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Audit - 1996CITY OF SALINA, KANSAS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the fiscal year ended December 31, 1996 Prepared by: Department of Finance and Administration Rodney Franz Director of Finance CITY OF SALINA, KANSAS Comprehensive Annual Financial Report For the fiscal year ended December 31, 1996 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 2 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types, Expendable Trust Funds and Discretely Presented Component Units 2 6 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Actual and Budget - General, Special Revenue and Debt Service Funds 3 10 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 14 Combined Statement of Cash Flows - All Proprietary Fund Types, Similar Trust Funds and Discretely Presented Component Units 5 16 Notes To Financial Statements 20 Schedule Combining, Individual Fund and Account Group Statements and Schedules General Fund 45 Comparative Balance Sheets - General Fund 1 46 Comparative Statements of Revenues, Expenditures and Changes in Fund Balances - General Fund 2 47 Schedules of Revenues, Expenditures and Changes in Fund Balances - Actual and Budget - General Fund 3 48 i CITY OF SALINA, KANSAS Comprehensive Annual Financial Report For the fiscal year ended December 31, 1996 TABLE OF CONTENTS - CONTINUED Schedule Page Special Revenue Funds 51 Combining Balance Sheet - Special Revenue Funds 4 53 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Special Revenue Funds 5 57 Schedules of Revenues, Expenditures and Changes in Fund Balances - Actual and Budget - Special Revenue Funds 6 61 Debt Service Fund 70 Comparative Balance Sheets - Debt Service Fund 7 71 Comparative Statements of Revenues, Expenditures and Changes in Fund Balances - Debt Service Fund 8 72 Schedules of Revenues, Expenditures and Changes in Fund Balances - Actual and Budget - Debt Service Fund 9 73 Capital Projects Fund 74 Comparative Balance Sheets - Capital Projects Fund 10 75 Comparative Statements of Revenues, Expenditures and Changes in Fund Balances - Capital Projects Fund 11 76 Enterprise Funds 77 Combining Balance Sheet - Enterprise Funds 12 78 Combining Statement of Revenues, Expenses and Changes in Retained Earnings - Enterprise Funds .13 80 Combining Statement of Cash Flows - Enterprise Funds 14 82 Schedules of Revenues, Expenditures and Changes in Fund Balances - Actual and Budget - Enterprise Funds 15 86 Internal Service Funds 90 Combining Balance Sheet - Internal Service Funds 116 91 Combining Statement Of Revenues, Expenses And Changes In Retained Earnings - Internal Service Funds 1.7 93 Combining Statement Of Cash Flows - Internal Service Funds 18 95 Schedules Of Revenues, Expenditures And Changes In Fund Balances - Actual And Budget - Internal Service Funds 19 99 ii CITY OF SALINA, KANSAS FINANCIAL STATEMENTS For the fiscal year ended December 31, 1996 TABLE OF CONTENTS - CONTINUED Schedule Page Trust and Agency Funds Table 103 Combining Balance Sheet- Expendable Trust, Nonexpendable 1 121 Trust and Agency Funds 2.0 104 Comparative Statements of Revenues, Expenditures and Changes 3 123 in Fund Balances - Expendable Trust Fund 21 107 Combining Statement of Revenues, Expenses and Changes in 5 125 Fund Balances - Nonexpendable Trust Funds 22 108 Combining Statement of Cash Flows - Nonexpendable Trust Funds 23 110 Combining Statement of Changes in Assets and Liabilities - B 128 Agency Funds 24 112 General Fixed Assets 115 Comparative Schedule Of General Fixed Assets By Source 25 116 Schedule Of General Fixed Assets - By Function And Activity 26 117 Schedule Of Changes In General Fixed Assets - By Function And Activity 27 119 STATISTICAL SECTION Table General Government Expenditures by Function 1 121 General Government Revenues by Source 2 122 General Government Tax Revenues by Source 3 123 Property Tax Levies and Collections 4 124 Assessed and Estimated Actual Value of Property 5 125 Principal Taxpayers 15 126 Property Tax Rates - Direct and Overlapping Governments '7 127 Special Assessments Billings and Collections B 128 Computation of Legal Debt Margins !) 129 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita 10 130 iii CITY OF SALINA, KANSAS FINANCIAL STATEMENTS For the fiscal year ended December 31, 1996 TABLE OF CONTENTS - CONTINUED Table Page Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debt to Total General Governmental Expenditures 11 131 Computation of Direct and Overlapping Bonded Debt 12 132 Revenue Bond Coverage - Water and Sewer Fund 13 133 Property Value, Construction, and Bank Deposits 14 134 Demographic Analysis 15 135 SINGLE AUDIT SECTION Report of Independent Certified Public Accountants on Schedule of Federal Financial Assistance 136 Schedule of Federal Financial Assistance 137 Report of Independent Certified Public Accountants on Internal Control Structure Based on an Audit of General Purpose Financial Statements Performed in Accordance with Government Auditing Standards 138 Report of Independent Certified Public Accountants on the Internal Control Structure Used in Administering Federal Financial Assistance Programs 140 Report of Independent Certified Public Accountants on Compliance with Laws and Regulations Based on an Audit of General Purpose Financial Statements Performed in Accordance with Government Auditing Standards 142 Report of Independent Certified Public Accountants on Compliance with the General Requirements Applicable to Federal Financial Assistance Programs 143 Report of Independent Certified Public Accountants on Compliance with Specific Requirements Applicable to Nonmajor Federal Financial Assistance Program Transactions 144 uI INTRODUCTORY SECTION This page left blank intentionally. June 30, 1997 To the Citizens of the City of Salina, Kansas CITY MANAGER • DENNIS M. KISSINGER City - County Building • 300 West Ash Street • P.O. Box 736 Salina Salina, Kansas 67402 -0736 u,uteiu ntt TELEPHONE (913) 826 -7250 • FAX (913) 826 -7244 1M9 The Comprehensive Annual Financial Report of the City of Salina, Kansas (the "City ") for the year ended December 31, 1996, 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 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. The City is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984 and U.S. Office of Management and Budget Circular A -128, Audits of State and Local Governments. Information related to this single audit, including the schedule of federal financial assistance and the independent auditors' reports on the internal control structure and compliance with applicable laws and regulations, is included in a fourth section. 