Audit - 2002
COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF
CITY OF SALINA, KANSAS
300 West Ash Street
P.O. Box 736
Salina, Kansas 67402-0736
For the Fiscal Year Ended
December 31, 2002
Prepared by Department of Finance and Administration
of City of Salina, Kansas
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CITY OF SALINA, KANSAS
Comprehensive Annual Financial Report
For the year ended December 31, 2002
TABLE OF CONTENTS
INTRODUCTORY SECTION
Letter of Transmittal
GFOA Certificate of Achievement for Excellence in Financial Reporting
Organizational Chart
List of Principal Officials
FINANCIAL SECTION
Independent Auditor's Report on the General Purpose Financial Statements
General Purpose Financial Statements:
Combined Balance Sheet - All Fund Types, Account Groups
and Discretely Presented Component Units
Combined Statement of Revenues, Expenditures and Changes
in Fund Balances - All Governmental Fund Types,
Expendable Trust Funds and Discretely Presented
Component Units
Combined Statement of Revenues, Expenditures and Changes
in Fund Balances - Actual and Budget - General, Special
Revenue and Debt Service Funds
Combined Statement of Revenues, Expenditures and Changes
In Retained Earnings/Fund Balances - All Proprietary Fund Types,
Similar Trust Funds and Discretely Presented Component Units
Combined Statement of Cash Flows - All Proprietary Fund Types,
Similar Trust Funds and Discretely Presented Component Units
Notes to the Financial Statements
Combining, Individual Fund and Account Group Statements and Schedules
General Fund
Comparative Balance Sheets - General Fund
Comparative Statements of Revenues, Expenditures and
Changes in Fund Balances - General Fund
Schedules of Revenues, Expenditures and Changes in
Fund Balances - Actual and Budget - General Fund
Statement
1
2
3
4
5
Schedule
2
3
Paqe
i - ix
x
xi
xii
1 - 2
3-4
5-6
7-8
9
10-11
12 - 36
37
38
39
40 - 42
CITY OF SALINA, KANSAS
Comprehensive Annual Financial Report
For the year ended December 31, 2002
TABLE OF CONTENTS - CONTINUED
FINANCIAL SECTION - CONTINUED
Special Revenue Funds
Combining Balance Sheet - Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Special Revenue Funds
Schedules of Revenues, Expenditures and Changes in Fund
Balances - Actual and Budget - Special Revenue Funds
Debt Service Fund
Comparative Balance Sheets - Bond and Interest Debt Service Fund
Comparative Statements of Revenues, Expenditures and
Changes in Fund Balances - Bond and Interest Debt Service Fund
Schedules of Revenues, Expenditures and Changes in Fund
Balances - Actual and Budget - Bond and Interest Debt Service Fund
Capital Projects Fund
Comparative Balance Sheets - Capital Projects Fund
Comparative Statements of Revenues, Expenditures and
Changes in Fund Balances - Capital Projects Fund
Enterprise Funds
Combining Balance Sheet - Enterprise Funds
Combining Statement of Revenues, Expenses and
Changes in Retained Earnings - Enterprise Funds
Combining Statement of Cash Flows - Enterprise Funds
Schedules of Revenues, Expenditures and Changes in Retained
Earnings - Actual and Budget - Enterprise Funds
Internal Service Funds
Combining Balance Sheet - Internal Service Funds
Combining Statement of Revenues, Expenses and Changes
in Retained Earnings - Internal Service Funds
Combining Statement of Cash Flows - Internal Service Funds
Schedule of Revenues, Expenditures and Changes in
Retained Earnings - Actual and Budget - Internal Service Funds
Schedule
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Paqe
43 - 44
45 - 46
47 - 48
49 - 59
60
61
62
63
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69
70 - 71
72 - 75
76
77
78
79 - 80
81 - 85
CITY OF SALINA, KANSAS
Comprehensive Annual Financial Report
For the year ended December 31, 2002
TABLE OF CONTENTS - CONTINUED
FINANCIAL SECTION - CONTINUED
Trust and Agency Funds
Combining Balance Sheet - Expendable Trust,
Nonexpendable Trust and Agency Funds
Comparative Statements of Revenues, Expenditures and
Changes in Fund Balances - Expendable Trust Fund
Combining Statement of Revenues, Expenses and Changes
In Retained Earnings - Nonexpendable Trust Funds
Combining Statement of Cash Flows - Nonexpendable Trust Funds
Combining Statement of Changes in Assets and
Liabilities - Agency Funds
General Fixed Assets
Comparative Schedules of General Fixed Assets by Source
Schedule of General Fixed Assets - By Function and Activity
Schedule of Changes in General Fixed Assets - By Function
and Activity
GOVERNMENTAL AUDIT SECTION
Independent Auditor's Report on Compliance and on Internal Control
Over Financial Reporting Based on an Audit of Financial Statements
Performed in Accordance with "Government Auditing Standards"
STATISTICAL SECTION
General Governmental Expenditures by Function - Last Ten Years
General Governmental Revenues by Source - Last Ten Years
General Governmental Tax Revenues by Source - Last Ten Years
Property Tax Levies and Collections - Last Ten Years
Schedule
PaQe
86
20
87 - 88
21
89
22
90
23
91
24
92-94
95
25
96
26
97
27
98
99
Table
1 100
2 101
3 102
4 103
CITY OF SALINA, KANSAS
Comprehensive Annual Financial Report
For the year ended December 31, 2002
TABLE OF CONTENTS - CONTINUED
STATISTICAL SECTION - CONTINUED
Assessed and Estimated Actual Value of Property - Last Ten Years
Principal Taxpayers
Property Tax Rates - Direct and Overlapping Governments
Special Assessments Billings and Collections
Computation of Legal Debt Margin
Ratio of Net General Obligation Bonded Debt to
Assessed Value and Net General Obligation
Bonded Debt Per Capita
Ratio of Annual Debt Service Expenditures for
General Obligation Bonded Debt to Total General
Governmental Expenditures
Computation of Direct and Overlapping Debt
Revenue Bond Coverage - Water and Sewer Fund
Property Value and Construction
Demographic Analysis
Enterprise Fund Operating Position History
Table
Paqe
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104
6
105
7
106
8
107
9
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10
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11 110
12 111
13 112
14 113
15 114
16 115
INTRODUCTORY SECTION
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DEPARTMENT OF FINANCE
AND ADMINISTRATION
Rodney Franz, Director
300 West Ash, P.O. Box 736
Salina, Kansas 67402-0736
TELEPHONE (785) 309-5735
FAX (785) 309-5738
TDD (785) 309-5747
E-MAIL rod.franz@salina.org
Website: www.ci.salina.ks.us
Salina
June 26, 2003
To the Citizens of the City of Salina, Kansas:
The Comprehensive Annual Financial Report of the City of Salina, Kansas (the "City") for the year ended
December 31, 2002, is hereby submitted. Responsibility for both the accuracy of the data and the completeness
and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and
belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly
the financial position and results of operations of all various funds and account groups of the City. All disclosures
necessary to enable the reader to gain an understanding of the City's financial activities have been included.
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate
of Achievement for Excellence in Financial Reporting to the City of Salina for its Comprehensive Annual Financial
Report (CAFR) for the fiscal year ended December 31,2001. The Certificate of Achievement is a prestigious
national award recognizing conformance with the highest standards for preparation of state and local government
financial reports.
In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and
efficiently organized comprehensive annual financial report, whose contents conform to program standards. The
CAFR must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for one year only. We believe our current report continues to conform to
Certificate of Achievement program requirements, and we are submitting it to GFOA.
The Comprehensive Annual Financial Report is presented in three sections: introductory, financial and statistical.
The introductory section includes this transmittal letter, the City's organizational chart and a list of principal
officials. The financial section includes the general-purpose financial statements as well as the combined,
combining, individual fund and account group financial statements and schedules, and the independent auditor's
report on the financial statements and schedules. The statistical section includes selected financial and
demographic information, generally presented on a multi-year basis.
This report includes all funds and account groups of the City. The City provides a full range of services including
police and fire protection; construction and maintenance of streets, drainage facilities and other infrastructure;
recreational activities and cultural events; emergency medical services and convention facilities. In addition to
general government activities, the City also provides water, wastewater, sanitation and solid waste services;
therefore, these activities are included in the reporting entity.
The reporting entity includes two component units, both proprietary fund types. The Salina Airport Authority
operates the Salina Municipal Airport and Airport Industrial Center, and the Salina Housing Authority administers
public housing programs within the City of Salina. In addition, the City of Salina participates in two joint ventures
with Saline County, the Salina - Saline County Board of Health and the City-County Buildin¡¡ Authority.
Economic Condition and Outlook
In 2002, the City continued to grow and solidify its standing as the regional trade center for north central and
northwest Kansas. Retail expansion continued to be significant in the community. New commercial building
permits were issued with a combined value of $47,809,924. This is somewhat less than the two previous years,
but still substantially greater than 1999 and earlier. The high level of commercial permits in rI=cent years reflects
in part a $98 million multi-year school improvement project, which will be coming to completion in 2003.
According to a March 2003 Kansas State University study, the City of Salina has the fourth highest "trade pull
factor" among first class cities in the State. The pull factor measures the degree to which a city or county area
captures retail trade from outside the jurisdiction. A pull factor of greater than 1 indicates that a city is attracting
more retail trade from outside the city/county than it is losing to other counties. It is apparent from this that Salina
continues to serve as a regional economic hub in 2002. In addition, Saline County ranks third in the State
Economic Strength index, as outlined by Kansas State University research and extension. The index measures
economic prosperity, using wealth, personal income, and employment.
The growth activity in the local housing industry continued in 2002. The strong local economy and lower interest
rates contributed to this demand. Seventy-four new single-family homes were started in 2002. This is
comparable to previous years and the pace is expected to continue at or above this level through 2003. As of
April 2003, 260 buildable and developing lots were available within the City of Salina, with 60 lots being added
to the City's inventory in 2002. Plans that will add 67 additional buildable lots in existing subdivisions are under
review by the City Development Departments. Two new subdivision plats comprising 116 n=sidentiallots have
been filed in early 2003.
Several industrial and commercial establishments in Salina are making major expansions to their facilities:
Lowe's Home Improvement completed a new $4.6 million, 150,000 square foot "Super Center" in Salina in 2002.
The store employs approximately 140 people.
Power Vac, completed a 12,750 square foot expansion, nearly tripling the size of their facility. Power Vac
manufactures cleaning solutions used at Blue Beacon and Green Lantern car washes and employs 27.
Kasa Fab has expanded its operation by more than 35,000 squre feet, and relocated to the South Industral Area.
Kasa provides custom electrical control systems for manufacturing processes. The expansion provides the
groundwork for a 20 percent increase in their employment within 3 years.
COMCARE, a medical partnership, has added a new Imaging Center, providing ultrasound, CT scanning, digital
mammography, nuclear medicine, and MRI. A radiologist will be on site approximately 40 hours per week. The
expansion has created 7 new jobs.
Bergkamp Inc., a manufacturer of public works slurry seal and micro surfacing equipment, has acquired the
assets and ongoing business of Akzo Nobel Asphalt Application Equipment Division in Waco, Texas. All
manufacturing will be moved to Salina, creating approximately 10 new jobs.
Major Initiatives
The Salina community initiated a major improvement to the educational system in November 1999, when the
voters approved a $98,000,000 bond issue to be used for school expansion and construction. Also approved
in the same election was an additional y.. cent City sales tax to be used for instructional tectmology and career
educational equipment. Bond issue proceeds have been used to construct a new middle school (now complete),
replacing a structure built in 1912. In addition, expansions and improvements are completed or substantially
underway at both high schools, at South Middle School, and at the Elementary Schools. Th,e project continued
to make significant progress in 2002.
The technology sales tax is expected to raise about $12,000,000 to be used for K-12 improvements as well as
improvements to the Salina Area Vo-Tech. The tax for this purpose is scheduled to sunset June 30, 2004. From
project inception through the end of 2002, the City has transferred a total of $ 7,796,273.42 in sales tax proceeds
to U.S.D. 305 for use in the technology project.
In 2001 the Historic Fox Theatre Foundation announced that they had successfully raised $2,600,000 in private
donations towards the rehabilitation of the old Fox-Watson Theatre in downtown Salina. Contracts were let, and
the rehabilitation project was completed in early 2003. The building had been vacant since March, 1989 when
ii
it was donated to the City. The City of Salina partnered with the Foundation in this endeavor, contributing the
theatre property and an additional $750,000 grant towards restoring the property to a functioning performing arts
facility in the downtown district.
In 2002, the City completed a major extension of water and sewer utilities to the interstate commercial area
located at 1-70 and Ohio Street. This assures that the area has an adequate supply of water to support future
development.
A $4.5 million project to construct an interchange at Waterwell Road and 1-135 has been contracted by the State
of Kansas. This is a cooperative City-County-State Project, with the City of Salina share projected at $950,000.
Saline County will contribute $365,000, with the State of Kansas picking up the balance of the project as part
of a major economic development program. This interchange provides direct service to the South Ninth Street
Industrial Area as well as the Airport Industrial Center.
During 2002 the Salina Airport Authority awarded a contract to construct a new 4,300 foot runway parallel to the
existing runway. The new runway will be used primarily for flight training by Kansas State University-Salina
College of Aviation Technology and by flight operations departments at the major aircraft manufacturer's in
Wichita. Commercial and General Aviation users will benefit from the reduced congestion on the primary runway.
In 2001, the City progressed towards another major transportation objective with the announcement of a grant
to construct a railroad overpass on North Ohio Street, a major arterial and entryway to the city. The State of
Kansas will contribute $12,000,000 towards the $18,000,000 project, with the City of Salina and the railroad
paying the remaining portion. The project will eliminate four tracks and bridge six additional tracks, providing
significant traffic safety enhancements as well as improving access to the City from Interstate 70. During 2002
significant progress was made on project design and property acquisition activities. This project is anticipated
to be contracted in 2005 and completed in late 2007.
Major improvements to the Water Treatment Plant were initiated in 1998 to increase treatment capability and
efficiency, and to address a groundwater contamination issue in Central Salina. This groundwater redemption
project brought the City into full completion of a state compliance agreement, eliminating any economic impacts
related to groundwater issues. Cost for the plant improvements was $5,500,000. Approximately $1,800,000 in
grant funds from the State of Kansas assisted in construction. The balance of the cost is financed by a 20-year
low interest loan from the State of Kansas. A second phase of the project has been initiated, at an additional
estimated cost of $4,000,000, also financed by a 20 year loan. This phase of the project will replace and expand
the clarifiers, provide a new lab facility, as well as an administration building. Completion is anticipated by
December, 2003.
Solid Waste disposal is becoming a stable operation, with 80,000 to 90,000 tons being disposed of each year.
The community remains committed to recycling and resource conservation, with several initiatives that began
in 1997, including a yard waste recycling and composting program in addition to continuing a mulching mower
rebate program. The community currently has about 4,700 yard carts placed to encourage recycling of yard
waste as an alternative to disposal. The Solid Waste Management Committee is currently investigating further
recycling/reuse initiatives. Implementation of a disposal agreement with McPherson County was implemented
2002, enhancing the financial viability of the landfill, as well as meeting a neighbor's needs. The remaining life
of the landfill under current conditions is 91 years. Permanent closure of the first two Subtitle D disposal areas
is scheduled for 2003, as well as opening a fourth area.
2002 saw the completion of Phase III of the improvements to South Ninth Street, another major arterial providing
access to the South 9th commercial and industrial districts. The project provides expanded paving, turning lanes,
traffic signals, and other related enhancements at a final cost of $2.6 million. The project will be financed with
a 15 year bond issue in 2003.
Street and drainage improvements were completed to Marymount Road, a major trafficway serving a developing
residential area of the City. The project installed storm drainage structures and reconstructecl the street to urban
standards at a cost of $1.2 million. This project will provide support to future development in that area, as well
as improving services to existing residents.
Capital Improvement Proç¡ram (CIP)
The City's Capital Improvement Plan (CIP) consists of two components. One component consists of "routine"
capital-including vehicle and equipment replacement, technology replacement, building repair and improvement,
routine pavement maintenance activity, utility system enhancements and similar items. The amount of funding
111
for these projects may fluctuate based on needs and funding availability, however, planned amounts are allocated
over a multi-year period. Source of funding for routine capital is current cash resources from the fund appropriate
to the nature of the purchase.
The second component of the CIP includes major projects that typically require issuance of bonds or notes,
although these projects may also be supplemented with available cash and grant financing. The plan is updated
each year after an extensive evaluation of the demands on future financial resources.
Construction Initiated': 2003 2004 2005 2006 2007
Routine Capital (All Funds) $ 3,997,000 $ 3,400,000 $ 5,000,000 $ 4,000,000 $ 4,000,000
Major Projects:
General Fund $ 125,000
Flood and Drainage Fund $ 130,000
Special Park Fund
Gas Tax Fund $ 175,000
Solid Waste Fund
Water & Wastewater Fund $ 100,000
General Obligation Bonds $ 5,940,000 $ 700,000 $ 5,000,000
Revenue Bonds $
Other Sources $ 5,261,600 $ 14,300,000
Total $ 15,728,600 $ 4,100,000 $ 24,300,000 $ 4,000,000 $ 4,000,000
Five Year Total $52,128,600
*The year a project is scheduled reflects the year that construction is initiated. Preliminary work (design,
acquisition) may precede this date by one or more years, and permanent financing may not occur until one (or
more years depending on project magnitude) subsequent to this date.
Financial Overview
Despite some adverse economic circumstances, conservative management plus a strong local economy have
set the stage for what has been and is projected to be continued financial stability for the City The City has been
able to continue to maintain stable fund balances (well above target levels), while continuing existing service
levels.
Salina has experienced some impacts of the national economic circumstances, however the diversity and
underlying strength of the local economy has limited the economic stress in the community. AJthough moderately
higher than last year at 3.6%, the unemployment rate remains well below the State and national averages. In
addition, this is lower than all but 3 years out of the last 10 years. Property tax delinquency remains low and
stable at approximately 3%, and collections on delinquent taxes are higher than is normal, with the result that total
tax collections in 2002 were 99.9% of the amount levied, and special assessment collections were at 100%.
Local retail sales taxes continued to grow at a modest rate, increasing from $12.01 million in 2001 to $12.26
million in 2002, a growth of about 2.1%. Budgetary basis fund balances at 12/31/2002 exceeded both budget
and target levels in all major operating funds.
The Water and Sewer fund benefited from the current interest rate environment through re-financing of the
outstanding 1992 and 1994 revenue bonds, resulting in a reduction of required reserves as well as significant
reductions in future interest expenses. The refinancing resulted in reduction of future debt payments by
$1,580,963.
However, the money markets that resulted in refinancing savings have adversely affected the City of Salina with
respect to interest income. 2002 revenue from this source declined significantly, with the General fund budgetary
basis allocation declining from $585,717 in 2001 to $251,845 in 2002. The performance of this revenue source
is tied directly to economic conditions, and when the economy improves, earnings will slowly recover.
2002 also saw substantial increases in utilization and costs in the Employee Health Insurance Fund, with the
result that the fund experienced a deficit fund equity of $44,090 at the close of the fiscal year. Premiums for the
plan have been increased to offset the increase in costs.
Finally, the State of Kansas, in response to its financial challenges, announced that it was eliminating both the
City-County Revenue Sharing and Local Ad Valorem Tax reduction shared revenues. Both of these State
programs were initiated for the purpose of local property tax relief. The 2002 loss of nevenue was about
$169,000. The full impact in 2003 and beyond will be about $800,000 per year.
IV
Budaetarv and Financial Controls
A critical part of the control system is the City's comprehensive Budgetary and Financial Policies, which establish
guidelines for budgetary and financial practices. The Budgetary and Financial Policies are rt:wiewed by the City
Commission and updated each year as a part of the budget process.
City staff is responsible for establishing and maintaining an internal control structure designed to ensure that the
assets of the City are protected from loss, theft or misuse and that adequate accounting data is compiled to allow
for the preparation of financial statements in conformity with generally accepted accounting principles. The
internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives
are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the
benefits likely to be derived; and (2) the valuation of costs and benefits require estimates and judgment by
management.
The objective of budgetary controls is to ensure compliance with legal provisions embodied in the annual
appropriated budget approved by the City Commission. The legal level of budgetary control is maintained at the
Fund level, in accordance with State Statutes. However, management control is maintained at the department
level. The City uses an encumbrance accounting system, in which estimated purchase amounts are recorded
prior to the release of purchase orders to vendors. Open encumbrances are reported as reservations of fund
balance at December 31,2002 in the general fund and the special revenue funds. Various internal compliance
procedures are implemented to insure proper implementation of the budget as well as to maintain a degree of
accountability for both revenues and expenditures.
Budaetarv Basis Fund Balances. Taxina Funds
Shown below are the December 31 actual budgetary basis fund balances in the city's tax supported funds for
2000, 2001, and 2002.
Fund
General
Employee Benefits
Flood and Drainage
Bond and Interest
Total Fund Balance
Fund balance as % Revenue
2000 2001 2002
$5,241,625 $5,816,308 5,414,814
1,247,984 758,314 612,678
235,526 124,567 233,054
942,981 945,210 983.414
$7,668,116 $7,644,399 $7,243,960
---------- ---------- -----------
---------- ---------- -----------
$28,747,771 $29,810,814 $27,568,116
---------- ---------- ------.----
---------- ---------- -----------
26.7% 25.6% 26.3%
------ ------ --.----
------ ------ --.----
Tax Funds Revenues
Budgetary fund balances represent the short term ability of the City to address cash flow fluctuation and to absorb
and respond to adverse changes in the economy or to unanticipated demands on the government to provide
additional services as a result of an emergency. Current budgetary policy establishes a minimum target for the
General Fund of 15% of current year revenues. The actual General Fund unencumbered balance as of
12/31/2002 represents 23.5% of current revenue, well in excess of the target balance. Targets for the other
taxing funds are somewhat lower. Balances remain well in excess of these targets, and are more than adequate
to address potential needs.
Revenues, General, Special Revenue, and Debt Service Funds:
The following table presents a summary of General Fund, Special Revenue Funds and Debt Service Fund GAAP
basis revenues for the years ended December 31, 2001 and 2002. Revenues to Capital Projects and Fiduciary
type funds are excluded.
v
2001 - 2002 2001 % of 2002 % of
Revenue Change 2001 Total 2002 Total
Pro p e rty T a xes $1,006,460 $7,079,205 20% $8,085,6ß5 23%
Sales Taxes $247,077 12,010,742 35% 12,257,819 35%
Other Taxes ($147,368) 3,192,683 9% 3,045,315 9%
Total Taxes $1,106,169 22,282,630 64% 23,388,799 67%
Intergovernm ental ($314,939) 3,916,482 11 % 3,601,543 10%
Fees and Charges 20,495 2,107,409 6% 2,127,904 6%
Special Assessm ents ($31,363) 1,320,324 4% 1,288,961 4%
Other Revenues ($707,459) 5,001,469 14% 4,294,010 12%
Total Revenues 72,903 34,628,314 100% 34,701,217 100%
Total GAAP basis revenues increased by $72,903 or about .2%, The overall increase masks some significant
underlying changes, Other Taxes decreased by $147,368, This is entirely attributable to Franchise taxes, and
reflects the volatility of gas prices, which were very high in early 2001, returning to normal levels for 2002,
Intergovernmental revenues declined significantly, About $150,000 of this decline was in the General Fund,
reflecting the cutbacks to State Aids made by the Legislature, The remainder of the change was due to the
completion of the A-Plus Economic Development project from the Department of Housing and Urban
Development. This was a "pass-through program", and has a corresponding expenditure reduction, The Fair
Housing program also received some significant increases in distributions,
The decline in other revenues reflects a decrease in investment income, resulting from the low interest rates, and
to a decline in Bicentennial Center event revenues of approximately $220,000,
A review of the revenue history reveals that total taxes are a slightly larger proportion of the revenue stream in
2002 (67%) compared to 1993 (64%), However, within the classification oftaxes, there has been a pronounced
shift from reliance on the property tax to sales and other taxes, (See statistical tables 2 and ~\ on pages 101 and
102,) This is consistent with the long-term policy goal of the community to reduce reliance on property taxes
where prudent and possible,
Expenditures. General. Special Revenue. and Debt Service Funds:
The following table presents a summary of General Fund, Special Revenue Funds and Debt SeNice Fund GAAP
basis expenditures for the years ended December 31, 2001 and 2002, The table excludes revenues to Capital
Projects and Fiduciary Funds,
2001 - 2002 2001 % of 2002 % of
Expenditure Change 2001 Total 2002 Total
General Government ($104,350) $2,226,839 6% $2,122,4139 6%
Public Safety 643,207 11,326,371 33% 11,969,E,78 34%
Public Works 250,578 4,865,373 14% 5,115,£151 14%
Culture and Recreation (45,154) 4,340,351 13% 4,295,197 12%
Community Development 33,810 4,152,742 12% 4,186,Ei52 12%
Public Health and Sanitation (13,638) 885,198 3% 871,Ei60 2%
Subtotal, Operating Items 764 ,453 27,796,874 28,561 ,2,27
Debt Service (11,583) 3,324,479 10% 3,312,Ei96 9%
Capital Outlay 411 3,473,503 10% 3,473,SI14 10%
Total Expenditures 753281 34,594,856 100% 35,348,137 100%
Total expenditures increased by $753,281 or 2.2%, The bulk of this increase is in Public Safety (5,7%) and
Public Works (5.2%), Within Public Safety, approximately half of the increase is attributable to Municipal Court
expenses. This reflects the additional cost of housing prisoners in the Saline County jail. Within Public Works,
the most significant increases occurred as a result of utility (Electric, Gas, Water and Sewer) costs.
VI
Proprietary Operations
The City has four enterprise operations: Water and Sewer, Golf Course, Solid Waste and Salnitation. The table
below summarizes some key operational statistics for the enterprise funds:
2001 - 2002 Change 2001
Charges for Services:
Water and Sewer $963,589 $11,601,042 $12,564,631
Sanitation 21,816 1,615,873 1,637,689
Solid Waste 97,325 2,073,777 2,171,102
Golf Course 32,284 804,166 836,450
Water Account billings 632 231,012 231,644
Water Metered (billion gallons) 0.134 2.143 2.277
Solid Waste Tonnage at landfill 6,372 76,416 82,788
Golf Rounds: 18 Hole 814 39,716 40,530
Golf Rounds: Par3 19 6,601 6,620
Sanitation Customers 425 13,392 13,817
2002
A comprehensive five year rate study of the Water and Sewer systems was completed in late 2001. As a result
of that study, water rates were increased an average of 3.2% and sewer rates increased by an average of 5.7%
for 2002. In addition, the volume of water sold increased. As a result, Water and sewer operating revenues
increased by $ 963,589 in 2002. Operating income (Operating Revenue less Operating expense) for the utility
was $1,807,277 compared to $940,939 in 2001. The change in operating income was due wholly to increases
in revenue. On a budgetary basis, revenues exceeded expenditures by $546,028.
2002 GAAP Basis Operatinq Results
Water and
Sewer Solid Waste Sanitation Golf course
Operating Revenues $ 13,435,656 $ 2,210,231 $ 1,638,280 $ 867,108
Operating Expense $ 11,628,379 $ 2,049,152 $ 1,654,313 $ 832,914
Operating Income (Loss) $ 1,807,277 $ 161,079 $ (16,033) $ 34,194
Non-Operating Revenues
(Expenses) and Transfers $ (819,921) $ 62,622 $ 20,208 $ 3,065
Net Income (Loss) $ 987,356 $ 223,701 $ 4,175 $ 37,259
The City continued to meet subtitle D Federal regulations at the Solid Waste Disposal facility. Rates were
decreased to $27/ton in 2000, and maintained at this level through 2002. This fund appears now to be stable,
and any future rate changes should be on a scale consistent with inflationary trends. Operating revenues
increased by $115,531, consistent with the increase in volume. Operating income was $161,079. This fund
maintains a healthy budgetary fund balance of $1 ,853,431, and adequate resources to service the debt on new
cells as they are constructed. On a budgetary basis, expenditures exceeded revenues by $545,402.
Sanitation operating revenues increased by $22,366 while the customer base grew by about 3% in 2002.
Sanitation rates were not changed in 2002. Net operating loss was $16,033, down from an operating income of
$33,745 in 2001. On a budgetary basis, expenditures exceeded revenues by $9,322. The budgetary basis fund
balance was $486,020, well above target.
Golf Course operating income was $34,194, down from $255,851 in 2001. This represents a change back to
routine operations in 2002. Significant expenditures were deferred in 2001 to re-establish solvency after
significant losses in the prior year. These deferrals resulted in unusually high operating income for that year.
On a budgetary basis, revenues exceeded expenditures by $23,539. The budgetary basis fund balance was
$132,865, comfortably above the target of $100,000.
vii
Internal Services:
The City provides a partial self funded health insurance program for employees. Individual stop loss coverage
is purchased with an attachment point of $75,000. For 2002, the aggregate stop loss coverage was set at
$3,726,826. Dental coverage is provided. The dental portion of the plan is fully self-insured and not subject to
stop loss protection, however, total benefits are limited to $1,500 per year per person. Since February 1999, the
prescription portion of the program is also fully self-insured. The fund is fully funded by participant and employer
premiums. During 2002, the fund encountered significant adverse experience and medical cost increases, with
the result that the fund experienced an operating loss of $987,641. Retained earnings at yeal'-end were a deficit
of $44,090, while budgetary basis unreserved fund balance was a positive $396,031. Premiums were increased
in February, 2003 in an amount designed restore the solvency of the fund.
The City provides workers compensation through a partially self-insured program. The Worker's Compensation
Reserve is used to buy excess insurance coverage, compensate a third party claims administrator and pay claims
as they arise. The City's goal is to establish a $750,000 reserve in this fund to provide adequate reserves should
we experience heavy claims. At the end of 2002, budgetary basis fund balance, including the claims reserve,
totaled $848,771, meeting this goal. Retained earnings were $718,148.
The Risk Management Fund is used to pay premiums for liability and casualty coverage for the City. Costs are
recovered through charges to operational funds, investment income, and restitution for damages. Operating
income for the fund was $17,062. Budgetary fund balance was $193,423, well in excess of targets.
The Information Services fund provides for joint operation of computer systems with Saline County. Costs are
apportioned to City Departments and Saline County based upon usage. Operating income for 2002 was
$355,373. Budgetary base fund balance at 12/31/2002 was $734,062, well above target levels.
Central Garage provides fleet maintenance to City Vehicles, and to some Saline County vehicles. Costs are
recovered through use charges to participating Departments. The fund experienced an operating loss of $51 ,892
in 2002. This was recovered through transfers from the City General and Water and Sewer Fund. Budgetary
basis fund balance at 12/31/2002 was $209,153.
Debt Administration
The City refinanced several outstanding revenue bonds during 2002. In February, $2,045,000 in General
Obligation refunding bonds were issued to refinance $2,295,000 in outstanding 1993 Revenue Bonds. This issue
resulted in an economic gain of $93,218, and future debt service savings of $534,167. These General Obligation
bonds are to be retired with utility revenue proceeds.
In August, $6,790,000 in Revenue Refunding bonds were issued to advance refund $6,790,000 of the
$10,690,000 outstanding 1994 Revenue bonds. The balance of the 1994 bonds was retired with available
resources remaining in construction and reserve funds. The transaction resulted in an economic gain of
$800,920 and future debt service savings of $1,580,963. The total amount of revenue bonds outstanding at
December 31,2002 was $6,790,000. The final maturity for these bonds is September 1,2012.
The City's general policy for General Obligation bonds is to issue them for no more than 10 years for the City at
large portion, with some exceptions permitted for extraordinary projects. On special assessment bonds, the
maturity may be up to 15 years. The City issued $1,980,000 of internal improvement bonds during 2002. Total
General Obligation/lnternallmprovement bonds outstanding at December 31, 2002 was $24,915,942 with final
maturity scheduled for October 1, 2017. Of this amount, $11,369,854 are to be retired with pledged utility
revenues, special assessments, and current resources in the Bond and Interest fund. Thus, $13,546,088 remain
to be retired with future property tax revenues. Based upon this, per capita general obligation debt is $296.23.
The City is well below its maximum debt limit with $80,149,221 in authority remaining.
Internal Improvement temporary notes in the amount of $4,865,000 were issued in 2002. Projects included street
and drainage improvements, and water and sewer extensions, as well as preliminary design for the North Ohio
grade separation project. These notes will be rolled to long term Bonds in 2003, which will ultimately be retired
with a combination of general taxes, special assessments and utility revenues.
Cash ManaQement
The State of Kansas prescribes general investment authority for political subdivisions of the, State. The City of
VlIl
Salina has established an investment policy that complies with statutory authority, allowing maturities for up to
two years and investments in the State of Kansas Municipal Investment Pool. The City stresses a conservative
investment policy which provides full collateralization of investments. At December 31, 2002, investments under
the City's direct control were as follows:
Investment Amount Percentaqe
Municipal Investment Pool $ 4,887,855 57.7
U,S. Government 6,012,553 42.3
Total $ 10900408 100.00%
In addition, the carrying amount of deposits was $17,385,959 plus $14,363 cash on hand,
Independent Audit
Kansas Statutes Annotated 75-1122 requires an annual audit of the books of account, financial records and
transactions of all administrative departments of the City by independent certified public accountants selected
by the City Commission. This requirement has been complied with and the auditor's opinion has been included
in this report.
Acknowled~ments
The preparation of the Comprehensive Annual Financial Report was made possible by the dedicated,
professional advice and effort of the Lowenthal, Singleton, Webb, and Wilson auditing tealTl. A special thank
you needs to be given to Valerie Gebhardt, City Accountant, who is responsible for much of the data assembly
and reconciliation, and to Penny Day, Account Clerk III, who has been largely responsible for document assembly
and production. Finally, preparation of this report would not have been possible without the support of the City
Commission.
Sincerely,
~Æ~'
D . M K' .~
ennls . Issmger
City Manager
~
Rodney ~ ~
Director 1:ï~anU Administration
IX
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Certifica te of
Achievem.en t
for Excellence
in Financial
Reporting
Presented to
Ci ty of Salina,
Kansas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2001
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
~&./~ ..
President
~/~
Executive Director
Development Services
Coordination
Building Services
~
Planning & Development
Dean Andrew
Risk Management
Human Resources
Administration
Fire Suppression
EMS
Codes/Inspection
Public Education
Operations
Food & Beverage
Business/Ticket Office
(l"w,4/03)
CITY COMMISSION
Alan E. Jilka, Mayor
Deborah P. Divine
Donnie D. Marrs
Monte D. Shadwick
Paul G. Webb
Deputy City Manager
Michael Morgan
Assistant City Manager
Jason Gage
Engineering
Design/Inspection
Traffic
General Services
Streets
Flood Works
Traffic Control
Central Garage
Sanitation
City Clerk
Accounting
Utility Accounting
Treasurer
* Contract Position
Municipal Court Judge
Robert Thompson
City Attorney
Greg Bengtson *
Municipal Court
Administration
City Prosecutor
Jennifer Wyatt
Computer Technology
Jack Rolfs
Human Relations
Kaye Crawford
Water & Wastewater
Water Treatment & Dist.
Wastewater Collect/Treat.
Solid Waste (Landfill)
Museum
Arts Education
Arts Services
River Festival
Horizons Grants Program
Community Art & Design
Patrol
Investigations
91l!Communications
Internal Affairs
Swimming Pools
Golf Course
Neighborhood Centers
Parks
Recreation
Forestry
Cemetery
Building Maintenance
City of Salina, Kansas
List of Principal Officials
City Commission
Alan Jilka, Mayor
Monte Shadwick, Vice-Mayor
Deborah Divine, Commissioner
Donnie Marrs, Commissioner
Paul Webb, Commissioner
City Staff
Dennis M. Kissinger, City Manager
Michael Morgan, Deputy City Manager
Jason Gage, Assistant City Manager
Rodney Franz, Director of Finance and Administration
Don Hoff, Director of Utilities
Jim Hill, Chief of Police
Darrell Eastin, Fire Chief
Shawn O'Leary, Director of Engineering and General Services
Keith Rawlings, Bicentennial Center Manager
Steve Snyder, Parks and Recreation Director
Dean Andrew, Planning & Community Development Director
Barbara Koostra, Director of Arts and Humanities
Kaye Crawford, Human Relations Director
Greg Bengtson, City Attorney
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FINANCIAL SECTION
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LOWENTHAL SINGLETON WEBB & WILSON
PROFESSIONAL ASSOCIATION
David A. Lowenthal, CPA
Thomas E. Singleton, CPA
Patricia 1. Webb, CPA
Thomas G. Wilson, CPA
CERTIFIED PUBLIC ACCOUNTANTS
900 Massachusetts, Suite 301
Lawrence, Kansas 66044-2868
Phone: (785) 749-5050
Fax: (785) 749-5061
E-mail: Iswwcpa@lswwcpa.com
Kennl:th R. Hite, CPA
Mary A. LeGresley, CPA
Audn:y M. Odennann, CPA
Members of American Institute
and Kansas Society of
Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT ON THE GENERAL PURPOSE FINANCIAL STATEMENTS
Mayor and City Commission
City of Salina, Kansas
We have audited the accompanying general purpose financial statements of City of Salina, Kansas, (the City) as of
and for the year ended December 31, 2002 as listed in the table of contents. These general purpose financial
statements are the responsibility of the City of Salina's management. Our responsibility is to express an opinion on
these financial statements based on our audit. We did not audit the financial statements of the Salina Airport
Authority which statements reflect total assets of $29,402,373 as of December 31, 2002 and total revenues of
$1,387,079 for the year then ended, and the Housing Authority of the City of Salina which statements reflect total
assets of $7,130,073 as of December 31, 2002 and total revenues of $1,273,882 for the year then ended, which are
discretely presented component units in the accompanying financial statements. Those financial statements were
audited by other auditors whose reports thereon have been furnished to us, and our opinion, insofar as it relates to
the amounts included for the Salina Airport Authority and the Housing Authority of the City of Salina, is based solely
on the reports of the other auditors.
We conducted our audit in accordance with auditing standards generally accepted in the UnitE~d States of America
and the standards applicable to financial audits contained in "Government Auditing Standards," issued by the
Comptroller General of the United States and the "Kansas Municipal Audit Guide." Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement presentation. We
believe that our audit and the reports of other auditors provide a reasonable basis for our opinion.
In our opinion, based on our audit and the reports of other auditors, the general purpose financial statements
referred to above present fairly, in all material respects, the financial position of City of Salina, Kansas, as of
December 31, 2002, and the result of its operations and the cash flows of its proprietary fund types and
nonexpendable trust funds for the year then ended, in conformity with accounting principles £Ienerally accepted in
the United States of America.
In accordance with "Government Auditing Standards," we have also issued our report dated May 14, 2003, on our
consideration of City of Salina, Kansas's internal control over financial reporting and our tests of its compliance with
certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in
accordance with "Government Auditing Standards" and should be read in conjunction with this report in considering
the results of our audit.
Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the
City of Salina, Kansas, taken as a whole. The combining, individual fund, and account group financial statements
and schedules and additional information as listed in the table of contents are presented for plJrpOSes of additional
analysis and are not a required part of the general purpose financial statements of the City of Salina, Kansas.
These additional financial statements, schedules and information have been subjected to the auditing procedures
applied in the audit of general purpose financial statements and in our opinion, is fairly stated, in all material
respects, in relation to the general purpose financial statements taken as a whole.
1
Mayor and City Commission
City of Salina, Kansas
Page 2
We did not audit the data included in the introductory and statistical sections of this report and therefore, we express
no opinion thereon.
d~1 ~~¡ ~ ~w;J
Professional Association
May 14, 2003
2
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Statement 1
1 of2
CITY OF SALINA, KANSAS
COMBINED BALANCE SHEET -
ALL FUND TYPES, ACCOUNT GROUPS AND
DISCRETELY PRESENTED COMPONENT UNITS
December 31,2002
Proprietary
Governmental Fund Types Fund Types
Special Debt Capital Internal
General Revenue Service Projects Entørprise Service
ASSETS AND OTHER DEBITS
ASSETS
Cash and investments $ 6,341 ,230 $2,925,721 $ 983,414 $628,791 $12,:~76,482 $2,502,910
Investments - component unit
Cash with fiscal agent 85,269
Receivables (net of allowance
for doubtful accounts)
Accounts 952,405 36,763 867,777
Taxes 2,352,889 4,073,304 1,747,696
Notes 28,016
Grants 17,995
Interest 106,991 33,674 16,616 15,729 :~27,563 42,289
Mortgage
Due from other funds
Due from others
Inventory and prepaid supplies 88,299 452,436 62,536
Restricted assets
Cash and investments 1,099,224
Fixed assets (net of accumulated
depreciation where applicable) 57,1>54,060 264,894
Financing leases
Deferred charges 432,736
OTHER DEBITS
Amount available in debt service funds
Amount to be provided for retirement
of general long-term debt --
Total assets and other debits $ 9,859,809 $ 7,097,478 $ 2,832,995 $644,520 $ 73,010,278 $2,872,629
Fiduciary Total Component Total
Fund Types Account Groups Primary Units Reporting
General General Government Salina Salina Entity
Trust and Fixed Long- (Memoran- Housing Airport (Mernoran-
Aaencv Assets Term Debt dum Only) Authoritv Authoritv dum ...Q.o.!y}
$ 1,442,958 $ - $ - $ 27,201,506 $ 445,503 $ 3,386,102 $ 31,033,111
347,836 347,836
85,269 85,269
1,856,945 3,851 80,591 1,941,387
8,173,889 977,990 9,151,879
28,016 28,016
17,995 17,995
7,922 450,784 88 450,872
34,119 34,119
21,365 21,365
96,158 96,158
603,271 27,506 4,315 1535,092
1,099,224 41,475 85,000 1,225,699
34,126,568 91,945,522 6,112,172 23,700,563 121,758,257
1,050,764
432,736 117,048 549,784
1,000,030 1,000,030 1,000,030
23,774,880 23,774,880 23,774,880
$ 1,450,880 $ 34,126,568 $ 24,774,910 $156,670,067 $ 7,130,073 $ 29,402,373 $193,:202,513
The notes to the financial statements are an integral part of this financial statement
3
Statement 1
1 of 2
Statement 1
2 of2
LIABILITIES, EQUITY AND OTHER CREDITS
LIABILITIES
Accounts payable
Retainage payable
Deposits payable
Accrued claims payable
Payable from restricted assets
Accrued interest payable
Revenue bonds payable - current
Deferred interest-financing leases
General obligation bonds - current
Loans payable - current
Loans payable
Revenue bonds payable
Special assessment debt - current
Special assessment debt
Temporary notes payable
Accrued compensated absences
Matured bonds and interest payable
Due to other funds
Due to others
Accrued landfill postclosure care costs
General obligation bonds payable
Deferred revenue
Total liabilities
EQUITY AND OTHER CREDITS
Investment in general fixed assets
Contributed capital
Retained earnings
Reserved for bond retirement
Reserved for postclosure care
Unreserved
Fund balances
Reserved for encumbrances
Reserved for notes receivable
Unreserved
Designated for debt service
Undesignated
Total equity and other credits
Total liabilities, equity and other credits
CITY OF SALINA, KANSAS
COMBINED BALANCE SHEET -
ALL FUND TYPES, ACCOUNT GROUPS AND
DISCRETELY PRESENTED COMPONENT UNITS
December 31, 2002
Governmental Fund Types
General
Special
Revenue
Capital
Projects
Debt
Service
$ 489,010 $ 112,617 $
20,769
Proprietary
Fund Types
Ent,erprise
Internal
Service
- $ - $ 399,135 $ 102,570
149,873 222,908
99,113
592,217
224,620
575,000
1.039,520
211,427
7.362,829
6.215,000
580,631 38,026
85,269
1,164,833
6,148,233
2,352,889 3,539,664 1,747,696
2,841,899 3,673,050 1,832,965 149,873 24,243,249 732,813
9,851,503 644,265
1,114,957
336,423
37,464,146 1,495,551
437,406 377,950 1,733,872
28,016
1,000,030
6,580,504 3,018,462 [1,239,225]
7,017,910 3,424,428 1,000,030 494,647 48,767,029 2,139,816
$ 9,859,809 $ 7,097,478 $ 2,832,995 $ 644,520 $ 73,010,278 $ 2,872,629
Fiduciary Total Component Total
Fund Types Account Groups Primary Units Reporting
General General Government Salina Salina Entity
Trust and Fixed Long- (Memo ran- Housing Airport (Memoran-
Aoencv Assets Term Debt dum Only) Authority Authority dum Orl!ïl
$ 1,091,183 $ - $ - $ 2,194,515 $ 57,296 $ 184,569 $ 2,436,380
393,550 393,550
99,113 30,140 129,253
592,217 592,217
224,620 105,752 330,372
575,000 70,000 645,000
11,336 56,953 68,289
2,344,754 3,384,274 895,000 4,279,274
211,427 51,990 263,417
7,362,829 218,630 7,581,459
6,215,000 245,000 6,460,000
29,758 29,758
506,805 506,805
4,865,000 4,865,000 4,865,000
2,181,721 2,800,378 11,828 2,812,206
85,269 85,269
21,365 21,365
25,839 25,839
1,164,833 1,164,833
15,383,435 21,531,668 6,265,000 27,796,668
7,640,249 1,747 1,014,443 8,656,439
1,091,183 24,774,910 59,339,942 159,551 9,643,900 69,143,393
34,126,568 34,126,568 34,126,568
10,495,768 5,330,767 8,488,854 24,315,389
1,114,957 1,114,957
336,423 336,423
359,697 39,319,394 1,639,755 11,269,619 52,228,768
2,549,228 2,549,228
28,016 28,016
1,000,030 1,000,030
8,359,741 8,359,741
359,697 34,126,568 97,330,125 6,970,522 19,758,473 124,059,120
$ 1,450,880 $ 34,126,568 $ 24,774,910 $ 156,670,067 $ 7,130,073 $ 29,402,373 $193,202,513
The notes to the financial statements are an integral part of this financial statement.
4
Statement 1
2 of2
Statement 2
1of2
CITY OF SALINA, KANSAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
ALL GOVERNMENTAL FUND TYPES, EXPENDABLE TRUST FUNDS
AND DISCRETELY PRESENTED COMPONENT UNITS
For the fiscal year ended December 31, 2002
Fiduciary Total
Governmental Fund Types Fund-~ Primary
Government
Special Debt Capital Expendable (Memoran-
General Revenue Service Proiects Trust dum Onlv)
Revenues
Taxes $17,177,266 $4,354,723 $1,856,810 $ $ $ 23,388,799
Special assessments 1,288,961 9,297 1,298,258
Intergovernmental 1,461,340 2,140,203 3,601,543
Fees and charges 1,490,657 637,247 2,127,904
Miscellaneous revenues 3,131,242 1,046,507 116,261 40,085 ---,-,:1,193 4,335,288
Total revenues 23,260,505 8,178,680 3,262,032 49,382 ---,-,:1,193 34,751,792
Expenditures
Current
General government 1,935,757 186,732 2,122,489
Public safety 9,924,484 2,045,094 11,969,578
Public works 3,952,243 1,163,708 5,115,951
Culture and recreation 1,860,573 2,434,624 1'1,779 4,306,976
Public health and sanitation 722,897 148,663 871,560
Community development 3,432,778 753,774 4,186,552
Capital outlay 1,820,570 1,653,344 4,666,144 8,140,058
Debt service
Principal 90,000 2,277,322 2,367,322
Interest and other charges 4,250 941,324 5,485 -- 951,059
Total expenditures 23,649,302 8,480,189 3,218,646 4,671,629 ---1.:1,779 40,031,545
Excess [deficiency] of revenues
over [under] expenditures $ [388,797] $ [301,509] $ 43,386 $ [4,622,247] Ll1.!),586] $ [5,279,753]
The notes to the financial statements are an integral part of this financial statement.
5
Statement 2
2 of2
CITY OF SALINA, KANSAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
ALL GOVERNMENTAL FUND TYPES, EXPENDABLE TRUST FUNDS
AND DISCRETELY PRESENTED COMPONENT UNITS
For the fiscal year ended December 31, 2002
Fiduciary Total
Governmental Fund Types Fund .~ Primary
Government
Special Debt Capital Expendable (Memoran-
General Revenue Service Proiects Trug dum Only)
Other financing sources [uses]
Operating transfers in $ 91,772 $ 507,091 $ - $ $ $ 598,863
Operating transfers out [262,500] [398,863] [661,363]
Bond proceeds - 5,893,326 5,893,326
Sale of assets 61,468 -- 61,468
Total other financing sources [uses] [109,260] 108,228 - 5,893,326 5,892,294
--
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses] [498,057] [193,281] 43,386 1,271,079 [10,586] 612,541
Fund balances, January 1 7,471,125 3,644,071 956,644 [776,432] 44,469 11,339,877
Residual equity transfer in 44,842 44,842
Residual equity transfer [out] [26,362] -- [26,362]
Fund balances, December 31 $7,017,910 $ 3,424,428 $1,000,030 $ 494,647 $ 33,883 $11,970,898
The notes to the financial statements are an integral part of this financial statement.
6
Statement 3
1 of 2
CITY OF SALINA, KANSAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
ACTUAL AND BUDGET - GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUNDS
For the fiscal year ended December 31, 2002
General Fund
Variance
Positive
Actual Budqet fNeqativel
$ 17,177,266 $ 17,137,~153 $ 39,313
1,435,447 1,706,429 [270,982]
1,480,047 1,434,000 46,047
2,906,797 2,733,825 172,972
22,999,557 23,012,207 [12,650]
Revenues
Taxes
I ntergovern mental
Fees and charges
Miscellaneous revenues
Total revenues
Expenditures
Current
General government
Public safety
Public works
Public health and sanitation
Culture and recreation
Community development
Health Insurance
Capital outlay
Debt service
Principal
Interest and other charges
Cash reserve
1,878,114 2,081,~112 203,198
9,853,971 9,575,168 [278,803]
3,902,283 3,864,~127 [37,956]
720,964 732,E¡23 11,659
1,835,118 1,818,~162 [16,756]
3,483,951 3,439,E¡56 [44,295]
1,669,566 2,028,099 358,533
4,293,~~28
4,293,328
Total expenditures
23,343,967
27,832,El75
4,488,908
Excess [deficiency] of revenues
over [under] expenditures
[344,410] [4,820,E~ 4,476,258
91,772 17,000 74,772
[262,500] [262,~¡00]
61,468 45,000 16,468
[109,260] [200,~~ 91,240
Other financing sources [uses]
Operating transfers in
Operating transfers out
Sale of assets
Total other financing sources [uses]
Budgeted Special Revenue Funds Debt Service Fund
Variance Variance
Positive Positive
Actual Budqet rNeQativel Actual BudQet rNeQative]
$ 4,352,873 $ 4,382,865 $ [29,992] $ 1,856,811 $ 1,890,600 $ [33,789]
1,977,477 1,841,432 136,045
905,648 915,000 [9,352]
58,033 290,131 [232,098] 1,400,039 1,300,000 100,039
7,294,031 7,429,428 [135,397] 3,256,850 3,190,600 66,250
175,715 188,240 12,525
2,045,094 2,130,602 85,508
637,156 628,014 [9,142]
148,663 156,754 8,091
2,046,318 2,058,815 12,497
726,804 753,800 26,996
8,794 10,000 1,206
1,652,551 1,851,450 198,899
90,000 90,000 2,277,322 2,287,329 [10,007]
4,250 8,200 3,950 941,324 928,961 12,363
1,476,258 1,476,258 758,665 [758,6~
7,535,345 9,352,133 1,816,788 3,218,646 3,974,955 756,309
[241,314] [1,922,705] 1,681,391 38,204 [784,355] 822,559
507,091 310,000 197,091
[307,091] [310,000] 2,909
200,000 200,000
The notes to the financial statements are an integral part of this financial statement.
7
Statement 3
1 of 2
Statement 3
2 of2
CITY OF SALINA, KANSAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-
ACTUAL AND BUDGET - GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUNDS
For the fiscal year ended December 31,2002
General Fund
Actual
Budqet
Variance
Positive
rNeQativel
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]
Interest receivable
Accounts receivable
Taxes receivable
Grants receivable
Inventory reconciliation
Retainage
Current year encumbrances
Non-budgeted funds
$ [453,670] $ [5,021,168] $ 4,567,498
5,816,308 5,021,168 795,140
7,334 7,334
44,842 44,842
5,414,814 $ - $ 5,414,814
106,991
952,405
17,995
88,299
437,406
Unreserved fund balances, January 1
Prior year cancelled encumbrances
Residual equity transfer in
Residual equity transfer [out]
Unreserved fund balances, December 31
Fund Balance, December 31
$ 7,017,910
Budgeted Special Revenue Funds
Variance
Positive
Actual Budqet rNeqativel
Debt Service Fund
Actual
Budqet
Variance
Positive
rNeqativel
$ [41,314] $ [1,922,705] $ 1,881,391 $ 38,204 $ [784,355] $ 822,5t¡9
2,157,573 1,922,705 234,868 945,210 784,355 160,8t¡5
18,988 18,988
[26,362] [26,362]
2,108,885 $ - $ 2,108,885 983,414 $ - $ 983,41:4
29,082 16,616
36,763
533,640
[20,769]
377,950
358,877
$ 3,424,428 $ 1,000,030
The notes to the financial statements are an integral part of this financial statement.
8
Statement 3
2 of2
Increase [decrease] in retained earnings - component unit 1 ,252.491 [609,990] 19.497
Retained earnings, January 1 38,077,726 2,07'7,681 306,317
Prior period adjustment [396,211] 2'7,860
Retained earnings, Restated January 1 37,681,515 2,10:5,541 306,317
Residual equity transfer in 3,663,545
Residual equity transfer out [3,682,025]
Retained earnings, December 31 $ 38,915,526 $ 1.49:5,551 $ 325,814
Statement 4
CITY OF SALINA, KANSAS
COMBINED STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS
ALL PROPRIETARY FUND TYPES, SIMILAR TRUST FUNDS AND
DISCRETELY PRESENTED COMPONENT UNITS
For the fiscal year ended December 31,2002
Proprietary Fund Types
Enterprise
Internal
Service
Operating revenues
Charges for services
Reimbursements
Gain on sale of assets
Miscellaneous
Total operating revenues
$ 17,209,872 $ 5,755,360 $
777,766 251.465
163,637 3,681
18,151,275 6,010,506
6,746,610
12,046,796
771,815
3,346,147 85,854
16,164,758 6,832.464
1,986,517 [821,958]
444,256 91,955
[982,077]
[4,987]
[133,705]
[671,526] 86,968
1,314,991 [734,990]
2,564,181 125,000
[2,626,681]
[62,500] 125,000
1,252.491 [609,990]
Operating expenses
General government
Public works
Recreation
Depreciation
Other
Total operating expenses
Operating income [loss]
Nonoperating revenues [expensesl
Use of money and property
Operating grants
Debt service
Interest on lease obligations
Gain [loss] on disposition of fixed assets
Total nonoperating revenues [expenses]
Net income [loss] before operating transfers
Operating transfers
Transfers in
Transfers [out]
Total operating transfers
Net income [loss]
Depreciation on fixed assets acquired by contributions - component unit
Fiduciary
Fund Type
Non-
expendable
Trust
7,788
7,788
35
35
7,753
11,744
11,744
19.497
19.497
Total Component Total
Primary Unit Reporting
Government Salina Salina Entity
(Memoran- Housing Airport (Memoran-
dum Only) Authority Authority dum Only)
$ 22,973,020 $ 1,252,527 $ 1,318,451 $ 25,543,998
1,029,231 1,029,231
29,455 29,455
167,318 21,355 39,173 227,846
24,169,569 1,273,882 1,387,079 26,830,530
6,746,610 6,746,610
12,046,796 12,046,796
771,815 771,815
3,432,001 169,226 974,140 4,575,367
35 1,504,512 1,182,264 2,686,811
22,997,257 1,673,738 2,156,404 26,827,399
1,172,312 [399,856] [769,325] 3,131
547,955 24,866 147,763 720,584
544,894 544,894
[982,077] [982,077]
[4,987] [319,167] [324,154]
[133,705] 56,263 817,499 740,057
[572,814] 626,023 646,095 699,304
599,498 226,167 [123,230] 702,435
2,689,181 2,689,181
[2,626,681] [2,626,681]
62,500 62,500
661,998 226,167 [123,230] 764,935
157,889 582,523 740,412
661,998 384,056 459,293 1,505,347
40,461,724 1,256,909 10,810,326 52,528,959
[368,351] [1,210] [369,561]
40,093,373 1,255,699 10,810,326 52,159,398
3,663,545 3,663,545
[3,682,025] [3,682,025]
$ 40,736,891 $ 1,639,755 $ 11,269,619 $ 53,646,265
The notes to the financial statements are an integral part of this financial statement.
9
Statement 4
Statement 5
1 of 2
CITY OF SALINA, KANSAS
COMBINED STATEMENT OF CASH FLOWS-
ALL PROPRIETARY FUND TYPES, SIMILAR TRUST FUNDS AND
DISCRETELY PRESENTED COMPONENT UNITS
For the fiscal year ended December 31, 2002
Fiduciary
Proprietary Fund Types Fund Type
Non-
Internal expendable
Enterprise Service Trust
Cash flows from operating activities
Cash received from customers and users $ 18,037,493 $ 5,817,353 $ 7,788
Cash received from quasi-external transactions 41,394 189,4"72
Cash paid to employees for services [4,778,623] [591,583]
Cash paid to other suppliers of goods or services [6,916,799] [5,952,591] [35]
Cash paid for quasi-external transactions [761,351] [49,247]
Other operating receipts 163,637 3,681
Net cash provided by [used in] operating activities 5,785,751 [582,9~ 7,753
Cash flows from capital and related financing activities
Purchase and construction of fixed assets [3,895,329] [10,237]
Contributed capital 1,038,869 796
Costs from issuance of debt [94,011]
Proceeds from grants
Proceeds from taxes
Proceeds from issuance of debt 3,887,353
Proceeds from financing lease
Principal payments - temporary notes [935,000]
Principal payments - loans [124,415]
Principal payments - general obligation bonds [947,608]
Principal payments - revenue bonds [4,882,400]
Principal payments - capital leases [33,354] [98,743]
I nterest paid [1,084,712] [4,9,~
Net cash used in capital and related financing activities [7,070,607] [113, 1'Q]
Cash flows from investing activities
Interest received 397,449 85,8'13 9,993
Cash flows from noncapital financing activities
Residual equity transfers in 3,663,545
Residual equity transfers out [3,682,025]
Operating grant receipts
Operating transfers in 2,564,181 125,000
Operating transfers out [2,626,681]
Net cash provided by [used in] noncapital financing activities [80,980] 125,000
Net increase [decrease] in cash and cash equivalents [968,387] [485,2"73] 17,746
Cash and cash equivalents, January 1 14,444,093 2,988,183 302,655
Cash and cash equivalents, December 31 $ 13,475,706 $ 2,502,9'10 $ 320,401
Total Component Total
Primary Unit Reporting
Government Salina Salina Entity
(Memoran- Housing Airport (Memoran-
dum Only) Authority Authority dum Only)
$ 23,862,634 $ 1,157,253 $ 1,503,652 $ 26,523,539
230,866 230,866
[5,370,206] [450,013] [5,820,219]
[12,869,425] [1,450,334] [748,272] [15,068,031]
[810,598] [810,598]
167,318 6,590 173,908
5,210,589 [286,491] 305,367 5,229,465
[3,905,566] [40,278] [2,195,324] [6,141,168]
1,039,665 1,039,665
[94,011] [26,119] [120,130]
144,005 144,005
817,499 817,499
3,887,353 3,200,235 7,087,588
189,446 189,446
[935,000] [935,000]
[124,415] [694,761] [819,176]
[947,608] [947,608]
[4,882,400] [4,882,400]
[132,097] [132,097]
[1,089,699] [262,795] [1,352,494]
[7,183,778] [40,278] 1,172,186 [6,051,870]
493,255 10,583 30,921 534,759
3,663,545 3,663,545
[3,682,025] [3,682,025]
253,096 253,096
2,689,181 2,689,181
[2,626,681] [2,626,681]
44,020 253,096 297,116
[1,435,914] [63,090] 1,508,474 9,470
17,734,931 550,068 1,962,628 20,247,627
$ 16,299,017 $ 486,978 $ 3,471,102 $ 20,257,097
The notes to the financial statements are an integral part of this financial statement.
