, which approximates market. (f) The direct write-off method is used to record uncollectible accounts receivable. 2. The City issued its Waterworks and Sewage System Refunding Revenue Bonds, Series of 1978, on May 1, 1978, for the purpose of refunding its Combined Water and Sewage System Revenue Bonds of 1961 and 1977. Proceeds of the 1978 bond issue were invested in United States government obligations deposited with Planters Bank and Trust Company, Salina, Kansas, 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 and 1977 obligations are reflected in the accompanying financial statements. The new bond issue in the original amount of $4,394,000 matures serially between February 15, 1979, and February 15, 2007, and bears interest at rates varying from 6 1/4 to 6 3/8 percent per annum. Principal of $1,000 is payable on the 1978 bond issue for each of the next five years. The City has established certain reserve accounts pursuant to the 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 department are pledged to secure pay- ment of the bonds; however, the pledge is subordinate to a similar pledge to secure payment of the 1961 and 1977 bonds. The amounts required to be maintained in the reserve accounts established by the 1978 bond ordinance have been provided and the net operating income of the system for 1982 and 1981 appears sufficient to meet the requireTIlents of the ordinance. -32- 3. The financial statements for the year 1981 have been restated to reflect property, plant, and equipment at cost and to provide depreciation thereon since the date of acquisition. In prior years, only fixed assets purchased by the Water and Sewerage Department were included in the financial state- ments. The restatement includes all fixed assets of the Department as de- termined during an inventory of the Department's fixed assets by a firm of professional appraisers. Following is a summary of the effect of the restatement on net income for the year 1981. Net income, as previously reported Correction to reflect depreciation and expense certain costs previously capitalized $627,752.98 (649,876.98) Net Income (Loss), as Restated ($ 22, 124&Q) Following is a summary of the effect of the restatement on contributions and retained earnings. 1982 1981 Balance, beginning of year, as previously reported $10,817,446.75 $10,461,018.74 Adjustment to reflect property, plant, and equipment at cost less related accumulated depreciation (98,522.72) (98,522.72) Correction to reflect depreciation and expense certain costs pre- viously capitalized in 1981 (649,876.98) Balance, Beginning of Year, as Restated $10,069,047.05 $10,362:,496.02 -33-