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 1996, the City experienced a year of solid growth in several areas and continued to solidify its standing as the re, =ional trade center for north central and north west Kansas. Building on growth in recent years, retail expansion continued to be significant in the community, particularly in the I -70 and South 9th Street commercial corridors. A total of 22 new business building permits were issued. New retail facilities included: the Central National Bank, the Solomon State Bank, Holiday Inn Express, Auto Zone, Office Max and a Golden Corral Restaurant, as well as several other "fast food" establishments. In addition, a new retail development, Belmont Plaza, was constructed, with several businesses scheduled to build in 1997. The activity in the housing industry continued unabated in 1996 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 105 new single- family homes were started in 1996 with the pace expected to continue at this level or higher through 1997. In 1996, builders started I new subdivision with 25 developable lots to help increase the availability of building lots, following a very strong 1995 subdivision effort. In addition to single family homes, construction on Chapel Ridge, a 144 unit, $4.87 million apartment complex, was initiated. Completion is scheduled for mid -1997. In addition, Sterling house, an assisted living center, completed a 30 unit expansion. Several industries 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, began a two phase expansion of their facilities in 1996. Phase I, consisting of a 22,000 square foot leased facility was completed in December, 1996. Phase II, a 4,800 square foot addition to the existing facility is scheduled for completion in 1997. The expansion will result in 18 new jobs and result in about $700,000 in payroll. Crestwood, Inc., a manufacturer of custom built cabinetry completed construction of a new 165.000 square foot manufacturing facility, replacing its current Salina plant and adding 50 jobs to its present complement of 130 employees. Exide corporation completed a 50,000 square foot, $1.2 million warehouse facility, creating 8 additional jobs, in its vehicle battery operation. Archer - Daniels - Midland (ADM) completed construction of a new 76,000 square foot fabrication shop, warehouse, and office facility. Salina houses the engineering and technical group services for the ADM Milling Division, serving 60 sites in the U,S., Canada, and Mexico. Maior Initiatives The City continued its efforts to meet federal environmental regulations at its solid waste landfill. The landfill is constructed in semi - separate disposal areas called "cells ", costing $2,000,000 each with a life of 3 to 4 years. The total estimated useful life of the landfill is 40 to 60 years. Cell # 3 is scheduled for Construction in 1998, with Cell # 2 scheduled to close shortly after. The City, Saline County and the State of Kansas combined to initiate construction on a project to improve and widen Schilling Road and construct a major storm water interceptor to protect key commercial and residential areas of South Salina. The City's share of the $1,294,000 project is $497,000. Completion is scheduled for 1998. The intersection of 9t' Street and Broadway Boulevard was reconstructed in 1996 at a cost of $1,22.0,000. This is a major access point to the South Ninth Commercial and Industrial Districts, as well a major connection between the central, downtown, and southern sections of the community. These improvements provided a vast improvement to traffic flow and safety in the area, as well as improving the aesthetic quality of the neighborhood. The City is also in the midst of a multi -year project to improve major roadways in the southwest part of the city. Work is proceeding on a new interchange at 1 -135 and Magnolia Street, with completion scheduled for the fall of 1997. Local funding of approximately $5,000,000 will be matched with $2,500,000 in federal fiends to improve access to a major retail area of the city and to Kansas State University - Salina and to the Airport Industrial Center. Additional road and bridge projects are also planned to improve access to the Airport Industrial Center. Water and Wastewater Improvements remain an important component of the Capital Improvements :Program, with a series of wastewater pump stations being replaced throughout the City with an improved, lower maintenance design at a total cost of $2,465,000. In addition, major improvements to the Water treatment plant are being designed to increase treatment capability and efficiency, and to address a groundwater contamination issue in Central Salina. By 1998 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 iimprovements is $5,500,000. Approximately $1,800,000 will be available from the State of Kansas to assist in construction. The balance of the cost will be financed by revenue bonds over a 20 year term. Solid Waste disposal remains a challenge for Salina. The community remains committed to recycling and resource conservation, with several initiatives planned for 1997, including a trial yard waste recycling and composting program in addition to continuing the mulching mower rebate program. These initiatives will reduce the volume of waste to be disposed in the landfill, but will also reduce the revenue stream. vi The Salina Public Library initiated an expansion project designed to increase the space and services available to library patrons, particularly in children's services at a cost of $1,900,000. While the bulk of the project is financed with current Library Board resources, the City of Salina has provided debt financing in the amount of $210,000. The City's Capital Improvement Plan for 1997 -2001 itemizes projects totaling $35,735,000. The plan is updated each year, just prior to the operating budget process. Financial Overview Actions taken since 1992 have set the stage for what looks to be long -term financial stability for the City. These actions, combined with a strong economy, have allowed the City to replenish its fund balances and utilize more pay - as- you -go financing for capital improvements. Fund balances related to general government operation funds went from $6,894,620 at the end of 1995 to $7,666,038 at the end of 1996. This was primarily due to revenues being greater than expected, largely in the areas of interest income and in permits and inspection fees. A lower than anticipated delinquency rate on property taxes also contributed to the revenue stream. The City also established the rates needed to fund enterprise fund activities. Water rates were increased by 3% on January 1, 1996 while Sewer rates were increased by less than 1% on July 1, 1996. Refuse collection fees were increased by 5.8% on 1/1/96. Tipping fees for the landfill were increased from $16 per ton to $20 per ton in 1996. Significant future increases remain likely as Subtitle D requirements are fully implemented. 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. Single Audit. As a recipient of Federal, State and County financial assistance, the City also is responsible for insuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to those programs. This internal control structure is subject to periodic evaluation by management. As part of the City's single audit, described earlier; tests are made to determine the adequacy of the internal control structure, including that portion related to federal financial assistance programs, as well as to determine that the City has complied with applicable laws and regulations. The results of the City's single audit for the year ended December 31, 1995 provided no instances of material weaknesses in the internal control structures or significant violation of applicable laws and regulations. 