10
Statement 5
1 of 2
Statement 5
2 of2
CITY OF SALINA, KANSAS
COMBINED STATEMENT OF CASH FLOWS-
ALL PROPRIETARY FUND TYPES, SIMILAR TRUST FUNDS AND
DISCRETELY PRESENTED COMPONENT UNITS
For the fiscal year ended December 31,2002
Cash and investments
Restricted cash and investments
Total cash and cash equivalents
Reconciliation of operating [loss] income to net cash
provided by [used in] operating activities
Operating income [loss]
Adjustments to reconcile operating income [loss] to net cash
provided by [used in] operating activities
Depreciation expense
Basis of assets sold
[Increase] decrease in accounts receivable
[Increase] decrease in inventory and prepaid supplies
[Increase] decrease in due from other governments
Increase [decrease] in accounts payable
Increase [decrease] in retainage payable
Increase [decrease] in accrued compensated absences
Increase [decrease] in deposits payable
Increase [decrease] in claims payable
Increase [decrease] in due to other governments
Increase [decrease] in deferred income
Increase [decrease] in accrued landfill closure and
postclosure care costs
Net cash provided by [used in] operating activities
Proprietary Fund Types
Enterprise
Internal
Service
$ 12,376,482 $ 2,502,910
1,099,224
$ 13,475,706 $ 2,502,910
$ 1,986,517 $
[821,958] $
3,346,147 85,854
91,249
15,058 [22,197]
148,786 32,451
40,403
55,870 [5,776]
4,754
148,711
96,967
$ 5,785,751 $
[582,9~
Fiduciary
Fund Type
Non-
expendable
Trust
$
320,401
$
320,401
7,753
$
7,753
Total Component Total
Primary Unit Reporting
Government Salina Salina Entity
(Memoran- Housing Airport (Memoran-
dum Only) Authority Authority dum Only)
$ 15,199,793 $ 445,503 $ 3,386,102 $ 19,031,398
1,099,224 41,475 85,000 1,225,699
$ 16,299,017 $ 486,978 $ 3,471,102 $ 20,257,097
$ 1,172,312 $
[399,856] $
[769,325] $
3,131
3,432,001 169,226 974,140 4,575,367
83,048 83,048
91,249 [3,251] 17,358 105,356
[7,139] 1,348 489 [5,302]
[3,962] [3,962]
181,237 53,394 [16,510] 218,121
40,403 40,403
50,094 [26,403] 23,691
4,754 6,590 11,344
148,711 148,711
[6,963] [6,963]
[76,614] 16,167 [60,447]
96,967 96,967
$ 5,210,589 $ [286,491] $ 305,367 $ 5,229,465
The notes to the financial statements are an integral part of this financial statement.
11
Statement 5
2 of2
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A Reporting Entity
The City of Salina, Kansas (the City) is a municipal corporation governed by a mayor and a five member
commission. These financial statements present the City and its component units, Emtities for which the
government is considered to be financially accountable. Each discretely presented component unit is
reported in a separate column in the combined financial statement to emphasize that it is legally separated
from the government.
Discretely Presented Component Units
City of Salina Airport Authority - The Salina Airport Authority was created for the purpose of accepting as
surplus property portions of the former Schilling AF.B that was closed by the United States Department of
Defense in June, 1965. One of the primary functions of the Airport Authority is to facilitate the continued
growth of jobs and payroll at the Airport Industrial Center. The Airport Authority is manaHed and controlled by
a five-member Board of Directors appointed by the Salina City Commission. Any director may be removed
by a majority vote of the Salina City Commission. The Airport Authority's basic milll levy (up to 3 mills)
requires the approval of the City Commission. The Commission must also approve the issuance of general
obligation debt by the Airport Authority. The Airport Authority is reported as an enterprise fund. The Airport
Authority has a December 31 fiscal year end.
Housing Authority of the City of Salina - The purpose of the Housing Authority of the City of Salina (Housing
Authority) is to administer Public Housing Programs authorized by the United States Housing Act of 1937.
The Mayor of the City of Salina appoints the governing board. The City Commission may remove
commissioners of the Housing Authority. The City must issue revenue bonds for the Housing Authority. The
financial liability of the Housing Authority is essentially supported by the operating and debt service subsidies
received under contract from the Federal government. The Housing Authority is reported as a proprietary
fund type. The Housing Authority has a June 30 fiscal year end. Information in the accompanying financial
statements covers the fiscal year ended June 30, 2002.
Complete financial statements for each of the individual component units may be obtained at the entity's
administrative offices.
Salina Airport Authority
3237 Arnold Ave.
Salina, KS
Housing Authority of
the City of Salina
469 S. 5th
Salina, KS
Joint Ventures
The City of Salina also participates with Saline County in two joint ventures. The Salina-Saline County Board
of Health was organized by the City and County to promote public health. The City and County organized
the Salina County-City Building Authority to acquire, operate and maintain facilities for the administrative
offices of both governments. The primary governments each have an ongoing financial responsibility for the
joint ventures. Separate financial statements are available from the governing boards of each joint venture.
Total fund balance, December 31, 2002
Total revenues, year ended December 31,2002
Total revenues from City of Salina
Board of
Health
(Unaudited)
$ 297,343
2,983,958
626,758
Building
Authority
(Audit~
$ 2,487,738
812,779
750,636
12
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
B. Measurement Focus, Basis of Accounting and Basis of Presentation
The accounts of the City are organized and operated on the basis of funds and account groups. A fund is an
independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates
funds according to their intended purpose and is used to aid management in demonstrating compliance with
finance-related legal and contractual provisions. The minimum number of funds are maintained consistent
with legal and managerial requirements. Account groups are a reporting device to account for certain assets
and liabilities of the governmental funds not recorded directly in those funds.
The City has the following fund types and account groups:
Governmental Funds are used to account for the City's general government activities. Governmental fund
types use the flow of current financial resources measurement focus and the modified accrual basis of
accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to
accrual (Le., when they are "measurable and available"). "Measurable" means the amount of the transaction
can be determined and "available" means collectible within the current period. The City considers all
revenues available if they can be collected soon enough after year end to pay current year expenditures.
Expenditures are recorded when the related fund liability is incurred, except for unmatured principal and
interest on general long-term debt which is recognized when due, and certain compensated absences and
claims and judgments which are recognized when the obligations are expected to be liquidated with
expendable available financial resources.
Property taxes, interest and special assessments are susceptible to accrual. Other receipts and taxes
become measurable and available when cash is received by the government and are recognized as revenue
at that time.
Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual
criteria are met. Expenditure-driven grants are recognized as revenue when the qualifying expenditures have
been incurred and all other grant requirements have been met.
The City reports deferred revenue on its combined balance sheet. Deferred revenues arise when a potential
revenue does not meet both the "measurable" and "available" criteria for recognition in the current period.
Deferred revenues also arise when the City receives resources before it has a legal claim to them, as when
grant monies are received prior to incurring qualifying expenditures. In subsequent periods, when both
revenue recognition criteria are met, or when the City has a legal claim to the resources, the liability for
deferred revenue is removed from the combined balance sheet and revenue is recognizHd.
Governmental funds include the following fund types:
The general fund is the City's primary operating fund. It accounts for all financial resources of the
general government, except those required to be accounted for in another fund.
The special revenue funds account for revenue sources that are legally restricted to expenditure for
specific purposes (not including expendable trusts or major capital projects).
The debt service fund accounts for the servicing of general long-term debt not being financed by
proprietary or nonexpendable trust funds.
The capital projects funds account for the acquisition of fixed assets or the construction of major
capital projects not being financed by the proprietary or nonexpendable trust funds.
13
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
B. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
Proprietary Funds are accounted for on the flow of economic resources measurement focus and use the
accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are
recorded at the time liabilities are incurred. The City applies all applicable Governmental Accounting
Standards Board (GASB) pronouncements as well as the following pronouncements issued on or before
November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements: FASB
Statements and Interpretations, APB Opinions and ARBs. Proprietary funds include the jfollowing fund type:
Enterprise funds are used to account for those operations that are financed and operated in a
manner similar to private business or where the City has decided that the determination of revenues
earned, costs incurred and/or net income is necessary for management accountability.
Internal service funds account for operations that provide services to other departments or agencies
of the government, or to other governments, on a cost-reimbursement basis.
Fiduciary Funds account for assets held by the City in a trustee capacity or as an agent on behalf of others.
Trust funds account for assets held by the City under the terms of a formal trust agreement. Fiduciary funds
include the following fund types:
The expendable trust fund is accounted for in essentially the same manner as the governmental
fund types, using the same measurement focus and basis of accounting. Expendable trust funds
account for assets where both the principal and interest may be spent.
The nonexpendable trust funds are accounted for in essentially the same manner as the proprietary
funds, using the same measurement focus and basis of accounting. Nonexpendable trust funds
account for assets of which the principle may not be spent.
The agency funds are custodial in nature and do not present results of operations or have a
measurement focus. Agency funds are accounted for using the modified accrual basis of
accounting. These funds are used to account for assets that the City holds for others in an agency
capacity.
Account Groups. The general fixed assets account group is used to account for fixed assets not accounted
for in proprietary or trust funds. The general long-term debt account group is used to account for general
long-term debt and certain other liabilities that are not specific liabilities of proprietary or trust funds.
C. Assets, Liabilities and Equity
1. Pooled cash and investments
The City maintains a cash and investment pool that is available for use by all funds managed by the city.
Each fund type's portion of this pool is displayed on the combined balance sheet as "Cash and Investments."
The city's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term
investments with original maturities of three months or less from the date of acquisition. Investments in the
Kansas Municipal Pool are carried at fair value.
14
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Assets, Liabilities, and Equity (Continued)
1. Pooled Cash and Investments (Continued)
Cash balances from all funds are invested to the extent available in certificates of deposit and other
authorized investments. Investments with maturity dates greater than three months are stated separately.
Earnings from these investments, unless specifically designated, are allocated monthly to the investing fund
based on the percentage of funds invested to total investments. All investments are carried at fair value.
2. Receivables and Pavables
Transactions between funds that are representative of lending/borrowing arrangements outstanding at the
end of the year are referred to as either "interfund receivables/payables" (i.e., the current portion of interfund
loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other
outstanding balances between funds are reported as "due to/from other funds."
Accounts Receivable. The City records revenues when services are provided. All receivables are shown net
of an allowance for doubtful accounts.
Property taxes receivable. Collection of current year property tax by the County Treasurer is not completed,
apportioned or distributed to the various subdivisions until the succeeding year, such procedure being in
conformity with governing state statutes. Consequently, current year property taxes receivable are not
available as a resource that can be used to finance the current year operations of the City and, therefore, are
not susceptible to accrual. Accruals of uncollected current year property taxes are offset by deferred revenue
and are identical to the adopted budget for 2003. It is not practicable to apportion delinquent taxes held by
the County Treasurer at the end of the accounting period, and further, the amounts there!of are not material in
relationship to the financial statements taken as a whole.
The determination of assessed valuations and the collection of property taxes for all political subdivisions in
the State of Kansas are the responsibility of the various counties. The County Appraiser annually determines
assessed valuations on January 1 and the County Clerk spreads the annual assessment on the tax rolls. The
County Treasurer is the tax collection agent for all taxing entities within the County. In accordance with state
statutes, property taxes levied during the current year are a revenue source to be used to finance the budget
of the ensuing year. Property taxes are levied and liens against property are placed on November 1 of the
year prior to the fiscal year for which they are budgeted. Payments are due November 1, becoming
delinquent, with penalty, December 21. Payments of 50% are accepted through December 20, with the
second 50% then being due on or before June 20 of the following year. This procedure! eliminates the need
to issue tax anticipation notes since funds will be on hand prior to the beginning of each fiscal year. The City
Treasurer draws down all available funds from the County Treasurer's office in two-month intervals. Taxes
remaining due and unpaid at February 15 and July 1 are subject to collection procedures prescribed in state
statutes.
3. Inventories and Prepaid Items
Inventories are valued at cost using the first-in/first-out (FIFO) method. The costs of governmental fund-type
inventories are recorded as expenditures when consumed.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items.
15
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Assets, Liabilities, and Equity (Continued)
4. Restricted Assets
Certain proceeds of the City's enterprise fund revenue bonds, as well as certain resources set aside for their
repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable
bond covenants. The "Water and Sewer Principal and Interest" account is used to segregate resources
accumulated for debt service payments over the next twelve months. The "Debt Service Reserve" account is
used to report resources set aside to make up potential future deficiencies in the "Water and Sewer Principal
and Interest Account".
5. Fixed Assets
Fixed assets used in governmental fund types of the City are recorded in the general fixed assets account
group at cost or estimated historical cost if purchased or constructed. Donated fixed assets are recorded at
their estimated fair value at the date of donation. Assets in the general fixed assets account group are not
depreciated. Interest incurred during construction is not capitalized on general fixed assets.
Public domain (infrastructure) general fixed assets (e.g., roads, bridges, sidewalks and other assets that are
immovable and of value only to the City) are not capitalized.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend
assets' lives are not included in the general fixed assets account group or capitalized in the proprietary funds.
Property, plant and equipment in the proprietary funds of the City are recorded at cost. Property, plant and
equipment donated to these proprietary fund type operations are recorded at their estimated fair value at the
date of donation.
Major outlays for capital assets and improvements are capitalized in proprietary funds as projects are
constructed. Interest incurred during the construction phase of proprietary fund fixed assets is reflected in the
capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same
period.
Property, plant and equipment are depreciated in the proprietary funds of the City using the straight line
method over the following estimated useful lives:
Assets
Years
Buildings
Other equipment
Vehicles
Utility plant & equipment
20 - 50
5 - 10
7 - 10
10 - 70
16
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Assets, Liabilities, and Equity (Continued)
6. Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits.
All employees of the City, except temporary and part time employees, may accumulate sick leave at a rate of
8 or 11 hours per month depending on their work duty schedule. There is no limit on the amount of sick
leave that can be accumulated. Employees with more than five years of service with the City are paid for
one-third of their accumulated sick leave at their current wage scale upon termination of employment in good
standing. In 2001, a limited buy back policy was instituted.
All regular employees are entitled to paid vacation time. Such leave is granted each year of employment and
unused leave may accumulate without limit. Employees are paid for all accumulated vacation leave at their
current wage scale upon termination of employment.
Vested or accumulated vacation leave that is expected to be liquidated with expendable available financial
resources is reported as an expenditure and a fund liability of the government fund that will pay it. Amounts
of vested or accumulated vacation pay that are not expected to be liquidated with expendable available
financial resources are reported in the general long-term debt account group. No expenditure is reported for
these amounts. Vested or accumulated vacation leave of proprietary funds is recorded as an expense and
liability of those funds as the benefits accrue to employees. A liability is recorded for accumulated rights to
receive sick pay benefits that are payable upon termination of employment.
7.
Temporarv Notes
Upon authorization for the issuance of general obligation bonds for certain improvl3ments, Kansas law
permits the temporary financing of such improvements by the issuance of temporary notes. Temporary
notes issued may not exceed the aggregate amount of bonds authorized, are interest bearing and have a
maturity date not later than four years from the date of issuance of such temporary notes. Temporary notes
outstanding are retired from the proceeds of the sale of general obligation bonds.
8. Lonq-term Obliqations
The City reports long-term debt of governmental funds at face value in the general long-term debt account
group. Certain other governmental fund obligations not expected to be financed with current available
financial resources are also reported in the general long-term debt account group. Long-term debt and other
obligations financed by proprietary funds are reported as liabilities in the appropriate funds.
For governmental fund types, bond premiums and discounts, as well as issuance costs, are recognized
during the current period. Bond proceeds are reported as an other financing source net of the applicable
premium or discount. Issuance costs, even if withheld from the actual net proceeds rec€,ived, are reported as
debt service expenditures. For proprietary fund types, bond premiums and discounts, as well as issuance
costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds
payable are reported net of the applicable bond premium or discount. Issuance costs are reported as
deferred charges.
17
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Assets, Liabilities and Equity (Continued)
9. Fund Equity
Reservations of fund balance represent amounts that are not appropriable or are legally segregated for a
specific purpose. Reservations of retained earnings are limited to outside third-party restrictions.
Designations of fund balance represent tentative management plans that are subject to change. The
proprietary fund's contributed capital represents equity acquired through capital grants and capital
contributions from other governments or other funds.
10. Interfund Transactions
Quasi-external transactions (i.e., transactions that would be treated as revenues or expEmses if they involved
organizations external to the governmental unit, such as internal service fund billings to departments) are
accounted for as revenues, expenditures or expenses. Transactions that constitute I"eimbursements to a
fund are expenditures/expenses in the reimbursing fund and reductions of expenditures/expenses in the fund
that is reimbursed.
All other interfund transactions, except quasi-external transactions and reimbursements, are reported as
transfers. Nonrecurring or non routine permanent transfers of equity are reported as residual equity transfers.
All other interfund transfers are reported as operating transfers.
11. Memorandum Only - Total Columns
Total columns on the general purpose financial statements are captioned as "memorandum only" because
they do not represent consolidated financial information and are presented only to facilitate financial analysis.
The columns do not present information that reflects financial position, results of operations or cash flows in
accordance with accounting principles generally accepted in the United States 01f America. Interfund
eliminations have not been made in the aggregation of this data.
12. Comparative Data/Reclassifications
Comparative total data for the prior year have been presented in selected sections of the accompanying
financial statements in order to provide an understanding of the changes in the City's financial position and
operations. Also, certain amounts presented in the prior year data have been reclassified in order to be
consistent with the current year's presentation.
Note 2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Budgetary Information
Kansas statutes require that an annual operating budget be legally adopted for the ç eneral fund, special
revenue funds (unless specifically exempted by statute), debt service fund, and enterprise funds. The
statutes provide for the following sequence and timetable in the adoption of the le~ al annual operating
budget:
1. Preparation of the budget for the succeeding year on or before August 1 s1.
2. Publication in local newspaper of the proposed budget and notice of public hearing on the budget on or
before August 5th.
18
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued)
A. Budgetary Information (Continued)
3. Public hearing on or before August 15th, but at least ten days after publication of notice of hearing.
4. Adoption of the final budget on or before August 25th.
The statutes allow for the governing body to increase the originally adopted budget for previously
un budgeted increases in revenue other than ad valorem property taxes. To do this, a notice of public hearing
to amend the budget must be published in the local newspaper. At least ten days after publication the
hearing may be held and the governing body may amend the budget at that time. There were no budget
amendments for the current year.
The statutes permit management to transfer budgeted amounts between line items within an individual fund.
However, such statutes prohibit expenditures in excess of the total amount of the adopted budget of
expenditures of individual funds. Budget comparison statements are presented for each fund showing actual
receipts and expenditures compared to legally budgeted receipts and expenditures.
All legal annual operating budgets are prepared using the modified accrual basis of accounting, modified
further by the encumbrance method of accounting. Revenues are recognized whe!n cash is received.
Expenditures include disbursements, accounts payable, and encumbrances. Encumbrances are
commitments by the municipality for future payments and are supported by a document evidencing the
commitment, such as a purchase order or contract. All unencumbered appropriations (legal budget
expenditure authority) lapse at year end.
A legal operating budget is not required for capital projects funds, trust funds, and the following special
revenue funds: Bicentennial Center Event, HUD Community Development, Community Development
Revolving, Heritage Commission, CDBG-ED, HOME IV, Special Law Enforcement, Fair Housing
Partnership, Police Grants, Dare Donations, and Large System Interface. A legal operating budget is not
required for the following Enterprise funds: Solid Waste Construction, Water and Sewer Principal and
Interest, Water and Sewer Bond Reserve, Water and Sewer Construction and Reserve funds. Actual to
budget comparisons for these funds that present budgets to the Commissioners are shown strictly for
informational purposes.
Spending in funds which are not subject to the legal annual operating budget requireme!nts are controlled by
federal regulations, other statutes, or by the use of internal spending limits established by the governing
body.
Compliance with Kansas Statutes. References made herein to the statutes are not intended as interpretation
of law, but are offered for consideration by the Director of Accounts and Reports and interpretation by the
County Attorney and legal representatives of the City. Management is not aware of any material violations of
Kansas statutes in the current year.
19
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31,2002
Note 2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued)
B. Deficit Fund Equity
The following fund had a deficit fund equity at December 31, 2002: CDBG Ed $[2,547] and Fair Housing
Partnership $[1,971], These deficits will be recovered from reimbursements from grantor agencies, or in the
event certain costs are disallowed, from general funds. The Health Insurance fund had deficit fund equity of
$[44,090]. This deficit will be recovered with increased employee health insurance premiums.
C. Compliance With Bond Reserve Requirements
Water & Sewer Bond Reserve Requirements
The bond reserve contains a "net revenue" requirement of 125% of next year principal and interest
payments. The Water & Sewer fund met this requirement for 2002.
Reserve requirement
$
1,011,273
Actual reserves
Principal and interest account
Bond reserve account
Total actual reserves
$
1,099,244
15.713
1,114,957
$
The City was in compliance with the reserve account balance requirements at December 31,2002.
D. Legal Debt Margin
The City is subject to the municipal finance law of the state of Kansas which limits the bonded debt
(exclusive of revenue bonds and special assessment bonds) the city may have outstanding to 30 percent of
the assessed value of all tangible taxable property within the city, as certified to the county clerk on the
proceeding August 25. At December 31, 2002, the statutory limit for the City was $108,930,133, providing a
debt margin of $80,149,221.
Note 3. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
A. Deposits and Investments
Deposits - At year end, the City's carrying amount of the deposits and cash on hand was $17,385,959 and
$14,363 respectively. The bank balance was $17,472,481. The difference between the carrying amount and
the bank balance is outstanding checks, deposits in transit and cash on hand. Of the bank balance $300,000
was covered by FDIC insurance and the remaining $17,172,481 was collateralized by pledged securities
held under joint custody receipts issued by a third-party bank in the City's name and by Bank Depository
Guranty Bonds issued by Kansas Bankers Surety Company. The third-party bank holding the pledged
securities is independent of the pledging bank. The pledged securities are held under a tri-party custodial
agreement signed by all three parties; the City, the pledging bank, and the independent third-party bank
holding the pledged securities. The Kansas State Treasurer's Fiscal Agency Department held an unsecured
and uncollateralized deposit of $85,269.
20
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 3. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
A. Deposits and Investments (Continued)
The carrying amount of deposits for the Housing Authority of the City of Salina, a discretely presented
component unit, was $752,602 and the bank balance was $844,939. Of the bank ballance, $844,939 was
covered by federal depository insurance or by collateral held by the entity's agency in the Housing Authority's
name.
The carrying amount of deposits and cash on hand, respectively for the Salina Airport Authority, a discretely
presented component unit, was $3,470,437 and $665 and the bank balance was $3,6:39,134. Of the bank
balance, $3,639,134 was covered by federal depository insurance or by collateral held by the entity's agency
in the Authority's name.
Investments - Kansas statutes authorize the City to invest in U.S. Treasury bills and notes, repurchase
agreements, the Kansas Municipal Investment Pool (KMIP), and certain other types of federal and Kansas
municipal obligations. All investments must be insured, registered, or held by the City or its agent in the
City's name. The City's investments are categorized to give an indication of the level of risk assumed by the
City at year-end. Category 1 includes investments that are insured or registered, or for which the securities
are held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered
investments for which the securities are held by the pledging bank's trust department or agent in the City's
name. Category 3 includes uninsured and unregistered investments for which the securities are held by the
pledging bank but not in the City's name. The carrying amount of investments approximates fair value.
At December 31, 2002, the City had invested $4,887,855 in the State's municipal investment pool. The
municipal investment pool is under the oversight of the Pooled Money Investment Board. The board is
comprised of the State Treasurer and four additional members appointed by the State Governor. The board
reports annually to the Kansas legislature. State pooled monies may be invested in direct obligations of, or
obligations that are insured as to principal and interest by the US government or any agency thereof, with
maturities up to four years. No more than 10 percent of those funds may be invested in mortgage-backed
securities. In addition, the State pool may invest in repurchase agreements with Kansas banks or with
primary government securities dealers. The City's investment in the State Treasurer's municipal investment
pool is not subject to categorization as to risk. The fair value of the City's position in the municipal investment
pool is substantially the same as the value of the pool shares. The categories of the City's investments are
as follows:
Category
1
2
3
Carrying
Amount
u.S. Treasury Bills
$ 6,012,553 $
- $
- $
6,012,553
Pooled investment -
State of Kansas
4,887,855
$ 10,900,408
Separate statutes regulate investment proceeds for most bond issues. Local units may invest bond
proceeds in direct obligations of the United States Government and its agencies or make investments as
authorized for other idle funds. Under existing Attorney General opinions maturity and interest rates are
negotiable on such bonds.
21
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 3. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
A. Deposits and Investments (Continued)
The cash and investments by fund type at December 31, 2002 are as follows:
Subtotal primary govemment
Cash and Separate
Investments Deposits Total Restricted Unrestricted
$ 6,341 ,230 $ - $ 6,341 ,230 $ - $ 6,341,230
2,925,721 2,925,721 2,925,721
983,414 85,269 1,068,683 1,068,683
628,791 628,791 628,791
13,475,706 13,475,706 1,099,224 12,376,482
2,502,910 2,502,910 2,502,910
1,409,634 33,324 1,442,958 1,442,958
28,267,406 118,593 28,385,999 1,099,224 27,286,775
Primary Government
General
Special Revenue
Debt Service
Capital Projects
Enterprise
Intemal Service
Trust & Agency
Component Units
Salina Airport Authority
Salina Housing Authority
3,471,102 3,471,102 85,,000 3,386,102
834,814 834,814 41,475 793,339
4,305,916 4,305,916 126,475 4,179,441
$ 32,573,322 $ 118,593 $ 32,691,915 $ 1,22S,699 $ 31,466,216
Subtotal component units
Total reporting entity
B. Receivables
Receivables as of year end, including the applicable allowances for doubtful accounts, al'e as follows:
General
Special
Revenue
Debt
Service
Enterprise
Internal
Service
Capital
Projects
Trust &
Agency
Total
Primary Government
Receivables:
Accounts
Taxes
Interest
Grants
Notes
Gross receivables
Less: allowance for
uncollectibles
Total
$ 1,033,468 $ 237,786 $ - $ 985,458 $ - $ - $ - $ 2,256,712
2,352,889 3,874,821 1,747,696 7,975,406
106,991 33,674 16,616 227,563 42,289 15,729 7,922 450,784
17,995 17,995
28,016 28,016
3,511,343 4,174,297 1,764,312 1,213,021 42,289 15,729 7,922 10,728,913
[81,063] [2,540] [117,681] [201,284]
$ 3,430,280 $ 4,171,757 $ 1,764,312 $ 1,095,340 $ 42,289 $ 15,729 $ 7,922 $ 10,527,629
Component Units
Salina Airport Authority
Salina Housing Authority
Total
$ 1,058,581
3,851
$ 1,062,432
22
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 3. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
C. Fixed Assets
The following is a summary of the changes in the general fixed assets account group during the current year.
Total reporting entity
Balance
January 1,
2002 Additions
$ 2,589,193 $ - $
6,443,810 41,032
529,331
12,453,379
11,412,456 993,655
$ 32,898,838 $ 1,564,018 $
Deletions
Balance
Deœmber31,
2002
Primary Government
Land
Land improvements
Construction in progress
Buildings
Machinery and equipment
41 ,032
- $ 2,589,193
6,484,842
488,299
12,453,379
12,110,855
295,256
336,288 $ 34,126,568
The following is a summary of proprietary fund-type fixed assets at December 31, 2002:
Less accumulated depreciation
Component
Primarv Government Unit
Internal Salina Salina
Enterprise Service Housing Airport
Funds Funds Authoritv Authoritv
$ 514,050 $ - $ 1,456,890 $ 9,035,150
7,308,475
42,090,806
40,671,942
17,118,787
2,300,038 1,515,655 190,036 1,608,412
1,635,022 13,911
579,812 22,072 5,413,671 7,814,291
5,255,187 331,099 392,816
100,355,332 1,551,638 7,391,696 35,969,456
[42,801,272] [1 ,286,744] [1,279,524] [12,268,893]
$ 57,554,060 $ 264,894 $ 6,112,172 $ 23,700,563
Land
Land improvements
Water plant and equipment
SevJer plant and equipment
Airfield and infrastructure
Equipment
Vehicles
Buildings
Construction in progress
Net fixed assets
Interest costs are capitalized when incurred by proprietary funds and similar component units on debt where
proceeds were used to finance the construction of assets. Interest earned on proceeds of tax-exempt
borrowing arrangements restricted to the acquisition of qualifying assets is offset against interest costs in
determining the amount to be capitalized.
23
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 3. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
D. Restatement
Following the close of the previous fiscal year, it was discovered various items previously expensed in the
internal service funds should have been capitalized as construction in progress. In addition to this change,
items capitalized as construction in progress should have been expensed in the enterprise funds.
Accordingly, the beginning retained earnings balance for the enterprise and internal service funds were
restated, the effects of which are as follows:
Enterprise
Funds
Internal
Service
Funds
Component Unit
Salina
Housing
Authoritv
Beginning Retained
Earnings, as previously stated
Prior period adjustment
Beginning Retained
Earnings, as restated
E. Long-Term Debt
Following is a summary of changes in long-term debt for fiscal year 2002:
$ 38,077,726 $ 2,077,681 $ 1,256,909
[396,211] 27,860 [1,210]
$ 37,681,515 $ 2,105,541 $ 1 ,255,699
General Long-Term Debt
General obligation bonds
Accrued compensation
Temporary notes
Total General Long-Term Debt
Balance Balance
January 1, December 31,
2002 Additions Deletions 2002
$ 19,095,543 $ 1,000,000 $ 2,367,354 $ 17,728,189
1,987,586 194,135 2,181,721
4,865,000 4,865,000
21,083,129 6,059,135 2,367,354 24,774,910
5,058,589 3,025,000 895,836 7,187,753
12,985,000 6,790,000 12,985,000 6,790,000
5,518,929 2,179,741 124,414 7,574,256
935,000 935,000
132,097 132,097
568,563 50,094 618,657
25,198,178 12,044,835 15,072.,347 22,170,666
$ 46,281,307 $ 18,103,970 $ 17,439.,701 $ 46,945,576
$ 5,090,000 $ 2,635,000 $ 565,000 $ 7,160,000
380,000 65,000 315,000
321,588 50,968 270,620
565,235 28,672 536,563
$ 5,791,588 $ 3,200,235 $ 709,640 $ 8,282,183
24
Proprietary Funds
General obligation bonds
Revenue bonds
Loans payable
Temporary notes
Capital financing leases
Accrued compensation
Total proprietary funds
Total primary government
Component Units
General obligation bonds
Revenue bonds
Loans payable
Special assessment debt
Total component units
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
E. Long-Term Debt (Continued)
Note 3. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
The following is a detailed listing of the city's long-term debt including general obligation bonds, revenue
bonds, temporary notes and loans payable:
Primary Government
General Obligation
Internal Improvements 1993, due 10/1/2003
Internal Improvements 1993, due 10/1/2003
Internal Improvements 1994, due 10/1/2004
Internal Improvements 1995, due 10/1/2005
Internal Improvements 1996, due 8/1/2006
Internal Improvements 1997, due 2/1/2012
Internal Improvements 1998, due 8/1/2003
Water/sewer refunding 1998, due 10/1/2008
Internal Improvements 1999, due 10/1/2014
Internal Improvements 2000, due 10/1/2015
Internal Improvements 2001, due 10/1/2016
Water/sewer refunding 2002A, due 10/3/2013
Internal Improvements 20028, due 10/1/2017
Total general obligation bonds
Revenue Bonds
Revenue Refunding 2oo2A, due 9/1/2012
Total revenue bonds
Loans Payable
Kansas Public Water Supply, due 2/1/2020
Kansas Public Water Supply, due 2/1/2023
T otalloans payable
Temporary Notes
Series 2001-2
Original Interest Bonds
Issue Rates OutstandinQ
$ 685,000 3.50% to 5.50% $ 70,000
1,800,000 3.40% to 5.00% 185,000
1,175,000 4.70% to 6.50% 230,000
2,434,000 4.75% to 6.50% 720,000
1,847,000 4.65% to 5.00% 740,000
1,650,000 4.50% to 5.25% 825,000
3,900,000 4.10% to 5.00% 2,660,000
6,010,000 3.80% to 4.40% 3,530,942
5,465,000 4.30% to 5.50% 3,815,000
3,885,000 4.625% to 6.50% 3,215,000
5,350,000 4.00% to 4.90% 4,990,000
2,045,000 3.00% to 4.50% 1,955,000
1,980,000 2.70% to 4.50% 1,980,000
$ 24,915,942
6,790,000 2.20% to 4.25% $ 6,790,000
$ 6,790,000
3,600,000
5,000,000
$
3,298,593
4,275,663
7,574,256
4.29%
4.13%
$
4,865,000
$
4,865,000
2.25%
25
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
E. Long-Term Debt (Continued)
Note 3. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
Component Unit
Salina Airport Authority
General Obligation Bonds
General Obligation 1993-A due 2003
General Obligation 1993-B, due 2003
General Obligation 1998, due 2008
General Obligation 1999B, due 2010
General Obligation 2001A, due 2012
General Obligation 2002A, due 2013
Total general obligation bonds
Revenue Bonds
Leasehold revenue 1991, due 2006
Loans Payable
Kansas Dept of Commerce & Housing, due 2007
Special assessment debt
Total
Interest paid in 2002 is as follows:
Primary government
General obligation bonds
Revenue bonds
Loans payable
Temporary notes
Capital leases
Total primary government
Component Unit
Salina Airport Authority
26
Original
Issue
Bonds
Outstanding
Interest
Rates
$ 375,000 3.40% to 5.00% $ 45,000
275,000 3.85% to 4.75% 35,000
4,440,000 4.10% to 4.35% 2,660,000
555,000 3.90% to 5.10% 400,000
1,385,000 4.45% to 5.60% 1,385,000
2,635,000 2.45% to 3.70% 2,635,000
7,160,000
850,000 5.00% to 7.25% 315,000
468,543 2.00% 270,620
565,235 3.19% 536,563
$ 8,282,183
$
1,234,908
620,558
133,654
29,297
6,788
2,025,205
$
$
319,167
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 3. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
E. Long-Term Debt (Continued)
Annual debt service requirements to maturity for general obligation bonds to be paid with tax levies:
Year
General Obligation - Primary Government
Bonds Interest
Outstandinq Due Totê!
$ 3,345,000 $ 1,136,636 $ 4,481,636
3,105,000 968,863 4,073,863
3,025,000 834,452 3,859,452
2,820,000 702,379 3,5,22,379
2,670,000 580,764 3,2.50,764
7,500,000 1,527,501 9,027,501
2,450,944 285,504 2,736,448
$ 24,915,944 $ 6,036,099 $ 30,952,043
General Obligation - Component Units
Bonds Interest
Outstandinq Due T otê!
$ 895,000 $ 290,690 $ 1,185,690
830,000 253,762 1,083,762
850,000 220,434 1,070,434
850,000 186,866 1,036,866
885,000 154,858 1,039,858
2,850,000 327,883 3,177,883
$ 7,160,000 $ 1,434,493 $ 8,594,493
2003
2004
2005
2006
2007
2008-2012
2013-2017
Total
Year
2003
2004
2005
2006
2007
Thereafter
Total
27
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 3. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
E. Long-Term Debt (Continued)
Annual debt service requirements to maturity for revenue bonds to be paid with utility reVE!nUes:
Revenue Bonds - Primary Government
Bonds Interest
Year OutstandinQ Due Total
2003 $ 575,000 $ 234,018 $ 1309,018
2004 600,000 206,810 1306,810
2005 625,000 191,810 1316,810
2006 640,000 178,060 1318,060
2007 640,000 162,060 1302,060
2008-2012 3,710,000 449,745 4,.159,745
Total $ 6,790,000 $ 1,422,503 $ 8,212,503
Annual debt service requirements to maturity for revenue bonds to be paid with service revenues:
Revenue Bonds - Component Units
Bonds Interest
Year OutstandinQ Due Total
2003 $ 70,000 $ 22,510 $ 92,510
2004 75,000 17,610 92,610
2005 80,000 12,285 92,285
2006 90,000 6,525 96,525
Total $ 315,000 $ 58,930 $ :373,930
Annual debt service requirements to maturity for temporary notes - to be paid through the issuance of general
obligation bonds:
Year
2003
Temporary Notes - Primary Government
Notes Interest
OutstandinQ Due Totm
$ 4,865,000 $ 151,148 $ 5,016,148
28
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31,2002
Note 3. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
E. Long-Term Debt (Continued)
The City has engaged in loans in which they have yet to receive all of the proceeds. The following displays
annual debt service requirements to maturity for loans payable to be paid from service revenues, for the full
proceeds amount:
Loans - Primary Government
Loans Interest
Year Outstanding Due Total
2003 $ 211,427 $ 223,200 $ 434,627
2004 303,766 307,870 B11,636
2005 316,661 296,049 B12,710
2006 330,105 283,725 B13,830
2007 344,120 270,878 B14,998
2008-2012 1,952,571 1,141,742 3,094,313
2013-2017 2,403,825 728,071 3,'131,896
2018-2022 2,254,991 245,920 2,SOO,911
2023-2027 181,127 3,424 '184,551
Total $ 8,298,593 $ 3,500,879 $ 11,B14,921
Loans - Component Unit
Loans Interest
Year Outstanding Due Total
2003 $ 51,990 $ 5,154 $ 57,144
2004 53,036 4,109 57,145
2005 54,109 3,043 57,152
2006 55,185 1,955 57,140
2007 56,300 846 57,146
Total $ 270,620 $ 15,107 $ ~~85,727
Annual debt service requirement to maturity for Special Assessment Debt to be paid from rental revenue:
Year
Special Assessment Debt - Component Unit
Assessment Interest
Outstandina Due Tota!
$ 29,758 $ 20,336 $ ~;0,094
30,886 19,209 ~;0,095
32,056 18,038 ~;0,094
33,271 16,824 ~~0,095
34,533 15,562 5;0,095
376,059 74,791 45,0,850
$ 536,563 $ 164,760 $ 701,323
29
2003
2004
2005
2006
2007
Thereafter
Total
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 3. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
E. General Long-Term Debt (Continued)
Defeased bonds. In prior years, the City had defeased certain outstanding debt obligations by placing the
proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds.
Accordingly, the trust accounts and the defeased bonds are not included in the City's financial statements. At
December 31, 2002, the following outstanding bonds are considered defeased:
1993 Revenue Issue
1994 Revenue Issue
$
2,155,000
9,945,000
Total
$ 12,100,000
During 2002, the City issued $2,045,000 in general obligation refunding and improvement bonds with interest
ranging from 3.0 to 4.5% to advance refund $2,045,000 of the $2,295,000 outstanding 1993 Revenue Bonds
with interest rates ranging from 4.5 to 5.25%. The net proceeds were used to establisl1 an escrow account
invested in U.S. Government Securities to pay partial portions of the outstanding principal of the 1993
Revenue Bonds maturing October 1, 2003 and thereafter and the interest due on the refunding revenue
bonds through the same date. As a result, the 1993 Revenue Bonds were considered to be defeased and the
liability for the defeased bonds has been removed from the City's financial statements. The transaction
resulted in an economic gain of $93,218 and a reduction of $437,260 in future debt paymt3nts.
During 2002, the City also issued $6,790,000 in revenue refunding bonds with interest ranging from 2.2 to
4.25% to advance refund $6,790,000 of the $10,690,000 outstanding 1994 Revenue Bonds with interest rates
ranging from 4.3 to 5.25%. The net proceeds were used to establish an escrow account invested in U.S.
Government Securities to pay partial portions of the outstanding principal of the 1 ~194 Revenue Bonds
maturing September 1, 2003 and thereafter and the interest due on the refunding revenue bonds through the
same date. As a result, the 1994 Revenue Bonds were considered to be defeased and the liability for the
defeased bonds has been removed from the City's financial statements. The transaction resulted in an
economic gain of $800,920 and a reduction of $1 ,580,963 in future debt payments.
Special assessments. As provided by Kansas statutes, projects financed in part by speGial assessments are
financed through general obligation bonds of the City and are retired from the debt service fund. Special
assessments paid prior to the issuance of bonds are recorded as revenue in the appropriate project. Special
assessments received after the issuance of bonds are recorded as revenue in the debt service fund. The
special assessments are not recorded as revenue when levied against the respective property owners as
such amounts are not available to finance current year operations. The special assessment debt is a
contingent of the City to the extent of property owner defaults, which have historically been immaterial.
Conduit debt. The City has entered into several conduit debt arrangements wherein the City issues industrial
revenue bonds to finance a portion of the construction of facilities by private enterprises. In return, the private
enterprises have executed mortgage notes or leases with the City. The City is not responsible for payment of
the original bonds, but rather the debt is secured only by the cash payments agreed to be paid by the private
enterprises under the terms of the mortgage or lease agreements. Generally, the conduit debt is arranged so
that payments required by the private enterprises are equal to the mortgage payments schedule related to the
original debt. At December 31, 2002, total outstanding conduit debt was $87,032,512.
30
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31,2002
Note 3. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
F. Reconciliation of Transfers
A reconciliation of operating interfund transfers follows:
General Fund
Special Revenue Funds
Enterprise Funds
Internal Service Funds
Transfer In
$ 91,772
507,091
2,564,181
125,000
Transfer Out
$ 262,500
398,863
2,621),681
Total Transfers
$ 3,288,044 $ 3,288,044
Residual equity transfers were made at year end to close projects in the following funds.
General Fund
Special Revenue Funds
Enterprise Funds
Transfer In Transfer Out
$ 44,842 $
3,663,545
213,362
3,682,025
$ 3,708,387 $ 3,708,387
G. Contributed Capital
The changes in the City's contributed capital accounts for its enterprise and internal servic:e funds were as
follows:
Balance
January 1,
2002
Contributing
Source
Capital
Projects
Funds
Balance
December 31 ,
2002
Internal Service Funds
Central Garage
Information Services
Enterprise Funds
Sanitation
Solid Waste
Municipal Golf Course
Water & Sewer
$
16,611 $
626,858
796 $
17,407
626,858
45,253
113,372
229,562
8,424,147
$ 9,455,803 $
29,326
300
388
1,009,155
1,039,965
74,579
113,672
229,950
9,433,302
$ 10,495,768
31
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 4. OTHER INFORMATION
A. Defined Benefit Pension Plan
Plan Description. The City participates in the Kansas Public Employees Retirement System (KPERS), and
the Kansas Police and Firemen's Retirement System (KP&F). Both are cost-sharing multiple-employer
defined benefit pension plans as provided by KS.A. 74-4901 et seq.. KPERS and KP&F provides retirement
benefits, life insurance, disability income benefits and death benefits. Kansas law establishes and amends
benefit provisions. KPERS and KP&F issue a publicly available financial report that includes financial
statements and required supplementary information. Those reports may be obtained by writing to KPERS
(611 South Kansas Avenue, Topeka, Kansas 66603-3925).
Funding Policy. K.S.A. 74-4919 establishes the KPERS member-employee contribution rate at 4% of covered
salary. KS.A. 74-4975 establishes the KP&F member-employee contribution rate at 7'% of covered salary.
The employer collects and remits member-employee contributions according to the provisions of section 414
(h) of the Internal Revenue Code. State law provides that the employer contribution rates be determined
annually based on the results of an annual actuarial valuation. KPERS and KP&F are funded on an actuarial
reserve basis. State law sets a limitation on annual increases in the employer contribution rates. The KPERS
employer rate was 3.52% from January 1 to June 30, 2002 and 2.92% from July 1 to December 31, 2002.
The City employer contributions to KPERS for the years ending December 31, 2002, 2001 and 2000 were
$347,505, $259,645 and $229,663, respectively, equal to the required contributions for each year. The KP&F
employer rate established for fiscal years beginning in 2002 is 6.79%. Employers participating in KP&F also
make contributions to amortize the liability for past service costs, if any, which are determined separately for
each participating employer. The City's contributions to KP&F for the years ended December 31, 2002, 2001,
and 2000 were $735,657, $719,030 and $710,481, respectively, equal to the required contributions for each
year.
B. Deferred Compensation Plan
The City offers its employees a deferred compensation plan ("Plan") created in accordance with Internal
Revenue Code Section 457. The Plan, available to all City employees, permits them to defer a portion of their
salary until future years. The deferred compensation is not available to employeles until termination,
retirement, death, or unforeseeable emergency. Plan assets are transferred to a plan agent in a custodial
trust and are not available to the claims of the City's general creditors.
C. Flexible Benefit Plan (LRC. Section 125)
The City Commission has adopted by resolution a salary reduction flexible benefit plan ("Plan") under Section
125 of the Internal Revenue Code. All City employees working more than 20 hours per week are eligible to
participate in the Plan beginning after two full months of employment. Each participant may elect to reduce
his of her salary to purchase benefits offered through the Plan. Benefits offered through the Plan include
various insurance and disability benefits.
32
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 4. OTHER INFORMATION (Continued)
D. Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to and dlestruction of assets;
errors and omissions; natural disasters and other events for which the City carries commercial insurance. No
significant reductions in insurance coverage from that of the prior year have occurred. Settlements have not
exceeded insurance coverage for each of the past three years.
The City has established a limited risk management program for workers' compensation. The program
covers all City employees. Premiums are paid into the Workers' Compensation Reserve Fund by all other
funds and are available to pay claims, claim reserves and administrative costs of the program. An excess
coverage insurance policy covers individual claims in excess of $250,000 ($350,000 for claims involving
employees classified as policemen or firemen). Incurred claims, including incurred but not reported claims,
have been accrued based primarily upon subsequent payments. Claim liabilities are calculated considering
the effects of inflation, recent claim settlement trends including frequency and amounts of payouts and other
economic and social factors. The liability for claims and judgments if reported in the Workers' Compensation
Reserve Fund because it is expected to be liquidated with expendable available financial resources.
Changes in the balances of claims liabilities during the past two years are as follows:
2002 2001
Unpaid claims, January 1 $ 172,060 $ 274,750
Incurred claims (including
IBNRs) 128,281 81,564
Claim payments [155,377] [184,2§1
Unpaid claims, December 31 $ 144,964 $ 172,060
The City established a limited risk management program for employee health and dental insurance in 1997.
The program covers eligible City employees. Premiums are paid into the health insurance fund by all other
funds and are available to pay claims, claim reserves and administrative costs of the program. An excess
coverage insurance policy covers individual claims in excess of $50,000. Incurred claims, including incurred
but not reported claims, have been accrued based primarily upon subsequent payments. Claim liabilities are
calculated considering the effects of inflation, recent claim settlement trends including frequency and
amounts of payouts and other economic and social factors. The liability for claims and judgments in the
Health Insurance Fund because it is expected to be liquidated with expendable availablE~ financial resources.
Changes in the balances of claims liabilities during the past two years are as follows:
2002 2001
Unpaid claims, January 1 $ 271,446 $ 365,542
Incurred claims (including
IBNRs) 3,338,877 2,162,591
Claim payments [3,163,070] [2,256,6~
Unpaid claims, December 31 $ 447,253 $ 271 ,446
33
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 4. OTHER INFORMATION (Continued)
E. Capital Projects
Capital projects often extend over two or more fiscal years. The following is a schedule which compares the
project authorization including allowable interest revenue to total project expenditures from project inception
to December 31, 2002.
Proiect
South Ninth Utility Improvements
135/Magnolia Tract Improvements
2000 Subdivision Phase 3
South Marymount Road Project
Magnola Hills Subdivision
5th Street Stimmel Sewer
North Ohio Utility Extension
North Ohio Grade Separation
Law Enforcement Center
Authorization
$ 3,200,000
69,000
38,704
1,243,063
164,805
340,000
650,000
4,000,000
1,300,000
F. Subsequent Events
Expenditures
$ 990,213
3~~,540
2i7,790
1, 12~~,905
9'1,114
27'1,530
672,031
33~~,557
540 , 966
On February 15, 2003, the City entered into a capital lease agreement with an original balance of $60,000.
The City is to make three annual payments, with the first payment due on June 1, 2004. The interest rate on
the lease is 3.65%.
G. Contingent Liabilities
The City receives significant financial assistance from numerous federal and state govemmental agencies in
the form of grants and state pass-through aid. The disbursement of funds received under these programs
generally requires compliance with terms and conditions specified in the grant agreements and is subject to
audit. Any disallowed claims resulting from such audits could become a liability of the General Fund or other
applicable funds. However, in the opinion of management, any such disallowed claims would not have a
material effect on any of the financial statements of the City at December 31, 2002.
The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently
determinable, it is the opinion of the City's legal counsel that resolution of these matters will not have a
material adverse effect on the financial condition of the City.
34
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 4. OTHER INFORMATION (Continued)
H. Municipal Solid Waste Landfill
State and federal laws and regulations require the City to place a final cover on its landfill site when it stops
accepting waste, and to perform certain maintenance and monitoring functions at the site for thirty years after
closure. Although closure and postclosure care costs will be paid only near or after the date that the landfill
stops accepting waste, the City reports a portion of these closure and postclosure care costs as an operating
expense of the solid waste fund in each period based on landfill capacity used as of each balance sheet date.
The $1,164,833 reported as landfill closure and postclosure care liability at December 31 represents the
cumulative amount reported to date based on the use of 23.6% of the estimated capacity of the landfill. The
City's solid waste fund will recognize the remaining estimate cost of closure and postclosure care of
$3,777,181 as the remaining estimated capacity is filled over the remaining life expectancy of 91 years.
These amounts are based on what it would cost to perform all closure and postclosure care in 2002. Actual
cost may be higher due to inflation, changes, in technology or changes in regulations. The City is required by
State and Federal laws and regulations to provide assurances of financial responsibility for closure and post-
closure care. The City has elected to utilize the Local Government Financial test promulgated by the U.S.
Environmental Protection Agency (at 40 CFR 258.74(f» and the Kansas Department of Health and
Environment to provide these assurances. Any future closure or post-closure care costs will be provided
through the normal budgeting and rate setting process, including the issuance of general obligation bonds, if
necessary.
I. Segment Information - Enterprise Funds
The City maintains four enterprise funds which are intended to be self-supporting throu~ h user fees charged
for services to the public. Financial segment information as of and for the year ended December 31, 2002 is
presented below.
Solid Golf Water
Waste Course and
Sanitation Disposal Division Sewer Total
Operating revenues $ 1 ,638,280 $ 2,210,231 $ 867,108 $ 13,435,656 $ 18,151,275
Depreciation expense 67,558 757,019 61,099 2,460,471 3,346,147
Operating income [loss] [16,033] 161,079 34,194 1,807,277 1,986,517
Net income [loss] 4,175 223,701 37,259 987,356 1,252,491
Property, plant and
equipment additions 121,370 121,962 26,244 3,625,753 3,895,329
Net working capital 466,632 2,328,431 117,665 8,758,400 11,671,128
Total assets 1,027,956 7,105,184 1,324,639 63,552,499 73,010,278
Bonds and temporary
notes payable 380,805 81,526 21,089,678 21,552,009
Total equity 895,171 5,424,812 1,176,316 41,270,730 48,767,029
35
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31,2002
Note 4. OTHER INFORMATION (Continued)
J. Environmental Matters
The Kansas Department of Health and Environment (KDHE) issued a report in 1994 indicating the presence
of volatile organic compounds at levels requiring remediation at the Salina Public Water Supply Wells Site
(the Site). The City adopted a proactive Policy and Action Plan to remediate the groundwater contamination,
and on December 7, 1994, the City and KDHE entered into a Consent Order and SI3ttiement Agreement
under which the City assumed primary responsibility for the further investigation and remediation of the
groundwater contamination. Field testing work has been completed. The necessary remediation work will be
conducted over the next several years at a yet undetermined cost to the City's Water and Sewer Fund.
The Salina Airport Authority has been involved in discussions with the Corps of Engineers, Environmental
Protection Agency, and the Kansas Department of Health and Environment relative to the former Schilling air
Force Base (the Base) in Salina, Kansas. The Base was operational from 1942 to 1965 when it was
decommissioned and became the current Salina Municipal Airport and Salina Airport Industrial Center.
During its period of operation, the Base was used for large aircraft including B-17s, B-29s, B-47s and the
refueling KC-97s and KC-135s. The Army Corps of Engineers did a removal of 107 former underground
storage tanks at the former Base in 1995. In addition to efforts by the Corps of Engineers, the Environmental
Protection Agency has conducted an Expanded Site Investigation (ESI) to determine all sources of potential
contamination at the Site. Once the additional information gathering effort has been conducted and all
parties know the nature and extent of contamination, it is anticipated that there will be a discussion with
respect to cleanup options and allocation of responsibility. At this time, the Authority does not know
specifically whether the City of Salina or the Authority will have cleanup obligations.
K. New Governmental Accounting Standards
The Governmental Accounting Standards Board (GASB) has issued the following statements:
Statement No. 34 - "Basic Financial Statements - And Management's Discussion and Analysis - For State
and Local Governments" which establishes a new financial reporting model for state and local governments.
Statement No. 37 - "Basic Financial Statements - And Management's Discussion and Analysis - For State
and Local Governments: Omnibus" which changes the reporting of escheat property to coincide with
Statement No. 34, clarifies provisions of Statement No. 34 which are not sufficiently clear, and modifies
provisions of Statement No. 34 which have unintended consequences.
Statement No. 38 - "Certain Financial Statement Note Disclosures" which modifies, establishes, and rescinds
certain financial statement disclosure requirements.
Statements 34, 37, 38 will become effective for the period beginning January 1, 2003. Management has not
yet completed their assessments, however, they will have a material effect on the overall financial statement
presentation for the City.
36
COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES
CITY OF SALINA, KANSAS
GENERAL FUND
The general fund is used to account for resources traditionally associated with government Wl1ich are not required
legally or by sound financial management to be accounted for in another fund.
37
ASSETS
Cash and investments
Receivables
Accounts, net
Taxes
Grants
Interest
Inventory
Due from other funds
Total assets
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
Retainage payable
Deferred revenue
Total liabilities
Fund balances
Reserved for encumbrances
Unreserved
Undesignated
Total fund balances
Total liabilities and fund balances
CITY OF SALINA, KANSAS
GENERAL FUND
COMPARATIVE BALANCE SHEETS
December 31, 2002 and 2001
Schedule 1
2002
2001
$ 6,341,:230 $ 6,145,560
952,405
2,352,1389
17,B95
106,B91
88,299
769,441
2,300,104
87,616
70,390
793,597
$ 9,859,1309 $ 10,166,708
$ 489,010 $ 390,633
4,846
2,352,1389 2,300,104
2,841,1399 2,695,583
437,406 732,216
6,580,S04 6,738,909
7,017,B10 7,471,125
$ 9,859,B09 $ 10,166,708
See independent auditor's report on the general purpose financial statements.
38
Schedule 2
CITY OF SALINA, KANSAS
GENERAL FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
For the fiscal years ended December 31,2002 and 2001
Residual equity transfer in
2002 2001
$ 17,177,266 $ 16,664,880
1 ,461,:~40 1,517,465
1,490,G57 1,482,613
3,131,242 3,543,547
23,260,~;o5 23,208,505
1,935, ¡r57 2,033,818
9,924,484 9,290,773
3,952,243 3,767,521
1,860,S73 1,821,817
722,H97 705,421
3,432, '778 3,407,067
1,820,t¡70 1,554,969
23,649,~102 22,581,386
[388, ?97] 627,119
91,1'72 90,067
[262,SOO] [262,500]
61,468 40,699
[109,260] [131,734]
[498,057] 495,385
7,471,125 6,942,816
44,€i42 32,924
$ 7,017,~~ $ 7,471,125
Revenues
Taxes
Intergovernmental
Fees and charges
Miscellaneous
Total revenues
Expenditures
General government
Public safety
Public works
Culture and recreation
Public health and sanitation
Community development
Capital outlay
Total expenditures
Excess [deficiency] of revenues over [under] expenditures
Other financing sources [uses]
Operating transfers in
Operating transfers [out]
Sale of assets
Total other financing sources [uses]
Excess [deficiency] of revenues and other sources
over [under] expenditures and other [uses]
Fund balances, January 1
Fund balances, December 31
See independent auditor's report on the general purpose financial statements.
39
Schedule 3
1 of 3
CITY OF SALINA, KANSAS
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ACTUAL AND BUDGET
For the fiscal years ended December 31, 2002 and 2001
2002 ~~001
Variance Variance
Positive Positive
Actual BudQet [NeQativel Actual ~JdQet [NeQativel
Revenues
Taxes
Real estate taxes $ 2,260,330 $2,256,101 $ 4,229 $2,714,696 $2,1'09,089 $ 5,607
Delinquent taxes 66,040 30,000 36,040 48,186 30,000 18,186
Motor vehicle taxes 317,339 365,852 [48,513] 306,344 ~120,840 [14,496]
General sales tax 12,257,820 12,291,000 [33,180] 12,010,742 12,050,000 [39,258]
Other taxes 2,275,737 2,195,000 80,737 2,431,988 2,~112,500 119,488
Total taxes 17,177,266 17,137,953 39,313 17,511,956 17,422,429 89,527
Intergovernmental
City - County Revenue Sharing 155,728 324,027 [168,299] 324,027 ~199,354 [75,327]
LAVTR 410,945 475,000 [64,055] 420,448 443,972 [23,524]
Liquor tax 122,584 113,216 9,368 129,058 111,000 18,058
EMS - County 714,692 714,186 506 673,680 Ei79,186 [5,506]
Other intergovernmental 31,498 80,000 [48,502] 34,341 - 80,000 [45,659]
Total intergovernmental 1,435,447 1,706,429 [270,982] 1,581,554 --1.,1'13,512 [131,958]
Fees and Charges
Charges for services 286,707 238,500 48,207 278,177 n9,000 39,177
Public safety fees 778,401 747,000 31,401 751,635 1'45,000 6,635
Recreational fees 400,356 431,500 [31,144] 436,553 435,000 1,553
Merchandise sales 5,850 9,000 [3,150] 6,719 9,000 [2,281]
Rents and royalties 8,733 8,000 733 9,604 - 8,000 1,604
Total fees and charges 1,480,047 1,434,000 46,047 1,482,688 ~36,000 46,688
Other Revenues
Licenses and permits 427,758 340,975 86,783 402,558 2176,275 26,283
Fines 1,198,957 1,000,000 198,957 1,066,118 1,CiOO,000 66,118
Interest 251,845 425,000 [173,155] 585,717 475,000 110,717
Reimbursements 144,492 153,000 [8,508] 209,209 152,000 57,209
Miscellaneous 50,744 30,000 20,744 32,580 24,000 8,580
Internal charges 833,001 784,850 48,151 661,022 --.Ji10,022 51,000
Total other revenues 2,906,797 2,733,825 172,972 2,957,204 ~i37,297 319,907
Total revenues 22,999,557 23,012,207 [12,650] 23,533,402 23,2:09,238 324,164
Expenditures
General Government
City commission 89,614 107,950 18,336 98,784 107,450 8,666
City manager 375,435 397,014 21,579 379,910 3,86,152 6,242
Legal 126,211 107,000 [19,211] 133,069 136,900 3,831
Finance 351,147 361,396 10,249 352,701 383,932 31,231
Human resources 210,232 215,225 4,993 224,133 2.12,212 [11,921]
Other general government 692,818 692,727 [91] 551,302 5,27,414 [23,888]
Contingencies 32,657 200,000 167,343 127,311 ----.! 70,000 42,689
Total general government 1,878,114 2,081,312 203,198 1,867,210 ~'24,060 56,850
See independent auditor's report on the general purpose financial statements.
