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Audit - 1998CITY OF SALINA, KANSAS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the fiscal year ended December 31, 1998 Prepared by: Department of Finance and Administration Rodney Franz Director of Finance This page left blank intentionally. CITY OF SALINA, KANSAS Comprehensive Annual Financial Report For the fiscal year ended December 31, 1998 TABLE OF CONTENTS - CONTINUED Page INTRODUCTORY SECTION Letter of Transmittal v -xii Organizational Chart xiii List of Principal Officials xiv Statement FINANCIAL SECTION Report of Independent Certified Public Accountants 1 General Purpose Financial Statements Combined Balance Sheet - All Fund Types, Account Groups and Discretely Presented Component Units 1 3 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types, Expendable Trust Funds and Discretely Presented Component Units 2 9 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Actual and Budget - General, Special Revenue and Debt Service Funds 3 13 Combined Statement of Revenues, Expenses and Changes in Retained Earnings/Fund Balances - All Proprietary Fund Types, Similar Trust Funds and Discretely Presented Component Units 4 17 Combined Statement of Cash Flows - All Proprietary Fund Types, Similar Trust Funds and Discretely Presented Component Units 5 19 Notes To Financial Statements 23 Schedule Combining, Individual Fund and Account Group Statements and Schedules General Fund 48 Comparative Balance Sheets - General Fund 1 49 Comparative Statements of Revenues, Expenditures and Changes in Fund Balances - General Fund 2 50 i CITY OF SALINA, KANSAS Comprehensive Annual Financial Report For the fiscal year ended December 31, 1998 TABLE OF CONTENTS - CONTINUED Schedules of Revenues, Expenditures and Changes in Fund Balances - Actual and Budget - General Fund 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 - Debt Service Fund Comparative Statements of Revenues, Expenditures and Changes in Fund Balances - Debt Service Fund Schedules of Revenues, Expenditures and Changes in Fund Balances - Actual and Budget - 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 Fund Balances - 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 M Schedule Page 3 51 54 4 56 5 62 6 68 78 7 79 8 80 9 81 82 10 83 11 84 85 12 86 13 88 14 90 15 94 98 16 99 17 101 FINANCIAL STATEMENTS For the fiscal year ended December 31, 1998 TABLE OF CONTENTS - CONTINUED Schedule Page Combining Statement Of Cash Flows - Internal Service Funds 18 103 Schedules Of Revenues, Expenditures And Changes In Fund 1 131 Balances - Actual And Budget - Internal Service Funds 19 107 Trust and Agency Funds 3 112 Combining Balance Sheet- Expendable Trust, Nonexpendable 4 134 Trust and Agency Funds 20 113 Comparative Statements of Revenues, Expenditures and Changes 6 136 in Fund Balances - Expendable Trust Fund 21 116 Combining Statement of Revenues, Expenses and Changes in 8 138 Fund Balances - Nonexpendable Trust Funds 22, 117 Combining Statement of Cash Flows - Nonexpendable Trust Funds 23 119 Combining Statement of Changes in Assets and Liabilities - Agency Funds 24 121 General Fixed Assets 124 Comparative Schedule Of General Fixed Assets By Source 25 125 Schedule Of General Fixed Assets - By Function And Activity 26 126 Schedule Of Changes In General Fixed Assets - By Function And Activity 27 128 Year 2000 Issues 28 130 STATISTICAL SECTION Im Table General Government Expenditures by Function 1 131 General Government Revenues by Source 2 132 General Government Tax Revenues by Source 3 133 Property Tax Levies and Collections 4 134 Assessed and Estimated Actual Value of Property 5 135 Principal Taxpayers 6 136 Property Tax Rates - Direct and Overlapping Governments 7 137 Special Assessments Billings and Collections 8 138 Im CITY OF SALINA, KANSAS FINANCIAL STATEMENTS For the fiscal year ended December 31, 1998 TABLE OF CONTENTS - CONTINUED Computation of Legal Debt Margins 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 Bonded Debt Revenue Bond Coverage - Water and Sewer Fund Property Value, Construction, and Bank Deposits Demographic Analysis SPECIAL REPORTS SECTION Report of Independent Certified Public Accountants on Compliance and on Internal Control over Financial Reporting Based on an Audit of General Purpose Financial Statements Performed in Accordance with Government Auditing Standards Report of Independent Certified Public Accountants on Compliance Requirements Applicable to Each Major Program and Internal Control over Compliance in Accordance with OMB Circular A -133 Schedule of Expenditures of Federal Awards Schedule of Findings and Questioned Costs iv Table Page 9 139 10 140 11 141 12 142 13 143 14 144 15 145 146 149 150 INTRODUCTORY SECTION This page left blank intentionally. City Manager's Office City Manager • Dennis M. Kissinger City-County Building • 300 West Ash Street • P.O. Box 736 Salina, Kansas 67402 -0736 TELEPHONE (785) 826 -7250 • FAX (785) 826 -7248 • TDD (785) 826 -7333 • E -MAIL dennis.Ussinger@salina.org June 30, 1999 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, 1998, 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, 1997. 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. Economic Condition and Outlook In 1998, 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 business building permits were issued with a combined value of $22,162,767. According to Kansas State University, Saline County has the third highest retail pull factor (1.41) in the State. The pull factor measures the degree to which a county area captures retail trade from outside the county. A pull factor of greater than 1 indicates that a county is attracting more retail trade from outside the county than it is losing to other counties. It is apparent from this that Salina continues to serve as a regional economic hub in 1998. The activity in the housing industry continued unabated in 1998 with the industry working hard to meet the demand for new housing. The strong local economy and lower interest rates contributed to this demand. Over 80 new single - family homes were started in 1998 with the pace expected to continue at this level or higher through 1999. In 1998, 20 residential and 12 commercial lots were completed, along with street, drainage, and water improvements being extended to 90 existing residential lots. In addition, work was started on 35 residential and 6 commercial lots that are due for completion in 1999. Several industrial and commercial establishments in Salina are making major expansions to their facilities. Eldorado National, the largest North American manufacturer of small commercial buses of the type used in airport or car rental shuttles, is scheduled to began a second expansion of their manufacturing facility. The operation will be housed in a 53,000 square foot facility leased from the Salina Airport Authority, and will create aia additional 40 to 50 jobs. The new facility will allow Eldorado National to increase production from about 2,350 busses per year to about 3,000 buses. Raytheon Aircraft announced a 100 job expansion to its manufacturing base in Salina. More than $10,000,000 worth of tooling will be moved to Salina to support the expansion. Raytheon currently employs 530 at the Salina Division, which encompasses 595,000 square feet of manufacturing, warehouse, and office space. A -Plus Galvanizing has selected Salina as the location for the worlds largest hot -dip galvanizing plant. The 156,000 square foot, $9 million facility is scheduled for completion in September, 1999, and will initially employ 70 people, with the potential to grow to 150 to 160 people. An addition to the existing Wal -Mart store was begun. The expansion will increase the total square footage from 114,557 to more than 208,000, and will create about 100 new jobs. Air service to Salina was improved significantly by the addition of daily service to Denver, provided by Great Lakes Aviation. Great Lakes will provide 3 flights per day between Denver and Salina. Major Initiatives The Salina community initiated a major improvement to the educational system in November, 1998, 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 '/4 cent City sales tax to be used for instructional technology and career educational equipment. Bond issue proceeds will be used to construct a new middle school, replacing Roosevelt - Lincoln. In addition, expansions and improvements will be constructed at both high schools, at South Middle School, and a. thc,, Elementary Schools. The technology sales tax is expected to raise about $12,000,000 over the next 6 years to be 'used for K -12 improvements as well as improvements to the Salina Area Vo -Tech. Phase 11 of the south Ninth Street improvement plan, covering the area from Otto street to Magnolia Road was initiated in 1997 and completed in 1998, under budget and ahead of schedule. The project removed the existing roadway and replaced it with an urban parkway design, with landscaped medians and overhead lighting, as well as providing improved traffic signals at several locations. The final cost on the project was $2,624,238. Phases III and IV of this long range plan, scheduled for 2001 and 2002, will extend these improvements to the south City limits. The Airport Industrial Center has initiated reconstruction of 6.5 miles of secondary streets. The $4.3 million project includes reconstruction of the parking lot at the Air terminal as well as demolition of old air base buildings, and improvements to water lines. The project, financed by General Obligation Bonds and by a Grant from the Kansas Department of Commerce and Housing is scheduled for completion in December, 1998. Major improvements to the Water treatment plant were initiated in 1997 to increase treatment capability and efficiency, and to address a groundwater contamination issue in Central Salina. By 1999 this groundwater remediation project will bring the City into full completion of a state compliance agreement, eliminating any economic impacts related to groundwater issues. Anticipated cost for the plant improvements is $5,500,000. Approximately $1,800,000 in grant funds will be available from the State of Kansas to assist in construction. The balance of the cost is financed by a 20 year low interest loan from the State of Kansas. Solid Waste disposal remains a challenge for Salina. The community remains committed to recycling and resource vi conservation, with several initiatives that began in 1997, including a trial yard waste recycling and composting program in addition to continuing the mulching mower rebate program. In 1998, the yard waste recycling program became permanent, with the purchase of 2,000 yard carts dedicated to yard waste collection. These initiatives will reduce the volume of waste to be disposed in the landfill, but will also reduce the revenue stream. Provision of expanded recycling and resource recovery services will also increase the cost of refuse collection services. The City's Capital Improvement Plan for 1999 -2003 itemizes projects totaling $ 52,604,000. The plan is updated each year, just prior to the operating budget process. Financial Overview Conservative management plus a strong economy have set the stage for what looks to be long -term financial stability for the City. The City has been able to to replenish its fund balances and utilize more pay -as- you -go financing for capital improvements. Budgetary basis fund balances related to tax supported funds went from $5,315,436 at the end of 1997 to $7,489,811 at the end of 1998. This balance represents 37.5% of the expenses for those funds, and complies with the City's financial goal of maintaining those balances at about 20% of expense. Revenues to these funds grew at about 8 %, while expenditures declined by about 2 %. The City also established the rates needed to fund enterprise fund activities. Water rates were increased by 3.5% and Sewer rates were increased by 2.1% on January 1,1998. Refuse collection fees were increased by 3.8% on 1/1/98 and by 8.5% on 10/01/98. Tipping fees for the landfill were increased from $28 per ton to $29 per ton in 1998. It is anticipated that these fees will be sufficient to provide stable, continuing funding for the Solid Waste disposal operation. To date, the City has shown the willingness to set fees at levels which will cover operating, capital, debt service and postclosure costs required to meet subtitle D regulations and generally accepted accounting principles recommendations. Other enterprise fund fees are adjusted annually to meet anticipated yearly needs. Financial Information 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 are 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. Budgetary Controls. In addition, the City maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Commission. Activities of all funds are included in the annual appropriated budget. 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, 1998 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. vii General Government Functions 1997 —1998 1997 1997% 1998 1998 % of Total Shown below are the December 31 actual budgetary basis fund balances in the city's tax supported fiends for 1995, 1996, 1997, and 1998. Taxes $948,592 Fund 1995 1996 1997 1998 General $4,243,971 $4,512,205 $3,508,943 $5,484,672 Employee Benefits 1,199,369 1,595,601 ' 451,777 629,470 Flood and Drainage Fines (81,895) 977,288 464,215 Utility 348,790 409,667 391,589 105,540 Special Liability 78,470 96,026 95,368 64,604 Bond and Interest 1,024,020 1,052,539 867,759 741,310 Fund Balance $6,894,620 $7,666,038 $5,315,436 $7,489,811 Total Revenues $2,337,634 Operating expenditures 100.0 $30,429,316 100.0 tax supported funds 19,298,921 $20,203,037 $22,459,055 $19,922,613 Fund balance as percent of operating expenditures 35.7% 37.9% 23.7% 37.5% 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, 1997 and 1998. Revenue 1997 —1998 1997 1997% 1998 1998 % of Total Change of Total Taxes $948,592 $18,416,347 65.6 $19,364,939 62.1 Intergovernmental 11,357 3,197,436 11.4 3,208,793 10.3 Charges for Services 1,654,517 3,197,039 11.4 4,851,556 15.6 Fines (81,895) 977,288 3.5 895,393 2.9 Interest (173,172) 589,921 2.1 416,749 l.7 Special Assessments (77,158) 1,127,400 4.0 1,050,242 4.4 Other 55,393 586,251 2.0 641,644 2.9 Total Revenues $2,337,634 $28,091,682 100.0 $30,429,316 100.0 Total revenues were relatively stable. Taxes increased, due to a resumed growth rate in sales taxes, and in increased property taxes. Intergovernmental fees were relatively stable. Charges for services increased dramatically. A portion of this was due to increased collection efficiency for Emergency Medical Service charges and improved Bi- Center revenues. However, the bulk of this change ($841,699) was due to the fact that the City of Salina processed the Salina Airport Authority CDBG project. This amount is offset by an expenditure item in the same amount. Interest declined, due to changes in the money markets. viii The following table presents a summary of General Fund, Special Revenue Funds and Debt Service Fund GAAP basis expenditures for the years ended December 31, 1997 and 1998. E2Tenditure 1997-1998 1997 1997 % of 1998 1998%o Chanee Charges for Services: Total Total General Government 1,598,177 $5,721,204 19.0 $7,319,381 25.1 Public Safety (298,340) 8,123,762 27.0 7,825,422 26.8 Public Works (345,865) 2,557,584 8.5 2,211,719 7.6 Recreation (6,391) 1,948,225 6.5 ' 1,941,834 6.6 Cultural (26,280) 522,763 1.7 496,483 1.7 Community Development 14,501 246,047 .8 260,548 .9 Health & Welfare 21,519 491,299 1.6 512,818 1.8 Bicentennial Center 502,975 1,681,770 5.6 2,184,746 7.5 Debt Service (1,184,229) 4,042,308 13.5 2,858,079 9.8 Capital Outlay (1,344,677) 4,525,977 15.1 3,181,300 10.9 Other 198,476 176,364 .6 374,840 1.3 Total Expenditures (870,133) $30,037,303 100.0 29,167,170 100.0 Increases in General Government were largely attributable to the method of handling the Airport Authority Community Development project. This was $841,000, and was offset by a revenue item. The Building Maintenance function was also re- organized, resulting in a reclassification of costs from Public Works and several other departments to General Government. Expenses for the Bi- Centennial Center increased due to increased utilization. Proprietary Operations The City has four enterprise operations: Water and Sewer, Golf Course, Solid Waste and Sanitation. Significant changes occurred in each. The table below summarizes some key operational statistics for the enterprise funds: Water and Sewer rates were both changed in 1998, with Water being increased by 3.5% on 1/1/98 and Sewer Rates increased by 2.1% on 1/1/98. Sanitation rates were increased by 3.8% on 1/1/98, and again by 8.5`,% on 10/01/98. Water and sewer operating revenues increased by $ 1,053,347 (10.0 %) in 1998 . One time intergovernmental revenues account for $788,994 of this amount, with the remainder in charges for service and miscellaneous revenues. The City continued the process of updating the solid waste facility to meet subtitle D Federal regulations. Rates were increased to $29 /ton in 1998. This fund appears now to be stable, and any future rate increases should be on a scale consistent with inflationary trends. Solid Waste service charges did increase by $ 82,490. This fund now shows a healthy current balance, and adequate resources to service the debt on new cells as they are constructed. Solid Waste tonnage did show a decrease due to the loss of several of the Counties that were contracting for ix 1998-1997 1997 1998 han e Charges for Services: Water and Sewer $87,399 $10,411,919 $10,499,318 Sanitation 124,928 1,229,738 1,354,666 Solid Waste 82,490 $2,401,296 2,483,786 Golf Course (34,933) $782,162 747,229 Water Account billings 1,908 224,473 226,381 Water Metered (billion gallons) 0.101 2.026 2.127 Solid Waste Tonnage at landfill (1,463) 84,233 82,770 Golf Rounds (3,260) 44,619 41,359 Sanitation Customers 220 12,921 13,141 Water and Sewer rates were both changed in 1998, with Water being increased by 3.5% on 1/1/98 and Sewer Rates increased by 2.1% on 1/1/98. Sanitation rates were increased by 3.8% on 1/1/98, and again by 8.5`,% on 10/01/98. Water and sewer operating revenues increased by $ 1,053,347 (10.0 %) in 1998 . One time intergovernmental revenues account for $788,994 of this amount, with the remainder in charges for service and miscellaneous revenues. The City continued the process of updating the solid waste facility to meet subtitle D Federal regulations. Rates were increased to $29 /ton in 1998. This fund appears now to be stable, and any future rate increases should be on a scale consistent with inflationary trends. Solid Waste service charges did increase by $ 82,490. This fund now shows a healthy current balance, and adequate resources to service the debt on new cells as they are constructed. Solid Waste tonnage did show a decrease due to the loss of several of the Counties that were contracting for ix services. Sanitation charges increased by $ 124,928, however, this fund still shows a current loss on operations. This is due largely to the rapid growth in solid waste disposal charges allocated to the fund, and to costs associated with the yard waste recycling program. In February, 1997, the City implemented a partial self funded health insurance program for employees, replacing the conventional insurance plan that had provided this benefit Individual stop loss coverage is purchased with an attachment point of $50,000. The aggregate stop loss coverage is set at a about $1,950,000. Dental coverage is provided. The dental portion of the plan is fully self insured and not subject fo stop loss protection, however, total benefits are limited to $1,500 per year per person. Since February, 1998, the prescription portion of the program is also fully self insured. The fund is fully funded by rates, and performance has been sufficient to cover claims paid and incurred but not reported claims. The City utilizes four other internal service funds: Risk Management, Worker's Compensation Reserve, Central Garage and Data Processing. In 1991, the City instituted a partially self - insured workers compensation 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 fiind to provide adequate reserves should we experience heavy claims. At the end of 1998, fund equity was $1,170,280, meeting this goal. The other internal service funds are used to purchase insurance, repair City vehicles or operate a City- wide computer system. These costs are apportioned to the various City departments based upon usage. Debt Administration The City issued no new Revenue Bonds during 1998. The total amount of revenue bonds outstanding at December 31, 1998 was $26,300,000. There is a reserved investment of $10,856,200 pledged to retire the bonds refunded in the 1994 crossover refunding. The resulting net obligation against the Water /Sewer Utility's revenue stream is $15,443,800. With the City's policy of issuing revenue bonds for no more than 20 years, 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. The City issued $9,467,420 of internal improvement bonds during 1998. Of this amount, $5,567,420 refunded outstanding revenue bond obligations. Water and Sewer Revenues are pledged to the retirement of this issue. Total bonds outstanding at December 31, 1997 was $18,157,420 with final maturity scheduled for August 1, 2008. Based upon December 31, 1998 General Obligation bonds outstanding, per capita general obligation debt is $174.58. The City is well below its maximum debt limit with $64,143,774 in authority remaining. Internal Improvement temporary notes in the amount of $2,250,000 were issued in 1998. Of this amount, $1,500,000 is a three year financing to develop the next cell at the Solid Waste Landfill. The remaining notes were for Street and Subdivision developments (to be retired with Special assessments). Cash Management In 1992, the State of Kansas granted cities increased investing authority. The City of Salina has established an investment policy that allows 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, 1998, investments under the City's direct control were as follows: Investment Municipal Investment Pool U.S. Government Bond Escrow —US Treasury Bills Total Amount Percentage $13,313,393 38.5 10,400,855 30.0 10,856,200 31.4 $34,570,448 100.00% The investments in the Bond Escrow are restricted to specific purposes and are not available for Government x operations. 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. Acknowledgments The preparation of the Comprehensive Annual Financial Report was made possible by the dedicated, professional advice and effort of the Agler and Gaeddert auditing team. A special thank you needs to be given to Brenda Siemsen, City Accountant, and to Valerie Gebhart, Accounting Technician, both of whom provided outstanding service in the interim between Finance Directors and were invaluable in accumulating information for audit. Finally, preparation of this report would not have been possible without the support of the City Commission. Sincerely, Dennis M. Kissinger City Manager 1 Rodney Fra Director of finance & Administration xi Certificate of Achievement for Excellence in Financial Reporting Presented to City of Salina, Kansas For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 1997 A Certificate of Achievement for Excellence in i`minanc.ial 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 financie reports (CAFRs) achieve the highest standards in government accounting and financial reporting. UN D D AM Y N cum Pres ident oy Executive Director L ity of Salina), CITIZENS CITY COMMISSION Monte Shadwick, Mayor Don Heath Alan Jilka Larry Mathews Kristin Seaton CITY MANAGER Dennis Kissinger Deputy City Manager Michael Morgan Municipal Court Administration Ellen Mitchell City Prosecutor I Human Resources Administration I Planning & Dev. I Roy Dudark Planning Permits & Inspection Neighborhood Services Asst. City Manager Municipal Co urtJudgi1 CityAttomey Jason Gage Phil Shaffer Greg Bengtson I Information Services ' David Larrick Human Relations Utilities Police Don Hoff Jim Hill Water & Waste Water Museum Patrol Water Treatment & Dist. Fire Investigations Eng. & Gen. Services Tom Girard 911 /Communications Shawn O Leary Fire Suppression Engineering EMS Design/Inspection Codes/Inspection Traffic Public Education General Services Streets Flood Works Traffic Control Central Garage Sanitation I Planning & Dev. I Roy Dudark Planning Permits & Inspection Neighborhood Services Asst. City Manager Municipal Co urtJudgi1 CityAttomey Jason Gage Phil Shaffer Greg Bengtson I Information Services ' David Larrick Human Relations Utilities Police Don Hoff Jim Hill Water & Waste Water Museum Patrol Water Treatment & Dist. Arts Education Investigations Waste Wtr. Collect./Treat Arts Services 911 /Communications Solid Waste River Festival Internal Affairs Bicentennial Center Arts & Humanities Parks & Recreation Keith Rawlines Martha Rhea Steve Snyder Operations Museum Swimming Pools Food & Beverage Arts Education Golf Course Business/ficketOffice Arts Services Neighborhood Ctrs. River Festival Parks Horizons Grants Program Recreation Forestry Cemetery Building Maintenance ' Coatnct Position Finance & Admin. Rod Franz City Clerk Accounting Utility Accounting Treasurer (Rev. 5/99) City of Salina, Kansas List of Principal Officials City Commission Monte Shadwick, Mayor Alan Jilka, Vice Mayor Kristin M. Seaton, Commissioner Larry Mathews, Commissioner Don Heath, Commissioner Cily 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 Tom Girard, Fire Chief Shawn O'Leary, Director of Engineering and General Services Keith Rawlings, Bicentennial Center Manager Steve Snyder, Parks and Recreation Director Roy Dudark, Planning and Community Development Director Martha Rhea, Director of Arts and Humanities Kaye Crawford, Human Relations Director Greg Bengston, City Attorney David Larrick, Information Services Director xiv FINANCIAL SECTION This page left blank intentionally. 