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 level of budgetary control is maintained at the department level by the encumbrance of estimated purchase amounts prior to the release of purchase orders to vendors. Open encumbrances are reported as reservations of fund balance at December 31, 1996 in the general fund and the special revenue fund. Various internal compliance procedures are implemented to insure proper implementation of the budget as well as to maintain a degree of accountability for boith revenues and expenditures. vii General Government Functions Shown below are the December 31 actual budgetary basis fund balances in the city's tax supported funds for 1993, 1994, 1995, and 1996. Fund 1993 1994 1995 1996 General $3,357,127 $4,313,622 $4,243,971 $4,512,205 Employee Benefits 539,590 810,223 1,199,369 1,595,601 Utility 121,696 236,111 348,790 409,667 Special Liability 26,364 52,139 78,470 96,026 Bond and Interest 539,887 797,083 1,024,020 1,052,539 Fund Balance $4,475,137 $6,209,178 $6,894,620 $7,666,038 Operating expenditures tax supported funds Fund balance as percent of operating expenditures $16,693,296 $19,243,378 19,298,921 ----- - - - - -- ---- - - - - -- ---- - - - - -- 26.8% 32.3% 35.7% $20,203,037 37.9% 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, 1995 and 1996. Revenue 1995 -1996 1995 Chance Taxes $418,718 Intergovernmental 172,644 Charges for Services (425,106) Fines (123,114) Interest 183,252 Special Assessments 179,176 Other 91,047 Total Revenues $496,617 1996 1996% 1995 1995 % of Total of Total $17,557,494 62.5 $17,138,776 62.1 3,342,888 11.9 3,170,244 11.5 3,160,771 11.2 3,585,877 13.0 970,233 3.5 1,093,347 4.0 908,415 3.2 725,163 2.6 1,191,772 4.2 1,012,596 3.7 980,575 3.5 889,528 3.2 $28,112,148 100.0 $27,615,531 100.0 Besides the revenue increases mentioned earlier, the City did experience other revenue increases. Interest income increased $ 183,412 due to changing interest rates, the continued ability to invest funds in two year maturities, and increasing fund balances to invest. Intergovernmental revenues increased due largely to increased yield of the gas tax. Charges for services declined substantially. This was due to a reduction of $304,000 in Bi- Centennial Center fees. This fee change occurred entirely within the Event Fund, and was offset by a reduction of expenditures in that non - budgeted fund. Net revenues to the Bi- Centennial Center operational fund increased by $25,000. Miscellaneous service charges in the General Fund also showed a decline. Sales taxes showed an increase, but the rate of growth slowed considerably, from 6.9% to 1.7% (See table 3, Statistical Section). 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, 1995 and 1996. Expenditure 1995-1996 1996 1996 % of 1995 1995 % of Change Charges for Services: Total Total General Government $305,169 $5,400,526 19.6 $5,095,357 19.4 Public Safety 386,207 7,492,967 27.2 7,106,760 27.1 Public Works 308,023 2,631,025 9.6 2,323,002 8.9 Recreation 131,821 1,872,887 6.8 1,741,066 6.6 Cultural (369) 469,901 1.7 470,270 1.8 Community Development 186,787 473,245 1.7 286,458 1.1 Health & Welfare 6,832 474,604 1.7 467,772 1.8 Bicentennial Center (298,625) 1,768,489 6.4 2,067,114 7.9 Debt Service (133,749) 2,667,038 9.7 2,800,787 10.7 Capital Outlay 504,903 4,261,039 15.5 3,756,136 14.3 Other (83,754) 29,561 .1 113,315 .4 Total Expenditures $1,313,245 $27,541,282 100.0 $26,228,037 100.0 Increases in General Government were largely attributable to increases in Employee Benefits, especially Health Insurance. Other benefit costs increased as well. Significant increases were also apparent in Personnel, Permits and Inspection, and Housing Rehabilitation. Public Safety expenditures increased primarily due; to inflationary pressures and capital acquisition costs. The decrease in the Bicentennial Center expenditures is due solely to decreases in the costs affiliated with events and event promotion, as noted earlier. The decline in debt service is due to retirement schedules on the City's debt. The amount expended for Capital Outlay from operating fund cash increased by $504,903. This continues the trend in recent years of using cash in place of debt financing for major capital projects. This approach conserves the capacity to issue future debt, while maintaining and expanding the community's physical infrastructure. The ability to use cash for Capital Improvements reflects the sound economy of the area and the commitment of local officials to maintenance of community facilities. 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 1996, with Water being increased by 3% on 1/1/96 and the base Sewer ix 1995 -1996 1996 1995 Change Charges for Services: Water and Sewer $522,128 $10,376,007 $9,853,879 Sanitation $63,852 $1,125,543 $1,061,691 Solid Waste $494,097 $1,965,438 $1,471,341 Golf Course $40,210 $676,131 $635,921 Water Account billings 2693 222,620 219,9217 Water Metered (billion gallons) .028 2.068 2.040 Wastewater Treated (billion gallons) .06 1.753 1.69' Waste Tonnage at landfill 3,260 93,333 90,073 Number of Vehicles at Landfill 512 23,575 23,063 Golf Rounds 239 42,091 41,852 Sanitation Customers 219 12,772 12,553 Water and Sewer rates were both changed in 1996, with Water being increased by 3% on 1/1/96 and the base Sewer ix Rate increasing from $5.13 to $5.22 per month on 7/1/96. The Sewer volume charge was not changed. This is less than a 1% increase. Sanitation rates were increased by 5.8% on 1/1/96. Water and sewer revenues increased by $522,128 (5.3 %) in 1996 despite a decline in the amount of water metered. This is due, in part, to the rate increase and to the increase in the customer base. Golf fees showed a $40,000 increase. Rounds played increased slightly, and green fees received were stable. Pro shop revenues increased by about $30,000. The City continued the process of updating the solid waste facility to meet subtitle D Federal regulations. Rates were increased to $20 /ton in 1996 Disposal fees are scheduled to increase to $28 /ton in 1997, with future rate increases anticipated, although on a smaller scale. The community remains committed to recycling/resource conservation, and is planning several In late, 1996, the City was notified by 2 large customers that they had found alternate disposal sites. This, in conjunction with the resource conservation initiatives will reduce the volume demand on the landfill by an estimated 15,000 tons, but will also reduce the revenue stream. Solid Waste service charges did increase by $494,097. Sanitation charges increased by $63,852, or 6 %. The City utilizes four 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 $1,000,000 reserve in this fund to provide adequate reserves should we experience heavy claims. At the end of 1996, fund equity was $1,129,611, meeting this goal, compared to fund equity of $647,712 in 1995. 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 1996. The total amount of revenue bonds outstanding at December 31, 1995 was $34,890,000. There is a reserved investment of $10,667,462 pledged to retire the bonds refunded in the 1994 crossover refunding. The resulting net obligation against the Water /Sewer Utility's revenue stream is $24,222,538. With the City's policy of issuing revenue bonds for no more than 20 years, the final maturity for these bonds is October 1, 2014. The City's general policy for General Obligation bonds is to issue them for no more than 10 years. The City issued $1,847,000 of internal improvement bonds during 1996. Total bonds outstanding at December 31, 1996 was $10,982,000 with final maturity scheduled for August 1, 2006. Based upon December 31, 1996 General Obligation bonds outstanding, per capita debt is $245. The City is well below its maximum debt limit with $46,118,096 in authority remaining. Internal Improvement temporary notes in the amount of $5,050,000 were issued in March, 1996 for the construction of the Magnolia Interchange. These notes will be retired in March, 1997 with the issue of a subsequent note and by applying resources accumulated in the Debt Service Fund. The remaining notes will be replaced with the issuance of long term General Obligation Bonds in March, 1998. 