40
Schedule 3
2 of3
CITY OF SALINA, KANSAS
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ACTUAL AND BUDGET
For the fiscal years ended December 31,2002 and 2001
2002 ~~001
Variance Variance
Positive Positive
Actual Budaet rNeaativel Actual §JJdaet rNeaativel
Expenditures - continued
Public Safety
Police $ 4,352,629 $4,360,155 $ 7,526 $4,228,462 $ 4,~~63,243 $ 34,781
Municipal court 1,002,963 779,683 [223,280] 709,042 i'76,299 67,257
Fire 4,118,919 4,084,796 [34,123] 3,915,172 3,B19,927 4,755
Building services 379,460 350,534 [28,926] 358,589 ~162,075 3,486
Total public safety 9,853,971 9,575,168 [278,803] 9,211,265 9,~121,544 110,279
Public Works
Buildings and general improvements 683,714 632,025 [51,689] 593,116 Eì41,560 48,444
Engineering 455,393 455,369 [24] 430,163 412,360 [17,803]
Streets 1,142,305 1,139,956 [2,349] 1,125,074 1,125,680 606
Flood works 126,291 142,992 16,701 117,869 138,733 20,864
Traffic control 557,809 530,765 [27,044] 519,781 fi25,010 5,229
Parks 920,337 923,220 2,883 888,107 B12,833 24,726
ADA compliance 16,434 40,000 23,566 26,732 - 40,000 13,268
Total public works 3,902,283 3,864,327 [37,956] 3,700,842 3,i'96,176 95,334
Public Health and Sanitation
Cemetery 94,206 105,865 11,659 105,845 103,188 [2,657]
Health department 626,758 626,758 598,646 --.li98,646
Total public health and sanitation 720,964 732,623 11,659 704,491 --.1'01,834 [2,657]
Culture and Recreation
Swimming pools 76,806 69,950 [6,856] 79,920 72,300 [7,620]
Neighborhood centers 63,251 60,999 [2,252] 53,196 58,701 5,505
Recreation 1,126,507 1,107,270 [19,237] 1,105,044 1,087,614 [17,430]
Arts and humanities 285,658 302,575 16,917 309,865 ~~95,439 [14,426]
Smoky Hill museum 282,896 277,568 [5,328] 257,216 ---1?4,516 17,300
Total culture and recreation 1,835,118 1,818,362 [16,756] 1,805,241 -11'88,570 [16,671]
Community Development
Human relations 160,481 164,178 3,697 147,116 160,066 12,950
Planning 218,967 207,024 [11,943] 194,210 191,844 [2,366]
Neighborhood services 302,528 271,654 [30,874] 260,817 ~~59,690 [1,127]
Agency contracts 2,801,975 2,796,800 [5,175] 2,974,482 2,~190,259 15,777
Total community development 3,483,951 3,439,656 [44,295] 3,576,625 3,601,859 25,234
Capital Outlay
Capital outlay 1,669,566 2,028,099 358,533 2,046,859 2,097,347 50,488
Cash Reserve 4,293,328 4,293,328 _~.!g21, 168 5,021,168
Total expenditures 23,343,967 27,832,875 4,488,908 22,912,533 28,252,558 5,340,025
Excess [deficiency] of revenues
over [under] expenditures [344,410] [4,820,668] 4,476,258 620,869 ~143,320] 5,664,189
See independent auditor's report on the general purpose financial statements.
41
Schedule 3
3 of3
CITY OF SALINA, KANSAS
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ACTUAL AND BUDGET
For the fiscal years ended December 31,2002 and 2001
2002 ~~001
Variance Variance
Positive Positive
Actual Budaet [Neaativel Actual ß!udaet [Neaativel
$ 91,772 $ 17,000 $ 74,772 $ 90,067 $ 17,000 $ 73,067
[262,500] [262,500] [262,500] [:~62,500]
61,468 45,000 16,468 40,699 - 54,000 [13,301]
[109,260] [200,500] 91,240 [131,734] ----1191,500] 59,766
Other financing sources [uses]
Operating transfer in
Operating transfer [out]
Sale of assets
Total other financing sources [uses]
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]
[453,670]
[5,021,168]
4,567,498
489,135
[5,~~34,820]
5,723,955
Unreserved fund balance, January 1
5,816,308
5,021,168
795,140
5,241,626
5,~~34,820
6,806
Prior year cancelled encumbrances
Residual equity transfer in
7,334
44,842
7,334
44,842
52,623
32,924
--
52,623
32,924
Unreserved fund balance, December 31
5,414,814 $
- $5,414,814
5,816,308 L-====. $5,816,308
Reconciliation to GAAP
Interest receivable
Grants receivable
Accounts receivable
Inventory
Retainage
Encumbrances
106,991
17,995
952,405
88,299
87,616
437,406
769,441
70,390
[4,846]
732,216
GAAP Fund Balance, December 31
$7,017,910
$7,471,125
See independent auditor's report on the general purpose financial statements.
42
CITY OF SALINA, KANSAS
SPECIAL REVENUE FUNDS
Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for
particular purposes.
Employee benefit fund - To account for the costs of various benefits provided to governmental employees.
Flood and drainage improvement fund - To account for property tax revenues to be used for capital improvements to
the Flood Control and Stormwater Drainage systems.
Business improvement district fund - State law allows businesses within an area to voluntarily establish an
improvement district. This fund is used to account for the assessments made on the district. All revenues are to be
used within the Business Improvement District.
Tourism and convention fund - To account for transient guest tax revenues, which are spe!cifically restricted to
promotion and tourism activities.
Neighborhood park fund - To account for fees collected from new residential building projects in Salina.
Expenditures are for acquisition or development of neighborhood parks in the growing areas of the community.
Special parks and recreation fund - To account for liquor tax revenues which must be used for park maintenance
and improvements.
Special alcohol fund - To account for liquor tax revenues which must be used for programs which address
prevention, education or intervention for drug and alcohol abuse.
Special gas fund - To account for the City's share of motor fuel tax revenues which are legally restricted to the
maintenance or improvement of streets within the City.
Bicentennial Center fund - To account for the activities of the City's convention center.
Bicentennial Center Event fund - To account for the revenues and expenses associated with special events
(concerts, shows, etc.) at the City's convention center.
HUD community development fund - To account for grants received from the state to be used for housing or
economic development purposes.
Community development revolving fund - To account for funds which may be loaned for housing and economic
development purposes, to later be repaid and reused on a revolving basis.
Heritage commission fund - To account for revenues and expenses associated with heritage pre!servation activities.
Fair housing fund - To account for grants received from the federal government to be used to monitor and mediate
fair housing complaints.
CDBG ED fund- To account for grants received from the federal government to be used for economic development
loans to qualifying businesses.
HOME IV fund - To account for grants received from the state government to be used for housing rehabilitation.
Special law enforcement fund - To account for revenues received from the sale of forfeited assets acquired during
drug enforcement activities. Expenses are limited to capital items to be used for further drug enforcement activities.
Fair housing partnership - To account for revenues and expenses associated with fair housing complaints.
43
CITY OF SALINA, KANSAS
SPECIAL REVENUE FUNDS - CONTINUED
Police grants fund - To account for revenues from grants which are to be used for special police activities, including
the DARE. program
DARE. donations fund - To account for donations to the DARE. program.
Large system interface fund - To account for grants received for the acquisition of computers and software used in
law enforcement activities.
44
Schedule 4
1 of 2
CITY OF SALINA
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
December 31, 2002
(With comparative totals for December 31, 2001)
Employee
Benefit
Flood & Business
Drainage ImprovemEmt
Improvement District
Tourism
and
Convention
ASSETS
Cash and investments
Receivables
Accounts, net
Taxes
Interest
Notes
Due from other funds
$
612,848 $
257,682 $
4,153 $
5,075
21,164
70
198,483
86
3,224,186
315,478
Total assets
$ 3,837,034 $
573,160 $
25,387 $
203,644
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Retainage payable
Due to other funds
Deferred revenue
$ 170 $ - $
9,018
3,224,186 315,478
3,224,356 324,496
4,138 $
Total liabilities
4,138
Fund balances:
Reserved for encumbrances
Reserved for notes receivable
Unreserved
U ndesig nated
24,629
612,678 224,035 21,249 203,644
612,678 248,664 21,249 203,644
$ 3,837,034 $ 573,160 $ 25,367 $ 203,644
Total fund balances
Total liabilities and fund balances
Schedule 4
1 of 2
Special Bicentennial HUD
Neighborhood Parks and Special Special Bicentennial Center Community
Park Recreation Alcohol Gas Center Event Development
$ 109,811 $ 79,819 $ 33,960 $ 965,969 $ 300,391 $ 43,4Oti $ 52,603
15,599
335,157
1,855 1,349 574 16,321 5,059 889
14,008
$ 111,666 $ 81,168 $ 34,534 $ 1,317,447 $ 321,049 $ 43,40~~ $ 67,500
$
- $
392 $
31,640 $
33,014 $
11,751
36,551 $
- $
392 31,640 44,765 36,551
7,830 342,831 2,660
14,008
111,666 72,946 2,894 929,851 281,838 43,40E~ 53,492
111,666 80,776 2,894 1,272,682 284,498 43,40E~ 67,500
$ 111,666 $ 81,168 $ 34,534 $ 1,317,447 $ 321,049 $ 43,40e~ $ 67,500
See independent auditor's report on the general purpose financial statemenlts.
45
Schedule 4
2 of2
CITY OF SALINA
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
December 31,2002
(With comparative totals for December 31, 2001)
Community
Development Heritage Fair CDBG
Revolving Commission HousinçL- ED
ASSETS
Cash and investments $ 154,523 $ 1,481 $ 223,032 $ 112
Receivables
Accounts
Taxes
Interest 2,611 25 3,ï'68
Notes 14,008
Due from other funds
Total assets $ 171,142 $ 1,506 $ 226,800 $ 112
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ - $ - $ - $ 2,659
Retainage payable
Due to other funds
Deferred revenue
Total liabilities 2,659
Fund balances:
Reserved for encumbrances
Reserved for notes receivable 14,008
Unreserved
U ndesig nated 157,134 1,506 226,800 [2,547]
Total fund balances 171,142 1,506 226,800 [2,547]
Total liabilities and fund balances $ 171,142 $ 1,506 $ 226,800 $ 112
Schedule 4
2 of2
Special Fair Total
HOME Law Housing Police DARE Large System
IV Enforcement Partnership Grants Donations Interface 2002 2001
$ 11 ,469 $ 11,860 $ 1,779 $ 18,561 $ 32,726 $ 4,462 $ 2,92S,721 $3,118,915
3E¡,763 35,935
4,07:1,304 3,853,497
200 314 553 3~1,67 4 28,042
28,016 21,478
1,625
$ 11,469 $ 12,060 $ 1,779 $ 18,875 $ 33,279 $ 4,462 $ 7,09ï',478 $ 7,059,492
$ - $ - $ 3,750 $ - $ - $ 303 $ 112,617 $ 63,103
20,769 5,943
59,417
3,53H,664 3,286,958
3,750 303 3,67~I,050 3,415,421
37i',950 527,749
2B,016 21,478
11 ,469 12,060 [1,971] 18,875 33,279 4,159 3,01B,462 3,094,844
11,469 12,060 [1,971] 18,875 33,279 4,159 3,424,428 3,644,071
$ 11 ,469 $ 12,060 $ 1,779 $ 18,875 $ 33,279 $ 4,462 $ 7,09ï',478 $ 7,059,492
See independent auditor's report on the general purpose financial statements.
46
Schedule 5
1 of 2
CITY OF SALINA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE -
For the Year Ended December 31, 2002
(With comparative totals for the year ended December 31, 2001)
Employee
Benefit
Flood & Business
Drainage Improvement
Improvement District
Tourism
and
Convention
REVENUES:
Taxes
Intergovernmental
Fees and charges
Other local sources
$ 3,255,040 $
330,105 $
- $ 769,578
73,~¡67
~~08 187
73, i'75 769,765
Total revenues
3,255,040
330,105
EXPENDITURES:
Current
General government
Public safety
Public works
Culture and recreation
Public health and sanitation
Community development
Capital outlay
Debt service
Principal
Interest and other charges
Total expenditures
184,509
2,045,094
637,156 28,044
389,420
26,079
118,418 76,889 460,637
234,911
90,000
4,250
3,400,676 357,205 76,889 460,637
[145,636] [27,100] [3:~ 309,128
Excess [deficiency] of revenues
over [under] expenditures
OTHER FINANCING SOURCES [USES]:
Operating transfers in
Operating transfers [out]
[307,091]
[307,091]
[3,1114] 2,037
24,:::63 201,607
Total other financing sources [uses]
Net change in fund balances
[145,636]
[27,100]
Fund balance - January 1
758,314
275,764
Residual equity transfers in [out]
Fund balance - December 31
$
612,678 $
248,664 $
21,249 $
203,644
Schedule 5
1 of 2
Special Bicentennial HUD
Neighborhood Parks and Special Special Bicentennial Center Community
Park Recreation Alcohol Gas Center Event Development
$ - $ - $ - $ - $ - $ - $
122,584 122,584 1 ,488,708
11,100 552,580
4,002 3,532 734 40,809 277 ,403 613,114 6,536
15,102 126,116 123,318 1,529,517 829,983 613,114 6,536
498,508
1,391,417 653,787
122,584
188,363 1,074,662 39,182
188,363 122,584 1,573,170 1,430,599 653,787
15,102 [62,247] 734 [43,653] [600,616] [40,67~ 6,536
507,091
507,091
15,102 [62,247] 734 [43,653] [93,525] [40,673] 6,536
96,564 143,023 2,160 1,316,335 378,023 84,07<8 60,964
$
111,666 $
80,776 $
2,894 $ 1,272,682 $
284,498 $
43,40:~ $
67,500
See independent auditor's report on the general purpose financial statements.
47
Schedule 5
2 of2
CITY OF SALINA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE -
For the Year Ended December 31, 2002
(With comparative totals for the year ended December 31, 2001)
Community
Development Heritage Fair CDBG
Revolving Commission Housin!~ ED
REVENUES:
Taxes $ - $ - $ - $
I ntergovern mental 208,047 18,143
Fees and charges
Other local sources 19,067 55 9,1358 31,659
Total revenues 19,067 55 217,l05 49,802
EXPENDITURES:
Current
General government
Public safety
Public works
Culture and recreation
Public health and sanitation
Community development 70,1359
Capital outlay 81,562
Debt service
Principal
Interest and other charges
Total expenditures 70,1359 81,562
Excess [deficiency] of revenues
over [under] expenditures 19,067 55 146,1346 [31,760]
OTHER FINANCING SOURCES [USES]:
Operating transfers in
Operating transfers [out]
Total other financing sources [uses]
Net change in fund balances 19,067 55 146,846 [31,760]
Fund balance - January 1 152,075 1,451 106,~116 29,213
Residual equity transfers in [out] [26,:~62]
Fund balance - December 31 $ 171,142 $ 1,506 $ 226,800 $ [2,547]
Schedule 5
2 of2
Special Fair Total
HOME Law Housing Police DARE Large System
IV Enforcement Partnership Grants Donations Interface 2002, 2001
$ - $ - $ - $ - $ - $ - $ 4,354,723 $ 3,901,917
61,500 110,738 7,899 2,140,203 2,399,017
63ï',247 624,796
7,761 354 25,000 170 6,150 108 1,04E¡,507 1,346,447
69,261 354 25,000 110,908 6,150 8,007 8,178,680 8,272,177
2,223 18Ei,732 193,021
2,04~¡,094 2,035,598
1, 16~1,708 1,097,852
2,434,624 2,518,534
148,663 179,777
26,971 75~1,774 745,675
3,500 31,164 1 ,65~1,344 1,918,534
90,000 90,000
4,250 8,658
3,500 26,971 31,164 2,223 8,480,189 8,787,649
69,261 [3,146] [1,971] 79,744 6,150 5,784 [301 ,509] [515,472]
507',091 491,634
[91,772] [39Ei,863] [428,401]
[91,772] 108,228 63,233
69,261 [3,146] [1,971] [12,028] 6,150 5,784 [1921,281] [452,239]
[57,792] 15,206 30,903 27,129 [1,625] 3,644,071 4,065,926
[26,362] 30,384
$ 11,469 $ 12,060 $ [1,971] $ 18,875 $ 33,279 $ 4,159 $ 3,424,428 $ 3,644,071
See independent auditor's report on the general purpose financial statements.
48
Schedule 6
1 of 10
CITY OF SALINA, KANSAS
EMPLOYEE BENEFIT SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ACTUAL AND BUDGET
For the fiscal years ended December 31, 2002 and 2001
2002 :2001
Variance Variance
Positive Positive
Actual Budqet rNeqativel Actual j3udqet rNeQativel
Revenues
Taxes
Real estate taxes $ 2,902,703 $2,904,129 $ [1,426] $ 2,360,936 $ 2,351 ,999 $ 8,937
Delinquent taxes 72,587 55,000 17,587 63,528 55,000 8,528
Motor vehicle taxes 279,750 317,629 [37,879] 395,770 409,852 [14,082]
Total taxes 3,255,040 3,276,758 [21,718] 2,820,234 2,816,851 3,383
Other Revenues
Reimbursements 2,000 [2,000] 2,000 [2,000]
Total revenues 3,255,040 3,278,758 [23,718] 2,820,234 2,818,851 1,383
Expenditures
General Government
City commission 1,407 1 ,420 13 1,408 1 ,420 12
City manager 69,768 73,470 3,702 70,274 70,071 [203]
Finance 71,319 78,229 6,910 71,177 71,788 611
Human resources 33,221 35,121 1,900 34,407 33,881 [526]
Total general government 175,715 188,240 12,525 177,266 177,160 [106]
Public Safety
Police 922,511 964,027 41,516 926,534 904,207 [22,327]
Municipal court 84,760 86,992 2,232 85,278 79,287 [5,991]
Fire 959,579 994,611 35,032 942,588 968,540 25,952
Building services 78,244 84,972 6,728 81,198 77,799 [3,399]
Total public safety 2,045,094 2,130,602 85,508 2,035,598 2,029,833 [5,765]
Public Works
Buildings and general improvements 57,844 58,184 340 55,759 55,878 119
Engineering 96,475 97,425 950 91,697 83,239 [8,458]
Streets 242,376 237,592 [4,784] 230,328 230,402 74
Flood works 28,628 30,424 1,796 28,615 28,494 [121]
Traffic control 32,380 33,751 1,371 31,329 31,627 298
Parks 179,453 170,638 [8,815] 164,240 156,475 [7,765]
Total public works 637,156 628,014 [9,142] 601,968 586,115 [15,853]
See independent auditor's report on the general purpose financial statements.
49
Schedule 6
1 of 10
CITY OF SALINA, KANSAS
EMPLOYEE BENEFIT SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ACTUAL AND BUDGET
For the fiscal years ended December 31,2002 and 2001
2002 :W01
Variance Variance
Positive Positive
Actual BudQet rNeQativel Actual !3udQet rNeQativel
$ 26,079 $ 29,912 $ 3,833 $ 28,635 $ 28,667 $ 32
4,194 4,608 414 4,131 4,608 477
3,248 3,074 [174] 2,670 2,678 8
125,841 131,395 5,554 117,188 127,821 10,633
139,294 148,351 9,057 133,252 138,732 5,480
68,953 51,953 [17,000] 53,140 50,492 [2,648]
47,889 46,391 [1 ,498] 43,640 46,731 3,091
389,419 385,772 [3,647] 354,021 371,062 17,041
33,970 35,718 1,748 32,724 33,546 822
53,271 56,270 2,999 44,199 54,413 10,214
31,178 33,812 2,634 29,493 31,629 2,136
118,419 125,800 7,381 106,416 119,588 13,172
Expenditures - continued
Public Health and Sanitation
Cemetery
Culture and Recreation
Swimming pools
Neighborhood centers
Recreation
Bi-Centennial Center
Arts and humanities
Smoky Hill museum
Total culture and recreation
Community Development
Human relations
Planning
Neighborhood services
Total community development
Other
Health insurance
Cash Reserve
Total expenditures
Excess [deficiency] of revenues
over [under] expenditures
Fund balance, January 1
Fund balance, December 31
8,794 10,000 1,206 6,000 10,000 4,000
524,828 524,828 744,410 744,410
3,400,676 4,023,168 622,492 3,309,904 4,066,835 756,931
[145,636] [744,410] 598,774 [489,670] [1,247,984] 758,314
758,314 744,410 13,904 1,247,984 1,247,984
$ 612,678 $ - $612,678 $ 758,314 $ - $ 758,314
See independent auditor's report on the general purpose financial statements.
50
Schedule 6
2 of 10
CITY OF SALINA, KANSAS
FLOOD & DRAINAGE IMPROVEMENT SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ACTUAL AND BUDGET
For the fiscal years ended December 31, 2002 and 2001
2002 :2001
Variance Variance
Positive Positive
Actual Budqet rNeqativel Actual §udqet rNeqativel
Revenues
Taxes
Real estate taxes $ 290,679 $ 290,720 $ [41] $ 277,729 $ ~~76,839 $ 890
Delinquent taxes 6,809 3,000 3,809 5,702 3,000 2,702
Motor vehicle taxes 32,617 37,387 [4,770] 37,549 39,040 [1,491]
Total revenues 330,105 331 ,107 [1,002] 320,980 ~~18,879 2,101
Expenditures
Capital Outlay
Capital outlay 127,369 300,000 172,631 284,675 ~~40,000 [44,675]
Debt service
Principal 90,000 90,000 90,000 90,000
Interest and other charges 4,250 8,200 3,950 8,658 8,658
Total debt service 94,250 98,200 3,950 98,658 98,658
Cash Reserve 148,654 148,654 215,747 215,747
Total expenditures 221,619 546,854 325,235 383,333 Ei54,405 171,072
Excess [deficiency] of revenues
over [under] expenditures 108,486 [215,747] 324,233 [62,353] -.f~35,526] 173,173
Other financing sources [uses]
Operating transfer [out] [48,615] [48,615]
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses] 108,486 [215,747] 324,233 [110,968] [235,526] 124,558
Unreserved fund balance, January 1 124,567 215,747 [91,180] 235,526 235,526
Prior year cancelled encumbrances 9 9
Unreserved fund balance, December 31 233,053 $ - $ 233,053 124,567 $ 124,567
Reconciliation to GAAP
Retainage Payable [9,018] [5,943]
Current Year Encumbrances 24,629 157,140
GAAP Fund Balance, December 31 $ 248,664 $ 275,764
See independent auditor's report on the general purpose financial statements.
51
Schedule 6
3 of 10
CITY OF SALINA, KANSAS
BUSINESS IMPROVEMENT DISTRICT SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ACTUAL AND BUDGET
For the fiscal years ended December 31, 2002 and 2001
2002 2001
Variance Variance
Positive Positive
Actual BudQet rNeQativel Actual !~udQet rNeQativel
Revenues
Fees and charges
Charges for services $ 76,675 $ 82,000 $ [5,325] $ 70,990 $ 82,000 $ [11,010]
Other Revenues
Interest 186 186 207 207
Total revenues 76,861 82,000 [5,139] 71,197 82,000 [10,803]
Expenditures
Community Development
Business Improvement District 76,889 82,000 5,111 54,167 65,013 10,846
Total expenditures 76,889 82,000 5,111 54,167 65,013 10,846
Excess [deficiency] of revenues
over [under] expenditures [28] [28] 17,030 16,987 43
Other financing sources [uses]
Operating transfer [out] [17,000] [17,000]
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses] [28] [28] 30 [13] 43
Unreserved fund balance, January 1 43 43 13 13
Unreserved fund balance, December 31 15 $ - $ 15 43 $ - $ 43
Reconciliation to GAAP
Interest receivable 70 48
Accounts receivable 21,164 24,272
GAAP Fund Balance, December 31 $ 21,249 $ 24,363
See independent auditor's report on the general purpose financial statements.
52
Schedule 6
4 of 10
CITY OF SALINA, KANSAS
TOURISM AND CONVENTION SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ACTUAL AND BUDGET
For the fiscal years ended December 31,2002 and 2001
2002 2001
Variance Variance
Positive Positive
Actual Budqet rNeqativel Actual !3udqet rNeqativel
Revenues
Taxes
Other taxes $ 767,728 $ 775,000 $ [7,272] $ 729,084 $ '775,000 $ [45,916]
Other Revenues
Interest 160 160 470 470
Total revenues 767,888 775,000 [7,112] 729,554 '775,000 [45,446]
Expenditures
Community Development
Tourism 460,637 465,000 4,363 437,449 469,444 31,995
Total expenditures 460,637 465,000 4,363 437,449 469,444 31,995
Excess [deficiency] of revenues
over [under] expenditures 307,251 310,000 [2,749] 292,105 :305,556 [13,451]
Other financing sources [uses]
Operating transfer [out] [307,091] [310,000] 2,909 [291,634] ...1310,000] 18,366
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses] 160 160 471 [4,444] 4,915
Unreserved fund balance, January 1 4,915 4,915 4,444 4,444
Unreserved fund balance, December 31 5,075 $ - $ 5,075 4,915 $ - $ 4,915
Reconciliation to GAAP
Interest receivable 86 59
Taxes receivable 198,483 196,633
GAAP Fund Balance, December 31 $ 203,644 $ 201,607
See independent auditor's report on the general purpose financial statements.
53
Schedule 6
5 of 10
CITY OF SALINA, KANSAS
NEIGHBORHOOD PARK SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ACTUAL AND BUDGET
For the fiscal years ended December 31, 2002 and 2001
2002 2001
Variance Variance
Positive Positive
Actual Budqet rNeqativel Actual ~Iudqet rNeqativel
Revenues
Other Revenues
Licenses and permits $ 11,100 $20,000 $ [8,900] $ 18,102 $ 20,000 $ [1,898]
Interest 3,301 2,000 1,301 3,978 2,000 1,978
Total revenues 14,401 22,000 [7,599] 22,080 22,000 80
Expenditures
Cash Reserve 117,330 117,330 95,330 95,330
Total expenditures 117,330 117,330 95,330 95,330
Excess [deficiency] of revenues
over [under] expenditures 14,401 [95,330] 109,731 22,080 [73,330] 95,410
Unreserved fund balance, January 1 95,410 95,330 80 73,330 73,330
Unreserved fund balance, December 31 109,811 $ - $109,811 95,410 $ - $ 95,410
Reconciliation to GAAP
Interest receivable 1,855 1,154
GAAP Fund Balance, December 31 $111,666 $ 96,564
See independent auditor's report on the general purpose financial statements.
54
Schedule 6
6 of 10
CITY OF SALINA, KANSAS
SPECIAL PARKS AND RECREATION SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ACTUAL AND BUDGET
For the fiscal years ended December 31,2002 and 2001
2002 :2001
Variance Variance
Positive Positive
Actual BudQet rNeQativel Actual §udqet rNeqativel
Revenues
Intergovernmental
Liquor Tax $122,584 $113,216 $ 9,368 $129,058 $111,000 $ 18,058
Other Revenues
Interest 3,892 5,000 [1,108] 4,936 5,000 [64]
Miscellaneous 12,000 [12,000] 12,000 [12,000]
Total other revenues 3,892 17,000 [13,108] 4,936 17,000 [12,064]
Total revenues 126,476 130,216 [3,740] 133,994 128,000 5,994
Expenditures
Capital Outlay
Capital outlay 196,193 100,000 [96,193] 98,793 100,000 1,207
Cash Reserve 164,328 164,328 134,112 134,112
Total expenditures 196,193 264,328 68,135 98,793 234,112 135,319
Excess [deficiency] of revenues
over [under] expenditures [69,717] [134,112] 64,395 35,201 [106,112] 141,313
Unreserved fund balance, January 1 141,314 134,112 7,202 106,113 106,112 1
Unreserved fund balance, December 31 71,597 $ - $ 71,597 141,314 $ - $141,314
Reconciliation to GAAP
Interest receivable 1,349 1,709
Current year encumbrances 7,830
GAAP Fund Balance, December 31 $ 80,776 $143,023
See independent auditor's report on the general purpose financial statements.
55
Schedule 6
7 of 10
CITY OF SALINA, KANSAS
SPECIAL ALCOHOL SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ACTUAL AND BUDGET
For the fiscal years ended December 31,2002 and 2001
2002 2001
Variance Variance
Positive Positive
Actual Budqet rNeqativel Actual j3udoet rNeqativel
Revenues
I ntergovern mental
Liquor tax $122,584 $113,216 $ 9,368 $129,059 $'111,000 $ 18,059
Other Revenues
Interest 186 500 [314] 384 500 [116]
Total revenues 122,770 113,716 9,054 129,443 '111,500 17,943
Expenditures
Public Health and Sanitation
Special alcohol 122,584 126,842 4,258 151,142 '122,207 [28,935]
Cash Reserve 13,126 13,126
Total expenditures 122,584 126,842 4,258 151,142 '135,333 [15,809]
Excess [deficiency] of revenues
over [under] expenditures 186 [13,126] 13,312 [21,699] [23,833] 2,134
Unreserved fund balance, January 1 2,134 13,126 [10,992] 23,833 23,833
Unreserved fund balance, December 31 2,320 $ - $ 2,320 2,134 $ - $ 2,134
Reconciliation to GAAP
Interest receivable 574 26
GAAP Fund Balance, December 31 $ 2,894 $ 2,160
See independent auditor's report on the general purpose financial statements,
56
Schedule 6
8 of 10
CITY OF SALINA, KANSAS
SPECIAL GAS TAX SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ACTUAL AND BUDGET
For the fiscal years ended December 31,2002 and 2001
2002 :2001
Variance Variance
Positive Positive
Actual BudQet rNeQativel Actual !;ludQet rNeQativel
Revenues
Intergovernmental
Other Intergovernmental $ 1,523,456 $ 1,550,000 $ [26,544] $1,516,836 $ 1,525,000 $ [8,164]
Other Revenues
Interest 35,926 50,000 [14,074] 49,083 75,000 [25,917]
Miscellaneous 25,900 25,900
Total other revenues 35,926 50,000 [14,074] 74,983 75,000 [17]
Total revenues 1,559,382 1,600,000 [40,618] 1,591,819 1,600,000 [8,181]
Expenditures
Streets 294,491 339,645 45,154 430,521 322,145 [108,376]
Capital Outlay
Capital outlay 1,299,117 1,340,000 40,883 1,203,994 1,500,000 296,006
Cash Reserve 248,738 248,738 328,383 328,383
Total expenditures 1,593,608 1,928,383 334,775 1,634,515 2,150,528 516,013
Excess [deficiency] of revenues
over [under] expenditures [34,226] [328,383] 294,157 [42,696] [550,528] 507,832
Unreserved fund balance, January 1 606,892 328,383 278,509 550,528 550,528
Prior year cancelled encumbrances 17,458 17,458 68,676 68,676
Residual equity transfers in [out] 30,384 30,384
Unreserved fund balance, December 31 590,124 $ - $590,124 606,892 $ - $ 606,892
Reconciliation to GAAP
Interest receivable 16,321 11,438
Taxes receivable 335,157 369,906
Retainage payable [11,751]
Current year encumbrances 342,831 328,099
GAAP Fund Balance, December 31 $ 1 ,272,682 $1,316,335
See independent auditor's report on the general purpose financial statements.
57
Schedule 6
9 of 10
CITY OF SALINA, KANSAS
BICENTENNIAL CENTER SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ACTUAL AND BUDGET
For the fiscal years ended December 31, 2002 and 2001
2002 2001
Variance Variance
Positive Positive
Actual Budoet [Neoativel Actual .Budoet [Neoativel
Revenues
Fees and Charges
Merchandise sales $ 548,644 $ 588,000 $ [39,356] $ 524,741 $ 585,000 [60,259]
Rents and royalties 269,229 225,000 44,229 253,220 225,000 28,220
Total fees and charges 817,873 813,000 4,873 777,961 810,000 [32,039]
Other Revenues
Interest 7,660 16,000 [8,340] 18,352 16,000 2,352
Miscellaneous 367 367
Internal charges 200,000 [200,000] 200,000 [200,000]
Total other revenues 8,027 216,000 [207,973] 18,352 216,000 [197,648]
Total revenues 825,900 1,029,000 [203,100] 796,313 1,026,000 [229,687]
Expenditures
Culture and Recreation
Bi-Centennial Center 1,362,408 1,333,398 [29,010] 1,304,628 1,295,285 [9,343]
Capital Outlay
Capital outlay 29,872 111,450 81,578 142,452 188,100 45,648
Cash Reserve 206,697 206,697 312,545 312,545
Total expenditures 1,392,280 1,651,545 259,265 1,447,080 1,795,930 348,850
Excess [deficiency] of revenues
over [under] expenditures [566,380] [622,545] 56,165 [650,767] [769,930] 119,163
Other financing sources [uses]
Operating transfer in 507,091 310,000 197,091 491,634 310,000 181,634
Total other financing sources [uses] 507,091 310,000 197,091 491,634 310,000 181,634
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses] [59,289] [312,545] 253,256 [159,133] [459,930] 300,797
Unreserved fund balance, January 1 318,939 312,545 6,394 478,072 412,939 65,133
Prior year cancelled encumbrances 1,530 1,530
Unreserved fund balance, December 31 261,180 $ - $ 261,180 318,939 $ [46,991] $ 365,930
Reconciliation to GAAP
Interest receivable 5,059 4,911
Accounts receivable 15,599 11,663
Current year encumbrances 2,660 42,510
Fund Balance, December 31 $ 284,498 $ 378,023
See independent auditor's report on the general purpose financial statements.
58
Schedule 6
10 of 10
CITY OF SALINA, KANSAS
FAIR HOUSING SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ACTUAL AND BUDGET
For the fiscal years ended December 31,2002 and 2001
2002
Actual
Variance
Positive
rNeQativel
BudQet
Revenues
Intergovernmental
Grants
$208,853 $65,000 $143,853
Other Revenues
Interest
Total other revenues
6,355
6,355
2,631
2,631
3,724
3,724
Total revenues
215,208
67,631
147,577
Expenditures
Community Development
Human relations
81,000
10,141
70,859
Cash Reserve
65,683
65,683
Total expenditures
70,859
75,824
146,683
Excess [deficiency] of revenues
over [under] expenditures
[79,052]
223,401
144,349
Unreserved fund balance, January 1
105,045
25,993
79,052
Residual equity transfers in [out]
[26,362]
[26,362]
Unreserved fund balance, December 31
223,032 $
- $ 223,032
Reconciliation to GAAP
I nterest receivable
3,768
GAAP Fund Balance, December 31
$ 226,800
2001
Actual
Variance
Positive
!;ludQet rNeQativel
$ 84,846 $ 85,000 $
[154]
6,009 - 2,631
6,009 - 2,631
3,378
3,378
90,855 --.!97,631
3,224
65,386
15,614
81,000
~79,052
79,052
65,386 ~30,052
94,666
25,469 -172,421]
97,890
79,576
'79,576
[7,155]
7,155
105,045 $ ===-=. $105,045
1,271
$106,316
See independent auditor's report on the general purpose financial statements.
59
CITY OF SALINA, KANSAS
BOND AND INTEREST DEBT SERVICE FUND
The debt service fund is used to account for the accumulation of resources and payment of general obligation bond
principal and interest from governmental resources and special assessment bond principal and interest from special
assessment levies when the City is obligated in some manner for the payment.
60
Schedule 7
ASSETS
Cash and investments
Receivables
Interest
Taxes
Cash with fiscal agent
Total assets
LIABILITIES AND FUND BALANCES
CITY OF SALINA, KANSAS
BOND AND INTEREST DEBT SERVICE FUND
COMPARATIVE BALANCE SHEETS
December 31,2002 and 2001
Liabilities
Deferred revenue
Matured principal and interest payable
Total liabilities
Fund balances
Unreserved
Designated for debt service
Total fund balances
Total liabilities and fund balances
2002 2001
$ 983,414 $ 945,210
16,1316 11,434
1,747,1396 1,702,854
85,269 15,145
$ 2,832,!~95 $ 2,674,643
$ 1,747,1396 $ 1,702,854
85,269 15,145
1,832,B65
1,717,999
1,000,030 956,644
1,000,030 956,644
$ 2,832,!~ $ 2,674,643
See independent auditor's report on the general purpose financial statements.
61
Schedule 8
CITY OF SALINA, KANSAS
BOND AND INTEREST DEBT SERVICE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
For the fiscal years ended December 31, 2002 and 2001
Revenues
Taxes
Special assessments
Other revenues
2002 2001
$ 1,856,Ei10 $ 1,715,833
1,288,SI61 1,320,324
116,2:61 111,475
3,262,032 3,147,632
Total revenues
Expenditures
Debt service
Principal
Interest and other charges
Residual equity transfers in
Residual equity transfers [out]
2,277,~i22 2,381,449
941 ,~i24 844,372
3,218,646 3,225,821
43,~i86 [78,189]
36,384
36,384
43,2:86 [41,805]
956,644 942,981
209,387
[153,919]
$ 1,000,030 $ 956,644
Total expenditures
Excess [deficiency] of revenues over [under] expenditures
Other financing sources [uses]
Operating transfers in
Total other financing sources [uses]
Excess [deficiency] of revenues and other sources over
[under] expenditures and other [uses]
Fund balances, January 1
Fund balances, December 31
See independent auditor's report on the general purpose financial statements.
62
Schedule 9
Revenues
Taxes
Real estate taxes
Delinquent taxes
Motor vehicle taxes
Total taxes
Other Revenues
Special assessments
Interest
Other financing
Total other revenues
Total revenues
Expenditures
Debt Service
Principal
Interest and other charges
Cash Reserve
Total expenditures
Excess [deficiency] of revenues
over [under] expenditures
Other financing sources [uses]
Operating transfer in
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]
Unreserved fund balance,
January 1
Residual equity transfers in
Residual equity transfers [out]
Unreserved fund balance,
December 31
Reconciliation to GAAP
Interest Receivable
GAAP Fund Balance, December 31
CITY OF SALINA, KANSAS
BOND AND INTEREST DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ACTUAL AND BUDGET
For the fiscal years ended December 31,2002 and 2001
2002
Actual
Budqet
Variance
Positive
rNeqativel
2,533
[11,386]
[24,936]
[33,789]
68,960
[11,112]
42,191
100,039
66,250
10,007
[12,363]
758,665
756,309
822,559
822,559
160,855
- $
983,414
2001
Actual
Buc!Qm
$ 1,654,301 $ 1,651,768 $
28,614 40,000
173,896 198,832
1,856,811 1,890,600
1,288,960
68,888
42,191
1,400,039
1,220,000
80,000
1,300,000
$ 1,477,859 $ 1,4n,322 $
30,403 40,000
207,571 ---.1.:18,165
1,715,833 ~m,487
1,320,324 1,2!55,000
92,810 130,000
7,231
--
1 ,420,365 ~~5,000
3,136, 198 ~)5,487
2,381,449
844,372
2,3131,631
842,482
3,256,850
3,190,600
----B34,355
3,225,821 ~)8,468
[89,623] ~~2,981]
36,384
--
2,277,322
941,324
2,287,329
928,961
[53,239]
[942,981]
758,665
3,218,646
3,974,955
942,981
942,981
38,204
[784,355]
209,387
[153,919] --
945,210 $ - $
11,434
$
956,644
38,204
[784,355]
See independent auditor's report on the general purpose financial statements.
945,210
784,355
983,414 $
16,616
$ 1,000,030
63
Variance
Positive
rNeqativel
5,537
[9,597]
[10,594]
[14,654]
65,324
12,810
7,231
85,365
70,711
182
[1,890]
784,355
782,647
853,358
36,384
889,742
209,387
[153,919]
945,210
CITY OF SALINA, KANSAS
CAPITAL PROJECTS FUND
Capital project funds are used to account for the acquisition and construction of major capital facilities other than
those financed by proprietary funds and trust funds.
64
Schedule 10
ASSETS
Assets
Cash and investments
Interest receivable
Total assets
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
Retainage payable
Due to other funds
Total liabilities
Fund balances
Reserved for encumbrances
Unreserved
Undesignated
Total fund balances
Total liabilities and fund balances
CITY OF SALINA, KANSAS
CAPITAL PROJECTS FUND
COMPARATIVE BALANCE SHEETS
December 31, 2002 and 2001
2002 2001
$ 628,1'91 $
15,1'29 3,004
$ 644,~j20 $ 3,004
$ - $ 276
149,873 43,355
735,805
149,873 779,436
1,733,872 1,595,590
[1,239,225] [2,372,022]
494,Ei47 [776,432]
$ 644, Ei20 $ 3,004
See independent auditor's report on the general purpose financial statements.
65
Schedule 11
CITY OF SALINA, KANSAS
CAPITAL PROJECTS FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
For the fiscal years ended December 31,2002 and 2001
Revenues
Special assessments
Other revenues
2002 2001
$ 9,297 $ 49,690
40,085 40,308
49,3,82 89,998
Total revenues
Expenditures
Capital outlay
Contractual
Capital outlay
Debt service
Interest expense
Bond issuance costs
Residual equity transfers in
Residual equity transfers [out]
85,198 217,106
4,580,9146 672,064
327,707
5,485 41 ,732
4,671,629 1,258,609
[4,622,~~ [1,168,611]
5,893,3,26 5,350,000
68,673
5,893,326 5,418,673
1,271,079 4,250,062
[776,432] [4,881,470]
[26,248]
[776,432] [4,907,718]
158,457
[277,233]
$ 494,647 $ [776,432]
Total expenditures
Excess [deficiency] of revenues over [under] expenditures
Other financing sources [uses]
Bond proceeds
Operating transfers in
Total other financing sources [uses]
Excess [deficiency] of revenues and other sources
over [under] expenditures and other [uses]
Fund balances, January 1
Prior period adjustment
Fund balances, Restated January 1
Fund balances, December 31
See independent auditor's report on the general purpose financial statements.
66
This page intentionally left blank.
CITY OF SALINA, KANSAS
ENTERPRISE FUNDS
Enterprise funds are used to account for operations that are financed and operated in a manner similar to private
business enterprises, where the intent of the governing body is that the costs of providing goods or services to the
general public on a continuing basis be financed or recovered primarily through user charges; or where the
governing body has decided that periodic determination of net income is appropriate for accountability purposes.
Sanitation fund - To account for the operations of the City's refuse collection service.
Solid waste fund - To account for the activities of the City's landfill.
Golf course fund - To account for the operations of the municipal golf course.
Water and sewer fund - To account for the activities of the City's water and sewer operations.
67
Schedule 12
CITY OF SALINA
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
December 31, 2002
(With comparative totals for December 31,2001)
ASSETS
Cash and investments
Accounts receivable
Interest receivable
Inventory and prepaid supplies
Restricted cash and investments
Fixed assets
land
land improvements
Water plant and equipment
Sewerage plant and equipment
Equipment
Vehicles
Buildings
Construction in progress
Accumulated depreciation
Deferred charges
Total assets
Solid Waste Golf Course
Sanitation Disposal Division
$ 495,932 $ 2,500,061 $ 183,610
95,106 15€i,725
8,379 4~~,238 3,097
19,281
18,000 120,000 15,000
6,22i',862 1,080,613
126,886 958,755 776,474
639,656 94~¡,304 50,062
354,581 225,231
HI,239
[356,003] [4,221>,232] [1,028,729]
~¡,651
$ 1,027,956 $ 7,10~¡,184 $ 1,324,639
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
Retainage payable
Accrued compensated absences
Meter deposits payable
Payable from restricted assets
Accrued interest payable
Revenue bonds payable - current
loans payable - current
General obligation bonds payable - current
Temporary notes payable - current
Capital leases payable - current
loans payable
General obligation bonds payable
Revenue bonds payable
landfill closure and postclosure
Total liabilities
$ 9,912 $ 12~1,818 $ 11,581
~~, 138
122,873 ~~,422 53,625
€i,356 1,591
23~j,859 21,526
Fund balances
Contributed capital
Retained earnings
Reserved for bond retirement
Reserved for postclosure care costs
Unreserved
Total fund balances
144,946 60,000
1,164,833
132,785 1,680,372 148,323
74,579 11 ~1,672 229,950
33ۓ,423
820,592 4,974,717 946,366
895,171 5,424,812 1,176,316
$ 1,027,956 $ 7,10~i,184 $ 1,324,639
Total liabilities and fund balances
Total
Water and
Sewer 2002 2001
$ 9,196,879 $ 12,376,482 $11,292,180
615,946 867,777 959,026
173,849 227,563 174,729
433,155 452,436 467,494
1,099,224 1,099,224 3,151,913
361,050 514,050 514,050
7,308,475 7,308,475
42,090,806 42,090,806 41,922,811
40,671,942 40,671,942 40,374,074
437,923 2,300,038 2,358,949
1,635,022 1,654,456
579,812 579,812
5,235,948 5,255,187 3,004,037
[37,191,308] [42,801,272] [40,302,138]
427,085 432,736 408,162
$ 63,552,499 $ 73,010,278 $ 73,868,030
$ 253,824 $ 399,135 $ 250,350
220,770 222,908 182,506
401,711 580,631 524,761
99,113 99,113 94,360
216,673 224,620 327,255
575,000 575,000 885,000
211,427 211,427 124,415
782,135 1,039,520 805,835
935,000
33,354
7,362,829 7,362,829 5,394,514
5,943,287 6,148,233 4,252,754
6,215,000 6,215,000 12,100,000
1,164,833 1,067,866
22,281,769 24,243,249 26,977,970
9,433,302 9,851,503 8,812,334
1,114,957 1,114,957 1,426,441
336,423 283,720
30,722,471 37,464,146 36,367,565
41,270,730 48,767,029 46,890,060
$ 63,552,499 $ 73,010,278 $ 73,868,030
See independent auditor's report on the general purpose financial statements.
68
Schedule 12
Schedule 13
CITY OF SALINA, KANSAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS
For the fiscal year ended December 31, 2002
(With comparative totals for the fiscal year ended December 31, 2001)
Income [loss] before operating transfers
Solid Waste Golf Course
Sanitation Disposal Division
$ 1,637,689 $ 2,171,1102 $ 836,450
500 ~jOO 475
91 38,E¡29 30,183
1,638,280 2,210,~~31 867,108
1,586,755 1,292,'133
771,815
67,558 757,019 61,099
1,654,313 2,049,'152 832,914
[16,033] 161,079 34,194
20,208 90,861 7,604
[25,239] [4,539]
[3,000]
20,208 62,Eì22 3,065
4,175 223, i'01 37,259
Operating revenues
Charges for services
Reimbursements
Miscellaneous
Total operating revenues
Operating expenses
Public works
Recreation
Depreciation
Total operating expenses
Operating income [loss]
Nonoperating revenues [expenses]
Use of money and property
Debt service
Gain [loss] on disposition of fixed assets
Total nonoperating revenues [expenses]
Operating transfers
Transfers in
Transfers [out]
Total operating transfers
Net income [loss]
4,175
223,i'01
37,259
Retained earnings, January 1
816,417
5,087,439
909,107
Prior period adjustment
Retained earnings, restated January 1
816,417
5,087,439
909,107
Residual equity transfer in
Residual equity transfer out
Retained earnings, December 31
$
820,592 $ 5,311,1:40 $
946,366
Total
Water and
Sewer 2002 2001
$ 12,564,631 $ 17,209,872 $ 16,094,858
776,291 777,766 379,393
94,734 163,637 120,038
13,435,656 18,151,275 16,594,289
9,167,908 12,046,796 11,398,244
771,815 693,198
2,460,471 3,346,147 3,348,739
11,628,379 16,164,758 15,440,181
1,807,277 1,986,517 1,154,108
325,583 444,256 847,592
[952,299] [982,077] [1,271,759]
[130,705] [133,705] [153,889]
[757,421] [671,526] [578,056]
1,049,856 1,314,991 576,052
2,564,181 2,564,181 2,087,849
[2,626,681] [2,626,681] [2,107,907]
[62,500] [62,500] [20,058]
987,356 1,252,491 555,994
31,264,763 38,077,726 36,878,121
[396,211] [396,211] 643,611
30,868,552 37,681,515 37,521,732
3,663,545 3,663,545
[3,682,025] [3,682,025]
$ 31,837,428 $ 38,915,526 $ 38,077,726
See independent auditor's report on the general purpose financial statements.
69
Schedule 13
Schedule 14
1 of 2
CITY OF SALINA, KANSAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
For the fiscal year ended December 31, 2002
(With comparative totals for the fiscal year ended December 31, 2001)
Cash flows from operating activities
Cash received from customers and users
Cash received for quasi-external transactions
Cash paid to employees for services
Cash paid to other suppliers of goods or services
Cash paid for quasi-external transactions
Other operating receipts
Net cash provided by [used in] operating activities
Solid Waste Golf Course
Sanitation Disposal Division
$ 1,643,032 $ 2,199,E¡29 $ 836,925
41 ,~194
[759,789] [442, n9] [375,608]
[722,329] [670, '144] [352,224]
[91,873] [130,253] [30,000]
91 38,Eì29 30,183
69,132 1,036,476 109,276
[121,370] [121,B62] [26,244]
29,326 388
Cash flows from capital and related financing activities
Purchase and construction of fixed assets
Contributed capital
Proceeds from issuance of debt
Costs from issuance of debt
Principal payments - temporary notes
Principal payments - general obligation bonds
Principal payments - revenue bonds
Principal payments - capital leases
Interest paid
Principal payments - loans payable
Net cash used in capital and related financing activities
[237,400] [21,488]
[33,354]
[28,450] [4,894]
[92,044] [387,~!!£J [85,592]
17,889 70,170 6,366
Cash flows from investing activities
Interest received
Cash flows from noncapital financing activities
Residual equity transfer in
Residual equity transfer out
Operating transfer in
Operating transfer [out]
Net cash provided by [used in] noncapital financing activities
Net increase [decrease] in cash and cash equivalents
[5,023] 718,Ei34 30,050
500,955 1,781,227 153,560
$ 495,932 $ 2,500,061 $ 183,610
$ 495,932 $ 2,500,061 $ 183,610
$ 495,932 $ 2,500,061 $ 183,610
Cash and cash equivalents, January 1
Cash and cash equivalents, December 31
Cash and investments
Restricted cash and investments
Total cash and cash equivalents
Total
Water and
Sewer 2002 2001
$ 13,357,907 $ 18,037,493 $ 16,395,922
41,394
[3,200,447] [4,778,623] [4,204,040]
[5,172,102] [6,916,799] [7,046,267]
[509,225] [761,351] [634,328]
94,734 163,637 317,701
4,570,867 5,785,751 4,828,988
[3,625,753] [3,895,329] [4,812,394]
1,009,155 1,038,869 1,830
3,887,353 3,887,353 4,142,937
[94,011] [94,011]
[935,000] [935,000] [1,400,000]
[688,720] [947,608] [818,551]
[4,882,400] [4,882,400] [835,000]
[33,354] [31,646]
[1,051,368] [1,084,712] [1,140,396]
[124,415] [124,415] [119,328]
[6,505,159] [7,070,607] [5,012,548]
303,024 397,449 672,854
3,663,545 3,663,545
[3,682,025] [3,682,025]
2,564,181 2,564,181 2,087,849
[2,626,681] [2,626,681] [2,107,907]
[80,980] [80,980] [20,058]
[1,712,248] [968,387] 469,236
12,008,351 14,444,093 13,974,857
$ 10,296,103 $ 13,475,706 $ 14,444,093
$ 9,196,879 $ 12,376,482 $ 11,292,180
1,099,224 1,099,224 3,151,913
$ 10,296,103 $ 13,475,706 $ 14,444,093
See independent auditor's report on the general purpose financial statements.
70
Schedule 14
1 of 2
Schedule 14
2 of2
CITY OF SALINA, KANSAS
COMBINING STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES, SIMILAR TRUST FUNDS AND
DISCRETELY PRESENTED COMPONENT UNITS
For the fiscal year ended December 31,2002
(With comparative totals for the fiscal year ended December 31, 2001)
Sanitation
Solid Waste
Disposal
Golf Course
Division
Reconciliation of operating [loss] income to net cash
provided by [used in] operating activities
Operating income [loss]
$
[16,033] $
161,079 $
34,194
Adjustments to reconcile operating income [loss] to
net cash provided by [used in] operating activities
Depreciation expense
[Increase] decrease in accounts receivable
[Increase] decrease in inventory
Increase [decrease] in accounts payable
Increase [decrease] in retainage payable
Increase [decrease] in accrued compensated absences
Increase [decrease] in meter deposits payable
Increase [decrease] in accrued landfill closure
and postclosure care costs
Net cash provided by [used in] operating activities
67,558 757,019 61,099
4,843 69,421
2,583
4,299 [11 :150] 5,274
2,138
8,465 [38,H98] 6,126
96,~167
$ 69,132 $ 1,036,476 $ 109,276
Total
Water and
Sewer
2002
2001
$ 1,807,277 $ 1,986,517 $ 1,154,108
2,460,471 3,346,147 3,348,739
16,985 91,249 119,335
12,475 15,058 44,428
150,363 148,786 8,487
38,265 40,403 80,743
80,277 55,870 46,672
4,754 4,754 2,354
96,967 24,122
$ 4,570,867 $ 5,785,751 $ 4,828,988
See independent auditor's report on the general purpose financial statements.
71
Schedule 14
2 of2
Schedule 15
10f4
CITY OF SALINA, KANSAS
SANITATION ENTERPRISE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - ACTUAL AND BUDGET
For the fiscal years ended December 31, 2002 and 2001
2002 2001
Variance Variance
Positive Positive
Actual Budaet rNeaativel Actual !3udaet rNeaativel
Revenues
Fees and Charges
Charges for services $1,639,151 $ 1,645,000 $ [5,849] $1,616,874 $1,700,000 $ [83,126]
Other Revenues
Interest 17,889 20,000 [2,111] 24,284 25,000 [716]
Miscellaneous 591 10,000 [9,409] 41 10,000 [9,959]
Total other revenues 18,480 30,000 [11,520] 24,325 35,000 [10,675]
Total revenues 1,657,631 1,675,000 [17,369] 1,641,199 1,735,000 [93,801]
Expenditures
Public Health and Sanitation
Sanitation 1,555,539 1,552,839 [2,700] 1,474,993 1,480,122 5,129
Capital Outlay
Capital outlay 111,414 124,800 13,386 128,849 136,300 7,451
Cash Reserve 510,924 510,924 513,563 513,563
Total expenditures 1,666,953 2,188,563 521,610 1 ,603,842 2,129,985 526,143
Excess [deficiency] of revenues
over [under] expenditures [9,322] [513,563] 504,241 37,357 [394,985] 432,342
Unreserved fund balance, January 1 495,342 513,563 [18,221] 449,985 406,859 43,126
Prior year encumbrances 8,000 8,000
Unreserved fund balances, December 31 $ 486,020 $ - $486,020 $ 495,342 $ 11,874 $ 483,468
See independent auditor's report on the general purpose financial statements.
72
CITY OF SALINA, KANSAS
SOLID WASTE DISPOSAL ENTERPRISE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - ACTUAL AND BUDGET
For the fiscal years ended December 31, 2002 and 2001
Actual
Revenues
Fees and Charges
Charges for services
2002
Budqet
Variance
Positive
INeqativel
$2,199,129 $2,000,000 $ 199,129
Other Revenues
Interest
Miscellaneous
Total other revenues
61,060
39,129
100,189
Total revenues
2,299,318
Expenditures
Public Health and Sanitation
Solid waste
Hazardous waste disposal
Total public health and sanitation
1,304,590
69,781
1,374,371
Debt Service
Principal
Interest
Total debt service
237,412
28,438
265,850
Capital Outlay
Capital outlay
168,805
Cash Reserve
Total expenditures
1,809,026
Excess [deficiency] of revenues
over [under] expenditures
490,292
Unreserved fund balances, January 1
1,308,029
Prior year encumbrances
55,110
Unreserved fund balances, December 31 $1,853,431 $
50,000
20,000
70,000
2,070,000
1,233,831
81,363
1,315,194
241,816
28,437
270,253
343,000
1,385,731
3,314,178
[1,244,178]
1,244,178
11,060
19,129
30,189
229,318
[70,759]
11,582
[59,177]
4,404
[1]
4,403
174,195
1,385,731
1,505,152
1,734,470
63,851
55,110
- $1,853,431
2001
Actual
ê;udqet
$2,045,460 $2,000,000 $
82,154 70,000
24,356 - 20,000
106,510 - 90,000
2,151,970 --1J)90,000
1,192,682 1,238,710
74,436 - 83,356
1,267,118 U122,066
741,829 i'41,816
58,090 - 58,088
799,919 ----.1'99,904
269,732
486,000
----.1'62,877
2,336,769 3,~170,847
[184,799] [1,280,847]
1,465,479
1,280,847
27,349
--
Schedule 15
2 of4
Variance
Positive
INeqativel
45,460
12,154
4,356
16,510
61,970
46,028
8,920
54,948
[13]
[2]
[15]
216,268
762,877
1,034,078
1,096,048
184,632
27,349
$1,308,029 L~ $1,308,029
See independent auditor's report on the general purpose financial statements.
73
Schedule 15
3 of4
CITY OF SALINA, KANSAS
GOLF COURSE DIVISION ENTERPRISE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - ACTUAL AND BUDGET
For the fiscal years ended December 31, 2002 and 2001
2002 2001
Variance Variance
Positive Positive
Actual Budqet rNeqativel Actual ~udqet rNeqativel
Revenues
Taxes
General sales tax $ 26,731 $ 27,000 $ [269] $ 25,117 $ 26,000 $ [883]
Fees and Charges
Recreational fees 639,102 681,500 [42,398] 605,346 E¡80,200 [74,854]
Merchandise sales 170,618 189,000 [18,382] 168,793 :W3,000 [34,207]
Rents and royalties 5,000 [5,000] 4,910 5,000 [90]
Total fees and charges 809,720 875,500 [65,780] 779,049 888,200 [109,151]
Other Revenues
Interest 5,129 3,000 2,129 7,201 8,000 [799]
Reimbursements 475 200 275 200 [200]
Miscellaneous 30,183 6,000 24,183 11,648 3,000 8,648
Total other revenues 35,787 9,200 26,587 18,849 11,200 7,649
Total revenues 872,238 911,700 [39,462] 823,015 ~125,400 [102,385]
Expenditures
Culture and Recreation
Golf course 797,469 830,195 32,726 676,691 Ei25,732 149,041
Debt Service
Principal 21,546 21,526 [20] 21,722 21 ,703 [19]
Interest 4,894 4,889 [5] 5,838 5,833 [5]
Total debt service 26,440 26,415 [25] 27,560 27,536 [24]
Capital Outlay
Capital outlay 24,790 [24,790] 52,755 67,289 14,534
Cash Reserve 115,796 115,796 81,686 81,686
Total expenditures 848,699 972,406 123,707 757,006 1,002,243 245,237
Excess [deficiency] of revenues
over [under] expenditures 23,539 [60,706] 84,245 66,009 [76,843] 142,852
Unreserved fund balances, January 1 109,326 60,706 48,620 43,317 76,843 [33,526]
Unreserved fund balances, December 31 $132,865 $ - $132,865 $109,326 $ - $ 109,326
See independent auditor's report on the general purpose financial statements.