234 South Main Y!�— P.O. Box 1020 TAU Ottawa, Kansas 66067 (785) 242 -3170 (785) 242 -9250 FAX , \Jer oGaeddert CHARTERED `J Certified Public Accountants REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS To the Honorable Mayor and the Board of the City Commissioners City of Salina, Kansas W. Keith Gaeddert Lucille L. Hinderliter Raymond E. Meyer, Jr. We have audited the accompanying general purpose financial statements of the City of Salina, Kansas as of and for the year ended December 31, 1998 as listed in the table of contents to the financial section. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We did not audit the financial statements of the Salina Airport Authority and the Housing Authority of the City of Salina, 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 generally accepted auditing standards; the Kansas Municipal Audit Guide and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit and the report 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 the City of Salina, Kansas as of December 31, 1998, and the results of its operations and cash flows of its proprietary fund types and nonexpendable trust funds for the year then ended in conformity with generally accepted accounting; principles. In accordance with Government Auditing Standards, we have also issued a report dated June 9, 1999 on our consideration of the City of Salina, Kansas' internal control structure and a report dated June 9, 1999 on its compliance with laws and regulations. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining, individual fund and account group financial statements, schedules and additional information listed in the table of contents to the financial section 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. Such additional information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. A& AML INPACT N'11111 1111 NIT1111 11 The year 2000 information on page 129 is not a required part of the basic financial statements but is supplementary information required by the Government Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and do not express an opinion on it. In addition, we do not provide assurance that the City of Salina, Kansas, is or will become year 2000 compliant, that the City's year 2000 remediation efforts will be successful in whole or in part, or that parties with which the City of Salina, Kansas, does business are or will become year 2000 compliant. The other data included in this report, designated as the "Statistical Section" in the table of contents, has not been audited by us and, accordingly, we express no opinion on that data. , L " O"M/ June 9, 1999 GENERAL PURPOSE FINANCIAL STATEMENTS City of Salina, Kansas COMBINED BALANCE SHEET ALL FUND TYPES, ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNITS December 31, 1998 ASSETS AND OTHER DEBITS ASSETS Cash and investments Cash and investments - non- expendable trusts Cash with fiscal agent Receivables (net of allowance for uncollectibles) Accounts Taxes Grants Interest Notes Inventory and prepaid supplies Due from funds Restricted assets Cash and investments Fixed assets (net of accumulated depreciation, where applicable) Financing leases Deferred charges OTHER DEBITS Amount available in debt service funds Amount to be provided for retirement of general long -term debt Total assets and other debits LIABILITIES, EQUITY AND OTHER CREDITS 0 0 0 0 $ 9,438,818 $ 7,028,266 $ 1,663,332 $ 205,929 LIABILITIES Governmental Fund Types Accounts payable $ 229,451 $ Special Debt Capital General Revenue Service Projects 236,927 Due to funds $ 5,655,273 $ 3,231,365 $ 741,310 $ 205,929 0 0 0 0 0 0 5,545 0 192,204 57,745 0 0 3,051,231 3,728,025 916,477 0 5,791 180 0 0 121,156 0 0 0 0 10,951 0 0 120,593 0 0 0 292,570 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 9,438,818 $ 7,028,266 $ 1,663,332 $ 205,929 LIABILITIES Accounts payable $ 229,451 $ 53,162 $ 0 $ 0 Retainage payable 0 18,684 0 236,927 Due to funds 0 292,570 0 0 Meter deposits payable 0 0 0 0 Health claims payable 0 0 0 0 Matured principal and interest payable 0 0 5,545 0 The accompanying notes are an integral part of this statement. 3 Statement 1 Proprietary Fiduciary 21,967 $ 0 $ Total Fund Types Fund Types Account Groups Primary 0 0 523,142 General General Government 0 0 Internal Trust and Fixed Long- (Memoran- Enterprise Service Agency Assets Term Debt dum Only) 0 $ 12,555,286 $ 2,466,153 $ 238,656 $ 0 $ 0 $ 25,093,972 0 0 234,428 0 0 234,428 0 0 0 0 0 5,545 787,373 0 0 0 0 1,037,322 0 0 0 0 0 7,695,733 0 0 0 0 0 5,971 0 0 0 0 0 121,156 0 0 0 0 0 10,951 430,274 46,514 0 0 0 597,381 0 0 0 0 0 292,570 11,916,585 0 0 0 0 11,916,585 53,907,577 436,176 0 24,845,309 0 79,189,062 0 0 0 0 0 0 575,065 0 0 0 0 575,065 0 0 0 0 741,310 741,310 0 0 0 0 17,094,769 117,094,769 $ 80,172,160 $ 2,948,843 $ 473,084 $ 24,845,309 $ 17,836,079 $ 144,611,820 $ 676,274 $ 61,765 $ 21,967 $ 0 $ 0 $ 1,042,619 267,531 0 0 0 0 523,142 0 85,252 0 0 0 0 0 0 0 292,570 0 503,413 0 0 0 0 85,252 503,413 0 0 0 0 0 5,545 4 cont. 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City of Salina, Kansas COMBINED BALANCE SHEET ALL FUND TYPES, ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNITS December 31, 1998 ASSETS AND OTHER DEBITS ASSETS Cash and investments Cash and investments - non- expendable trusts Cash with fiscal agent Receivables (net of allowance for uncollectibles) Accounts Taxes Grants Interest Notes Inventory and prepaid supplies Due from funds Restricted assets Cash and investments Fixed assets (net of accumulated depreciation, where applicable) Financing leases Deferred charges OTHER DEBITS Amount available in debt service funds Amount to be provided for retirement of general long -term debt Total assets and other debits LIABILITIES, EQUITY AND OTHER CREDITS LIABILITIES Accounts payable Retainage payable Due to funds Meter deposits payable Health claims payable Matured principal and interest payable Statement I Page 2 Total 167,788 $ 69,969 $ Total Primary Component Units Reporting Government Salina Salina Entity (Memoran- Airport Housing (Memoran- dum Only) Authority Authority dum Only) 5,545 0 $ 25,093,972 $ 1,133,689 $ 646,376 $ 26,874,037 234,428 0 0 234,428 5,545 0 0 5,545 1,037,322 46,728 87,033 1,171,083 7,695,733 750,142 0 8,445,875 5,971 0 0 5,971 121,156 0 0 121,156 10,951 0 0 10,951 597,381 0 0 597,381 292,570 0 0 292,570 11,916,585 85,000 67,888 12,069,473 79,189,062 24,121,299 6,823,571 110,133,932 0 1,319,491 0 1,319,491 575,065 68,137 8,069 651,271 741,310 0 0 741,310 0 0 17,094,769 $ 144,611,820 $ 27,524,486 $ 7,632,937 $ 179,769,243 $ 1,042,619 $ 167,788 $ 69,969 $ 1,280,376 523,142 0 0 523,142 292,570 0 0 292,570 85,252 0 0 85,252 503,413 0 0 503,413 5,545 0 0 5,545 The accompanying notes are an integral part of this statement. 5 cont. City of Salina, Kansas COMBINED BALANCE SHEET ALL FUND TYPES, ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNITS December 31, 1998 EQUITY AND OTHER CREDITS Investment in general fixed assets 0 Governmental Fund Types 0 0 Contributed capital Special Debt Capital 0 General Revenue Service Projects LIABILITIES - continued Reserved for bond retirement 0 0 0 Payable from restricted assets Reserved for postclosure care 0 0 0 Accrued interest payable $ 0 $ 0 $ 0 $ 0 Revenue bonds payable - current 0 0 0 0 Deferred interest - financing leases 0 0 0 0 Accrued compensated absences 0 0 0 0 Loans payable - current 0 0 0 0 General obligation bonds - current 0 0 0 0 Temporary notes payable 0 0 0 0 Loans payable 0 0 0 0 General obligation bonds payable 0 0 0 0 Revenue bonds payable 0 0 0 0 Mortgages payable 0 0 0 0 Landfill closure and postclosure 0 0 0 0 Deferred revenue 2,193,856 3,185,766 916,477 0 Total liabilities 2,423,307 3,550,182 922,022 236,927 EQUITY AND OTHER CREDITS Investment in general fixed assets 0 0 0 0 Contributed capital 0 0 0 0 Retained Earnings Reserved for bond retirement 0 0 0 0 Reserved for postclosure care 0 0 0 0 Unreserved 0 0 0 0 Fund balances Reserved for encumbrances 233,720 471,062 0 881,341 Reserved for inventory 120,593 0 0 0 Unreserved Designated for debt service 0 0 741,310 0 Undesignated(deficit) 6,661,198 3,007,022 0 (912,339) Total equity and other credits 7,015,511 3,478,084 741,310 (30,998) Total liabilities, equity and other credits $ 9,438,818 $ 7,028,266 $ 1,663,332 $ 205,929 The accompanying notes are an integral part of this statement. , 6 Statement I Page Proprietary Proprietary Fiduciary Total Fund Types Fund Types Fund Types Account Groups Primary General eneral Government Internal Trust and Fixed Long- (Memoran- Enterprise Service Agency Assets Term Debt dum Only) $ 343,877 $ 0 $ 0 $ 0 $ 0 $ 343,877 700,000 0 0 0 0 700,000 0 0 0 0 0 0 440,634 42,638 0 0 1,718,890 2,202,162 15,013 0 0 0 0 15,013 768,385 0 0 0 1,752,481 2,520,866 1,500,000 0 0 0 5,040,000 6,540,000 920,842 0 0 0 0 920,842 6,311,846 0 0 0 9,324,708 15,636,554 25,600,000 0 0 0 0 25,600,000 0 0 0 0 0 0 986,591 0 0 0 0 986,591 0 0 0 0 0 6,296,099 38,616,245 607,816 21,967 0 17,836,079 64,214,545 0 0 0 24,845,309 0 24,845,309 8,661,316 621,543 0 0 0 9,282,859 3,501,554 0 0 0 0 3,501,554 92,520 0 0 0 0 92,520 29,300,525 1,719,484 0 0 0 31,020,009 0 0 0 0 0 1,586,123 0 0 0 0 0 120,593 0 0 0 0 0 741,310 0 0 451,117 0 0 9,206,998 41,555,915 2,341,027 451,117 24,845,309 0 80,397,275 $ 80,172,160 $ 2,948,843 $ 473,084 $ 24,845,309 $ 17,836,079 $ 1,14,611,820 7 Cont. This page left Glarck interntioaaHy. City of Salina, Kansas Statement 1 Page 4 COMBINED BALANCE SHEET ALL FUND TYPES, ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNITS December 31, 1998 The accompanying notes are an integral part of this statement. Total Total Primary Component Units Reporting Government Salina Salina Entity (Memoran- Airport Housing (Memoran- dum Only) Authority Authority dum Only) LIABILITIES - continued Payable from restricted assets Accrued interest payable $ 343,877 $ 156,560 $ 0 $ 500,437 Revenue bonds payable - current 700,000 55,000 0 755,000 Deferred interest - financing leases 0 64,868 0 64,868 Accrued compensated absences 2,202,162 0 0 2,202,162 Loans payable - current 15,013 48,013 0 63,026 General obligation bonds - current 2,520,866 625,000 0 3,145,866 Temporary notes payable 6,540,000 0 0 6,540,000 Loans payable 920,842 325,770 0 1,246,612 General obligation bonds payable 15,636,554 5,545,000 0 21,181,554 Revenue bonds payable 25,600,000 500,000 0 26,100,000 Mortgages payable 0 0 658,480 658,480 Landfill closure and postclosure 986,591 0 0 986,591 Deferred revenue 6,296,099 750,142 6,023 7,052,264 Total liabilities 64,214,545 8,238,141 734,472 73,187,158 EQUITY AND OTHER CREDITS Investment in general fixed assets 24,845,309 0 6,823,401 31,668,710 Contributed capital 9,282,859 10,602,580 0 19,885,439 Retained Earnings Reserved for bond retirement 3,501,554 0 0 3,501,554 Reserved for postclosure care 92,520 0 0 92,520 Unreserved 31,020,009 8,683,765 0 39,703,774 Fund balances Reserved for encumbrances 1,586,123 0 0 1,586,123 Reserved for inventory 120,593 0 0 120,593 Unreserved Designated for debt service 741,310 0 0 741,310 Undesignated (deficit) 9,206,998 0 75,064 9,282,062 Total equity and other credits 80,397,275 19,286,345 6,898,465 106,582,085 Total liabilities, equity and other credits $ 144,611,820 $ 27,524,486 $ 7,632,937 $ 179,769,243 The accompanying notes are an integral part of this statement. 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, 1998 The accompanying notes are an integral part of this statement. 9 Governmental Fund Types Special Debt Capital General Revenue Service Projects Revenues - Taxes $ 13,411,693 $ 4,402,398 $ 1,550,848 $ 0 Intergovernmental 1,503,013 1,705,780 0 0 Charges for services 2,296,635 2,554,921 0 0 Fines 894,278 1,115 0 0 Special assessments 0 75,594 974,648 323,469 Use of money and property 239,111 102,601 72,957 114,943 Reimbursements 74,752 52,395 0 265,155 Miscellaneous 341,010 46,186 127,301 0 Total revenues 18,760,492 8,940,990 2,725,754 703,567 Expenditures Current General government 2,554,548 4,764,833 0 0 Public safety 7,777,224 48,198 0 0 Public works 1,987,342 224,377 0 0 Parks and recreation 1,941,834 0 0 0 Cultural 496,483 0 0 0 Community development 130,576 129,972 0 0 Health and welfare 425,485 87,333 0 0 Bicentennial Center 0 2,184,746 0 0 Other 349,859 0 0 0 Cash reserve 24,981 0 0 0 Capital outlay 2,057,327 1,123,973 0 4,435,259 Debt service Principal 0 0 2,372,468 3,645,000 Interest and other charges 0 0 485,611 191,035 Total expenditures 17,745,659 8,563,432 2,858,079 8,271,294 Excess (deficiency) of revenues over (under) expenditures 1,014,833 377,558 (132,325) (7,567,727) The accompanying notes are an integral part of this statement. 9 Statement 2 Fiduciary Total Component Total Fund Type Primary Unit Reporting Government Salina Entity Expendable (Memoran- Housing (Memoran- Trust dum Only) Authority dum Only) $ 0 $ 19,364,939 $ 0 $ 19,364,939 0 3,208,793 995,423 4,204,216 0 4,851,556 250,881 5,102,437 0 895,393 0 895,393 0 1,373,711 0 1,373,711 2,080 531,692 13,299 544,991 0 392,302 0 392,302 0 514,497 212,997 727,494 2,080 31,132,883 1,472,600 32,605,483 0 7,319,381 0 7,319,381 0 7,825,422 0 7,825,422 0 2,211,719 0 2,211,719 282 1,942,116 0 1,942,116 0 496,483 0 496,483 0 260,548 838,302 1,098,850 0 512,818 0 512,818 0 2,184,746 0 2,184,746 0 349,859 138,314 488,173 0 24,981 0 24,981 0 7,616,559 237,590 7,854,149 0 6,017,468 0 6,017,468 0 676,646 44,972 721,618 282 37,438,746 1,259,178 38,697,924 1,798 (6,305,863) 213,422 (6,092,441) 10 cont. 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, 1998 Other financing sources (uses) Operating transfers in Operating transfers out Bond and temporary note proceeds Sale of assets Total other financing sources (uses) Excess (deficiency) of revenues and other sources over (under) expenditures and other uses Fund balances, January I Residual equity transfer in Residual equity transfer out Fund balances (deficit), December 31 Governmental Fund Types 486,802 Special Debt Capital General Revenue Service Projects $ 17,000 $ 877,072 $ 0 $ 0 (591,127) (302,945) 0 0 0 0 0 4,661,740 46,096 0 0 0 (528,031) 574,127 0 4,661,740 486,802 951,685 (132,325) (2,905,987) 6,213,305 2,935,695 867,759 2,786,973 409,296 0 5,876 93,892 (93,892) (409,296) 0 (5,876) $ 7,015,511 $ 3,478,084 $ 741,310 $ (30,998) The accompanying notes are an integral part of this statement. I Statement 2 Page 2 Fiduciary Total Component Total Fund Type Primary Unit Reporting 0 Government Salina Entity Expendable (Memoran- Housing (Memoran- Trust dum Only) Authority dum Only) $ 0 $ 894,072 $ 0 $ 894,072 0 (894,072) 0 (894,072) 0 4,661,740 0 4,661,740 0 46,096 0 46,096 0 4.707.836 0 4 707 R '16 1,798 (1,598,027) 213,422 (1,384,605) 38,553 12,842,285 (138,358) 12,703,927 0 509,064 0 509,064 0 (509,064) 0 (509,064) $ 40,351 $ 11,244,258 $ 75,064 $ 11,319,322 12 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, 1998 General Fund Total revenues Expenditures Current General government Public safety Public works Parks and recreation Cultural Community development Health and welfare Bicentennial Center Other Capital outlay Debt service Principal Interest and other charges Cash reserve 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) 18,962,060 2,554,948 7,838,111 2,014,258 1,941,835 496,483 130,576 425,485 0 349,859 1,127,798 18,031,504 2,159,675 8,023,157 2,087,643 1,970,874 499,225 0 425,485 0 0 935,000 0 0 0 0 A c 12L17 000 14 017n 12 G12 ^1 n0'1 '7n'7 17,000 (591,127) A-' nnc (528,031) 21,468,947 (3,43 7,443 ) 17,000 0 15,000 Z1) Ann The accompanying notes are an integral part of this statement. 13 variance Favorable (Unfavorable) $ 954,365 (74,912) 113,699 0 320,479 (340,209) 23,752 (66,618) nin ccc (395,273) 185,046 73,385 29,039 2,742 (130,576) 0 0 (349,859) (192,798) 0 0 5,367,888 A coo CAA f <11n 1 Gn 0 (591,127) 11 nn.< (560,031) Actual Budget Revenues Taxes $ 13,488,414 $ 12,534,049 Intergovernmental 1,497,223 1,572,135 Fines, fees and permits 2,545,358 2,431,659 Special assessments 0 0 Charges for services 962,940 642,461 Use of money and property 359,991 700,200 Reimbursements 74,752 51,000 Miscellaneous revenues 33,382 100.000 Total revenues Expenditures Current General government Public safety Public works Parks and recreation Cultural Community development Health and welfare Bicentennial Center Other Capital outlay Debt service Principal Interest and other charges Cash reserve 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) 18,962,060 2,554,948 7,838,111 2,014,258 1,941,835 496,483 130,576 425,485 0 349,859 1,127,798 18,031,504 2,159,675 8,023,157 2,087,643 1,970,874 499,225 0 425,485 0 0 935,000 0 0 0 0 A c 12L17 000 14 017n 12 G12 ^1 n0'1 '7n'7 17,000 (591,127) A-' nnc (528,031) 21,468,947 (3,43 7,443 ) 17,000 0 15,000 Z1) Ann The accompanying notes are an integral part of this statement. 13 variance Favorable (Unfavorable) $ 954,365 (74,912) 113,699 0 320,479 (340,209) 23,752 (66,618) nin ccc (395,273) 185,046 73,385 29,039 2,742 (130,576) 0 0 (349,859) (192,798) 0 0 5,367,888 A coo CAA f <11n 1 Gn 0 (591,127) 11 nn.< (560,031) Statement 3 14 cont. Special Revenue Funds Debt Service Funds Variance Vance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) $ 4,177,572 $ 4,165,005 $ 12,567 $ 1,550,848 $ 1,591,283 $ (40,435) 1,611,637 1,520,617 91,020 0 0 0 1,115 0 1,115 0 0 0 70,703 82,000 (11,297) 974,648 1,093,600 (118,952) 986,518 717,000 269,518 0 0 0 86,108 20,000 66,108 72,957 50,000 22,957 888 0 888 0 0 0 41,277 42,000 (723) 127,301 0 127,301 6,975,818 6,546,622 429,196 2,725,754 2,734,883 (9,129) 3,456,462 3,497,725 41,263 0 0 0 224,377 222,614 (1,763) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 87,333 87,333 0 0 0 0 1,157,859 1,200,390 42,531 0 0 0 0 0 0 0 0 0 1,347,103 2,057,400 710,297 0 0 0 0 0 0 2,372,468 2,205,312 (167,156) 0 0 0 485,611 698,833 213,222 0 987,559 987,559 0 435,060 435,060 6,273,134 8,053,021 1,779,887 2,858,079 3,339,205 481,126 702,684 (1,506,399) 2,209,083 (132,325) (604,322) 471,997 594,322 796,000 (201,678) 0 0 0 (302,945) (308,275) 5,330 0 0 0 0 0 0 0 0 0 291,377 487,725 (196,348) 0 0 0 14 cont. 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, 1998 Excess (deficiency) of revenues and other sources over (under) expenditures and other uses Unreserved fund balances, January I Prior year cancelled encumbrances Residual equity transfer in Residual equity transfer out Unreserved fund balances, December 31 Receivables reconciliation Inventory reconciliation Retainage reconciliation Encumbrance reconciliation Non - budgeted funds Fund balances, December 31 General Fund a rya nce Favorable Actual Budget (Unfavorable) $ 1,554,676 3,508,943 105,649 409,296 (93,892) 5,484,672 1,176,526 120,593 0 233,720 0 $ 7,015,511 $ (3,405,443) $ 4,960,119 2,664,335 844,608 0 105,649 741,108 (331,812) 0 (93,892) $ 0 $ 5,484,672 The accompanying notes are an integral part of this statement. 15 Special Revenue Funds Variance Favorable Actual Budget (Unfavorable) $ 994,061 1,779,588 0 0 (409,296) 2,364,353 600,814 0 (18,684) 471,062 60,539 $ 3,478,084 $ (1,018,674) $ 2,012,735 1,459,073 320,515 0 0 0 0 0 (409,296) $ 440,399 $ 1,923,954 16 Statement 3 Page 2 Debt Service Funds Variance Favorable Actual Budget (Unfavorable) $ (132,325) $ (604,322) $ 471,997 867,759 604,322 263,437 0 0 0 5,876 0 5,876 0 0 0 741,310 $ 0 $ 741,310 0 0 0 0 0 $ 741,310 City of Salina, Kansas COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNlNGS/FUND BALANCES ALL PROPRIETARY FUND TYPES, SIMILAR TRUST FUNDS AND DISCRETELY PRESENTED COMPONENT UNITS For the fiscal year ended December 31, 1998 Operating revenues Intergovernmental Charges for services Reimbursements Miscellaneous Total operating revenues Operating expenses General government Public works Recreation Other Depreciation Total operating expenses Operating income (loss) Nonoperating revenues (expenses) Use of money and property Bond issuance costs Debt service Mill levy Gain (loss) on disposition of fixed assets Total nonoperating revenues (expenses) Net income (loss) Add depreciation on assets acquired through Federal contributions Increase (decrease) in retained earnings /fund balances Retained earnings /fund balances, January 1 Restatement Retained earnings /fund balances, December 31 The accompanying notes are an integral part of this statement. 17 Fiduciary Proprietary Fund Types Fund Type Non- Internal expendable Enterprise Service Trust $ 788,994 $ 0 $ 0 15,084,999 4,400,844 6,816 31,192 170,808 0 215,813 3,925 0 16,120,998 4,575,577 _ 6,816 0 4,900,628 0 10,401,305 0 0 708,308 0 0 0 0 35 2,710,800 171,218 0 13,820,413 5,071,846 _ 35 2,300,585 (496,269) 6,781 1,447,728 142,672 11,995 (55,221) 0 0 (1,807,148) 0 0 0 0 0 (27,660) (38,641) 0 (442,301) 104,031 _ 11,995 1,858,284 (392,238) 18,776 0 0 0 1,858,284 (392,238) 18,776 31,102,292 2,111,722 215,652 (65,977) 0 0 $ 32,894,599 $ 1,719,484 $ 234,428 The accompanying notes are an integral part of this statement. 17 Statement 4 Total Component Total Primary Unit Reporting Government Salina Entity (Memorandum Airport (Memorandum Only) Authority Only) $ 788,994 $ 0 $ 788,994 19,492,659 1,254,115 20,746,774 202,000 0 202,000 219,738 22,128 241,866 4,900,628 0 4,900,628 10,401,305 0 10,401,305 708,308 0 708,308 35 920,425 920,460 2,882,018 891,612 3,773,630 18,892,294 1,812,037 20,704,331 1,811,097 (535,794) 1,275,303 1,602,395 245,473 1,847,868 (55,221) 0 (55,221) (1,807,148) (207,130) (2,014,278) 0 322,270 322,270 (66,301) 0 (66,301) (326,275) 360,613 34,338 1,484,822 (175,181) 1,309,641 1,484,822 401,240 1,886,062 33,429,666 8,282,525 41,712,191 (65,977) 0 (65,977) $ 34,848,511 $ 8,683,765 $ 43,532,276 18 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, 1998 Cash flows from operating activities Cash received from customers and users Cash received from quasi - external transactions Cash paid to suppliers and employees Cash paid for quasi - external transactions Operating grant receipts Other operating receipts Net cash provided by (used in) operating activities Cash flows from capital and related financing activities Purchase and construction of fixed assets Proceeds from issuance of debt Principal payments - temporary notes Principal payments - loans Principal payments - gen. obligation bonds Principal payments - revenue bonds Interest paid Bond issuance costs Proceeds from property tax Principal received on financing leases Interest received on financing leases Principal received on long -term note Contributed capital Net cash used in capital and related financing activities Cash flows from investing activities Interest received Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, January 1 Cash and cash equivalents, December 31 Proprietary Fund Types Internal Enterprise Service Fiduciary Fund Type Non- expendable Trust $ 15,079,467 $ 3,695,746 $ 6,816 0 895,038 0 (10,070,539) (4,775,542) (35) (627,497) (25,121) 0 788,994 0 0 247,005 3,925 0 5,417,430 (205,954) 6,781 (4,113,307) (144,667) 0 2,435,855 0 0 (700,000) 0 0 0 0 0 (262,503) 0 0 (1,565,000) 0 0 (1,835,513) 0 0 (587,015) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (6,627,483) (144,667) 0 1,486,171 142,672 12,080 276,118 (207,949) 18,861 24,195,753 2,674,102 215,567 $ 24,471,871 $ 2,466,153 $ 234,428 The accompanying notes are an integral part of this statement. 