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 x investments. At December 31, 1996, investments under the City's direct control were as follows: Investment Municipal Investment Pool U.S. Government Investment in Deferred Compensation Plan Bond Escrow —US Treasury Bills Total Amount Percentage $ 12,516 -- 24,205,289 65.5% 2,064,933 5.6% 10,667,062 28.9% j6,9S,1UU MUM% The investments in the Deferred Compensation Plan and the Bond Escrow are restricted to specific purposes and are not available for Government 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 Betty Charles, Account Clerk II, 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 Rodney Franz Director of Finance & Administration X1 This page left blank intentionally. City of Salina CITIZENS CITY COMMISSION Kristin M. Seaton, Mayor Peter F. Brungardt Don Heath Alan Xlka Monte Shadwick CTI'Y MANAGER Dennis M. Kissinger Deputy City Manager ; Michael W. Morgan Municipal Court Risk Management Municipal Court Judge Attorney Administration Administration Phil Shaffer City Gt eg Bengtson • City Prosecutor Personnel Ellen Mitchell Mel Abbott Human Relations Information Services Kaye Crawford David Larrick Fire Eng. & Utilities Police General Services Tom Girard Frank Reinhold Don Hoff I Jim Hill Fire Suppression Streets Engineering Patrol EMS Flood Works Design/Inspection Investiigations Codes/Inspection Cemetery Traffic 911 /G�mmunications Public Education Traffic Control Water & Waste Water Util. Intem'I Affairs Central Garage Water Treatment & Dist. Sanitation Waste Wtr. Collect /Treat Landfill Planning & Dev. Bicentennial Center Finance & Admin. Arts & Humanities Parks & Recreation Roy Dudark Keith Rawlin s Martha Rhea Steve Snyder Rod Franz Planning erations Museum Swimming Pools City Clerk Permits & Ins i od & Beverage [Businessfricket Arts Education GolfCourse Accounting Community Office Arts Services Neighborhood Ctrs. Utility Accounting River Festival Parks Treasurer Recreation Forestry • Contract Position (Rev. 4/97) This page left blank intentionally. City of Salina, Kansas List of Principal Officials City Commission Evelyn Maxwell, Mayor Kristin M. Seaton, Vice Mayor Peter F. Brungardt, Commissioner John Divine, Commissioner R. Abner Perney, Commissioner Cijy Staff Dennis M. Kissinger, City Manager Michael Morgan, Deputy City Manager Rodney Franz, Director of Finance and Administration Don Hoff, Director of Engineering and Utilities Jim Hill, Chief of Police Tom Girard, Fire Chief Frank Weinhold, General Services Director 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 Will Burnett, Human Relations Director Mel Abbot, Personnel Director Greg Bengston, City Attorney David Larrick, Information Services Director xiv This page left blank intentionally. FINANCIAL SECTION This page left blank intentionally. 234 South Main � W. Keith Gaeddert P.O. Box 1020 A ler o aeddert CHARTERED Lucille L. Hinderliter Ottawa, Kansas 66067 Raymond E. Meyer, Jr. (913) 242 -3170 Certified Public Accountants REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS Board of the City Commissioners City of Salina, Kansas We have audited the accompanying general purpose financial statements of the City of Salina, Kansas as of and for the year ended December 31, 1996 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; Government Auditing Standards, issued by the Comptroller General of the United States; the provisions of the Office of Management and Budget (OMB) Circular A -128, "Audits of State and Local Governments'; and the Kansas Municipal Audit Guide. Those standards and OMB Circular A -128 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, 1996, and the results of its operations and cash flows of its proprietary fund types and nonexpendable gust 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 May 22, 1997 on our consideration of the City of Salina, Kansas' internal control structure and a report dated May 22, 1997 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 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. 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. In charge of and actively engaged in this audit: Certified Public Accountant May 22, 1997 1 This page left blank intentionally. GENERAL PURPOSE FINANCIAL STATEMENTS City of Salina, Kansas COMBINED BALANCE SHEET ALL FUND TYPES, ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNITS December 31, 1996 Proprietary LIABILITIES, EQUITY AND OTHER CREDITS LIABILITIES Governmental Fund Types Fund Types Accounts payable Special Debt Capital 26 $ 322,763 General Revenue Service Projects Enterprise ASSETS AND OTHER DEBITS Due to funds 0 198,829 0 265,923 ASSETS Meter deposits payable 0 0 0 0 Cash and investments $ 5,325,053 $ 3,536,259 $ 1,052,539 $ 0 $ 14,141,848 Cash with fiscal agent 0 0 55,839 0 0 Receivables (net of allowance interest payable 0 0 55,839 0 for uncollectibles) Accounts 289,260 50,246 0 0 710,485 Taxes 2,290,803 2,300,208 2,289,301 0 0 Grants 0 17,796 0 0 0 Interest 201,224 0 0 0 61,071 Notes 0 323 0 0 0 Inventory and prepaid supplies 57,882 0 0 0 402,707 Due from funds 464,752 0 0 0 0 Prepaid expenses 0 0 0 0 0 Restricted assets Cash and investments 0 0 0 0 10,667,462 Fixed assets (net of accumulated depreciation) 0 0 0 0 52,089,037 Financing leases 0 0 0 0 0 Deferred charges 0 0 0 0 531,413 OTHER DEBITS General fixed assets 0 0 0 0 0 Amount available in debt service funds 0 0 0 0 0 Amount to be provided for retirement of general long -term debt 0 0 0 0 0 Total assets and other debits $ 8,628,974 $ 5,904,832 $ 3,397,679 $ 0 $ 78,604,023 LIABILITIES, EQUITY AND OTHER CREDITS LIABILITIES Accounts payable $ 167,251 $ 124,950 $ 0 $ 26 $ 322,763 Retainage payable 4,948 10,414 0 28,089 75,040 Due to funds 0 198,829 0 265,923 0 Meter deposits payable 0 0 0 0 78,656 Health claims payable 0 0 0 0 0 Matured principal and interest payable 0 0 55,839 0 0 The accompanying notes are an integral part of this statement. 2 Statement 1 Proprietary Fiduciary Total Total Fund Types Fund Types Account Groups Primary Reporting General e-n-e FiT Government Entity Internal Trust and Fixed Long- (Memoran- Component (Memoran- Service Agency Assets Term Debt dum Only) Units dum Only) $ 2,080,330 $ 2,770,099 $ 0 $ 0 $ 28,906,128 $ 953,755 $ 29,859,883 0 0 0 0 55,839 0 55,839 0 0 0 0 1,049,991 162,518 1,212,509 0 0 0 0 6,880,312 0 6,880,312 0 0 0 0 17,796 0 17,796 0 0 0 0 262,295 0 262,295 0 0 0 0 323 0 323 53,447 0 0 0 514,036 0 514,036 0 0 0 0 464,752 0 464,752 0 0 0 0 0 8,705 8,705 0 0 0 0 10,667,462 404,445 11,071,907 496,208 0 0 0 52,585,245 17,040,767 69,626,012 0 0 0 0 0 1,992,945 1,992,945 0 0 0 0 531,413 76,237 607,650 0 0 22,990,725 0 22,990,725 5,287,276 28,278,001 0 0 0 1,052,539 1,052,539 0 1,052,539 0 0 0 16,135,898 16,135,898 0 16,135,898 $ 2,629,985 $ 2,770,099 $ 22,990,725 $ 17,188,437 $ 142,114,754 $ 25,926,648 $ 168,041,402 $ 45,228 $ 471,685 $ 0 0 0 0 128,986 0 0 0 0 $ 0 0 0 0 1 0 $ 1,131,903 $ 0 118,491 0 464,752 0 78,656 0 128,986 0 55,839 189,365 $ 1,321,268 0 118,491 0 464,752 0 78,656 0 128,986 0 55,839 3 cont. City of Salina, Kansas COMBINED BALANCE SHEET ALL FUND TYPES, ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNITS December 31, 1996 Total liabilities, equity and other credits $ 8,628,974 $ 5,904,832 $ 3,397,679 $ 0 $ 78,604,023 The accompanying notes are an integral part of this statement. 