74
Schedule 15
4 of4
CITY OF SALINA, KANSAS
WATER AND SEWER ENTERPRISE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - ACTUAL AND BUDGET
For the fiscal years ended December 31, 2002 and 2001
2002 :2001
Variance Variance
Positive Positive
Actual Budaet INeaativel Actual I3udaet INeaativel
Revenues
Fees and Charges
Charges for services $12,380,117 $11,717,650 $ 662,467 $11,614,323 $ 11,030,000 $ 584,323
Other Revenues
Interest 222,210 275,000 [52,790] 309,676 275,000 34,676
Reimbursements 241,112 241,112 107,213 107,213
Miscellaneous 217,002 218,000 [998] 198,471 218,000 [19,529]
Total other revenues 680,324 493,000 187,324 615,360 493,000 122,360
Total revenues 13,060,441 12,210,650 849,791 12,229,683 11,523,000 706,683
Expenditures
Water and Wastewater
Water 6,125,466 8,587,182 2,461,716 5,741,060 :;,842,180 101,120
Sewer 2,329,749 2,268,476 [61,273] 2,396,923 2,127,454 [269,469]
Total water and wastewater 8,455,215 10,855,658 2,400,443 8,137,983 7' ,969,634 [168,349]
Debt Service
Interest and other 1,000 1,000 920 1,000 80
Capital Outlay
Capital outlay 1,452,848 2,128,400 675,552 1,591,315 1,705,300 113,985
Cash Reserve 4,306,640 4,306,640 ::,,804,990 3,804,990
Total expenditures 9,908,063 17,291,698 7,383,635 9,730,218 1 ::,,480,924 3,750,706
Excess [deficiency] of revenues
over [under] expenditures 3,152,378 [5,081,048] 8,233,426 2,499,465 --.U ,957,924] 4,457,389
Other financing sources [uses]
Operating transfers [out] [2,626,681] [2,596,993] [29,688] [2,107,907] [2,175,980] 68,073
Sale of assets 7 7 117 117
Total other financing sources [uses] [2,626,674] [2,596,993] [29,681] [2,107,790] ~~,175,980] 68,190
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses] 525,704 [7,678,041] 8,203,745 391,675 [4,133,904] 4,525,579
Unreserved fund balances, January 1 5,739,483 7,678,041 [1,938,558] 5,230,194 4,133,904 1,096,290
Prior year cancelled encumbrances 20,524 20,524 117,614 117,614
Unreserved fund balances, December 31 $ 6,285,711 $ - $ 6,285,711 $ 5,739,483 $ - $ 5,739,483
See independent auditor's report on the general purpose financial statements.
75
This page intentionally left blank.
CITY OF SALINA, KANSAS
INTERNAL SERVICE FUNDS
Internal service funds are used to account for the financing of goods or services provided by one agency to other
departments or agencies of the government and to other governmental units on a cost reimbursement basis.
Risk management fund - To account for the accumulation and allocation of costs associated with risk management
activities and the purchase of various forms of insurance.
Workers' compensation reserve fund - To account for the costs of providing a partially self-insured workers'
compensation plan and for accumulating the necessary reserve amounts.
Health insurance fund - To account for the costs of providing a partially self-insured health insurance and for
accumulating the necessary reserve amounts.
Central garage fund - To account for the accumulation and allocation for costs associated with the City's centralized
vehicle repair shop.
Information services fund - To account for the accumulation and allocation of costs associated with electronic data
processing.
76
Schedule 16
CITY OF SALINA, KANSAS
INTERNAL SERVICE FUNDS
COMBINING BALANCE SHEET
December 31,2002
(With comparative totals for December 31,2001)
ASSETS
Workers'
Risk Compensation
Management Reserve!
Health
Insurance
Cash and investments
Interest receivable
Inventory
Fixed assets
Equipment
Vehicles
Buildings
Accumulated depreciation
$
215,916 $
3,648
848,ï'71 $
14,~141
422,117
7,132
Total assets
$
219,564 $
863,112 $
429,249
LIABILITIES AND EQUITY
Liabilities
Accounts payable
Accrued compensated absences
Accrued claims payable
Capital leases payable - current
$ 3,593 $ - $ 26,086
144,~164 447,253
3,593 144,Ø64 473,339
Total liabilities
Equity
Contributed capital
Retained earnings
Unreserved
215,971 718,148 [44,090]
215,971 718,148 [44,090]
$ 219,564 $ 863,112 $ 429,249
Total equity
Total liabilities and equity
Total
Central Information
Garage Services 2002 2001
$ 273,894 $ 742,212 $ 2,502,910 $ 2,988,183
4,628 12,540 42,289 36,147
62,536 62,536 40,339
161,728 1,353,927 1,515,655 1,477,633
13,911 13,911 13,911
22,072 22,072 22,072
[133,045] [1,153,699] [1,286,744] [1,200,965]
$ 405,724 $ 954,980 $ 2,872,629 $ 3,377,320
$ 64,740 $ 8,151 $ 102,570 $ 70,119
13,774 24,252 38,026 43,802
592,217 443,506
98,743
78,514 32,403 732,813 656,170
17,407 626,858 644,265 643,469
309,803 295,719 1,495,551 2,077,681
327,210 922,577 2,139,816 2,721,150
$ 405,724 $ 954,980 $ 2,872,629 $ 3,377,320
See independent auditor's report on the general purpose financial statements.
77
Schedule 16
Schedule 17
CITY OF SALINA, KANSAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
For the fiscal year ended December 31, 2002
(With comparative totals for the fiscal year ended December 31, 2001)
Operating revenues
Charges for services
Reimbursements
Miscellaneous
Total operating revenues
Workers'
Risk Compensation Health
Management Reserve Insurance
$ 189,472 $ - $ 3,538,084
75,311 E¡17
3,304
264,783 E¡17 3,541,388
247,721 155,~i77 4,529,029
247,721 155,~i77 4,529,029
17,062 [154,~~ [987,641]
6,735 31,Ei09 22,933
6,735 31,t¡09 22,933
Operating expenses
General government
Depreciation
Total operating expenses
Operating income [loss]
Nonoperating revenues [expenses]
Use of money and property
Interest on lease obligations
Total nonoperating revenues [expenses]
Other financing sources [uses]
Operating transfer in
Net income [loss]
23,797
[123,~~
[964,708]
Retained earnings, January 1
192,174
841 ,499
920,618
Prior period adjustment
Retained earnings, Restated January 1
192,174
841 ,499
920,618
Retained earnings, December 31
$
215,971
$
718,148 $
[44,090]
Total
Central Information
Garage Services 2002 2001
$ 946,549 $ 1,081,255 $ 5,755,360 $ 5,636,422
4,743 170,894 251,465 171,587
377 3,681 7,731
951,292 1,252,526 6,010,506 5,815,740
993,906 820,577 6,746,610 5,340,032
9,278 76,576 85,854 95,221
1,003,184 897,153 6,832,464 5,435,253
[51,892] 355,373 [821,958] 380,487
6,964 23,814 91,955 160,287
[4,987] [4,987] [9,733]
6,964 18,827 86,968 150,554
125,000 125,000 62,500
80,072 374,200 [609,990] 593,541
201,871 [78,481] 2,077,681 1,775,727
27,860 27,860 [291,587]
229,731 [78,481] 2,105,541 1,484,140
$ 309,803 $ 295,719 $ 1,495,551 $ 2,077,681
See independent auditor's report on the general purpose financial statemenlts.
78
Schedule 17
Schedule 18
1 of 2
CITY OF SALINA, KANSAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
For the fiscal year ended December 31,2002
(With comparative totals for the fiscal year ended December 31, 2001)
Workers'
Risk Compensation Health
Management Reserve Insurance
Cash flows from operating activities
Cash received from customers and users $ 75,311 $ ~¡17 $ 3,538,084
Cash received from quasi-external transactions 189,472
Cash paid to employees for services
Cash paid to other suppliers of goods or services [248,018] [186,281] [4,352,502]
Cash paid for quasi-external transactions
Other operating receipts 3,304
Net cash provided by [used in] operating activities 16,765 [185,~r64] [811,114]
Cash flows from capital and related financing activities
Purchase of fixed assets
Contributed capital
Principal payments on lease obligations
Interest on lease obligations
Net cash [used in] capital and related financing activities
Cash flows from investing activities
I nterest received 5,430 29,~128 30,352
Cash flows from noncapital financing activities
Operating transfers in
Net increase [decrease] in cash and cash equivalents 22,195 [156,436] [780,762]
Cash and cash equivalents, January 1 193,721 1,005,207 1,202,879
Cash and cash equivalents, December 31 $ 215,916 $ 848,1'71 $ 422,117
Total
Central Information
Garage Services 2002 2001
$ 951,292 $ 1,252,149 $ 5,817,353 $ 5,614,039
189,472 201,691
[237,614] [353,969] [591,583] [589,827]
[749,467] [416,323] [5,952,591] [4,908,153]
[3,323] [45,924] [49,247] [37,919]
377 3,681 10
[39,112] 436,310 [582,915] 279,841
[6,911] [3,326] [10,237] [19,946]
796 796
[98,743] [98,743] [93,996]
[4,987] [4,987] [9,733]
[6,115] [107,056] [113,171] [123,675]
4,628 16,075 85,813 124,141
125,000 125,000 62,500
84,401 345,329 [485,273] 342,807
189,493 396,883 2,988,183 2,645,376
$ 273,894 $ 742,212 $ 2,502,910 $ 2,988,183
See independent auditor's report on the general purpose financial statements.
79
Schedule 18
1 of 2
Schedule 18
2 of2
CITY OF SALINA, KANSAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
For the fiscal year ended December 31, 2002
(With comparative totals for the fiscal year ended December 31, 2001)
Workers'
Risk Compensation
Management ReservE~
Health
Insurance
Reconciliation of operating [loss] income to net cash
provided by [used in] operating activities
Operating income [loss]
$
17,062 $
[154,1360] $
[987,641]
Adjustments to reconcile operating income [loss] to
net cash provided by [used in] operating activities
Depreciation expense
[Increase] decrease in inventory
Increase [decrease] in accounts payable
Increase [decrease] in accrued compensated absences
Increase [decrease] in claims payable
Net cash provided by [used in] operating activities
[297] [3,1308] 720
[27,096] 175,807
$ 16,765 $ [185,~r64] $ [811,114]
Total
Central
Garage
Information
Services
2001
2002
$
[51,892] $
380,487
355,373 $
[821,958] $
9,278 76,576 85,854 95,221
[22,197] [22,197] 7,124
29,647 6,189 32,451 [7,092]
[3,948] [1,828] [5,776] 887
148,711 [196,786]
$ [39,112] $ 436,310 $ [582,915] $ 279,841
See independent auditor's report on the general purpose financial statements.
80
Schedule 18
2 of2
Schedule 19
1 of 5
CITY OF SALINA, KANSAS
RISK MANAGEMENT INTERNAL SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - ACTUAL AND BUDGET
For the fiscal year ended December 31,2002 and 2001
2002
Actual
Budqet
Variance
Positive
rNeqativel
Revenues
Other Revenues
Interest
Reimbursements
Internal charges
$ 5,430 $ 10,000 $ [4,570]
75,311 30,000 45,311
189,472 190,000 [528]
Total revenues
270,213
230,000
40,213
Expenditures
Other
Risk management
266,101
[370]
266,471
Capital Outlay
Capital outlay
1,500
1,350
150
Cash Reserve
120,369
120,369
Total expenditures
266,621
121,349
387,970
Excess [deficiency] of revenues
over [under] expenditures
[157,970]
161,562
3,592
Fund balance, January 1
189,831
31,861
157,970
Unreserved fund balance, December 31 $193,423 $
- $193,423
:2001
Actual
Variance
Positive
rNeqativel
§udqet
$ 9,250 $ 10,000 $ [750]
64,808 30,000 34,808
201,691 205,115 [3,424]
275,749
30,634
245,115
289,928
291,101
1,173
1,447
1,500
53
..157,970
157,970
291 ,375 ~50,571
159,196
[15,626] ,g05,456]
189,830
205,457 ,1:05,456
1
$189,831 $ - $189,831
81
See independent auditor's report on the general purpose financial statements.
Schedule 19
2 of 5
CITY OF SALINA, KANSAS
WORKERS' COMPENSATION RESERVE INTERNAL SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - ACTUAL AND BUDGET
For the fiscal year ended December 31, 2002 and 2001
2002 2001
Variance Variance
Positive Positive
Actual Budqet rNeqativel Actual ~~udqet rNeqativel
Revenues
Other Revenues
Interest $ 29,328 $ 57,710 $ [28,382] $ 52,857 $ 50,000 $ 2,857
Internal charges 517 162,290 161,773
Total revenues 29,845 220,000 133,391 52,857 50,000 2,857
Expenditures
Other
Worker's compensation 182,474 495,000 312,526 203,220 511,000 307,780
Cash Reserve 605,776 605,776 561,776 561,776
Total expenditures 182,474 1,100,776 918,302 203,220 1,072,776 869,556
Excess [deficiency] of revenues
over [under] expenditures [152,629] [880,776] 728,147 [150,363] .ß022,776] 872,413
Unreserved fund balance, January 1 872,413 880,776 [8,363] 1,022,776 1,022,776
Unreserved fund balance, December 31 $ 719,784 $ - $ 719,784 $ 872,413 $ - $ 872,413
See independent auditor's report on the general purpose financial statements.
82
Schedule 19
3 of 5
CITY OF SALINA, KANSAS
CENTRAL GARAGE INTERNAL SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - ACTUAL AND BUDGET
For the fiscal year ended December 31, 2002 and 2001
2002 2001
Variance Variance
Positive Positive
Actual BudQet rNeQativel Actual .!;ludQet rNeQativel
Revenues
Other Revenues
Interest $ 4,628 $ - $ 4,628 $ 4,218 $ 2,500 $ 1,718
Reimbursements 4,743 2,998 1,745 4,729 2,998 1,731
Miscellaneous 10 10
Internal charges 946,549 853,000 93,549 864,254 808,100 56,154
Total revenues 955,920 855,998 99,922 873,211 813,598 59,613
Expenditures
Other
Central garage 1,018,079 950,759 [67,320] 861,709 B06,711 45,002
Capital Outlay
Capital outlay 8,087 4,150 [3,937] 1,854 2,700 846
Cash Reserve 137,527 137,527 '111 ,438 111 ,438
Total expenditures 1,026,166 1,092,436 66,270 863,563 1,020,849 157,286
Excess [deficiency] of revenues
over [under] expenditures [70,246] [236,438] 166,192 9,648 [207,251] 216,899
Other financing sources [uses]
Operating transfers in 125,000 125,000 62,500 '125,000 [62,500]
Excess [deficiency] of revenues
and other financing sources over [under]
expenditures and other financing [uses] 54,754 [111,438] 166,192 72,148 [82,251] 154,399
Unreserved fund balance, January 1 154,399 111,438 42,961 82,251 82,251
Unreserved fund balance, December 31 $ 209,153 $ - $209,153 154,399 $ - $154,399
See independent auditor's report on the general purpose financial statements.
83
Schedule 19
4 of5
CITY OF SALINA, KANSAS
INFORMATION SERVICES INTERNAL SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - ACTUAL AND BUDGET
For the fiscal year ended December 31, 2002 and 2001
2002 2001
Variance Variance
Positive Positive
Actual Budqet rNeqativel Actual !3udqet rNeqativel
Revenues
Fees and Charges
Charges for services $ 381,191 $ 232,225 $148,966 $ 302,200 $ 302,199 $
Other Revenues
Interest 16,074 12,000 4,074 8,729 12,000 [3,271]
Reimbursements 170,894 170,894 87,481 87,481
Miscellaneous 377
Internal charges 697,803 698,642 [839] 698,642 611,161 87,481
Total other revenues 885,148 710,642 174,129 794,852 710,642 84,210
Total revenues 1,266,339 942,867 323,095 1,097,052 1,012,841 84,211
Expenditures
Other
Information services 642,761 751,096 108,335 703,733 679,792 [23,941]
Capital Outlay
Capital outlay 281,395 253,000 [28,395] 228,022 253,000 24,978
Cash Reserve 247,534 247,534 306,513 306,513
Total expenditures 924,156 1,251,630 327,474 931,755 1,:239,305 307,550
Excess [deficiency] of revenues
over [under] expenditures 342,183 [308,763] 650,946 165,297 [226,464] 391,761
Other Financing Sources [Uses]
Sale of Assets 2,262 2,250 12 2,250 [2,250]
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses] 344,445 [306,513] 650,958 165,297 [224,214] 389,511
Unreserved fund balance, January 1 389,512 306,513 82,999 224,215 224,214 1
Prior Year Cancelled Encumbrances 105 105
Unreserved fund balance, December 31 $ 734,062 $ - $ 734,062 $ 389,512 $ - $ 389,512
See independent auditor's report on the general purpose financial statements.
84
Schedule 19
5 of 5
CITY OF SALINA, KANSAS
HEALTH INSURANCE INTERNAL SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - ACTUAL AND BUDGET
For the fiscal year ended December 31, 2002 and 2001
2002
Actual
BudQet
Revenues
Other Revenues
Interest
Reimbursements
Miscellaneous
2001
Variance
Positive
rNeaativel
Actual
Budaet
Variance
Positive
rNeaativel
$ 30,352 $ 25,000 $ 5,352 $ 49,087 $ 40,000 $
14,569
3,541,389 3,557,000 [15,611] 3,577,356 3,5S7,OOO
9,087
14,569
20,356
Total revenues
3,571,741
3,582,000
Expenditures
Other
Health insurance
4,353,221
3,512,500
Cash Reserve
1,001,481
Total expenditures
4,353,221
4,513,981
Excess [deficiency] of revenues
over [under] expenditures
[781,480]
[931,981 ]
Unreserved fund balance, January 1
1,177,511
931,981
Unreserved fund balance, December 31 $ 396,031 $
[10,259]
3,641,012 3,5B7,OOO
[840,721]
3,367,982
3,509,500
9~11 ,981
160,760
3,367,982 4,501,481
245,530
904,481 ~)4,481
[904,481]
44,012
201,518
931,981
1,133,499
1,177,511
- $ 396,031
$1,177,511 $ - $1,177,511
85
See independent auditor's report on the general purpose financial statements.
1,001,481
150,501
273,030
CITY OF SALINA, KANSAS
TRUST AND AGENCY FUNDS
Trust funds are used to account for assets held by the government in a trustee capacity. Agency funds are used to
account for assets held by the government as an agent for individuals, private organizations, other governments
and/or other funds.
War memorial maintenance expendable trust fund - To account for monies to be used for maintenance of the local
war memorial.
Citizenship nonexpendable trust fund - To account for donated funds, the interest on which is to be used to provide
"Good Citizen" awards to deserving Salina citizens.
Cemetery endowment nonexpendable trust fund - To account for amounts expended for perpetual care of the City
cemetery. Interest earnings are used for cemetery maintenance.
Mausoleum endowment nonexpendable trust fund - To account for amounts charged for perpetual care of the City
mausoleum. Interest earnings are used for mausoleum maintenance.
Tricentennial Commission nonexpendable trust fund - To account for donations to be used to c;elebrate the nation's
Tricentennial in the year 2076.
Special assessment escrow agency fund - To account for property owners' prepayment on outstanding special
assessments.
Fire insurance proceeds agency fund - To account for insurance proceeds received for severely damaged buildings
The insurance proceeds, plus interest, are returned to the property owners when the buildings are repaired or
demolished.
PEGS access agency fund - To account for revenues collected on behalf of the community access television system
for public, educational and governmental programming.
Payroll clearing agency fund - To account for interfund payroll receivables and payables for all City funds.
Court bond and restitution agency fund - To account for bonds an restitution remitted to the court and awaiting court
orders for distribution.
Police investigation account agency fund - To account for monies held by the police department for use in
investigations.
Fire cam fund - To account for donations received and used for fire equipment.
86
Schedule 20
1 of 2
CITY OF SALINA, KANSAS
EXPENDABLE TRUST, NON-EXPENDABLE TRUST AND AGENCY FUNDS
COMBINING BALANCE SHEET
December 31,2002
(With comparative totals for December 31,2001)
Expendable
Trust Non-Expendable Trust
War Memorial
Maintenance Citizenship Cemetery Mausoleum Tricentennial
ASSETS Fund Trust Endowment Endowment Commission
Cash and investments $ 33,320 $ 19,534 $ 268,373 $ 2/',867 $ 4,627
Interest receivable 563 330 4,534 471 78
Total assets $ 33,883 $ 19,864 $ 272,907 $ 28,338 $ 4,705
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable $ - $ - $ - $ - $
Total liabilities
Fund balances
Unreserved
Undesignated 33,883 19,864 272,907 2Ei,338 4,705
Total liabilities and fund balances $ 33,883 $ 19,864 $ 272,907 $ 2€i,338 $ 4,705
Agency
Special Fire Court
Assessment Insurance PEGS Payroll Bond and
Escrow Proceeds Access Clearing Restitution
$ 111,969 $ 1,688 $ 1,420 $ 940,770 $ 31,440
1,892 29 24
$ 113,861 $ 1,717 $ 1,444 $ 940,770 $ 31,440
$
113,861 $
1,717 $
1,444 $
940,770 $
31,440
113,861
940,770
31,440
1,717
1,444
$
113,861 $
1,717 $
1,444 $
940,770 $
31,440
See independent auditor's report on the general purpose financial statements.
87
Schedule 20
1 of 2
Schedule 20
2 of2
CITY OF SALINA, KANSAS
EXPENDABLE TRUST, NON-EXPENDABLE TRUST AND AGENCY FUNDS
COMBINING BALANCE SHEET
December 31, 2002
(With comparative totals for December 31,2001)
Agency Total
Police Fire
Investigation Cam
ASSETS Account Fund 2002 2001
Cash and investments $ 1,884 $ 66 $ 1,442,B58 $ 1,375,821
Interest receivable 1 7,B22 6,002
Total assets $ 1,884 $ 67 $ 1,450,880 $ 1,381,823
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable $ 1,884 $ 67 $ 1,091:183 $ 1,031,037
Total liabilities 1,884 67 1,091:183 1,031,037
Fund balances
Unreserved
Undesignated 359,E¡97 350,786
Total liabilities and fund balances $ 1,884 $ 67 $ 1,450,B80 $ 1,381,823
See independent auditor's report on the general purpose financial statements.
88
Schedule 21
CITY OF SALINA, KANSAS
WAR MEMORIAL MAINTENANCE EXPENDABLE TRUST FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
For the fiscal years ended December 31,2002 and 2001
2002 2001
Revenues
Interest $ 1,'193 $ 2,578
Expenditures
Culture and recreation 11,"779 385
Excess [deficiency] of revenues over [under] expenditures [10,:586] 2,193
Fund balances, January 1 44,469 42,276
Fund balances, December 31 $ 33,883 $ 44,469
See independent auditor's report on the general purpose financial statements.
89
Schedule 22
CITY OF SALINA, KANSAS
NON-EXPENDABLE TRUST FUNDS
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS
For the fiscal years ended December 31,2002
(With comparative totals for the fiscal year ended December 31,2001)
Total
Citizenship Cemetery Mausoleum Tricentennial
Trust Endowment Endowment Commission 2002 2001
Operating revenues
Charges for services $ - $ 7,788 $ - $ - L7,788 $ 8,725
Operating expenses
Other 35 35 35
--
Operating income 7,753 _7,753 8,690
Nonoperating revenues
Use of money and property 717 9,834 1,023 170 ---1.1,744 17,654
Net income 717 17,587 1,023 170 19,497 26,344
Retained earnings, January 1 19,147 255,320 27,315 4,535 306,317 279,973
Retained earnings, December 31 $ 19,864 $ 272,907 $ 28,338 $
4,705 $325,814 $ 306,317
See independent auditor's report on the general purpose financial statements.
90
Schedule 23
CITY OF SALINA, KANSAS
NON-EXPENDABLE TRUST FUNDS
COMBINING STATEMENT OF CASH FLOWS
For the fiscal years ended December 31,2002
(With comparative totals for the fiscal year ended December 31 , 2001)
Net cash provided by operating activities
Total
Citizenship Cemetery Mausoleum Tricentennial
Trust Endowment Endowment Commission 2002 2001
$ - $ 7,788 $ - $ - ~¡ 7,788 $ 8,725
[35] [35] [35]
7,753 7,753 8,690
616 8,352 879 146 9,993 13,992
616 16,105 879 146 17,746 22,682
18,918 252,268 26,988 4,481 - 302,655 279,973
$ 19,534 $ 268,373 $ 27,867 $ 4,627 ~¡ 320,401 $ 302,655
Cash flows from operating activities
Cash received from customers
Cash paid to suppliers
Cash flows from investing activities
Interest received
Net increase in cash and cash equivalents
Cash and cash equivalents, January 1
Cash and cash equivalents, December 31
Reconciliation of operating income to net cash
provided by operating activities
Operating income
$
- $
7,753 $
- $
- ~;
7,753 $
8,690
See independent auditor's report on the general purpose financial statements.
91
Schedule 24
1 of 3
CITY OF SALINA, KANSAS
AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
For the fiscal year ended December 31, 2002
Balance
January 1,
2002
Additions
Deductions
Balance
December 31,
2002
Special Assessment Escrow
ASSETS
Cash and investments
$
130,550 $
27,722 $
44,411 $
113,861
LIABILITIES
Accounts payable
$
130,550 $
27,722 $
44,411 $
113,861
Fire Insurance Proceeds
ASSETS
Cash and investments $ 19,071 $ - $ 17,:383 $ 1,688
Interest receivable 231 202 29
Total assets $ 19,302 $ - $ 17,!585 $ 1,717
LIABILITIES
Accounts payable $ 19,302 $ - $ 17,!585 $ 1,717
PEGS Access
ASSETS
Cash and investments
I nterest receivable
$
1,303 $
16
212,463 $
8
212,:346 $
1 ,420
24
Total assets
$
1,319 $
212,471 $
212,:346 $
1 ,444
LIABILITIES
Accounts payable
$
1,319 $
212,471 $
212,:346 $
1,444
See independent auditor's report on the general purpose financial statements.
92
CITY OF SALINA, KANSAS
AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
For the fiscal year ended December 31, 2002
Balance
January 1,
2002
Payroll Clearing
ASSETS
Cash and investments
$
843,830 $
LIABILITIES
Accounts payable
$
843,830 $
Court Bond and Restitution
ASSETS
Cash and investments
$
33,643 $
LIABILITIES
Accounts payable
$
33,643 $
Police Investigation Account
ASSETS
Cash and investments
$
2,253 $
LIABILITIES
Accounts payable
$
2,253 $
Additions
Deductions
96,940 $
96,940 $
- $
2,203 $
- $
2,~W3 $
- $
- $
See independent auditor's report on the general purpose financial statements.
93
Schedule 24
2 of 3
Balance
December 31,
2002
- $
940,770
- $
940,770
31,440
31,440
~~69 $
1,884
~~69 $
1,884
Schedule 24
3 of 3
CITY OF SALINA, KANSAS
AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
For the fiscal year ended December 31,2002
Balance
January 1,
2002
Additions
Deductions
Balance
December 31,
2002
Fire Cam Fund
ASSETS
Cash and investments
$
64 $
3 $
- $
67
LIABILITIES
Accounts payable
$
64 $
3 $
- $
67
Total - Agency Funds
ASSETS
Cash and investments
Interest receivable
$ 1,030,714 $
247
337,128 $
8
276,¡r12 $ 1,091,130
202 53
Total assets
$ 1,030,961 $
337,136 $
276,H14 $ 1,091,183
LIABILITIES
Accounts payable
$ 1,030,961 $
337,136 $
276,~!.!i $ 1,091,183
See independent auditor's report on the general purpose financial statements.
94
CITY OF SALINA, KANSAS
GENERAL FIXED ASSETS
95
Schedule 25
CITY OF SALINA, KANSAS
COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS
BY SOURCE
December 31,2002 and 2001
General fixed assets
Land
Buildings
Construction in progress
Improvements other than buildings
Machinery and equipment
2002 2001
$ 2,589,193 $ 2,589,193
12,296,1386 12,453,379
488,:299
6,641,535 6,443,810
12,110,1355 11,412,456
$ 34,126,568 $ 32,898,838
Total general fixed assets
Investment in general fixed assets by source
General fund
Special revenue funds
Capital projects funds
Donations
$ 19,044,:248 $ 18,304,818
1,227,:353 1,227,353
13,799,:395 13,311,095
55,:572 55,572
Total investment in general fixed assets
$ 34,126,:568 $ 32,898,838
See independent auditor's report on the general purpose financial statements.
96
Schedule 26
CITY OF SALINA, KANSAS
SCHEDULE OF GENERAL FIXED ASSETS.
BY FUNCTION AND ACTIVITY
December 31,2002
(With comparative totals for December 31, 2001)
Improvements
Construction Other Than Machinery Total Total
Function and Activity Land Buildings In Progress Buildings and Equipment :<'002 2001
General government
Manager $ - $ - $ - $ - $ 139,157 $ 139,157 $ 124,468
Finance 156,550 156,550 150,417
Personnel 37,817 37,817 34,976
General services 19,302 101,612 260,616 423,676 805,206 834,486
Human relations 20,457 20,457 17,215
Bicentennial Center 5,141,638 242,041 1,854,210 7,237,889 7,236,618
Other 1,885,649 1,601,716 4,597,000 378,740 ~,463, 1 05 8,471,155
Total general government 1,904,951 6,844,966 5,099,657 3,010,607 -----1.§.,860,181 16,869,335
Public safety
Police 600 445,363 53,820 1,684,199 2,183,982 2,043,466
Municipal court 488,299 80,297 568,596 75,050
Fire 63,302 1,732,926 3,076,434 4,872,662 4,684,291
Inspection 118,217 - 118,217 107,286
Total public safety 63,902 2,178,289 488,299 53,820 4,959,147 ----1.,743,457 6,910,093
Highways and streets
Engineering 229,154 229,154 189,267
Maintenance 10,470 155,211 721,687 1,925,655 2,813,023 2,533,615
Planning 122,453 - 122,453 120,122
Total highways and streets 10,470 155,211 721,687 2,277,262 ~,164,630 2,843,004
Culture and recreation 609,870 3,118,220 766,371 1,863,839 ----Ê.,358,300 6,276,406
Total general fixed assets $ 2,589,193 $ 12,296,686 $ 488,299 $ 6,641,535 $ 12,110,855 $ 34,126,568 $ 32,898,838
See independent auditor's report on the general purpose financial statements.
97
Schedule 27
CITY OF SALINA, KANSAS
SCHEDULE OF GENERAL FIXED ASSETS -
BY FUNCTION AND ACTIVITY
December 31,2002
General Fixed General Fixed
Assets Assets
January 1, Classification December 31,
Function and Activity 2002 Additions Deletions Adjustment 2002
General government
Manager $ 124,468 $ 14,689 $ - $ - $ 139,157
Finance 152,359 6,133 [1,942] 156,550
Personnel 34,976 2,841 37,817
General services 834,486 1,715 [30,995] 805,206
Human relations 17,215 3,242 20,457
Bicentennial Center 7,236,618 9,646 [8,375] 7,237,889
Other 8,470,555 [7,450] 8,463,105
Total general government 16,870,677 38,266 [48,762] 16,860,181
Public safety
Police 2,166,680 199,896 [59,380] [123,2.14] 2,183,982
Municipal court [42,655] 534,578 [41,032] 117,705 568,596
Fire 4,676,362 203,441 [15,070] 7,929 4,872,662
Inspection 107,286 10,931 118,217
Total public safety 6,907,673 948,846 [115,482] 2,420 7,743,457
Highways and streets
Engineering 189,269 49,582 [8,352] [1,345] 229,154
Maintenance 2,534,214 344,309 [64,900] [600] 2,813,023
Planning 120,262 2,331 [1~ 122,453
Total highways and streets 2,843,745 396,222 [73,252] [2,O~ 3,164,630
Culture and recreation 6,276,743 180,684 [98,792] [3~ 6,358,300
Total general fixed assets $ 32,898,838 $ 1,564,018 $ [336,288] $ - $ 34,126,568
See independent auditor's report on the general purpose financial statements.
98
GOVERNMENTAL AUDIT SECTION
LOWENTHAL SINGLETON WEBB & WILSON
PROFESSIONAL ASSOCIATION
David A. Lowenthal, CPA
Thomas E. Singleton, CPA
Patricia 1. Webb, CPA
Thomas G. Wilson, CPA
CERTIFIED PUBLIC ACCOUNTANTS
900 Massachusetts, Suite 301
Lawrence, Kansas 66044-2868
Phone: (785) 749-5050
Fax: (785) 749-5061
E-mail: lswwcpa@lswwcpa.com
Kenneth R. Hite, CPA
Mary A. LeGresley, CPA
Audn:y M. Odennann, CPA
Members of American Institute
and Kansas Society of
Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE AND ON INTERNAL CONTROL
OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH "GOVERNMENT AUDITING STANDARDS"
Mayor and City Commission
City of Salina, Kansas
We have audited the basic financial statements of City of Salina, Kansas as of and for the year ,ended December 31,
2002, and have issued our report thereon dated May 14, 2003. We conducted our audit in accordance with auditing
standards generally accepted in the United States of America, and the standards applicable to financial audits
contained in "Government Auditing Standards", issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether the City's financial statements are free of material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants,
noncompliance with which could have a direct and material effect on the determination of financial statement
amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and,
accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance
that are required to be reported under "Government Auditing Standards".
Internal Control Over Financial Reportinq
In planning and performing our audit, we considered the City's internal control over financial reporting in order to
determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to
provide assurance on the internal control over financial reporting. Our consideration of the internal control over
financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might
be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the
internal control components does not reduce to a relatively low level the risk that misstatem:mts in amounts that
would be material in relation to the financial statements being audited may occur and not be detected within a timely
period by employees in the normal course of performing their assigned functions. We noted no matters involving the
internal control over financial reporting and its operation that we consider to be material weaknesses.
However, we noted certain other matters involving the internal control over financial reporting and its operation that
we have reported to management in a separate letter dated May 14, 2003
This report is intended for the information of the City Commission, management, and federal awarding agencies and
pass-through entities and should not be used by anyone other than these specified parties.
d~/ ~~ ~ ~~
Professional Association
May 14, 2003
99
STATISTICAL SECTION
City of Salina Table 1
General Government Expenditures by Functions (1)
Last Ten Fiscal Years
Fiscal General Culture and Community Public Health
Year Government Public Safety Public Works Recreation Development and Sanitation Debt Service Capital Outlay Other Total
1993 1,426,997 5,834,653 1,386,714 3,915,576 175,254 173,122 2,902,019 1,558,158 4,547,476 21,919,969
1994 1,069,325 6,735,353 1,332,977 3,821,310 441,307 525,026 2,772,819 2,796,288 4,533,986 24,028,391
1995 (2) 1,167,329 7,321,192 1,464,980 4,278,450 194,552 553,614 4,387,971 3,756,136 4,690,997 27,815,221
1995 (3) 5,095,357 7,106,760 2,323,002 4,278,450 286,458 467,772 4,387,971 3,756,136 113,315 27,815,221
1996 5,400,526 7,492,967 2,631,025 4,111,277 473,245 474,604 3,302,600 4,261,039 29,561 28,176,844
1997 5,721,204 8,153,762 2,557,584 4,152,228 246,047 491,299 4,042,308 4,525,977 176,364 30,066,773
1998 7,319,381 7,825,422 2,211,719 4,623,063 260,548 512,818 2,858,079 3,181,300 374,840 29,167,170
1998(4) 2,558,564 9,992,478 3,528,366 4,151,582 2,158,385 632,766 2,858,079 3,286,950 - 29,167,170
1999 (5) 2,178,432 10,447,619 3,467,893 4,413,084 4,100,217 675,834 2,491,953 3,644,789 - 31,419,821
2000 2,470,681 11 ,142,154 3,805,681 4,695,258 4,152,715 742,891 2,953,569 4,870,144 34,833,093
2001 2,226,839 11,326,371 4,865,373 4,340,351 4,152,742 885,198 3,324,479 3,473,503 - 34,594,856
2002 2,122,489 11,969,578 5,115,951 4,295,197 4,186,552 871,560 3,312,896 3,4 73,914 35,348,137
~. and debt service funds.
2002 Expenditures
Capital Outlay G I
10% enera
Government
Debt Service 6%
9%
(1) Includes only general, special revenUE
(2) Some Expenditures reclassified in 1995. This line presents the 1996
expenditures based on the 1994 and prior classification. In 1991 through
1995, Employee Benefits were classified as "Other".
(4) Reflects the functional classification as presented in the 1995 and
subsequent year schedules. From 1995 through 1998, Employee Benefits
were classed as "General Government".
(5) 1998 restated to 1999 Classification
(6) In 1999, Culture, Recreation and Bi-centennial Center were combined
into "Culture and Recreation. Prior years were summed into the new
single classification. Employee benefits were moved from the "General
Government" classification into the classification consistant with the
salaries classification associated with the benefits. Finally, expenditures
previously classified as "Other" were placed in more appropriate and
descriptive classes.
Public Health
and Sanitation
2%
Community.
Development
12%
Public Safety
35%
Culture and
Recreation
12%
Public Works
14%
100
City of Salina
General Government Revenues by Source (1) Table 2
Last Ten Fiscal Years
Fiscal Fees and Special
Year Taxes Interqovernmental Charqes Assesments Other Revenues Total
1993 15,479,559 2,769,828 3,174,444 940,487 1,847,012 24,211,330
1994 16,153,904 3,305,815 3,089,651 868,202 2,402,460 25,820,032
1995 17,138,776 3,170,244 3,585,877 1,012,596 2,708,038 27,615,531
1996 17,557,494 3,342,888 3,160,771 1,191,772 2,859,223 28,112,148
1997 18,416,347 3,197,436 3,197,039 1,127,400 2,153,460 28,091,682
1998 19,364,939 3,208,793 5,057,608 1,050,242 1,951,707 30,633,289
1998 (2) 19,364,939 4,050,492 2,137,769 974,648 3,899,387 30,427,235
1999 21,314,633 4,383,281 2,068,329 1,086,557 4,257,563 33,110,363
2000 22,459,765 4,114,704 2,104,897 1,228,683 4,622,510 34,530,559
2001 22,282,630 3,916,482 2,107,409 1,320,324 5,001,469 34,628,314
2002 23,388,799 3,601,543 2,127,904 1,288,961 4,294,010 34,701,217
(1) Includes Only General, Special Revenue, and Debt Service
Funds. Capital Projects and Fiduciary funds are excluded.
(2) Restated to 1999 Classification. Difference in total is due to restatement of interfund transfers
2002 Revenue By Source
Other Revenues
12%
Special
Assesments
4%
Fees and Charges
6%
Intergovernmental
10%
101
City of Salina
General Government Tax Revenues by Source (1) Table 3
LastTen Fiscal Years
Fiscal Transient
Year Property Taxes Sales Tax Franchise Tax Guest Tax Total
1993 5,818,511 7,480,113 1,680,385 500,550 15,479,559
1994 6,065,013 7,769,917 1,756,528 562,446 16,153,904
1995 6,502,855 8,302,428 1,739,323 594,170 17,138,776
1996 6,690,485 8,446,809 1,836,694 583,506 17,557,494
1997 6,945,943 8,948,067 1,929,622 592,715 18,416,347
1998 6,995,943 9,687,988 1,950,520 730,488 19,364,939
1999 7,656,282 10,991,973 1,920,067 746,311 21,314,633
2000 7,576,973 12,032,797 2,141,736 708,259 22,459,765
2001 7,079,205 12,010,742 2,463,599 729,084 22,282,630
2002 8,085,665 12,257,819 2,275,737 769,578 23,388,799
Tax Revenues by Source
2,000,000
Sales Tax
Property Taxes
Franchise Tax
Transient Guest Tax
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
Year
1998 1999 2000 2001
2002
(1) Includes General, special revenue and Debt Service Funds
(2) Property Taxes include Real Estate, Motor Vehicle and Payments in Lieu of Taxes
102
City of Salina
Property Tax Levies and Collections Table 4
Last 10 Fiscal Years
Percent of Delinquent Ratio of Total
Fiscal Current Tax Current Taxes Tax Total Tax T ax ColIl~ctions
Year Total Tax Levy Collections Collected Collections Collections to Tax Levy
1993 4,882,255 4,696,707 96.2% 194,448 4,891,155 100.2%
1994 4,858,543 4,673,374 96.2% 227,331 4,900,705 100.9%
1995 5,230,834 5,192,453 99.3% 97,615 5,290,068 101.1%
1996 5,534,222 5,411,474 97.8% 107,250 5,518,724 99.7%
1997 5,772,414 5,689,316 98.6% 133,171 5,822,487 100.9%
1998 6,081,748 5,976,840 98.3% 114,028 6,090,868 100.1%
1999 6,416,832 6,269,408 97.7% 140,976 6,410,384 99.9%
2000 6,694,612 6,490,693 97.0% 105,801 6,596,494 98.5%
2001 7,020,875 6,831,220 97.3% 147,819 6,979,039 99.4%
2002 7,289,916 7,108,013 97.5% 174,050 7,282,063 99.9%
Percent of Property Taxes Collected
102.0%
100.0% m
~--u....Q" . oo..,
- ' /'
- '/'
u~mm/umumu u.~---~u un~;,;()
~ .~
, (y-
, ./
u"mu.;,.;.;/u~m ~
~
--+
101.0%
99.0%
98.0%
97.0%
960%
95.0% .u
u.uu..u
uuu..u.u
94.0%
uu....u..
93.0%
1993
1994
1995
1996
1997
1998
1999
2000
2001
---1
2002
.
Percent of Current Taxes Collected - -<> - Ratio of Total Tax Collections to Tax LeVY]
103
City of Salina
Assessed and Estimated Actual Value of Property
Last Ten Fiscal Years
Table 5
Assessed Value
Ratio of Assessed
Personal Total, Assessed Estimated Total Market Value to Estimated
Fiscal Year Real Estate Property State Assessed Motor Vehicle Value Value Market Value
1993 129,632,717 22,447,713 12,849,722 37,569,816 202,499,968 1,175,493,628 17.23
1994 145,239,331 22,678,728 14,272,658 41,805,765 223,996,482 1,314,830,748 17.04
1995 166,462,923 24,890,665 12,528,204 42,981,776 246,863,568 1,482,502,705 16.65
1996 175,997,879 25,550,448 12,708,970 43,786,794 258,044,091 1,551,794,365 16.63
1997 196,360,843 26,279,996 13,954,569 43,994,555 280,589,963 1,716,987,425 16.34
1998 213,488,582 27,534,811 12,909,972 44,924,849 298,858,214 1,850,244,169 16.15
1999 226,207,727 28,786,094 14,122,529 45,371,433 314,487,783 1,953,641,509 16.10
2000 241,621,655 32,439,566 14,088,875 43,246,020 331,396,116 2,096,802,659 15.80
2001 254,343,715 31,823,431 14,847,520 43,248,108 344,262,744 2,006,804,824 17.15
2002 267,175,443 35,093,154 14,866,008 45,965,839 363,100,444 2,107,421,842 17.23
Change in Assessed Value
400,000,000
200,000,000 4-
350,000,000
300,000,000
250,000,000
150,000,000
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
(1) On November 3,1992, voters in the State of Kansas approved a proposition to amend the Kansas Constitution regarding property classification and
assessment rates. This amendment established three new property sub-classifications with decreased assessment ratios.
104
City of Salina
Principal Taxpayers
2002
Taxpayer
Type of Business
Schwan's Sales
Warmack, Salina Partnership
Western Resources
Southwestern Bell
Wal-Mart Stores, Inc.
Salina Regional Health Center
Kansas Gas Service
Dillon's
Great Plains Manufacturing
FCH/HHC Hotels, Inc.
Pizza Manufacturing
Retail Shopping Mall
Electric and Gas
Telephone Utility
Discount Retail Stores
Hospital and Medical Offices
Utility
Supermarket
Manufacturing
Hotel/Convention Ctr
Combined Valuation of the Ten Largest Taxpayers
Percent ofTotal City Assessed Valuation (1)
(1) Assessed value includes amount attributed to Motor Vehicles
105
Table 6
2002 Assessed % of Total
Valuation Valuation
$ 7,595,433 2.29%
5,861,843 "1.77%
5,898,849 '1.78%
5,214,313 '1.57%
4,288,306 '1.29%
3,886,576 '1.17%
2,540,941 0.77%
1,888,509 0.57%
1,975,025 0.60%
1,615,519 0.49%
40,765,314
1:2.30%
Fiscal
(Budget) Year
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
City of Salina
Property Tax Rates
Direct and Overlapping Governments
Last Ten Fiscal Years
City of Salina Saline County USD 305 (2) Other (1) Total
Operating Debt Service Total City Operating Debt Service Total County Operating Debt Service Total USD
Millage Millage Millage Millage Millage Millage Millage Millage Millage Other
22.114 7.735 29.849 21.718 21.718 40.301 3.581 43.882 6.557 102.006
22.910 6.551 29.461 24.562 - 24.562 37.353 3.332 40.685 8.521 103.229
18.555 10.154 28.709 26.571 26.571 39.357 3.044 42.401 8.265 105.946
15.812 11.130 26.942 20.940 1.985 22.925 39.368 2.944 42.312 8.340 100.519
20.692 5.013 25.705 18.141 18.141 36.892 2.637 39.529 8.433 91.808
21.587 3.683 25.270 19.497 0.991 20.488 35.001 1.839 36.840 9.869 92.467
19.382 5.494 24.876 23.187 23.187 38.698 17.623 56.321 9.444 113.828
19.097 5.268 24.365 22.337 - 23.837 41.198 17.326 58.524 9.109 115.835
18.561 5.657 24.218 24.066 - 24.066 51.115 17.063 68.178 9.330 125.792
18.581 5.511 24.092 25.667 25.657 38.569 18.815 57.384 9.684 116.817
Overlapping Mill Levy for Salina, Kansas
150
~
0 USD 305
13 All Other
0 Saline County
III City of Salina
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
I I
I Budget Year I
(1) The "Other" column includes the State of Kansas, the Salina Airport Authority, and the Salina Public Library.
:E 100
I:
>-
>
Q,)
...J
50
(2) A small portion of Salina is covered by USD 306, USD 307, or USD 400. Total Tax Rates are different in the areas covered by these jurisdictions.
106
Table 7
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
Fiscal Year
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
City of Salina
Special Assesment Billings and Collections
last Ten Fiscal Years
Special
Assessment
Billings
694,497
697,015
919,364
1,139,672
985,885
983,383
1,122,307
1,266,760
1,298,468
1,284,864
Special Assessment
Collections
873,850
793,190
883,807
1,131,852
1,048,863
974,648
1,086,557
1,285,105
1,320,324
1,288,961
Ratio of Total Special
Assessments Collections to Total
Assessments levied
1.26
1.14
0.96
0.99
1.06
0.99
0.97
1.01
1.02
1.00
Special Assessment Billings and Collections
1993
1994
1995
II Special Assessment Billings III Special Assessment Collections
1999
2000
2001
1996
1997
1998
1. Includes prepayments and delinquent collections.
107
Table 8
City of Salina
Computation of Legal Debt Margin
December 31, 2002
Assessed Valuation (1)
Legal Debt Margin:
Debt Limit 30% of Assessed Valuation (2)
Debt Applicable to Limitation:
Total Bonded Debt
Less: Revenue Bonds
Fund Balance Designated
for Debt Service
Total Debt Applicable to Limitation
Legal Debt Margin
Table 9
$ 363,100,444
108,930,133
36,570,942
6,790,000
1,000,030
28,780,912
80,149,221
1. Assessed valuation for the purposes of calculating the debt limitation includes the valuation attributable to
Motor Vehicles.
108
City of Salina
Ratio of Net General Obligation Bonded Debt Table 10
To Assessed Value and
Net General Obligation Bonded Debt Per Capita
Ratio of Net
Less Debt Bonded Debt to Net Bonded
Fiscal Population Assessed Value Gross Bonded Service Fund Net Bonded Assessed Debt Per
Year (1) (2) Debt (3) (4) Debt Value Capita
1993 43,202 202,499,968 9,478,791 539,887 8,938,904 4.41 206.91
1994 43,304 223,996,482 7,854,994 797,083 7,057,911 3.15 162.99
1995 (1) 43,304 246,863,568 8,465,000 1,024,020 7,440,980 3.01 171.83
1996 (1) 44,167 258,044,091 10,211,899 1,052,539 9,159,360 3.55 207.38
1997 44,510 280,589,963 10,184,658 867,759 9,316,899 3.32 209.32
1998 (2) 44,176 298,858,214 8,453,558 741,310 7,712,248 2.58 174.58
1999 44,022 314,487,783 10,877,094 779,992 10,097,102 3.21 229.36
2000 45,679 331,396,116 12,590,532 942,981 11,647,551 3.51 254.99
2001 45,679 344,262,744 11,006,768 956,644 10,050,124 2.92 220.02
2002 45,729 363,100,444 14,546,118 1,000,030 13,546,088 3.73 296.23
Per Capita General Obligation Debt
300.00
250.00
200.00
150.00
100.00
50.00
0.00
1993 1994 1995 (1) 1996 (1) 1997 1998 (2) 1999 2000 2001 2002
1. 2000 population estimates are based on the 2000. Estimates for interim years are based on the 7/1 estimate issued by Kansas
State Divisionof the Budget.
2. Includes motor vehicles
3. Outstanding Debt amounts reflect portion of the outstanding debt for which general taxes will be required. This excludes revenue
bonds, GO obligations for which other revenue has been pledged, and obligations for which special assessments will be levied.
4. Amount available for repayment of General Obligation Bonds.
109
City of Salina
Ratio of Annual Debt Service Expenditures Table 11
For General Obligation Bonded Debt (1)
To Total General General Governmental Expenditures
Last Ten Fiscal Years
Total General Ratio of Debt Service to
Governmental General Governmental
Fiscal Year Principal Interest (2) Total Debt Service Expenditiures (3) Expenditures (3)
1993 1,556,156 497,961 2,054,117 21,919,969 9.37%
1994 1,459,185 368,250 1,827,435 24,028,391 7.61%
1995 1,530,037 386,943 1,916,980 27,815,221 6.89%
1996 1,229,378 305,808 1,535,186 28,176,844 5.45%
1997 2,549,984 443,461 2,993,445 30,066,773 9.96%
1998 1,563,421 320,010 1,883,431 29,167,170 6.46%
1999 1,044,187 361,209 1,405,396 31,419,821 4.47%
2000 1,277,861 447,025 1,724,886 34,833,093 4.95%
2001 1,406,725 498,772 1,905,497 34,964,295 5.45%
2002 1,376,631 553,054 1,929,685 35,348,137 5.46%
Ratio of General Debt Service to General Government Expenditures
12.00%
10.00%
8.00%
-- -- - - -- --- --- -- - -- ----
-------------
------------
6.00% ------
4.00%
2.00%
0.00%
1993
1994
1995
1996
1997
1998
1999
2000
2001
(1) Excludes special assessment debt with government commitment.
(2) Excludes bond issuance and other costs.
(3) Includes general, special revenue, and debt service funds.
110
City of Salina
Computation of Direct and Overlapping Bonded Debt
General Obligation Bonds
December 31,2002
Table 12
Jurrisdiction
Net General
Obligation
Bonded Debt
Outstanding
Percentage Amount
Applicable to City Applicable to the
of Salina City of Salina
Direct:
City of Salina
$
13,546,088
100% $
13,546,088
Overlapping:
Salina Airport Authority
Saline County
USD 305
Total Overlapping Debt
5,090,000
1,170,000
92,565,000
98,825,000
100%
86%
92%
5,090,000
1,006,668
85,002,440
91,099,108
Total Direct and Overlapping Debt
112,371,088
104,645,196
Per Capita Direct and Overlapping debt
$
2,288
USD 305
81%
Overlapping Debt, City of Salina
City of Salina
13%
Salina Airport
Authority
5%
Saline County
1%
111
City of Salina
Revenue Bond Coverage
Water and Sewer Fund
Last Ten Fiscal Years
Table 13
Debt Service Requirements
Net Kevenue
Fiscal Operatinq Operatinq Available for Debt
Year Revenues (1) Expenses(2) Service Principal Interest Total Coveraqe
1993 8,171,545 4,350,228 3,821,317 670,000 1,681,527 ¿~,351 ,527 1.63
1994 9,402,506 5,266,865 4,135,641 805,000 1,614,122 2,419,122 1.71
1995 9,993,020 5,879,776 4,113,244 880,000 1,588,797 2,468,797 1.67
1996 10,506,646 7,147,082 3,359,564 955,000 1,527,953 2,482,953 1.35
1997 10,442,409 6,714,541 3,727,868 1,015,000 1,483,493 2,498,493 1.49
1998 11,495,756 6,836,006 4,659,750 660,000 924,598 1,584,598 2.94
1999 10,753,843 7,399,094 3,354,749 700,000 876,793 1,576,793 2.13
2000 11,709,375 7,406,546 4,302,829 735,000 831,293 1,566,293 2.75
2001 11,886,131 8,461,367 3,424,764 835,000 688,515 1,523,515 2.25
2002 13,435,656 9,167,908 4,267,748 267,334 267,334 15.96
(1) Excludes interest income
(2) Excludes Depreciation
(3) Coverage for 2002 appears to be excessive because of refinancing activity and very limited prncipal and interest payments.
112
City of Salina
Property Value and Construction
Last Ten Fiscal Years
Value of
Total Property Value Total Value of Permits Commercial
Fiscal Year (Thousands) Permits Issued Issued Permits
1993 $ 1,175,494 628 $ 36,411,632 NA
1994 1,314,831 694 38,667,261 NA
1995 1,482,502 759 34,156,955 NA
1996 1,551,794 832 55,369,816 NA
1997 1,716,987 725 41,528,712 $ 24,604,611
1998 1,850,244 757 42,830,543 22,162,767
1999 1,953,642 772 41,431,443 11,225,834
2000 2,096,803 771 99,462,211 75,141,289
2001 2,006,805 679 74,250,045 53,696,870
2002 2,107,422 776 62,416,514 47,809,924
Number and Value of Building Permits Issued
950
850
750
J!!
1~ 550
..
c..
Õ
~
~ 550
::>
z
450
350
250
1993
1994
1995
1995
1997
1999
2000
2001
1998
I c:::::J Permits Issued -+- Total Value of Permits Issued I
113
121,000,000
101,000,000
81,000,000
en
:!:
E
~
51,000,000 Õ
..
::>
~
41,000,000
21,000,000
1,000,000
2002
Table 14
City of Salina Table 15
Demographic Analysis
Last 10 Fiscal Years
Per Capita Labor Force,
Personal Income School Emoiliment Unemployment Saline County
Fiscal Year Population (1) Saline County (2) Median Age (3) (4) Rate (5) (5)
1993 43,202 21,433 33.3 7,661 4.6% 28,549
1994 43,304 22,876 33.5 7,243 4.6% 28,093
1995 43,304 22,561 33.5 7,229 4.4% 29,312
1996 44,167 23,860 33.5 7,316 3.7% 29,281
1997 44,510 25,312 33.5 7,307 3.6% 28,875
1998 44,176 26,329 33.5 7,257 3.5% 29,262
1999 44,022 26,957 33.5 7,347 3.6% 30,310
2000 45,679 28,885 36.1 7,418 2.8% 30,740
2001 45,629 28,168 36.1 7,329 3.5% 29,821
2002 45,729 NA 36.1 7,289 3.6% 30,569
Population, labor Force, and School Enrollment
50,000
8,000
<1)45,000
CJ
...
0
u.
...
,g40,000
co
...J
-
c
.235 000
~ '
:;,
a.
0
0-30,000
.
....
.
..----
.
.
.----
.
.
...
7,500
....
c
<I)
E
Õ
...
c
W
... "'..
... .. ..'" ...--.
.. -- ""."
. .. -. ..
7,000
25,000
6,500
1993 1994 1995 1996 1997 1998 1999 2000 2001
2002
.
Population (1) --6-- Labor Force, Saline County (5) - .. - School Enroiliment (4) I
Data Sources:
1) 2000 Population estimates are based on the 2000 Census. Population in intervening years is based on the Kansas Division of
the Budget 7/1 estimate
(2) U.S. Department of Commerce, Bureau of Economic Analysis.
(3) Salina Chamber of Commerce. 2000 is the 2000 Census.
(4) U.SD. 305, Full Time Equivelancy
(5) Kansas Department of Human Resources
114
Operating Position History, Enterprise Funds
Table 16
Year
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
W""~"~"
Non- Non- Non- Non-
operating operating operating operating
Operating Operating Operating Revenue Net Operating Operating Operating Revenue Operating Operating Operating Revenue Net Operating Operating Operating Revenue
Revenues Expenses Income (Expense Income Revenues Expenses Income (Expense Net Income Revenues Expenses Income (Expense Income Revenues Expenses Income (Expense) Net Income
876,228 898,329 (22,101) 17,355 (4,746) 710,856 596,474 114,112 20,159 134,271 492,728 510,195 (17,467) 1,806 (15,661) 8,077,681 5,365,160 2,712,521 (64,924) 2,647,597
1,052,413 999,308 53,105 16,451 69,556 1,214,207 878,128 336,079 (4,954) 331,125 606,952 592,456 14,496 531 15,027 9,402,506 6,739,076 2,663,430 (577,935) 2,085,495
1,075,091 1,062,250 12,841 29,562 42,403 1,511,071 873,900 637,171 1,928 639,099 641,852 654,378 (12,526) (11,981) (24,507) 9,993,020 7,828,266 2,164,754 (1,508,687) 656,067
1,128,113 1,159,585 (31,472) 29,284 (2,188) 2,017,280 984,226 1,033,054 (128,332) 904,722 678,961 700,156 (21,195) (8,092) (29,287) 10,506,646 9,099,949 1,406,697 (859,874) 546,823
1,230,310 1,371,703 (141,393) 33,486 (107,907) 2,452,057 1,286,246 1,165,811 (62,151) 1,103,660 782,162 734,177 47,985 (19,452) 28,533 10,442,409 8,902,430 1,539,979 (722,798) 817,181
1,354,952 1,416,567 (61,615) 23,154 (38,461) 2,514,526 1,236,419 1,278,107 (60,847) 1,217,260 755,764 756,374 (610) (8,968) (9,578) 11,495,756 9,063,644 2,432,112 (395,640) 2,036,472
1,472,888 1,455,433 17,455 20,248 37,703 2,367,328 1,676,921 690,407 (32,586) 657,821 819,029 766,417 52,612 (1,302) 51,310 10,753,843 9,724,010 1,029,833 122,537 907,296
1,594,739 1,498,597 96,142 26,754 122,896 2,088,413 1,486,236 602,177 31,208 633,385 748,366 804,972 (56,606) (225) (56,831) 11,709,375 9,688,060 2,021,315 (391,373) 1,629,942
1,615,914 1,582,169 33,745 (74,531) (40,786) 2,094,700 2,171,127 (76,427) 29,529 (46,898) 997,544 741,693 255,851 (899) 254,952 11,886,131 10,945,192 940,939 (532,155) 408,784
1,638,280 1,654,313 (16,033) 20,208 4,175 2,210,231 2,049,152 161,079 62,622 223,701 867,108 832,914 34,194 34,194 37,259 13,435,656 11,628,379 1,807,277 (757,421) 1,049,856
Sanitation
Solid Waste DisDosal
Golf Course
Water and Sewer
115
This page left blank intentionally.
COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF
CITY OF SALINA, KANSAS
300 West Ash Street
P.O. Box 736
Salina, Kansas 67402-0736
For the Fiscal Year Ended
December 31, 2002
Prepared by Department of Finance and Administration
of City of Salina, Kansas
This page intentionally left blank.
CITY OF SALINA, KANSAS
Comprehensive Annual Financial Report
For the year ended December 31, 2002
TABLE OF CONTENTS
INTRODUCTORY SECTION
Letter of Transmittal
GFOA Certificate of Achievement for Excellence in Financial Reporting
Organizational Chart
List of Principal Officials
FINANCIAL SECTION
Independent Auditor's Report on the General Purpose Financial Statements
General Purpose Financial Statements:
Combined Balance Sheet - All Fund Types, Account Groups
and Discretely Presented Component Units
Combined Statement of Revenues, Expenditures and Changes
in Fund Balances - All Governmental Fund Types,
Expendable Trust Funds and Discretely Presented
Component Units
Combined Statement of Revenues, Expenditures and Changes
in Fund Balances - Actual and Budget - General, Special
Revenue and Debt Service Funds
Combined Statement of Revenues, Expenditures and Changes
In Retained Earnings/Fund Balances - All Proprietary Fund Types,
Similar Trust Funds and Discretely Presented Component Units
Combined Statement of Cash Flows - All Proprietary Fund Types,
Similar Trust Funds and Discretely Presented Component Units
Notes to the Financial Statements
Combining, Individual Fund and Account Group Statements and Schedules
General Fund
Comparative Balance Sheets - General Fund
Comparative Statements of Revenues, Expenditures and
Changes in Fund Balances - General Fund
Schedules of Revenues, Expenditures and Changes in
Fund Balances - Actual and Budget - General Fund
Statement
1
2
3
4
5
Schedule
1
2
3
Paqe
i - ix
x
xi
xii
1 - 2
3-4
5-6
7-8
9
10-11
12 - 36
37
38
39
40 - 42
CITY OF SALINA, KANSAS
Comprehensive Annual Financial Report
For the year ended December 31, 2002
TABLE OF CONTENTS - CONTINUED
FINANCIAL SECTION - CONTINUED
Special Revenue Funds
Combining Balance Sheet - Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Special Revenue Funds
Schedules of Revenues, Expenditures and Changes in Fund
Balances - Actual and Budget - Special Revenue Funds
Debt Service Fund
Comparative Balance Sheets - Bond and Interest Debt Service Fund
Comparative Statements of Revenues, Expenditures and
Changes in Fund Balances - Bond and Interest Debt Service Fund
Schedules of Revenues, Expenditures and Changes in Fund
Balances - Actual and Budget - Bond and Interest Debt Service Fund
Capital Projects Fund
Comparative Balance Sheets - Capital Projects Fund
Comparative Statements of Revenues, Expenditures and
Changes in Fund Balances - Capital Projects Fund
Enterprise Funds
Combining Balance Sheet - Enterprise Funds
Combining Statement of Revenues, Expenses and
Changes in Retained Eamings - Enterprise Funds
Combining Statement of Cash Flows - Enterprise Funds
Schedules of Revenues, Expenditures and Changes in Retained
Earnings - Actual and Budget - Enterprise Funds
Internal Service Funds
Combining Balance Sheet - Internal Service Funds
Combining Statement of Revenues, Expenses and Changes
in Retained Earnings - Internal Service Funds
Combining Statement of Cash Flows - Internal Service Funds
Schedule of Revenues, Expenditures and Changes in
Retained Earnings - Actual and Budget -Internal Service Funds
Schedule
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Paqe
43 - 44
45 - 46
47 - 48
49 - 59
60
61
62
63
64
65
66
67
68
69
70 - 71
72 - 75
76
77
78
79 - 80
81 - 85
CITY OF SALINA, KANSAS
Comprehensive Annual Financial Report
For the year ended December 31, 2002
TABLE OF CONTENTS - CONTINUED
FINANCIAL SECTION - CONTINUED
Trust and Agency Funds
Combining Balance Sheet - Expendable Trust,
Nonexpendable Trust and Agency Funds
Comparative Statements of Revenues, Expenditures and
Changes in Fund Balances - Expendable Trust Fund
Combining Statement of Revenues, Expenses and Changes
In Retained Earnings - Nonexpendable Trust Funds
Combining Statement of Cash Flows - Nonexpendable Trust Funds
Combining Statement of Changes in Assets and
Liabilities - Agency Funds
General Fixed Assets
Comparative Schedules of General Fixed Assets by Source
Schedule of General Fixed Assets - By Function and Activity
Schedule of Changes in General Fixed Assets - By Function
and Activity
GOVERNMENTAL AUDIT SECTION
Independent Auditor's Report on Compliance and on Internal Control
Over Financial Reporting Based on an Audit of Financial Statements
Performed in Accordance with "Government Auditing Standards"
STATISTICAL SECTION
General Governmental Expenditures by Function - Last Ten Years
General Governmental Revenues by Source - Last Ten Years
General Governmental Tax Revenues by Source - Last Ten Years
Property Tax Levies and Collections - Last Ten Years
Schedule
Paqe
86
20
87 - 88
21
89
22
90
23
91
24
92 - 94
95
25
96
26
97
27
98
99
Table
1 100
2 101
3 102
4 103
CITY OF SALINA, KANSAS
Comprehensive Annual Financial Report
For the year ended December 31, 2002
TABLE OF CONTENTS - CONTINUED
STATISTICAL SECTION - CONTINUED
Assessed and Estimated Actual Value of Property - Last Ten Years
Principal Taxpayers
Property Tax Rates - Direct and Overlapping Govemments
Special Assessments Billings and Collections
Computation of Legal Debt Margin
Ratio of Net General Obligation Bonded Debt to
Assessed Value and Net General Obligation
Bonded Debt Per Capita
Ratio of Annual Debt Service Expenditures for
General Obligation Bonded Debt to Total General
Governmental Expenditures
Computation of Direct and Overlapping Debt
Revenue Bond Coverage - Water and Sewer Fund
Property Value and Construction
Demographic Analysis
Enterprise Fund Operating Position History
Table
Paqe
5
104
6
105
7
106
8
107
9
108
10
109
11
110
12
111
13
112
14
113
15
114
,<'
"
1,'
INTRODUCTORY SECTION
This page left blank intentionally.
Rodney Franz, Director
300 West Ash, P.O. Box 736
Salina, Kansas 67402-0736
City of
~
Salina
TELEPHONE (785) 309-5735
FAX (785) 309-5738
TDD (785) 309-5747
E-MAIL rod. franz@salina.org
Website: www.ci.salina.ks.us
DEPARTMENT OF FINANCE
AND ADMINISTRATION
June 26, 2003
To the Citizens of the City of Salina, Kansas:
The Comprehensive Annual Financial Report of the City of Salina, Kansas (the "City") for the year ended
December 31, 2002, is hereby submitted. Responsibility for both the accuracy of the data and the completeness
and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and
belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly
the financial position and results of operations of all various funds and account groups of the City. All disclosures
necessary to enable the reader to gain an understanding of the City's financial activities have been included.
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate
of Achievement for Excellence in Financial Reporting to the City of Salina for its Comprehensive Annual Financial
Report (CAFR) for the fiscal year ended December 31, 2001. The Certificate of Achievement is a prestigious
national award recognizing conformance with the highest standards for preparation of state and local government
financial reports.
In order to be awarded a Certificate of Achievement, a government unit must publish an E!asily readable and
efficiently organized comprehensive annual financial report, whose contents conform to program standards. The
CAFR must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for one year only. We believe our current report continues to conform to
Certificate of Achievement program requirements, and we are submitting it to GFOA.
The Comprehensive Annual Financial Report is presented in three sections: introductory, financial and statistical.
The introductory section includes this transmittal letter, the City's organizational chart and a list of principal
officials. The financial section includes the general-purpose financial statements as well as the combined,
combining, individual fund and account group financial statements and schedules, and the independent auditor's
report on the financial statements and schedules. The statistical section includes selected financial and
demographic information, generally presented on a multi-year basis.
This report includes all funds and account groups of the City. The City provides a full range of services including
police and fire protection; construction and maintenance of streets, drainage facilities and other infrastructure;
recreational activities and cultural events; emergency medical services and convention facilities. In addition to
general government activities, the City also provides water, wastewater, sanitation and solid waste services;
therefore, these activities are included in the reporting entity.
The reporting entity includes two component units, both proprietary fund types. The Salina Airport Authority
operates the Salina Municipal Airport and Airport Industrial Center, and the Salina Housing Authority administers
public housing programs within the City of Salina. In addition, the City of Salina participates ill two joint ventures
with Saline County, the Salina - Saline County Board of Health and the City-County Buildin~ Authority,
Economic Condition and Outlook
In 2002, the City continued to grow and solidify its standing as the regional trade center for north central and
northwest Kansas. Retail expansion continued to be significant in the community. New commercial building
permits were issued with a combined value of $47,809,924. This is somewhat less than the two previous years,
but still substantially greater than 1999 and earlier. The high level of commercial permits in recent years reflects
in part a $98 million multi-year school improvement project, which will be coming to completion in 2003.
According to a March 2003 Kansas State University study, the City of Salina has the fourth highest "trade pull
factor" among first class cities in the State. The pull factor measures the degree to which a city or county area
captures retail trade from outside the jurisdiction. A pull factor of greater than 1 indicates that a city is attracting
more retail trade from outside the city/county than it is losing to other counties. It is apparent from this that Salina
continues to serve as a regional economic hub in 2002. In addition, Saline County ranks third in the State
Economic Strength index, as outlined by Kansas State University research and extension. The index measures
economic prosperity, using wealth, personal income, and employment.
The growth activity in the local housing industry continued in 2002. The strong local economy and lower interest
rates contributed to this demand. Seventy-four new single-family homes were started in 2002. This is
comparable to previous years and the pace is expected to continue at or above this level through 2003. As of
April 2003, 260 buildable and developing lots were available within the City of Salina, with 60 lots being added
to the City's inventory in 2002. Plans that will add 67 additional buildable lots in existing subdivisions are under
review by the City Development Departments. Two new subdivision plats comprising 116 residential lots have
been filed in early 2003.
Several industrial and commercial establishments in Salina are making major expansions to their facilities:
Lowe's Home Improvement completed a new $4.6 million, 150,000 square foot "Super Center" in Salina in 2002.
The store employs approximately 140 people.
Power Vac, completed a 12,750 square foot expansion, nearly tripling the size of their facility. Power Vac
manufactures cleaning solutions used at Blue Beacon and Green Lantern car washes and employs 27.
Kasa Fab has expanded its operation by more than 35,000 squre feet, and relocated to the South Industral Area.
Kasa provides custom electrical control systems for manufacturing processes. The expansion provides the
groundwork for a 20 percent increase in their employment within 3 years.
COMCARE, a medical partnership, has added a new Imaging Center, providing ultrasound, CT scanning, digital
mammography, nuclear medicine, and MRI. A radiologist will be on site approximately 40 hours per week The
expansion has created 7 new jobs.
Bergkamp Inc., a manufacturer of public works slurry seal and micro surfacing equipment, has acquired the
assets and ongoing business of Akzo Nobel Asphalt Application Equipment Division in Waco, Tex;:¡<; "'1
manufacturing will be moved to Salina, creating approximately 1 0 new jobs.
Major Initiatives
The Salina community initiated a major improvement to the educational system in November 1999, when the
voters approved a $98,000,000 bond issue to be used for school expansion and construction. Also approved
in the same election was an additional X cent City sales tax to be used for instructional technology and career
educational equipment. Bond issue proceeds have been used to construct a new middle school (now complete),
replacing a structure built in 1912. In addition, expansions and improvements are completed or substantially
underway at both high schools, at South Middle School, and at the Elementary Schools. The project continued
to make significant progress in 2002.
The technology sales tax is expected to raise about $12,000,000 to be used for K-12 improvements as well as
improvements to the Salina Area Vo-Tech. The tax for this purpose is scheduled to sunset June 30,2004. From
project inception through the end of 2002, the City has transferred a total of $ 7,796,273.42 in sales tax proceeds
to U.SD. 305 for use in the technology project.
In 2001 the Historic Fox Theatre Foundation announced that they had successfully raised $2,ßOO,OOO in private
donations towards the rehabilitation of the old Fox-Watson Theatre in downtown Salina. Contracts were let, and
the rehabilitation project was completed in early 2003. The building had been vacant since March, 1989 when
II
it was donated to the City. The City of Salina partnered with the Foundation in this endeavor, contributing the
theatre property and an additional $750,000 grant towards restoring the property to a functioning performing arts
facility in the downtown district.
In 2002, the City completed a major extension of water and sewer utilities to the interstate commercial area
located at 1-70 and Ohio Street. This assures that the area has an adequate supply of water to support future
development.
A $4.5 million project to construct an interchange at Waterwell Road and 1-135 has been contracted by the State
of Kansas. This is a cooperative City-County-State Project, with the City of Salina share projected at $950,000.
Saline County will contribute $365,000, with the State of Kansas picking up the balance of the project as part
of a major economic development program. This interchange provides direct service to the South Ninth Street
Industrial Area as well as the Airport Industrial Center.
During 2002 the Salina Airport Authority awarded a contract to construct a new 4,300 foot runway parallel to the
existing runway. The new runway will be used primarily for flight training by Kansas State University-Salina
College of Aviation Technology and by flight operations departments at the major aircraft manufacturer's in
Wichita. Commercial and General Aviation users will benefit from the reduced congestion on the primary runway.
In 2001, the City progressed towards another major transportation objective with the announcement of a grant
to construct a railroad overpass on North Ohio Street, a major arterial and entryway to the city. The State of
Kansas will contribute $12,000,000 towards the $18,000,000 project, with the City of Salina and the railroad
paying the remaining portion. The project will eliminate four tracks and bridge six additional tracks, providing
significant traffic safety enhancements as well as improving access to the City from Interstate 70. During 2002
significant progress was made on project design and property acquisition activities. This project is anticipated
to be contracted in 2005 and completed in late 2007.
Major improvements to the Water Treatment Plant were initiated in 1998 to increase treatment capability and
efficiency, and to address a groundwater contamination issue in Central Salina. This groundwater redemption
project brought the City into full completion of a state compliance agreement, eliminating any economic impacts
related to groundwater issues. Cost for the plant improvements was $5,500,000. Approximately $1,800,000 in
grant funds from the State of Kansas assisted in construction. The balance of the cost is financed by a 20-year
low interest loan from the State of Kansas. A second phase of the project has been initiated, at an additional
estimated cost of $4,000,000, also financed by a 20 year loan. This phase of the project will replace and expand
the clarifiers, provide a new lab facility, as well as an administration building. Completion is anticipated by
December, 2003.
Solid Waste disposal is becoming a stable operation, with 80,000 to 90,000 tons being disposed of each year.
The community remains committed to recycling and resource conservation, with several initiatives that began
in 1997, including a yard waste recycling and composting program in addition to continuing a mulching mower
rebate program. The community currently has about 4,700 yard carts placed to encourage recycling of yard
waste as an alternative to disposal. The Solid Waste Management Committee is currently investigating further
recycling/reuse initiatives. Implementation of a disposal agreement with McPherson County was implemented
2002, enhancing the financial viability of the landfill, as well as meeting a neighbor's needs. The remaining life
of the landfill under current conditions is 91 years. Permanent closure of the first two Subtitll3 D disposal areas
is scheduled for 2003, as well as opening a fourth area.
2002 saw the completion of Phase III of the improvements to South Ninth Street, another major arterial providing
access to the South 9th commercial and industrial districts. The project provides expanded paving, turning lanes,
traffic signals, and other related enhancements at a final cost of $2.6 million. The project will be financed with
a 15 year bond issue in 2003.
Street and drainage improvements were completed to Marymount Road, a major trafficway serving a developing
residential area of the City. The project installed storm drainage structures and reconstructed the street to urban
standards at a cost of $1.2 million. This project will provide support to future development in that area, as well
as improving services to existing residents.
Capital Improvement Pro~ram (CIP)
The City's Capital Improvement Plan (CIP) consists of two components. One component consists of "routine"
capital-including vehicle and equipment replacement, technology replacement, building repair and improvement,
routine pavement maintenance activity, utility system enhancements and similar items. The amount of funding
111
for these projects may fluctuate based on needs and funding availability, however, planned amounts are allocated
over a multi-year period. Source of funding for routine capital is current cash resources from the fund appropriate
to the nature of the purchase.
The second component of the CIP includes major projects that typically require issuance olf bonds or notes,
although these projects may also be supplemented with available cash and grant financing. The plan is updated
each year after an extensive evaluation of the demands on future financial resources.
Construction Initiated*: 2003 2004 2005 2006 2007
Routine Capital (All Funds) $ 3,997,000 $ 3,400,000 $ 5,000,000 $ 4,000,000 $ 4,000,000
Major Projects:
General Fund $ 125,000
Flood and Drainage Fund $ 130,000
Special Park Fund
Gas Tax Fund $ 175,000
Solid Waste Fund
Water & Wastewater Fund $ 100,000
General Obligation Bonds $ 5,940,000 $ 700,000 $ 5,000,000
Revenue Bonds $
Other Sources $ 5,261,600 $ 14,300,000
Total $ 15,728,600 $ 4,100,000 $ 24,300,000 $ 4,000,000 $ 4,OOO,~9_0
Five Year Total $52,128,600
*The year a project is scheduled reflects the year that construction is initiated. Preliminary work (design,
acquisition) may precede this date by one or more years, and permanent financing may not occur until one (or
more years depending on project magnitude) subsequent to this date.
Financial Overview
Despite some adverse economic circumstances, conservative management plus a strong local economy have
set the stage for what has been and is projected to be continued financial stability for the City. The City has been
able to continue to maintain stable fund balances (well above target levels), while continuing existing se!....!\"
levels.
Salina has experienced some impacts of the national economic circumstances, however the diversity and
underlying strength of the local economy has limited the economic stress in the community. Although moderately
higher than last year at 3.6%, the unemployment rate remains well below the State and national average:; ,
addition, this is lower than all but 3 years out of the last 1 0 years. Property tax delinquency remains low cH1d
stable at approximately 3%, and collections on delinquent taxes are higher than is normal, with the result that total
tax collections in 2002 were 99.9% of the amount levied, and special assessment collections were at 100%.
Local retail sales taxes continued to grow at a modest rate, increasing from $12.01 million i:n 2001 to $122('
million in 2002, a growth of about 2.1%. Budgetary basis fund balances at 12/31/2002 exceeded both bud!
and target levels in all major operating funds.
The Water and Sewer fund benefited from the current interest rate environment through fie-financing of the
outstanding 1992 and 1994 revenue bonds, resulting in a reduction of required reserves as well as significant
reductions in future interest expenses. The refinancing resulted in reduction of future debt payments by
$1,580,963.
However, the money markets that resulted in refinancing savings have adversely affected the City of Salina with
respect to interest income. 2002 revenue from this source declined significantly, with the General fund budgetary
basis allocation declining from $585,717 in 2001 to $251,845 in 2002. The performance of this revenue source
is tied directly to economic conditions, and when the economy improves, earnings will slowly recover.
2002 also saw substantial increases in utilization and costs in the Employee Health Insurance Fund, with the
result that the fund experienced a deficit fund equity of $44,090 at the close of the fiscal year. Premiums for the
plan have been increased to offset the increase in costs.
Finally, the State of Kansas, in response to its financial challenges, announced that it was eliminating both the
City-County Revenue Sharing and Local Ad Valorem Tax reduction shared revenues. Both of these State
programs were initiated for the purpose of local property tax relief. The 2002 loss of revenue was about
$169,000. The full impact in 2003 and beyond will be about $800,000 per year.
IV
Budqetarv and Financial Controls
A critical part of the control system is the City's comprehensive Budgetary and Financial Policiies, which establish
guidelines for budgetary and financial practices. The Budgetary and Financial Policies are reviewed by the City
Commission and updated each year as a part of the budget process.
City staff is responsible for establishing and maintaining an internal control structure designed to ensure that the
assets of the City are protected from loss, theft or misuse and that adequate accounting data is compiled to allow
for the preparation of financial statements in conformity with generally accepted accounting principles. The
internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives
are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the
benefits likely to be derived; and (2) the valuation of costs and benefits require estimates and judgment by
management.
The objective of budgetary controls is to ensure compliance with legal provisions embodied in the annual
appropriated budget approved by the City Commission. The legal level of budgetary control is maintained at the
Fund level, in accordance with State Statutes. However, management control is maintained at the department
level. The City uses an encumbrance accounting system, in which estimated purchase amounts are recorded
prior to the release of purchase orders to vendors. Open encumbrances are reported as rHservations of fund
balance at December 31, 2002 in the general fund and the special revenue funds. Various internal compliance
procedures are implemented to insure proper implementation of the budget as well as to maintain a degree of
accountability for both revenues and expenditures.
Budqetarv Basis Fund Balances, Taxinq Funds
Shown below are the December 31 actual budgetary basis fund balances in the city's tax supported funds for
2000, 2001, and 2002.
Fund balance as % Revenue
2000 2001 2002
$5,241,625 $5,816,308 5,414,814
1,247,984 758,314 612,678
235,526 124,567 233,054
942,981 945,210 983.414
$7,668,116 $7,644,399 $7,243,960
---------- ---------- ------.----
---------- ---------- ------.----
$28,747,771 $29,810,814 $27,568,116
---------- ---------- ------.----
---------- ---------- ------.----
26.7% 25.6% 26.3%
------ ------ --.----
------ ------ --.----
Fund
General
Employee Benefits
Flood and Drainage
Bond and Interest
Total Fund Balance
Tax Funds Revenues
Budgetary fund balances represent the short term ability of the City to address cash flow fluctuation and to absorb
and respond to adverse changes in the economy or to unanticipated demands on the government to provide
additional services as a result of an emergency. Current budgetary policy establishes a minimum target for the
General Fund of 15% of current year revenues. The actual General Fund unencumbered balance as of
12/31/2002 represents 23.5% of current revenue, well in excess of the target balance. Targets for the other
taxing funds are somewhat lower. Balances remain well in excess of these targets, and are more than adequate
to address potential needs.
Revenues, General. Special Revenue. and Debt Service Funds:
The following table presents a summary of General Fund, Special Revenue Funds and Debt Service Fund GMP
basis revenues for the years ended December 31, 2001 and 2002. Revenues to Capital Projects and Fiduciary
type funds are excluded.
v
2001 - 2002 2001 % of 2002 % of
Revenue Change 2001 Total 2002 Total
Property Taxes $1,006,460 $7,079,205 20% $8,085,665 23%
Sales Taxes $247,077 12,010,742 35% 12,257,81H 35%
Other Taxes ($147,368) 3,192,683 9% 3,045,31!:; 9%
Total Taxes $1,106,169 22,282,630 64% 23,388,79H 67%
Intergovernm ental ($314,939) 3,916,482 11 % 3,601,54:3 10%
Fees and Charges 20,495 2,107,409 6% 2,127,904 6%
Special Assessm ents ($31,363) 1,320,324 4% 1,288,961 4%
Other Revenues ($707,459) 5,001,469 14% 4,294,010 12%
Total Revenues 72,903 34,628,314 100% 34,701,21L 100%
Total GMP basis revenues increased by $72,903 or about .2%. The overall increase masks some significant
underlying changes. Other Taxes decreased by $147,368. This is entirely attributable to Franchise taxes, and
reflects the volatility of gas prices, which were very high in early 2001, returning to normal levels for 2002.
Intergovernmental revenues declined significantly. About $150,000 of this decline was in the General Fund,
reflecting the cutbacks to State Aids made by the Legislature. The remainder of the change was due to the
completion of the A-Plus Economic Development project from the Department of Housing and Urban
Development. This was a "pass-through program", and has a corresponding expenditure reduction. The Fair
Housing program also received some significant increases in distributions.
The decline in other revenues reflects a decrease in investment income, resulting from the low interest rates, and
to a decline in Bicentennial Center event revenues of approximately $220,000.
A review of the revenue history reveals that total taxes are a slightly larger proportion of the revenue stream in
2002 (67%) compared to 1993 (64%). However, within the classification of taxes, there has been a pronounced
shift from reliance on the property tax to sales and other taxes. (See statistical tables 2 and 3 on pages 101 and
102.) This is consistent with the long-term policy goal of the community to reduce reliance on property taxes
where prudent and possible.
Expenditures, General, Special Revenue, and Debt Service Funds:
The following table presents a summary of General Fund, Special Revenue Funds and Debt Service Fund GMP
basis expenditures for the years ended December 31, 2001 and 2002. The table excludes revenues to Capital
Projects and Fiduciary Funds.
2001 - 2002 2001 % of 2002 % of
Expenditure Change 2001 Total 2002 Total
General Government ($104,350) $2,226,839 6% $2,122,489 6%
Public Safety 643,207 11,326,371 33% 11,969,578 34%
Public Works 250,578 4,865,373 14% 5,115,951 14%
Culture and Recreation (45,154) 4,340,351 13% 4,295,197 12%
Community Development 33,810 4,152,742 12% 4,186,552 12%
Public Health and Sanitation (13,638) 885,198 3% 871,5610 2%
Subtotal, Operating Items 764 .453 27,796,874 28,561,327
Debt Service (11,583) 3,324,479 10% 3,312,896 9%
Capital Outlay 411 3,473,503 10% 3,473,914 10%
Total Expenditures 753.281 34,594,856 100% 35,348,13I 100%
Total expenditures increased by $753,281 or 2.2%. The bulk of this increase is in Public Safety (5.7%) and
Public Works (5.2%). Within Public Safety, approximately half of the increase is attributable to Municipal Court
expenses. This reflects the additional cost of housing prisoners in the Saline County jail. Within Public Works,
the most significant increases occurred as a result of utility (Electric, Gas, Water and Sewer) costs.
vi
Proprietary Operations
The City has four enterprise operations: Water and Sewer, Golf Course, Solid Waste and Sanitation. The table
below summarizes some key operational statistics for the enterprise funds:
2001 - 2002 Change 2001
Charges for Services:
Water and Sewer $963,589 $11,601,042 $12,564,631
Sanitation 21,816 1,615,873 1,637,689
Solid Waste 97,325 2,073,777 2,171,102
Golf Course 32,284 804,166 836,450
Water Account billings 632 231,012 231,644
Water Metered (billion gallons) 0.134 2.143 2.277
Solid Waste Tonnage at landfill 6,372 76,416 82,788
Golf Rounds: 18 Hole 814 39,716 40,530
Golf Rounds: Par3 19 6,601 6,620
Sanitation Custom ers 425 13,392 13,817
2002
A comprehensive five year rate study of the Water and Sewer systems was completed in latH 2001. As a result
of that study, water rates were increased an average of 3.2% and sewer rates increased by an average of 5.7%
for 2002. In addition, the volume of water sold increased. As a result, Water and sewer operating revenues
increased by $ 963,589 in 2002. Operating income (Operating Revenue less Operating expense) for the utility
was $1,807,277 compared to $940,939 in 2001. The change in operating income was due wholly to increases
in revenue. On a budgetary basis, revenues exceeded expenditures by $546,028.
2002 GAAP Basis Operatinq Results
Water and
Sewer Solid Waste Sanitation Golf course
Operating Revenues $ 13,435,656 $ 2,210,231 $ 1,638,280 $ 867,108
Operating Expense $ 11,628,379 $ 2,049,152 $ 1,654,313 $ 832,914
Operating Income (Loss) $ 1,807,277 $ 161,079 $ (16,033) $ 34,194
Non-Operating Revenues
(Expenses) and Transfers $ (819,921) $ 62,622 $ 20,208 $ 3,065
Net Income (Loss) $ 987,356 $ 223,701 $ 4,175 $ 37,259
The City continued to meet subtitle D Federal regulations at the Solid Waste Disposal facility. Rates were
decreased to $27/ton in 2000, and maintained at this level through 2002. This fund appears now to be stable,
and any future rate changes should be on a scale consistent with inflationary trends. Operating revenues
increased by $115,531, consistent with the increase in volume. Operating income was $161,079. This fund
maintains a healthy budgetary fund balance of $1,853,431, and adequate resources to service the debt on new
cells as they are constructed. On a budgetary basis, expenditures exceeded revenues by $545,402.
Sanitation operating revenues increased by $22,366 while the customer base grew by about 3% in 2002.
Sanitation rates were not changed in 2002. Net operating loss was $16,033, down from an operating income of
$33,745 in 2001. On a budgetary basis, expenditures exceeded revenues by $9,322. The budgetary basis fund
balance was $486,020, well above target.
Golf Course operating income was $34,194, down from $255,851 in 2001. This represents a change back to
routine operations in 2002. Significant expenditures were deferred in 2001 to re-establlish solvency after
significant losses in the prior year. These deferrals resulted in unusually high operating income for that year.
On a budgetary basis, revenues exceeded expenditures by $23,539. The budgetary basis fund balance was
$132,865, comfortably above the target of $100,000.
Vll
Internal Services:
The City provides a partial self funded health insurance program for employees. Individual stop loss coverage
is purchased with an attachment point of $75,000. For 2002, the aggregate stop loss coverage was set at
$3,726,826. Dental coverage is provided. The dental portion of the plan is fully self-insured and not subject to
stop loss protection, however, total benefits are limited to $1,500 per year per person. Since February 1999, the
prescription portion of the program is also fully self-insured. The fund is fully funded by participant and employer
premiums. During 2002, the fund encountered significant adverse experience and medical cost increases, with
the result that the fund experienced an operating loss of $987,641. Retained earnings at year-end were a deficit
of $44,090, while budgetary basis unreserved fund balance was a positive $396,031. Premiums were increased
in February, 2003 in an amount designed restore the solvency of the fund.
The City provides workers compensation through a partially self-insured program. The Worker's Compensation
Reserve is used to buy excess insurance coverage, compensate a third party claims administrator and pay claims
as they arise. The City's goal is to establish a $750,000 reserve in this fund to provide adequate reserves should
we experience heavy claims. At the end of 2002, budgetary basis fund balance, including the claims reserve,
totaled $848,771, meeting this goal. Retained earnings were $718,148.
The Risk Management Fund is used to pay premiums for liability and casualty coverage for the City. Costs are
recovered through charges to operational funds, investment income, and restitution for damages. Operating
income for the fund was $17,062. Budgetary fund balance was $193,423, well in excess of targets.
The Information Services fund provides for joint operation of computer systems with Saline County. Costs are
apportioned to City Departments and Saline County based upon usage. Operating income for 2002 was
$355,373. Budgetary base fund balance at 12/31/2002 was $734,062, well above target levels.
Central Garage provides fleet maintenance to City Vehicles, and to some Saline County vehicles. Costs are
recovered through use charges to participating Departments. The fund experienced an operating loss of $51,892
in 2002. This was recovered through transfers from the City General and Water and Sewer Fund. Budgetary
basis fund balance at 12/31/2002 was $209,153.
Debt Administration
The City refinanced several outstanding revenue bonds during 2002. In February, $2,04!;,000 in General
Obligation refunding bonds were issued to refinance $2,295,000 in outstanding 1993 Revenue Bonds. This issue
resulted in an economic gain of $93,218, and future debt service savings of $534,167. These General Obligati)i
bonds are to be retired with utility revenue proceeds.
In August, $6,790,000 in Revenue Refunding bonds were issued to advance refund $E>,790,000 of the
$10,690,000 outstanding 1994 Revenue bonds. The balance of the 1994 bonds was retired with avaiL>!)!;
resources remaining in construction and reserve funds. The transaction resulted in an economic
$800,920 and future debt service savings of $1,580,963. The total amount of revenue bonds outstandlllg at
December 31,2002 was $6,790,000. The final maturity for these bonds is September 1,2012.
The City's general policy for General Obligation bonds is to issue them for no more than 10 years for the City at
large portion, with some exceptions permitted for extraordinary projects. On special assessment bonds, the
maturity may be up to 15 years. The City issued $1,980,000 of intemal improvement bonds during 2002. Total
General Obligation/Internal Improvement bonds outstanding at December 31,2002 was $24,!~15,942 with final
maturity scheduled for October 1,2017. Of this amount, $11,369,854 are to be retired wilth pledged utility
revenues, special assessments, and current resources in the Bond and Interest fund. Thus, $13.546,088 remain
to be retired with future property tax revenues. Based upon this, per capita general obligation debt is $296.23.
The City is well below its maximum debt limit with $80,149,221 in authority remaining.
Internal Improvement temporary notes in the amount of $4,865.000 were issued in 2002. Projects included street
and drainage improvements, and water and sewer extensions, as well as preliminary design for the North Ohio
grade separation project. These notes will be rolled to long term Bonds in 2003, which will ultimately be retired
with a combination of general taxes, special assessments and utility revenues.
Cash Mana~ement
The State of Kansas prescribes general investment authority for political subdivisions of the State. The City of
VIII
Salina has established an investment policy that complies with statutory authority, allowing maturities for up to
two years and investments in the State of Kansas Municipal Investment Pool. The City stresses a conservative
investment policy which provides full collateralization of investments. At December 31,2002, investments under
the City's direct control were as follows:
Investment Amount Percentaqe
Municipal Investment Pool $ 4,887,855 57.7
U.S. Government 6,012,553 42.3
Total $ 10900408 100.00%
In addition, the carrying amount of deposits was $17,385,959 plus $14,363 cash on hand.
Independent Audit
Kansas Statutes Annotated 75-1122 requires an annual audit of the books of account, financial records and
transactions of all administrative departments of the City by independent certified public accountants selected
by the City Commission. This requirement has been complied with and the auditor's opinion has been included
in this report.
Acknowledç¡ments
The preparation of the Comprehensive Annual Financial Report was made possible by the dedicated,
professional advice and effort of the Lowenthal, Singleton, Webb, and Wilson auditing team. A special thank
you needs to be given to Valerie Gebhardt, City Accountant, who is responsible for much of the data assembly
and reconciliation, and to Penny Day, Account Clerk III, who has been largely responsible for document assembly
and production. Finally, preparation of this report would not have been possible without the support of the City
Commission.
Sincerely,
~Æ~.
D .MK"~
ennts . Issmger
City Manager
~
Rodney ;,~ ~
Director J;¡~anU Administration
IX
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Certifica te of
Achievelllen t
for Excellence
in Financial
Reporting
Presented to
Ci ty of Salina,
Kansas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2001
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
~~Û6: .
President
~/?~
Executive Director
CITIZENS
CITY COMMISSION
Alan E. Jilka, Mayor
Deborah P. Divine
Donnie D. Marrs
Monte D. Shadwick
Paul G. Webb
Development Services
Coordination
Deputy City Manager
Michael Morgan
Building Services
~
Assistant City Manager
Jason Gage
Planning & Development
Dean Andrew
Risk Management
Human Resources
Administration
Fire Suppression
EMS
Codesllnspection
Public Education
Operations
Food & Beverage
Businessfficket Office
-"""
Engineering
Designllnspection
Traffic
General Services
Streets
Flood Works
Traffic Control
Central Garage
Sanitation
City Clerk
Accounting
Utility Accounting
Treasurer
* Contract Position
Municipal Court Judge
Robert Thompson
'....m..
City Attorney
Greg Bengtson *
Municipal Court
Administration
City Prosecutor
Jennifer Wyatt
Computer Technology
Jack Rolfs
Human Relations
Kaye Crawford
Water & Wastewater
Water Treatment & Dist.
Wastewater Collect.rrreat.
Solid Waste (Landfill)
Museum
Arts Education
Arts Services
River Festival
Horizons Grants Program
Community Art & Design
Patrol
Investigations
91llCommunications
Internal Affairs
Swimming Pools
Golf Course
Neighborhood Centers
Parks
Recreation
Forestry
Cemetery
\..Building Maintenance
City of Salina, Kansas
List of Principal Officials
City Commission
Alan Jilka, Mayor
Monte Shadwick, Vice-Mayor
Deborah Divine, Commissioner
Donnie Marrs, Commissioner
Paul Webb, Commissioner
City Staff
Dennis M. Kissinger, City Manager
Michael Morgan, Deputy City Manager
Jason Gage, Assistant City Manager
Rodney Franz, Director of Finance and Administration
Don Hoff, Director of Utilities
Jim Hill, Chief of Police
Darrell Eastin, Fire Chief
Shawn O'Leary, Director of Engineering and General Services
Keith Rawlings, Bicentennial Center Manager
Steve Snyder, Parks and Recreation Director
Dean Andrew, Planning & Community Development Director
Barbara Koostra, Director of Arts and Humanities
Kaye Crawford, Human Relations Director
Greg Bengtson, City Attorney
This page intentionally left blank.
FINANCIAL SECTION
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David A. Lowenthal, CPA
Thomas E. Singleton, CPA
Patricia L. Webb, CPA
Thomas G. Wilson, CPA
LOWENTHAL SINGLETON WEBB & WILSON
PROFESSIONAL ASSOCIATION
CERTIFIED PUBLIC ACCOUNTANTS
900 Massachusetts, Suite 301
Lawrence, Kansas 66044-2868
Phone: (785) 749-5050
Fax: (785) 749-5061
E-mail: Iswwcpa@lswwcpa.com
Kenneth R. Hite, CPA
Mary A. LeGresley, CPA
Audrey M. Odennann, CPA
Members of American Institute
and K¡llisas Society of
Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT ON THE GENERAL PURPOSE FINANCIAL STATEMENTS
Mayor and City Commission
City of Salina, Kansas
We have audited the accompanying general purpose financial statements of City of Salina, Kansas, (the City) as of
and for the year ended December 31, 2002 as listed in the table of contents. These general purpose financial
statements are the responsibility of the City of Salina's management. Our responsibility is to express an opinion on
these financial statements based on our audit. We did not audit the financial statements of the Salina Airport
Authority which statements reflect total assets of $29,402,373 as of December 31, 2002 and total revenues of
$1,387,079 for the year then ended, and the Housing Authority of the City of Salina which statements reflect total
assets of $7,130,073 as of December 31, 2002 and total revenues of $1,273,882 for the year then ended, which are
discretely presented component units in the accompanying financial statements. Those financial statements were
audited by other auditors whose reports thereon have been furnished to us, and our opinion, insofar as it relates to
the amounts included for the Salina Airport Authority and the Housing Authority of the City of Salina, is based solely
on the reports of the other auditors.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in "Government Auditing Standards," issued by the
Comptroller General of the United States and the "Kansas Municipal Audit Guide." Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement presentation. We
believe that our audit and the reports of other auditors provide a reasonable basis for our opinion.
In our opinion, based on our audit and the reports of other auditors, the general purpose financial statements
referred to above present fairly, in all material respects, the financial position of City of Salina, Kansas, as of
December 31, 2002, and the result of its operations and the cash flows of its proprietary fund types and
nonexpendable trust funds for the year then ended, in conformity with accounting principles generally accepted in
the United States of America.
In accordance with "Government Auditing Standards," we have also issued our report dated May 14, 2003, on our
consideration of City of Salina, Kansas's internal control over financial reporting and our tests of its compliance with
certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in
accordance with "Government Auditing Standards" and should be read in conjunction with this report in considering
the results of our audit.
Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the
City of Salina, Kansas, taken as a whole. The combining, individual fund, and account group financial statements
and schedules and additional information as listed in the table of contents are presented for purposes of additional
analysis and are not a required part of the general purpose financial statements of the City of Salina, Kansas.
These additional financial statements, schedules and information have been subjected to the auditing procedures
applied in the audit of general purpose financial statements and in our opinion, is fairly stated, in all material
respects, in relation to the general purpose financial statements taken as a whole.
1
Mayor and City Commission
City of Salina, Kansas
Page 2
We did not audit the data included in the introductory and statistical sections of this report and therefore, we express
no opinion thereon.
d~1 ~~ ~ ~w;J
Professional Association
May 14, 2003
2
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Statement 1
1 of2
CI1Y OF SALINA, KANSAS
COMBINED BALANCE SHEET -
ALL FUND 1YPES, ACCOUNT GROUPS AND
DISCRETELY PRESENTED COMPONENT UNITS
December 31, 2002
Proprietary
Governmental Fund Types Fund Types
Special Debt Capital Internal
General Revenue Service Projects Enterprise Service
ASSETS AND OTHER DEBITS
ASSETS
Cash and investments $ 6,341,230 $2,925,721 $ 983,414 $628,791 $12,376,482 $2,502,910
Investments - component unit
Cash with fiscal agent 85,269
Receivables (net of allowance
for doubtful accounts)
Accounts 952,405 36,763 867,777
Taxes 2,352,889 4,073,304 1,747,696
Notes 28,016
Grants 17,995
Interest 106,991 33,674 16,616 15.729 ??7/::P,' .1'1 ,., f\ '
Mortgage
Due from other funds
Due from others
Inventory and prepaid supplies 88,299 452,436 62,536
Restricted assets
Cash and investments 1,099,224
Fixed assets (net of accumulated
depreciation where applicable) 57,55401';'; ?64.894
Financing leases
Deferred charges 432,736
OTHER DEBITS
Amount available in debt service funds
Amount to be provided for retirement
of general long-term debt --
Total assets and other debits $ 9,859,809 $ 7,097,478 $ 2,832,995 $644,520 $73,01~ $ 2,872,629
Fiduciary Total Component Total
Fund Types Account Groups Primary Units Reporting
General General Government Salina Salina Entity
Trust and Fixed Long- (Memoran- Housing Airport (Memoran-
~ Assets Term Debt dum Only) Authority Authority dum Only)
$ 1,442,958 $ - $ - $ 27,201,506 $ 445,503 $ 3,386,102 $ 31,033,111
347,836 :W7,836
85,269 85,269
1,856,945 3,851 80,591 1 ,B41 ,387
8,173,889 977,990 9,151,879
28,016 28,016
17,995 17,995
7,922 450,784 88 450,872
34,119 34,119
21,365 21,365
96,158 96,158
603,271 27,506 4,315 635,092
1,099,224 41,475 85,000 1,225,699
34,126,568 91,945,522 6,112,172 23,700,563 121,758,257
1,050,764
432,736 117,048 549,784
1,000,030 1,000,030 1,000,030
23,774,880 23,774,880 23,774,880
$ 1,450,880 $ 34,126,568 $ 24,774,910 $156,670,067 $ 7,130,073 $ 29,402,373 $193,202,513
The notes to the financial statements are an integral part of this financial statement.
3
Statement 1
1of2
Statement 1
2 of2
LIABILITIES, EQUITY AND OTHER CREDITS
LIABILITIES
Accounts payable
Retainage payable
Deposits payable
Accrued claims payable
Payable from restricted assets
Accrued interest payable
Revenue bonds payable - current
Deferred interest-financing leases
General obligation bonds - current
Loans payable - current
Loans payable
Revenue bonds payable
Special assessment debt - current
Special assessment debt
Temporary notes payable
Accrued compensated absences
Matured bonds and interest payable
Due to other funds
Due to others
Accrued landfill postclosure care costs
General obligation bonds payable
Deferred revenue
Total liabilities
EQUITY AND OTHER CREDITS
Investment in general fixed assets
Contributed capital
Retained earnings
Reserved for bond retirement
Reserved for postclosure care
Unreserved
Fund balances
Reserved for encumbrances
Reserved for notes receivable
Unreserved
Designated for debt service
Undesignated
Total equity and other credits
Total liabilities, equity and other credits
CITY OF SALINA, KANSAS
COMBINED BALANCE SHEET -
ALL FUND TYPES, ACCOUNT GROUPS AND
DISCRETELY PRESENTED COMPONENT UNITS
December 31, 2002
Governmental Fund Types
Proprietary
Fund Types
General
Special
Revenue
Capital
Projects
Enteíi~__-
',-,'
Debt
Service
$ 489,010 $ 112,617 $
20,769
- $
- $
149,873
399,135 $ 102,570
222,908
99,113
592,217
224,620
5i'5,000
1,039,520
211 '
7,362,829
6,215,000
580,631 38,026
85,269
1,164,833
6,148,233
2,352,889 3,539,664 1,747,696 --
2,841,899 3,673,050 1,832,965 149,873 24,243,249 --_Z_:gQl~
9,8!;1,503 644,265
1,114,957
3:~6,423
37,464,146 1,495,551
437,406 377,950 1,733,872
28,016
1,000,030
6,580,504 3,018,462 [1,239,225] --
7,017,910 3,424,428 1,000,030 494,647 48,7!57,029 2,139,816
$ 9,859,809 $ 7,097,478 $ 2,832,995 $ 644,520 $ 73,010,278 $ 2,872,629
Fiduciary Total Component Total
Fund Types Account Groups Primary Units Reporting
General General Government Salina Salina Entity
Trust and Fixed Long- (Memoran- Housing Airport (Memoran-
AQency Assets Term Debt dum Only) Authority Authority dum On!ïl
$ 1,091,183 $ - $ - $ 2,194,515 $ 57,296 $ 184,569 $ 2,436,380
393,550 393,550
99,113 30,140 129253
592,217 592217
224,620 105,752 330,,372
575,000 70,000 645,000
11,336 56,953 68,289
2,344,754 3,384,274 895,000 4,279,274
211,427 51,990 263,417
7,362,829 218,630 7,581,459
6,215,000 245,000 6,460,000
29,758 29,758
506,805 506,805
4,865,000 4,865,000 4,865,000
2,181,721 2,800,378 11,828 2,812,206
85,269 85,269
21,365 21,365
25,839 25,839
1,164,833 1,164,833
15,383,435 21,531,668 6,265,000 27,796,668
7,640,249 1,747 1,014,443 8,656,439
1,091,183 24,774,910 59,339,942 159,551 9,643,900 69,143,393
34,126,568 34,126,568 34,126,568
10,495,768 5,330,767 8,488,854 24,315,389
1,114,957 1,114,957
336,423 336,423
359,697 39,319,394 1,639,755 11,269,619 52,228,768
2,549,228 2,549,228
28,016 28,016
1,000,030 1,000,030
8,359,741 8,359,741
359,697 34,126,568 97,330,125 6,970,522 19,758,473 124,059,120
$ 1,450,880 $ 34,126,568 $ 24,774,910 $ 156,670,067 $ 7,130,073 $ 29,402,373 $193,202,513
The notes to the financial statements are an integral part of this financial statement.
4
Statement 1
2 of2
Statement 2
10f2
CITY OF SALINA, KANSAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-
ALL GOVERNMENTAL FUND TYPES, EXPENDABLE TRUST FUNDS
AND DISCRETELY PRESENTED COMPONENT UNITS
For the fiscal year ended December 31,2002
Revenues
Taxes
Special assessments
Intergovernmental
Fees and charges
Miscellaneous revenues
Total revenues
Expenditures
Current
General government
Public safety
Public works
Culture and recreation
Public health and sanitation
Community development
Capital outlay
Debt service
Principal
Interest and other charges
Total expenditures
Excess [deficiency] of revenues
over [under] expenditures
Governmental Fund Types
General
Special
Revenue
Debt
Service
$17,177,266 $4,354,723 $1,856,810 $
1,288,961
1,461,340
1,490,657
3,131,242
23,260,505
1,935,757
9,924,484
3,952,243
1,860,573
722,897
3,432,778
1,820,570
23,649,302
2,140,203
637,247
1,046,507
8,178,680
186,732
2,045,094
1,163,708
2,434,624
148,663
753,774
1,653,344
90,000
4,250
8,480,189
116,261
3,262,032
2,277,322
941,324
3,218,646
Capital
Projects
9,297
40,085
49,382
4,666,144
5,485
4,671,629
Fiduciary
Fund Types
Expendable
Trust
$
1,193
1,193
11,ï79
11, ï79
Total
Primary
Government
(Memoran-
dum Only)
$ 23,388,799
1,298,258
3,601,543
2,127,904
4,335,288
34,751,792
? 1?? M\O
5Y¡ 5,951
4,306,976
871,56C
4,186,552
8,140,058
.-, ",~-,
_\) _~U5L¡.
40,031,545
$
[388,797] $ [301,509] $
43,386 $ [4,622,247] $ [10,!~ $ [5,279,753]
The notes to the financial statements are an integral part of this financial statement.
5
Statement 2
2 of2
CITY OF SALINA, KANSAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-
ALL GOVERNMENTAL FUND TYPES, EXPENDABLE TRUST FUNDS
AND DISCRETELY PRESENTED COMPONENT UNITS
For the fiscal year ended December 31,2002
Fiduciary Total
Governmental Fund Types Fund T~ Primary
Government
Special Debt Capital Expendable (Memoran-
General Revenue Service Projects Trust dum Only)
Other financing sources [uses]
Operating transfers in $ 91,772 $ 507,091 $ - $ $ $ 598,863
Operating transfers out [262,500] [398,863] [661,363]
Bond proceeds 5,893,326 5,893,326
Sale of assets 61,468 -- 61,468
Total other financing sources [uses] [109,260] 108,228 - 5,893,326 5,892,294
--
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses] [498,057] [193,281] 43,386 1,271,079 [10,586] 612,541
Fund balances, January 1 7,471,125 3,644,071 956,644 [776,432] 44.,469 11,339,877
Residual equity transfer in 44,842 44,842
Residual equity transfer [out] [26,362] -- [26,362]
Fund balances, December 31 $7,017,910 $ 3,424,428 $1,000,030 $ 494,647 $ 33,883 $11,970,898
The notes to the financial statements are an integral part of this financial statement.
6
Statement 3
1 of 2
CITY OF SALINA, KANSAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-
ACTUAL AND BUDGET - GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUNDS
For the fiscal year ended December 31,2002
General Fund
Variance
Positive
Actual BudQet rNeQativel
$ 17,177,266 $ 17,137,95,3 $ 39,313
1,435,447 1,706,42.9 [270,982]
1,480,047 1,434,000 46,047
2,906,797 2,733,82.5 172,972
22,999,557 23,012,207 [12,650]
Revenues
Taxes
Intergovernmental
Fees and charges
Miscellaneous revenues
Total revenues
Expenditures
Current
General government
Public safety
Public works
Public health and sanitation
Culture and recreation
Community development
Health Insurance
Capital outlay
Debt service
Principal
Interest and other charges
Cash reserve
1,878,114 2,081,312
9,853,971 9,575,168 [218,Jû.3j
3,902,283 3,864,327 [37,956]
720,964 732,623 11,659
1,835,118 1,818,362 [16,756]
3,483,951 3,439,656 [44,295]
1,669,566 2,028,OS19 358,53.3
4,293,328
4,293,328
Total expenditures
23,343,967
27,832,875
4,488,908
Excess [deficiency] of revenues
over [under] expenditures
[344,410] [4,820,66~ 4,476,258
91,772 17,000 74,772
[262,500] [262,500]
61,468 45,000 16,468
[109,260] [200,50..Q] 91,240
Other financing sources [uses]
Operating transfers in
Operating transfers out
Sale of assets
Total other financing sources [uses]
Budgeted Special Revenue Funds Debt Service Fund
Variance Variance
Positive Positive
Actual Budqet rNeqativel Actual Budqet rNeqative}
$ 4,352,873 $ 4,382,865 $ [29,992] $ 1,856,811 $ 1,890,600 $ [33,789]
1,977,477 1,841,432 136,045
905,648 915,000 [9,352]
58,033 290,131 [232,098] 1,400,039 1,300,000 100,039
7,294,031 7,429,428 [135,397] 3,256,850 3,190,600 66,250
175,715 188,240 12,525
2,045,094 2,130,602 85,508
637,156 628,014 [9,142]
148,663 156,754 8,091
2,046,318 2,058,815 12,497
726,804 753,800 26,996
8,794 10,000 1,206
1,652,551 1,851,450 198,899
90,000 90,000 2,277,322 2,287,329 [10,007]
4,250 8,200 3,950 941,324 928,961 12,363
1,476,258 1,476,258 758,665 [758,6~
7,535,345 9,352,133 1,816,788 3,218,646 3,974,955 756,309
[241,314] [1,922,705] 1,681,391 38,204 [784,355] 822,559
507,091 310,000 197,091
[307,091] [310,000] 2,909
200,000 200,000
The notes to the financial statements are an integral part of this financial statement.
7
Statement 3
1 of 2
Statement 3
2 of2
CITY OF SALINA, KANSAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-
ACTUAL AND BUDGET - GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUNDS
For the fiscal year ended December 31, 2002
General Fund
Actual
Budqet
Variance
Positive
rNeqativel
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]
Prior year cancelled encumbrances
Residual equity transfer in
Residual equity transfer [out]
$ [453,670] $ [5,021,168] $ 4,567,498
5,816,308 5,021,168 795,140
7,334 7,334
44,842 44,842
Unreserved fund balances, January 1
Unreserved fund balances, December 31
5,414,814
Interest receivable
Accounts receivable
Taxes receivable
Grants receivable
Inventory reconciliation
Retainage
Current year encumbrances
Non-budgeted funds
106,991
952,405
17,995
88,299
437,406
Fund Balance, December 31
$ 7,017,910
Budgeted Special Revenue Funds
Variance
Positive
Actual Budqet rNeqativel
Debt Service Fund
Actual
Budqet
Variance
Positive
rNeqativel
$ [41,314] $ [1,922,705] $ 1,881,391 $ 38,204 $ [784,355] $ 822,559
2,157,573 1,922,705 234,868 945,210 784,355 160,855
18,988 18,988
[26,362] [26,362]
2,108,885 $ - $ 2,108,885 983,414 $ - $ 983,414
29,082 16,616
36,763
533,640
[20,769]
377,950
358,877
$ 3,424,428 $ 1,000,030
The notes to the financial statements are an integral part of this financial statement.
8
Statement 3
2 of2
Statement 4
CITY OF SALINA, KANSAS
COMBINED STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS
ALL PROPRIETARY FUND TYPES, SIMILAR TRUST FUNDS AND
DISCRETELY PRESENTED COMPONENT UNITS
For the fiscal year ended December 31, 2002
Proprietary Fund Types
Enterprise
Internal
Servic~
Operating revenues
Charges for services
Reimbursements
Gain on sale of assets
Miscellaneous
Total operating revenues
$ 17,209,872 $ 5,755,360 $
777,766 251,465
163,637
18,151,275
3,681
6,010,506
Operating expenses
General government
Public works
Recreation
Depreciation
Other
Total operating expenses
6,746,610
12,046,796
771,815
3,346,147
85,854
16,164,758
6,832,464
[821.,958] _--1253
---,">"> ">--,,-
Operating income [loss]
1,986,517
Nonoperating revenues [expenses]
Use of money and property
Operating grants
Debt service
Interest on lease obligations
Gain [loss] on disposition of fixed assets
Total nonoperating revenues [expenses]
444,256 91,955
[982,077]
[4,987]
[133,705]
[671,526] 86,968
1,314,991 [734.,990]
2,564,181 125,000
[2,626,681]
[62,500] 125,000
1,252,491 [609.,990]
Net income [loss] before operating transfers
Operating transfers
Transfers in
Transfers [out]
Total operating transfers
Net income [loss]
Depreciation on fixed assets acquired by contributions - component unit
Increase [decrease] in retained earnings - component unit
1,252,491 [609,,990]
38,077,726 2,077,681
[396,211] 27,860
37,681,515 2,105,541
3.663,545
[3,682,025]
Retained earnings, January 1
Prior period adjustment
Retained earnings, Restated January 1
Residual equity transfer in
Residual equity transfer out
Retained earnings, December 31
$ 38,915,526 $ 1,495,551 $
Fiduciary
Fund Type
Non-
expendable
Trust
7,788
7,788
,,<'
11,744
11,744
19,497
19,497
19,497
306,317
306,317
325,814
Total Component Total
Primary Unit Reporting
Government Salina Salina Entity
(Memoran- Housing Airport (Memoran-
dum Only) Authority Authority dum Only)
$ 22,973,020 $ 1,252,527 $ 1,318,451 $ 25,543,998
1,029,231 1,029,231
29,455 29,455
167,318 21,355 39,173 227,846
24,169,569 1 ,273,882 1,387,079 26,830,530
6,746,610 6,746,610
12,046,796 12,046,796
771,815 771,815
3,432,001 169,226 974,140 4,575,367
35 1,504,512 1,182,264 2,686,811
22,997,257 1,673,738 2,156,404 26,827,399
1,172,312 [399,856] [769,325] 3,131
547,955 24,866 147,763 720,584
544,894 544,894
[982,077] [982,077]
[4,987] [319,167] [324,154]
[133,705] 56,263 817,499 740,057
[572,814] 626,023 646,095 699,304
599,498 226,167 [123,230] 702,435
2,689,181 2,689,181
[2,626,6811 [2,626,681]
62,500 62,500
661,998 226,167 [123,230] 764,935
157,889 582,523 740,412
661,998 384,056 459,293 1,505,347
40,461,724 1,256,909 10,810,326 52,528,959
[368,351] [1,210] [369,561]
40,093,373 1,255,699 10,810,326 52,159,398
3,663,545 3,663,545
[3,682,025] [3,682,025]
$ 40,736,891 $ 1,639,755 $ 11,269,619 $ 53,646,265
The notes to the financial statements are an integral part of this financial statement.
9
Statement 4
Statement 5
1 of 2
CITY OF SALINA, KANSAS
COMBINED STATEMENT OF CASH FLOWS-
ALL PROPRIETARY FUND TYPES, SIMILAR TRUST FUNDS AND
DISCRETELY PRESENTED COMPONENT UNITS
For the fiscal year ended December 31, 2002
Fiduciary
Proprietary Fund Types Fund Type
Non-
Internal expendable
Enterprise Service Trust
Cash flows from operating activities
Cash received from customers and users $ 18,037,493 $ 5,817,35~1 $ 7,788
Cash received from quasi-external transactions 41,394 189,472
Cash paid to employees for services [4,778,623] [591,583]
Cash paid to other suppliers of goods or services [6,916,799] [5,952,59-1] [35]
Cash paid for quasi-external transactions [761,351] [49,24j7]
Other operating receipts 163,637 3,681~
Net cash provided by [used in] operating activities 5,785,751 [582,9H?J 7,753
Cash flows from capital and related financing activities
Purchase and construction of fixed assets [3,895,329] [ 1 Û, ¿.~¡ '¡
Contributed capital 1,038,869 79Eì
Costs from issuance of debt [94,011]
Proceeds from grants
Proceeds from taxes
Proceeds from issuance of debt 3,887,353
Proceeds from financing lease
Principal payments - temporary notes [935,000]
Principal payments - loans [124,415]
Principal payments - general obligation bonds [947,608]
Principal payments - revenue bonds [4,882,400]
Principal payments - capital leases [33,354] [98, 7 4:~]
Interest paid [1,084,712] [4,984J
Net cash used in capital and related financing activities [7,070,607] [113,171]
Cash flows from investing activities
Interest received 397,449 85,81~~ 9,993
Cash flows from noncapital financing activities
Residual equity transfers in 3,663,545
Residual equity transfers out [3,682,025]
Operating grant receipts
Operating transfers in 2,564,181 125,000
Operating transfers out [2,626,681]
Net cash provided by [used in] noncapital financing activities [80,980] 125,00(~
Net increase [decrease] in cash and cash equivalents [968,387] [485,27~1] 17,746
Cash and cash equivalents, January 1 14,444,093 2,988, 18:~ 302,655
Cash and cash equivalents, December 31 $ 13,475,706 $ 2,502.91C~ $ 320,401
Total Component Total
Primary Unit Reporting
Government Salina Salina Entity
(Memoran- Housing Airport (Memoran-
dum Only) Authority Authority dum Only)
$ 23,862,634 $ 1,157,253 $ 1,503,652 $ 26,523,539
230,866 230,866
[5,370,206] [450,013] [5,820,219]
[12,869,425] [1,450,334] [748,272] [15,068,031]
[810,598] [810,598]
167,318 6,590 173,908
5,210,589 [286,491] 305,367 5,229,465
[3,905,566] [40,278] [2,195,324] [6,141,168]
1,039,665 1,039,665
[94,011] [26,119] [120,130]
144,005 144,005
817,499 817,499
3,887,353 3,200,235 7,087,588
189,446 189,446
[935,000] [935,000]
[124,415] [694,761] [819,176]
[947,608] [947,608]
[4,882,400] [4,882,400]
[132,097] [132,097]
[1,089,699] [262,795] [1,352,494]
[7,183,778] [40,278] 1,172,186 [6,051,870]
493,255 10,583 30,921 534,759
3,663,545 3,663,545
[3,682,025] [3,682,025]
253,096 253,096
2,689,181 2,689,181
[2,626,681] [2,626,681]
44,020 253,096 297,116
[1,435,914] [63,090] 1,508,474 9,470
17,734,931 550,068 1,962,628 20,247,627
$ 16,299,017 $ 486,978 $ 3,471,102 $ 20,257,097
The notes to the financial statements are an integral part of this financial statement.