19 Statement 5 Total Component Total Primary Unit Reporting Government Salina Entity (Memorandum Airport (Memorandum Only) Authority Only) $ 18,782,029 $ 1,285,986 $ 20,068,015 895,038 0 895,038 (14,846,116) (916,812) (15,762,928) (652,618) 0 (652,618) 788,994 0 788,994 250,930 0 7 LA 1' A 250,930 C COI A't 1 C 7 1 0 '7 C'7 (4,257,974) (6,150,886) (10,408,860) 2,435,855 0 2,435,855 (700,000) 0 (700,000) 0 (47,067) (47,067) (262,503) (2,995,000) (3,257,503) (1,565,000) (50,000) (1,615,000) (1,835,513) (156,973) (1,992,486) (587,015) (1,255) (588,270) 0 322,270 322,270 0 54,661 54,661 0 137,104 137,104 0 4,860,850 4,860,850 0 1,447,768 1,447,768 (6,772,150) (2,578,528) (9,350,678) 1 -AA A'VI 117 1AC 1 ^CA ALO 87,030 (2,096,209) (2,009,179) '1'7 AOC A'77 7 71 A OAO 'fA Ann - 'b L /,1 /L,4JL a 1,L 18,02SY a LM,SY 1,141 20 cont. 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, 1998 Cash and investments Restricted cash and investments Total cash and cash equivalents Reconciliation of operating income (loss) to net cash provided by operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by operating activities Depreciation expense (Increase) decrease in accounts receivable (Increase) decrease in deposits 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 claims payable Increase (decrease) in deferred income Increase (decrease) in landfill closure and postclosure Net cash provided by (used in) operating activities Fiduciary Proprietary Fund Types Fund Type Non - Internal expendable Enterprise Service Trust $ 12,555,286 $ 2,466,153 $___2_34 ,428 11,916,585 0 0 $ 24,471,871 $ 2,466,153 $ 234,428 $ 2,300,585 $ (496,269) $ 6,781 2,710,800 171,218 0 (9,484) 0 0 19,132 0 23,550 3,837 0 358,788 (22,935) 0 221,106 0 (22,287) 3,531 0 3,952 0 0 0 115,532 0 0 0 0 (169,580) 0 0 $ 5,417,430 $ (205,954) $ 6,781 NON -CASH TRANSACTIONS: Fixed assets in the amount of $181,756 were transfered from the General Fixed Assets Account Group to the Enterprise Funds. Fixed assets in the amount of $96,497 were transferred from the General Fixed Assets Account Group to the Internal Service Funds. These transactions resulted in an increase in Contributed Capital in the Enterprise Funds and Internal Service Funds by a corresponding amount. The accompanying notes are an integral part of this statement. 21 Statement 5 Page 2 Total Component Total Primary Unit Reporting Government Salina Entity (Memorandum Airport (Memorandum Only) Authority Only) $ 15,255,867 $ 1,133,689 $ 16,389,556 11,916,585 85,000 12,001,585 $ 27,172,452 $ 1,218,689 $ 28,391,141 $ 1,811,097 $ (535,794) $ 1,275,303 2,882,018 891,612 3,773,630 (9,484) (40,817) (50,301) 19,132 0 19,132 27,387 0 27,387 335,853 35,313 371,166 221,106 0 221,106 (18,756) 0 (18,756) 3,952 0 3,952 115,532 0 115,532 0 18,860 18,860 (169,580) 0 (169,580) $ 5,218,257 $ 369,174 $ 5,587,431 22 Tit is page left blank intentionally. City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1998 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The City of Salina is a municipal corporation governed by five elected commissioners. As required by generally accepted accounting principles, these financial statements present the City and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the City's operations and so data from these units is combined with data of the primary government. The city has no blended component units to present for the year ended December 31, 1998. Each discretely presented component unit is reported in a separate column in the combined fmancial statements to emphasize it is legally separated from the government. Discretely Presented Component Units City of Salina Airport Authority - The Salina Airport Authority (Airport Authority) was created for the purpose of accepting as surplus property portions of the former Schilling A.F.B which 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. 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 governing board is appointed by the Mayor of the City of Salina. 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 governmental 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, 1998. Complete financial statements for each of the individual component units may be obtained at the entity's administrative offices. Salina Airport Authority Housing Authority of 3237 Arnold Ave. the City of Salina Salina, KS 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 Salina County-City Building Authority was organized by the City and County 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. Board of Building Health Authority Total fund balance, December 31, 1998 $ 556,261 $ 308,842 Total revenues, year ended December 31, 1998 Total revenues from City of Salina 23 2,716,106 608,119 425,485 223,566 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1998 I. 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 or soon enough thereafter to pay liabilities of the current period. The City considers property taxes as available if they are collected within 60 days after year end. A one - year availability period is used for revenue recognition for all other governmental fund revenues. Expenditures are recorded when the related fund liability is incurred, except for unmatured 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, franchise taxes, licenses, interest revenue, special assessments and charges for services are susceptible to accrual. Sales taxes collected and held by the State at year end on behalf of the City are also recognized as revenue. 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 pea i _. J Deferred revenues also arise when resources are received by the City before it has a legal claim to them, as when grant monies are received prior to the incurrence of 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 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 funds account for the servicing of the general long -term debt not being financed by proprietary or nonexpendable trust funds of the City. 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 of the City. 24 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1998 I. 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 luse the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. The government applies all applicable FASB pronouncements in accounting and reporting for its proprietary operations. Proprietary funds include the following fund types: The enterprise funds are used to account for those operations that are financed and operated in a manner similar to private business or where the board has decided that the determination of revenues earned, costs incurred and/or net income is necessary for management accountability. The 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. The expendable trust funds are 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 of the City. The general long -term debt account group is used to account for general long -term debt and certain other liabilities of the City. 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. 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. 25 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1998 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued C. Assets, Liabilities and Equity- continued 2. Receivables and Payables Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal 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 uncollectibles. Property taxes receivable. The determination of assessed valuations and the collections of property taxes for all political subdivisions in the State of Kansas is the responsibility of the various counties. The office of the County Appraiser annually determines assessed valuations 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. One -half of the property taxes are due December 20, prior to the fiscal year for which they are budgeted, and the second half is due the following June 20. 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. Collection of current year property tax by the County Treasurer is not completed, apportioned nor dish- ibuted 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. Accruals of uncollected current year property taxes are offset by deft n-1 revenue and are identical to the adopted budget for 1999. It is not practicable to apportion delinquent taxes held by the County Treasurer and, further, the amounts thereof are not material in relationship to the financial statements taken as a whole. 3. Inventories 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 purchased rather than when consumed. 4. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. S. Restricted Assets Certain proceeds of enterprise fund revenue bonds and general obligation 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 ". Q1 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1998 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued C. Assets, Liabilities and Equity - continued 5. Restricted Assets - continued The "Bond Escrow" account is used to report resources set aside in a "crossover refunding" transaction. Under the crossover arrangement certain bonds of the City were refunded, with the proceeds placed in the bond escrow account. The bond escrow account and the refunded bonds will remain on the City's books until a specified future date when the bonds will be considered defeased and the City will assume the repayment of the refunding bonds. 6. 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 government) are not capitalized. The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend assets' lives are not included in the general fixed assets account group. Property, plant and equipment in the proprietary funds of the government are recorded at cost. Property, plant and equipment donated to the 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 and similar trust funds of the government using the straight line method over the following estimated useful lives: Assets Years Buildings 20 -50 Other Equipment 5 -10 Vehicles 7 -10 Utility Plant & Equipment 10 -70 27 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1998 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued C. Assets, Liabilities and Equity - continued 7. 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 which 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. 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 governmental fund that will pay it. Amounts of vested or accumulated vacation leave 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. In accordance with the provisions of Statement No. 16 of the Governmental Accounting Standards Board, Accounting for Compensated Absences, a liability is recorded for accumulated rights to receive sick pay benefits that are payable upon termination of employment. 8. 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. 9. Long -Term Obligations The government 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. 28 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1998 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued C. Assets, Liabilities and Equity - continued 10. 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 developers, customers or other funds. 11. 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 /expenses in the fund that is reimbursed. All other interfund transactions, except quasi - external transactions and reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as operating transfers. 12. 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 generally accepted accounting principles. Interfund eliminations have not been made in the aggregation of this data. 13. 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 government'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. IL 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 funds and enterprise funds. The statutes provide for the following sequence and timetable in the adoption of the legal annual operating budget. LT.] City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1998 II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY - continued A. Budgetary Information - continued a) Preparation of the budget for the succeeding calendar year on or before August 1st of each year. b) Publication in a local newspaper of the proposed budget and the notice of public hearing on the budget on or before August 5th. c) Public hearing on or before August 15th of each year, but at least ten days after publication of the notice of hearing. d) 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 such amendments for fiscal year 1998. 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, Fair Housing, Special Law Enforcement, Police Grants, Traffic Safety Grant, Housing Rehabilitation, Dare Donations, Neighborhood Park Fees and CDBG -SAA. A legal operating budget is not required for the following Enterprise and Internal Service funds: Solid Waste Construction, Water and Sewer Principal and Interest, Water and Sewer Bond Reserve, Water and Sewer Construction and Reserve funds and Health Insurance 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. Expenditures exceeded available budget authority in the Special Liability special revenue fund. (KSA 79 -2935) 30 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1998 II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY - continued B. Proprietary Fund Type Budgets Actual operations (budgetary basis) compared to budget for proprietary fund types for fiscal year 1998 are as follows: Internal Service Risk Management Revenues Actual Budget Variance Enterprise 594,457 765,481 171,024 Sanitation Revenues $ 1,364,074 $ 1,259,750 $ 104,324 Expenditures 1,519,906 1,759,148 239,242 Solid Waste Disposal Division Revenues 2,586,957 2,355,000 231,957 Expenditures 2,424,903 3,075,996 651,093 Golf Course Division Revenues 763,381 746,900 16,481 Expenditures 784,627 845,928 61,301 Water and Sewer 0 2,250 (2,250) Revenues 11,025,341 11,165,500 (140,159) Expenditures 7,849,785 11,794,563 3,944,778 Other financing sources (uses) (2,605,141) (2,442,123) (163,018) Internal Service Risk Management Revenues 345,563 275,871 69,692 Expenditures 594,457 765,481 171,024 Workmen's Compensation Reserve Revenues 84,733 267,123 (182,390) Expenditures 282,298 1,516,857 1,234,559 Central Garage Division Revenues 746,899 822,998 (76,099) Expenditures 773,832 903,430 129,598 Information Services Revenues 708,002 669,859 38,143 Expenditures 618,077 803,900 185,823 Other financing sources 0 2,250 (2,250) C. Deficit Fund Equity The following funds had deficit fund equity at December 31, 1998: HUD Community Development $(30,024), Housing Rehabilitation $(261,261) and Capital projects fund $(30,998). These deficits will be recovered from reimbursements from grantor agencies, or in the event certain costs are disallowed, from general funds. 31 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1998 1I. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY - continued D. 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 1998. Principal and interest account Actual Required $ 1,055,127 $ 394, 198 Bond reserve account 1,750,043 1,711,600 The City was in compliance with the reserve account balance requirements at December 31, 1998. E. Legal Debt Margin The City is subject to the municipal finance law of the state of Kansas which limits the net 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, 1998, the statutory limit for the City was $84,176,989 providing a debt margin of $58,663,299. I11. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS A. Deposits and Investments Deposits - At year end, the carrying amount of the City's deposits was $2,667,252 plus $7,288 cash on hand and the bank balance was $3,441,032. The difference between the carrying amount and the bank balance is outstanding checks and deposits in transit. Of the bank balance, $165,329 was covered by federal deposit insurance and the remaining $3,275,703 was collateralized by pledged securities held under joint custody receipts issued by a third -party bank in the City's name. The third -party bank holding the pledged securities is indeperrdew of the pledging bank. The pledged securities are held under a tri -party custodial agreement signed 6�; ah 3.z,�, parties: the City, the pledging bank, and the independent third -party bank holding the pledged securities. An unsecured and uncollateralized deposit of $5,545 was held by the Fiscal Agency Department of the Kansas State Treasurer. The carrying amount of deposits for the Housing Authority of the City of Salina, a discretely presented component unit, was $714,264 and the bank balance was $714,264. Of the bank balance, $714,264 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 for the Salina Airport Authority, a discretely presented component unit, was $1,218,689 and the bank balance was $1,256,606. Of the bank balance, $1,256,606 was covered by federal depository insurance or by collateral held by the entity's agency in the Authority's name. 32 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1998 III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued A. Deposits and Investments - continued Investments - State statutes authorize the City to invest in US Treasury bills and notes, repurchase agreements, and the State Treasurer's investment pool. 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 entity 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 dealer 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 dealer's bank. The carrying amount of investments approximates fair value. At December 31, 1998, the City had invested $13,313,393 in the State Treasurer's municipal investment pool. 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 categories of the City's investments are as follows: Category Carrying 3 Amount U.S. Treasury Bills $ 10,400,855 $ 0 $ 0 $ 10,400,855 Bond escrow - investment in U.S. Treasury Bills 10,856,200 0 0 10,856,200 Pooled investment - State of Kansas 13,313,393 $ 34,570,448 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. 33 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1998 III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued A. Deposits and Investments - continued The cash and investments by fund type at December 31, 1998 are as follows: Cash and Separate Investments Deposits Total Primary Government General Special Revenue Debt Service Capital Projects Enterprise Internal Service Trust & Agency Subtotal primary government Component Units Salina Airport Authority Salina Housing Authority Subtotal component units Total reporting entity B. Receivables Restricted Unrestricted $ 5,655,273 $ 0 $ 5,655,273 $ 0 $ 5,655,273 3,231,365 0 3,231,365 0 3,231,365 741,310 5,545 746,855 0 746,855 205,929 0 205,929 0 205 „929 13,615,671 10,856,200 24,471,871 11,916,585 12,555,286 2,466,153 0 2,466,153 0 2,4661, 153 449,867 23,217 473,084 0 4731,084 26,365,568 10,884,962 37,250,530 11,916,585 25,333,945 1,218,689 0 1,218,689 85,000 1,133,689 714,264 0 714,264 67,888 646,376 1,932,953 0 1,932,953 152,888 1,780,065 $ 28,298,521 $ 10,884,962 $ 39,183,483 $ 12,069,473 $ 27,114,010 Receivables as of year end, including the applicable allowances for uncollectible accounts, are as follows: Special Debt General Revenue Service Enterprise Total Prinuuy Coven:nrent Receivables: Accounts Taxes Grants Interest Notes Gross receivables Less: allowance for $ 486,308 $ 62,635 $ 3,051,231 3,728,025 5,791 180 121,156 0 0 10,951 3,664,486 3,801,791 0 $ 870,831 $ 1,419,774 916,477 0 7,695,733 0 0 5,971 0 0 121,156 0 0 10,951 916,477 870,831 9,253,585 uncollectibles (294,104) (4,890) 0 (83,458) (382,452) Total $ 3,370,382 $ 3,796,901 $ 916,477 $ 787,373 8,871,133 Component Units Salina Airport Authority Salina Housing Authority Total 34 796,870 87,033 883,903 $ 9,755,036 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1998 III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued C. Interfund Receivables and Payables The composition of interfund balances as of December 31, 1998, is as follows: Due from/to other funds: Receivable Fund Payable Funds Amount General Fund Special Revenue Funds HUD Community Development $ 40,975 Housing Rehabilitation 251,595 $ 292,570 D. Fixed Assets The following is a summary of the changes in the general fixed assets account group during the current year IN Balance Balance January 1, December 31, 1998 Additions Deletions 1998 Primary Government Land $ 2,589,193 $ 0 $ 0 $ 2,589,193 Land improvements 1,068,238 51,566 0 1,119,804 Buildings 10,788,238 462,519 0 11,250,757 Machinery and equipment 9,217,377 957,114 288,936 9,885,555 Sub total primary government 23,663,046 1,471,199 288,936 24,845,309 Component units Salina Housing Authority 6,585,981 237,590 0 6,823,571 Total reporting entity $ 30,249,027 $ 1,708,789 $ 288,936 $ 31,668,880 IN City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1998 III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued D. Fixed Assets - continued The following is a summary of proprietary fund -type fixed assets at December 31, 1998: 85,750,805 1,292,692 32,984,548 Less accumulated depreciation 31,843,228 856,516 8,863,249 Net fixed assets $ 53,907,577 $ 436,176 $ 24,121,299 Interest costs are capitalized when incurred by proprietary funds and similar component units on 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. 36 Component Primary Government Unit Internal _ Salina Enterprise Service Airport Funds Funds Authority Land $ 514,050 $ 0 $ 7,526,173 Land improvements 5,038,582 0 0 Water plant and equipment 34,794,544 0 0 Sewer plant and equipment 37,590,736 0 0 Airfield and infrastructure 0 0 17,290,397 Equipment 2,664,787 1,256,709 1,129,697 Vehicles 1,440,693 13,911 0 Buildings 575,612 22,072 7,038,281 Construction in progress 3,131,801 0 0 85,750,805 1,292,692 32,984,548 Less accumulated depreciation 31,843,228 856,516 8,863,249 Net fixed assets $ 53,907,577 $ 436,176 $ 24,121,299 Interest costs are capitalized when incurred by proprietary funds and similar component units on 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. 36 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1998 III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued E. General Long -Term Debt Following is a summary of changes in long -term debt for fiscal year 1998: Balance January 1, 1998 Additions Primary Government General obligations bonds Revenue bonds Loans payable Temporary notes Accrued compensation Component Units General obligations bonds Temporary notes Revenue bonds Loans payable Mortgage Payable Balance December 31, Reductions 1998 $ 10,490,000 $ 9,467,420 $ 1,800,000 $ 18,157,420 33,875,000 0 7,575,000 Primary Government 26,300,000 0 935,855 0 935,855 9,470,000 2,250,000 5,180,000 5.80% to 7.875 6,540,000 2,173,469 28,693 0 90,000 2,202,162 1,300,000 5.20% to 7.25% $ 56,008,469 $ 12,681,968 $ 14,555,000 $ 54,135,437 Crawford Street 1991, due 10/1/2001 1,785,000 4.50% to 6.50% $ 1,895,000 $ 4,440,000 $ 165,000 $ 6,170,000 2,830,000 0 2,830,000 350,000 0 605,000 0 50,000 Internal Improvemetns 1994, due 10/1/2004 555,000 0 421,796 48,013 2,434,000 373,783 681,396 0 22,916 4.65% to 5.00% 658,480 $ 6,011,396 $ 4,861,796 $ 3,115,929 $ 7,757,263 The following is a detailed listing of the city's long -term debt including general obligation bonds, revenue bonds, temporary notes and loans payable: 37 Original Interest Bonds Issue Rates Outstanding Primary Government _ General Obligation Internal Improvements 1989, due 12/1/99 $ 1,175,000 5.80% to 7.875 $ 115,000 Broadway Overpass 1990, due 12/1/2000 455,000 5.75% to 7.75% 90,000 Internal Improvements 1991, due 10/1/2001 1,300,000 5.20% to 7.25% 390,000 Street and Utilities 1991, due 10/1/2001 1,417,000 5.40% to 7.40% 420,000 Crawford Street 1991, due 10/1/2001 1,785,000 4.50% to 6.50% 525,000 Crawford Street 1992, due 10/1/2002 1,240,000 3.75% to 5.90% 500,000 Internal Improvements 1993, due 10/1/2003 685,000 3.50% to 5.50% 350,000 Internal Improvemetns 1993, due 10/1/2003 1,800,000 3.40% to 5.00% 940,000 Internal Improvemetns 1994, due 10/1/2004 1,175,000 4.70% to 6.50% 695,000 Internal Improvements 1995, due 10/1/2005 2,434,000 4.75% to 6.50% 1,700,000 Internal Improvements 1996, due 8/01/2006 1,847,000 4.65% to 5.00% 1,480,000 Internal Improvements 1997, due 2/01/2012 1,650,000 4.50% to 5.25% 1,485,000 Internal Improvements 1998, due 8/01/2003 3,900,000 4.10% to 5.001% 3,900,000 Water /sewer refunding 1998, due 8/01/2008 5,567,420 3.80% to 4.40% 5,567,420 Total general obligation bonds $ 18,157,420 37 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1998 III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued E. General Long -Term Debt— continued Revenue Bonds Water and Sewer 1992, due 10/1/2012 Water and Sewer 1993, due 10/1/2013 Revenue Refunding 1994, due 9/1/2012 Total revenue bonds Loans Payable Kansas Public Water Supply, due 2/01/2020 Temporary Notes Street and Subdivision, due 3/1/99 Library Project, due 6/1/2000 Subdivision Projects, due 8/1/2001 Landfill, due 9/1/01 Total temporary notes Component Unit Salina Airport Authority General Obligation Bonds Economic Development 1990, due 2010 Economic Development 1990, due 2010 General Obligation 1993, due 2003 General Obligation 1993, due 2003 General Obligation 1998, due 2007 Total general obligation bonds Revenue Bonds Leasehold revenue 1991, due 2006 Loans Payable Kansas Dept of Commerce & Housing, due 2007 Total bonds Housing Authority of f the City of Salina Mortgage Payable to Federal Financing Bank 38 Original Interest Bonds Issue Rates Outstanding $ 15,000,000 5.40% to 7.40% $ 12,225,000 3,200,000 4.50% to 5.25% 2,685,000 11,390,000 4.30% to 5.25% 11.390.000 $ 26,300,000 935,855 4.29% $ 935,855 4,090,000 4.10% $ 4,090,000 310,000 4.00% to 4.40% 200,000 750,000 3.70% 750,000 1,500,000 3.75% to 3.87% 1,500,000 6,540,000 1,900,000 6.40% to 8.38% 785A-1i" 773,000 6.50% to 8.50% 580,000 375,000 3.40% to 5.00% 210,000 275,000 3.85% to 4.75% 155,000 4,440,000 4.10% to 4.35% 1,440,000 6,170,000 850,000 5.00% to 7.25% 555,000 421,796 2.00% 373,783 $; 7,098,783 925,473 6.60% $ 658,480 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1998 I1I. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued E. General Long -Term Debt - continued Interest paid in 1998 is as follows: Primary government General obligation bonds $ 555,786 Revenue bonds 1,157,778 Temporary notes 212,705 Component Unit Outstanding Salina Airport Authority 156,973 Housing Authority of Salina 44,972 Annual debt service requirements to maturity for general obligation bonds to be paid with tax levies - $ 18,157,420 $ 4,347,544 $ 22,504,964 General Obligation - Primary Government Bonds Interest Year Outstanding Due Total 1999 $ 2,519,866 $ 993,053 $ 3,512,919 2000 2,395,234 739,259 3,134,493 2001 2,364,130 620,579 2,984,709 2002 1,937,288 504,624 2,441,912 2003 1,830,447 413,307 2,243,754 To maturity 7,110,455 1,076,722 8,187,177 $ 18,157,420 $ 4,347,544 $ 22,504,964 39 General Obligation- Component Units Bonds Interest Year Outstanding Due Total 1999 $ 625,000 $ 347,435 $ 972,435 2000 635,000 271,475 906,475 2001 640,000 238,500 878,500 2002 655,000 207,170 862,170 To maturity 3,615,000 625,483 4,240,483 $ 6,170,000 $ 1,690,063 $ 7,860,063 39 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1998 III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued E. General Long -Term Debt - continued Annual debt service requirements to maturity for revenue bonds to be paid with utility revenues- $ 26,300,000 $ 12,880,460 $ 39,180,460 Annual debt service requirements to maturity for revenue bonds to be paid with service revenues- Revenue Bonds - Primary Government Bonds Interest Year Outstanding Due Total 1999 $ 700,000 $ 1,441,558 $ 2,141,558 2000 735,000 1,396,058 2,131,058 2001 1,475,000 1,356,628 2,831,628 2002 1,565,000 1,285,253 2,850,253 2003 1,660,000 1,207,883 2,867,883 To maturity 20,165,000 6,193,080 26,358,080 $ 26,300,000 $ 12,880,460 $ 39,180,460 Annual debt service requirements to maturity for revenue bonds to be paid with service revenues- Annual debt service requirements to maturity for temporary notes - to be paid through the issuance of general obligation bonds - Revenue Bonds- Component Units Bonds Interest Year Outstanding Due Total 1999 $ 5,440,000 $ 302,863 $ 5,742,863 2000 60,000 35,005 95,005 2001 60,000 31,045 91,045 2002 65,000 26,995 91,995 To maturity 315,000 58,930 373,930 $ 555,000 $ 190,527 $ 745,527 Annual debt service requirements to maturity for temporary notes - to be paid through the issuance of general obligation bonds - 40 Temporary Notes - Primary Government Notes Interest Year Outstanding Due Total 1999 $ 5,440,000 $ 302,863 $ 5,742,863 2000 600,000 51,550 651,550 2001 500,000 19,350 519,350 $ 6,540,000 $ 373,763 $ 6,913,763 40 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1998 III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued E. General Long -Term Debt -continued Annual debt service requirements to maturity for mortgage to be paid from Housing Authority revenues- Annual debt service requirements to maturity for loans payable to be paid from service revenues- Mortgage - Component Unit Mortgage Interest Year Outstanding Due Total 1999 $ 25,181 $ 42,707 $ 67,888 2000 26,894 40,994 67,888 2001 28,724 39,164 67,888 2002 30,678 37,210 67,888 2003 32,765 35,123 67,888 To maturity 514,238 200,570 714,808 $ 658,480 $ 395,768 $ 1,054,248 Annual debt service requirements to maturity for loans payable to be paid from service revenues- Temporary notes. All temporary notes were issued with maturities in excess of one year, and therefore are reported in the general long -term debt account group. 41 Loan - Primary Government Loan Interest Year Outstanding Due Total 1999 $ 0 $ 0 $ 0 2000 15,013 20,074 35,087 2001 30,998 39,175 70,173 2002 32,343 37,831 70,174 2003 33,745 36,429 70,174 To maturity 823,756 334,108 1,157,864 $ 935,855 $ 467,617 $ 1,403,472 Loan - Component Unit Loan Interest Year Outstanding Due Total 1999 $ 48,013 $ 9,132 $ 57,145 2000 48,978 8,167 57,145 2001 49,963 7,182 57,145 2002 50,967 6,178 57,145 To maturity 175,862 15,106 190,968 $ 373,783 $ 45,765 $ 419,548 Temporary notes. All temporary notes were issued with maturities in excess of one year, and therefore are reported in the general long -term debt account group. 41 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1998 E. General Long -Term Debt —continued Advance refunding. The City issued $6,010,000 of general obligation bonds to provide resources to purchase US Government and State and Local Government Series securities that were placed in an irrevocable trust for the purpose of generating resources for all debt service payments on $6,915,000 of refunded revenue bonds. As a result, the refunded bonds are considered to be defeased and the liability has been removed from the Water and Sewer Utility Fund. The refunding was undertaken to remove restrictive bond covenants associated with the revenue bonds and to reduce total future debt service payments. The reacquisition price exceeded the net carrying value amount of the old debt by $442,500. This amount is being netted against the new debt and amortized over the new debt's life, which is the same as the life of the refunded debt. The transaction resulted in an economic gain of $1,297,653 and a reduction of $1,835,671 in future debt service payments. 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, 1998, the following outstanding bonds are considered defeased: 1990 - A Refunding Issue defeased in 1996 $ 2,055,000 1994 - B Revenue Issue defeased in 1998 1,100,000 1990 - A Revenue Issue defeased in 1998 3,180,000 1990 - B Revenue Issue defeased in 1998 2,210,000 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 fond. 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 liability 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 priva.te: enterprises have executed mortgage notes or leases with the City. The City is not responsible for paymc is 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 payment schedule related to the original debt. At December 31, 1998, total outstanding conduit debt was $31,765,847. 42 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1998 III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued F. Reconciliation of Transfers Transfers are made between funds as the need arises. A reconciliation between funds follows: Transfers from General $ Special Revenue Funds Transfers to Special General Revenue Total 0 $ 591,127 $ 591,127 Business Improvement District 17,000 0 17,000 Tourism and Convention 0 285,945 285,945 General $ 17,000 $ 877,072 $ 894,072 Fixed Residual equity transfers were made at year end to close projects in the following fund. January 1, Assets Transfers from Internal Service Funds Transfers to Central Garage $ 16,611 Capital 16,611 Information Services 508,435 General Projects Debt Fund Funds Service Fund Total General Fund $ 0 $ 93,892 $ 0 $ 93,892 Speciacl Revenue Funds 409,296 0 0 409,296 Capital Projects Funds 0 0 5,876 5,876 $ 8,994,706 $ 409,296 $ 93,892 $ 5,876 $ 509,064 G. Contributed Capital The changes in the City's contributed capital accounts for its proprietary and internal service funds were as follows: 43 Contributing Source General Balance Fixed Balance January 1, Assets December 31, Internal Service Funds Central Garage $ 16,611 $ 0 $ 16,611 Information Services 508,435 96,497 604,932 Enterprise Funds Sanitation 5,187 29,334 34,521 Solid Waste 86,440 550 86,990 Municipal Golf Course 1,700 152,422 154,122 Water & Sewer 8,385,683 0 8,385,683 $ 8,994,706 $ 278,803 $ 9,282,859 43 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1998 IV. 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 Kansas statutes (KSA 74 -4901 et seq). KPERS and KP &F provide 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 (6111 S. Kansas Avenue, Suite 100, Topeka, Kansas 66603 -3803) or by calling 1- 800 - 228 -0366. Funding policy - KSA 74 -4919 establishes the KPERS member - employee contribution rate at 4 °,o of covered salary. KSA 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 established for calendar year 1998 is 2.78 %. The City employer contributions to KPERS for the years ending December 31, 1998, 1997 and 1996 were $222,889, $194,190, and $176,658, respectively, equal to the required contributions for each year. The KP &F employer rate established for 1998 is 13.9 %. 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, 1998, 1997 and 1996 were $811,680, $808,561, and $716,750, 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. Vacation and Sick Pay The City's policies regarding vacation and sick pay permit employees to accumulate a maximum of eighty to one hundred sixty hours of vacation time depending on years of service. Unused vacation time may be carved over to subsequent years. Current year accumulated vacation pay is payable upon employment termination.. Sick leave may be accumulated without limitation. At December 31, 1998 accrued compensated absences totaled $2,202,162. D. 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 or her salary to purchase benefits offered through the Plan. Benefits offered through the Plan include various insurance and disability benefits. 44 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1998 IV. OTHER INFORMATION - continued E. 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; and natural disasters for which the city carries commercial insurance. Settlements of claims did not exceed coverage for the years ended December 31, 1998, 1997 or 1996. The city established a limited risk management program for workers' compensation in 1991. 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 is 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: 1998 1997 Unpaid claims, January 1 $ 42,881 $ 128,986 Incurred claims (including IBNRs) 354,393 90,023 Claim payments (143,861) (176,128) Unpaid claims, December 31 $ 253,413 $ 42,881 The city established a limited risk management program for employee health and dental insurance in 1998. 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 is reported 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: Unpaid claims, January 1 Incurred claims (including IBNRs) Claim payments Unpaid claims, December 31 F. Capital Projects 1998 1997 345,000 $ 2,331,122 1,861,611 (2,426,122) (1,516,611) $ 250,000 $ 345,000 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, 1998: 45 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1998 IV. OTHER INFORMATION - continued F. Capital Projects —continued G. Subsequent Events On February 1, 1999, the city issued $4,625,000 in temporary notes at a rate of 3.05 %. The proceeds are to be used to refinance the 1997 -3 temporary note issue. Also on February 1, 1999 the city issued: $650,000 in temporary notes at a rate of 3.2 %. The proceeds are to be used as financing for the Riffel and Eastview subdivisions. On May 10, 1999, the city issued $2,000,000 in temporary notes at a rate of 3.854010°/x. The proceeds are to be used as financing for the Centennial Road reconstruction. H. 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. Aiiy 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, 1998. 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 I. 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 $986,591 reported as landfill closure and postclosure care liability at December 31 represents the cumulative amount reported to date based on the use of 31.5% of the estimated capacity of the landfill, plus a remaining $575,057 estimated closure costs for the pre- subtitle D cell, which stopped accepting waste in 1994. The City's solid waste fund will recognize the remaining estimated cost of closure and postclosure care of $2,880,772 as the remaining estimated capacity is filled over the remaining life expectancy of 52 years. 46 Project Total Project Project Name Authorization Expenditures Magnolia/1 -35 Interchange $ 5,939,000 $ 5,447,291 Subdivision 1996 880,190 900,000 Subdivision 1997 816,666 550,925 Subdivision 1998 949,976 778,157 Subdivision 1998 II 878,843 628,41.5 Cart paths 257,065 148,319 Schilling Drainage 297,129 129,37.7 North Ohio 800,000 24,650 Magnolia - Rockhurst to Belmont 375,000 1,031 South Ninth Street 3,001,145 2,610,58:3 Ninth/Claflin Drainage 609,438 42,928 Centennial Road Reconstruction 2,739,497 284 G. Subsequent Events On February 1, 1999, the city issued $4,625,000 in temporary notes at a rate of 3.05 %. The proceeds are to be used to refinance the 1997 -3 temporary note issue. Also on February 1, 1999 the city issued: $650,000 in temporary notes at a rate of 3.2 %. The proceeds are to be used as financing for the Riffel and Eastview subdivisions. On May 10, 1999, the city issued $2,000,000 in temporary notes at a rate of 3.854010°/x. The proceeds are to be used as financing for the Centennial Road reconstruction. H. 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. Aiiy 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, 1998. 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 I. 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 $986,591 reported as landfill closure and postclosure care liability at December 31 represents the cumulative amount reported to date based on the use of 31.5% of the estimated capacity of the landfill, plus a remaining $575,057 estimated closure costs for the pre- subtitle D cell, which stopped accepting waste in 1994. The City's solid waste fund will recognize the remaining estimated cost of closure and postclosure care of $2,880,772 as the remaining estimated capacity is filled over the remaining life expectancy of 52 years. 46 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1998 IV. OTHER INFORMATION — continued I. Municipal Solid Waste Landfill - continued These amounts are based on what it would cost to perform all closure and postclosure care in 1998. 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 US 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. J. 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, 1998 is presented below. Operating revenues Depreciation expense Net operating income (loss) Net income (loss) Property, plant and equipment additions Net working capital Total assets Bonds and temporary notes payable Total equity IC Environmental Matter The Kansas Department of Health and Environment (KDHE) issued a report in 1994 indicating tie presence of volatile organic compounds at levels requiring remediation at the Salina Public Water Supply Wells Site (the Site). The City adopted a pro- active 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 utility fund. L. Restatement of Retained Earnings Retained earnings in the Solid Waste enterprise fund have been restated to reflect the correction of a prior period error in computing the liability associated with closure and post - closure care costs at the City's landfill. The effect of the restatement was to decrease beginning retained earnings by $180,169. Retained earnings in the Golf Course enterprise fund have been restated to reflect the correction of a prior period error for the overstatement of bonds payable. The effect of the restatement was to increase beginning retained earnings by $114,192. 47 Solid Golf Water Waste Course and Sanitation Disposal Division Sewer Total $ 1,354,952 $ 2,514,526 $ 755,764 $ 11,495,756 $ 16,120,998 56,827 378,269 48,066 2,227,638 2,710,800 (61,615) (69,302) (610) 2,432,112 2,300,585 (38,461) (130,149) (9,578) 2,036,472. 1,858,284 143,279 428,015 38,827 3,503,186, 4,113,307 354,332 (87,749) 77,351 20,548,618 20,892,552 815,063 7,432,875 565,583 71,358,639 80,172,160 0 2,843,658 169,153 32,803,275 35,816,086 731,125 2,975,971 352,970 37,495,849 41,555,915 The Kansas Department of Health and Environment (KDHE) issued a report in 1994 indicating tie presence of volatile organic compounds at levels requiring remediation at the Salina Public Water Supply Wells Site (the Site). The City adopted a pro- active 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 utility fund. L. Restatement of Retained Earnings Retained earnings in the Solid Waste enterprise fund have been restated to reflect the correction of a prior period error in computing the liability associated with closure and post - closure care costs at the City's landfill. The effect of the restatement was to decrease beginning retained earnings by $180,169. Retained earnings in the Golf Course enterprise fund have been restated to reflect the correction of a prior period error for the overstatement of bonds payable. The effect of the restatement was to increase beginning retained earnings by $114,192. 47 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. 48 City of Salina, Kansas Schedule I GENERAL FUND COMPARATIVE BALANCE SHEETS December 31, 1998 and 1997 ASSETS 1998 1997 Cash and investments $ 5,655,273 $ 5,188,535 Receivables Accounts 192,204 360,109 Taxes 3,051,231 2,598,707 Grants 5,791 Interest 121,156 242,035 Inventory 120,593 93,676 Due from funds 292,570 0 Total assets $ 9,438,818 $ 8,483,062 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ 229,451 $ 333,961 Retainage payable 0 48,703 Deferred revenue 2,193,856 1,887,093 Total liabilities 2,423,307 2,269,757 Fund balances Reserved for encumbrances 233,720 1,345,631 Reserved for inventory 120,593 93,676 Unreserved Undesignated 6,661,198 4,773,998 Total fund balances 7,015,511 6,213,305 Total liabilities and fund balances $ 9,438,818 $ 8,483,062 49 City of Salina, Kansas GENERAL FUND COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For the fiscal years ended December 31, 1998 and 1997 Revenues Taxes Intergovernmental Charges for services Fines Use of money and property Reimbursements Miscellaneous Total revenues Expenditures Current General government Public safety Public works Parks and recreation Cultural Community development Health and welfare Other Cash reserve Capital outlay Total expenditures Excess 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 Residual equity transfer in Residual equity transfer out Fund balances, December 31 50 Irmo $ 13,411,693 1,503,013 2,296,635 894,278 239,111 74,752 341,010 2,554,548 7,777,224 1,987,342 1,941,834 496,483 130,576 425,485 349,859 24,981 n All- 1'1 "1 - 17,000 (591,127) AL nAL (528,031) 486,802 6,213,305 Schedule 2 1997 $ 12,409,756 1,460,3 86 1,726,096 976,398 422,189 80,051 401,916 17,476,792 2,076,732 8,003,070 1,574,508 1,947,685 522,763 146,825 403,383 176,364 0 3,194,666 10 AAG nnL (569,204) 17,000 (329,866) 29,433 (283,433) (852,637) 6,978,607 409,296 244,234 (93,892) (156,899) $ 7,015,511 $ 6,213,305 City of Salina, Kansas GENERAL FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET For the fiscal years ended December 31, 1998 and 1997 Revenues Taxes Property Delinquent Motor vehicle Sales Franchise Total taxes Intergovernmental Bingo City - County revenue share LAVTR Liquor tax Federal grants State grants EMS - County Total intergovernmental Fees Recreation Activity fund Emergency medical services Fire protection outside city Other Total fees Fines Permits and inspection Charges for services Use of money and property Reimbursements Miscellaneous Total revenues 1998 Variance Favorable Actual Budget (Unfavorable) $ 1,718,814 $ 1,664,610 $ 26,839 24,000 232,674 261,872 9,559,567 8,653,567 1,950,520 1,930,000 13,488,414 12, 534,049 Actual 54,204 $ 1,470,370 $ 2,839 27,372 (29,198) 247,950 906,000 8,658,933 20,520 1,929,622 954,365 12,334,247 1997 Budget 1,432,214 $ 24,000 242,892 9,407,500 1,747,500 12,854,106 Schedule 3 Variance Favorable (Unfavorable) 38,156 3,372 5,058 (748,567) 182,122 (519,859) 19,275 24,148 (4,873) 19,366 24,148 (4,782) 341,945 339,251 2,694 333,417 324,686 8,731 379,594 379,594 0 373,458 373,458 0 102,571 84,142 18,429 87,916 82,957 4,959 0 55,000 (55,000) 441 0 441 39,652 0 39,652 31,603 0 31,603 614,186 690,000 (75,814) 614,186 415,000 199,186 1,497,223 1,572,135 (74,912) 1,460,387 1,220,249 240,138 390,764 237,000 153,764 243,972 237,000 6,972 0 126,000 (126,000) 117,031 126,000 (8,969) 763,273 467,584 295,689 452,528 421,400 31,128 0 110,000 (110,000) 84,425 110,000 (25,575) 189,416 202,500 (13,084) 218,938 207,700 11,238 1,343,453 1,143,084 200,369 1,116,894 1,102,100 14,794 894,278 1,000,000 (105,722) 976,398 900,0()0 76,398 307,627 288,575 19,052 297,737 313,575 (15,838) 962,940 642,461 320,479 588,502 543,202 45,300 359,991 700,200 (340,209) 381,378 700,000 (318,622) 74,752 51,000 23,752 80,051 51,000 29,051 33,382 100,000 (66,618) 104,179 150,000 (45,821) 18,962,060 18,031,504 930,556 17,339,773 17,834,232 (494,459) 51 City of Salina, Kansas Schedule 3 Page GENERAL FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET For the fiscal years ended December 31, 1998 and 1997 52 1998 1997 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Expenditures General government City commission $ 76,201 $ 96,600 $ 20,399 $ 86,412 $ 96,525 $ 10,113 City manager 279,264 302,323 23,059 290,518 296,164 5,646 Legal 88,441 96,900 8,459 60,912 96,200 35,288 Finance 360,215 340,469 (19,746) 347,201 334,805 (12,396) Personnel 208,623 163,220 (45,403) 165,507 153,965 (11,542) Buildings 741,998 687,993 (54,005) 364,224 333,918 (30,306) Human relations 95,711 126,909 31,198 102,611 122,361 19,750 Permits and inspection 275,142 260,079 (15,063) 260,948 244,222 (16,726) Gypsum Hill Cemetery 96,277 95,182 (1,095) 96,546 97,090 544 Contingency 197,439 270,000 72,561 198,764 265,000 66,236 Earned leave 72,194 0 (72,194) 0 0 0 Housing rehabilitation 63,443 75,000 11,557 87,341 75,000 (12,341) Public safety Police 3,639,537 3,682,326 42,789 3,410,044 3,431,143 21,099 Municipal court 592,703 717,367 124,664 735,729 71 1,519 (24,210) Fire 3,605,871 3,623,464 17,593 3,730,360 3,408,349 (322,011) Public works Engineering 289,640 251,629 (38,011) 246,857 242,501 (4,356) Streets 935,139 1,006,807 71,668 910,312 1,024,951 114,639 Flood works 128,002 134,068 6,066 114,174 123,000 8,826 Traffic control 480,512 514,498 33,986 163,038 163,735 697 Planning 180,965 180,641 (324) 174,149 176,777 2,628 Recreation Parks and recreation 784,941 794,239 9,298 774,790 759,937 (14,853) Swimming pools 87,660 80,700 (6,960) 83,055 71,990 (11,065) Neighborhood centers 58,731 74,288 15,557 68,238 66,896 (1,342) Recreation 1,010,503 1,021,647 11,144 1,021,602 1,006,365 (15,237) Cultural Arts and humanities 262,275 250,728 (11,547) 257,931 233,152 (24,779) Smoky Hill Museum 234,208 248,497 14,289 264,832 250,369 (14,463) Health and welfare Health 425,485 425,485 0 403,383 403,383 0 Community development Agency contracts 130,576 198,825 68,249 146,825 194,425 47,600 Capital outlay 1,127,798 935,000 (192,798) 3,749,489 2,415,187 (1,334,302) Other Data processing and internal charges 349,859 296,352 (53,507) 176,364 126,532 (49,832) Cash reserve 0 4,007,711 4,007,711 0 4,142,947 4,142,947 Total expenditures 16,879,353 20,958,947 4,079,594 18,492,156 21,068,408 2,576,252 Excess (deficiency) of revenues over(under)expenditures 2,082,707 (2,927,443) 5,010,150 (1,152,383) (3,234,176) 2,081,793 52 City of Salina, Kansas GENERALFUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET For the fiscal years ended December 31, 1998 and 1997 1998 1997 Schedule 3 Page Fund balances, January 1 3,508,943 2,664,335 Variance 4,512,205 3,302,176 Variance Prior year cancelled encumbrances 105,649 0 Favorable 345,219 0 Favorable Residual equity transfer in Actual Budget (Unfavorable) Actual Budget (Unfavorable) Other financing sources (uses) (93,892) 0 (93,892) 0 0 0 Operating transfer in $ 17,000 $ 17,000 $ 0 $ 261,234 $ 17,000 $ 244,234 Operating transfer out (591,127) (510,000) (81,127) (486,765) (100,000) (386,765) Sale of assets 46,096 15,000 31,096 29,433 15,000 14,433 Total other financing sources (uses) (528,031) (478,000) (50,031) (196,098) (68,000) (128,098) Excess (deficiency) of revenues and other sources over (under) expenditures and other uses 1,554,676 (3,405,443) 4,960,119 (1,348,481) (3,302,176) 1,953,695 Fund balances, January 1 3,508,943 2,664,335 844,608 4,512,205 3,302,176 1,210,029 Prior year cancelled encumbrances 105,649 0 105,649 345,219 0 345,219 Residual equity transfer in 409,296 741,108 (331,812) 0 0 0 Residual equity transfer out (93,892) 0 (93,892) 0 0 0 Fund balances, December 31 $ 5,484,672 $ 0 $ 5,484,672 $ 3,508,943 $ 0 $ 3,508,943 53 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. Utility fund - To account for the electric, gas, water and telephone costs of the City's operations except for those utility costs which are directly chargeable to Enterprise and Internal Service funds. Special liability fund - To account for liability and worker's compensation insurance costs. 