4 Proprietary Governmental Fund Types Fund Types Special Debt Capital General Revenue Service Projects Enterprise LIABILITIES - continued Payable from restricted assets Accrued interest payable $ 0 $ 0 $ 0 $ 0 $ 396,241 Revenue bonds payable - current 0 0 0 0 1,015,000 Deferred interest - financing leases 0 0 0 0 0 Deferred compensation payable 0 0 0 0 0 Accrued compensated absences 0 0 0 0 410,168 Capital leases 0 0 0 0 0 General obligation bonds - current 0 0 0 0 248,523 Temporary notes payable 0 0 0 0 1,395,000 General obligation bonds payable 0 0 0 0 1,625,320 Revenue bonds payable 0 0 0 0 33,875,000 Mortgages payable 0 0 0 0 0 Landfill closure and postclosure 0 0 0 0 460,929 Deferred revenue 1,478,168 1,821,304 2,289,301 0 14,367 Total liabilities 1,650,367 2,155,497 2,345,140 294,038 39,917,007 EQUITY AND OTHER CREDITS Investment in general fixed assets 0 0 0 0 0 Contributed capital 0 0 0 0 8,469,660 Retained Earnings Reserved for encumbrances 0 0 0 0 2,616,336 Reserved for bond retirement 0 0 0 0 4,294,494 Reserved for postclosure care 0 0 0 0 45,000 Unreserved 0 0 0 0 23,261,526 Fund balances Reserved for encumbrances 1,110,349 215,408 0 663,412 0 Reserved for inventory 57,882 0 0 0 0 Unreserved Designated for debt service 0 0 1,052,539 0 0 Undesignated (deficit) 5,810,376 3,533,927 0 (957,450) 0 Total equity and other credits 6,978,607 3,749,335 1,052,539 (294,038) 38,687,016 Total liabilities, equity and other credits $ 8,628,974 $ 5,904,832 $ 3,397,679 $ 0 $ 78,604,023 The accompanying notes are an integral part of this statement. 4 Statement 1 Page 2 Proprietary Fiduciary Total Total Fund Types Fund Types Account Groups Primary Reporting General General Government Entity Internal Trust and Fixed Long- (Memoran- Component (Memoran- Service Agency Assets Term Debt dum Only) Units dum Only) $ 0 $ 0 $ 0 $ 0 $ 396,241 $ 72,258 $ 468,499 0 0 0 0 1,015,000 50,000 1,065,000 0 0 0 0 0 75,056 75,056 0 2,064,933 0 0 2,064,933 60,945 2,125,878 35,528 0 0 1,553,854 1,999,550 0 1,999,550 0 0 0 126,426 126,426 0 126,426 0 0 0 1,893,487 2,142,010 155,000 2,297,010 0 0 0 6,400,000 7,795,000 0 7,795,000 0 0 0 7,214,670 8,839,990 2,550,000 11,389,990 0 0 0 0 33,875,000 605,000 34,480,000 0 0 0 0 0 1,670,219 1,670,219 0 0 0 0 460,929 0 460,929 0 0 0 0 5,603,140 36,894 5,640,034 209,742 2,536,618 0 17,188,437 66,296,846 5,464,737 71,761,583 0 0 22,990,725 0 22,990,725 5,287,276 28,278,001 525,046 0 0 0 8,994,706 8,674,538 17,669,244 0 0 0 0 2,616,336 0 2,616,336 0 0 0 0 4,294,494 0 4,294,494 0 0 0 0 45,000 0 45,000 1,895,197 0 0 0 25,156,723 7,811,967 32,968,690 0 0 0 0 1,989,169 0 1,989,169 0 0 0 0 57,882 0 57,882 0 0 0 0 1,052,539 0 1,052,539 0 233,481 0 0 8,620,334 (1,311,870) 7,308,464 2,420,243 233,481 22,990,725 0 75,817,908 20.461.911 96.279.819 $ 2,629,985 $ 2,770,099 $ 22,990,725 $ 17,188,437 $ 142,114,754 $ 25,926,648 $ 168,041,402 i, 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, 1996 The accompanying notes are an integral part of this statement. 6 Governmental Fund Types Special Debt Capital General Revenue Service Projects Revenues Taxes $ 11,598,859 $ 4,497,215 $ 1,461,418 $ 0 Intergovernmental 1,240,274 2,102,614 0 0 Charges for services 1,607,531 1,553,240 0 0 Fines 969,759 474 0 0 Special assessments 0 59,920 1,131,852 0 Interest 818,087 4,969 85,360 98,016 Reimbursed expenses 70,645 352,624 0 63,669 Miscellaneous revenues 379,935 177,371 0 0 Total revenues 16,685,090 8,748,427 2,678,630 161,685 Expenditures Current General government 1,662,081 3,738,444 0 0 Public safety 7,104,335 388,632 0 0 Public works 1,621,302 1,009,723 0 0 Parks and recreation 1,872,887 0 0 0 Cultural 469,901 0 0 0 Community development 260,722 212,523 0 0 Health and welfare 389,742 84,862 0 0 Bicentennial Center 0 1,768,489 0 0 Other 29,561 0 0 0 Capital outlay 2,979,600 1,281,439 0 7,126,076 Debt service Principal 0 0 2,135,766 520,000 Interest and other charges 0 0 531,272 67,847 Total expenditures 16,390,131 8,484,112 2,667,038 7,713,923 Excess (deficiency) of revenues over (under) expenditures 294,959 264,315 11,592 (7,552,238) The accompanying notes are an integral part of this statement. 6 Statement 2 Fiduciary Total Component Total Fund Type Primary Unit Reporting Government ___Sa_fNna— Entity Expendable (Memoran- Housing (Memoran- Trust dum Only) Authority dum Only) 0 $ 17,557,492 $ 0 $ 17,557,492 0 3,342,888 2,619,024 5,961,912 0 3,160,771 147,111 3,307,882 0 970,233 0 970,233 0 1,191,772 0 1,191,772 1,433 1,007,865 10,417 1,018,282 0 486,938 0 486,938 3,219 560,525 39,060 599,585 4,652 28,278,484 2,815,612 31,094,096 0 5,400,525 0 5,400,525 0 7,492,967 0 7,492,967 0 2,631,025 0 2,631,025 314 1,873,201 0 1,873,201 0 469,901 0 469,901 0 473,245 986,223 1,459,468 0 474,604 0 474,604 0 1,768,489 0 1,768,489 0 29,561 95,702 125,263 0 11,387,115 0 11,387,115 0 2,655,766 0 2,655,766 0 599,119 47,715 646,834 314 35,255,518 1,129,640 36,385,158 4,338 (6,977,034) 1,685,972 (5,291,062) 7 cont. City of Salina, Kansas COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND 13ALANCES - ALL GOVERNMENTAL FUND TYPES, EXPENDABLE TRUST FUNDS AND DISCRETELY PRESENTED COMPONENT UNITS For the fiscal year ended December 31, 1996 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 1 Residual equity transfer in Residual equity transfer out Fund balances (deficit), December 31 Governmental Fund Types 207,883 Special Debt Capital General Revenue Service Projects $ 17,000 $ 399,089 $ 0 $ 0 (160,460) (255,629) 0 0 0 0 0 6,897,000 56,384 0 0 0 (87,076) 143,460 0 6,897,000 207,883 407,775 11,592 (655,238) 6,781,888 3,341,560 1,024,020 366,963 0 0 16,927 11,164 (11,164) 0 0 (16,927) $ 6,978,607 $ 3,749,335 $ 1,052,539 $ (294,038) The accompanying notes are an integral part of this statement. 8 Statement 2 Page 2 Fiduciary Total Component Total Fund Type Primary Unit Reporting Government Salina Entity Expendable (Memoran- Housing (Memoran- Trust dum Only) Authority dum Only) $ 0 $ 416,089 $ 0 $ 416,089 0 (416,089) 0 (416,089) 0 6,897,000 0 6,897,000 0 56,384 0 56,384 0 6,953,384 0 6,953,384 4,338 (23,650) 1,685,972 1,662,322 32,572 11,547,003 1,910,367 13,457,370 0 28,091 0 28,091 0 (28,091) 0 (28,091) $ 36,910 $ 11,523,353 $ 3,596,339 $ 15,119,692 W 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, 1996 Revenues Taxes Intergovernmental Fines, fees and permits Special assessments Charges for services Use of money and property Reimbursed expenses Miscellaneous revenues In kind medical 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) General Fund 16,537,593 16,293,243 variance 1,714, 873 Favorable Actual Budget (Unfavorable) 11,402,587 $ 11,470,119 $: (67,532) 1,240,274 1,218,279 21,995 2,397,216 2,366,000 31,216 0 0 0 457,257 453,198 4,059 914,105 680,000 234,105 75,325 57,147 18,178 50,829 48,500 2,329 0 0 0 16,537,593 16,293,243 244,350 1,714, 873 1,839,959 125,086 7,163,328 7,339,995 176,667 1,598,154 1,621,299 23,145 1,872,888 1,841,313 (31,575) 469,901 466,529 (3,372) 194,241 194,425 184 389,742 394,842 5,100 0 0 0 29,561 29,561 0 2,738,431 2,150,000 (588,431) 0 0 0 0 0 0 0 3,254,166 3,254,166 16,171,119 19,132,089 2,960,970 366,474 (2,838,846) 3,205,320 17,000 17,000 0 (160,460) (100,000) (60,460) 56,384 0 56,384 (87,076) (83,000) (4,076) The accompanying notes are an integral part of this statement. 