10
Statement 5
1 of 2
Statement 5
2 of2
CITY OF SALINA, KANSAS
COMBINED STATEMENT OF CASH FLOWS-
ALL PROPRIETARY FUND TYPES, SIMILAR TRUST FUNDS AND
DISCRETELY PRESENTED COMPONENT UNITS
For the fiscal year ended December 31, 2002
Cash and investments
Restricted cash and investments
Total cash and cash equivalents
Reconciliation of operating [loss] income to net cash
provided by [used in] operating activities
Operating income [loss]
Adjustments to reconcile operating income [loss] to net cash
provided by [used in] operating activities
Depreciation expense
Basis of assets sold
[Increase] decrease in accounts receivable
[Increase] decrease in inventory and prepaid supplies
[Increase] decrease in due from other governments
Increase [decrease] in accounts payable
Increase [decrease] in retainage payable
Increase [decrease] in accrued compensated absences
Increase [decrease] in deposits payable
Increase [decrease] in claims payable
Increase [decrease] in due to other governments
Increase [decrease] in deferred income
Increase [decrease] in accrued landfill closure and
postclosure care costs
Net cash provided by [used in] operating activities
Fiduciary
Proprietary Fund Types Fund Type
Non-
Internal expendable
Enterprise Service Trust
$ 12,376,482 $ 2,502,910 $ 320,401
1,099,224
$ 13,475,706 $ 2,502,91(~ $ 320,401
$ 1,986,517 $
$
[821,9513]
7,753
3,346,147 85,854
91,249
15,058 [22,19~7]
148,786 32,45-1
40,403
55,870 [5,77ß]
4,754
148,71~1
96,967
$ 5,785,751 $
$
[582,91 !~
7,753
Total Component Total
Primary Unit Reporting
Government Salina Salina Entity
(Memoran- Housing Airport (Memoran-
dum Only) Authority Authority dum Only)
$ 15,199,793 $ 445,503 $ 3,386,102 $ 19,031,398
1,099,224 41,475 85,000 1,225,699
$ 16,299,017 $ 486,978 $ 3,471,102 $ 20,257,097
$ 1,172,312 $
[399,856] $
3,131
[769,325] $
3,432,001 169,226 974,140 4,575,367
83,048 83,048
91,249 [3,251] 17,358 105,356
[7,139] 1,348 489 [5,302]
[3,962] [3,962]
181,237 53,394 [16,510] 218,121
40,403 40,403
50,094 [26,403] 23,691
4,754 6,590 11,344
148,711 148,711
[6,963] [6,963]
[76,614] 16,167 [60,447]
96,967 96,967
$ 5,210,589 $ [286,491] $ 305,367 $ 5,229,465
The notes to the financial statements are an integral part of this financial statement.
11
Statement 5
2 of2
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A Reporting Entity
The City of Salina, Kansas (the City) is a municipal corporation govemed by a mayor and a five member
commission. These financial statements present the City and its component units, entities for which the
government is considered to be financially accountable. Each discretely presented component unit is
reported in a separate column in the combined financial statement to emphasize that it is legally separated
from the government.
Discretely Presented Component Units
City of Salina Airport Authority - The Salina Airport Authority was created for the purpose of accepting as
surplus property portions of the former Schilling AF.B that was closed by the United States Department of
Defense in June, 1965. One of the primary functions of the Airport Authority is to facilitate the continued
growth of jobs and payroll at the Airport Industrial Center. The Airport Authority is managed and controlled by
a five-member Board of Directors appointed by the Salina City Commission. Any director may be removed
by a majority vote of the Salina City Commission. The Airport Authority's basic mill levy (up to 3 mills)
requires the approval of the City Commission. The Commission must also approve the issuance of qeneral
obligation debt by the Airport Authority. The Airport Authority is reported as an enterprise j l
Authority has a December 31 fiscal year end.
Housing Authority of the City of Salina - The purpose of the Housing Authority of the City of 8,):: ,:'\ .
Authority) is to administer Public Housing Programs authorized by the United States Housing Act of 193'7.
The Mayor of the City of Salina appoints the governing board. The City Commission may remove
commissioners of the Housing Authority. The City must issue revenue bonds for the Housing Authority. The
financial liability of the Housing Authority is essentially supported by the operating and debt servk('"OlIbc;;rlie~
received under contract from the Federal government. The Housing Authority is reported as a pr;:.:¡:,¡ ¡Hf3iY
fund type. The Housing Authority has a June 30 fiscal year end. Information in the accompanying financial
statements covers the fiscal year ended June 30, 2002.
Complete financial statements for each of the individual component units may be obtained at the entity's
administrative offices.
Salina Airport Authority
3237 Arnold Ave.
Salina, KS
Housing Authority of
the City of Salina
469 S. 5th
Salina, KS
Joint Ventures
The City of Salina also participates with Saline County in two joint ventures. The Salina-Saline County Board
of Health was organized by the City and County to promote public health. The City and County organized
the Salina County-City Building Authority to acquire, operate and maintain facilities for the administrative
offices of both governments. The primary governments each have an ongoing financial responsibility for the
joint ventures. Separate financial statements are available from the governing boards of each joint venture.
Total fund balance, December 31, 2002
Total revenues, year ended December 31, 2002
Total revenues from City of Salina
Board of
Health
(Unaudited)
$ 297,343
2,983,958
626,758
Building
Authority
(Audit~
$ 2,487,738
812,779
750,636
12
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
B. Measurement Focus, Basis of Accounting and Basis of Presentation
The accounts of the City are organized and operated on the basis of funds and account groups. A fund is an
independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates
funds according to their intended purpose and is used to aid management in demonstrating compliance with
finance-related legal and contractual provisions. The minimum number of funds are maintained consistent
with legal and managerial requirements. Account groups are a reporting device to account for certain assets
and liabilities of the governmental funds not recorded directly in those funds.
The City has the following fund types and account groups:
Governmental Funds are used to account for the City's general government activities. Governmental fund
types use the flow of current financial resources measurement focus and the modified accrual basis of
accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to
accrual (i.e., when they are "measurable and available"). "Measurable" means the amount of the transaction
can be determined and "available" means collectible within the current period. The City considers all
revenues available if they can be collected soon enough after year end to pay current year expenditures.
Expenditures are recorded when the related fund liability is incurred, except for unmatured principal and
interest on general long-term debt which is recognized when due, and certain compensated absences and
claims and judgments which are recognized when the obligations are expected to be liquidated with
expendable available financial resources.
Property taxes, interest and special assessments are susceptible to accrual. Other receipts and taxes
become measurable and available when cash is received by the government and are recognized as revenue
at that time.
Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual
criteria are met. Expenditure-driven grants are recognized as revenue when the qualifying expenditures have
been incurred and all other grant requirements have been met.
The City reports deferred revenue on its combined balance sheet. Deferred revenues arise when a potential
revenue does not meet both the "measurable" and "available" criteria for recognition in the current period.
Deferred revenues also arise when the City receives resources before it has a legal claim to them, as when
grant monies are received prior to incurring qualifying expenditures. In subsequent periods, when both
revenue recognition criteria are met, or when the City has a legal claim to the resources, the liability for
deferred revenue is removed from the combined balance sheet and revenue is recognized.
Governmental funds include the following fund types:
The general fund is the City's primary operating fund. It accounts for all financial resources of the
general govemment, except those required to be accounted for in another fund.
The special revenue funds account for revenue sources that are legally restricted to expenditure for
specific purposes (not including expendable trusts or major capital projects).
The debt seNice fund accounts for the servicing of general long-term debt not being financed by
proprietary or nonexpendable trust funds.
The capital projects funds account for the acquisition of fixed assets or the construction of major
capital projects not being financed by the proprietary or nonexpendable trust funds.
13
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
B. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
Proprietary Funds are accounted for on the flow of economic resources measurement focus and use the
accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are
recorded at the time liabilities are incurred. The City applies all applicable Governmental Accounting
Standards Board (GAS B) pronouncements as well as the following pronouncements issued on or before
November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements: FASB
Statements and Interpretations, APB Opinions and ARBs. Proprietary funds include the following fund type:
Enterprise funds are used to account for those operations that are financed and operated in a
manner similar to private business or where the City has decided that the determination of revenues
earned, costs incurred and/or net income is necessary for management accountability.
Internal service funds account for operations that provide services to other departments or agencies
of the government, or to other governments, on a cost-reimbursement basis.
Fiduciary Funds account for assets held by the City in a trustee capacity or as an agent on bel" ,
Trust funds account for assets held by the City under the terms of a formal trust agreement. Fiduciary funds
include the following fund types:
The expendable trust fund is accounted for in essentially the same manner as the governmental
fund types, using the same measurement focus and basis of accounting. Expendable trust funds
account for assets where both the principal and interest may be spent.
The nonexpendable trust funds are accounted for in essentially the same manner as the proprietary
funds, using the same measurement focus and basis of accounting. Nonexpendable trust funds
account for assets of which the principle may not be spent.
The agency funds are custodial in nature and do not present results of operations or have a
measurement focus. Agency funds are accounted for using the modified accrual basis of
accounting. These funds are used to account for assets that the City holds for others in an agency
capacity.
Account Groups. The general fixed assets account group is used to account for fixed assets not accounted
for in proprietary or trust funds. The general long-term debt account group is used to account for general
long-term debt and certain other liabilities that are not specific liabilities of proprietary or trust funds.
C. Assets, Liabilities and Equity
1. Pooled cash and investments
The City maintains a cash and investment pool that is available for use by all funds managed by the city.
Each fund type's portion of this pool is displayed on the combined balance sheet as "Cash and Investments."
The city's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term
investments with original maturities of three months or less from the date of acquisition. Investments in the
Kansas Municipal Pool are carried at fair value.
14
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Assets, Liabilities, and Equity (Continued)
1. Pooled Cash and Investments (Continued)
Cash balances from all funds are invested to the extent available in certificates of deposit and other
authorized investments. Investments with maturity dates greater than three months are stated separately.
Earnings from these investments, unless specifically designated, are allocated monthly to the investing fund
based on the percentage of funds invested to total investments. All investments are carried at fair value.
2. Receivables and Payables
Transactions between funds that are representative of lending/borrowing arrangements outstanding at the
end of the year are referred to as either "interfund receivables/payables" (i.e., the current portion of interfund
loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other
outstanding balances between funds are reported as "due to/from other funds."
Accounts Receivable. The City records revenues when services are provided. All receivables are shown net
of an allowance for doubtful accounts.
Property taxes receivable. Collection of current year property tax by the County Treasurer is not completed,
apportioned or distributed to the various subdivisions until the succeeding year, such procedure being in
conformity with governing state statutes. Consequently, current year property taxes receivable are not
available as a resource that can be used to finance the current year operations of the City and, therefore, are
not susceptible to accrual. Accruals of uncollected current year property taxes are offset by deferred revenue
and are identical to the adopted budget for 2003. It is not practicable to apportion delinquent taxes held by
the County Treasurer at the end of the accounting period, and further, the amounts thereof are not material in
relationship to the financial statements taken as a whole.
The determination of assessed valuations and the collection of property taxes for all political subdivisions in
the State of Kansas are the responsibility of the various counties. The County Appraiser annually determines
assessed valuations on January 1 and the County Clerk spreads the annual assessment on the tax rolls. The
County Treasurer is the tax collection agent for all taxing entities within the County. In accordance with state
statutes, property taxes levied during the current year are a revenue source to be used to finance the budget
of the ensuing year. Property taxes are levied and liens against property are placed on November 1 of the
year prior to the fiscal year for which they are budgeted. Payments are due November 1, becoming
delinquent, with penalty, December 21. Payments of 50% are accepted through December 20, with the
second 50% then being due on or before June 20 of the following year. This procedure eliminates the need
to issue tax anticipation notes since funds will be on hand prior to the beginning of each fiscal year. The City
Treasurer draws down all available funds from the County Treasurer's office in two-month intervals. Taxes
remaining due and unpaid at February 15 and July 1 are subject to collection procedures prescribed in state
statutes.
3. Inventories and Prepaid Items
Inventories are valued at cost using the first-inlfirst-out (FIFO) method. The costs of governmental fund-type
inventories are recorded as expenditures when consumed.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items.
15
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Assets, Liabilities, and Equity (Continued)
4. Restricted Assets
Certain proceeds of the City's enterprise fund revenue bonds, as well as certain resources set aside for their
repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable
bond covenants. The "Water and Sewer Principal and Interesf account is used to segregate resources
accumulated for debt service payments over the next twelve months. The "Debt Service Reserve" account is
used to report resources set aside to make up potential future deficiencies in the "Water and Sewer Principal
and Interest Accounf.
5. Fixed Assets
Fixed assets used in governmental fund types of the City are recorded in the general fixed assets account
group at cost or estimated historical cost if purchased or constructed. Donated fixed assets are recorded at
their estimated fair value at the date of donation. Assets in the general fixed assets account groun ,.,r~ ,-,t
depreciated. Interest incurred during construction is not capitalized on general fixed assets.
Public domain (infrastructure) general fixed assets (e.g., roads, bridges, sidewalks and other assets that are
immovable and of value only to the City) are not capitalized.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend
assets' lives are not included in the general fixed assets account group or capitalized in the proprietary funds.
Property, plant and equipment in the proprietary funds of the City are recorded at cost. Property, plant and
equipment donated to these proprietary fund type operations are recorded at their estimated fair value at the
date of donation.
Major outlays for capital assets and improvements are capitalized in proprietary funds as projects are
constructed. Interest incurred during the construction phase of proprietary fund fixed assets is reflected in the
capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same
period.
Property, plant and equipment are depreciated in the proprietary funds of the City using the straight line
method over the following estimated useful lives:
Assets
Years
Buildings
Other equipment
Vehicles
Utility plant & equipment
20 - 50
5 -10
7 -10
10 - 70
16
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31,2002
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Assets, Liabilities, and Equity (Continued)
6. Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits.
All employees of the City, except temporary and part time employees, may accumulate sick leave at a rate of
8 or 11 hours per month depending on their work duty schedule. There is no limit on the amount of sick
leave that can be accumulated. Employees with more than five years of service with the City are paid for
one-third of their accumulated sick leave at their current wage scale upon termination of employment in good
standing. In 2001, a limited buy back policy was instituted.
All regular employees are entitled to paid vacation time. Such leave is granted each year of employment and
unused leave may accumulate without limit. Employees are paid for all accumulated vacation leave at their
current wage scale upon termination of employment.
Vested or accumulated vacation leave that is expected to be liquidated with expendable available financial
resources is reported as an expenditure and a fund liability of the government fund that will pay it. Amounts
of vested or accumulated vacation pay that are not expected to be liquidated with expendable available
financial resources are reported in the general long-term debt account group. No expenditure is reported for
these amounts. Vested or accumulated vacation leave of proprietary funds is recorded as an expense and
liability of those funds as the benefits accrue to employees. A liability is recorded for accumulated rights to
receive sick pay benefits that are payable upon termination of employment.
7.
Temporary Notes
Upon authorization for the issuance of general obligation bonds for certain improvements, Kansas law
permits the temporary financing of such improvements by the issuance of temporary notes. Temporary
notes issued may not exceed the aggregate amount of bonds authorized, are interest bearing and have a
maturity date not later than four years from the date of issuance of such temporary notes. Temporary notes
outstanding are retired from the proceeds of the sale of general obligation bonds.
8. LonQ-term ObliQations
The City reports long-term debt of governmental funds at face value in the general long-term debt account
group. Certain other governmental fund obligations not expected to be financed with current available
financial resources are also reported in the general long-term debt account group. Long-term debt and other
obligations financed by proprietary funds are reported as liabilities in the appropriate funds.
For governmental fund types, bond premiums and discounts, as well as issuance costs, are recognized
during the current period. Bond proceeds are reported as an other financing source net of the applicable
premium or discount. Issuance costs, even if withheld from the actual net proceeds received, are reported as
debt service expenditures. For proprietary fund types, bond premiums and discounts, as well as issuance
costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds
payable are reported net of the applicable bond premium or discount. Issuance costs are reported as
deferred charges.
17
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Assets, Liabilities and Equity (Continued)
9. Fund Equity
Reservations of fund balance represent amounts that are not appropriable or are legally segregated for a
specific purpose. Reservations of retained eamings are limited to outside third-party restrictions.
Designations of fund balance represent tentative management plans that are subject to change. The
proprietary fund's contributed capital represents equity acquired through capital ~ rants and capital
contributions from other governments or other funds.
10. Interfund Transactions
Quasi-external transactions (i.e., transactions that would be treated as revenues or expenses if they involved
organizations external to the governmental unit, such as internal service fund billings to departments) are
accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a
fund are expenditures/expenses in the reimbursing fund and reductions of expenditures/expE'!1<:M ;,- lh' ",
that is reimbursed.
All other interfund transactions, except quasi-external transactions and reimbursements, arCF
transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfer::',
All other interfund transfers are reported as operating transfers.
11. Memorandum Only - Total Columns
Total columns on the general purpose financial statements are captioned as "memorandum only" because
they do not represent consolidated financial information and are presented only to facilitate financial analysis.
The columns do not present information that reflects financial position, results of operations or cash flows in
accordance with accounting principles generally accepted in the United States of America. Interfund
eliminations have not been made in the aggregation of this data.
12. Comparative Data/Reclassifications
Comparative total data for the prior year have been presented in selected sections of the accompanying
financial statements in order to provide an understanding of the changes in the City's financial position and
operations. Also, certain amounts presented in the prior year data have been reclassified in order to be
consistent with the current year's presentation.
Note 2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Budgetary Information
Kansas statutes require that an annual operating budget be legally adopted for the general fund, special
revenue funds (unless specifically exempted by statute), debt service fund, and enterprise funds. The
statutes provide for the following sequence and timetable in the adoption of the legal annual operating
budget:
1. Preparation of the budget for the succeeding year on or before August 1 st.
2. Publication in local newspaper of the proposed budget and notice of public hearing on the budget on or
before August 5th.
18
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31,2002
Note 2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued)
A. Budgetary Information (Continued)
3. Public hearing on or before August 15th, but at least ten days after publication of notice of hearing.
4. Adoption of the final budget on or before August 25th.
The statutes allow for the governing body to increase the originally adopted budget for previously
unbudgeted increases in revenue other than ad valorem property taxes. To do this, a notice of public hearing
to amend the budget must be published in the local newspaper. At least ten days after publication the
hearing may be held and the governing body may amend the budget at that time. There were no budget
amendments for the current year.
The statutes permit management to transfer budgeted amounts between line items within an individual fund.
However, such statutes prohibit expenditures in excess of the total amount of the adopted budget of
expenditures of individual funds. Budget comparison statements are presented for each fund showing actual
receipts and expenditures compared to legally budgeted receipts and expenditures.
All legal annual operating budgets are prepared using the modified accrual basis of ;accounting, modified
further by the encumbrance method of accounting. Revenues are recognized when cash is received.
Expenditures include disbursements, accounts payable, and encumbrances. Encumbrances are
commitments by the municipality for future payments and are supported by a document evidencing the
commitment, such as a purchase order or contract. All unencumbered appropriations (legal budget
expenditure authority) lapse at year end.
A legal operating budget is not required for capital projects funds, trust funds, and the following special
revenue funds: Bicentennial Center Event, HUD Community Development, Community Development
Revolving, Heritage Commission, CDBG-ED, HOME IV, Special Law Enforcement, Fair Housing
Partnership, Police Grants, Dare Donations, and Large System Interface. A legal operating budget is not
required for the following Enterprise funds: Solid Waste Construction, Water and Sewer Principal and
Interest, Water and Sewer Bond Reserve, Water and Sewer Construction and Reserve funds. Actual to
budget comparisons for these funds that present budgets to the Commissioners are shown strictly for
informational purposes.
Spending in funds which are not subject to the legal annual operating budget requirements are controlled by
federal regulations, other statutes, or by the use of internal spending limits established by the governing
body.
Compliance with Kansas Statutes. References made herein to the statutes are not intended as interpretation
of law, but are offered for consideration by the Director of Accounts and Reports and interpretation by the
County Attorney and legal representatives of the City. Management is not aware of any material violations of
Kansas statutes in the current year.
19
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued)
B. Deficit Fund Equity
The following fund had a deficit fund equity at December 31, 2002: CDBG Ed $[2,547] and Fair Housing
Partnership $[1,971], These deficits will be recovered from reimbursements from grantor agencies, or in the
event certain costs are disallowed, from general funds. The Health Insurance fund had deficit fund equity of
$[44,090]. This deficit will be recovered with increased employee health insurance premiums.
C. Compliance With Bond Reserve Requirements
Water & Sewer Bond Reserve Requirements
The bond reserve contains a "net revenue" requirement of 125% of next year principal and interest
payments. The Water & Sewer fund met this requirement for 2002.
Reserve requirement
$ 1,011,273
$ 1,099,244
15.713
$ 1,114,957
Actual reserves
Principal and interest account
Bond reserve account
Total actual reserves
The City was in compliance with the reserve account balance requirements at December ~11, 2002.
D. Legal Debt Margin
The City is subject to the municipal finance law of the state of Kansas which limits the bonded debt
(exclusive of revenue bonds and special assessment bonds) the city may have outstanding to 30 percent of
the assessed value of all tangible taxable property within the city, as certified to the county clerk on the
proceeding August 25. At December 31, 2002, the statutory limit for the City was $108,930,133, providing a
debt margin of $80,149,221.
Note 3. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
A Deposits and Investments
Deposits - At year end, the City's carrying amount of the deposits and cash on hand was $17,385,959 and
$14,363 respectively. The bank balance was $17,472,481. The difference between the carrying amount and
the bank balance is outstanding checks, deposits in transit and cash on hand. Of the bank balance $300,000
was covered by FDIC insurance and the remaining $17,172,481 was collateralized by pledged securities
held under joint custody receipts issued by a third-party bank in the City's name and by Bank Depository
Guranty Bonds issued by Kansas Bankers Surety Company. The third-party bank holding the pledged
securities is independent of the pledging bank. The pledged securities are held under a tri-party custodial
agreement signed by all three parties; the City, the pledging bank, and the independent third-party bank
holding the pledged securities. The Kansas State Treasurer's Fiscal Agency Department held an unsecured
and uncollateralized deposit of $85,269.
20
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 3. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
A. Deposits and Investments (Continued)
The carrying amount of deposits for the Housing Authority of the City of Salina, a discretely presented
component unit, was $752,602 and the bank balance was $844,939. Of the bank balance, $844,939 was
covered by federal depository insurance or by collateral held by the entity's agency in the Housing Authority's
name.
The carrying amount of deposits and cash on hand, respectively for the Salina Airport Authority, a discretely
presented component unit, was $3,470,437 and $665 and the bank balance was $3,639,134. Of the bank
balance, $3,639,134 was covered by federal depository insurance or by collateral held by the entity's agency
in the Authority's name.
Investments - Kansas statutes authorize the City to invest in U.S. Treasury bills and notes, repurchase
agreements, the Kansas Municipal Investment Pool (KMIP), and certain other types of federal and Kansas
municipal obligations. All investments must be insured, registered, or held by the City or its agent in the
City's name. The City's investments are categorized to give an indication of the level of risk assumed by the
City at year-end. Category 1 includes investments that are insured or registered, or for which the securities
are held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered
investments for which the securities are held by the pledging bank's trust department or agent in the City's
name. Category 3 includes uninsured and unregistered investments for which the securities are held by the
pledging bank but not in the City's name. The carrying amount of investments approximates fair value.
At December 31, 2002, the City had invested $4,887,855 in the State's municipal investment pool. The
municipal investment pool is under the oversight of the Pooled Money Investment Board. The board is
comprised of the State Treasurer and four additional members appointed by the State Governor. The board
reports annually to the Kansas legislature. State pooled monies may be invested in direct obligations of, or
obligations that are insured as to principal and interest by the US government or any agency thereof, with
maturities up to four years. No more than 10 percent of those funds may be invested in mortgage-backed
securities. In addition, the State pool may invest in repurchase agreements with Kansas banks or with
primary govemment securities dealers. The City's investment in the State Treasurer's municipal investment
pool is not subject to categorization as to risk. The fair value of the City's position in the municipal investment
pool is substantially the same as the value of the pool shares. The categories of the City's investments are
as follows:
Category
1
2
3
Carrying
Amount
U.S. Treasury Bills
$ 6,012,553 $
- $
- $
6,012,553
Pooled investment -
State of Kansas
4,887,855
$ 10,900,408
Separate statutes regulate investment proceeds for most bond issues. Local units may invest bond
proceeds in direct obligations of the United States Government and its agencies or make investments as
authorized for other idle funds. Under existing Attorney General opinions maturity and interest rates are
negotiable on such bonds.
21
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 3. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
A. Deposits and Investments (Continued)
The cash and investments by fund type at December 31, 2002 are as follows:
Subtotal primary govemment
Cash and Separate
Investments Deposits Total Restricted Unrestricted
$ 6,341 ,230 $ - $ 6,341,230 $ - $ 6,341 ,230
2,925,721 2,925,721 2,925,721
983,414 85,269 1,068,683 1 ,068,683
628,791 628,791 628,791
13,475,706 13,475,706 1,099,224 12,376,482
2,502,910 2,502,910 2,502,910
1,409,634 33,324 1,442,958 1,442,958
28,267,406 118,593 28,385,999 1,099,224 :u
-------,
Primary Government
General
Special Revenue
Debt Service
Capital Projects
Enterprise
Intemal Service
Trust & Agency
Component Units
Salina Airport Authority
Salina Housing Authority
Subtotalcomponentunns
3,471,102 3,471,102 85,000 3,386,102
834,814 834,814 41,475 793,339
4,305,916 4,305,916 126,475 4, 1XP-"~1:tl
$ 32,573,322 $ 118,593 $ 32,691,915 $ 1,225,699 $ 31,466,216
Total reporting entity
B. Receivables
Receivables as of year end, including the applicable allowances for doubtful accounts, are as follows:
General
Special
Revenue
Debt
Service
Enterprise
Internal
Service
Capital
Projects
Trust &
J~
Total
Primary Government
Receivables:
Accounts
Taxes
Interest
Grants
Notes
Gross receivables
Less: allowance for
uncoIlectibles
Total
$ 1,033,468 $ 237,786 $ - $ 985,458 $ - $ - $; - $ 2,256,712
2,352,889 3,874,821 1,747,696 7,975,406
106,991 33,674 16,616 227,563 42,289 15,729 7,922 450,784
17,995 17,995
28,016 28,016
3,511,343 4,174,297 1,764,312 1,213,021 42,289 15,729 7,922 10,728,913
[81,063] [2,540] [117,681] [201,284]
$ 3,430,280 $ 4,171,757 $ 1,764,312 $ 1,095,340 $ 42,289 $ 15,729 ~i 7,922 $ 10,527,629
Component Units
Salina Airport Authority
Salina Housing Authority
Total
$ 1,058,581
3,851
$ 1,062,432
22
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31,2002
Note 3. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
C. Fixed Assets
The following is a summary of the changes in the general fixed assets account group during the current year.
Total reporting entity
Balance
January 1,
2002 .Additions
$ 2,589,193 $ - $
6,443,810 41,032
529,331
12,453,379
11 ,412,456 993,655
$ 32,898,838 $ 1,564,018 $
Deletions
Balance
December 31,
2002
Primary Govemment
Land
Land improvements
Construction in progress
Buildings
Machinery and equipment
41,032
- $ 2,589,193
6,484,842
488,299
12,453,379
12,110,855
295,256
336,28~ $ 34,126,568
The following is a summary of proprietary fund-type fixed assets at December 31, 2002:
Less accumulated depreciation
Component
Primarv Govemment Unit
Internal Salina Salina
Enterprise Service Housing Airport
Funds Funds Authority Authority
$ 514,050 $ - $ 1,456,890 $ 9,035,150
7,308,475
42,090,806
40,671,942
17,118,787
2,300,038 1,515,655 190,036 1,608,412
1,635,022 13,911
579,812 22,072 5,413,671 7,814,291
5,255,187 331,099 392,816
100,355,332 1,551,638 7,391,696 35,969,456
[42,801,272] [1,286,744] [1,279,524] [12,268,893]
Land
Land improvements
Water plant and equipment
Sev.er plant and equipment
Airfield and infrastructure
Equipment
Vehicles
Buildings
Construction in progress
Nét fixed assets
$ 57,554,060 $ 264,894 $ 6,112,172 $ 23,700,563
Interest costs are capitalized when incurred by proprietary funds and similar component units on debt where
proceeds were used to finance the construction of assets. Interest earned on proceeds of tax-exempt
borrowing arrangements restricted to the acquisition of qualifying assets is offset against interest costs in
determining the amount to be capitalized.
23
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 3. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
D. Restatement
Following the close of the previous fiscal year, it was discovered various items previously expensed in the
internal service funds should have been capitalized as construction in progress. In addition to this change,
items capitalized as construction in progress should have been expensed in the enterprise funds.
Accordingly, the beginning retained earnings balance for the enterprise and internal service funds were
restated, the effects of which are as follows:
Enterprise
Funds
Internal
Service
Funds
Component Unit
Salina
Housing
t\uthoritv
Beginning Retained
Earnings, as previously stated
Prior period adjustment
Beginning Retained
Earnings, as restated
E. Long-Term Debt
$ 38,077,726 $
[396,211]
2,077,681 $
27,860
1,256,909
[1,210]
$ 37,681,515 $
2,105,541 $ 1,2~~§9()
Following is a summary of changes in long-term debt for fiscal year 2002:
General Long-Term Debt
General obligation bonds
Accrued compensation
Temporary notes
Total General Long-Term Debt
Balance Balance
January 1, December 31,
2002 Additions Deletions ;~OO2
---,---,
$ 19,095,543 $ 1,000,000 $ 2,367,354 $ 17,728,189
1,987,586 194,135 2,181,721
4,865,000 4,865,000
21,083,129 6,059,135 2,367,354 24,774,910
5,058,589 3,025,000 895,836 7,187,753
12,985,000 6,790,000 12,985,000 6,790,000
5,518,929 2,179,741 124,414 7,574,256
935,000 935,000
132,097 132,097
568,563 50,094 618,657
25,198,178 12,044,835 15,072,347 22,170,666
Proprietary Funds
General obligation bonds
Revenue bonds
Loans payable
Temporary notes
Capital financing leases
Accrued compensation
Total proprietary funds
Total primary government
Component Units
General obligation bonds
Revenue bonds
Loans payable
S~alassessmentdebt
$ 46,281,307 $ 18,103,970 $ 17.439,721 $ 46,945,576
$ 5,090,000 $ 2,635,000 $ 565,000 $ 7,160,000
380,000 65,000 315,000
321,588 50,968 270,620
565,235 28,672 536,563
$ 5,791,588 $ 3,200,235 $ 709,640 $ 8,282,183
24
Total component units
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 3. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
E. Long-Term Debt (Continued)
The following is a detailed listing of the city's long-term debt including general obligation bonds, revenue
bonds, temporary notes and loans payable:
Primary Government
General Obligation
Internal Improvements 1993, due 10/1/2003
Internal Improvements 1993, due 10/1/2003
Internal Improvements 1994, due 10/1/2004
Internal Improvements 1995, due 10/1/2005
Intemallmprovements 1996, due 8/1/2006
Internal Improvements 1997, due 2/1/2012
Internal Improvements 1998, due 8/1/2003
Water/sewer refunding 1998, due 10/1/2008
Internal Improvements 1999, due 10/1/2014
Internal Improvements 2000, due 10/1/2015
Internal Improvements 2001, due 10/1/2016
Water/sewer refunding 2002A, due 10/3/2013
Intemallmprovements 20028, due 10/1/2017
Total general obligation bonds
Revenue Bonds
Revenue Refunding 2oo2A, due 9/1/2012
Total revenue bonds
Loans Payable
Kansas Public Water Supply, due 2/1/2020
Kansas Public Water Supply, due 2/1/2023
T otalloans payable
Temporary Notes
Series 2001-2
Original Interest Bonds
Issue Rates Outstandinq
$ 685,000 3.50% to 5.50% $ 70,000
1,800,000 3.40% to 5.00% 185,000
1,175,000 4.70%to6.50% 230,000
2,434,000 4.75% to 6.50% 720,000
1,847,000 4.65% to 5.00% 740,000
1,650,000 4.50% to 5.25% 825,000
3,900,000 4.10%to5.00% 2,660,000
6,010,000 3.80% to 4.40% 3,530,942
5,465,000 4.30% to 5.50% 3,815,000
3,885,000 4.625% to 6.50% 3,215,000
5,350,000 4.00% to 4.90% 4,990,000
2,045,000 3.00% to 4.50% 1,955,000
1,980,000 2.70%to4.50% 1,980,000
$ 24,915,942
6,790,000
2.20% to 4.25%
$
$
6,790,000
6,790,000
3,600,000
5,000,000
4.29%
4.13%
$
3,298,593
4,275,663
7,574,256
$
4,865,000
2.25%
$
4,865,000
25
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31,2002
Note 3. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
E. Long-Term Debt (Continued)
Component Unit
Salina Airport Authority
General Obligation Bonds
General Obligation 1993-A due 2003
General Obligation 1993-8, due 2003
General Obligation 1998, due 2008
General Obligation 19998, due 2010
General Obligation 2001A due 2012
General Obligation 2002A, due 2013
Total general obligation bonds
Revenue Bonds
Leasehold revenue 1991, due 2006
Loans Payable
Kansas Dept of Commerce & Housing, due 2007
Special assessment debt
Total
Interest paid in 2002 is as follows:
Primary government
General obligation bonds
Revenue bonds
Loans payable
Temporary notes
Capital leases
Total primary government
Component Unit
Salina Airport Authority
26
Original
Issue
Interest
Rates
Bonds
!)utstanding
$ 375,000 3.40% to 5.00% $ 45,000
275,000 3.85% to 4.75% 35,000
4,440,000 4.10%to4.35% 2,660,000
555,000 3.90% to 5.10% 400,000
1,385,000 4.45% to 5.60% 1,385,000
2,635,000 2.45% to 3.70% 2,635,000
7,160,000
850,000 5.00% to 7.25% 315,000
468,543 2.00% 270,620
565,235 3.19% 536,563
$ 8,282,183
---~~~
--,~----
$
1,234,908
620,558
133,654
29,297
6,788
2,025,205
$
$
319,167
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31,2002
Note 3. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
E. Long-Term Debt (Continued)
Annual debt service requirements to maturity for general obligation bonds to be paid with tax levies:
Year
2003
2004
2005
2006
2007
2008-2012
2013-2017
Total
Year
2003
2004
2005
2006
2007
Thereafter
Total
General Obligation - Primary Government
Bonds Interest
Outstandinq Due Totaj
$ 3,345,000 $ 1,136,636 $ 4,481,636
3,105,000 968,863 4,Œ73,863
3,025,000 834,452 3,859,452
2,820,000 702,379 3,522,379
2,670,000 580,764 3,250,764
7,500,000 1,527,501 9,027,501
2,450,944 285,504 2,736,448
$ 24,915,944 $ 6,036,099 $ 30,952,043
General Obligation - Component Units
Bonds Interest
OutstandinQ Due TotC!!
$ 895,000 $ 290,690 $ 1,185,690
830,000 253,762 1,083,762
850,000 220,434 1 ,0~70,434
850,000 186,866 1,0:36,866
885,000 154,858 1,0:39,858
2,850,000 327,883 3,1"77,883
$ 7,160,000 $ 1,434,493 $ 8,594,493
27
CITY OF SALINA. KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31,2002
Note 3. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
E. Long-Term Debt (Continued)
Annual debt service requirements to maturity for revenue bonds to be paid with utility revenues:
Revenue Bonds - Primary Government
Bonds Interest
Year Outstandinq Due Tota!
2003 $ 575,000 $ 234,018 $ 809,018
2004 600,000 206,810 806,810
2005 625,000 191,810 816,810
2006 640,000 178,060 818,060
2007 640,000 162,060 802,060
2008-2012 3,710,000 449,745 4,1S9,745
Total $ 6,790,000 $ 1,422,503 $ 8,212,503
Annual debt service requirements to maturity for revenue bonds to be paid with service revenues:
Revenue Bonds - Component Units
Bonds Interest
Year Outstandinq Due T ota!
2003 $ 70,000 $ 22,510 $ H2,510
2004 75,000 17,610 H2,610
2005 80,000 12,285 92,285
2006 90,000 6,525 96,525
Total $ 315,000 $ 58,930 $ 3j73,930
Annual debt service requirements to maturity for temporary notes - to be paid through the issuance of general
obligation bonds:
Year
2003
Temporary Notes - Primary Government
Notes Interest
Outstandinq Due T ota!
$ 4,865,000 $ 151,148 $ 5,016,148
28
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 3. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
E. Long-Term Debt (Continued)
The City has engaged in loans in which they have yet to receive all of the proceeds. The following displays
annual debt service requirements to maturity for loans payable to be paid from service ¡revenues, for the full
proceeds amount:
Loans - Primary Govemment
Loans Interest
Year Outstanding Due TotgJ
2003 $ 211,427 $ 223,200 $ 434,627
2004 303,766 307,870 Eì11 ,636
2005 316,661 296,049 612,710
2006 330,105 283,725 613,830
2007 344,120 270,878 614,998
2008-2012 1,952,571 1,141,742 3,094,313
2013-2017 2,403,825 728,071 3,131,896
2018-2022 2,254,991 245,920 2,500,911
2023-2027 181,127 3,424 184,551
Total $ 8,298,593 $ 3,500,879 $ 11,614,921
Loans - Component Unit
Loans Interest
Year Outstanding Due TotgJ
2003 $ 51,990 $ 5,154 $ 57,144
2004 53,036 4,109 57,145
2005 54,109 3,043 57,152
2006 55,185 1,955 57,140
2007 56,300 846 57,146
Total $ 270,620 $ 15,107 $ 285,727
Annual debt service requirement to maturity for Special Assessment Debt to be paid from rental revenue:
Special Assessment Debt - Component Unit
Assessment Interest
OutstandinQ Due Tota!
$ 29,758 $ 20,336 $ ~iO,O94
30,886 19,209 50,095
32,056 18,038 50,094
33,271 16,824 50,095
34,533 15,562 50,095
376,059 74,791 450,850
$ 536,563 $ 164,760 $ 701,323
29
Year
2003
2004
2005
2006
2007
Thereafter
Total
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 3. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
E. General Long-Term Debt (Continued)
Defeased bonds. In prior years, the City had defeased certain outstanding debt obligations by placing the
proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds.
Accordingly, the trust accounts and the defeased bonds are not included in the City's financial statements. At
December 31, 2002, the following outstanding bonds are considered defeased:
1993 Revenue Issue
1994 Revenue Issue
$
2,155,000
9,945,000
Total
$ 12,100,000
During 2002, the City issued $2,045,000 in general obligation refunding and improvement bonds with interest
ranging from 3.0 to 4.5% to advance refund $2,045,000 of the $2,295,000 outstanding 1993 Revenue Bonds
with interest rates ranging from 4.5 to 5.25%. The net proceeds were used to establish an escrow account
invested in U.S. Government Securities to pay partial portions of the outstanding principal of the 1993
Revenue Bonds maturing October 1, 2003 and thereafter and the interest due on the refunding revenue
bonds through the same date. As a result, the 1993 Revenue Bonds were considered to be defeased and the
liability for the defeased bonds has been removed from the City's financial statements. The transaction
resulted in an economic gain of $93,218 and a reduction of $437,260 in future debt payments.
During 2002, the City also issued $6,790,000 in revenue refunding bonds with interest ranging from 2.2 to
4.25% to advance refund $6,790,000 of the $10,690,000 outstanding 1994 Revenue Bonds with interest rates
ranging from 4.3 to 5.25%. The net proceeds were used to establish an escrow account invested in U.S
Government Securities to pay partial portions of the outstanding principal of the 1994 Revenue Bonds
maturing September 1, 2003 and thereafter and the interest due on the refunding revenue bonds through the
same date. As a result, the 1994 Revenue Bonds were considered to be defeased and the liability for the
defeased bonds has been removed from the City's financial statements. The transaction resulted in an
economic gain of $800,920 and a reduction of $1,580,963 in future debt payments.
Special assessments. As provided by Kansas statutes, projects financed in part by special assessments are
financed through general obligation bonds of the City and are retired from the debt service fund. Special
assessments paid prior to the issuance of bonds are recorded as revenue in the appropriate project. Special
assessments received after the issuance of bonds are recorded as revenue in the debt service fund. The
special assessments are not recorded as revenue when levied against the respective property owners as
such amounts are not available to finance current year operations. The special assessment debt is a
contingent of the City to the extent of property owner defaults, which have historically been immaterial.
Conduit debt. The City has entered into several conduit debt arrangements wherein the City issues industrial
revenue bonds to finance a portion of the construction of facilities by private enterprises. In return, the private
enterprises have executed mortgage notes or leases with the City. The City is not responsible for payment of
the original bonds, but rather the debt is secured only by the cash payments agreed to be paid by the private
enterprises under the terms of the mortgage or lease agreements. Generally, the conduit debt is arranged so
that payments required by the private enterprises are equal to the mortgage payments schedule related to the
original debt. At December 31,2002, total outstanding conduit debt was $87,032,512.
30
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 3. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
F. Reconciliation of Transfers
A reconciliation of operating interfund transfers follows:
General Fund
Special Revenue Funds
Enterprise Funds
Internal Service Funds
Transfer In
$ 91,772
507,091
2,564,181
125,000
Transfer Out
$ 262,500
398,863
2,626,681
Total Transfers
$ 3,288,044 $ 3,288,044
Residual equity transfers were made at year end to close projects in the following funds.
General Fund
Special Revenue Funds
Enterprise Funds
Transfer In Transfer Out
$ 44,842 $
3,663,545
2ß,362
3,682,025
$ 3,708,387 $ 3,708,387
G. Contributed Capital
The changes in the City's contributed capital accounts for its enterprise and internal service funds were as
follows:
Balance
January 1 ,
2002
Contributing
Source
Capital
Projects
Funds
Balance
December 31,
2002
Internal Service Funds
Central Garage
Infonnation Services
Enterprise Funds
Sanitation
Solid Waste
Municipal Golf Course
Water & Sewer
$
16,611 $
626,858
796 $;
17,407
626,858
45,253
113,372
229,562
8,424,147
$ 9,455,803 $
29,326
300
388
1,009,155
1,039,965
74,579
113,672
229,950
9,433,302
$; 10,495,768
31
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31,2002
Note 4. OTHER INFORMATION
A. Defined Benefit Pension Plan
Plan Description. The City participates in the Kansas Public Employees Retirement System (KPERS), and
the Kansas Police and Firemen's Retirement System (KP&F). Both are cost-sharing multiple-employer
defined benefit pension plans as provided by KS.A. 74-4901 et seq.. KPERS and KP&F provides retirement
benefits, life insurance, disability income benefits and death benefits. Kansas law establishes and amends
benefit provisions. KPERS and KP&F issue a publicly available financial report that includes financial
statements and required supplementary information. Those reports may be obtained b~' writing to KPERS
(611 South Kansas Avenue, Topeka, Kansas 66603-3925).
Funding Policy. KS.A. 74-4919 establishes the KPERS member-employee contribution rate at 4% of covered
salary. KS.A. 74-4975 establishes the KP&F member-employee contribution rate at 7% of covered salary.
The employer collects and remits member-employee contributions according to the provisions of section 414
(h) of the Internal Revenue Code. State law provides that the employer contribution rates be determined
annually based on the results of an annual actuarial valuation. KPERS and KP&F are funded on an actuarial
reserve basis. State law sets a limitation on annual increases in the employer contribution rates. The KPERS
employer rate was 3.52% from January 1 to June 30, 2002 and 2.92% from July 1 to December 31, 2002.
The City employer contributions to KPERS for the years ending December 31, 2002, 2001 and 2000 were
$347,505, $259,645 and $229,663, respectively, equal to the required contributions for each year. The KP&F
employer rate established for fiscal years beginning in 2002 is 6.79%. Employers participating in KP8F also
make contributions to amortize the liability for past service costs, if any, which are determined separatelY for
each participating employer. The City's contributions to KP&F for the years ended December 31, 2002, 2001,
and 2000 were $735,657, $719,030 and $710,481, respectively, equal to the required contributions for each
year.
B. Deferred Compensation Plan
The City offers its employees a deferred compensation plan ("Plan") created in accordance with Internal
Revenue Code Section 457. The Plan, available to all City employees, permits them to defer a portion of their
salary until future years. The deferred compensation is not available to employees until termination,
retirement, death, or unforeseeable emergency. Plan assets are transferred to a plan agent in a custodial
trust and are not available to the claims of the City's general creditors.
C. Flexible Benefit Plan (I.R.C. Section 125)
The City Commission has adopted by resolution a salary reduction flexible benefit plan ("Plan") under Section
125 of the Internal Revenue Code. All City employees working more than 20 hours per week are eligible to
participate in the Plan beginning after two full months of employment. Each participant may elect to reduce
his of her salary to purchase benefits offered through the Plan. Benefits offered through the Plan include
various insurance and disability benefits.
32
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 4. OTHER INFORMATION (Continued)
D. Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets;
errors and omissions; natural disasters and other events for which the City carries commercial insurance. No
significant reductions in insurance coverage from that of the prior year have occurred. Settlements have not
exceeded insurance coverage for each of the past three years.
The City has established a limited risk management program for workers' compensation. The program
covers all City employees. Premiums are paid into the Workers' Compensation Reserve Fund by all other
funds and are available to pay claims, claim reserves and administrative costs of the program. An excess
coverage insurance policy covers individual claims in excess of $250,000 ($350,000 for claims involving
employees classified as policemen or firemen). Incurred claims, including incurred but not reported claims,
have been accrued based primarily upon subsequent payments. Claim liabilities are calculated considering
the effects of inflation, recent claim settlement trends including frequency and amounts of payouts and other
economic and social factors. The liability for claims and judgments if reported in the Workers' Compensation
Reserve Fund because it is expected to be liquidated with expendable available financial resources.
Changes in the balances of claims liabilities during the past two years are as follows:
2002 2001
Unpaid claims, January 1 $ 172,060 $ 274,750
Incurred claims (including
IBNRs) 128,281 81,564
Claim payments [155,377] [184,2§Ð
Unpaid claims, December 31 $ 144,964 $ 172,06..2.
The City established a limited risk management program for employee health and dental insurance in 1997.
The program covers eligible City employees. Premiums are paid into the health insurance fund by all other
funds and are available to pay claims, claim reserves and administrative costs of the program. An excess
coverage insurance policy covers individual claims in excess of $50,000. Incurred claims, including incurred
but not reported claims, have been accrued based primarily upon subsequent payments. Claim liabilities are
calculated considering the effects of inflation, recent claim settlement trends including frequency and
amounts of payouts and other economic and social factors. The liability for claims and judgments in the
Health Insurance Fund because it is expected to be liquidated with expendable available financial resources.
Changes in the balances of claims liabilities during the past two years are as follows:
2002 2001
Unpaid claims, January 1 $ 271,446 $ 365,542
Incurred claims (including
IBNRs) 3,338,877 2,162,591
Claim payments [3,163,070] [2,256,6!m
Unpaid claims, December 31 $ 447,253 $ 271,446
33
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 4. OTHER INFORMATION (Continued)
E. Capital Projects
Capital projects often extend over two or more fiscal years. The following is a schedule which compares the
project authorization including allowable interest revenue to total project expenditures from project inception
to December 31,2002.
Project
South Ninth Utility Improvements
135/Magnolia Tract Improvements
2000 Subdivision Phase 3
South Marymount Road Project
Magnola Hills Subdivision
5th Street Stimmel Sewer
North Ohio Utility Extension
North Ohio Grade Separation
Law Enforcement Center
Authorization
$ 3,200,000
69,000
38,704
1,243,063
164,805
340,000
650,000
4,000,000
1,300,000
F. Subsequent Events
Expenditures
$ 990,213
32,540
27:¡r90
1,122,H05
91 :114
271,~>30
672,031
332,~>57
540,B66
On February 15, 2003, the City entered into a capital lease agreement with an original balance of $60,000.
The City is to make three annual payments, with the first payment due on June 1, 2004. The interest rate on
the lease is 3.65%.
G. Contingent Liabilities
The City receives significant financial assistance from numerous federal and state governmental agencies in
the form of grants and state pass-through aid. The disbursement of funds received under these programs
generally requires compliance with terms and conditions specified in the grant agreements and is subject to
audit. Any disallowed claims resulting from such audits could become a liability of the General Fund or other
applicable funds. However, in the opinion of management, any such disallowed claims would not have a
material effect on any of the financial statements of the City at December 31, 2002.
The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently
determinable, it is the opinion of the City's legal counsel that resolution of these matters will not have a
material adverse effect on the financial condition of the City.
34
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 4. OTHER INFORMATION (Continued)
H. Municipal Solid Waste Landfill
State and federal laws and regulations require the City to place a final cover on its landfill site when it stops
accepting waste, and to perform certain maintenance and monitoring functions at the site for thirty years after
closure. Although closure and postclosure care costs will be paid only near or after the date that the landfill
stops accepting waste, the City reports a portion of these closure and postclosure care costs as an operating
expense of the solid waste fund in each period based on landfill capacity used as of each balance sheet date.
The $1,164,833 reported as landfill closure and postclosure care liability at December 31 represents the
cumulative amount reported to date based on the use of 23.6% of the estimated capacity of the landfill. The
City's solid waste fund will recognize the remaining estimate cost of closure and postclosure care of
$3,777,181 as the remaining estimated capacity is filled over the remaining life expectancy of 91 years.
These amounts are based on what it would cost to perform all closure and postclosure care in 2002. Actual
cost may be higher due to inflation, changes, in technology or changes in regulations. The City is required by
State and Federal laws and regulations to provide assurances of financial responsibility for closure and post-
closure care. The City has elected to utilize the Local Government Financial test promulgated by the U.S.
Environmental Protection Agency (at 40 CFR 258.74(f)) and the Kansas Department of Health and
Environment to provide these assurances. Any future closure or post-closure care costs will be provided
through the normal budgeting and rate setting process, including the issuance of general obligation bonds, if
necessary.
I. Segment Information - Enterprise Funds
The City maintains four enterprise funds which are intended to be self-supporting through user fees charged
for services to the public. Financial segment information as of and for the year ended December 31, 2002 is
presented below.
Solid Golf Water
Waste Course and
Sanitation Disposal Division Se\Ner Total
Operating revenues $ 1,638,280 $ 2,210,231 $ 867,108 $ 13,435,656 $ 18,151,275
Depreciation expense 67,558 757,019 61,099 2,460,471 3,346,147
Operating income [loss] [16,033] 161,079 34,194 1,807,277 1,986,517
Net income [loss] 4,175 223,701 37,259 987,356 1,252,491
Property, plant and
equipment additions 121,370 121,962 26,244 3,625,753 3,895,329
Net working capital 466,632 2,328,431 117,665 8,758,400 11,671,128
Total assets 1,027,956 7,105,184 1,324,639 63,552,499 73,010,278
Bonds and temporary
notes payable 380,805 81,526 21,089,678 21,552,009
Total equity 895,171 5,424,812 1,176,316 41,270,730 48,767,029
35
CITY OF SALINA, KANSAS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2002
Note 4. OTHER INFORMATION (Continued)
J. Environmental Matters
The Kansas Department of Health and Environment (KDHE) issued a report in 1994 indicating the presence
of volatile organic compounds at levels requiring remediation at the Salina Public Water Supply Wells Site
(the Site). The City adopted a proactive Policy and Action Plan to remediate the groundwater contamination,
and on December 7, 1994, the City and KDHE entered into a Consent Order and Settlement Agreement
under which the City assumed primary responsibility for the further investigation and remediation of the
groundwater contamination. Field testing work has been completed. The necessary remediation work will be
conducted over the next several years at a yet undetermined cost to the City's Water and Sewer Fund.
The Salina Airport Authority has been involved in discussions with the Corps of Engineers, Environmental
Protection Agency, and the Kansas Department of Health and Environment relative to the former Schilling air
Force Base (the Base) in Salina, Kansas. The Base was operational from 1942 to 1965 when it was
decommissioned and became the current Salina Municipal Airport and Salina Airport Industrial Center.
During its period of operation, the Base was used for large aircraft including B-17s, B-29s, B-47s and the
refueling KC-97s and KC-135s. The Army Corps of Engineers did a removal of 107 former underground
storage tanks at the former Base in 1995. In addition to efforts by the Corps of Engineers, the Environmental
Protection Agency has conducted an Expanded Site Investigation (ESI) to determine all sources of potential
contamination at the Site. Once the additional information gathering effort has been conducted and all
parties know the nature and extent of contamination, it is anticipated that there will be a discussion with
respect to cleanup options and allocation of responsibility. At this time, the Authority does not know
specifically whether the City of Salina or the Authority will have cleanup obligations.
K. New Governmental Accounting Standards
The Governmental Accounting Standards Board (GASB) has issued the following statements:
Statement No. 34 - "Basic Financial Statements - And Management's Discussion and Analysis - For State
and Local Governments" which establishes a new financial reporting model for state and local governments.
Statement No. 37 - "Basic Financial Statements - And Management's Discussion and Analysis - For State
and Local Governments: Omnibus" which changes the reporting of escheat property to coincide with
Statement No. 34, clarifies provisions of Statement No. 34 which are not sufficiently dear, and modifies
provisions of Statement No. 34 which have unintended consequences.
Statement No. 38 - "Certain Financial Statement Note Disclosures" which modifies, establishes, and rescinds
certain financial statement disclosure requirements.
Statements 34, 37, 38 will become effective for the period beginning January 1, 2003. Management has not
yet completed their assessments, however, they will have a material effect on the overall financial statement
presentation for the City.
36
COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES
CITY OF SALINA, KANSAS
GENERAL FUND
The general fund is used to account for resources traditionally associated with government which are not required
legally or by sound financial management to be accounted for in another fund.
37
ASSETS
Cash and investments
Receivables
Accounts, net
Taxes
Grants
Interest
Inventory
Due from other funds
Total assets
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
Retainage payable
Deferred revenue
Total liabilities
Fund balances
Reserved for encumbrances
Unreserved
Undesignated
Total fund balances
Total liabilities and fund balances
CITY OF SALINA, KANSAS
GENERAL FUND
COMPARATIVE BALANCE SHEETS
December 31, 2002 and 2001
Schedule 1
2002 2001
$ 6,341,230 $ 6,145,560
952,405 769,441
2,352,889 2,300,104
17,995
106,991 87,616
88,299 70,390
793,597
$ 9,859,809 $ 10,166,708
$ 489,010 $ 390,633
4,846
2,352,889 2,300,104
2,841,899 2,695,583
437,406 732,216
6,580,504 6,738,909
7,017,910 7,471,125
$ 9,859,809 $ 10,166,708
See independent auditor's report on the general purpose financial statements.
38
Schedule 2
CITY OF SALINA, KANSAS
GENERAL FUND
COMPARATIVE STATEMENTS OF REVENUES. EXPENDITURES AND
CHANGES IN FUND BALANCES
For the fiscal years ended December 31, 2002 and 2001
Residual equity transfer in
2002 2001
$ 17,177,266 $ 16,664,880
1,461,340 1,517,465
1,490,657 1,482,613
3,131,242 3,543,547
23,260,505 23,208,505
1,935,757 2,033,818
9,924,484 9,290,773
3,952,243 3,767,521
1,860,573 1,821,817
722,897 705,421
3,432,778 3,407,067
1,820,570 1,554,969
23,649,302 22,581,386
[388,79ZJ 627,119
91,772 90,067
[262,500] [262,500]
61,468 40,699
[109,2EQ] [131,734]
[498,0!:,7] 495,385
7,471,125 6,942,816
44,842 32,924
$ 7,017,910 $ 7,471,125
Revenues
Taxes
Intergovernmental
Fees and charges
Miscellaneous
Total revenues
Expenditures
General government
Public safety
Public works
Culture and recreation
Public health and sanitation
Community development
Capital outlay
Total expenditures
Excess [deficiency] of revenues over [under] expenditures
Other financing sources [uses]
Operating transfers in
Operating transfers [out]
Sale of assets
Total other financing sources [uses]
Excess [deficiency] of revenues and other sources
over [under] expenditures and other [uses]
Fund balances, January 1
Fund balances, December 31
See independent auditor's report on the general purpose financial statements.
39
Schedule 3
1 of 3
CITY OF SALINA, KANSAS
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ACTUAL AND BUDGET
For the fiscal years ended December 31, 2002 and 2001
2002 2001
Variance Variance
Positive Positive
Actual BudQet [NeQativel Actual BudQet [NeQativel
Revenues
Taxes
Real estate taxes $2,260,330 $2,256,101 $ 4,229 $2,714,696 $2,7'09,089 $ 5,607
Delinquent taxes 66,040 30,000 36,040 48,186 30,000 18,186
Motor vehicle taxes 317,339 365,852 [48,513] 306,344 320,840 [14,496]
General sales tax 12,257,820 12,291,000 [33,180] 12,010,742 12,050,000 [39,258]
Other taxes 2,275,737 2,195,000 80,737 2,431,988 2,312,500 119,488
Total taxes 17,177,266 17,137,953 39,313 17,511,956 17,422,429 89,527
Intergovernmental
City - County Revenue Sharing 155,728 324,027 [168,299] 324,027 399,354 [75,327]
LA VTR 410,945 475,000 [64,055] 420,448 443,972 [23,524]
Liquor tax 122,584 113,216 9,368 129,058 111,000 18,058
EMS - County 714,692 714,186 506 673,680 ß79,186 [5,506]
Other intergovernmental 31,498 80,000 [48,502] 34,341 - 80,000 [45,659]
Total intergovernmental 1,435,447 1,706,429 [270,982] 1,581,554 --..12'13,512 [131,958]
Fees and Charges
Charges for services 286,707 238,500 48,207 278,177 239,000 39,177
Public safety fees 778,401 747,000 31,401 751,635 745,000 6,635
Recreational fees 400,356 431,500 [31,144] 436,553 435,000 1,553
Merchandise sales 5,850 9,000 [3,150] 6,719 9,000 [2,281]
Rents and royalties 8,733 8,000 733 9,604 - 8,000 1,604
Total fees and charges 1,480,047 1,434,000 46,047 1,482,688 --.!.ð36,OOO 46,688
Other Revenues
Licenses and permits 427,758 340,975 86,783 402,558 ~~76,275 26,283
Fines 1,198,957 1,000,000 198,957 1,066,118 1,000,000 66,118
Interest 251,845 425,000 [173,155] 585,717 475,000 110,717
Reimbursements 144,492 153,000 [8,508] 209,209 152,000 57,209
Miscellaneous 50,744 30,000 20,744 32,580 24,000 8,580
Internal charges 833,001 784,850 48,151 661,022 --.iì10,022 51,000
Total other revenues 2,906,797 2,733,825 172,972 2,957,204 2,ß37,297 319,907
Total revenues 22,999,557 23,012,207 [12,650] 23,533,402 23,209,238 324,164
Expenditures
General Government
City commission 89,614 107,950 18,336 98,784 107,450 8,666
City manager 375,435 397,014 21,579 379,910 386,152 6,242
Legal 126,211 107,000 [19,211] 133,069 136,900 3,831
Finance 351,147 361,396 10,249 352,701 383,932 31,231
Human resources 210,232 215,225 4,993 224,133 212,212 [11,921]
Other general government 692,818 692,727 [91] 551,302 527,414 [23,888]
Contingencies 32,657 200,000 167,343 127,311 --.J 70,000 42,689
Total general government 1,878,114 2,081,312 203,198 1,867,210 ~24,O60 56,850
See independent auditor's report on the general purpose financial statements.