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— 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. 54 City of Salina, Kansas SPECIAL REVENUE FUNDS - CONTINUED Housing rehabilitation - To account for grants received from the state to be used for housing rehabilitation. Fair housing fund - To account for grants received from the federal government to be used to monitor and mediate fair housing complaints. CDBG SAA — To account for grants received from the federal government to be used for improvement of secondary streets at the Airport Industrial Center. Special law enforcement fund - To account for revenues received from the sale of forfeited assets acquired during drug enforcement activities. Expenses are limited to capital items to be used for further drug enforcement activities. Police grants fund - To account for revenues received from grants which are to be used for special police activities, including the D.A.R.E. program. Dare donations - To account for donations to the D.A.R.E. program. Traffic safety grant fund - To account for revenues received from grants to be used for traffic enforcement. 55 City of Salina, Kansas SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 31, 1998 (With comparative totals for December 31, 1997) LIABILITIES AND FUND BALANCES Liabilities Accounts payable Retainage payable Due to funds Deferred revenue Total liabilities Fund balances Reserved for encumbrances Unreserved Undesignated (deficit) Total fund balances (deficit) Total liabilities and fund balances $ 0 $ 570 $ 0 0 0 0 0 0 0 2,929,763 248,400 0 2,929,763 248,970 0 0 13,924 0 629,470 464,215 105,540 $ 3,559,233 $ 727,109 $ 105,540 56 Flood & Employee Drainage ASSETS Benefits Improvements Utility Cash and investments $ 629,470 $ 478,709 $ 105,540 Receivables Accounts 0 0 0 Taxes 2,929,763 248,400 0 Grants 0 0 0 Notes 0 0 0 Due from funds 0 0 0 Total assets $ 3,559,233 $ 727,109 $ 105,540 LIABILITIES AND FUND BALANCES Liabilities Accounts payable Retainage payable Due to funds Deferred revenue Total liabilities Fund balances Reserved for encumbrances Unreserved Undesignated (deficit) Total fund balances (deficit) Total liabilities and fund balances $ 0 $ 570 $ 0 0 0 0 0 0 0 2,929,763 248,400 0 2,929,763 248,970 0 0 13,924 0 629,470 464,215 105,540 $ 3,559,233 $ 727,109 $ 105,540 56 Schedule 4 $ 0 $ 4,565 $ 0 0 0 0 0 7,603 2,436 $ 0 $ 741 $ 0 0 0 0 0 0 U Business Tourism 0 Special 0 Special Improvement and Neighborhood Parks and Special Liability District Convention Park Recreation Alcohol $ 64,603 $ 4,594 $ 2,453 $ 31,443 $ 118,198 $ 15,873 0 16,806 0 0 0 0 0 0 193,526 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 64,603 $ 21,400 $ 195,979 $ 31,443 $ 118,198 $ 15,873 $ 0 $ 4,565 $ 0 0 0 0 0 7,603 2,436 $ 0 $ 741 $ 0 0 0 0 0 0 U 12,16ti 2,436 0 0 0 0 0 741 14,992 0 0 0 0 0 64,6U3 9,232 193,543 31,443 117,457 15,873 $ 64,603 $ 21,400 $ 195,979 $ 31,443 $ 118,198 $ 15,873 57 cont. ASSETS Cash and investments Receivables Accounts Taxes Grants Notes Due from funds Total assets City of Salina, Kansas SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 31, 1998 (With comparative totals for December 31, 1997) LIABILITIES AND FUND BALANCES Liabilities Accounts payable Retainage payable Due to funds Deferred revenue Total liabilities Fund balances Reserved for encumbrances Unreserved Undesignated (deficit) Total fund balances (deficit) Total liabilities and fund balances Bicentennial Special Bicentennial Center Gas Center Event $ 1,051,279 $ 400,619 $ 44,356 0 40,439 0 356,336 0 0 0 0 0 0 0 0 $ 1,407,615 $ 441,058 $ 44,356 $ 9,239 $ 17,062 $ 0 18,684 0 0 0 0 0 0 0 0 442,146 0 0 937,546 423,996 - 14.356 1,379,692 423,996 44,356 $ 1,407,615 $ 441,058 $ 44,356 58 Schedule 4 Page 2 HUD Community 0 $ 9,666 0 $ 0 Community Development Heritage Housing Fair CDBG Development Revolving Commission Rehabilitation Housing SSA $ 0 $ 83,381 $ 1,323 $ 0 48,369 $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 180 0 0 0 10,951 0 0 0 0 0 0 0 0 0 0 0 $ 10,951 $ 83,381 $ 1,503 $ 0 48,369 $ 0 $ 0 $ 8,883 $ 0 $ 9,666 0 $ 0 0 0 0 0 0 0 40,975 0 0 251,595 0 0 0 0 0 0 0 0 40,975 8,883 0 261,261 0 0 0 0 0 0 0 0 (30,024) 74,498 1,503 (261,261) 48,369 0 (30,024) 74,498 1,503 (261,261) 48,369 0 $ 10,951 $ 83,381 $ 1,503 $ 0 48,369 $ 0 59 Cont. Cash and investments Receivables Accounts Taxes Grants Notes Due from funds Total assets City of Salina, Kansas SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 31, 1998 (With comparative totals for December 31, 1997) Special Law Police DARE ASSETS Enforcement Grants Donations $ 33,373 $ 86,183 $ 23,511 0 0 500 0 0 0 0 0 0 0 0 0 0 0 0 $ 33,373 $ 86,183 $ 24,011 LIABILITIES AND FUND BALANCES Liabilities Accounts payable Retainage payable Due to funds Deferred revenue Total liabilities Fund balances Reserved for encumbrances Unreserved Undesignated (deficit) Total fund balances (deficit) Total liabilities and fund balances $ 0 $ 0 $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 33,373 86,183 2A,011 33,373 86,183 24,011 $ 33,373 $ 86,183 $ 24,011 60 Traffic Safety Total Schedule 4 Page 3 $ 8,088 $ 3,231,365 $ 2,563,663 0 57,745 26,883 0 3,728,025 3,556,341 0 180 0 0 10,951 175 0 0 34,348 $ 8,088 $ 7,028,266 $ 6,181,410 $ 0 $ 53,162 $ 162,294 0 18,684 13,890 0 292,570 34,348 0 3,550,182 3,245,715 0 471,062 243,666 8,088 3,007,022 2,692,029 8,088 3,478,084 2,935,695 $ 8,088 $ 7,028,266 $ 6,181,410 w City of Salina, Kansas SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For the fiscal year ended December 31, 1998 (With comparative totals for the fiscal year ended December 31, 1997) 62 Flood & Employee Drainage Benefits Improvement Utility Revenues Taxes $ 3,139,335 $ 231,984 $ 88,464 Intergovernmental 0 0 0 Charges for services 0 0 0 Fines 0 0 0 Special assessments 0 0 0 Use of money and property 0 0 0 Reimbursements 888 0 0 Miscellaneous 0 0 0 Total revenues 3,140,223 231,984 88,464 Expenditures Current General government 2,962,530 63,845 0 Public safety 0 0 0 Public works 0 0 0 Community development 0 0 0 Health and welfare 0 0 0 Bicentennial Center 0 0 0 Capital outlay 0 0 0 Total expenditures 2,962,530 63,845 0 Excess (deficiency) of revenues over (under) expenditures 177,693 168,139 RR 464 Other financing sources (uses) Operating transfers in 0 310,000 0 Operating transfers out 0 0 0 Total other financing sources (uses) 0 310,000 0 Excess (deficiency) of revenues and other sources over (under) expenditures and other uses 177,693 478,139 , ' r Fund balances (deficit), January 1 451,777 0 391,589 Residual equity transfers out 0 0 (374,513) Fund balances (deficit), December 31 $ 629,470 $ 478,139 $ 105,540 62 Schedule 5 63 cont. Business Tourism Neighborhood Special Special Improvement and Park Parks and Special Liability District Convention Fees Recreation Alcohol $ 6,985 $ 0 $ 730,489 $ 0 $ 102,570 $ 102,571 0 0 0 0 0 0 0 0 0 31,010 0 0 0 1,115 0 0 0 0 0 75,594 0 0 0 0 0 203 2,311 433 4,863 266 0 0 0 0 0 0 0 0 0 0 11,000 0 6,985 76,912 732,800 31,443 118,433 102,837 2,967 56,765 428,919 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 87,333 0 0 0 0 0 0 0 0 0 0 78,798 0 2,967 56,765 428,919 0 78,798 87,333 4,018 20,147 303,881 31,443 39,635 15,504 0 0 0 0 0 0 0 (17,000) (285,945) 0 0 0 0 (17,000) (285,945) 0 0 0 4,018 3,147 17,936 31,443 39,635 15,504 95,368 6,085 175,607 0 77,822 369 (34,783) 0 0 0 0 0 $ 64,603 $ 9,232 $ 193,543 $ 31,443 $ 117,457 $ 15,873 63 cont. City of Salina, Kansas SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For the fiscal year ended December 31, 1998 (With comparative totals for the fiscal year ended December 31, 1997) 64 Bicentennial Special Bicentennial Center Gas Center Event Revenues _ Taxes $ 0 $ 0 $ 0 Intergovernmental 1,415,516 0 0 Charges for services 0 804,073 878,139 Fines 0 0 0 Special assessments 0 0 0 Interest 57,035 21,429 0 Reimbursements 0 0 0 Miscellaneous 30,277 0 0 Total revenues 1,502,828 825,502 878,139 Expenditures Current General government 0 0 0 Public safety 0 0 0 Public works 224,377 0 0 Community development 0 0 0 Health and welfare 0 0 0 Bicentennial Center 0 1,157,859 1,026,887 Capital outlay 899,505 87,634 0 Total expenditures 1,123,882 1,245,493 1,026,887 Excess (deficiency) of revenues over (under) expenditures 378,946 (419,991) C Other financing sources (uses) Operating transfers in 0 485,945 0 Operating transfers out 0 0 0 Total other financing sources (uses) 0 485,945 0 Excess (deficiency) of revenues and other sources over (under) expenditures and other uses 378,946 65,9_, Fund balances (deficit), January 1 1,000,746 358,042 193,104 Residual equity transfers out 0 0 0 Fund balances (deficit), December 31 $ 1,379,692 $ 423,996 $ 44,356 64 Schedule 5 Page 2 HUD Community Community Development Heritage Housing Fair CDBG Development Revolving Commission Rehabilitation Housing SSA $ 0$ 0$ 0$ 0$ 0$ 0 79,170 0 180 60,415 0 0 0 0 0 0 0 841,699 0 0 0 0 0 0 0 0 0 0 0 0 425 5,457 73 641 3,148 0 17,191 11,854 0 0 22,462 0 0 0 0 0 510 0 96,786 17,311 253 61,056 26,120 841,699 0 0 314 373,443 34,351 841,699 0 0 0 0 0 0 0 0 0 0 0 0 92,637 37,335 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 92,637 37,335 314 373,443 34,351 841,699 4,149 (20,024) (61) (312,387) (8,231) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4,149 (20,024) (61) (312,387) (8,231) 0 (34,173) 94,522 1,564 51,126 56,600 0 0 0 0 0 0 0 $ (30,024) $ 74,498 $ 1,503 $ (261,261) $ 48,369 $ 0 65 cont. City of Salina, Kansas SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For the fiscal year ended December 31, 1998 (With comparative totals for the fiscal year ended December 31, 1997) Revenues Taxes Intergovernmental Charges for services Fines Special assessments Interest Reimbursements Miscellaneous Total revenues Expenditures Current General government Public safety Public works Community development Health and welfare Bicentennial Center Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses) Operating transfers in Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues and other sources over (under) expenditures and other uses Fund balances (deficit), January 1 Residual equity transfers out Fund balances (deficit), December 31 Special Law Enforcement $ 0 $ 10,980 0 0 0 1,674 0 12,654 Police DARE U 0 139,519 0 0 0 0 0 0 0 3,056 1,172 0 0 0 4,399 0 0 0 0 48,198 0 0 0 0 0 0 0 0 0 0 0 0 0 12,516 45,520 0 12,516 93,718 0 138 48,857 0 81,127 0 0 0 0 0 81,127 0 138 129,984 33,235 (43,801) 18,440 0 0 0 $ 33,373 $ 86,183 $ 24,011 e� Schedule 5 Pa 2e Traffic Total Safety Grant 1998 1997 $ 0 $ 4,402,398 $ 3,404,505 0 1,705,780 1,737,050 0 2,554,921 1,470,943 0 1,115 890 0 75,594 78,537 415 102,601 81,337 0 52,395 31,552 0 46,186 17,139 415 8,940,990 6,821,953 0 4,764,833 3,644,472 0 48,198 120,692 0 224,377 983,076 0 129,972 99,222 0 87,333 87,916 0 2,184,746 1,681,770 0 1,123,973 1,331,311 0 8,563,432 7,948,459 415 377,558 (1,126,506) 0 877,072 561,567 0 (302,945) (248,701) 0 574,127 312,866 415 951,685 (813,640) 7,673 2,935,695 3,749,335 0 (409,296) 0 $ 8,088 $ 3,478,084 $ 2,935,695 67 Revenues Taxes Property Delinquent Motor vehicle Total taxes Intergovernmental Fees Reimbursed expenses Total revenues Expenditures General government Earned leave Unemployment Social security Life insurance Kansas Police and Fire Retirement Kansas Public Employees Retirement Health insurance Dental insurance Wellness Workers compensation Other benefits Administrative expenses Cash reserve Total expenditures Excess (deficiency) of revenues over (under) expenditures Fund balances, January 1 Fund balances, December 31 City of Salina, Kansas EMPLOYEE BENEFIT SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET For the fiscal years ended December 31, 1998 and 1997 1998 1997 Variance Favorable Actual Budget (Unfavorable) Actual $ 2,878,456 $ 36,434 224,445 3,139,335 0 0 888 Budget 2,809,240 $ 45,000 249,705 3,103,945 0 0 0 3,103,945 Variance Favorable (Unfavorable) Schedule 6 69,216 $ 1,274,194 $ 1,241,028 $ 33,166 (8,566) 50,335 45,000 5,335 (25,260) 440,700 417,090 23,610 35,390 1,765,229 1,703,118 62,111 0 185,000 185,000 0 0 17,352 179,000 (161,648) 888 3,822 0 3,822 36,278 1,971,403 2,067,118 (95,715) 0 40,000 40,000 0 60,000 60,000 36,341 36,804 463 38,167 34,684 (3,483) 469,749 461,267 (8,482) 445,331 548,878 103,547 50,325 52,126 1,801 48,843 48,520 (323) 811,790 706,078 (105,712) 808,577 687,000 (121,577) 134,094 135,942 1,848 117,980 116,520 (1,460) 1,345,477 1,317,112 (28,365) 1,284,691 769,000 (515,691) 0 0 0 0 230,000 230,000 50,310 52,300 1,990 56,532 52,300 (4,2327` 0 196,696 196,696 0 0 0 64,444 5,400 (59,044) 0 5,400 5,400 0 0 0 315,106 315,105 (1) 0 420,201 420,201 0 800,000 800,000 2,962,530 3,423,926 461,396 3,115,227 3,667,407 552,180 177,693 451,777 (319,981) 497,674 (1,143,824) (1,600,289) 456,465 319,981 131,796 1,595,601 1,600,289 (4,688) $ 629,470 $ 0 $ 629,470 $ 451,777 $ 0 $ 451,777 68 Revenues Taxes Property Delinquent Total revenues Expenditures General government Contractual services Capital outlay Cash reserve Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources Operating transfers in Excess of revenues and other sources over expenditures Fund balances, January 1 Fund balances, December 31 City of Salina, Kansas FLOOD & DRAINAGE IMPROVEMENT SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET For the fiscal years ended December 31, 1998 and 1997 Schedule 6 Page 2 5,282 0 72,487 450,000 0 85,943 77,769 535,943 (5,282) 0 377,513 0 85,943 0 458,174 0 C 0 C 0 0 0 0 0 154,215 1998 464,215 1997 0 0 Variance Variance 0 0 Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) $ 231,571 $ 225,943 $ 5,628 $ 0 $ 0 $ 0 413 0 413 0 0 0 231,984 225,943 6,041 0 0 0 5,282 0 72,487 450,000 0 85,943 77,769 535,943 (5,282) 0 377,513 0 85,943 0 458,174 0 C 0 C 0 0 0 0 0 154,215 (310,000) 464,215 0 0 0 310,000 310,000 0 0 0 0 464,215 0 464,215 0 0 0 0 0 0 0 0 0 $ 464,215 $ 0 $ 464,215 $ 0 $ 0 $ 0 69 City of Salina, Kansas Schedule 6 Page UTILITY SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET For the fiscal years ended December 31, 1998 and 1997 70 1998 1997 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues Taxes Property $ 0 $ 0 $ 0 $ 584,193 $ 568,973 $ 15,220 Delinquent 9,324 3,150 6,174 16,665 13,000 3,665 Motor vehicle 79,140 114,482 (35,342) 146,133 139,037 7,096 Total revenues 88,464 117,632 (29,168) 746,991 721,010 25,981 Expenditures General government Gas service 0 0 0 82,165 78,000 (4,165) Street lighting 0 0 0 277,757 295,000 17,243 Water service 0 0 0 96,777 121,000 24,223 Light and power 0 0 0 264,193 305,000 40,807 Traffic control 0 0 0 44,177 43,000 (1,177) Cash reserves 0 0 0 0 200,000 200,000 Total expenditures 0 0 0 765,069 1,042,000 276,931 Excess (deficiency) of revenues over (under) expenditures 88,464 117,632 (29,168) (18,078) (320,990) 302,912 Fund balances, January 1 391,589 288,693 102,896 409,667 320,990 88,677 Residual equity transfers out (374,513) (406,325) 31,812 0 0 Fund balances, December 31 $ 105,540 $ 0 $ 105,540 $ 391,589 $ 0 :6 391,589 70 City of Salina, Kansas Schedule 6 SPECIAL LIABILITY SPECIAL REVENUE FUND Page 3 SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET For the fiscal years ended December 31, 1998 and 1997 71 1998 1997 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues Taxes Property $ 0 $ 0 $ 0 $ 10,248 $ 10,000 $ 248 Delinquent 2,266 473 1,793 6,789 473 6,316 Motor vehicle 4,719 2,012 2,707 68,908 65,106 3,802 Total revenues 6,985 2,485 4,500 85,945 75,579 10,366 Expenditures General government Administrative expenses 2,966 0 (2,966) 86,603 140,000 53,397 Cash reserve 0 0 0 0 16,228 16,228 Total expenditures 2,966 0 (2,966) 86,603 156,228 69,625 Excess (deficiency) of revenues over (under) expenditures 4,019 2,485 1,534 (658) (80,649) 79,991 Fund balances, January 1 95,368 31,589 63,779 96,026 80,649 15,377 Residual equity transfers out (34,783) (34,074) (709) 0 0 0 Fund balances, December 31 $ 64,604 $ 0 $ 64,604 $ 95,368 $ 0 $ 95,368 71 City of Salina, Kansas BUSINESS IMPROVEMENT DISTRICT SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET For the fiscal years ended December 31, 1998 and 1997 Revenues Fines Special assessments Use of money and property Total revenues Expenditures General government Contractual Other services and charges Total expenditures Excess of revenues over expenditures Other financing sources (uses) Operating transfers out Excess (deficiency) of revenues over (under) expenditures and other uses Fund balances, January I Fund balances (deficit), December 31 Schedule 6 rage 4 (17,000) (17,000) 0 (17,000) (17,000) 0 (1,745) 0 (1,745) (2,724) (4,160) 1,436 463 0 463 3,187 4,160 97 $ (1,282) $ 0 $ (1,282) $ 463 $ , bu 72 1998 1997 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) $ 1,115 $ 0 $ 1,115 $ 890 $ 0 $ 890 70,703 82,000 (11,297) 76,570 80,000 (3,430) 203 0 203 158 0 158 72,021 82,000 (9,979) 77,618 80,000 (2,382) 56,766 65,000 8,234 63,242 67,160 3,918 0 0 0 100 0 (100) 56,766 65,000 8,234 63,342 67,160 3,818 15,255 17,000 (1,745) 14,276 12,840 1,436 (17,000) (17,000) 0 (17,000) (17,000) 0 (1,745) 0 (1,745) (2,724) (4,160) 1,436 463 0 463 3,187 4,160 97 $ (1,282) $ 0 $ (1,282) $ 463 $ , bu 72 City of Salina, Kansas Schedule 6 Page TOURISM AND CONVENTION SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET For the fiscal years ended December 31, 1998 and 1997 73 1998 1997 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues Taxes Transient guest $ 710,804 $ 715,000 $ (4,196) $ 592,715 $ 715,000 $ (122,285) Use of money and property 2,311 0 2,311 1,765 0 1,765 Total revenues 713,115 715,000 (1,885) 594,480 715,000 (120,520) Expenditures General government Contractual 428,918 429,000 82 370,629 429,000 58,371 Excess of revenues over expenditures 284,197 286,000 (1,803) 223,851 286,000 (62,149) Other financing sources (uses) Operating transfers out (285,945) (286,000) 55 (222,086) (286,000) 63,914 Excess (deficiency) of revenues over (under) expenditures and other uses (1,748) 0 (1,748) 1,765 0 1,765 Fund balances, January 1 1,765 0 1,765 0 0 0 Fund balances, December 31 $ 17 $ 0 $ 17 $ 1,765 $ 0 $ 1,765 73 City of Salina, Kansas SPECIAL PARKS AND RECREATION SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET For the fiscal years ended December 31, 1998 and 1997 Revenues Intergovernmental Use of money and property Miscellaneous Total revenues Expenditures Capital outlay Cash reserve Total expenditures Excess (deficiency) of revenues over (under) expenditures Fund balances, January I Fund balances, December 31 Schedule 6 Page 6 74 1998 1997 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) $ 102,570 $ 83,284 $ 19,286 $ 87,916 $ 82,500 $ 5,416 4,863 0 4,863 5,573 0 5,573 11,000 12,000 (1,000) 8,000 0 8,000 118,433 95,284 23,149 101,489 82,500 18,989 93,790 85,000 (8,790) 122,697 82,500 (40,197) 0 67,814 67,814 0 67,325 67,325 93,790 152,814 59,024 122,697 149,825 27, 128 24,643 (57,530) (39,738) (21,208) (67,325) (21,712) 77,822 57,530 20,292 99,030 67,325 31,705 $ 102,465 $ 0 $ 102,465 $ 77,822 $ 0 $ 77,822 74 City of Salina, Kansas SPECIAL ALCOHOL SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET For the fiscal years ended December 31, 1998 and 1997 Revenues Intergovernmental Use of money and property Total revenues Expenditures Health and welfare Contractual Excess (deficiency) of revenues over (under) expenditures Fund balances, January I Fund balances, December 31 Schedule 6 Page 7 87,333 87,333 15,504 0 369 0 0 87,916 15,504 369 369 0 89,066 1,150 (1,733) 2,102 1,73:3 (1,733) $ 15,873 $ 0 $ 15,873 $ 369 $ 0 $ 369 75 1998 1997 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) $ 102,571 $ 87,333 $ 15,238 $ 87,916 $ 87,333 $ 583 266 0 266 369 0 369 102,837 87,333 15,504 88,285 87,333 952 87,333 87,333 15,504 0 369 0 0 87,916 15,504 369 369 0 89,066 1,150 (1,733) 2,102 1,73:3 (1,733) $ 15,873 $ 0 $ 15,873 $ 369 $ 0 $ 369 75 City of Salina, Kansas SPECIAL GAS TAX SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET For the fiscal years ended December 31, 1998 and 1997 Revenues Intergovernmental Use of money and property Miscellaneous revenues Total revenues Expenditures Public works Supplies Other services Capital outlay Cash reserve Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses) Operating transfers out Excess (deficiency) of revenues over (under) expenditures and other uses Fund balances, January I Prior year cancelled encumbrances Fund balances, December 31 Schedule 6 Page 8 76 1998 1997 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) $ 1,406,496 $ 1,350,000 $ 56,496 $ 1,367,135 $ 1,300,000 $ 67,135 57,036 20,000 37,036 38,044 0 38,044 30,277 30,000 277 0 0 0 1,493,809 1,400,000 93,809 1,405,179 1,300,000 105,179 207,029 182,500 (24,529) 167,882 153,600 (14,282) 17,348 40,114 22,766 40,654 39,161 (1,493) 1,113,545 1,365,400 251,855 1,130,613 1,091,000 (39,613) 0 232,566 232,566 0 300,880 300,880 1,337,922 1,820,580 482,658 1,339,149 1,584,641 245,492 155,887 (420,580) 576,467 66,030 (284,641) 350,671 0 (5,275) 5,275 0 (5,275) 5,275 155,887 (425,855) 581,742 66,030 (289,916) 355,915 444,007 425,855 18,152 374,891 289,916 84,975 0 0 0 3,086 0 3,086 $ 599,894 $ 0 $ 599,894 $ 444,007 $ 0 $ 444,007 76 Revenues Charges for services Use of money and property Total revenues Expenditures Bicentennial Center Personal services Supplies Contractual Other services and charges Capital outlay Cash reserve Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources Operating transfers in Excess (deficiency) of revenues and other sources over (under) expenditures Fund balances, January 1 Fund balances, December 31 City of Salina, Kansas Schedule 6 Page 9 BICENTENNIAL CENTER SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET For the fiscal years ended December 31, 1998 and 1997 77 1998 1997 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) $ 986,518 $ 717,000 $ 269,518 $ 625,353 $ 698,000 $ (72,647) 21,429 0 21,429 21,353 0 21,353 1,007,947 717,000 290,947 646,706 698,000 (51,294) 567,366 588,857 21,491 535,404 582,18:2 46,778 261,152 257,100 (4,052) 0 53,595 53,595 0 0 0 0 8,039 8,039 329,341 354,433 25,092 441,729 397,17.7 (44,552) 67,281 157,000 89,719 76,866 108,500 31,634 0 181,035 181,035 0 234,424) 234,429 1,225,140 1,538,425 313,285 1,053,999 1,383,922 329,923 (217,193) (821,425) 582,803 (407,293) (685,922) 257,276 284,322 486,000 (201,678) 322,086 386,000 (63,914) 67,129 (335,425) 381,125 (85,207) (299,922) 193,362 316,428 335,425 (18,997) 401,635 308,639 92,996 $ 383,557 $ 0 $ 383,557 $ 316,428 $ 8,717 $ 307,711 77 City of Salina, Kansas 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. 