10 Statement 3 cont. Special Revenue Funds Debt Service Funds Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) $ 4,510,283 $ 4,478,536 $ 31,747 $ 1,461,418 $ 1,398,998 $ 62,420 1,677,696 1,659,666 18,030 0 0 0 474 0 474 0 0 0 73,553 75,000 (1,447) 1,131,852 871,000 260,852 710,577 674,000 36,577 0 0 0 0 0 0 85,360 0 85,360 306,808 0 306,808 0 0 0 0 0 0 0 0 0 176,811 0 176,811 0 0 0 7,456,202 6,887,202 569,000 2,678,630 2,269,998 408,632 4,522,824 4,686,929 164,105 0 0 0 219,201 180,090 (39,111) 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 84,862 89,066 4,204 0 0 0 915,341 933,693 18,352 0 0 0 0 0 0 0 0 0 1,309,159 1,358,200 49,041 0 0 0 0 0 0 2,135,766 2,195,766 60,000 0 0 0 531,272 567,576 36,304 0 1,826,936 1,826,936 0 400,000 400,000 7,051,387 9,074,914 2,023,527 2,667,038 3,163,342 496,304 404,815 (2,187,712) 2,592,527 11,592 (893,344) 904,936 338,629 386,000 (47,371) 0 0 0 (255,629) (303,000) 47,371 0 0 0 0 0 0 0 0 0 83,000 83,000 0 0 0 0 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, 1996 Excess (deficiency) of revenues and other sources over (under) expenditures and other uses Unreserved fund balances, January 1 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 Variance Favorable Actual Budget (Unfavorable) $ 279,398 4,243,971 0 (11,164) 4,512,205 1,303,119 57,882 (4,948) 1,110,349 $ 6,978,607 $ (2,921,846) S 3,201,244 2,921, 846 1,322,125 0 0 0 (11,164) $ 0 9. 4,512,205 The accompanying notes are an integral part of this statement. 12 Special Revenue Funds ariance Favorable Actual Budget (Unfavorable) $ 487,815 2,492,222 0 0 2,980,037 529,150 0 (10,414) 215,408 35,154 $ 3,749,335 $ (2,104,712) $ 2,592,527 2,104,712 387,510 0 0 0 0 $ 0 $ 2,980,037 13 Statement 3 Page 2 Debt Service Funds Varian -cc Favorable Actual Budget (Unfavorable) $ 11,592 $ (893,344) $ 904,936 1,024,020 893,344 130,676 16,927 0 16,927 0 0 0 1,052,539 $ 0 $ 1,052,539 0 0 0 0 0 $ 1,052,539 City of Salina, Kansas COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS/FUND BALANCES ALL PROPRIETARY FUND TYPES, SIMILAR TRUST FUNDS AND DISCRETELY PRESENTED COMPONENT UNITS For the fiscal year ended December 31, 1996 Operating revenues Intergovernmental Charges for services Interest Reimbursements Miscellaneous Total operating revenues Operating expenses General government Public works Recreation Other Depreciation Total operating expenses Operating income (loss) Nonoperating revenues (expenses) Interest Bond issuance costs Debt service Mill levy Loss on disposition of fixed assets Total nonoperating revenues (expenses) Net income (loss) Add depreciation on assets acquired through Federal contributions Fiduciary Proprietary Fund Types Fund Type Non - Internal expendable Enterprise $ 142,695 $ 14,143,119 0 0 0 $ 0 2,058,288 5,641 0 7,744 245,998 0 A n n Increase in retained earnings /fund balances 1,420,070 521,258 0 817,092 0 8,900,247 0 0 646,314 0 0 0 792,332 1,535 2,397,355 150,612 0 11,943,916 1,760,036 1,535 2,387,084 547,845 11,850 1,245,809 0 0 (45,562) 0 0 (2,150,710) 0 0 0 0 0 (16,551) (26,587) 0 (967,014) (26,587) 0 1,420,070 521,258 11,850 A n n Increase in retained earnings /fund balances 1,420,070 521,258 11,850 Retained earnings /fund balances, January 1 28,797,286 1,373,939 184,721 Retained earnings /fund balances, December 31 $ 30,217,356 $ 1,895,197 i 196,571 The accompanying notes are an integral part of this statement 14 Statement 4 Total Component Total Primary Unit Reporting Government Salina Entity (Memorandum Airport (Memorandum Only) Authority Only) $ 142,695 $ 0 $ 142,695 16,207,048 1,199,915 17,406,963 7,744 0 7,744 245,998 0 245,998 48,781 65,723 114,504 16,652,266 1,265,638 17,917,904 817,092 0 817,092 8,900,247 0 8,900,247 646,314 0 646,314 793,867 895,848 1,689,715 2,547,967 749,778 3,297,745 13,705,487 1,645,626 15,351,113 2,946,779 (379,988) 2,566,791 1,245,809 230,092 1,475,901 (45,562) 0 (45,562) (2,150,710) (232,301) (2,383,011) 0 357,887 357,887 (43,138) 0 (43,138) (993,601) 355,678 (637,923) 1,953,178 (24,310) 1,928,868 0 487,863 487,863 1,953,178 463,553 2,416,731 30,355,946 7,348,414 37,704,360 $ 32,309,124 $ 7,811,967 $ 40,121,091 15 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, 1996 Cash flows from operating activities Cash received from customers and users Cash paid to suppliers and employees Operating grant receipts Other operating receipts Net cash provided by operating activities Cash flows from capital and related financing activities Purchase and construction of fixed assets Principal payments - temporary notes Principal payments - gen. obligation bonds Principal payments - revenue bonds Interest paid Proceeds from property tax Proceeds from the sale of fixed assets Principal received on financing leases Interest received on financing leases 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 $ 14,125,942 $ 2,343,979 ;$ (9,896,435) (1,661,305) 142,695 0 45.186 3.595 4,417,388 686,269 Fiduciary Fund Type Non - expendable Trust 5,641 (1,535) 0 7.973 12.079 (3,159,280) (87,006) 0 (765,000) 0 0 (248,234) 0 0 (955,000) 0 0 (2,294,849) 0 0 0 0 0 0 293 0 0 0 0 0 0 0 570,068 65,391 0 (6,852,295) (21,322) 0 1,251,508 0 0 (1,183,399) 664,947 12,079 25,992,709 1,415,3 83 184,492 $ 24,809,310 $ 2,080,330 $ 196,571 The accompanying notes are an integral part of this statement. 16 Statement 5 Total Component Total Primary Unit Reporting Government Salina Entity (Memorandum Airport (Memorandum Only) Authority Only) $ 16,475,562 $ 1,260,574 $ 17,736,136 (11,559,275) (1,131,299) (12,690,574) 142,695 0 142,695 56,754 0 56,754 5,115,736 129,275 5,245,011 (3,246,286) (2,486,606) (5,732,892) (765,000) 0 (765,000) (248,234) (145,000) (393,234) (955,000) (45,000) (1,000,000) (2,294,849) (229,757) (2,524,606) 0 357,887 357,887 293 0 293 0 107,706 107,706 0 199,863 199,863 635,459 2,006,786 2,642,245 (6,873,617) (234,121) (7,107,738) 1,251,508 36,515 1,288,023 (506,373) (68,331) (574,704) 27,592,584 998,393 28,590,977 $ 27,086,211 $ 930,062 $ 28,016,273 17 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, 1996 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 Payments to contractors (KSU projects) (Increase) decrease in accounts receivable (Increase) decrease in deposits receivable (Increase) decrease in inventory (Increase) decrease in prepaid expenses 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 accounts and retainage payable Increase (decrease) in deferred income Increase (decrease) in landfill closure and postclosure Net cash provided by operating activities Fiduciary Proprietary Fund Types Fund Type Non - Internal expendable Enterprise Service Trust $ 14,141,848 $ 2,080,330 :6 196,571 10,667,462 0 0 $ 24,809,310 $ 2,080,330 16 196,571 $ 2,387,084 $ 547,845 9> 11,850 2,397,355 150,612 0 0 0 0 (24,781) 0 229 0 39,693 0 (57,320) 13,373 0 0 0 0 (63,799) 7,092 0 75,040 0 0 30,087 5,102 0 (6,763) 0 0 0 (77,448) 0 (162,516) 0 0 14,367 0 0 (171,366) 0 0 $ 4,417,388 $ 686,269 $ 12,079 The accompanying notes are an integral part of this statement. 18 Statement 5 Paz 2 Total Component Total Primary Unit Reporting Government Salina Entity (Memorandum Airport (Memorandum Only) Authority Only) $ 16,418,749 $ 586,562 $ 17,005,311 10,667,462 343,500 11,010,962 $ 27,086,211 $ 930,062 $ 28,016,273 $ 2,946,779 $ (379,988) $ 2,566,791 2,547,967 749,778 3,297,745 0 (187,833) (187,833) (24,552) (50) (24,602) 39,693 0 39,693 (43,947) 0 (43,947) 0 12,051 12,051 (56,707) (58,745) (115,452) 75,040 0 75,040 35,189 (924) 34,265 (6,763) 0 (6,763) (77,448) 0 (77,448) (162,516) 0 (162,516) 14,367 (5,014) 9,353 (171,366) 0 (171,366) $ 5,115,736 $ 129,275 $ 5,245,011 19 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1996 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, 1996. Each discretely presented component unit is reported in a separate column in the combined financial 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 oi' 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, 1996. 