40
Schedule 3
2 of3
CITY OF SALINA, KANSAS
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ACTUAL AND BUDGET
For the fiscal years ended December 31,2002 and 2001
2002 2001
Variance Variance
Positive Positive
Actual BudQet rNeQativel Actual Budg§ rNeQativel
Expenditures - continued
Public Safety
Police $4,352,629 $4,360,155 $ 7,526 $4,228,462 $ 4,263,243 $ 34,781
Municipal court 1,002,963 779,683 [223,280] 709,042 776,299 67,257
Fire 4,118,919 4,084,796 [34,123] 3,915,172 3,91 ~3,927 4,755
Building services 379,460 350,534 [28,926] 358,589 ~2,075 3,486
Total public safety 9,853,971 9,575,168 [278,803] 9,211,265 9,321,544 110,279
Public Works
Buildings and general improvements 683,714 632,025 [51,689] 593,116 641 ,560 48,444
Engineering 455,393 455,369 [24] 430,163 412,360 [17,803]
Streets 1,142,305 1,139,956 [2,349] 1,125,074 1,125,680 606
Flood works 126,291 142,992 16,701 117,869 138,733 20,864
Traffic control 557,809 530,765 [27,044] 519,781 525,010 5,229
Parks 920,337 923,220 2,883 888,107 912,833 24,726
ADA compliance 16,434 40,000 23,566 26,732 ~), 000 13,268
Total public works 3,902,283 3,864,327 [37,956] 3,700,842 3,796,17~ 95,334
Public Health and Sanitation
Cemetery 94,206 105,865 11,659 105,845 10:3,188 [2,657]
Health department 626,758 626,758 598,646 ~3,646 --,----
Total public health and sanitation 720,964 732,623 11,659 704,491 -1Q1,834 ----- [2,657J
Culture and Recreation
Swimming pools 76,806 69,950 [6,856] 79,920 7:2,300 [7,620]
Neighborhood centers 63,251 60,999 [2,252] 53,196 58,701 5,505
Recreation 1,126,507 1,107,270 [19,237] 1,105,044 1,087,614 [17,430]
Arts and humanities 285,658 302,575 16,917 309,865 295,439 [14,426]
Smoky Hill museum 282,896 277,568 [5,328] 257,216 ~4,516 17 , 300
Total culture and recreation 1,835,118 1,818,362 [16,756] 1,805,241 1,788,570 [16,671]
Community Development
Human relations 160,481 164,178 3,697 147,116 160,066 12,950
Planning 218,967 207,024 [11,943] 194,210 191,844 [2,366]
Neighborhood services 302,528 271,654 [30,874] 260,817 259,690 [1,127]
Agency contracts 2,801,975 2,796,800 [5,175] 2,974,482 2,990,259 15,777
Total community development 3,483,951 3,439,656 [44,295] 3,576,625 3,601,859 25,234
Capital Outlay
Capital outlay 1,669,566 2,028,099 358,533 2,046,859 2,097,347 50,488
Cash Reserve 4,293,328 4,293,328 5,021,168 5,021,168
Total expenditures 23,343,967 27,832,875 4,488,908 22,912,533 28,252,558 5,340,025
Excess [deficiency] of revenues
over [under] expenditures [344,410] [4,820,668] 4,476,258 620,869 [5,043,320] 5,664,189
See independent auditor's report on the general purpose financial statements-
41
Schedule 3
3 of3
CITY OF SALINA, KANSAS
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ACTUAL AND BUDGET
For the fiscal years ended December 31, 2002 and 2001
2002 2001
Variance Variance
Positive Positive
Actual BudQet fNeQativel Actual .E!.udQet fNeQativel
$ 91,772 $ 17,000 $ 74,772 $ 90,067 $ 17,000 $ 73,067
[262,500] [262,500] [262,500] [:~62,500]
61,468 45,000 16,468 40,699 - 54,000 [13,301]
[109,260] [200,500] 91,240 [131,734] ----1191,500] 59,766
Other financing sources [uses]
Operating transfer in
Operating transfer [out]
Sale of assets
Total other financing sources [uses]
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]
[453,670]
[5,021,168]
4,567,498
489,135
[5,~~34,820]
5,723,955
Unreserved fund balance, January 1
5,816,308
5,021,168
795,140
5,241,626
5,~!34,820
6,806
Prior year cancelled encumbrances
Residual equity transfer in
7,334
44,842
7,334
44,842
52,623
32,924
--
52,623
32,924
Unreserved fund balance, December 31
5,414,814 $
- $5,414,814
5,816,308 L-======. $5,816,308
Reconciliation to GAAP
Interest receivable
Grants receivable
Accounts receivable
Inventory
Retainage
Encumbrances
106,991
17,995
952,405
88,299
87,616
437,406
769,441
70,390
[4,846]
732,216
GAAP Fund Balance, December 31
$ 7,017,910
$ 7,471,125
See independent auditor's report on the general purpose financial statements.
42
CITY OF SALINA, KANSAS
SPECIAL REVENUE FUNDS
Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for
particular purposes.
Employee benefit fund - To account for the costs of various benefits provided to governmental employees.
Flood and drainage improvement fund - To account for property tax revenues to be used for capital improvements to
the Flood Control and Stormwater Drainage systems.
Business improvement district fund - State law allows businesses within an area to voluntarily establish an
improvement district. This fund is used to account for the assessments made on the district. All revenues are to be
used within the Business Improvement District.
Tourism and convention fund - To account for transient guest tax revenues, which are specifically restricted to
promotion and tourism activities.
Neighborhood park fund - To account for fees collected from new residential building projects in Salina.
Expenditures are for acquisition or development of neighborhood parks in the growing areas of the community.
Special parks and recreation fund - To account for liquor tax revenues which must be used for park maintenance
and improvements.
Special alcohol fund - To account for liquor tax revenues which must be used for programs which address
prevention, education or intervention for drug and alcohol abuse.
Special gas fund - To account for the City's share of motor fuel tax revenues which are legally restricted to the
maintenance or improvement of streets within the City.
Bicentennial Center fund - To account for the activities of the City's convention center.
Bicentennial Center Event fund - To account for the revenues and expenses associated with special events
(concerts, shows, etc.) at the City's convention center.
HUD community development fund - To account for grants received from the state to be used for housing or
economic development purposes.
Community development revolving fund - To account for funds which may be loaned for housing and economic
development purposes, to later be repaid and reused on a revolving basis.
Heritage commission fund - To account for revenues and expenses associated with heritage preservation activities.
Fair housing fund - To account for grants received from the federal government to be used to monitor and mediate
fair housing complaints.
CDBG ED fund- To account for grants received from the federal government to be used for economic development
loans to qualifying businesses.
HOME IV fund - To account for grants received from the state govemment to be used for housing rehabilitation.
Special law enforcement fund - To account for revenues received from the sale of forfeited assets acquired during
drug enforcement activities. Expenses are limited to capital items to be used for further drug enforcement activities.
Fair housing partnership - To account for revenues and expenses associated with fair housing complaints.
43
Schedule 6
4 of 10
CITY OF SALINA, KANSAS
TOURISM AND CONVENTION SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ACTUAL AND BUDGET
For the fiscal years ended December 31, 2002 and 2001
2002 :2001
Variance Variance
Positive Positive
Actual Budqet rNeqativel Actual ßudqet rNeqativel
Revenues
Taxes
Other taxes
$ 767,728 $ 775,000 $ [7,272]
$ 729,084 $ 775,000 $ [45,916]
Other Revenues
Interest
160
160
470
470
Total revenues
767,888
775,000
[7,112]
729,554
775,000
[45,446]
Expenditures
Community Development
Tourism
460,637
465,000
4,363
437,449
469,444
31,995
Total expenditures
460,637
465,000
4,363
437,449
469,444
31,995
Excess [deficiency] of revenues
over [under] expenditures
307,251
310,000
[2,749]
292,105
:;,05,556
[13,451]
Other financing sources [uses]
Operating transfer [out]
[307,091 ]
[310,000]
2,909
[291,634] ...fI10,000]
18,366
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]
Unreserved fund balance, January 1
160 160 471 [4,444] 4,915
4,915 4,915 4,444 4,444
5,075 $ - $ 5,075 4,915 $ - $ 4,915
Unreserved fund balance, December 31
Reconciliation to GAAP
Interest receivable
Taxes receivable
86
198,483
59
196,633
GAAP Fund Balance, December 31
$ 203,644
$ 201,607
See independent auditor's report on the general purpose financial statements.
53
Schedule 6
3 of 10
CITY OF SALINA, KANSAS
BUSINESS IMPROVEMENT DISTRICT SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ACTUAL AND BUDGET
For the fiscal years ended December 31,2002 and 2001
2002 2001
Variance Variance
Positive Positive
Actual Budqet fNeqativel Actual Budqet fNeqativel
Revenues
Fees and charges
Charges for services
$ 76,675 $ 82,000 $ [5,325] $ 70,990 $ 82,000 $ [11,010]
Other Revenues
Interest
186
186
207
207
--
Total revenues
76,861
82,000
[5,139]
71,197 ~2,000
[10,803]
Expenditures
Community Development
Business Improvement District
76,889
82,000
5,111
54,167 ~5,013
10,846
Total expenditures
76,889
82,000
5,111
54,167 ~5,013
10,846
Excess [deficiency] of revenues
over [under] expenditures
[28]
[28]
17,030 .-!!3,98/. --___~_~3
Other financing sources [uses]
Operating transfer [out]
[17,000] -L!7,000]
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]
[28]
[28]
30
[13]
43
Unreserved fund balance, January 1
43
43
13
13
--
Unreserved fund balance, December 31
15 $
- $
15
43 L--.: $
43
Reconciliation to GAAP
Interest receivable
Accounts receivable
70
21,164
48
24,272
GAAP Fund Balance, December 31
$ 21,249
$ 24,363
See independent auditor's report on the general purpose financial statements.
52
Schedule 6
2 of 10
CITY OF SALINA, KANSAS
FLOOD & DRAINAGE IMPROVEMENT SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ACTUAL AND BUDGET
For the fiscal years ended December 31, 2002 and 2001
2002 2001
Variance Variance
Positive Positive
Actual Budqet rNeqativel Actual ~Jdqet rNeqativel
Revenues
Taxes
Real estate taxes $ 290,679 $ 290,720 $ [41] $ 277,729 $ 276,839 $ 890
Delinquent taxes 6,809 3,000 3,809 5,702 3,000 2,702
Motor vehicle taxes 32,617 37,387 [4,770] 37,549 _39,040 [1,491]
Total revenues 330,105 331 ,107 [1,002] 320,980 --.118,879 2,101
Expenditures
Capital Outlay
Capital outlay 127,369 300,000 172,631 284,675 ~40,000 [44,675]
Debt service
Principal 90,000 90,000 90,000 90,000
Interest and other charges 4,250 8,200 3,950 8,658 - 8,658
Total debt service 94,250 98,200 3,950 98,658 98,658
Cash Reserve 148,654 148,654 ~15,747 215,747
Total expenditures 221,619 546,854 325,235 383,333 254,405 171,072
Excess [deficiency] of revenues
over [under] expenditures 108,486 [215,747] 324,233 [62,353] -E35,526] 173,173
Other financing sources [uses]
Operating transfer [out] [48,615] -- [48,615]
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses] 108,486 [215,747] 324,233 [110,968] [235,526] 124,558
Unreserved fund balance, January 1 124,567 215,747 [91,180] 235,526 235,526
Prior year cancelled encumbrances 9 9
--
Unreserved fund balance, December 31 233,053 $ - $ 233,053 124,567 L- 124,567
Reconciliation to GAAP
Retainage Payable [9,018] [5,943]
Current Year Encumbrances 24,629 157,140
GAAP Fund Balance, December 31 $ 248,664 $ 275,764
See independent auditor's report on the general purpose financial statements.
51
Schedule 6
1 of 10
CITY OF SALINA, KANSAS
EMPLOYEE BENEFIT SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ACTUAL AND BUDGET
For the fiscal years ended December 31,2002 and 2001
2002 2001
Variance Variance
Positive Positive
Actual Budqet rNeqativel Actual Budqet rNeqativel
$ 26,079 $ 29,912 $ 3,833 $ 28,635 L- 28,667 $ 32
4,194 4,608 414 4,131 4,608 477
3,248 3,074 [174] 2,670 2,678 8
125,841 131,395 5,554 117,188 127,821 10,633
139,294 148,351 9,057 133,252 138,732 5,480
68,953 51,953 [17,000] 53,140 50,492 [2,648]
47,889 46,391 [1,498] 43,640 - 46,731 3,091
389,419 385,772 [3,647] 354,021 ~71,062 17,041
33,970 35,718 1,748 32,724 33,546 322
53,271 56,270 2,999 44,199 54,413 10,214
31,178 33,812 2,634 29,493 _31,629 2,136
118,419 125,800 7,381 106,416 -119,58~ -~_3..J 72
Expenditures - continued
Public Health and Sanitation
Cemetery
Culture and Recreation
Swimming pools
Neighborhood centers
Recreation
Bi-Centennial Center
Arts and humanities
Smoky Hill museum
Total culture and recreation
Community Development
Human relations
Planning
Neighborhood services
Total community development
Other
Health insurance
Fund balance, January 1
8,794 10,000 1,206 6,000 10,000 4,000
524,828 524,828 ---.144,41 0 744,410
3,400,676 4,023,168 622,492 3,309,904 4,066,835 756,931
[145,636] [744,410] 598,774 [489,670] [1,247,984] 758,314
758,314 744,410 13,904 1,247,984 1,247,984
$ 612,678 $ - $612,678 $ 758,314 $ - $758,314
Cash Reserve
Total expenditures
Excess [deficiency] of revenues
over [under] expenditures
Fund balance, December 31
See independent auditor's report on the general purpose financial statements.
50
Schedule 6
1 of 10
CITY OF SALINA, KANSAS
EMPLOYEE BENEFIT SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ACTUAL AND BUDGET
For the fiscal years ended December 31,2002 and 2001
2002 2001
Variance Variance
Positive Positive
Actual Budqet rNeqativel Actual Budqet rNeqativel
Revenues
Taxes
Real estate taxes $ 2,902,703 $ 2,904,129 $ [1 ,426] $ 2,360,936 $ 2,:351,999 $ 8,937
Delinquent taxes 72,587 55,000 17,587 63,528 55,000 8,528
Motor vehicle taxes 279,750 317,629 [37,879] 395,770 409,852 [14,082]
Total taxes 3,255,040 3,276,758 [21,718] 2,820,234 2,816,851 3,383
Other Revenues
Reimbursements 2,000 [2,000] 2,000 [2,000]
Total revenues 3,255,040 3,278,758 [23,718] 2,820,234 2,818,851 1,383
Expenditures
General Government
City commission 1,407 1 ,420 13 1 ,408 1,420 12
City manager 69,768 73,470 3,702 70,274 70,071 [203]
Finance 71,319 78,229 6,910 71,177 71,788 611
Human resources 33,221 35,121 1,900 34,407 33,881 [526]
Total general government 175,715 188,240 12,525 177,266 177,160 [106]
Public Safety
Police 922,511 964,027 41,516 926,534 904,207 [22,327]
Municipal court 84,760 86,992 2,232 85,278 79,287 [5,991]
Fire 959,579 994,611 35,032 942,588 968,540 25,952
Building services 78,244 84,972 6,728 81 ,198 77,799 [3,399]
Total public safety 2,045,094 2,130,602 85,508 2,035,598 2,029,833 [5,765]
Public Works
Buildings and general improvements 57,844 58,184 340 55,759 55,878 119
Engineering 96,475 97,425 950 91,697 83,239 [8,458]
Streets 242,376 237,592 [4,784] 230,328 230,402 74
Flood works 28,628 30,424 1,796 28,615 28,494 [121]
Traffic control 32,380 33,751 1,371 31,329 31,627 298
Parks 179,453 170,638 [8,815] 164,240 156,475 [7,765]
Total public works 637,156 628,014 [9,142] 601,968 586,115 [15,853]
See independent auditor's report on the general purpose financial statements.
49
Schedule 5
2 of2
Special Fair Total
HOME Law Housing Police DARE Large System
IV Enforcement Partnership Grants Donations Interface 2002 2001
$ - $ - $ - $ - $ - $ - $ 4,354,723 $ 3,901,917
61,500 110,738 7,899 2,140,203 2,399,017
637,247 624,796
7,761 354 25,000 170 6,150 108 1,046,5,07 1,346,447
69,261 354 25,000 110,908 6,150 8,007 8,178,680 8,272,177
2,223 186,7'32 193,021
2,045,094 2,035,598
1,163,7'08 1,097,852
2,434,624 2,518,5J'í
148,663 179,777
26,971 753,774 745,675
3,500 31,164 1,653,3;44 1,918,534
90,000 90,000
4,250 8,658
3,500 26,971 31,164 2,223 8,480,189 8,787,649
69,261 [3,146] [1,971] 79,744 6,150 5,784 [301,509] [515,472]
507,091 491,634
[91,772] [398,8§) [428,401]
[91,772] 108,228 63,233
69,261 [3,146] [1,971] [12,028] 6,150 5,784 [193,281] [452,239]
[57,792] 15,206 30,903 27,129 [1,625] 3,644,071 4,065,926
[26,:~ 30,384
$ 11 ,469 $ 12,060 $ [1,971] $ 18,875 $ 33,279 $ 4,159 $ 3,424,428 $ 3,644,071
See independent auditor's report on the general purpose financial statements.
48
Schedule 5
2 of2
CITY OF SALINA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE -
For the Year Ended December 31,2002
(With comparative totals for the year ended December 31, 2001)
Community
Development Heritage Fair CDBG
Revolving Commission Housing ED
REVENUES:
Taxes $ - $ - $ - $
Intergovernmental 208,047 18,143
Fees and charges
Other local sources 19,067 55 9,658 31,659
Total revenues 19,067 55 217,7'05 49,802
EXPENDITURES:
Current
General government
Public safety
Public works
Culture and recreation
Public health and sanitation
Community development 70,E:59
Capital outlay 81,562
Debt service
Principal
Interest and other charges
Total expenditures 70,E:59 81,562
Excess [deficiency] of revenues
over [under] expenditures 19,067 55 146,E:46 [31 ,760]
OTHER FINANCING SOURCES [USES]:
Operating transfers in
Operating transfers [out]
Total other financing sources [uses]
Net change in fund balances 19,067 55 146,E:46 [31,760]
Fund balance - January 1 152,075 1,451 106,3;16 29,213
Residual equity transfers in [out] [26,3g]
Fund balance - December 31 $ 171,142 $ 1,506 $ 226,800 $ [2,547]
Schedule 5
1 of 2
Special Bicentennial HUD
Neighborhood Parks and Special Special Bicentennial Center Community
Park Recreation Alcohol Gas Center Event Development
$ - $ - $ - $ - $ - $ - $
122,584 122,584 1,488,708
11,100 552,580
4,002 3,532 734 40,809 277,403 613,114 6,536
15,102 126,116 123,318 1,529,517 829,983 613,114 6,536
188,363
498,508
1,391,417 653,787
122,584
1,074,662 39,182
188,363 122,584 1,573,170 1,430,599 653,787
15,102 [62,247] 734 [43,653] [600,616] [40,673] 6,536
507,091
507,091
15,102 [62,247] 734 [43,653] [93,525] [40,673] 6,536
96,564 143,023 2,160 1,316,335 378,023 84,078 60,964
$
111,666 $
80,776 $
2,894 $ 1,272,682 $
284,498 $
43,405 $
67,500
See independent auditor's report on the general purpose financial statements.
47
Schedule 5
1 of 2
CITY OF SALINA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE -
For the Year Ended December 31, 2002
(With comparative totals for the year ended December 31, 2001)
Employee
Benefit
Flood & Business
Drainage Improvement
Improvement District
Tourism
and
Convention
REVENUES:
Taxes
Intergovernmental
Fees and charges
Other local sources
- $ 769,578
73,567
208 187
73,775 769,765
$ 3,255,040 $
330,105 $
Total revenues
3,255,040
330,105
EXPENDITURES:
Current
General government
Public safety
Public works
Culture and recreation
Public health and sanitation
Community development
Capital outlay
Debt service
Principal
Interest and other charges
Total expenditures
184,509
2,045,094
637,156 28,044
389,420
26,079
118,418 76,889 460,637
234,911
90,000
4,250
3,400,676 357,205 76,889 460,637
[145,636] [27,100] [3,1~ 309,128
Excess [deficiency] of revenues
over [under] expenditures
OTHER FINANCING SOURCES [USES]:
Operating transfers in
Operating transfers [out]
[307,091]
[307,091]
[3,114] 2,037
24,363 201,607
Total other financing sources [uses]
Net change in fund balances
[145,636]
[27,100]
Fund balance - January 1
758,314
275,764
Residual equity transfers in [out]
Fund balance - December 31
$
612,678 $
248,664 $
21,249 $
203,644
Schedule 4
2 of2
Special Fair Total
HOME Law Housing Police DARE Large System
IV Enforcement Partnership Grants Donations Interface 2002 2001
$ 11 ,469 $ 11,860 $ 1,779 $ 18,561 $ 32,726 $ 4,462 $2,925,ï'21 $3,118,915
36, ï'63 35,935
4,073,~104 3,853,497
200 314 553 33,Eì74 28,042
28,016 21,478
1,625
$ 11 ,469 $ 12,060 $ 1,779 $ 18,875 $ 33,279 $ 4,462 $ 7,097,478 $ 7,059,492
$ - $ - $ 3,750 $ - $ - $ 303 $ 112,Eì17 $ 63,103
20, ï'69 5,943
59,417
3,539,Eì6¡i 958
3,750 303 3,673,050 3,415,421
377,B50 527,749
28,016 21,478
11,469 12,060 [1,971] 18,875 33,279 4,159 3,018,462 3,094,844
11 ,469 12,060 [1,971] 18,875 33,279 4,159 3,424,428 3,644,071
$ 11 ,469 $ 12,060 $ 1,779 $ 18,875 $ 33,279 $ 4,462 $ 7,097,478 $ 7,059,492
See independent auditor's report on the general purpose financial statements.
46
Schedule 4
2 of2
CITY OF SALINA
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
December 31, 2002
(With comparative totals for December 31, 2001)
Community
Development Heritage Fair CDBG
Revolving Commission Housing ED
ASSETS
Cash and investments $ 154,523 $ 1,481 $ 223,032 $ 112
Receivables
Accounts
Taxes
Interest 2,611 25 3,768
Notes 14,008
Due from other funds
Total assets $ 171,142 $ 1,506 $ 226,800 $ 112
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ - $ - $ - $ 2,659
Retainage payable
Due to other funds
Deferred revenue
Total liabilities 2,659
Fund balances:
Reserved for encumbrances
Reserved for notes receivable 14,008
Unreserved
Undesignated 157,134 1,506 226,800 [2,547]
Total fund balances 171,142 1,506 226,800 [2,547]
Total liabilities and fund balances $ 171,142 $ 1,506 $ 226,800 $ 112
Schedule 4
10f2
Special Bicentennial HUD
Neighborhood Parks and Special Special Bicentennial Center Community
Park Recreation Alcohol Gas Center Event Development
$ 109,811 $ 79,819 $ 33,960 $ 965,969 $ 300,391 $ 43,405 $ 52,603
15,599
335,157
1,855 1,349 574 16,321 5,059 889
14,008
$ 111,666 $ 81,168 $ 34,534 $ 1,317,447 $ 321,049 $ 43,405 $ 67,500
$
- $
392 $
31,640 $
33,014 $
11,751
36,551 $
- $
392 31,640 44,765 36,551
7,830 342,831 2,660
14,008
111,666 72,946 2,894 929,851 281,838 43,405 53,492
111,666 80,776 2,894 1,272,682 284,498 43,405 67,500
$ 111,666 $ 81,168 $ 34,534 $ 1,317,447 $ 321,049 $ 43,405 $ 67,500
See independent auditor's report on the general purpose financial statements.
45
Schedule 4
1 of 2
CITY OF SALINA
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
December 31, 2002
(With comparative totals for December 31, 2001)
Employee
Benefit
Flood & Business
Drainage Improvement
Improvement District
Tourism
and
Convention
ASSETS
Cash and investments
Receivables
Accounts, net
Taxes
Interest
Notes
Due from other funds
$ 612,848 $ 257,682 $ 4,H;3 $ 5,075
21, 1H4
3,224,186 315,478 198,483
j70 86
Total assets
$ 3,837,034 $
573,160 $
25,387 $
203,644
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Retainage payable
Due to other funds
Deferred revenue
$ 170 $ - $
9,018
3,224,186 315,478
3,224,356 324,496
4, 1 :~8 $
Total liabilities
4, 1:~8
Fund balances:
Reserved for encumbrances
Reserved for notes receivable
Unreserved
Undesignated
24,629
612,678 224,035 21,249 203,644
612,678 248,664 21,249 203,644
$ 3,837,034 $ 573,160 $ 25,387 $ 203,644
Total fund balances
Total liabilities and fund balances
CITY OF SALINA, KANSAS
SPECIAL REVENUE FUNDS - CONTINUED
Police grants fund - To account for revenues from grants which are to be used for special police activities, including
the DARE. program
DARE. donations fund - To account for donations to the DARE. program.
Large system interface fund - To account for grants received for the acquisition of computers and software used in
law enforcement activities.
44
Schedule 6
5 of 10
CITY OF SALINA, KANSAS
NEIGHBORHOOD PARK SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ACTUAL AND BUDGET
For the fiscal years ended December 31, 2002 and 2001
2002 :2001
Variance Variance
Positive Positive
Actual Budqet fNeqativel Actual ß:udqet fNeqativel
Revenues
Other Revenues
Licenses and permits $ 11,100 $20,000 $ [8,900] $ 18,102 $ :20,000 $ [1,898]
Interest 3,301 2,000 1,301 3,978 - 2,000 1,978
Total revenues 14,401 22,000 [7,599] 22,080 ~22,000 80
Expenditures
Cash Reserve 117,330 117,330 ---.J35,330 95,330
Total expenditures 117,330 117,330 ---.J35,330 95,330
Excess [deficiency] of revenues
over [under] expenditures 14,401 [95,330] 109,731 22,080 ['73,330] 95,410
Unreserved fund balance, January 1 95,410 95,330 80 73,330 --.-:r3,330
Unreserved fund balance, December 31 109,811 $ - $109,811 95,410 $ - $ 95,410
--
Reconciliation to GAAP
Interest receivable 1,855 1,154
GAAP Fund Balance, December 31 $ 111,666 $ 96,564
See independent auditor's report on the general purpose financial statements.
54
Schedule 6
6 of 10
CITY OF SALINA, KANSAS
SPECIAL PARKS AND RECREATION SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ACTUAL AND BUDGET
For the fiscal years ended December 31,2002 and 2001
2002 2001
Variance Variance
Positive Positive
Actual Budqet fNeqativel Actual Budqet fNeqative]
Revenues
Intergovernmental
Liquor Tax $122,584 $113,216 $ 9,368 $129,058 $ 11'1,000 $ 18,058
Other Revenues
Interest 3,892 5,000 [1,108] 4,936 !5,000 [64]
Miscellaneous 12,000 [12,000] -.:!.;2,000 [12,000]
Total other revenues 3,892 17,000 [13,108] 4,936 --~.J,OOO [12,064]
Total revenues 126,476 130,216 [3,740] 133,994 ~3,000 5,994
Expenditures
Capital Outlay
Capital outlay 196,193 100,000 [96,193] 98,793 100,000 1,207
Cash Reserve 164,328 164,328 ~4,112 134,112
Total expenditures 196,193 264,328 68,135 98,793 234,112 135,319
Excess [deficiency] of revenues
over [under] expenditures [69,717] [134,112] 64,395 35,201 [106,112] 141,313
Unreserved fund balance, January 1 141,314 134,112 7,202 106,113 -.-!Q6,112 1
Unreserved fund balance, December 31 71,597 $ - $ 71,597 141,314 $ - $141,314
--
Reconciliation to GAAP
Interest receivable 1,349 1,709
Current year encumbrances 7,830
GAAP Fund Balance, December 31 $ 80,776 $143,023
See independent auditor's report on the general purpose financial statements.
55
Schedule 6
7 of 10
CITY OF SALINA, KANSAS
SPECIAL ALCOHOL SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ACTUAL AND BUDGET
For the fiscal years ended December 31, 2002 and 2001
2002 2001
Variance Variance
Positive Positive
Actual Budqet rNeqative 1 Actual ßudqet rNeqativel
Revenues
Intergovernmental
Liquor tax $122,584 $113,216 $ 9,368 $129,059 $111,000 $ 18,059
Other Revenues
Interest 186 500 [314] 384 500 [116]
Total revenues 122,770 113,716 9,054 129,443 111,500 17,943
Expenditures
Public Health and Sanitation
Special alcohol 122,584 126,842 4,258 151,142 122,207 [28,935]
Cash Reserve 13,126 13,126
Total expenditures 122,584 126,842 4,258 151,142 135,333 [15,809]
Excess [deficiency] of revenues
over [under] expenditures 186 [13,126] 13,312 [21,699] ~'23,833] 2,134
Unreserved fund balance, January 1 2,134 13,126 [10,992] 23,833 23,833
Unreserved fund balance, December 31 2,320 $ - $ 2,320 2,134 $ - $ 2,134
Reconciliation to GAAP
Interest receivable 574 26
GAAP Fund Balance, December 31 $ 2,894 $ 2,160
See independent auditor's report on the general purpose financial statements.
56
Schedule 6
8 of 10
CITY OF SALINA, KANSAS
SPECIAL GAS TAX SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ACTUAL AND BUDGET
For the fiscal years ended December 31, 2002 and 2001
Revenues
Intergovernmental
Other Intergovernmental
Other Revenues
Interest
Miscellaneous
Total other revenues
Total revenues
Expenditures
Streets
Capital Outlay
Capital outlay
Cash Reserve
Total expenditures
Excess [deficiency] of revenues
over [under] expenditures
Unreserved fund balance, January 1
Prior year cancelled encumbrances
Residual equity transfers in [out]
Unreserved fund balance, December 31
Reconciliation to GAAP
Interest receivable
Taxes receivable
Retainage payable
Current year encumbrances
GAAP Fund Balance, December 31
Actual
2002
Budqet
Variance
Positive
rNeqativel
Actual
2001
Budqet
Variance
Positive
rNeqativel
$1,523,456 $1,550,000 $ [26,544] $1,516,836 $1,525,000 $
35,926
35,926
1,559,382
294,491
1,299,117
1,593,608
[34,226]
606,892
17,458
590,124 $
16,321
335,157
[11,751]
342,831
$1,272,682
50,000
50,000
1,600,000
339,645
1,340,000
248,738
1,928,383
[328,383]
328,383
[14,074]
[14,074]
[40,618]
45,154
40,883
248,738
334,775
294,157
278,509
17,458
- $590,124
49,083 ~75,000
25,900
--
74,983 __.?5,OOO
1,591,819 ~)O,OOO
430,521
1,203,994
322,145
1,500,000
~28,383
1,634,515 2,1!50,528
[42,696]
550,528
68,676
30,384
[5:50,528]
5~50,528
--
[8,164]
[25,917]
25,900
[17]
[8,181 ]
[108,376]
296,006
328,383
516,013
507,832
68,676
30,384
606,892 L--=. $ 606,892
11,438
369,906
328,099
$1,316,335
See independent auditor's report on the general purpose financial statements.
57
Schedule 6
9 of 10
CITY OF SALINA, KANSAS
BICENTENNIAL CENTER SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ACTUAL AND BUDGET
For the fiscal years ended December 31, 2002 and 2001
2002 .2001
Variance Variance
Positive Positive
Actual Budqet [Neqativel Actual 13udqet [Neqativel
Revenues
Fees and Charges
Merchandise sales $ 548,644 $ 588,000 $ [39,356] $ 524,741 $ 585,000 [60,259]
Rents and royalties 269,229 225,000 44,229 253,220 225,000 28,220
Total fees and charges 817,873 813,000 4,873 777,961 810,000 [32,039]
Other Revenues
Interest 7,660 16,000 [8,340] 18,352 16,000 2,352
Miscellaneous 367 367
Intemal charges 200,000 [200,000] 200,000 [200,000]
Total other revenues 8,027 216,000 [207,973] 18,352 216,000 [197,648]
Total revenues 825,900 1,029,000 [203,100] 796,313 1,026,000 [229,687]
Expenditures
Culture and Recreation
Bi-Centennial Center 1,362,408 1,333,398 [29,010] 1,304,628 1,295,285 [9,343]
Capital Outlay
Capital outlay 29,872 111,450 81,578 142,452 188,100 45,648
Cash Reserve 206,697 206,697 312,545 312,545
Total expenditures 1,392,280 1,651,545 259,265 1,447,080 1,795,930 348,850
Excess [deficiency] of revenues
over [under] expenditures [566,380] [622,545] 56,165 [650,767] [769,930] 119,163
Other financing sources [uses]
Operating transfer in 507,091 310,000 197,091 491,634 310,000 181,634
Total other financing sources [uses] 507,091 310,000 197,091 491,634 310,000 181,634
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses] [59,289] [312,545] 253,256 [159,133] [459,930] 300,797
Unreserved fund balance, January 1 318,939 312,545 6,394 478,072 412,939 65,133
Prior year cancelled encumbrances 1,530 1,530
Unreserved fund balance, December 31 261,180 $ - $ 261,180 318,939 $ [46,991] $ 365,930
Reconciliation to GAAP
Interest receivable 5,059 4,911
Accounts receivable 15,599 11,663
Current year encumbrances 2,660 42,510
Fund Balance, December 31 $ 284,498 $ 378,023
See independent auditor's report on the general purpose financial statements.
58
Schedule 6
10 of 10
CITY OF SALINA, KANSAS
FAIR HOUSING SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ACTUAL AND BUDGET
For the fiscal years ended December 31, 2002 and 2001
Actual
Revenues
Intergovernmental
Grants
2002
Budqet
Variance
Positive
fNeqativel
$208,853 $65,000 $143,853
Other Revenues
Interest
Total other revenues
6,355
6,355
Total revenues
215,208
Expenditures
Community Development
Human relations
70,859
Cash Reserve
Total expenditures
70,859
Excess [deficiency] of revenues
over [under] expenditures
144,349
Unreserved fund balance, January 1
105,045
Residual equity transfers in [out]
[26,362]
Unreserved fund balance, December 31
223,032 $
Reconciliation to GMP
Interest receivable
3,768
GMP Fund Balance, December 31
$ 226,800
2,631
2,631
67,631
81,000
65,683
146,683
[79,052]
79,052
3,724
3,724
147,577
10,141
65,683
75,824
223,401
25,993
[26,362]
- $223,032
Actual
2001
Budqet
Variance
Positive
fNeqativel
$ 84,846 $ 8!>,000 $
6,009 ~~,631
6,009 ~~,631
90,855 ~7,631
65,386
8",000
~3,052
[154]
3,378
3,378
3,224
15,614
79,052
65,386 .1§.!),052 ~~666
25,469 jZ;2,421]
79,576
7!3,576
- ---17,155]
97,890
7,155
105,045 L--=-=. $105,045
1,271
$106,316
See independent auditor's report on the general purpose financial statements.
59
CITY OF SALINA, KANSAS
BOND AND INTEREST DEBT SERVICE FUND
The debt service fund is used to account for the accumulation of resources and payment of general obligation bond
principal and interest from governmental resources and special assessment bond principal and interest from special
assessment levies when the City is obligated in some manner for the payment.
60
Schedule 7
ASSETS
Cash and investments
Receivables
Interest
Taxes
Cash with fiscal agent
Total assets
LIABILITIES AND FUND BALANCES
CITY OF SALINA, KANSAS
BOND AND INTEREST DEBT SERVICE FUND
COMPARATIVE BALANCE SHEETS
December 31, 2002 and 2001
Liabilities
Deferred revenue
Matured principal and interest payable
Total liabilities
Fund balances
Unreserved
Designated for debt service
Total fund balances
Total liabilities and fund balances
2002 2001
$ 983,414 $ 945,210
16,616 11 ,434
1,747,696 1,702,854
85,269 15,145
$ 2,832,995 $ 2,674,643
$ 1,747,696 $ 1,702,854
85,269 15,145
1,832,9~5
1,717,999
1,000,030 --,.-,_Q?_f?ß44
1,000,03,0 956,644
$ 2,832,995 $ 2,674,643
See independent auditor's report on the general purpose financial statements.
61
Schedule 8
CITY OF SALINA, KANSAS
BOND AND INTEREST DEBT SERVICE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
For the fiscal years ended December 31,2002 and 2001
Revenues
Taxes
Special assessments
Other revenues
2002 2001
$ 1,856,810 $ 1,715,833
1,288,961 1,320,324
116,261 111,475
3,262,032 3,147,632
Total revenues
Expenditures
Debt service
Principal
Interest and other charges
Residual equity transfers in
Residual equity transfers [out]
2,277,322 2,381,449
941,324 844,372
3,218,646 3,225,821
43,386 [78,189]
36,384
36,384
43,386 [41,805]
956,644 942,981
209,387
[153,919]
$ 1,000,030 $ 956,644
Total expenditures
Excess [deficiency] of revenues over [under] expenditures
Other financing sources [uses]
Operating transfers in
Total other financing sources [uses]
Excess [deficiency] of revenues and other sources over
[under] expenditures and other [uses]
Fund balances, January 1
Fund balances, December 31
See independent auditor's report on the general purpose financial statements.
62
Schedule 9
CITY OF SALINA, KANSAS
BOND AND INTEREST DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ACTUAL AND BUDGET
For the fiscal years ended December 31,2002 and 2001
2002 200'1
Variance Variance
Positive Positive
Actual Budqet rNeqativel Actual Budq.~ rNeqativel
Revenues
Taxes
Real estate taxes $ 1,654,301 $ 1,651,768 $ 2,533 $ 1,477,859 $ 1,472,322 $ 5,537
Delinquent taxes 28,614 40,000 [11,386] 30,403 40,000 [9,597]
Motor vehide taxes 173,896 198,832 [24,936] 207,571 218,165 [10,594J
Total taxes 1,856,811 1,890,600 [33,789] 1,715,833 1,730,487 [14,654]
Other Revenues
Special assessments 1,288,960 1,220,000 68,960 1,320,324 1,255,000 65,324
Interest 68,888 80,000 [11,112] 92,810 80,000 12,810
Other financing 42,191 42,191 7,231 7,231
Total other revenues 1,400,039 1,300,000 100,039 1,420,365 1,335,000 85,365
Total revenues 3,256,850 3,190,600 66,250 3,136,198 3,065,487 70,711
Expenditures
Debt Service
Principal 2,277,322 2,287,329 10,007 2,381,449 2,381,631 182
Interest and other charges 941,324 928,961 [12,363] 844,372 842,482 [1,890]
Cash Reserve 758,665 758,665 784,355 784,355
Total expenditures 3,218,646 3,974,955 756,309 3,225,821 4,008,468 782,647
Excess [deficiency] of revenues
over [under] expenditures 38,204 [784,355] 822,559 [89,623] [942,981] 853,358
Other financing sources [uses]
Operating transfer in 36,384 36,384
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses] 38,204 [784,355] 822,559 [53,239] [942,981] 889,742
Unreserved fund balance,
January 1 945,210 784,355 160,855 942,981 942,981
Residual equity transfers in 209,387 209,387
Residual equity transfers [out] [153,919] [153,919]
Unreserved fund balance,
December 31 983,414 $ - $ 983,414 945,210 $ - $ 945,210
Reconciliation to GAAP
Interest Receivable 16,616 11,434
GAAP Fund Balance, December 31 $ 1,000,030 $ 956,644
See independent auditor's report on the general purpose financial statements.
63
CITY OF SALINA, KANSAS
CAPITAL PROJECTS FUND
Capital project funds are used to account for the acquisition and construction of major capital facilities other than
those financed by proprietary funds and trust funds.
64
Schedule 10
ASSETS
Assets
Cash and investments
Interest receivable
Total assets
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
Retainage payable
Due to other funds
Total liabilities
Fund balances
Reserved for encumbrances
Unreserved
Undesignated
Total fund balances
Total liabilities and fund balances
CITY OF SALINA, KANSAS
CAPITAL PROJECTS FUND
COMPARATIVE BALANCE SHEETS
December 31, 2002 and 2001
2002 2001
$ 628,791 $
15,729 3,004
$ 644,521~ $ 3,004
$ - $ 276
149,873 43,355
735,805
149,873 779,436
1,733,872 1,595,590
[1 ,239,22~ ~372,022]
494,647 [Tl6,432J
$ 644,520 $ 3,004
See independent auditors report on the general purpose financial statements.
65
Schedule 11
CITY OF SALINA, KANSAS
CAPITAL PROJECTS FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
For the fiscal years ended December 31, 2002 and 2001
Revenues
Special assessments
Other revenues
2002 2001
$ 9,297 $ 49,690
40,085 40,308
49,382 89,998
Total revenues
Expenditures
Capital outlay
Contractual
Capital outlay
Debt service
Interest expense
Bond issuance costs
Residual equity transfers in
Residual equity transfers [out]
85,198 217,106
4,580,946 672,064
327,707
5,485 41 ,732
4,671,629 1,258,609
[4,622,2~ [1,168,611]
5,893,326 5,350,000
68,673
5,893,326 5,418,673
1,271,079 4,250,062
[776,432] [4,881,470]
[26,248]
[776,432] [4,907,718]
158,457
[277,233]
$ 494,647 $ [776,432]
Total expenditures
Excess [deficiency] of revenues over [under] expenditures
Other financing sources [uses]
Bond proceeds
Operating transfers in
Total other financing sources [uses]
Excess [deficiency] of revenues and other sources
over [under] expenditures and other [uses]
Fund balances, January 1
Prior period adjustment
Fund balances, Restated January 1
Fund balances, December 31
See independent auditor's report on the general purpose financial statements.
66
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CITY OF SALINA, KANSAS
ENTERPRISE FUNDS
Enterprise funds are used to account for operations that are financed and operated in a manner similar to private
business enterprises, where the intent of the governing body is that the costs of providing goods or services to the
general public on a continuing basis be financed or recovered primarily through user charges; or where the
governing body has decided that periodic determination of net income is appropriate for accountability purposes.
Sanitation fund - To account for the operations of the City's refuse collection service.
Solid waste fund - To account for the activities of the City's landfill.
Golf course fund - To account for the operations of the municipal golf course.
Water and sewer fund - To account for the activities of the City's water and sewer operations.
67
Schedule 12
CITY OF SALINA
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
December 31,2002
(With comparative totals for December 31, 2001)
ASSETS
Cash and investments
Accounts receivable
Interest receivable
Inventory and prepaid supplies
Restricted cash and investments
Fixed assets
Land
Land improvements
Water plant and equipment
Sewerage plant and equipment
Equipment
Vehicles
Buildings
Construction in progress
Accumulated depreciation
Deferred charges
Total assets
Solid Waste Golf Course
Sanitation Disposa!! Division
$ 495,932 $ 2,500,061 $ 183,610
95,106 156,725
8,379 42,238 3,097
19,281
18,000 120,000 15,000
6,227,862 1,080,613
126,886 958,755 776,474
639,656 945,304 50,062
354,581 225,231
19,239
[356,003] [4,225,¿:32] [1,028,729]
5,651
$ 1,027,956 $ 7,105,184 $ 1
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
Retainage payable
Accrued compensated absences
Meter deposits payable
Payable from restricted assets
Accrued interest payable
Revenue bonds payable - current
Loans payable - current
General obligation bonds payable - current
Temporary notes payable - current
Capital leases payable - current
Loans payable
General obligation bonds payable
Revenue bonds payable
Landfill closure and postclosure
Total liabilities
$ 9,912 $ 123,818 $ 11,581
2,138
122,873 2,422 53,625
6,~i56 1,591
235,859 21,526
Fund balances
Contributed capital
Retained eamings
Reserved for bond retirement
Reserved for postclosure care costs
Unreserved
Total fund balances
144,B46 60,000
1,164,833
132,785 1,680,:~72 148,323
74,579 113,Eì72 229,950
336,423
820,592 4,974,717 946,366
895,171 5,424,812 ~L~!_),316
$ 1,027,956 $ 7,105,184 $ 1,324,639
Total liabilities and fund balances
Total
Water and
Sewer 2002 2001
$ 9,196,879 $ 12,376,482 $ 11,292,180
615,946 867,777 959,026
173,849 227,563 174,729
433,155 452,436 467,494
1,099,224 1,099,224 3,151,913
361,050 514,050 514,050
7,308,475 7,308,475
42,090,806 42,090,806 41,922,811
40,671,942 40,671,942 40,374,074
437,923 2,300,038 2,358,949
1,635,022 1,654,456
579,812 579,812
5,235,948 5,255,187 3,004,037
[37,191,308] [42,801,272] [40,302,138]
427,085 432,736 408,162
$ 63,552,499 $ 73,010,278 $ 73,868,030
$ 253,824 $ 399,135 $ 250,350
220,770 222,908 182,506
401,711 580,631 524,761
99,113 99,113 94,360
216,673 224,620 327,255
575,000 575,000 885,000
211,427 211,427 124,415
782,135 1,039,520 805,835
935,000
33,354
7,362,829 7,362,829 5,394,514
5,943,287 6,148,233 4,252,754
6,215,000 6,215,000 12,100,000
1,164,833 1,067,866
22,281,769 24,243,249 26,977,970
9,433,302 9,851,503 8,812,334
1,114,957 1,114,957 1,426,441
336,423 283,720
30,722,471 37,464,146 36,367,565
41,270,730 48,767,029 46,890,060
$ 63,552,499 $ 73,010,278 $ 73,868,030
See independent auditor's report on the general purpose financial statements.
68
Schedule 12
Schedule 13
CITY OF SALINA, KANSAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS
For the fiscal year ended December 31, 2002
(With comparative totals for the fiscal year ended December 31, 2001)
Sanitation
Solid Waste
Disposal
Golf Course
Division
Operating revenues
Charges for services
Reimbursements
Miscellaneous
Total operating revenues
$ 1,637,689 $ 2,171,102 $
500 500
91 38,629
1,638,280 2,210,231
836,450
475
30,183
867,108
Operating expenses
Public works
Recreation
Depreciation
Total operating expenses
1,586,755 1,292,133
771,815
67,558 757,019 61,099
1,654,313 2,049,152 832,914
[16,033] 161,079 19,1
-..
Operating income [loss]
Nonoperating revenues [expenses]
Use of money and property
Debt service
Gain [loss] on disposition of fixed assets
Total nonoperating revenues [expenses]
20,208 90,861 7,604
[25,2::;9] [4,539J
[3,OC~
20,208 62,622 3,065
4,175 223,701 --- 37,259
Income [loss] before operating transfers
Operating transfers
Transfers in
Transfers [out]
Total operating transfers
Net income [loss]
4,175
223,7011
37,259
Retained earnings, January 1
816,417
5,087,4:3,9
909,107
Prior period adjustment
Retained earnings, restated January 1
816,417
5,087,4:3,9
909,107
Residual equity transfer in
Residual equity transfer out
.... w..----
Retained earnings, December 31
$
820,592 $ 5,311,140 $
946,366
Total
Water and
Sewer 2002 2001
$ 12,564,631 $ 17,209,872 $ 16,094,858
776,291 777,766 379,393
94,734 163,637 120,038
13,435,656 18,151,275 16,594,289
9,167,908 12,046,796 11,398,244
771,815 693,198
2,460,471 3,346,147 3,348,739
11,628,379 16,164,758 15,440,181
1,807,277 1,986,517 1,154,108
325,583 444,256 847,592
[952,299] [982,077] [1,271,759]
[130,705] [133,705] [153,889]
[757,421] [671,526] [578,056]
1,049,856 1,314,991 576,052
2,564,181 2,564,181 2,087,849
[2,626,681] [2,626,681] [2,107,907]
[62,500] [62,500] [20,058]
987,356 1,252,491 555,994
31,264,763 38,077,726 36,878,121
[396,211] [396,211] 643,611
30,868,552 37,681,515 37,521,732
3,663,545 3,663,545
[3,682,025] [3,682,025]
$ 31,837,428 $ 38,915,526 $ 38,077,726
See independent auditor's report on the general purpose financial statements.
69
Schedule 13
Schedule 14
1 of 2
CITY OF SALINA, KANSAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
For the fiscal year ended December 31, 2002
(With comparative totals for the fiscal year ended December 31, 2001)
Cash flows from capital and related financing activities
Purchase and construction of fixed assets
Contributed capital
Proceeds from issuance of debt
Costs from issuance of debt
Principal payments - temporary notes
Principal payments - general obligation bonds
Principal payments - revenue bonds
Principal payments - capital leases
Interest paid
Principal payments - loans payable
Net cash used in capital and related financing activities
Solid Waste Golf Course
Sanitation Disposal Division
$ 1,643,032 $ 2,199,629 $ 836,925
41,3£14
[759,789] [442,7ï'9] [375,608]
[722,329] [670,144] [352,224]
[91,873] [130,2~j3] [30,000]
91 38,629 30,183
69,132 1,036,476 109,276
[121,370] [121,9Eì2] [26,244]
29,326 388
Cash flows from operating activities
Cash received from customers and users
Cash received for quasi-external transactions
Cash paid to employees for services
Cash paid to other suppliers of goods or services
Cash paid for quasi-external transactions
Other operating receipts
Net cash provided by [used in] operating activities
[237,400] [21,488]
[33,354]
[28,4~)0] [4,1304]
[92,044] [387,8'~ [85,592]
17,889 70,1 ï'O 6,366
Cash flows from investing activities
Interest received
Cash flows from noncapital financing activities
Residual equity transfer in
Residual equity transfer out
Operating transfer in
Operating transfer [out]
Net cash provided by [used in] noncapital financing activities
Net increase [decrease] in cash and cash equivalents
[5,023] 718,8~~4 30,050
500,955 1,781,227 153,560
$ 495,932 $ 2,500,061 $ 183,610
$ 495,932 $ 2,500,OE>1 $ 183,610
$ 495,932 $ 2,500,061 $ 183,610
Cash and cash equivalents, January 1
Cash and cash equivalents, December 31
Cash and investments
Restricted cash and investments
Total cash and cash equivalents
Total
Water and
Sewer 2002 2001
$ 13,357,907 $ 18,037,493 $ 16,395,922
41,394
[3,200,447] [4,778,623] [4,204,040]
[5,172,102] [6,916,799] [7,046,267]
[509,225] [761,351] [634,328]
94,734 163,637 317,701
4,570,867 5,785,751 4,828,988
[3,625,753] [3,895,329] [4,812,394]
1,009,155 1,038,869 1,830
3,887,353 3,887,353 4,142,937
[94,011] [94,011]
[935,000] [935,000] [1,400,000]
[688,720] [947,608] [818,551]
[4,882,400] [4,882,400] [835,000]
[33,354] [31,646]
[1,051,368] [1,084,712] [1,140,396]
[124,415] [124,415] [119,328]
[6,505,159] [7,070,607] [5,012,548]
303,024 397,449 672,854
3,663,545 3,663,545
[3,682,025] [3,682,025]
2,564,181 2,564,181 2,087,849
[2,626,681] [2,626,681] [2,107,907]
[80,980] [80,980] [20,058]
[1,712,248] [968,387] 469,236
12,008,351 14,444,093 13,974,857
$ 10,296,103 $ 13,475,706 $ 14,444,093
$ 9,196,879 $ 12,376,482 $ 11,292,180
1,099,224 1,099,224 3,151,913
$ 10,296,103 $ 13,475,706 $ 14,444,093
See independent auditor's report on the general purpose financial statements.
70
Schedule 14
10f2
Schedule 14
2 of2
CITY OF SALINA, KANSAS
COMBINING STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES, SIMILAR TRUST FUNDS AND
DISCRETELY PRESENTED COMPONENT UNITS
For the fiscal year ended December 31, 2002
(With comparative totals for the fiscal year ended December 31,2001)
Sanitation
Solid Waste
Disposal
Golf Course
Division
Reconciliation of operating [loss] income to net cash
provided by [used in] operating activities
Operating income [loss]
$
[16,033] $
161,07!3 $
34,194
Adjustments to reconcile operating income [loss] to
net cash provided by [used in] operating activities
Depreciation expense
[Increase] decrease in accounts receivable
[Increase] decrease in inventory
Increase [decrease] in accounts payable
Increase [decrease] in retainage payable
Increase [decrease] in accrued compensated absences
Increase [decrease] in meter deposits payable
Increase [decrease] in accrued landfill closure
and postclosure care costs
Net cash provided by [used in] operating activities
67,558 757,01!3 61,099
4,843 69,421
2,583
4,299 [11,1510] 5,274
2,1313
8,465 [38,998] 6"126
96,96'7
$ 69,132 $ 1,O36,471~ $ -~ 109,2/6
Total
Water and
Sewer
2002
2001
$ 1,807,277 $ 1,986,517 $ 1,154,108
2,460,471 3,346,147 3,348,739
16,985 91,249 119,335
12,475 15,058 44,428
150,363 148,786 8,487
38,265 40,403 80,743
80,277 55,870 46,672
4,754 4,754 2,354
96,967 24,122
$ 4,570,867 $ 5,785,751 $ 4,828,988
See independent auditor's report on the general purpose financial statements.
71
Schedule 14
2 of2
Schedule 15
1 of 4
CITY OF SALINA, KANSAS
SANITATION ENTERPRISE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - ACTUAL AND BUDGET
For the fiscal years ended December 31, 2002 and 2001
2002 2001
Variance Variance
Positive Positive
Actual BudQet fNeqativel Actual BudQet fNeQativel
Revenues
Fees and Charges
Charges for services $1,639,151 $ 1,645,000 $ [5,849] $1,616,874 $1,700,000 $ [83,126J
Other Revenues
Interest 17,889 20,000 [2,111] 24,284 .25,000 [716]
Miscellaneous 591 10,000 [9,409] 41 _10,000 [9,959]
Total other revenues 18,480 30,000 [11,520] 24,325 _35,000 [10,675]
Total revenues 1,657,631 1,675,000 [17,369] 1,641,199 ---1235,000 [93,801]
Expenditures
Public Health and Sanitation
Sanitation 1,555,539 1,552,839 [2,700] 1,474,993 1,480,122 5,129
Capital Outlay
Capital outlay 111,414 124,800 13,386 128,849 136,300 7,451
Cash Reserve 510,924 510,924 --,- -_.-2}.;?,~?3 ~13,§..6.3
Total expenditures 1,666,953 2,188,563 521,610 1,603,842 -.b129,985 526,143
Excess [deficiency] of revenues
over [under] expenditures [9,322] [513,563] 504,241 37,357 [394,985] 432,342
Unreserved fund balance, January 1 495,342 513,563 [18,221] 449,985 406,859 43,126
Prior year encumbrances 8,000 -- 8,000
Unreserved fund balances, December 31 $ 486,020 $ - $486,020 $ 495,342 L11,874 $ 483,468
See independent auditor's report on the general purpose financial statements.
72
CITY OF SALINA, KANSAS
SOLID WASTE DISPOSAL ENTERPRISE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - ACTUAL AND BUDGET
For the fiscal years ended December 31,2002 and 2001
Actual
Revenues
Fees and Charges
Charges for services
2002
BudQet
Variance
Positive
INeQativel
$2,199,129 $2,000,000 $ 199,129
Other Revenues
Interest
Miscellaneous
Total other revenues
61,060
39,129
100,189
Total revenues
2,299,318
Expenditures
Public Health and Sanitation
Solid waste
Hazardous waste disposal
Total public health and sanitation
1,304,590
69,781
1,374,371
Debt Service
Principal
Interest
Total debt service
237,412
28,438
265,850
Capital Outlay
Capital outlay
168,805
Cash Reserve
Total expenditures
1,809,026
Excess [deficiency] of revenues
over [under] expenditures
490,292
Unreserved fund balances, January 1
1,308,029
Prior year encumbrances
55,110
Unreserved fund balances, December 31 $1,853,431 $
50,000
20,000
70,000
2,070,000
1,233,831
81,363
1,315,194
241,816
28,437
270,253
343,000
1,385,731
3,314,178
[1,244,178]
1,244,178
11,060
19,129
30,189
229,318
[70,759]
11,582
[59,177]
4,404
[1]
4,403
174,195
1,385,731
1,505,152
1,734,470
63,851
55,110
- $1,853,431
2001
Actual
BudQet
$2,045,460 $2,000,000 $
82,154 70,000
24,356 - 20,000
106,510 ~90,000
2,151,970 2,090,000
1,192,682 1,238,710
74,436 __..:83,356
1,267,118 ---.!d22,066
741,829 741,816
58,090 -----.:58,088
799,919 ---2:99,904
269,732
486,000
---.J.:.32 , 877
2,336,769 3,3'70,847
[184,799] [1,280,847]
1,465,479
1,280,847
27,349
--
Schedule 15
2 of4
Variance
Positive
INeQativel
45,460
12,154
4,356
16,510
61,970
46,028
8,920
54,948
[13]
[2]
[15]
216,268
762,877
1,034,078
1,096,048
184,632
27,349
$1,308,029 L-====. $1,308,029
See independent auditor's report on the general purpose financial statements.
73
Schedule 15
3 of4
Revenues
Taxes
General sales tax
Fees and Charges
Recreational fees
Merchandise sales
Rents and royalties
Total fees and charges
Other Revenues
Interest
Reimbursements
Miscellaneous
Total other revenues
Total revenues
Expenditures
Culture and Recreation
Golf course
Debt Service
Principal
Interest
Total debt service
Capital Outlay
Capital outlay
Cash Reserve
Total expenditures
CITY OF SALINA, KANSAS
GOLF COURSE DIVISION ENTERPRISE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - ACTUAL AND BUDGET
For the fiscal years ended December 31, 2002 and 2001
Actual
2002
Budqet
Variance
Positive
fNeqativel
2001
Actual
Budqet
Variance
Positive
fNeqativel
$ 26,731 $ 27,000 $
(269] $ 25,117 L1!3,OOO $
[883]
639,102
170,618
809,720
5,129
475
30,183
35,787
872,238
797,469
21,546
4,894
26,440
24,790
848,699
Excess [deficiency] of revenues
over [under] expenditures
23,539
109,326
Unreserved fund balances, January 1
681,500
189,000
5,000
875,500
3,000
200
6,000
9,200
911,700
830,195
21,526
4,889
26,415
115,796
972,406
[60,706]
60,706
Unreserved fund balances, December 31 $132,865 $
[42,398]
[18,382]
[5,000]
[65,780]
2,129
275
24,183
26,587
[39,462]
32,726
[20]
[5]
[25]
[24,790]
115,796
123,707
84,245
48,620
- $132,865
605,346 680,200
168,793 203,000
4,910 ----.:5,000
779,049 ~B,200
[74,854]
[34,207]
[90]
[109,151]
7,201 8,000 [799]
200 [200]
11,648 _3,000 w<~B,64§
18,849 --11,200 7,649
823,015 ~5,400
676,691 ~5,732
21,722 21,703
5,838 - 5,833
27,560 27,536
52,755
67,289
~1,686
757,006 1,002,243
66,009
[7'6,843]
43,317 -16,843
[102,385]
149,041
[19]
[5]
[24]
14,534
81,686
245,237
142,852
$109,326 L-==. $109,326
(33,526]
See independent auditor's report on the general purpose financial statements.