78 Cash and investments Cash with fiscal agent Receivables Taxes Total assets City of Salina, Kansas Schedule 7 BOND AND INTEREST DEBT SERVICE FUND COMPARATIVE BALANCE SHEETS December 31, 1998 and 1997 ASSETS 1998 1997 $ 741,310 $ 867,759 5,545 104,790 916,477 1,138,685 $ 1,663,332 $ 2,111,234 LIABILITIES AND FUND BALANCES Liabilities Deferred revenue Matured principal and interest payable Total liabilities Fund balances Unreserved Designated for debt service Total liabilities and fund balances 79 $ 916,477 $ 1,138,685 C CAC IAA AAA 922,022 1,243,475 741,310 867,759 $ 1,663,332 $ 2,111,234 City of Salina, Kansas DEBT SERVICE FUND COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For the fiscal years ended December 31, 1998 and 1997 Revenues Taxes Special assessments Use of money and property Miscellaneous Total revenues Expenditures Debt service Principal Interest and other charges Total expenditures Excess (deficiency) of revenues over (under) expenditures Fund balances, January 1 Residual equity transfer in Fund balances, December 31 80 Schedule 8 1998 1997 $ 1,550,848 $ 2,602,086 974,648 1,048,863 72,957 86,395 127,301 55,593 2,725,754 3,792,937 2,372,468 3,443,464 n4< Ki i �A.... 2,858,079 4,042,308 (132,325) (249,371) 867,759 1,052,539 5,876 64,591 $ 741,310 $ 867,759 City of Salina, Kansas Schedule 9 BOND AND INTEREST DEBT SERVICE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET For the fiscal years ended December 31, 1998 and 1997 81 1998 1997 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues - Taxes Property $ 1,147,999 $ 1,138,685 $ 9,314 $ 2,350,311 $ 2,289,301 $ 61,010 Delinquent 38,752 36,651 2,101 32,010 36,651 (4,641) Motor vehicle 364,097 415,947 (51,850) 219,765 200,875 18,890 Total taxes 1,550,848 1,591,283 (40,435) 2,602,086 2,526,827 75,259 Special assessments 974,648 1,093,600 (1 18,952) 1,048,863 963,000 85,863 Use of money and property 72,957 50,000 22,957 86,395 59,915 26,480 Miscellaneous 127,301 0 127,301 55,593 0 55,593 Total revenues 2,725,754 2,734,883 (9,129) 3,792,937 3,549,742 243,195 Expenditures Debt service Principal 2,372,468 2,205,312 (167,156) 3,443,464 2,934,128 (509,336) Interest 485,461 697,833 212,372 598,127 919,514 321,387 Commission and postage 150 1,000 850 717 1,000 283 Cash reserve 0 435,060 435,060 0 403,776 403,776 Total expenditures 2,858,079 3,339,205 481,126 4,042,308 4,258,418 216,110 Excess (deficiency) of revenues over (under) expenditures (132,325) (604,322) 471,997 (249,371) (708,676) 459,305 Other financing sources Operating transfer in 0 0 0 44,102 0 44,102 Excess (deficiency) of revenues and other sources over (under) expenditures (132,325) (604,322) 471,997 (205,269 (708,676) 503,407 Fund balances, January 1 867,759 604,322 263,437 1,052,539 633,676 418,863 Residual equity transfer in 5,876 0 5,876 20,489 75,000 (54,511) Fund balances, December 31 $ 741,310 $ 0 $ 741,310 $ 867,759 $ 0 $ 867,759 81 City of Salina, Kansas CAPITAL PROJECTS FUND The capital projects fund is used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds. 82 Cash and investments City of Salina, Kansas Schedule 10 CAPITAL PROJECTS FUND COMPARATIVE BALANCE SHEETS December 31, 1998 and 1997 ASSETS 1998 1997 $ 205,929 $ 2,826,977 LIABILITIES AND FUND BALANCES Liabilities Accounts payable Retainage payable Total liabilities Fund balances Reserved for encumbrances Unreserved Undesignated (deficit) Total fund balances (deficit) Total liabilities and fund balances 83 $ 0 $ 5,142 236,927 34,862 236,927 40,004 881,341 1,194,259 (912,339) 1,592,714 (30,998) 2,786,973 $ 205,929 $ 2,826,977 City of Salina, Kansas CAPITAL PROJECTS FUND COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For the fiscal years ended December 31, 1998 and 1997 Revenues Intergovernmental Special assessments Use of money and property Reimbursements Total revenues Expenditures Capital outlay Contractual Capital outlay Debt service Temporary note payments Interest expense Bond issuance costs Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources Bond and temporary note proceeds Excess (deficiency) of revenues and other sources over (under) expenditures Fund balances (deficit), January I Residual equity transfers in Residual equity transfers out Fund balances (deficit), December 31 84 1998 $ 0 $ 323,469 114,943 Schedule I I 807 0 70,113 703,567 193,470 1,037,065 308,805 3,398,194 1,990,923 3,645,000 4,850,000 178,005 — 158,456 -- . In 8,271,294 7,330,533 (7,567,727) (7,137,063) (2,905,987) 2,972,937 2,786,973 (294,038) 93,892 416,899 (5,876) (308,825) $ (30,998) $ 2,786,973 City of Salina, Kansas ENTERPRISE FUNDS Enterprise funds are used to account for operations that are financed and operated in a mariner 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. 85 Cash and investments Receivables Accounts Interest Inventory and prepaid supplies Restricted cash and investments Fixed assets Land Land improvement Water plant and equipment Sewerage plant and equipment Equipment Vehicles Buildings Construction in process Accumulated depreciation Deferred charges Total assets City of Salina, Kansas ENTERPRISE FUNDS COMBINING BALANCE SHEET December 31, 1998 (With comparative totals for December 31, 1997) ASSETS 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 Loans payable General obligation bonds payable Revenue bonds payable Landfill closure and postclosure Total liabilities Equity Contributed capital Retained Earnings Reserved for bond retirement Reserved for postclosure care costs Unreserved Total equity Total liabilities and equity 061 Solid Waste Sanitation Disposal 343,855 $ 2,105,874 94,415 174,848 0 0 0 0 0 0 18,000 120,000 0 4,701,221 0 0 0 0 737,837 697,422 384,889 996,157 0 350,381 0 0 (763,933) (1,728,459) 0 15,431 $ 815,063 $ 7,432,875 433 $ 494,394 0 69,895 83,505 24,268 0 0 0 38,098 0 0 0 0 0 241,816 0 1,500,000 0 0 0 1,101,842 0 0 0 986,591 34,521 86,990 0 0 0 92,520 696,604 _ 2,796,461 � $ 815,063 $ 7,432,875 Schedule 12 $ 5,649 $ 175,798 $ Total 317,486 Golf Course Water and 267,531 46,425 Division Sewer 1998 1997 $ 112,324 $ 9,993,233 $ 12,555,286 $ 12,593,873 0 518,110 787,373 777,889 0 0 0 38,443 30,190 400,084 430,274 453,824 0 11,916,585 11,916,585 11,601,880 15,000 361,050 514,050 514,050 337,361 0 5,038,582 4,886,159 0 34,794,544 34,794,544 31,895,409 0 37,590,736 37,590,736 36,774,426 681,718 547,810 2,664,787 2,119,555 59,647 0 1,440,693 1,3 54,189 225,231 0 575,612 575,612 0 3,131,801 3,131,801 3,381,616 (895,888) (28,454,948) (31,843,228) (29,150,592) 0 559,634 575,065 485,851 $ 565,583 $ 71,358,639 $ 80,172,160 $ 78,302,184 $ 5,649 $ 175,798 $ 676,274 $ 317,486 0 197,636 267,531 46,425 34,742 298,119 440,634 462,921 0 85,252 85,252 81,300 3,069 302,710 343,877 376,434 0 700,000 700,000 1,085,000 0 15,013 15,013 0 21,703 504,866 768,385 274,516 0 0 1,500,000 700,000 0 920,842 920,842 0 147,450 5,062,554 6,311,846 1,610,798 0 25,600,000 25,600,000 32,790,000 0 212,6F7 0 986,591 976,002 , 154,122 8,385,683 8,661,316 8,479,010 0 3,501,554 3,501,554 3,501,554 0 0 92,520 92,520 198,848 25,608,612 29,300,525 27,508,218 352,97U- 37,495, 5, , $ 565,583 $ 71,358,639 $ 80,172,160 $ 78,302,184 87 City of Salina, Kansas ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For the fiscal year ended December 31, 1998 (With comparative totals for the fiscal year ended December 31, 1997) Operating revenues Intergovernmental 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 Bond issuance costs Debt service Loss on disposition of fixed assets Total nonoperating revenues (expenses) Net income (loss) Retained earnings, January I Restatement Residual equity transfer out Retained earnings, December 31 88 Solid Waste Sanitation Disposal $ 0 $ 0 1,354,666 2,483,786 0 0 286 30,740 1,354,952 2,514,526 (38,461) 1,359,740 2,205,559 0 0 56,827 378,269 1,416,567 2,583,828 (61,615) (69,302) 23,154 90,213 0 (10,922) 0 (112,478) 0 (27,660) 23,154 (60,847) (38,461) (130,149) 735,065 3.,199,29; 0 (180,169) 0 0 $ 696,604 $ 2,888,981 Schedule 13 Total Golf Course Water and Division Sewer 1998 1997 $ 0 $ 788,994 $ 788,994 $ 45,091 747,229 10,499,318 15,084,999 14,825,115 0 31,192 31,192 0 8,535 176,252 215,813 36,732 755,764 11,495,756 16,120,998 14,906,938 0 6,836,006 10,401,305 8,953,322 708,308 0 708,308 685,819 48,066 2,227,638 2,710,800 2,655,415 756,374 9,063,644 13,820,413 12,294,556 (610) 2,432,112 2,300,585 2,612,382 7,617 1,326,744 1,447,728 1,424,061 0 (44,299) (55,221) (45,562) (16,585) (1,678,085) (1,807,148) (2,138,855) 0 0 (27,660) (10,559) (8,968) (395,640) (442,301) (770,915) (9,578) 2,036,472 1,858,284 1,841,467 94,234 27,073,694 31,102,292 30,217,356 114,192 0 (65,977) (696,531) 0 0 0 (260,000) $ 198,848 $ 29,110,166 $ 32,894,599 $ 31,102,292 89 City of Salina, Kansas ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS For the fiscal year ended December 31, 1998 (With comparative totals for the fiscal year ended December 31, 1997) 90 Solid Waste Sanitation Disposal Cash flows from operating activities Cash received from customers and users $ 1,340,633 $ 2,485,695 Cash paid to suppliers and employees (1,303,123) (1,868,564) Cash paid for quasi - external transactions (76,755) (52,890) Operating grant receipts 0 0 Other operating receipts 286 30,740 Net cash provided by (used in) operating activities (38,959) 594,981 Cash flows from capital and related financing activities Purchase and construction of fixed assets (143,279) (428,015) Proceeds from issuance of debt 0 1,500,000 Principal payments - temporary notes 0 (700,000) Principal payments - general obligation bonds 0 (241,800) Principal payments - revenue bonds 0 0 Interest paid 0 (93,825) Bond issuance costs 0 (6,015) Net cash provided by (used in) capital and related financing activities (143,279) 30,345 Cash flows from investing activities Interest received 23,154 90,213 Cash flows from noncapital financing activities Transfers to other funds 0 0 Net increase (decrease) in cash and cash equivalents (159,084) 715,539 Cash and cash equivalents, January 1 502,939 1,390,335 Cash and cash equivalents, December 31 $ 343,855 $ 2,105,874 Cash and investments $ 343,855 $ 2,105,874 Restricted cash and investments 0 0 Total cash and cash equivalents $ 343,855 $ 2,105,874 90 Schedule 14 Total Golf Course Water and Division Sewer 1998 1997 $ 747,229 $ 10,505,910 $ 15,079,467 $ 14,745,988 (675,778) (6,223,074) (10,070,539) (8,829,222) (29,160) (468,692) (627,497) (1,023,633) 0 788,994 788,994 45,091 8,535 207,444 247,005 36,732 50,826 4,810,582 5,417,430 4,974,956 (38,827) (3,503,186) (4,113,307) (2,918,011) 0 935,855 2,435,855 260,000 0 0 (700,000) (695,000) (20,703) 0 (262,503) (248,529) 0 (1,565,000) (1,565,000) (1,015,000) (18,574) (1,723,114) (1,835,513) (2,158,662) 0 (581,000) (587,015) 0 (78,104) (6,436,445) (6,627,483) (6,775,202) 7,617 1,365,187 1,486,171 1,446,689 0 0 0 (260,000) (19,661) (260,676) 276,118 (613,557) 131,985 22,170,494 24,195,753 24,809,310 $ 112,324 $ 21,909,818 $ 24,471,871 $ 24,195,753 $ 112,324 $ 9,993,233 $ 12,555,286 $ 12,593,873 0 11,916,585 11,916,585 11,601,880 $ 112,324 $ 21,909,818 $ 24,471,871 $ 24,195,753 91 cont. City of Salina, Kansas ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS For the fiscal year ended December 31, 1998 (With comparative totals for the fiscal year ended December 31, 1997) Reconciliation of operating income (loss) 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 (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 landfill closure and postclosure Increase (decrease) in deferred revenue Net cash provided by (used in) operating activities 92 Solid Waste Sanitation Disposal (61,615) $ (69,302) 56,827 378,269 (14,033) 1,909 0 0 (3,252) 381,157 0 69,895 (16,886) 2,633 0 0 0 (169,580) 0 0 $ (38,959) $ 594,981 Schedule 14 Palle 2 Total Golf Course Water and Division Sewer 1998 1997 $ (610) $ 2,432,112 $ 2,300,585 $ 2,612,382 48,066 2,227,638 2,710,800 2,655,415 0 2,640 (9,484) (67,404) (4,389) 27,939 23,550 (51,117) 1,587 (20,704) 358,788 (5,277) 0 151,211 221,106 (28,615) 6,172 (14,206) (22,287) 52,753 0 3,952 3,952 2,644 0 0 (169,580) (181,458) 0 0 0 (14,367) $ 50,826 $ 4,810,582 $ 5,417,430 $ 4,974,956 93 City of Salina, Kansas SANITATION ENTERPRISE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL AND BUDGET For the fiscal years ended December 31, 1998 and 1997 1998 1997 Schedule 15 94 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues Charges for services $ 1,340,634 $ 1,233,750 $ 106,884 $ 1,222,203 $ 1,175,000 $ 47,203 Use of money and property 23,154 25,000 (1,846) 33,487 25,000 8,487 Miscellaneous 286 1,000 (714) 572 999 (427) Total revenues 1,364,074 1,259,750 104,324 1,256,262 1,200,999 55,263 Expenditures General government Administrative expense 76,755 76,755 0 132,624 104,520 (28,104) Public works Personal services 657,988 597,532 (60,456) 589,202 558,692 (30,510) Supplies 130,656 159,100 28,444 0 147,700 147,700 Contractual 0 0 0 0 44,604 44,604 Other services and charges 509,177 461,831 (47,346) 585,378 444,110 (141,268) Capital outlay 145,330 73,800 (71,530) 57,773 66,800 9,027 Cash reserve 0 390,130 390,130 0 394,473 394,473 Total expenditures 1,519,906 1,759,148 239,242 1,364,977 1,760,899 395,922 Excess (deficiency) of revenues over (under) expenditures (155,832) (499,398) 343,566 (108,715) (559,900) 451,185 Fund balances, January 1 499,254 499,398 (144) 607,969 559,900 48,06? Fund balances, December 31 $ 343,422 $ 0 $ 343,422 $ 499,254 $ 0 94 i City of Salina, Kansas SOLID WASTE DISPOSAL DIVISION ENTERPRISE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL AND BUDGET For the fiscal years ended December 31, 1998 and 1997 Revenues Intergovernmental Charges for services Use of money and property Miscellanaeous Total revenues Expenditures General government Administrative expenses Public works Personal services Supplies Contractual Other services and charges Capital outlay Debt service Principal Interest Commission and postage Cash reserve Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses) Operating transfers out Excess (deficiency) of revenues over(under)expenditures and other uses Fund balances, January l Prior year cancelled encumbrances Fund balances, December 31 Schedule 15 Page 2 52,890 1998 30,006 110,991 1997 (8,597) 330,635 352,624 Variance 316,181 349,843 Variance 169,949 176,200 Favorable 0 160,440 Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) 0 $ 0 $ 0 $ 30,724 $ 0 $ 30,724 2,485,694 2,300,000 185,694 2,490,052 2,509,200 (19,148) 70,210 35,000 35,210 60,522 35,000 25,522 31,053 20,000 11,053 20,037 19,967 70 2,586,957 2,355,000 231,957 2,601,335 2,564,167 37,168 52,890 82,896 30,006 110,991 102,394 (8,597) 330,635 352,624 21,989 316,181 349,843 33,662 169,949 176,200 6,251 0 160,440 160,440 0 0 0 0 238,897 238,897 380,262 488,663 108,401 518,757 393,220 (125,537) 458,569 164,800 (293,769) 9,343 396,800 387,457 941,829 941,816 (13) 936,829 956,573 19,744 90,753 90,750 (3) 127,821 107,356 (20,465) 16 0 (16) 29 0 (29) 0 778,247 778,247 0 412,803 412,803 2,424,903 3,075,996 651,093 2,019,951 3,118,326 1,098,375 162,054 (720,996) 883,050 581,384 (554,159) 1,135,543 0 0 0 (45,000) 0 (45,000) 162,054 (720,996) 883,050 536,384 (554,159) 1,090,543 1,237,298 720,996 516,302 699,216 554,159 145,057 0 0 0 1,698 0 1,698 $ 1,399,352 $ 0 $ 1,399,352 $ 1,237,298 $ 0 $ 1,237,298 95 City of Salina, Kansas GOLF COURSE DIVISION ENTERPRISE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL AND BUDGET For the fiscal years ended December 31, 1998 and 1997 1998 1997 Schedule 15 Page 3 96 variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues Charges for services $ 747,229 $ 734,700 $ 12,529 $ 782,162 $ 641,668 $ 140,494 Use of money and property 7,617 5,000 2,617 0 5,000 (5,000) Reimbursements 0 200 (200) 0 200 (200) Miscellaneous 8,535 7,000 1,535 0 4,000 (4,000) Total revenues 763,381 746,900 16,481 782,162 650,868 131,294 Expenditures General government Administrative expenses 29,160 29,160 0 33,092 30,188 (2,904) Recreation Personal services 315,296 303,797 (11,499) 298,230 274,006 (24,224) Supplies 267,424 250,700 (16,724) 0 97,900 97,900 Contractual 0 0 0 0 26,904 26,904 Other services and charges 79,003 61,196 (17,807) 342,090 167,900 (174,190) Capital outlay 54,468 50,000 (4,468) 40,456 50,000 9,544 Debt service Principal 20,703 22,872 2,169 6,707 21,707 15,000 Interest 18,573 11,203 (7,370) 1,798 9,100 7,302 Cash reserve 0 117,000 117,000 0 86,005 86,005 Total expenditures 784,627 845,928 61,301 722,373 763,710 41,337 Excess (deficiency) of revenues over (under) expenditures (21,246) (99,028) 77,782 59,789 (112,842) 172,63? Fund balances, January 1 127,922 99,028 28,894 68,133 92,842 (24,709) Fund balances, December 31 $ 106,676 $ 0 $ 106,676 $ 127,922 $ (20,000) $ 147,922 96 City of Salina, Kansas WATER AND SEWER ENTERPRISE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL AND BUDGET For the fiscal years ended December 31, 1998 and 1997 1998 Actual Budget Revenues Charges for services $ 10,505,910 $ 10,622,500 $ Use of money and property 338,326 300,000 Reimbursements 4,853 0 Miscellaneous 176,252 243,000 Total revenues 11,025,341 11,165,500 Expenditures General government Administrative expenses 468,692 468,692 Public works Personal services 2,697,685 2,750,093 Supplies 1,785,748 2,114,150 Other services and charges 1,925,395 1,996,567 Capital outlay 972,204 1,392,300 Debt service Commission and postage 61 1,000 Bond issuance costs 0 147,900 Cash reserves 0 2,923,861 Total expenditures 7,849,785 11,794,563 Excess (deficiency) of revenues over (under) expenditures 3,175,556 (629,063) Other financing sources (uses) Operating transfers out (2,605,141) (2,442,123) Excess (deficiency) of revenues over (under) expenditures and other uses 570,415 (3,071,186) Fund balances, January 1 5,297,152 3,071,186 Prior year cancelled encumbrances 76,330 0 Residual equity transfer in 12,458 0 Fund balances, December 31 $ Schedule 15 Page 44 1997 Variance Variance Favorable Favorable (Unfavorable) Actual Budget (Unfavorable) (116,590) $ 11,370,161 $ 10,696,900 $ 673,261 38,326 315,613 300,000 15,613 4,853 0 0 0 (66,748) 16,123 50,000 (33,877) (140,159) 11,701,897 11,046,900 654,997 0 597,917 367,379 (230,538) 52,408 2,596,584 2,536,776 (59,808) 328,402 0 1,908,450 1,908,450 71,172 3,328,381 1,918,938 (1,409,443) 420,096 1,507,058 1,947,300 440,242 939 781 1,000 219 147,900 0 0 0 2,923,861 0 4,791,886 4,791,886 3,944,778 8,030,721 13,471,729 5,441,008 3,804,619 3,671,176 (2,424,829) 6,096,005 (163,018) (2,270,600) (2,476,736) 206,136 3,641,601 1,400,576 (4,901,565) 6,302,141 2,225,966 3,793,837 5,125,213 (1,331,376) 76,330 102,739 0 102,739 12,458 0 0 0 5,956,355 $ 0 $ 5,956,355 $ 5,297,152 $ 223,648 $ 5,073,504 M This page left blank intentionally. 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 of 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. B -1 City of Salina, Kansas INTERNAL SERVICE FUNDS COMBINING BALANCE SHEET December 31, 1998 (With comparative totals for December 31, 1997) Worker's Risk Compensation ASSETS Management Reserve Cash and investments $ 221,919 $ 1,423,693 Receivables Deposits 0 0 Inventory 0 0 Fixed assets Equipment 0 0 Vehicles 0 0 Buildings 0 0 Accumulated depreciation 0 0 LIABILITIES AND EQUITY Liabilities Accounts payable Accrued compensated absences Accrued claims payable Total liabilities Equity Contributed capital Retained earnings Unreserved Total liabilities and equity 99 $ 221,919 $ 1,423,693 $ 4,752 $ 0 0 0 0 253,413 4,752 253,413 0 0 217,167 1,170,280 $ 221,919 Schedule 16 $ 23,270 $ 20,188 $ 13,555 $ Total 84,700 Health Central Information 42,638 39,107 Insurance Garage Services 1998 1997 $ 553,280 $ 20,188 $ 247,073 $ 2,466,153 $ 2,674,102 0 0 0 0 19,132 0 46,514 0 46,514 50,351 0 133,195 1,123,514 1,256,709 1,082,542 0 13,911 0 13,911 15,911 0 22,072 0 22,072 22,072 0 (125,511) (731,005) (856,516) (715,654) $ 553,280 $ 110,369 $ 639,582 $ 2,948,843 $ 3,148,456 $ 23,270 $ 20,188 $ 13,555 $ 61,765 $ 84,700 0 22,725 19,913 42,638 39,107 250,000 0 0 503,413 387,881 273,270 42,913 33,468 607,816 511,688 0 16,611 604,932 621,543 525,046 280,010 50,845 1,182 1,719,484 2,111,722 $ 553,280 $ 110,369 $ 639,582 $ 2,948,843 $ 3,148,456 MIN City of Salina, Kansas INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For the fiscal year ended December 31, 1998 (With comparative totals for the fiscal year ended December 31, 1997) Operating revenues Charges for services Reimbursements Miscellaneous Total operating revenues Operating expenses General government Depreciation Total operating expenses Operating income (loss) Nonoperating revenues (expenses) Use of money and property Gain (loss) on disposition of fixed assets Total nonoperating revenues (expenses) Net income (loss) Retained earnings (deficit), January 1 Retained earnings, December 31 101 'Worker's Risk Compensation Management Reserve $ 217,995 $ 0 105,515 6,840 0 0 323,510 6,840 594,458 425,857 594,458 425,857 (270,948) (419,017) 22,054 77,893 0 0 22,054 77,893 (248,894) (341,124) $ 217,167 $ 1,170,290 Schedule 17 102 Total Health Central Information Insurance Garage Services 1998 1997 $ 2,810,358 $ 704,911 $ 667,580 $ 4,400,844 $ 4,184,976 0 40,903 17,550 170,808 171,400 0 0 3,925 3,925 8,052 2,810,358 745,814 689,055 4,575,577 4,364,428 2,625,705 770,304 484,304 4,900,628 4,136,808 0 5,799 165,419 171,218 156,474 2,625,705 776,103 649,723 5,071,846 4,293,282 184,653 (30,289) 39,332 (496,269) 71,146 22,694 1,085 18,946 142,672 145,379 0 0 (38,641) (38,641) 0 22,694 1,085 (19,695) 104,031 145,379 207,347 (29,204) 19,637 (392,238) 216,525 72,663 80,049 (18,455) 2,111,722 1,895,197 $ 280,010 $ 50,845 $ 1,182 $ 1,719,484 $ 2,111,722 102 City of Salina, Kansas INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS For the fiscal year ended December 31, 1998 (With comparative totals for the fiscal year ended December 31, 1997) Cash flows from operating activities Cash received from customers Cash received from quasi - external transactions Cash paid to suppliers and employees Cash paid for quasi- external transactions Other operating receipts Net cash provided by (used in) operating activities Cash flows from capital and related financing activities Purchase of fixed assets Contributed capital Net cash provided by (used in) capital and related financing activities Cash flows from investing activities Interest received Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, January 1 Cash and cash equivalents, December 31 103 22,054 77,893 (248,939) (111,516) $ 221,919 $ 147'` Worker's Risk Compensation Management Reserve $ 236,907 $ (374,497) 86,603 400,469 (593,698) (214,653) (805) (728) 0 0 (270,993) (189,409) 0 0 0 0 0 0 22,054 77,893 (248,939) (111,516) $ 221,919 $ 147'` Schedule 18 104 cont. Total Health Central Information Insurance Garage Services 1998 1997 $ 2,810,358 $ 745,814 $ 277,164 $ 3,695,746 $ (895,038) 0 0 407,966 895,038 895,038 (2,720,502) (759,354) (487,335) (4,775,542) (123,826) 0 0 (23,588) (25,121) (32,469) 0 0 3,925 3,925 0 89,856 (13,540) 178,132 (205,954) (156,295) 0 (8,101) (136,566) (144,667) (65,137) 0 0 0 0 (525,046) 0 (8,101) (136,566) (144,667) (590,183) 22,694 1,085 18,946 142,672 0 112,550 (20,556) 60,512 (207,949) (746,478) 440,730 40,744 186,561 2,674,102 2,080,330 $ 553,280 $ 20,188 $ 247,073 $ 2,466,153 $ 1,333,852 104 cont. City of Salina, Kansas INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS For the fiscal year ended December 31, 1998 (With comparative totals for the fiscal year ended December 31, 1997) Reconciliation of operating income (loss) 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 (Increase) decrease in deposits receivable (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 105 Worker's Risk Compensation Management Reserve (270,948) $ (419,017) 0 0 0 19,132 0 0 (45) (56) 0 0 0 210,532 $ (270,993) $ (189,409) Schedule 18 Page 2 Total Health Central Information Insurance Garage Services 1998 1997 $ 184,653 $ (30,289) $ 39,332 $ (496,269) $ 547,845 0 5,799 165,419 171,218 150,612 0 0 0 19,132 39,693 0 3,837 0 3,837 13,373 203 6,377 (29,414) (22,935) 7,092 0 736 2,795 3,531 5,102 (95,000) 0 0 115,532 (77,448) $ 89,856 $ (13,540) $ 178,132 $ (205,954) $ 686,269 106 City of Salina, Kansas Schedule 19 RISK MANAGEMENT RESERVE INTERNAL SERVICE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL AND BUDGET For the fiscal years ended December 31, 1998 and 1997 107 1998 1997 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues Charges for services $ 217,995 $ 275,573 $ (57,578) $ 86,603 $ 140,00(1 $ (53,397) Use of money and property 22,053 0 22,053 28,954 (1 28,954 Reimbursements 105,515 298 105,217 73,676 298 73,378 Total revenues 345,563 275,871 69,692 189,233 140,298 48,935 Expenditures General government Supplies 1,306 2,700 1,394 0 2,200 2,200 Other services and charges 592,743 658,937 66,194 344,007 354,805 10,798 Capital outlay 408 1,500 1,092 0 1,500 1,500 Cash reserve 0 102,344 102,344 0 315,047 315,047 Total expenditures 594,457 765,481 171,024 344,007 673,852 329,845 Excess (deficiency) of revenues over (under) expenditures (248,894) (489,610) 240,716 (154,774) (533,554) 378,780 Fund balances, January 1 466,061 489,610 (23,549) 620,835 533,554 87,281 Fund balances, December 31 $ 217,167 $ 0 $ 217,167 $ 466,061 $ 0 $ 466,061 107 City of Salina, Kansas Schedule 19 Page 2 WORKMEN'S COMPENSATION RESERVE INTERNAL SERVICE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL AND BUDGET For the fiscal years ended December 31, 1998 and 1997 108 1998 1997 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues Charges for services $ 0 $ 267,123 $ (267,123) $ 419,601 $ 419,602 $ (1) Use of money and property 77,893 0 77,893 79,248 0 79,248 Reimbursements 6,840 0 6,840 0 30,476 (30,476) Total revenues 84,733 267,123 (182,390) 498,849 450,078 48,771 Expenditures General government Contractual 282,298 299,898 17,600 149,375 273,277 123,902 Cash reserve 0 1,216,959 1,216,959 0 0 0 Total expenditures 282,298 1,516,857 1,234,559 149,375 273,277 123,902 Excess (deficiency) of revenues over (under) expenditures (197,565) (1,249,734) 