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, 1996 $ 658,636 $ 226,712 Total revenues, year ended December 31, 1996 Total revenues from City of Salina 20 2,583,275 603,530 389,642 184,019 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1996 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 period. 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. 21 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1996 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 use the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. The government applies all applicable FASB pronouncements hi 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 imanner 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 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 pension trust fund accounts for the assets of the government's public safety employees pension plan. 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 (except for investments in the Kansas Municipal Pool and deferred compensation investments purchased through ICMA Retirement Corporation). 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 cost. Investments of the Employees' Deferred Compensation Fund are recorded at market 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 stated at cost. 22 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1996 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 distributed to the various subdivisions until the succeeding year, such procedure being in conformity with governing state statutes. Consequently, current year property taxes receivable are not available as a resource that can be used to finance the current year operations of the City. Accruals of uncollected current year property taxes are offset by deferred revenue and are identical to the adopted budget for 1997. 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. 5. 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 ". 23 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1996 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued C. Assets, Liabilities and Equity - continued 5. Restricted Assets - continued The "Extension and Bond Retirement" account is used to report resources set aside for operation, maintenance, repair, improvement and debt service purposes, as specified by certain bond ordinances. 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 24 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1996 I. 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 riot 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. 25 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1996 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 fmancial analysis. The columns do not present information that reflects financial position, results of operations or cash flows in accordance with generally accepted accounting principles. Interf ind 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. 26 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1996 IL STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY - continued A. Budgetary Information - continued a) Preparation of the budget for the succeeding calendar year on or before August 1 st 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 1996. The statutes permit transferring 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. A legal operating budget is not required for the following Enterprise funds: Solid Waste Construction, Water and Sewer Principal and Interest, Water and Sewer Bond Reserve and Water and Sewer Construction and reserve funds. Actual to budget comparisons for these funds that present budgets to the Commissioners are shown strictly for informational purposes. Spending in funds which are not subject to the legal annual operating budget requirements are controlled by federal regulations, other statutes, or by the use of internal spending limits established by the governing body. 27 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1996 Il. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY - continued B. Proprietary Fund Type Budgets Actual operations (budgetary basis) compared to budget for proprietary fund types for fiscal year 1996 are as follows: 28 Actual Budget Variance Enterprise Sanitation Revenues $ 1,153,230 $ 1,046,000 $ 107,230 Expenditures 1,165,546 1,596,211 430,665 Solid Waste Disposal Division Revenues 1,973,357 1,890,000 83,357 Expenditures 2,187,165 2,866,732 679,567 Other financing sources (uses) (45,000) 0 (45,000) Golf Course Division Revenues 683,638 620,600 63,038 Expenditures 720,407 720,600 193 Water and Sewer Revenues 10,732,400 10,358,000 374,400 Expenditures 9,530,424 13,674,398 4,143,974 Other financing sources (uses) (2,520,611) (2,481,475) (39,136) Internal Service Risk Management Revenues 535,260 513,338 21,922 Expenditures 342,070 791,480 449,410 Workmen's Compensation Reserve Revenues 602,963 563,270 39,693 Expenditures 68,279 1,011,381 943,102 Central Garage Division Revenues 807,255 823,802 (16,547) Expenditures 773,853 851,941 78,088 Data Processing Revenues 362,402 380,161 (17,759) Expenditures 373,143 487,449 114,306 C. Deficit Fund Equity The following funds had deficit fund equity at December 31, 1996: HUD Community Development $(50,277), Police Grants $(137,699) and Capital Projects Fund $(294,038). These deficits will be recovered from reimbursements from grantor agencies, or in the event certain costs are disallowed, from general funds. 28 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1996 II. 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 1996. Principal and interest account Bond reserve account Actual Required $ 652,766 $ 619,185 3,641,728 3,641,728 The City was in compliance with the reserve account balance requirements at December 31, 1996). 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, 1996, the statutory limit for the City was $60,614,557 providing a debt margin of $50,857,096. III. 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 $2,617,352 plus $6,038 cash on hand and the bank balance was $3,047,005. The difference between the carrying amount and the bank balance is outstanding checks and deposits in transit. Of the bank balance, $207,690 was covered by federal deposit insurance and the remaining $2,839,315 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 independent of the pledging bank. The pledged securities are held under a tri -party custodial agreement signed by all three parties: the City, the pledging bank, and the independent third -party bank holding the pledged securities. An unsecured and uncollateralized deposit of $55,839 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 $367,193 and the bank balance was $391,799. Of the bank balance, $391,799 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 $991,007 and the bank balance was $1,084,236. Of the bank balance, $1,084,236 was covered by federal depository insurance or by collateral held by the entity's agency in the Authority's name. 29 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1996 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 ri sk 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. At December 31, 1996, the City had invested $12,516 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 Fair 1 2 3 Amount Value U.S. Treasury Bills $ 24,205,289 $ 0 $ 0 $ 24,205,289 $ 24,195,535 Pooled investment - State of Kansas 12,516 12,516 Investment in deferred compensation plan 2,064,933 2,064,933 Bond escrow - investment in U.S. Treasury Bills 10,667,462 10,667,462 $ 36,950,200 $ 36,940,446 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. 