74
Schedule 15
4 of4
CITY OF SALINA, KANSAS
WATER AND SEWER ENTERPRISE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - ACTUAL AND BUDGET
For the fiscal years ended December 31,2002 and 2001
2002 2001
Variance Variance
Positive Positive
Actual Budqet fNeqative 1 Actual f!JJdqet fNeqativel
Revenues
Fees and Charges
Charges for services $12,380,117 $11,717,650 $ 662,467 $11,614,323 $11,030,000 $ 584,323
Other Revenues
Interest 222,210 275,000 [52,790] 309,676 275,000 34,676
Reimbursements 241,112 241,112 107,213 107,213
Miscellaneous 217,002 218,000 [998] 198,471 218,000 [19,529]
Total other revenues 680,324 493,000 187,324 615,360 493,000 122,360
Total revenues 13,060,441 12,210,650 849,791 12,229,683 11,523,000 706,683
Expenditures
Water and Wastewater
Water 6,125,466 8,587,182 2,461,716 5,741,060 5,842,180 101,120
Sewer 2,329,749 2,268,476 [61,273] 2,396,923 2,127,454 [269,469]
Total water and wastewater 8,455,215 10,855,658 2,400,443 8,137,983 7,969,634 [168,349]
Debt Service
Interest and other 1,000 1,000 920 1,000 80
Capital Outlay
Capital outlay 1,452,848 2,128,400 675,552 1,591,315 1,705,300 113,985
Cash Reserve 4,306,640 4,306,640 3,804,990 3,804,990
Total expenditures 9,908,063 17,291,698 7,383,635 9,730,218 13,480,924 3,750,706
Excess [deficiency] of revenues
over [under] expenditures 3,152,378 [5,081,048] 8,233,426 2,499,465 ~957,924] 4,457,389
Other financing sources [uses]
Operating transfers [out] [2,626,681] [2,596,993] [29,688] [2,107,907] [2,175,980] 68,073
Sale of assets 7 7 117 117
Total other financing sources [uses] [2,626,674] [2,596,993] [29,681] [2,107,790] ~ 175,980] 68,190
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses] 525,704 [7,678,041] 8,203,745 391,675 [4,133,904] 4,525,579
Unreserved fund balances, January 1 5,739,483 7,678,041 [1,938,558] 5,230,194 4,133,904 1,096,290
Prior year cancelled encumbrances 20,524 20,524 117,614 117,614
Unreserved fund balances, December 31 $ 6,285,711 $ - $ 6,285,711 $ 5,739,483 $ - $5,739,483
See independent auditor's report on the general purpose financial statements.
75
This page intentionally left blank
CITY OF SALINA, KANSAS
INTERNAL SERVICE FUNDS
Internal service funds are used to account for the financing of goods or services provided by one agency to other
departments or agencies of the government and to other governmental units on a cost reimbursement basis.
Risk management fund - To account for the accumulation and allocation of costs associated with risk management
activities and the purchase of various forms of insurance.
Workers' compensation reserve fund - To account for the costs of providing a partially self-insured workers'
compensation plan and for accumulating the necessary reserve amounts.
Health insurance fund - To account for the costs of providing a partially self-insured health insurance and for
accumulating the necessary reserve amounts.
Central garage fund - To account for the accumulation and allocation for costs associated with tl'1e City's centralized
vehicle repair shop.
Information services fund - To account for the accumulation and allocation of costs associated with electronic data
processing.
76
Schedule 16
CITY OF SALINA, KANSAS
INTERNAL SERVICE FUNDS
COMBINING BALANCE SHEET
December 31,2002
(With comparative totals for December 31,2001)
ASSETS
Workers'
Risk Compensation
Management Reserve
Health
Insurance
Cash and investments
Interest receivable
Inventory
Fixed assets
Equipment
Vehicles
Buildings
Accumulated depreciation
$
215,916 $
3,648
848,771 $
14,341
422,117
7,132
Total assets
$
219,564 $
863,1t~ $
429,249
LIABILITIES AND EQUITY
Liabilities
Accounts payable
Accrued compensated absences
Accrued claims payable
Capital leases payable - current
$ 3,593 $ - $ 26,086
144,964 447,25:;
3,593 144,964 473,339
T otalliabilities
Equity
Contributed capital
Retained earnings
Unreserved
215,971 718,148 [44,090]
215,971 718,148 [44,090]
$ 219,564 $ 863, 11~ $ 429,249
Total equity
Total liabilities and equity
Total
Central Information
Garage Services 2002 2001
$ 273,894 $ 742,212 $ 2,502,910 $ 2,988,183
4,628 12,540 42,289 36,147
62,536 62,536 40,339
161,728 1,353,927 1,515,655 1,477,633
13,911 13,911 13,911
22,072 22,072 22,072
[133,045] [1,153,699] [1,286,744] [1,200,965]
$ 405,724 $ 954,980 $ 2,872,629 $ 3,377,320
$ 64,740 $ 8,151 $ 102,570 $ 70,119
13,774 24,252 38,026 43,802
592,217 443,506
98,743
78,514 32,403 732,813 656,170
17,407 626,858 644,265 643,469
309,803 295,719 1,495,551 2,077,681
327,210 922,577 2,139,816 2,721,150
$ 405,724 $ 954,980 $ 2,872,629 $ 3,377,320
See independent auditor's report on the general purpose financial statements.
77
Schedule 16
Schedule 17
CITY OF SALINA, KANSAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
For the fiscal year ended December 31, 2002
(With comparative totals for the fiscal year ended December 31, 2001)
Nonoperating revenues [expenses]
Use of money and property
Interest on lease obligations
Total nonoperating revenues [expenses]
Workers'
Risk Compensation Health
Management Reserve Insurance
$ 189,472 $ - $ 3,538,084
75,311 517
3,304
264,783 517 3,541,388
247,721 155,377 4,529,029
247,721 155,377 4,529,029
17,062 [154,86QJ
6,735 31,509 22,933
---~-,--- -->
6,735 31,509 22,933
Operating revenues
Charges for services
Reimbursements
Miscellaneous
Total operating revenues
Operating expenses
General government
Depreciation
Total operating expenses
Operating income [loss]
Other financing sources [uses]
Operating transfer in
Net income [loss]
23,797
(123,3~~
[964,708]
Retained earnings, January 1
192,174
841,499
920,618
Prior period adjustment
Retained earnings, Restated January 1
192,174
841 ,499
920,618
Retained earnings, December 31
$
215,971 $
718,148 $
(44,090]
Total
Central Information
Garage Services 2002 2001
$ 946,549 $ 1,081,255 $ 5,755,360 $ 5,636,422
4,743 170,894 251 ,465 171,587
377 3,681 7,731
951,292 1,252,526 6,010,506 5,815,740
993,906 820,577 6,746,610 5,340,032
9,278 76,576 85,854 95,221
1,003,184 897,153 6,832,464 5,435,253
[51,892] 355,373 [821,958] 380,487
6,964 23,814 91,955 160,287
[4,987] [4,987] [9,733]
6,964 18,827 86,968 150,554
125,000 125,000 62,500
80,072 374,200 [609,990] 593,541
201,871 [78,481] 2,077,681 1,775,727
27,860 27,860 [291,587]
229,731 [78,481] 2,105,541 1,484,140
$ 309,803 $ 295,719 $ 1,495,551 $ 2,077,681
See independent auditor's report on the general purpose financial statements.
78
Schedule 17
Schedule 18
1 of 2
CITY OF SALINA, KANSAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
For the fiscal year ended December 31, 2002
(With comparative totals for the fiscal year ended December 31, 2001)
Cash flows from operating activities
Cash received from customers and users
Cash received from quasi-external transactions
Cash paid to employees for services
Cash paid to other suppliers of goods or services
Cash paid for quasi-external transactions
Other operating receipts
Net cash provided by [used in] operating activities
Workers'
Risk Compensation Health
Management Reserve Insurance
$ 75,311 $ 5H $ 3,538,084
189,472
[248,018] [186,281] [4,352,502]
3,304
16,765 [185,76.Ð [811,114]
Cash flows from capital and related financing activities
Purchase of fixed assets
Contributed capital
Principal payments on lease obligations
Interest on lease obligations
Net cash [used in] capital and related financing activities
Cash flows from investing activities
Interest received
5,430
29,32;3
30,352
Cash flows from noncapital financing activities
Operating transfers in
Net increase [decrease] in cash and cash equivalents
22,195 [156,436] [780,762]
193,721 1,005,207 1,202,879
$ 215,916 $ 848,771 $ 422,117
Cash and cash equivalents, January 1
Cash and cash equivalents, December 31
Total
Central Information
Garage Services 2002 2001
$ 951,292 $ 1,252,149 $ 5,817,353 $ 5,614,039
189,472 201,691
[237,614] [353,969] [591,583] [589,827]
[749,467] [416,323] [5,952,591] [4,908,153]
[3,323] [45,924] [49,247] [37,919]
377 3,681 10
[39,112] 436,310 [582,915] 279,841
[6,911] [3,326] [10,237] [19,946]
796 796
[98,743] [98,743] [93,996]
[4,987] [4,987] [9,733]
[6,115] [107,056] [113,171] [123,675]
4,628 16,075 85,813 124,141
125,000 125,000 62,500
84,401 345,329 [485,273] 342,807
189,493 396,883 2,988,183 2,645,376
$ 273,894 $ 742,212 $ 2,502,910 $ 2,988,183
See independent auditor's report on the general purpose financial statements.
79
Schedule 18
1 of 2
Schedule 18
2 of2
CITY OF SALINA, KANSAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
For the fiscal year ended December 31, 2002
(With comparative totals for the fiscal year ended December 31, 2001)
Workers'
Risk Compensation
Management Reserve
Reconciliation of operating [loss] income to net cash
provided by [used in] operating activities
Operating income [loss]
$
17,062 $
[154,860] $
Adjustments to reconcile operating income [loss] to
net cash provided by [used in] operating activities
Depreciation expense
[Increase] decrease in inventory
Increase [decrease] in accounts payable
Increase [decrease] in accrued compensated absences
Increase [decrease] in claims payable
[297]
[3,808]
- _,_1212Qg§]
Net cash provided by [used in] operating activities
$
16,765 $
[185,7E~ $
Health
Insurance
[987,641]
720
171),307
[811,114]
Total
Central
Garage
Information
Services
2002
2001
$
[51,892] $
355,373 $
[821,958] $
380,487
9,278 76,576 85,854 95,221
[22,197] [22,197] 7,124
29,647 6,189 32,451 [7,092]
[3,948] [1,828] [5,776] 887
148,711 [196,786]
$ [39,112] $ 436,310 $ [582,915] $ 279,841
See independent auditor's report on the general purpose financial statements.
80
Schedule 18
2 of2
Schedule 19
1 of 5
CITY OF SALINA, KANSAS
RISK MANAGEMENT INTERNAL SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - ACTUAL AND BUDGET
For the fiscal year ended December 31,2002 and 2001
2002 2001
Variance Variance
Positive Positive
Actual Budqet rNeqativel Actual Budqet rNeqativel
Revenues
Other Revenues
Interest $ 5,430 $ 10,000 $ [4,570] $ 9,250 $ 10,000 $ [750]
Reimbursements 75,311 30,000 45,311 64,808 30,000 34,808
I nternal charges 189,472 190,000 [528] 201,691 20!5,115 [3,424]
Total revenues 270,213 230,000 40,213 275,749 24!5,115 30,634
Expenditures
Other
Risk management 266,471 266,101 [370] 289,928 29'1,101 1,173
Capital Outlay
Capital outlay 150 1,500 1,350 1,447 '1,500 53
Cash Reserve 120,369 120,369 15J,970 157,979
Total expenditures 266,621 387,970 121,349 291,375 450,571 '159, 'I 96
Excess [deficiency] of revenues
over [under] expenditures 3,592 [157,970] 161,562 [15,626] [205,456] _189,830
Fund balance, January 1 189,831 157,970 31,861 205,457 205,456 1
Unreserved fund balance, December 31 $193,423 $ - $193,423 $189,831 $ - $189,831
--
See independent auditor's report on the general purpose financial statements.
81
Schedule 19
2 of 5
CITY OF SALINA, KANSAS
WORKERS' COMPENSATION RESERVE INTERNAL SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - ACTUAL AND BUDGET
For the fiscal year ended December 31,2002 and 2001
2002 2001
Variance Variance
Positive Positive
Actual Budqet rNeqativel Actual !2.udqet rNeqativel
Revenues
Other Revenues
Interest $ 29,328 $ 57,710 $ [28,382] $ 52,857 $ 50,000 $ 2,857
Internal charges 517 162,290 161,773
Total revenues 29,845 220,000 133,391 52,857 50,000 2,857
Expenditures
Other
Worker's compensation 182,474 495,000 312,526 203,220 !;11,000 307,780
Cash Reserve 605,776 605,776 !;61,776 561,776
Total expenditures 182,474 1,100,776 918,302 203,220 1,072,776 869,556
Excess [deficiency] of revenues
over [under] expenditures [152,629] [880,776] 728,147 [150,363] lli)22,776] 872,413
Unreserved fund balance, January 1 872,413 880,776 [8,363] 1,022,776 1,022,776
Unreserved fund balance, December 31 $719,784 $ - $719,784 $ 872,413 $ - $ 872,413
See independent auditor's report on the general purpose financial statements,
82
Schedule 19
3 of 5
CITY OF SALINA, KANSAS
CENTRAL GARAGE INTERNAL SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - ACTUAL AND BUDGET
For the fiscal year ended December 31, 2002 and 2001
Revenues
Other Revenues
Interest
Reimbursements
Miscellaneous
Internal charges
Total revenues
Expenditures
Other
Central garage
Capital Outlay
Capital outlay
Cash Reserve
Total expenditures
Excess [deficiency] of revenues
over [under] expenditures
Other financing sources [uses]
Operating transfers in
Excess [deficiency] of revenues
and other financing sources over [under]
expenditures and other financing [uses]
Unreserved fund balance, January 1
Unreserved fund balance, December 31
Actual
$
4,628 $
4,743
2002
Budqet
- $
2,998
853,000
855,998
950,759
4,150
137,527
1,092,436
[236,438]
125,000
[111,438]
111,438
Variance
Positive
fNeqativel
4,628
1,745
93,549
99,922
[67,320]
[3,937]
137,527
66,270
166,192
166,192
42,961
- $209,153
Actual
2001
Budqet
Variance
Positive
fNeqativel
$ 4,218 $ 2,500 $ 1,718
4,729 2,998 1,731
10 10
864,254 ~8,100 56,154
873,211 ~3,598
861,709
1,854
906,711
2,700
59,613
45,002
846
--111 ,438 ..J~J.,1_~~-
863,563 1,020,849
9,648
[207,251]
62,500 ~5,OOO
72,148
[e2,251]
82,251 ~,2,251
'157,286
216,899
[62,500]
154,399
154,399 L==-=. $ 154,399
See independent auditor's report on the general purpose financial statements.
946,549
955,920
1,018,079
8,087
1,026,166
[70,246]
125,000
54,754
154,399
$ 209,153 $
83
Schedule 19
4 of5
CITY OF SALINA, KANSAS
INFORMATION SERVICES INTERNAL SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - ACTUAL AND BUDGET
For the fiscal year ended December 31,2002 and 2001
2002 ~~001
Variance Variance
Positive Positive
Actual BudQet fNeQativel Actual ,êudQet fNeQativel
Revenues
Fees and Charges
Charges for services $ 381,191 $ 232,225 $148,966 $ 302,200 $ ~i02,199 $ 1
Other Revenues
Interest 16,074 12,000 4,074 8,729 12,000 [3,271]
Reimbursements 170,894 170,894 87,481 87,481
Miscellaneous 377
Internal charges 697,803 698,642 [839] 698,642 611,161 87,481
Total other revenues 885,148 710,642 174,129 794,852 ,'10,642 84,210
Total revenues 1,266,339 942,867 323,095 1,097,052 1,012,841 84,211
Expenditures
Other
Information services 642,761 751,096 108,335 703,733 679,792 [23,941]
Capital Outlay
Capital outlay 281,395 253,000 [28,395] 228,022 253,000 24,978
Cash Reserve 247,534 247,534 ~106,513 306,513
Total expenditures 924,156 1,251,630 327,474 931,755 1 ,~~39,305 307,550
Excess [deficiency] of revenues
over [under] expenditures 342,183 [308,763] 650,946 165,297 [226,464] 391,761
Other Financing Sources [Uses]
Sale of Assets 2,262 2,250 12 2,250 [2,250]
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses] 344,445 [306,513] 650,958 165,297 [~!24,214] 389,511
Unreserved fund balance, January 1 389,512 306,513 82,999 224,215 224,214
Prior Year Cancelled Encumbrances 105 105
Unreserved fund balance, December 31 $ 734,062 $ - $ 734,062 $ 389,512 $ - $ 389,512
See independent auditor's report on the general purpose financial statements.
84
Schedule 19
5 of 5
CITY OF SALINA, KANSAS
HEALTH INSURANCE INTERNAL SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - ACTUAL AND BUDGET
For the fiscal year ended December 31,2002 and 2001
2002
2001
Actual
Budqet
Variance
Positive
rNeqativel
Actual
Revenues
Other Revenues
Interest
Reimbursements
Miscellaneous
Bud(~
Variance
Positive
rNeqativel
$ 30,352 $ 25,000 $ 5,352 $ 49,087 $ 40,000 $
14,569
3,541,389 3,557,000 [15,611] 3,577,356 3,557,000
9,087
14,569
20,356
Total revenues
3,571,741
3,582,000
[10,259]
3,641,012 3,597,000
Expenditures
Other
Health insurance
4,353,221
3,512,500
[840,721]
3,367,982
Cash Reserve
1,001,481
1,001,481
3,569,500
~,981
44,012
201,518
931,981
Total expenditures
4,353,221
4,513,981
160,760
3,367,982 4,501,48. .._.~-'-~. ..,..~..~:'-
Excess [deficiency] of revenues
over [under] expenditures
[781,480]
[931,981]
150,501
273,030
904,481 904,481
[904,481]
Unreserved fund balance, January 1
1,177,511
931,981
245,530
1,177 51'
Unreserved fund balance, December 31 $ 396,031
$
- $ 396,031
$1,177,511 !..-===. $1,177,511
See independent auditor's report on the general purpose financial statements.
85
CITY OF SALINA, KANSAS
TRUST AND AGENCY FUNDS
Trust funds are used to account for assets held by the government in a trustee capacity. Agency funds are used to
account for assets held by the government as an agent for individuals, private organizations, other governments
and/or other funds.
War memorial maintenance expendable trust fund - To account for monies to be used for maintenance of the local
war memorial.
Citizenship nonexpendable trust fund - To account for donated funds, the interest on which is to be used to provide
"Good Citizen" awards to deserving Salina citizens.
Cemetery endowment nonexpendable trust fund - To account for amounts expended for perpetual care of the City
cemetery. Interest earnings are used for cemetery maintenance.
Mausoleum endowment nonexpendable trust fund - To account for amounts charged for perpetual care of the City
mausoleum. Interest earnings are used for mausoleum maintenance.
Tricentennial Commission nonexpendable trust fund - To account for donations to be used to celebrate the nation's
Tricentennial in the year 2076.
Special assessment escrow agency fund - To account for property owners' prepayment on outstanding special
assessments.
Fire insurance proceeds agency fund - To account for insurance proceeds received for severely damaged buildings
The insurance proceeds, plus interest, are returned to the property owners when the buildings are repaired or
demolished.
PEGS access agency fund - To account for revenues collected on behalf of the community access television system
for public, educational and governmental programming.
Payroll clearing agency fund - To account for interfund payroll receivables and payables for all City funds.
Court bond and restitution agency fund - To account for bonds an restitution remitted to the court and awaiting court
orders for distribution.
Police investigation account agency fund - To account for monies held by the police department for use in
investigations.
Fire cam fund - To account for donations received and used for fire equipment.
86
Schedule 20
1 of 2
CITY OF SALINA, KANSAS
EXPENDABLE TRUST, NON-EXPENDABLE TRUST AND AGENCY FUNDS
COMBINING BALANCE SHEET
December 31, 2002
(With comparative totals for December 31,2001)
Expendable
Trust Non-Expendable Trust
War Memorial
Maintenance Citizenship Cemetery Mausoleum Tricentennial
ASSETS Fund Trust Endowment Endowment Commission
Cash and investments $ 33,320 $ 19,534 $ 268,373 $ 27,867 $ 4,627
Interest receivable 563 330 4,534 471 78
Total assets $ 33,883 $ 19,864 $ 272,907 $ 28,~\38 $ 4,705
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable $ - $ - $ - $ - $
T otalliabilities
Fund balances
Unreserved
Undesignated 33,883 19,864 272,907 28,~138 -- 4,70~.
Total liabilities and fund balances $ 33,883 $ 19,864 $ 272,907 $ 28,~~38 $ 4,705
Agency
Special Fire Court
Assessment Insurance PEGS Payroll Bond and
Escrow Proceeds Access Clearing Restitution
$ 111,969 $ 1,688 $ 1 ,420 $ 940,770 $ 31,440
1,892 29 24
$ 113,861 $ 1,717 $ 1,444 $ 940,770 $ 31,440
$
113,861 $
1,717 $
1,444 $
940,770 $
31,440
113,861
1,717
940,770
31,440
1,444
$
113,861 $
1,444 $
940,770 $
31,440
1,717 $
See independent auditor's report on the general purpose financial statements.
87
Schedule 20
1 of 2
Schedule 20
2 of2
CITY OF SALINA, KANSAS
EXPENDABLE TRUST, NON-EXPENDABLE TRUST AND AGENCY FUNDS
COMBINING BALANCE SHEET
December 31,2002
(With comparative totals for December 31,2001)
Agency Total
Police Fire
Investigation Cam
ASSETS Account Fund 2002 2001
Cash and investments $ 1,884 $ 66 $ 1,442,9Ei8 $ 1,375,821
Interest receivable 1 7,922 6,002
Total assets $ 1,884 $ 67 $ 1,450,880 $ 1,381,823
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable $ 1,884 $ 67 $ 1,091,183 $ 1,031,037
T otalliabilities 1,884 67 1, O;jí ,-jt¡:J -J,O3¡,d3ì
Fund balances
Unreserved
Undesignated 359,6~17 350,7?§
Total liabilities and fund balances $ 1,884 $ 67 $ 1,450,880 $ 1,381,823
See independent auditor's report on the general purpose financial statements.
88
Schedule 21
CITY OF SALINA, KANSAS
WAR MEMORIAL MAINTENANCE EXPENDABLE TRUST FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
For the fiscal years ended December 31, 2002 and 2001
2002 2001
Revenues
Interest $ 1,193 $ 2,578
Expenditures
Culture and recreation 11 ,779 385
Excess [deficiency] of revenues over [under] expenditures [1 O,5~ 2,193
Fund balances, January 1 44,469 42,276
Fund balances, December 31 $ 33,883 $ 44,469
See independent auditor's report on the general purpose financial statements.
89
Schedule 22
CITY OF SALINA, KANSAS
NON-EXPENDABLE TRUST FUNDS
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS
For the fiscal years ended December 31, 2002
(With comparative totals for the fiscal year ended December 31, 2001)
Total
Citizenship Cemetery Mausoleum Tricentennial
Trust Endowment Endowment Commission 2002 2001
Operating revenues
Charges for services $ - $ 7,788 $ - $ - LL788 $ 8,725
Operating expenses
Other 35 35 35
--
Operating income 7,753 ~753 8,690
Nonoperating revenues
Use of money and property 717 9,834 1,023 170 ~744 17,654
Net income 717 17,587 1,023 170 19,497 ')1') 34<1
Retained earnings, January 1 19,147 255,320 27,315 4,535 306,317 279,973
Retained earnings, December 31 $ 19,864 $ 272,907 $ 28,338 $
4,705- !:gêo&l~- ~"~3QI;),~17
See independent auditor's report on the general purpose financial statements.
90
Schedule 23
CITY OF SALINA, KANSAS
NON-EXPENDABLE TRUST FUNDS
COMBINING STATEMENT OF CASH FLOWS
For the fiscal years ended December 31,2002
(With comparative totals for the fiscal year ended December 31 , 2001)
Net cash provided by operating activities
Total
Citizenship Cemetery Mausoleum Tricentennial
Trust Endowment Endowment Commission 2002 2001
$ - $ 7,788 $ - $ - $ 7,788 $ 8,725
[35] [351 [35]
7,753 7,753 8,690
616 8,352 879 146 9,993 13,992
616 16,105 879 146 17,746 22,682
18,918 252,268 26,988 4,481 302,655 279,973
$ 19,534 $ 268,373 $ 27,867 $ 4,627 ! 320,401 $ 302,655
Cash flows from operating activities
Cash received from customers
Cash paid to suppliers
Cash flows from investing activities
Interest received
Net increase in cash and cash equivalents
Cash and cash equivalents, January 1
Cash and cash equivalents, December 31
Reconciliation of operating income to net cash
provided by operating activities
Operating income
$
- $
7,753 $
- $
- !
7,753 $
8,690
See independent auditor's report on the general purpose financial statements.
91
Schedule 24
1 of 3
CITY OF SALINA, KANSAS
AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
For the fiscal year ended December 31, 2002
Balance
January 1,
2002
Additions
Deductions
Balance
December 31,
2002
Special Assessment Escrow
ASSETS
Cash and investments
$
130,550 $
27,722 $
44,41.~ $
113,861
LIABILITIES
Accounts payable
$
130,550 $
27,722 $
44,411 $
113,861
Fire Insurance Proceeds
ASSETS
Cash and investments
Interest receivable
$ 19,071 $ - $ 17,383 $ 1,688
231 202 29
-' ."'---"--
$ 19,302 $ - $ 17,585 $ ~I ,717
Total assets
LIABILITIES
Accounts payable
$
19,302 $
- $
17,585 $
1,717
PEGS Access
ASSETS
1,420
24
Cash and investments
Interest receivable
$
1,303 $
16
212,463 $
8
212,346 $
Total assets
$
1,319 $
212,471 $
212,346 $
1,444
LIABILITIES
Accounts payable
$
1,319 $
212,471 $
212,346 $
1 ,444
See independent auditor's report on the general purpose financial statements.
92
Schedule 24
2 of3
CITY OF SALINA. KANSAS
AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
For the fiscal year ended December 31, 2002
Balance
January 1,
2002
Additions
Deductions
Balance
December 31,
2002
Payroll Clearing
ASSETS
Cash and investments
$
843,830 $
96,940 $
- $
940,770
LIABILITIES
Accounts payable
$
843,830 $
96,940 $
- $
940,770
Court Bond and Restitution
ASSETS
Cash and investments
$
33,643 $
- $
2,203 $
31,440
LIABILITIES
Accounts payable
$
33,643 $
- $
2,203 $
31,440
Police Investigation Account
ASSETS
Cash and investments
$
2,253 $
- $
369 $
1,884
LIABILITIES
Accounts payable
$
2,253 $
- $
369 $
1,884
See independent auditor's report on the general purpose financial statements.
93
Schedule 24
3 of 3
CITY OF SALINA, KANSAS
AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
For the fiscal year ended December 31,2002
Balance
January 1,
2002
Additions
Deductions
Balance
December 31,
2002
Fire Cam Fund
ASSETS
Cash and investments
$
64 $
3 $
- $
67
LIABILITIES
64 $
3 $
- $
67
Accounts payable
$
Total- Agency Funds
ASSETS
Cash and investments
I nterest receivable
$ 1,030,714 $
247
337,128 $
8
276,712 $ 1,091,130
202 53
-,--,-_......'.....w
337,136 $
276,9114 $ 1,091,183
Total assets
$ 1,030,961 $
LIABILITIES
Accounts payable
$ 1,030,961 $
337,136 $
276,9'14 $ 1,091,183
See independent auditor's report on the general purpose financial statements.
94
CITY OF SALINA, KANSAS
GENERAL FIXED ASSETS
95
Schedule 25
CITY OF SALINA, KANSAS
COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS
BY SOURCE
December 31,2002 and 2001
Total general fixed assets
2002 2001
$ 2,589,1 ~13 $ 2,589,193
12,296,686 12,453,379
488,2~19
6,641,5~15 6,443,810
12,110,8~¡5 11,412,456
$ 34,126,5E¡8 $ 32,898,838
General fixed assets
Land
Buildings
Construction in progress
Improvements other than buildings
Machinery and equipment
Investment in general fixed assets by source
General fund
Special revenue funds
Capital projects funds
Donations
$ 19,044,248 $ 18,304,818
1 ,227,3~)3 1,227,353
13,799,3H5 13,311,095
55,5"72 55,572
Total investment in general fixed assets
.~, 3j.!~_~6,5E>8
32 P'ìP '138
See independent auditor's report on the general purpose financial statements.
96
Schedule 26
CITY OF SALINA, KANSAS
SCHEDULE OF GENERAL FIXED ASSETS -
BY FUNCTION AND ACTIVITY
December 31,2002
(With comparative totals for December 31, 2001)
Improvements
Construction Other Than Machinery Total Total
Function and Activity Land Buildings In Progress Buildings and Equipment 2002 2001
General government
Manager $ - $ - $ - $ - $ 139,157 $ 139,157 $ 124,468
Finance 156,550 156,550 150,417
Personnel 37,817 37,817 34,976
General services 19,302 101,612 260,616 423,676 805,206 834,486
Human relations 20,457 20,457 17 ,215
Bicentennial Center 5,141,638 242,041 1,854,210 7,:;~37,889 7,236,618
Other 1,885,649 1,601,716 4,597,000 378,740 ~63,105 8,471,155
Total general government 1,904,951 6,844,966 5,099,657 3,010,607 ~160,181 16,869,335
Public safety
Police 600 445,363 53,820 1,684,199 2,1183,982 2,043,466
Municipal court 488,299 80,297 ¡¡68,596 75,050
Fire 63,302 1,732,926 3,076,434 4,872,662 4,684,291
Inspection 118,217 ~118,217 107,286
Total public safety 63,902 2,178,289 488,299 53,820 4,959,147 -L.!'43,457 6,910,093
Highways and streets
Engineering 229,154 :129,154 189,267
Maintenance 10,470 155,211 721,687 1,925,655 2,813,023 2,533,615
Planning 122,453 -----...:122,453 120,122
Total highways and streets 10,470 155,211 721,687 2,277,262 ~164,630 2,843,004
Culture and recreation 609,870 3,118,220 766,371 1,863,839 ~~58,300 6,276,406
Total general fixed assets $ 2,589,193 $ 12,296,686 $ 488,299 $ 6,641,535 $ 12,110,855 $ 34,'126,568 $ 32,898,838
See independent auditor's report on the general purpose financial statements.
97
Schedule 27
CITY OF SALINA, KANSAS
SCHEDULE OF GENERAL FIXED ASSETS -
BY FUNCTION AND ACTIVITY
December 31,2002
General Fixed General Fixed
Assets Assets
January 1, Classification December 31,
Function and Activity 2002 Additions Deletions Adjustment 2002
General government
Manager $ 124,468 $ 14,689 $ - $ - $ 139,157
Finance 152,359 6,133 [1,942] 156,550
Personnel 34,976 2,841 37,817
General services 834,486 1,715 [30,995] 805,206
Human relations 17,215 3,242 20,457
Bicentennial Center 7,236,618 9,646 [8,375] 7,237,889
Other 8,470,555 [7,450] 8,463,105
Total general government 16,870,677 38,266 [48,762] 16,860,181
Public safety
Police 2,166,680 199,896 [59,380] [123,214] 2,183,982
Municipal court [42,655] 534,578 [41,032] 117,70:5 568,596
Fire 4,676,362 203,441 [15,070] 7,929 4,872,662
Inspection 107,286 10,931 11 ~~l~LL
Total public safety 6,907,673 948,846 [115,482] 2,420 7,743,457
Highways and streets
Engineering 189,269 49,582 [8,352] [1,345] 229,154
Maintenance 2,534,214 344,309 [64,900] [600] 2,813,023
Planning 120,262 2,331 [14QJ 122,453
Total highways and streets 2,843,745 396,222 [73,252] [2,08~ 3,164,630
Culture and recreation 6,276,743 180,684 [98,792] [33~ 6,358,300
Total general fixed assets $ 32,898,838 $ 1,564,018 $ [336,288] $ - $ 34,126,568
See independent auditor's report on the general purpose financial statements.
98
GOVERNMENTAL AUDIT SECTION
LOWENIHAL SINGLETON WEBB & WILSON
PROFESSIONAL ASSOCIATION
David A. Lowenthal, CPA
Thomas E. Singleton, CPA
Patricia L. Webb, CPA
Thomas G. Wilson, CPA
CERT1FIED PUBLIC ACCOUNTANTS
900 Massachusetts, Suite 30 I
Lawrence, Kansas 66044-2868
Phone: (785) 749-5050
Fax: (785) 749-5061
E-mail: lswwcpa@lswwcpa.com
Kenneth R. Hite, CPA
Mary A. LeGresley, CPA
Audrey M. Odennann, CPA
Members of American Institute
and Kansas Society of
Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE AND ON INTERNAL CONTROL
OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH "GOVERNMENT AUDITING STANDARDS"
Mayor and City Commission
City of Salina, Kansas
We have audited the basic financial statements of City of Salina, Kansas as of and for the year ended December 31,
2002, and have issued our report thereon dated May 14, 2003. We conducted our audit in accordance with auditing
standards generally accepted in the United States of America, and the standards applicable to financial audits
contained in "Government Auditing Standards", issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether the City's financial statements are free of material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants,
noncompliance with which could have a direct and material effect on the determination of financial statement
amounts. However, providing an opinion on compliance with those provisions was not an objective 01 our ,1 Ii \jìÎ and,
accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance
that are required to be reported under "Government Auditing Standards".
Internal Control Over Financial Reportinq
In planning and performing our audit, we considered the City's internal control over financial peporting in order to
determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to
provide assurance on the internal control over financial reporting. Our consideration of the internal control over
financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might
be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the
intemal control components does not reduce to a relatively low level the risk that misstatements in amounts that
would be material in relation to the financial statements being audited may occur and not be detected within a timely
period by employees in the normal course of performing their assigned functions. We noted no matters involving the
internal control over financial reporting and its operation that we consider to be material weaknesses.
However, we noted certain other matters involving the internal control over financial reporting and its operation that
we have reported to management in a separate letter dated May 14, 2003
This report is intended for the information of the City Commission, management, and federal awarding agencies and
pass-through entities and should not be used by anyone other than these specified parties.
d~/ -L,~J ~ ~~
Professional Association
May 14, 2003
99
STATISTICAL SECTION
City of Salina Table 1
General Government Expenditures by Functions (1)
Last Ten Fiscal Years
Fiscal General Culture and Community Public Health
Year Government Public Safety Public Works Recreation Development and Sanitation Debt Service Capital Outlay Other Total
1993 1,426,997 5,834,653 1,386,714 3,915,576 175,254 173,122 2,902,019 1,558,158 4,547,476 21,919,969
1994 1,069,325 6,735,353 1,332,977 3,821,310 441,307 525,026 2,772,819 2,796,288 4,533,986 24,028,391
1995 (2) 1,167,329 7,321,192 1,464,980 4,278,450 194,552 553,614 4,387,971 3,756,136 4,690,997 27,815,221
1995 (3) 5,095,357 7,106,760 2,323,002 4,278,450 286,458 467,772 4,387,971 3,756,136 113,315 27,815,221
1996 5,400,526 7,492,967 2,631,025 4,111,277 473,245 474,604 3,302,600 4,261,039 29,561 28,176,844
1997 5,721,204 8,153,762 2,557,584 4,152,228 246,047 491,299 4,042,308 4,525,977 176,364 30,066,773
1998 7,319,381 7,825,422 2,211,719 4,623,063 260,548 512,818 2,858,079 3,181,300 374,840 29,167,170
1998(4) 2,558,564 9,992,478 3,528,366 4,151,582 2,158,385 632,766 2,858,079 3,286,950 - 29,167,170
1999 (5) 2,178,432 10,447,619 3,467,893 4,413,084 4,100,217 675,834 2,491,953 3,644,789 - 31,419,821
2000 2,470,681 11,142,154 3,805,681 4,695,258 4,152,715 742,891 2,953,569 4,870,144 - 34,833,093
2001 2,226,839 11,326,371 4,865,373 4,340,351 4,152,742 885,198 3,324,479 3,473,503 - 34,594,856
2002 2,122,489 11,969,578 5,115,951 4,295,197 4,186,552 871,560 3,312,896 3,4 73,914 35,348,137
~. and debt service funds, I
2002 Expenditures
Capital Outlay G I
10% enera
Government
Debt Service 6%
9%
(1) Includes only general, special revenUE,
(2) Some Expenditures reclassified in 1995. This line presents the 1996
expenditures based on the 1994 and prior classification. In 1991 through
1995, Employee Benefits were classified as "Other".
(4) Reflects the functional classification as presented in the 1995 and
subsequent year schedules. From 1995 through 1998, Employee Benefits
were classed as "General Government",
(5) 1998 restated to 1999 Classification
(6) In 1999, Culture, Recreation and Bi-centennial Center were combined
into "Culture and Recreation. Prior years were summed into the new
single classification. Employee benefits were moved from the "General
Public Health
and Sanitation
2%
Community
Development
12%
Public Safety
35%
Government" classification into the classification consistant with the
Culture and
Recreation
12%
Public Works
14%
salaries classification associated with the benefits, Finally, expenditures
previously classified as "Other" were placed in more appropriate and
descriptive classes.
10C
City of Salina
General Government Revenues by Source (1) Table 2
Last Ten Fiscal Years
Fiscal Fees and Special
Year Taxes Interqovernmental Charqes Assesments Other Revenues Total
1993 15,479,559 2,769,828 3,174,444 94Q,487 1,847,012 24,211,330
1994 16,153,904 3,305,815 3,089,651 868,202 2,402,460 25,820,032
1995 17,138,776 3,170,244 3,585,877 1,012,596 2,708,038 27,615,531
1996 17,557,494 3,342,888 3,160,771 1,191,772 2,859,223 28,112,148
1997 18,416,347 3,197,436 3,197,039 1,127,400 2,153,460 28,091,682
1998 19,364,939 3,208,793 5,057,608 1,050,242 1,951,707 30,633,289
1998 (2) 19,364,939 4,050,492 2,137,769 974,648 3,899,387 30,427,235
1999 21,314,633 4,383,281 2,068,329 1,086,557 4,257,563 33,110,363
2000 22,459,765 4,114,704 2,104,897 1,228,683 4,622,510 34,530,559
2001 22,282,630 3,916,482 2,107,409 1,320,324 5,001,469 34,628,314
2002 23,388,799 3,601,543 2,127,904 1,288,961 4,294,010 34,701,217
(1) Includes Only General, Special Revenue, and Debt Service
Funds. Capital Projects and Fiduciary funds are excluded.
(2) Restated to 1999 Classification. Difference in total is due to restatement of interfund transfers
2002 Revenue By Source
Other Revenues
12%
Taxes
68%
Special
Assesments
4%
Fees and Charges
6%
Intergovernmental
10%
----~---
101
City of Salina
General Government Tax Revenues by Source (1) Table :\
LastTen Fiscal Years
Fiscal Transient
Year Property Taxes Sales Tax Franchise Tax Guest Tax Total
1993 5,818,511 7,480,113 1,680,385 500,550 15,479,559
1994 6,065,013 7,769,917 1,756,528 562,446 16,153,904
1995 6,502,855 8,302,428 1,739,323 594,170 17,138,776
1996 6,690,485 8,446,809 1,836,694 583,506 17,557,494
1997 6,945,943 8,948,067 1,929,622 592,715 18,416,347
1998 6,995,943 9,687,988 1,950,520 730,488 19,364,939
1999 7,656,282 10,991,973 1,920,067 746,311 21,314,633
2000 7,576,973 12,032,797 2,141,736 708,259 22,459,765
2001 7,079,205 12,010,742 2,463,599 729,084 22,282,630
2002 8,085,665 12,257,819 2,275,737 769,578 23,388,799
Tax Revenues by Source
2,000,000
Sales Tax
Property Taxes
Franchise Tax
Transient Guest Tax
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
Year
2001 2002
(1) Includes General, special revenue and Debt Service Funds
(2) Property Taxes include Real Estate, Motor Vehicle and Payments in Lieu of Taxes
102
City of Salina
Property Tax Levies and Collections Table 4
Last 10 Fiscal Years
Percent of Delinquent Ratio of Total
Fiscal Current Tax Current Taxes Tax Total Tax T ax Collections
Year Total Tax Levy Collections Collected Collections Collections to Tax Levy
1993 4,882,255 4,696,707 96.2% 194,448 4,891,155 100.2%
1994 4,858,543 4,673,374 96.2% 227,331 4,900,705 100.9%
1995 5,230,834 5,192,453 99.3% 97,615 5,290,068 101.1 %
1996 5,534,222 5,411,474 97.8% 107,250 5,518,724 99.7%
1997 5,772,414 5,689,316 98.6% 133,171 5,822,487 100.9%
1998 6,081,748 5,976,840 98.3% 114,028 6,090,868 100.1%
1999 6,416,832 6,269,408 97.7% 140,976 6,410,384 99.9%
2000 6,694,612 6,490,693 97.0% 105,801 6,596,494 98.5%
2001 7,020,875 6,831,220 97.3% 147,819 6,979,039 99.4%
2002 7,289,916 7,108,013 97.5% 174,050 7,282,063 99.9%
Percent of Property Taxes Collected
102.0%
101.0%u--nfi'-n____~mu ~mUm --o:..u-
...... " /'
...... "/'
100.0% ----------- -_u_---------u-_u_--~-'if-/._--___u__mu___~_~---~---_u_-- ----------------------:;':-;.X)
" (y-
" ......
--uu - u_u-u n --uuu - un - -u-, - - u - -;;.: .,/uu uuu-
'if
98.0% u -- u u - m n
uuuuu_un-
990%
97.0%
--_uu- unn--~--- u- - u- - u
--uuuuu--
--- ~ - u u n-- uu
uu~_uuu
96.0% - - - - - - - - - - - u - - - - --- - u - - _u - u uu - - _u- - u - - _u - - - uuu- - uu- - - - - uuun--u-- u uu - - - - - - - - - - - --- - u -- - - _u - u - - - - - - - - - - n_u
95.0% - - - - - - - - - - - n - - - -- - - - - - - - u- _n- _u - u- - - n- - - n - - ------ u - - u-- - - - n--n----UU - - - - - u- - - - nn - ---u- - uu - - n - - - _n - - - - _n - U u-
94.0%
--u__uuu uu_n_nnnnuu uu_nnu_n--nu_--nuu_uu- __uuu_uuun_uu
_uu_unuu
93.0%
1993
1994
1995
1996
1997
1998
1999
2000
2001
--I
2002
.
Percent of Current Taxes Collected - -<> - Ratio of Total Tax Collections to Tax Levy
103
City of Salina
Assessed and Estimated Actual Value of Property
Last Ten Fiscal Years
Table 5
Assessed Value
Ratio of Assessed
Personal Total, Assessed Estimated Total Market Value to Estimated
Fiscal Year Real Estate Property State Assessed Motor Vehicle Value Value Market Value
1993 129,632,717 22,447,713 12,849,722 37,569,816 202,499,968 1,175,493,628 17.23
1994 145,239,331 22,678,728 14,272,658 41,805,765 223,996,482 1,314,830,748 17,04
1995 166,462,923 24,890,665 12,528,204 42,981,776 246,863,568 1,482,502,705 16.65
1996 175,997,879 25,550,448 12,708,970 43,786,794 258,044,091 1,551,794,365 16.63
1997 196,360,843 26,279,996 13,954,569 43,994,555 280,589,963 1,716,987,425 16,34
1998 213,488,582 27,534,811 12,909,972 44,924,849 298,858,214 1,850,244,169 16.15
1999 226,207,727 28,786,094 14,122,529 45,371,433 314,487,783 1,953,641,509 16,10
2000 241,621,655 32,439,566 14,088,875 43,246,020 331,396,116 2,096,802,659 15.80
2001 254,343,715 31,823,431 14,847,520 43,248,108 344,262,744 2,006,804,824 17.15
2002 267,175,443 35,093,154 14,866,008 45,965,839 363,100,444 2,107,421,842 17.23
Change in Assessed Value
400,000,000
250,000,000
i~
~.
~.
350,000,000
300,000,000
200,000,000
150,000,000
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
(1) On November 3,1992, voters in the State of Kansas approved a proposition to amend the l 'sas Constitution regarding property classification and
assessment rates. This amendment established three new property sub-classifications with dec:i,~ed assessment ratios.
104
City of Salina
Principal Taxpayers
2002
Taxpayer
Type of Business
Schwan's Sales
Warmack, Salina Partnership
Western Resources
Southwestern Bell
Wal-Mart Stores, Inc.
Salina Regional Health Center
Kansas Gas Service
Dillon's
Great Plains Manufacturing
FCH/HHC Hotels, Inc.
Pilla Manufacturing
Retail Shopping Mall
Electric and Gas
Telephone Utility
Discount Retail Stores
Hospital and Medical Offices
Utility
Supermarket
Manufacturing
Hotel/Convention Ctr
Combined Valuation of the Ten Largest Taxpayers
Percent ofTotal City Assessed Valuation (1)
(1) Assessed value includes amount attributed to Motor Vehicles
105
Table 6
2002 Assessed % of Total
Valuation Valuation
$ 7,595,433 2.29%
5,861,843 1.77%
5,898,849 1.78%
5,214,313 1.57%
4,288,306 1.29%
3,886,576 1.17%
2,540,941 0.77%
1,888,509 0.57%
1,975,025 0.60%
1,615,519 0.49%
40,765,314
12.30%
Fiscal
(Budget) Year
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
City of Salina
Property Tax Rates
Direct and Overlapping Governments
Last Ten Fiscal Years
City of Salina Saline County USD 305 (2) Other (1) Total
Operating Debt Service Total City Operating Debt Service Total County Operating Debt Service Total USD
Millage Millage Millage Millage Millage Millage Millage Millage Millage Other
22.114 7.735 29.849 21.718 - 21.718 40.301 3.581 43.882 6.557 102.006
22.910 6.551 29.461 24.562 - 24.562 37.353 3.332 40.685 8.521 103.229
18.555 10.154 28.709 26.571 - 26.571 39.357 3.044 42.401 8.265 105.946
15.812 11.130 26.942 20.940 1.985 22.925 39.368 2.944 42.312 8.340 100.519
20.692 5.013 25.705 18.141 18.141 36.892 2.637 39.529 8.433 91.808
21.587 3.683 25.270 19.497 0.991 20.488 35.001 1.839 36.840 9.869 92.467
19.382 5.494 24.876 23.187 - 23.187 38.698 17.623 56.321 9.444 113.828
19.097 5.268 24.365 22.337 - 23.837 41.198 17.326 58.524 9.109 115.835
18.561 5.657 24.218 24.066 - 24.066 51.115 17.063 68.178 9.330 125.792
18.581 5.511 24.092 25.667 - 25.657 38.569 18.815 57.384 9.684 116.817
Overlapping Mill Levy for Salina, Kansas
150
.!!J.
:i 1 00
c
>-
> 50
Q
-I
1993 1994 1995 1996 1997 1998
:)99 2000 2001 2002
I Budget Year
(1) The "Other" column includes the State of Kansas, the Salina Airport Authority,
(2) A small portion of Salina is covered by USD 306, USD 307, or USD 400. Total
0 USD 305
E3 All Other
0 Saline County
m City of Salina
I
the Salina Public Library.
Rates are different in the areas covered by these jurisdictions.
106
Table 7
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
Fiscal Year
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
City of Salina
Special Assesment Billings and Collections
last Ten Fiscal Years
Special
Assessment
Billings
694,497
697,015
919,364
1,139,672
985,885
983,383
1,122,307
1,266,760
1,298,468
1,284,864
Special Assessment
Collections
873,850
793,190
883,807
1,131,852
1,048,863
974,648
1,086,557
1,285,105
1,320,324
1,288,961
Ratio of Total Special
Assessments Collections to Total
Assessments levied
1.26
1.14
0.96
0.99
1.06
0.99
0.97
1.01
1.02
1.00
Special Assessment Billings and Collections
1993
1994
1995
I!!!I Special Assessment Billings III Special Assessment Collections
1996
1998
1997
1. Includes prepayments and delinquent collections.
107
1999
2002
2000
2001
Table 8
City of Salina
Computation of Legal Debt Margin
December 31,2002
Assessed Valuation (1)
Legal Debt Margin:
Debt Limit: 30% of Assessed Valuation (2)
Debt Applicable to Limitation:
Total Bonded Debt
Less: Revenue Bonds
Fund Balance Designated
for Debt Service
Total Debt Applicable to Limitation
Legal Debt Margin
Table 9
$ 363,100,444
108,930,133
36,570,942
6,790,000
1,000,030
28,780,912
80,149,221
1. Assessed valuation for the purposes of calculating the debt limitation includes the valuation attributable to
Motor Vehicles.
108
Fiscal
Year
City of Salina
Ratio of Net General Obligation Bonded Debt
To Assessed Value and
Net General Obligation Bonded Debt Per Capita
Table 10
Ratio of Net
Less Debt Bonded Debt to Net Bonded
Assessed Value Gross Bonded Service Fund Net Bonded Assessed Debt Per
(2) Debt (3) (4) Debt Value Capita
Population
(1 )
1993 43,202 202,499,968 9,478,791 539,887 8,938,904
1994 43,304 223,996,482 7,854,994 797,083 7,057,911
1995 (1) 43,304 246,863,568 8,465,000 1,024,020 7,440,980
1996 (1) 44,167 258,044,091 10,211,899 1,052,539 9,159,360
1997 44,510 280,589,963 10,184,658 867,759 9,316,899
1998 (2) 44,176 298,858,214 8,453,558 741,310 7,712,248
1999 44,022 314,487,783 10,877,094 779,992 10,097,102
2000 45,679 331,396,116 12,590,532 942,981 11,647,551
2001 45,679 344,262,744 11,006,768 956,644 10,050,124
2002 45,729 363,100,444 14,546,118 1,000,030 13,546,088
Per Capita General Obligation Debt
300.00
250.00
200.00
150.00
100.00
50.00
0.00
1993 1994 1995(1) 1996 (1) 1997 1998 (2) 1999
4.41
3.15
3.01
3.55
3.32
2.58
3.21
3.51
2.92
3.73
206.91
162.99
171.83
207.38
209.32
174.58
229.36
254.99
220.02
296.23
2000
2001
2002
1. 2000 population estimates are based on the 2000. Estimates for interim years are based on the 7/1 estimate issued by Kansas
State Oivisionof the Budget.
2. Includes motor vehicles
3. Outstanding Debt amounts reflect portion of the outstanding debt for which general taxes will be required. This excludes revenue
bonds, GO obligations for which other revenue has been pledged, and obligations for which special assessments will be levied.
4. Amount available for repayment of General Obligation Bonds.
109
Fiscal Year
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
12.00%
City of Salina
Ratio of Annual Debt Service Expenditures
For General Obligation Bonded Debt (1)
To Total General General Governmental Expenditures
Last Ten Fiscal Years
Table 11
Total General
Governmental
Principal Interest (2) Total Debt Service Expenditiures (3)
1,556,156 497,961 2,054,117 21,919,969
1,459,185 368,250 1,827,435 24,028,391
1,530,037 386,943 1,916,980 27,815,221
1,229,378 305,808 1,535,186 28,176,844
2,549,984 443,461 2,993,445 30,066,773
1,563,421 320,010 1,883,431 29,167,170
1,044,187 361,209 1,405,396 31,419,821
1,277,861 447,025 1,724,886 34,833,093
1,406,725 498,772 1,905,497 34,964,295
1,376,631 553,054 1,929,685 35,348,137
Ratio of Debt Service to
General Governmental
Expenditures (3)
9.37%
7.61%
6.89%
5.45%
9.96%
6.46%
4.47%
4.95%
5.45%
5.46%
Ratio of General Debt Service to General Government Expenditures
~
10.00% nn- --n_n- - - - - - - nn n_--_nn - nnn n - - -- - --nn- n n - - - - - _nnn - --h_--- --_un -- - - n - - n - n- - - - n - _n- - _n_h_-- -------
8.00% n- - h---- - - - n- n - n - _------__nn- _n n - - - nh-- - n_nn- - - - - nn - n n_C- n n - n - ------ h-- nn - - - u - - nn - - - n - - n- -.-
6.00% ---_u______n_nn_h--__nn_n___- _n_-- ---n_nnnnn______n_n_n nhn___--__------_n-__n___n__________n________n
4.00% - - - - - - - - nn-- --- - - - - - - - - - n - - - - - - --- _n - - - n - - - - n- h h --- n - - -- -- ----- - ------- _n - - _n _n - - n- - - - - - - - n - - - - - - - - - --n - _n _u -.. --
2.00% nhn------- - - _n nn - -.n _n h----unn - _n - Cnn--------_n- --------__h------- -- -- _n- - - - - n - - - - - - - - n - - n ----n h- _hh -----
0.00%
1993
1994
1995
1996
1999
2002
2000
2001
1997
1998
(1) Excludes special assessment debt with government commitment.
(2) Excludes bond issuance and other costs.
(3) Includes general, special revenue, and debt service funds.
110
City of Salina
Computation of Direct and Overlapping Bonded Debt
General Obligation Bonds
December 31,2002
Table 12
Jurrisdiction
Net General
Obligation
Bonded Debt
Outstanding
Percentage Amount
Applicable to City Applicable to the
of Salina City of Salina
Direct:
City of Salina
$
13,546,088
100% $
13,546,088
Overlapping:
Salina Airport Authority
Saline County
USD 305
Total Overlapping Debt
5,090,000
1,170,000
92,565,000
98,825,000
100%
86%
92%
5,090,000
1,006,668
85,002,440
91,099,108
Total Direct and Overlapping Debt
112,371,088
104,645,196
Per Capita Direct and Overlapping debt
$
2,288
USD 305
81%
Overlapping Debt, City of Salina
City of Salina
13%
Salina Airport
Authority
5%
Saline County
1%
--~------ -----
111
City of Salina
Revenue Bond Coverage
Water and Sewer Fund
Last Ten Fiscal Years
Table 13
Debt Service Requirements
Net Kevenue
Fiscal Operatinq Operatinq Available for Debt
Year Revenues (1) Expenses(2) Service Principal Interest Total Coveraqe
1993 8,171,545 4,350,228 3,821.317 670,000 1,681,527 2,~\51 ,527 1.63
1994 9,402,506 5,266,865 4,135,641 805,000 1,614,122 2,419,122 1.71
1995 9,993,020 5,879,776 4,113,244 880,000 1,588,797 2,468,797 1.67
1996 10,506,646 7,147,082 3,359,564 955,000 1,527,953 2,482,953 1.35
1997 10,442,409 6,714,541 3,727,868 1,015,000 1,483,493 2,498,493 1.49
1998 11,495,756 6,836,006 4,659,750 660,000 924,598 1,584,598 2.94
1999 10,753,843 7,399,094 3,354,749 700,000 876,793 1,576,793 2.13
2000 11,709,375 7,406,546 4,302,829 735,000 831,293 1,566,293 2.75
2001 11,886,131 8,461,367 3,424,764 835,000 688,515 1,523,515 2.25
2002 13,435,656 9,167,908 4,267,748 267,334 267,334 15.96
(1) Excludes interest income
(2) Excludes Depreciation
(3) Coverage for 2002 appears to be excessive because of refinancing activity and very limited prncipal and interest payments.
112
City of Salina
Property Value and Construction
Last Ten Fiscal Years
Value of
Total Property Value Total Value of Permits Commercial
Fiscal Year (Thousands) Permits Issued Issued Permits
1993 $ 1,175,494 628 $ 36,411,632 NA
1994 1,314,831 694 38,667,261 NA
1995 1,482,502 759 34,156,955 NA
1996 1,551,794 832 55,369,816 NA
1997 1,716,987 725 41,528,712 $ 24,604,611
1998 1,850,244 757 42,830,543 22,162,767
1999 1,953,642 772 41,431,443 11,225,834
2000 2,096,803 771 99,462,211 75,141,289
2001 2,006,805 679 74,250,045 53,696,870
2002 2,107,422 776 62,416,514 47,809,924
Number and Value of Building Permits Issued
950
850
750
!!
'ê 650
C1)
c..
'õ
:;;
~ 550
::>
z
450
350
250
1993
1995
1998
2001
1999
2000
1996
1997
1994
I c::::::J Permits Issued -+- Total Value of Permits Issued I
113
121,000,000
101,000,000
81,000,000
!!
'ë
:;;
61,000,000 ~
0
C1)
::>
;¡;
>
41,000,000
21,000,000
1,000,000
2002
Table 14
City of Salina Table 15
Demographic Analysis
Last 10 Fiscal Years
Per Capita Labor Force,
Personal Income School Enroiliment Unemployment Saline County
Fiscal Year Population (1) Saline County (2) Median Age (3) (4) Rate (5) (5)
1993 43,202 21,433 33.3 7,661 4.6% 28,549
1994 43,304 22,876 33.5 7,243 4.6% 28,093
1995 43,304 22,561 33.5 7,229 4.4% 29,312
1996 44,167 23,860 33.5 7,316 3.7% 29,281
1997 44,510 25,312 33.5 7,307 3.6% 28,875
1998 44,176 26,329 33.5 7,257 3.5% 29,262
1999 44,022 26,957 33.5 7,347 3.6% 30,310
2000 45,679 28,885 36.1 7,418 2.8% 30,740
2001 45,629 28,168 36.1 7,329 3.5% 29,821
2002 45,729 NA 36.1 7,289 3.6% 30,569
Population, labor Force, and School Enrollment
50,000
8,000
(1)45,000
0
...
0
LL.
...
,,840,000
ra
-J
-
c:
g35,000
~
::I
a.
0
a.. 30,000
.
II"
II
.----
II
II
.-----
II
II
" ..'..
" .. ..'" ...--.
.--..." -- ""."
7,500
....
c:
( )
E
0
...
c:
w
7,000
"
25,000
6,500
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
.
Population (1) --tr-- Labor Force, Saline County (5) - .. - School Enrolllment (,/!U
Data Sources:
1) 2000 Population estimates are based on the 2000 Census. Population in intervening years is based on the Kansas Division of
the Budget 7/1 estimate
(2) U.S. Department of Commerce, Bureau of Economic Analysis.
(3) Salina Chamber of Commerce. 2000 is the 2000 Census.
(4) U.S.D. 305, Full Time Equivelancy
(5) Kansas Department of Human Resources
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