1,052,169 349,474 176,801 172,673 Fund balances, January 1 1,492,272 1,249,734 242,538 1,142,704 847,290 295,414 Prior year canceled encumbrances 0 0 0 94 0 94 Fund balances, December 31 $ 1,294,707 $ 0 $ 1,294,707 $ 1,492,272 $ 1,024,091 $ 468,181 108 Revenues Charges for services Use of money and property Reimbursements Total revenues Expenditures General government Personal services Supplies Other services and charges Capital outlay Cash reserve Total expenditures Excess (deficiency) of revenues over (under) expenditures Fund balances, January 1 Fund balances, December 31 City of Salina, Kansas CENTRAL GARAGE DIVISION INTERNAL SERVICE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL AND BUDGET For the fiscal years ended December 31, 1998 and 1997 Schedule 19 page3 109 1998 1997 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) $ 704,911 $ 820,000 $ (115,089) $ 755,557 $ 800,000 $ (44,443) 1,085 0 1,085 2,185 G 2,185 40,903 2,998 37,905 9,974 2,998 6,976 746,899 822,998 (76,099) 767,716 802,998 (35,282) 207,880 219,425 11,545 199,900 208,741 8,841 538,345 549,180 10,835 577,893 560,835 (17,058) 22,058 24,416 2,358 7,348 7,348 0 5,549 9,000 3,451 0 0 0 0 101,409 101,409 0 115,887 115,887 773,832 903,430 129,598 785,141 892,811 107,670 (26,933) (80,432) 53,499 (17,425) (89,813) 72,388 26,933 80,432 (53,499) 44,358 89,813 4S,4`1�) $ 0 $ 0 $ 0 $ 26,933 $ 0 $ 26,933 109 Revenues Charges for services Use of money and property Reimbursements Miscellaneous Total revenues Expenditures General government Personal services Supplies Other services and charges Administrative expenses Capital outlay Cash reserve Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources Sale of assets Excess (deficiency) of revenues and other sources over (under) expenditures Fund balances, January I Fund balances, December 31 City of Salina, Kansas INFORMATION SERVICES INTERNAL SERVICE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL AND BUDGET For the fiscal years ended December 31, 1998 and 1997 1998 1997 Schedule 19 Page 4 REI variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) $ 667,580 $ 669,859 $ (2,279) $ 565,833 $ 627,527 $ (61,694) 18,947 0 18,947 10,629 0 10,629 17,550 0 17,550 87,750 0 87,750 3,925 0 3,925 50 4,086 (4,036) 708,002 669,859 38,143 664,262 631,613 32,649 332,351 347,082 14,731 305,410 319,3:57 13,947 15,252 22,000 6,748 0 0 0 95,742 78,400 (17,342) 95,379 91,400 (3,979) 27,543 27,543 0 23,588 23,588 0 147,189 165,000 17,811 215,607 195,000 (20,607) 0 163,875 163,875 0 111,265 111,265 618,077 803,900 185,823 639,984 740,610 100,626 89,925 (134,041) 223,966 24,278 (108,997) 133,275 0 2,250 (2,250) 8,002 0 8,002 89,925 (131,791) 221,716 32,280 (108,997) 141,277 143,592 131,791 11,801 111,312 108,99.7 2,315 $ 233,517 $ 0 $ 233,517 $ 143,592 $ 0 $ 143,592 REI City of Salina, Kansas Schedule 19 HEALTH INSURANCE INTERNAL SERVICE FUND Page 5 SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL AND BUDGET For the fiscal year ended December 31, 1998 Expenditures 1998 General government Variance Claims paid and Favorable Insurance costs Actual Budget (Unfavorable) Revenues 0 — --- ---- -- Charges for services $ 2,810,358 $ 2,658,451 $ 151,907 Use of money and property 22,694 40,000 (17,306) Total revenues 2,833,052 2,698,451 134,601 Expenditures General government Claims paid and Insurance costs 2,375,706 2,035,490 (340,216) Cash reserve 0 662,961 662,961 Total expenditures 2,375,706 2,698,451 322,745 Excess of revenues over expenditures 457,346 0 457,346 Fund balances, January 1 72,663 0 72,663 Fund balances, December 31 $ 530,009 $ 0 $ 530,009 111 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. Traffic signal escrow agency fund - To account for assessments on certain businesses to be used for signalization of intersections benefiting those businesses. 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 payable:s for all City funds. Court bond and restitution agency fund - To account for bonds and restitution remitted to the court and awaiting court orders for distribution. Police investigation account agency fund - To account for monies held by the police department for use in investigations. Police reward fund — To account for monies received and used for rewards in the assistance in criminal investigations. 112 City of Salina, Kansas EXPENDABLE TRUST, NON - EXPENDABLE TRUST AND AGENCY FUNDS COMBINING BALANCE SHEET December 31, 1998 (With comparative totals for December 31, 1997) Expendable Non - Expendable Trust LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ 18 $ 0 $ 0 $ 0 $ 0 Fund balances Unreserved Undesignated 40,351 16,171 191,549 23,069 3,639 Total liabilities and fund balances $ 40,369 $ 16,171 $ 191,549 $ 23,069 $ 3,639 113 War Memorial Maintenance Citizenship Cemetery Mausoleum Tricentennial ASSETS Fund Trust Endowment Endowment Commission Cash and investments $ 40,369 $ 0 $ 0 $ 0 $ 0 Cash and investments - non - expendable trusts 0 16,171 191,549 23,069 3,639 Receivables Accounts 0 0 0 0 0 Interest 0 0 0 0 0 Total assets $ 40,369 $ 16,171 $ 191,549 $ 23,069 $ 3,639 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ 18 $ 0 $ 0 $ 0 $ 0 Fund balances Unreserved Undesignated 40,351 16,171 191,549 23,069 3,639 Total liabilities and fund balances $ 40,369 $ 16,171 $ 191,549 $ 23,069 $ 3,639 113 Schedule 20 Agency Special Traffic Fire Court Assessment Signal Insurance PEGS Payroll Bond and Escrow Escrow Proceeds Access Clearing Restitution $ 122,996 $ 5,861 $ 23,653 $ 611 $ 21,949 $ 21,459 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 122,996 $ 5,861 $ 23,653 $ 611 $ 21,949 $ 21,459 $ 0 $ 0 $ 0 $ 0 $ 21,949 $ 0 611 0 21,459 $ 122,996 $ 5,861 $ 23,653 $ 611 $ 21,949 $ 21,459 114 cont. City of Salina, Kansas EXPENDABLE TRUST, NON - EXPENDABLE TRUST AND AGENCY FUNDS COMBINING BALANCE SHEET December 31, 1998 (With comparative totals for the fiscal year ended December 31, 1997) ASSETS Cash and investments Cash and investments - non- expendable trusts Receivables Accounts Interest Total assets Agency Total Schedule 20 Page 2 Police Police Investigation Reward Account Fund 1998 1997 $ 1,758 $ 0 $ 238,656 $ 494,479 0 0 234,428 215,567 0 0 0 48,288 0 0 0 85 $ 1,758 $ 0 $ 473,084 $ 758,419 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ Fund balances Unreserved Undesignated Total liabilities and 0 $ 0 $ 21,967 $ 504,214 451,117 254,205 fund balances $ 1,758 $ 0 $ 473,084 $ 758,419 MR 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, 1998 and 1997 Revenues Interest Expenditures Parks and recreation Excess of revenues over expenditures Fund balances, January I Fund balances, December 31 w 1998 $ 2,080 $ 1,798 Schedule 21 1997 2,183 540 1,643 $ 40,351 $ 38,553 City of Salina, Kansas NON - EXPENDABLE TRUST FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES For the fiscal year ended December 31, 1998 (With comparative totals for the fiscal year ended December 31, 1997) Operating revenues Charges for services $ Operating expenses Other Operating income Nonoperating revenues Use of money and property Net income Fund balances, January 1 Fund balances, December 31 $ 117 Citizenship Cemetery Trust Endowment 0 $ 6,816 0 35 0 6,781 977 9,694 977 16,475 15,194 175,074 16,171 $ 191,549 Schedule 22 Total Mausoleum Tricentennial Endowment Commission 1998 1997 $ 0 $ 0 $ 6,816 $ 7,228 1,185 139 11,995 11,853 1,185 139 18,776 19,081 21,884 3,500 215,652 196,571 $ 23,069 $ 3,639 $ 234,428 $ 215,652 118 City of Salina, Kansas NONEXPENDABLE TRUST FUNDS COMBINING STATEMENT OF CASH FLOWS For the fiscal year ended December 31, 1998 (With comparative totals for the fiscal year ended December 31, 1997) Cash flows from operating activities Cash received from customers Cash paid to suppliers Net cash provided by operating activities Cash flows from investing activities Interest received Net increase in cash and cash equivalents Cash and cash equivalents, January i Cash and cash equivalents, December 31 Reconciliation of operating income to net cash provided by operating activities Operating income 119 Citizenship Cemetery Trust Endowment $ 0 $ 6,816 0 (35) 0 6,781 977 9,694 977 16,475 15,194 175,074 $ 16,171 $ 191,549 $ 0 $ 6,781 Mausoleum Tricentennial a v a) v a 0 0 Schedule 23 Total 1998 1997 6,816 $ 7,228 (35) 0 6,781 7,228 12,080 11,768 1,185 224 18,861 18,996 21,884 3,415 215,567 196,571 $ 23,069 $ 3,639 $ 234,428 $ 215,567 $ 0 $ 0 $ 6,781 $ 7,228 120 City of Salina, Kansas Schedule 24 AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES For the fiscal year ended December 31, 1998 Balance Balance January 1, December 31, 1998 Additions Deductions 1998 Special Assessment Escrow ASSETS Cash and investments $ 73,396 $ 49,600 $ 0 $ 122,996 LIABILITIES Accounts payable $ 73,396 $ 49,600 $ 0 $ 122,996 Traffic Signal Escrow ASSETS Cash and investments LIABILITIES Accounts payable Fire Insurance Proceeds ASSETS Cash and investments LIABILITIES Accounts payable $ 5,560 $ 301 $ 0 $ 5,861 $ 5,560 $ 301 $ 0 $ 5,861 $ 5,887 $ 18,760 $ 994 $ 23,653 $ 5,887 $ 18,760 $ 994 $ 23,653 121 City of Salina, Kansas AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES For the fiscal year ended December 31, 1998 PEGS Access ASSETS Cash and investments LIABILITIES Accounts payable Payroll Clearing ASSETS Cash and investments Accounts receivable Total assets LIABILITIES Accounts payable Court Bond and Restitution ASSETS Cash and investments LIABILITIES Accounts payable Balance January 1, Schedule 24 Page 2 Balance :December 31, $ 232 $ 151,276 $ 150,897 $ 611 $ 232 $ 151,276 $ 150,897 $ 611 $ 352,043 $ 6,607,045 $ 6,937,139 $ 21,949 48,288 0 48,288 0 $ 400,331 $ 6,607,045 $ 6,985,427 $ 21,949 $ 400,331 $ 6,607,045 $ 6,985,427 $ 21,949 $ 17,057 $ 128,520 $ 124,118 $ 21,459 $ 17,057 $ 128,520 $ 124,118 $ 21,459 122 City of Salina, Kansas Schedule 24 Page AGENCYFUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES For the fiscal year ended December 31, 1998 Balance Balance January 1, December 31, 1998 Additions Deductions 1998 Police Investigation Account ASSETS Cash and investments $ 1,741 $ 20 $ 3 $ 1,758 LIABILITIES Accounts payable Police Reward Fund ASSETS Cash and investments LIABILITIES Accounts payable Total - Agency Funds ASSETS Cash and investments Accounts receivable Total assets LIABILITIES Accounts payable $ 1,741 $ 20 $ 3 $ 1,758 $ 19,731 $ 19,392 $ 39,123 $ 0 $ 19,731 $ 19,392 $ 39,123 $ 0 $ 475,647 $ 6,974,914 $ 7,252,274 $ 198,287 48,288 0 48,288 0 $ 523,935 $ 6,974,914 $ 7,300,562 $ 198,287 $ 523,935 $ 6,974,914 $ 7,300,562 $ 198,287 123 City of Salina, Kansas GENERAL FIXED ASSETS 124 This page left blank intentionally. City of Salina, Kansas COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE December 31, 1998 and 1997 General fixed assets Land Buildings Improvements other than buildings Machinery and equipment Total general fixed assets Investment in general fixed assets by source General fund Special revenue funds Capital projects funds Donations Total investment in general fixed assets 125 1998 Schedule 25 1997 $ 2,589,193 $ 2,589,193 11,250,757 10,788,238 1,119,804 1,068,238 9,885,555 9,217,377 $ 24,845,309 $ 23,663,046 $ 23,497,857 $ 22,387,424 672,937 601,107 656,046 656,046 18,469 18,469 $ 24,845,309 $ 23,663,046 City of Salina, Kansas SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY December 31, 1998 Function and Activity Land Buildings General government Manager $ 0 $ 0 Finance 0 0 Personnel 0 0 General services 19,302 101,612 Human relations 0 0 Bicentennial Center 0 5,298,330 Other 1,885,649 660,190 Total general government 1,904,951 6,060,132 Public safety Police 600 445,363 Municipal court 0 0 Fire 63,302 1,664,760 Inspection 0 0 Total public safety 63,902 2,110,123 Highways and streets Engineering 0 0 Maintenance 10,470 155,2 !i Planning 0 0 Total highways and streets 10,470 155,211 Culture and recreation 609,870 2,925,291 Total general fixed assets $ 2,589,193 $ 11,250,757 126 Schedule 26 Improvements Other Than Machinery Total Total Buildings and Equipment 1998 1997 $ 0 $ 111,187 $ 111,187 $ 107,883 0 205,287 205,287 187,811 0 32,009 32,009 19,246 260,616 315,863 697,393 697,393 0 19,558 19,558 19,558 85,348 1,821,822 7,205,500 7,133,670 0 94,426 2,640,265 2,627,524 345,964 2,600,152 10,911,199 10,793,085 53,820 1,302,183 1,801,966 1,768,125 0 57,243 57,243 49,141 0 2,708,368 4,436,430 3,891,984 0 77,487 77,487 72,538 53,820 4,145,281 6,373,126 5,781,788 0 133,868 133,868 120,906 150,647 1,402,844 1,719,172 1,578,737 0 107,952 107,952 107,952 150,647 1,644,664 1,960,992 1,807,595 569,373 1,495,458 5,599,992 5,280,578 $ 1,119,804 $ 9,885,555 $ 24,845,309 $ 23,663,046 127 City of Salina, Kansas SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY For the fiscal year ended December 31, 1998 Public safety Police 1,768,125 200,774 Municipal court 49,141 8,102 Fire 3,891,984 565,485 Inspection 72,538 4,949 Total public safety 5,781,788 779,310 Highways and streets Engineering General Fixed Maintenance 1,578,737 216,849 Assets 107,952 0 Total highways and streets January 1, Function and Activity 1998 Additions General government Manager $ 107,883 $ 3,304 Finance 187,811 17,476 Personnel 19,246 12,763 General services 697,393 0 Human relations 19,558 0 Bi- Centennial center 7,133,670 71,285 Other 2,627,524 16,241 Total general government 10,793,085 121,069 Public safety Police 1,768,125 200,774 Municipal court 49,141 8,102 Fire 3,891,984 565,485 Inspection 72,538 4,949 Total public safety 5,781,788 779,310 Highways and streets Engineering 120,906 12, �/6? Maintenance 1,578,737 216,849 Planning 107,952 0 Total highways and streets 1,807,595 279,8I I Culture and recreation Total general fixed assets 128 5,280,578 339,364 $ 23,663,046 $ 1,469,554 Interfund Deletions Transfers Schedule 27 General Fixed Assets December 31, $ 0 $ 0 $ 111,187 0 0 205,287 0 0 32,009 0 0 697,393 0 0 19,558 1,100 1,645 7,205,500 3,500 0 2,640,265 4,600 1,645 10,911,199 166,933 0 1,801,966 0 0 57,243 21,039 0 4,436,430 0 0 77,487 187,972 0 6,373,126 0 0 133,868 76,414 0 1,719,172 0 0 107,952 76,414 0 1,960,992 19,950 0 5,599,992 $ 288,936 $ 1,645 $ 24,845,309 129 City of Salina, Kansas Schedule 28 YEAR 2000 ISSUES December 31, 1998 The year 2000 issue is the result of shortcomings in many electronic data processing systems and other equipment that may adversely affect operations in the year 1999 and beyond. For many years, programmers eliminated the first two digits from the year when writing programs. Unfortunately, many programs, if not - corrected, will not be able to distinguish between the year 2000 and the year 1900. This may cause the programs to process data inaccurately or to stop processing altogether. Another factor that may cause problems in programs is the leap year calculation. Some programs are unable to detect the year 2000 as a leap year. Problems affecting a wide range of governmental activities will likely result if computers and other electronic equipment that are dependent upon date sensitive coding are not corrected. The problems have the potential for causing a disruption to some government operations and may temporarily increase the cost of those operations. The City has completed the awareness and assessment stages of its year 2000 plan. Critical systems and equipment have been tested for year 2000 compliance, and remediation and testing of noncompliant systems is scheduled for spring and summer of 1999. Expenditures totaling $110,000 have been made through December 31, 1998 for year 2000 efforts. These expenditures include replacement of software and certain hardware for the city's general financial accounting and management systems, as well as court, police and 911 service systems and upgrades. Because of the unprecedented nature of the year 2000 issue, its effects and the success of related remediation efforts will not be fully determinable until the year 2000 and thereafter. Management cannot assure that the City of Salina is or will be year 2000 ready, that the City's remediation efforts will be successful in whole or in part, or that parties with whom the City conducts business will be year 2000 ready. 130 STATISTICAL SECTION This page left blank intentionally. Other Total 6,362,182 21,708,077 6,337,016 22,700,293 4,547,476 21,919,969 4,533,986 24,028,391 4,690,997 27,815,221 113,315 27,815,221 29,561 28,176,844 176,364 30,066,763 349,859 29,142,189 Table 1 (1) Includes general, special revenue, and debt service funds. (3) Some Expenditures reclassified in 1995. This line presents the 1996 expenditures based on the 1994 and prior classification. (2) Prior year expenditures are not available on a GAAP basis (4) Reflects the functional classification as presented in the 1995 and subsequent year schedules. Total General Government Expenditures 35, 000, 000 City of Salina •f•.:: �:y:.t;;r: r•f:..::' %.':•'• %�.:{+ %:':' %:r' i ;•: /...; ,.r:;•.,+ • {rf. f; .....:.: ;:: r.�:;::�: .:. + {.•:•:• f{,. r:::.•,:':: f,::,; ,r {f f. r; � /;ffc• '•''r:.. f { { {y :'...r iii�;:}:y: {� f ''f{ fi:'.+!i'rf�;: +.' � / 'f r is �• ., �:�f,.:' % :''::•Yr �. �f'. '�/ �: >Y f.. Jr;{ rJr'i:•";::f::�'!f'' +�iY•fj �f r�'i:••: f'!. �l���rr: ;: •::•::; ;r,...;: +:., :,•;..f /�•.r•,••.'+ /i+ /,f• !,y'' f{ •'j;''•{.,/ /l n: +.:; %r�..r f.. r. /.,{! /1..: 30,000,000 :::�...: :•..: %: . f {f' f / ��� / General Government Expenditures by Functions (1) pry +:::•r:•:.l;:ri +:i:ir:;l ` >;::: :;f;:• ff ,�;•,;ii:�r' i ?�'.,i �.•rrr:l;: r:;�: %.r:::;:,•: "�: 25,000,000 %<: r.:::?< ::'ri: + %t >::f: >.::.5:;ij'''!!'r Last Nine Fiscal Years (2) �� %• %''' %'� <s `'•'����:�'��' ';:,.r { .!f { %••. :••+ Fiscal General 20,000,000 'f :: sf ri/ :v'f. +tri { •r; /+ji : •r:{ f''ir i:: Community Health and f Bicentennial Year Government Public Safety Public Works Recreation Cultural Development Welfare Debt Service Capital Outlay Center 1991 1,487,342 4,930,155 1,227,758 1,477,226 327,241 369,179 146,615 2,299,444 1,415,043 1,665,892 1992 1,463,391 5,381,008 1,422,210 1,567,104 337,911 339,084 138,733 2,768,149 1,530,150 1,415,537 1993 1,426,997 5,834,653 1,386,714 1,600,093 346,677 175,254 173,122 2,902,019 1,558,158 1,968,806 1994 1,069,325 6,735,353 1,332,977 1,721,024 379,777 441,307 525,026 2,772,819 2,796,288 1,720,509 1995 (3) 1,167,329 7,321,192 1,464,980 1,741,066 470,270 194,552 553,614 4,387,971 3,756,136 2,067,114 1995 (4) 5,095,357 7,106,760 2,323,002 1,741,066 470,270 286,458 467,772 4,387,971 3,756,136 2,067,114 1996 5,400,526 7,492,967 2,631,025 1,872,887 469,901 473,245 474,604 3,302,600 4,261,039 1,768,489 1997 5,721,204 8,153,762 2,557,584 1,947,685 522,763 246,047 491,299 4,042,308 4,525,977 1,681,770 1998 7,319,381 7,825,422 2,211,719 1,941,834 496,483 260,548 512,818 2,858,079 3,181,300 2,184,746 Other Total 6,362,182 21,708,077 6,337,016 22,700,293 4,547,476 21,919,969 4,533,986 24,028,391 4,690,997 27,815,221 113,315 27,815,221 29,561 28,176,844 176,364 30,066,763 349,859 29,142,189 Table 1 (1) Includes general, special revenue, and debt service funds. (3) Some Expenditures reclassified in 1995. This line presents the 1996 expenditures based on the 1994 and prior classification. (2) Prior year expenditures are not available on a GAAP basis (4) Reflects the functional classification as presented in the 1995 and subsequent year schedules. i9 l 1998 Expenditures Bicentennial Center 7% Other 1% Capital Outlay 11% Debt Service 10% Health and Welfare 2% Community Development 1% Cultural 2% Recreation 7% Public Works 8% General ;rnment 15% Safety A% Total General Government Expenditures 35, 000, 000 •f•.:: �:y:.t;;r: r•f:..::' %.':•'• %�.:{+ %:':' %:r' i ;•: /...; ,.r:;•.,+ • {rf. f; .....:.: ;:: r.�:;::�: .:. + {.•:•:• f{,. r:::.•,:':: f,::,; ,r {f f. r; � /;ffc• '•''r:.. f { { {y :'...r iii�;:}:y: {� f ''f{ fi:'.+!i'rf�;: +.' � / 'f r is �• ., �:�f,.:' % :''::•Yr �. �f'. '�/ �: >Y f.. Jr;{ rJr'i:•";::f::�'!f'' +�iY•fj �f r�'i:••: f'!. �l���rr: ;: •::•::; ;r,...;: +:., :,•;..f /�•.r•,••.'+ /i+ /,f• !,y'' f{ •'j;''•{.,/ /l n: +.:; %r�..r f.. r. /.,{! /1..: 30,000,000 :::�...: :•..: %: . f {f' f / ��� / ,/; :<•:,: pry +:::•r:•:.l;:ri +:i:ir:;l ` >;::: :;f;:• ff ,�;•,;ii:�r' i ?�'.,i �.•rrr:l;: r:;�: %.r:::;:,•: "�: 25,000,000 %<: r.:::?< ::'ri: + %t >::f: >.::.5:;ij'''!!'r �� %• %''' %'� <s `'•'����:�'��' ';:,.r { .!f { %••. :••+ "'fir %:: 20,000,000 'f :: sf ri/ :v'f. +tri { •r; /+ji : •r:{ f''ir i:: ,.,:;;, �:;Y�:�i f ;. 15,000,000 !:r:: •: <:::•:• { f f;; 10,000,000 "u"m 5,000,000 , ®r 1991 1992 1993 1994 1995 1995 1996 1997 1998 (3) (4) i9 l 1998 Expenditures Bicentennial Center 7% Other 1% Capital Outlay 11% Debt Service 10% Health and Welfare 2% Community Development 1% Cultural 2% Recreation 7% Public Works 8% General ;rnment 15% Safety A% Fiscal Year Taxes 1991 13,019,231 1992 13,897,325 1993 15,479,559 1994 16,153,904 1995 17,138,776 1996 17,557, 494 1997 18,416,347 1998 19,364,939 City of Salina General Government Revenues by Source (1) Last Eight Fiscal Years (2) (1) Includes general, special, and debt service funds (2) Prior Year expenditures are not available on a GAAP basis Table 2 Total 21,128,838 21,589,285 24,211,330 25,820,032 27,615,531 28,112,148 28,091,682 30,633,289 132 Charges for Special Intergovernmental Services Fines Assesments Interest Reimbursements Miscellaneous f 2,623,225 2,682,505 395,447 726,245 554,636 672,264 455,285 2,756,614 2,416,921 347,884 881,231 363,734 35,467 890,109 2,769,828 3,174,444 574,958 940,487 444,853 55,968 771,233 3,305,815 3,089,651 1,020,116 868,202 548,655 46,887 786,802 3,170,244 3,585,877 1,093,347 1,012,596 725,163 172,263 717,265 3,342,888 3,160,771 970,233 1,191,772 908,415 423,269 557,306 3,197,436 3,197,039 977,288 1,127,400 589,921 111,603 474,648 3,208,793 5,057,608 895,393 1,050,242 414,670 127,147 514,497 (1) Includes general, special, and debt service funds (2) Prior Year expenditures are not available on a GAAP basis Table 2 Total 21,128,838 21,589,285 24,211,330 25,820,032 27,615,531 28,112,148 28,091,682 30,633,289 132 Total General Government Revenues 35,000,000 ,. %:. � •F` { � "•: {.+ /i: }�`:�`f�• •'.�f •.•. {% :� •� ��jfff`rii` i•' •: +`i • { % {;: {f•ii 'f/ :�: } f!',,y�f; J/{{ f�f��� /`flffff' ff {`j <{,f{. <::•'%ff+.'. 30,000000!: f /ff`'' f {i:•f/.}::: { { %�>. {ff :'• {f; % fx •`{'`;�• �'•{:•if %'%:��: �:f +',4•'i' %.{%''..:;'ii {:.... y, •. . +,r., f•{:;'{:;' r':>' r' f�' f:. iy`.,{••:•%fif /,;:•'J.:•r %f�j': +.{!�! / f., ::.!;� :i .. / '�•F:•'i'r r "i lei', 25,000,000 { %:yjjy4$: • >:.::,�: ..... %if rfr/,+%j f {.. %` filf.•:. :. f�..{ ..::{.; >; ff;.' ?:;:; is :;$1 :.::::< ...:: ' 20,000,000 .'' " /,•.;'':';:• %,. f:• f{,fffj' /: goo °„ •;j'S �:!` >: �{ ' :• W %�i 1,• fi rf f: +:"; f if :� �,'', %,,.:.•.•: „"�':' / :' :•'': '•''•'• ���; •Y!3: �i,.zr`• � 'if {f `: <; .;..;, :;: 15,000,000 :s �rF, . ;, . 'f:'i >{ 6 j %•'' 10,000,000 : '; $ ;,,:,'•; ; !' :{,,: .; ; :; >,. . +; ,gip , ::•i�'• �: % �pd�p, {yf ffH� �� {• 01 5,000,000 . f :: ; .. % : ,, F : {•:.:.:{ ;; {: >: {• 1991 1992 1991 1094 1� 1� iAM� i000 (1) Includes general, special, and debt service funds (2) Prior Year expenditures are not available on a GAAP basis Table 2 Total 21,128,838 21,589,285 24,211,330 25,820,032 27,615,531 28,112,148 28,091,682 30,633,289 132 City of Salina General Government Tax Revenues by Source (1) Table 3 Last Eight Fiscal Years (2) Fiscal Transient Year Property Taxes Sales Tax Franchise Tax Guest Tax Total 1991 5,296,226 5,916,537 1,509,053 297,415 13,019,231 1992 5,607,496 6,287,513 1,537,171 465,145 13,897,325 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 (1) Includes General, special revenue and Debt Service Funds (2) Prior Year Expenditures are not available on a GAAP basis 133 City of Salina Property Tax Levies and Collections Last 10 Fiscal Years Percent of Property Taxes Collected 102.0 °k�, . }J : n: nr {.. :.:.^:1r • :?'T.•J...n.. ::7 �:'" .: J.n'r :77 :. ^ ?_: .tenor... :c-;.. �' grnar ?rn.,.'- " ^- .::.5:!:�F.J: >•5`: r, ... %;,•J;f'rq�F ���.- ?::.>:�.:; +; ? ».' -:: f:= :: ?:,� }r: r r.:f +r:::::.:.;: : �J ?:.uo: -:r -. .•. 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C }ir>;Yf' " %rf r' /r /f 88.0 ° /O 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 ---♦- Percent of Current Takes Collected -- -0 - - Ratio of Total Tax Collections to Tax Levy 134 Table 4 Percent of Delinquent Ratio of Total Fiscal Current Tax Current Taxes Tax Total Tax Tax Collections Year Total Tax Levy Collections Collected Collections Collections to Tax Levy 1989 4,269,464 4,110,719 96.3% 101,102 4,211,821 98.6% 1990 4,693,317 4,394,623 93.6% 104,504 4,499,127 95.9% 1991 4,502,345 4,317,229 95.9% 5,744 4,322,973 96.0% 1992 4,783,117 4,491,134 93.9% 83,939 4,575,073 95.7% 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% Percent of Property Taxes Collected 102.0 °k�, . }J : n: nr {.. :.:.^:1r • :?'T.•J...n.. ::7 �:'" .: J.n'r :77 :. ^ ?_: .tenor... :c-;.. �' grnar ?rn.,.'- " ^- .::.5:!:�F.J: >•5`: r, ... %;,•J;f'rq�F ���.- ?::.>:�.:; +; ? ».' -:: f:= :: ?:,� }r: r r.:f +r:::::.:.;: : �J ?:.uo: -:r -. .•. 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C }ir>;Yf' " %rf r' /r /f 88.0 ° /O 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 ---♦- Percent of Current Takes Collected -- -0 - - Ratio of Total Tax Collections to Tax Levy 134 Table 4 City of Salina Assessed and Estimated Actual Value of Property Last Ten Fiscal Years Assessed Value Fiscal Year Real Estate Personal Property State Assessed 1989 71,441,070 35,215,115 10,765,830 (1)1990 125,389,311 13,454,685 11,094,235 1991 134,834,179 14,314,162 11,208,262 1992 135, 267, 866 16, 751, 713 11, 545, 541 (2)1993 129,632,717 22,447,713 12,849,722 1994 145, 239, 331 22, 678, 728 14, 272, 658 1995 166,462,923 24,890,665 12,528,204 1996 175,997,879 25,550,448 12,708,970 1997 196,360,843 26,279,996 13,954,569 1998 213,488,582 27,534,811 12,909,972 Ratio of Assessed Total, Assessed Estimated Total Value to Estimated Motor Vehicle Value Market Value Market Value 30,847,364 148,269,379 1,160,411,705 12.78 35,096,364 185,034,595 1,026,844,668 18.02 34,515,855 194,872,458 1,075,575,019 18.12 35,803,591 199,368,711 1,105,026,368 18.04 37,569,816 202,499,968 1,175,493,628 17.23 41,805,765 223,996,482 1,314,830,748 17.04 42,981,776 246,863,568 1,482,502,705 16.65 43,786,794 258,044,091 1,551,794,365 16.63 43,994,555 280,589,963 1,716,987,425 16.34 44,924,849 298,858,214 1,850,244,169 16.15 (1) All municipalities in Kansas underwent a complete reappraisal and reclassification of real and personal property as a result of legislative action, effective January 1, 1989. This legislation reappraised property closer to its estimated market value and caused certain types of property to be reclassified, reduced or eliminated from ad valorem taxation. (2) 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. 135 Taxpayer City of Salina Principal Taxpayers 1998 Type of Business 1998 Assessed % of Total Valuation Valuation Western Resources Electric and Gas 4,541,335 1.52% Schwan's Sales Pizza Manufacturing 6,517,611 2.18% Southwestern Bell Telephone Utility 5,335,635 1.79% Warmack, Salina Partnership Retail Shopping Mall 4,844,115 1.62% Wal -Mart Stores, Inc. Discount Retail Stores 2,904,972 0.97% Sunset Plaze, Inc Retail Development 1,817,830 0.61% Deloite and Touche Hotel 1,346,101 0.45% Salina Regional Health and Medical Center Medical Offices 1,946,826 0.65% Dillon's Supermarket 1,523,407 0.51% Great Plains Manufacturing Manufacturing 1,395,594 0.47% Combined Valuation of the Ten Largest Taxpayors 32,173,426 Percent of Total City Assessed Valuation (1) 10.77% (1) Assessed value includes amount attributed to Motor Vehicles 136 Table 6 Fiscal (Budget) Year 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 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 Millage Millage Millage Operating Debt Service Total County Millage Millage Millage Operating Debt Service Total USD Millage Millage Millage Other 19.074 35.007 1.353 36.360 23.460 - 23.460 90.097 22.643 7.372 30.015 19.074 - 19.074 72.065 26.357 3.671 30.028 20.122 - 20.122 76.378 22.764 7.064 29.828 20.464 - 20.464 80.343 22.114 7.735 29.849 21.718 - 21.718 40.301 22.910 6.551 29.461 24.562 - 24.562 37.353 18.555 10.154 28.709 26.571 - 26.571 39.357 15.812 11.130 26.942 20.940 1.985 22.925 39.368 20.692 5.013 25.705 18.141 18.141 36.892 21.587 3.683 25.270 19.497 n 991 on AAA Irz M4 5.542 95.639 4.427 76.492 3.094 79.472 3.029 83.372 3.581 43.882 3.332 40.685 3.044 42.401 2.944 42.312 2.637 39.529 4 09n ecI nA^ 6.653 162.112 5.599 131.180 5.818 135.440 6.074 139.738 6.557 102.006 8.521 103.229 8.265 105.946 8.340 100.519 8.433 91.808 9.869 92.467 (1) The "Other" column includes the State of Kansas, the Salina Airport Authority, and the Salina Public Library. (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. 137 Table 7 City of Salina Special Assesment Billings and Collections Last Ten Fiscal Years Special Assessment Billings and Collections 1,200,000 ; };::: :s >:;•-f:r.:.;.,f•:•.: >;: `f�•o: �� : �/ r .Y�f::•:;•;:,:J;!- r>�:::: ::rr. ::: %. vr:, {:. fr .'!�:. ri;i ?, ?::-•::�•-::: ;i...r }, f'•; � %:2�'�+:rJJri rF �nffi:' :% .r•..,:: /•:.:�;'••r �• >r� ::r:{:• .:`::•.#.�., ;:::. ;/.:.:• . };-j. ', �+ frram r!{te {}•f � /�/rf r f l. f� {'r• f . •i f,•Ji•:+%%I< _r�f r .f { i .: {rYf }+ �f % i .j/ 'f/- f.`} y% :Jr_;.r,rf . �y/r, r,! f�: /f?i„i/irff •.f: 'r/:ry f�r: .•f,.f ; ' +<r:;f-f:: ::'x:;}:, •' :--r : - f• ; :j ;� lf�jl:r:f ir;f :f {:{yf"%{.r-j: r> ;'am 3?.s,;.`+r, -. ?/a .r /. � : r.f:.,;f �:r%: rf: ',% r+ `.#.; y.;,•; ufr- ::l ;' >,;:r/ :fjf/%• : 'S';f,.i:! ��rf<f. .'r •: ? :' :•,•ly f '.- ,?:'+ -> + :r.r ; !,l+�,•; VEN ,>!: `- f OR 1,000,000 . , ff ?�nf{ r Ji! . fi.!.f% . ,/�. : r t / i ,. c't %f:`. { ! if/�lr{: f ! ' %f! f. /' . ; :if / �:: {".: - - !. .;:}. fr.f-f� r! ! ..r : � %,✓r� rJr fJ rf+:f , l� ! `._ : - `-/+'..�rf�1f: � ;':.f:/ /� f: .f +lrl:!. �r . ff /"r l�% r l r / % > f ;i /:fr�': . .%y % ,-';.f,::. <r ,r v /�f } 1! f r r % % %�%"'J : fi,{;::� • . r : .: ::�fJH��f�� -��ififf +! - ? +r��` .:r,.�.y . ?.. +.:,+,.: a:- :r�r..f;;r } {l �•rr %��r' r•!!ii% r. � rr .:. ::. /j : �f% +t'��.._.:; � / /f +r::Yf� j�J•f+ t +': }.� ' r.'x",':frf:':•;.,;��,-- ��! % %/. {-�' � � :; / r�'•l f !'.•+ i::i j,�" f -. ::f: fr {f�f..r -. -riy r:!: }i: + +'f� <`. +- i:!'ffi J { } % < +f +•'ff -rilJl �:.�� �:- i:�f " +L-•?- iS��rn .:�: {r .:.,� /i rr :r�:iff Yi: {:. _J� /•: r� i�: J� J� �.r./.,/ r .. l:! . �� +f �� -i� {I f iiJ4 f fi•- : f r:.y l +�J�j f� .l f �� :; %� %l i�iJ.;.. 800,000 ±�i% :•r�f�' i� fr. % �':i•: ff /fv.i'! f+ ff �vr� J:r !! •Y ::' NOf :::ff • i +f.: ;,� /r� :! %ir.'c -f:.f :: ����.:' %��'r %; 'irr rr,'� %f!'. I•' i`: ffj`rr %f •f />r:.. �� {.j! 'i� {{ !f. f:.:r j:4:•.. 60(),0()() ���, %/. .� tf %�r � ��f'• r 400,000 200,000 ! :�� � iii rj fr r :!f •J r fl�' +• • += 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 ® Special Assessment Billings ® Special Assessment Collections 1. Includes prepayments and delinquent collections. ir: Table 8 Special Ratio of Total Special Assessment Special Assessment Assessments Collections to Total Fiscal Year Billings Collections Assessments Levied 1989 927,768 911,365 0.98 1990 647,655 837,604 1.29 1991 807,452 656,104 0.81 1992 721,334 808,886 1.12 1993 694,497 873,850 1.26 1994 697,015 793,190 1.14 1995 919,364 883,807 0.96 1996 1,139,672 1,131,852 0.99 1997 985,885 1,048,863 1.06 1998 983,383 974,648 0.99 Special Assessment Billings and Collections 1,200,000 ; };::: :s >:;•-f:r.:.;.,f•:•.: >;: `f�•o: �� : �/ r .Y�f::•:;•;:,:J;!- r>�:::: ::rr. ::: %. vr:, {:. fr .'!�:. ri;i ?, ?::-•::�•-::: ;i...r }, f'•; � %:2�'�+:rJJri rF �nffi:' :% .r•..,:: /•:.:�;'••r �• >r� ::r:{:• .:`::•.#.�., ;:::. ;/.:.:• . };-j. ', �+ frram r!{te {}•f � /�/rf r f l. f� {'r• f . •i f,•Ji•:+%%I< _r�f r .f { i .: {rYf }+ �f % i .j/ 'f/- f.`} y% :Jr_;.r,rf . �y/r, r,! f�: /f?i„i/irff •.f: 'r/:ry f�r: .•f,.f ; ' +<r:;f-f:: ::'x:;}:, •' :--r : - f• ; :j ;� lf�jl:r:f ir;f :f {:{yf"%{.r-j: r> ;'am 3?.s,;.`+r, -. ?/a .r /. � : r.f:.,;f �:r%: rf: ',% r+ `.#.; y.;,•; ufr- ::l ;' >,;:r/ :fjf/%• : 'S';f,.i:! ��rf<f. .'r •: ? :' :•,•ly f '.- ,?:'+ -> + :r.r ; !,l+�,•; VEN ,>!: `- f OR 1,000,000 . , ff ?�nf{ r Ji! . fi.!.f% . ,/�. : r t / i ,. c't %f:`. { ! if/�lr{: f ! ' %f! f. /' . ; :if / �:: {".: - - !. .;:}. fr.f-f� r! ! ..r : � %,✓r� rJr fJ rf+:f , l� ! `._ : - `-/+'..�rf�1f: � ;':.f:/ /� f: .f +lrl:!. �r . ff /"r l�% r l r / % > f ;i /:fr�': . .%y % ,-';.f,::. <r ,r v /�f } 1! f r r % % %�%"'J : fi,{;::� • . r : .: ::�fJH��f�� -��ififf +! - ? +r��` .:r,.�.y . ?.. +.:,+,.: a:- :r�r..f;;r } {l �•rr %��r' r•!!ii% r. � rr .:. ::. /j : �f% +t'��.._.:; � / /f +r::Yf� j�J•f+ t +': }.� ' r.'x",':frf:':•;.,;��,-- ��! % %/. {-�' � � :; / r�'•l f !'.•+ i::i j,�" f -. ::f: fr {f�f..r -. -riy r:!: }i: + +'f� <`. +- i:!'ffi J { } % < +f +•'ff -rilJl �:.�� �:- i:�f " +L-•?- iS��rn .:�: {r .:.,� /i rr :r�:iff Yi: {:. _J� /•: r� i�: J� J� �.r./.,/ r .. l:! . �� +f �� -i� {I f iiJ4 f fi•- : f r:.y l +�J�j f� .l f �� :; %� %l i�iJ.;.. 800,000 ±�i% :•r�f�' i� fr. % �':i•: ff /fv.i'! f+ ff �vr� J:r !! •Y ::' NOf :::ff • i +f.: ;,� /r� :! %ir.'c -f:.f :: ����.:' %��'r %; 'irr rr,'� %f!'. I•' i`: ffj`rr %f •f />r:.. �� {.j! 'i� {{ !f. f:.:r j:4:•.. 60(),0()() ���, %/. .� tf %�r � ��f'• r 400,000 200,000 ! :�� � iii rj fr r :!f •J r fl�' +• • += 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 ® Special Assessment Billings ® Special Assessment Collections 1. Includes prepayments and delinquent collections. ir: Table 8 City of Salina Computation of Legal Debt Margin December 31, 1998 Assessed Valuation (1) 298,858,214 Legal Debt Margin: Debt Limit: 30% of Assessed Valuation (2) 89,657,464 Debt Applicable to Limitation: Total Bonded Debt 45,185,000 Less: Revenue Bonds 18,930,000 Fund Balance Designated for Debt Service 741,310 Total Debt Applicable to Limitation 25,513,690 Legal Debt Margin 64,143,774 Table 9 1. Assessed valuation for the purposes of calculating the debt limitation includes the valuation attributable to Motor Vehicles. 139 City of Salina Ratio of Net General Obligation Bonded Debt To Assessed Value and Net General Obligation 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 1989 42,188 148,269,379 6,323,473 237,897 6,085,576 4.10 144.25 1990 42,303 185,034,595 5,801,642 344,280 5,457,362 2.95 129.01 1991 42,510 194,872,458 8,004,443 304,252 7,700,191 3.95 181.14 1992 42,841 199,368,711 8,795,864 333,505 8,462,359 4.24 197.53 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(l) 43,304 246,863,568 8,465,000 1,024,020 7,440,980 3.01 171.83 1996(l) 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 Table 10 1. Population estimates are based on the 1980 and 1990 Census, except 1995 through 1997 are staff estimates based on the 7/004 Census Bureau estimate. The 1998 estimate is based on the 7/1/98 estimate issued by Kansas State Divisionof the From Table 5. Outstanding Debt amounts reflect portion of the outstanding debt for which general taxes will be required. This excludes enue bonds, GO obligations for which other revenue has been pledged, and obligations for which special assessments will be ed. Prior to 1998, this included some bonds for which Solid Waste Revenues were pledged. These were removed from the Uri 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 Ratio of General Debt Service to General Government Expenditures 12.00% :•r:•r•::•...r::, :• ri }: r:...... rr : ?...; f.: ;Y} •J•::vr '' ' : } }' +': ?'�:'•: rr: ? ? ?L.'i fn y:O ; ;:•i: ?4:i: �::::::::::.i'•i::': v.; . }v:::w:::: ii ..:::. • •::.: n: .. . ..• +fvv. :::;::n •.<°°.•°.•°.•ys•;yyy?s;iis° /. r':r:•iry ^n.. }. /• +i.. f.. l...:f .+rJ fi::X:: j• :::: :....:::: ?hk:::::::.:.}• ;y:::.: rr. n.. �J +r :: {:;r •?.i:.i:4i ;:" .. ;.. :. :. .n}.. r:.f f:; . ..} %... r:••:. �:::..:::::,... ::::: ;:::::::.::••`::r :r:•f::.: r.J/ .N }' +rr ?;fir• +. ?;,r r1 %l %..r::.:: ? +rr. ?1O: >.: r: �, ?, /.•:: "' .. �:� r:N r.; f fi,:'rir��f.?J r ?.}•:r: rv:::::: i •r.�:::: •::: r:' • :f::: r:: ✓r ?::'4 ?:'i :J:. i:: J+ "r•Y! : %JJ � {ir � »r� ?•: ?..y .. } {ii %�'.'•,;ir ?r.:.;�..rJ ::ryrr :.•::.r% ::; .ry +•,•:: ? ?.:::::: :, }, :.: ?f::Jrff r'.r>�% :r /% : J�..;,...,.fr:� ?:.ri'}r,.rr., :• �r.? +d :.% '.: f. 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J?f {r :f,. r� J� r % J rrr f��j' J: �1 "f:�^ ffrr %� ''•iJrr� �r:::::: {:}' �' } J< % } /� % }J �:r rr r rte,!}{ 1 � r �� //% J�r�rG.,.:.�!r.: ?r: +:::•.' -:�f %��f�� :, � 1/ //i / /. % }'9J /,"y% r �/''``� :Gr. f., f . r:. �, ,: • r:•rr 1:+r ,r J�ri��r�r. � Jr } �r�;fr� r r� r�.: }'%' ri, } • +r} f.�•Jr JyJJJ } / }::. 'r. %�� +?r }./ }r f% ri: { :fi• � %' r + /•r: ? 'r:f'i} f'� � r •frr.•r'.'rr•,r fir• r J! "'::ir /%: +::�f 1 f:i'JY %.v' % r l• / r , r!i { , //rr:•rj /.; r''J % {j; /:•% >f' +•t ; %i"% .:rr' /. ,' �r': rte' �::. "•..;: 2.00% t ' �,�Jr{//:r•..,:.i� .� , r: :�;:� ' }•r '.{ /r �•: %�. rrrJ � %Jrr.::•:'{r' f }/ .,,rr .rrr {. {� ,�,,/,.`.•. rr�f r r r r r / r } � �! r r�r :;: %/ }::} r�/%`• r� r�%r% .,5 ' r/ fr.% %vr 0.00% 1991 1992 1993 1994 1995 1996 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. GAAP basis information not available prior to 1991. 141 Table 11 Total General Ratio of Debt Service to Governmental General Governmental Fiscal Year Principal Interest (2) Total Debt Service Expenditiures (3) Expenditures (3) 1989 972,202 442,575 1,414,777 1990 967,434 431,955 1,399,389 1991 949,898 398,197 1,348,095 21,708,077 6.21% 1992 1,037,112 541,560 1,578,672 22,700,293 6.95% 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 26,228,037 7.31% 1996 1,229,378 305,808 1,535,186 27,541,282 5.57% 1997 2,549,984 443,461 2,993,445 30,036,763 9.97% 1998 1,563,421 320,010 1,883,431 29,142,189 6.46% Ratio of General Debt Service to General Government Expenditures 12.00% :•r:•r•::•...r::, :• ri }: r:...... rr : ?...; f.: ;Y} •J•::vr '' ' : } }' +': ?'�:'•: rr: ? ? ?L.'i fn y:O ; ;:•i: ?4:i: �::::::::::.i'•i::': v.; . }v:::w:::: ii ..:::. • •::.: n: .. . ..• +fvv. :::;::n •.<°°.•°.•°.•ys•;yyy?s;iis° /. r':r:•iry ^n.. }. /• +i.. f.. l...:f .+rJ fi::X:: j• :::: :....:::: ?hk:::::::.:.}• ;y:::.: rr. n.. �J +r :: {:;r •?.i:.i:4i ;:" .. ;.. :. :. .n}.. r:.f f:; . ..} %... r:••:. �:::..:::::,... ::::: ;:::::::.::••`::r :r:•f::.: r.J/ .N }' +rr ?;fir• +. ?;,r r1 %l %..r::.:: ? +rr. ?1O: >.: r: �, ?, /.•:: "' .. �:� r:N r.; f fi,:'rir��f.?J r ?.}•:r: rv:::::: i •r.�:::: •::: r:' • :f::: r:: ✓r ?::'4 ?:'i :J:. i:: J+ "r•Y! : %JJ � {ir � »r� ?•: ?..y .. } {ii %�'.'•,;ir ?r.:.;�..rJ ::ryrr :.•::.r% ::; .ry +•,•:: ? ?.:::::: :, }, :.: ?f::Jrff r'.r>�% :r /% : J�..;,...,.fr:� ?:.ri'}r,.rr., :• �r.? +d :.% '.: f. 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GAAP basis information not available prior to 1991. 141 Table 11 City of Salina Computation of Direct and Overlapping Bonded Debt General Obligation Bonds December 31, 1998 Net General Obligation Bonded Debt Jurrisdiction Outstanding Direct: City of Salina 9,316,899 Overlapping: Salina Airport Authority (1) 6,195,000 Saline County 1490 000 USD 305 (2) 61,550,000 Total 78,551,899 1. Salina airport Authority Debt is as of July 7, 1999 2. USD 305 Debt is as of June 30, 1999 Percentage Amount Applicable to City Applicable to the of Salina City of Salina 100% 9,316,899 100% 6,195,000 75% 1,110,646 92% 56,465,970 73,088,515 Overlapping Debt, City of Salina City of Salina Salina ,Airport 13% Authority (1) ir •';hi {:.i: }'•:i nr���{{.$y ti{ }ii ?f %?:ti'•• } $i�'':C2' }:'- �'t•' +tii$}-if;: ,.• •rr`�' ::•$k' :,, :3; 5;?F•y.? :..t +.•. f$:r'.;:�:t,'r ��`.,.. fa'? :�'•� - Saline �{ �:;.$2.•+, {.._,... ::::ni•...: ff ::: $$' +•Wf• "$: jQ { {irfi ? ?•i$ {$v v} \.v. �'S2:$':y }i$::i:;:�•• \4`v� }. }_.}.: ::::: }:: •.}{• }::.iv4w :. 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USD 305 (2) 77% 142 Table 12 City of Salina Revenue Bond Coverage Water and Sewer Fund Last Ten Fiscal Years (1) Excludes interest income (2) Excludes Depreciation 143 Table 13 Debt Service Requirements Net Revenue Fiscal Operatinq Operating Available for Debt Year Revenues(l) Expenses(2) Service Principal Interest Total Coverage 1989 6,300,264 3,759,534 2,540,730 390,000 542,751 932,751 2.72 1990 6,158,140 4,002,486 2,155,654 275,000 519,009 794,009 2.71 1991 6,774,391 4,270,897 2,503,494 220,000 542,944 762,944 3.28 1992 7,131,392 4,371,446 2,759,946 265,000 517,915 782,915 3.53 1993 8,171,545 4,350,228 3,821,317 670,000 1,681,527 2,351,527 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 (1) Excludes interest income (2) Excludes Depreciation 143 City of Salina Property Value and Construction Last Ten Fiscal Years Table 14 Number and Value of Building Permits Issued 950 61,00 ,000 : :J . �:i.`•firrr r .:. r ..r,. • :....ri:i }r•s:•i:•i:•;:•:•: ? +J :ufrrrr'• }:• }: -: ii:�'- ii }iiii'- }i'f. ? ? ?y: 1 r. rf .rfffr: ^ }:•: i•`f.• }Y { ?SSYFfi": ?Jw:: ?.:: }'J. ::i3:? ?:::: r:• :• :i•..:::::::: J:"{i{ :ii!:: +. -; }.r: {:!•jf?':;i:<ii ?ii ! ..J. } {iyi.:i_�ii {:!:i.: }:.:. /f. n }. i::::: f? : }::: }f if ii}}iiv }i:i'i ?:: fi•::::: r .�: •: - rr -� - -. r:: J.v..... i .'•:: f:�i ii' {' }:;:}: :;::..,..r. :J • :f.. +:�ti iii •f: rr. :. . •.'•:rr:f ...r:.r....rrr.:r.. � :r:- ::- >:i: %r:: J: } »i} }:•::a:::- }>:- >i:. }:.f: :r.:: ;:.y - -: :. 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(2) U.S. Department of Commerce, Bureau of Economic Analysis. 1998 is a staff projection. (3) Salina Chamber of Commerce. (4) U.S.D. 305, Full Time Equivelancy (5) Kansas Department of Human Resources 145 Labor Force, Per Capita Income School Enrolllment Unemploymen Saline County Fiscal Year Population (1) Saline County (2) Median Age (3) (4) t Rate (5) (5) 1989 41,843 18,176 32.6 7,115 4.4 27,954 1990 42,303 19,898 33.1 7,333 4.1 28,454 1991 42,510 20,047 32.4 7,489 4.2 29,356 1992 42,841 21,006 32.7 7,687 3.8 30,409 1993 43,202 21,317 33.3 7,661 4.6 28,549 1994 43,304 22,606 33.7 7,243 4.6 28,093 1995 43,304 23,528 34.2 7,229 4.4 29,312 1996 44,167 25,049 35.1 7,316 3.7 29,281 1997 44,510 26,422 35.6 7,307 3.6 28,875 1998 44,176 27,833 35.6 7,257 3.5 29,262 Population, Labor Force, and School Enrollment 50,000 :'::?:;:<r':•:<rr ,.; i;:??.:,.;.: f? ?.;: ? ?.;:.;;;;;•.;.:':.;:;;;:;: 8 , 001) .:: /::•::rrn: •:::: •::: } /::::fr: - ��// •:rf..; ..:. +.::.:lv..;; .; {� {.:. � +• :f x :::::::: ..... ri .ii %: ?•:: v: v::.}. rr.+/ f. ?ff.•r: ?•i: :r:'F,.;:!;.h:v } }f ri �i'�f!•;:•: • h r. ;r fi:;iY ry;:� �iii'iii::i:L:�r' v: f r `i ?.J �J'ji: +! i;'i +•' : ?f :::' / /,•;:,:rf:r.'•!. >, },,y: :�.;r.,!:,.;,....... ff%• i:: i??:;?'• ?:::r':;f,c :::::;:yi:::'r':: }.• ryf `i`'.:+;:rytt ?...;�: ?f:�.'•:5:: f... .:/,.:.';::::'+{'•.:+•: YG. /r,;:,••:•:.:••r:;. ?; ?.;r.;; //, r .. %, /.,; r? >j: •i; {' ijj•: . ?issr ?;;tir ?.t;•;:•i:•'::;:..: ?•iii i:•::; {: ? ?:::: / • n ..f ?:.:;: :..; , :f }ff % %i 'rrrr :n.rr:......::r:...>:. /r:. r. ....... .?:,X f? • i;$•}•:,•: Yf}{{;•. ir}:?{: y;: r: %!•i..'•.' + /r!••:•:s: ?.>.; ?; /.f .srf:.:;.:: x'• +••::•::•:.::::::::;, r: ;f:ru r.'••1. ::.'•:•::•:: ?•:Yf •:l f:l :':•r:: ?.;, ?, ? ?. ?�..; >:f ?:!' ?�: r::.� /. +:.:,•:::;:•::lf fY:.:�: +:•:;:•;:Y.'i: / / %r {f• ::. %:: <: =:ry:: . }r.; a.:.Yf.::.; • f.Y :? ;.: •::.;. +::::.; f •::: N.....;.......... 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(2) U.S. Department of Commerce, Bureau of Economic Analysis. 1998 is a staff projection. (3) Salina Chamber of Commerce. (4) U.S.D. 305, Full Time Equivelancy (5) Kansas Department of Human Resources 145 SPECIAL REPORTS SECTION This page left blank intentionally. REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GO VERNMENTAUDITINGSTAN.DARDS Honorable Mayor and City Commissioners City of Salina, Kansas We have audited the general purpose financial statements of City of Salina, Kansas, as of and for the year ended December 31, 1998, and have issued our report thereon dated June 9, 1999. We conducted our audit in accordance with generally accepted auditing standards 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 general purpose 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 Reporting 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 general purpose 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 misstatements in amounts that would be material in relation to the general purpose 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 other matters involving the internal control over financial reporting that we have reported to the management of the City of Salina, Kansas in a separate letter dated June 9, 1999. This report is intended solely for the information and use of the City Commission, management, various federal and state awarding agencies, and the Kansas Department of Administration, Division of Accounts and Reports and is not intended to be and should not be used by anyone other than these specified parties. June 9, 1999 146 This page left blank intentionally, REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A -133 Honorable Mayor and City Commissioners City of Salina, Kansas Compliance We have audited the compliance of the City of Salina, Kansas, with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A -133 Compliance Supplement that are applicable to each of its major federal programs for the year ended December 31, 1998. The City's major federal programs are identified in the summary of auditor's results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of the City's management. Our responsibility is to express an opinion on the City's compliance based on our audit. We conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations. Those standards and OMB Circular A -133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the City's compliance with those requirements. In our opinion, the City of Salina, Kansas, complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended December 31, 1998. Internal Control over Compliance The management of the City of Salina, Kansas is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered the City's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on the internal control over compliance in accordance with OMB Circular A -133. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control 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 noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major federal program 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 compliance and its operation that we consider to be material weaknesses. 147 Schedule of Expenditures of Federal Awards We have audited the general purpose financial statements of the City of Salina, Kansas as of and for the year ended December 31, 1998, and have issued our report thereon dated June 9, 1999. Our audit was performed for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by OMB Circular A -133 and is not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the 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. This report is intended solely for the information and use of the City Commission, management, various federal and state awarding agencies, and the Kansas Department of Administration, Division of Accounts and Reports and is not intended to be and should not be used by anyone other than these specified parties. June 9, 1999 148 City of Salina, Kansas SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the fiscal year ended December 31, 1998 Federal Grantor/ Federal Pass Through Grantor/ CFDA Grant Program Title Number Number Expenditures U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Passed through Kansas Department of Commerce and Housing Small Cities CDBG - Comprehensive Development Project 14.228 96 -CP -005 $ 1,031,219 Emergency Shelter Grant 14.231 S- 97 -DC -20 -0001 16,746 Emergency Shelter Grant 14.231 S- 98 -DC -20 -0001 20,423 HOME Grant - Comprehensive Development Project 14.239 96 -CP -005 304,729 HOME Grant 14.239 M- 96 -SG -20 -0125 46,624 Direct Fair Housing Assistance Program 14.401 FF207K977004 22,000 Fair Housing Assistance Program 14.401 FF207K987004 0 Total U.S. Department of Housing and Urban Development U.S. DEPARTMENT OF INTERIOR Passed through Kansas State Historical Societv National Register Nomination Masonic Temple, Salina, KS 15.904 U.S. DEPARTMENT OF JUSTICE Local Law Enforcement Block Grant Local Law Enforcement Block Grant Local Law Enforcement Block Grant COPS Universal Hiring Award Total U.S Department of Justice TOTAL EXPENDITURES OF FEDERAL AWARDS 16.592 16.592 16.592 16.710 149 20 -98 -13119 -005 96 -LB -VX -3189 97 -LB -VX -2536 98 -LB -VX -2536 97 -UM -WX -0549 1,441,741 180 31,990 36,469 0 43,273 111,732 $ 1,553,653 This page left blank intentionally. City of Salina, Kansas SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year ended December 31, 1998 SUMMARY OF AUDITORS' RESULTS 1. Type of report issued on financial statements: 2. Reportable conditions in internal control over the financial statements: 3. Were any reportable conditions noted in 2 above reported as a material weakness: 4. Material noncompliance disclosed: 5. Reportable conditions in internal controls over major programs: 6. Were any reportable conditions noted in 5 above reported as a material weakness: 7. Type of report on major program compliance: 8. Audit disclosed audit findings required to be reported under Circular A -133 paragraph 510(a): 9. Major Programs: Programs Small Cities CDBG HOME CFDA 14.228 14.239 See Schedule of Expenditures of Federal Awards for additional details. 10. Threshold used to distinguish between Type A and Type B programs: 11. Auditee qualified as a low -risk auditee: 150 Unqualified No No No No No Ungualif ed No Expenditures $ 1,031,219 351,353 1; 300,000 No