30 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1996 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, 1996 are as follows: Subtotal component units 1,358,200 0 1,358,200 404,445 953,755 Total reporting entity $ 28,171,207 $ 12,760,583 $ 40,931,790 $ 11,071,907 $ 29,859,883 B. Receivables Receivables as of year end, including the applicable allowances for uncollectible accounts, are as follows: Cash and Separate Debt Investments Deposits Total Restricted Unrestricted Primary Government _ General $ 5,325,053 $ 0 $ 5,325,053 $ 0 $ 5,325,053 Special Revenue 3,536,259 0 3,536,259 0 3,536,259 Debt Service 1,052,539 0 1,052,539 0 1,052,539 Enterprise 14,141,848 10,667,462 24,809,310 10,667,462 14,141,848 Internal Service 2,080,330 0 2,080,330 0 2,080,330 Trust & Agency 676,978 2,093,121 2,770,099 0 2,770,099 Subtotal primary government 26,813,007 12,760,583 39,573,590 10,667,462 28,906,128 Component Units Salina Housing Authority 367,193 0 367,193 0 367,193 Salina Airport Authority 991,007 0 991,007 404,445 586,562 Subtotal component units 1,358,200 0 1,358,200 404,445 953,755 Total reporting entity $ 28,171,207 $ 12,760,583 $ 40,931,790 $ 11,071,907 $ 29,859,883 B. Receivables Receivables as of year end, including the applicable allowances for uncollectible accounts, are as follows: 31 Special Debt General Revenue Service Enterprise Total Primary Government Receivables: Accounts $ 590,975 $ 52,123 $ 0 $ 796,277 $ 1,439,375 Taxes 2,290,803 2,300,208 2,289,301 0 6,880,312 Grants 0 17,796 0 0 17,796 Interest 201,224 0 0 61,071 262,295 Notes 0 4,327 0 0 4,327 Gross receivables 3,083,002 2,374,454 2,289,301 857,348 8,604,105 Less: allowance for uncollectibles (301,715) (5,881) 0 (85,792) (393,388) Total $ 2,781,287 $ 2,368,573 $ 2,289,301 $ 771,556 8,210,717 Component Units Housing Authority of the City of Salina 123,487 Salina Airport Authority 39,031 Total 162,518 $ 8,373,235 31 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1996 III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued C. Interfund Receivables and Payables The composition of interfund balances as of December 31, 1996, is as follows: Due from/to other funds: Receivable Fund General Fund Payable Funds Amount Special Revenue Funds HUD Community Development > 50,600 Police Grants 137,699 Traffic Safety Grant 10,530 Capital Projects Fund 265,923 Total 11; 464,752 D. Fixed Assets The following is a summary of the changes in the general fixed assets account group during the current year. 9 -VA Balance Balance January 1, December 31, 1996 Additions Deletions_ 1996 Primary Government Land $ 2,589,193 $ 0 $ 0 $ 2,589,193 Land improvements 765,910 219,572 0 985,482 Buildings 10,759,729 29,509 1,000 10,788,238 Machinery and equipment 8,017,458 715,412 105,058 8,627,812 Sub total primary government 22,132,290 964,493 106,058 22,990,725 Component units Housing Authority of Salina 3,698,839 1,588,437 0 5,287,276 Total reporting entity $ 25,831,129 $ 2,552,930 $ 106,058 $ 28,278,001 9 -VA City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1996 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, 1996: Interest costs are capitalized when incurred by proprietary funds and similar component units on debt where proceeds were used to finance the construction of assets. Interest earned on proceeds of tax- exempt borrowing arrangements restricted to the acquisition of qualifying assets is offset against interest costs in determining the amount to be capitalized. 33 Component Primary Government Unit _ Internal Salina Enterprise Service Airport Funds Funds Authority Land $ 514,050 _ $ 0 $ 2,567,658 Land improvements 4,886,159 0 0 Water plant and equipment 29,710,884 0 0 Sewer plant and equipment 36,732,905 0 0 Airfield and infrastructure 0 0 14,042,676 Equipment 2,093,451 1,017,405 1,035,153 Vehicles 1,323,801 15,911 0 Buildings 575,612 22,072 6,541,389 Construction in progress 2,849,177 0 0 78,686,039 1,055,388 24,186,876 Less accumulated depreciation 26,597,002 559,180 7,146,109 Net fixed assets $ 52,089,037 $ 496,208 $ 17,040,767 Interest costs are capitalized when incurred by proprietary funds and similar component units on debt where proceeds were used to finance the construction of assets. Interest earned on proceeds of tax- exempt borrowing arrangements restricted to the acquisition of qualifying assets is offset against interest costs in determining the amount to be capitalized. 33 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1996 I1I. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued E. Capital Leases The City has entered into a lease agreement as lessee for financing the acquisition of an IBM: AS /400 computer system with the lease expiring in 1997. This lease agreement qualifies as a capital lease for accounting purposes (title transfers at the end of the lease term) and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of its inception. The following is an analysis of equipment leased under capital leases as of December 31, 1996: General Fixed Assets Machinery and equipment $ 389,355 Minimum future lease payments under capital leases as of December 31, 1996 are: General Long Term Debt 1997 future minimum lease payments $ 130,479 Less amount representing interest 4,053 Present value of future minimum lease payments $ 126,426 Payments made during 1996 $ 142,340 34 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1996 III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued F. General Long -Term Debt Following is a summary of changes in long -term debt for fiscal year 1996: Balance Balance January 1, December 31, 1996 Additions Reductions 1996 Primary Government General obligations bonds $ 11,519,000 $ 1,847,000 $ 2,384,000 $ 10,982,000 Revenue bonds 35,845,000 0 955,000 34,890,000 Temporary notes 4,030,000 5,050,000 1,285,000 7,795,000 Capital financing leases 256,220 0 129,794 126,426 Accrued Compensation 1,839,271 160,279 0 1,999,550 $ 53,489,491 $ 7,057,279 $ 4,753,794 $ 55,792,976 Component Units General obligations bonds $ 2,850,000 $ 0 $ 145,000 $ 2,705,000 Revenue bonds 700,000 0 45,000 655,000 Mortgage Payable 1,690,393 0 20,174 1,670,219 $ 5,240,393 $ 0 $ 210,174 $ 5,030,219 The following is a detailed listing of the city's long -term debt including general obligation bonds, revenue bonds, temporary notes and capital leases: Original Interest Bonds Issue Rates Outstanding Primary Government General Obligation Downtown Development 1987, due 12/1/97 5,000,000 6.10% to 6.65% $ 500,000 Internal Improvements 1988, due 12/1/98 1,115,000 6.15% to 8.15% 190,000 Internal Improvements 1989, due 12/1/99 1,175,000 5.80% to 7.875% 345,000 Broadway Overpass 1990, due 12/1/2000 455,000 5.75% to 7.75% 180,000 Internal Improvements 1991, due 10/1/2001 1,300,000 5.20% to 7.25% 650,000 Street and Utilities 1991, due 10/1/2001 1,417,000 5.40% to 7.40% 700,000 Crawford Street 1991, due 10/1/2001 1,785,000 4.50% to 6.50% 885,000 Crawford Street 1992, due 10/1/2002 1,240,000 3.75% to 5.90% 750,000 Internal Improvements 1993, due 10/1/2003 685,000 3.50% to 5.50% 490,000 Internal Improvemetns 1993, due 10/1/2003 1,800,000 3.40% to 5.00% 1,320,000 Internal Improvemetns 1994, due 10/1/2004 1,175,000 4.70% to 6.50% 935,000 Internal Improvements 1995, due 10/1/2005 2,434,000 4.75% to 6.50% 2,190,000 Internal Improvements 1996, due 8/01/2006 1,847,000 4.65% to 5.00% 1,847,000 Total general obligation bonds $ 10,982,000 1« City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1996 III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued F. General Long -Term Debt - continued Revenue Bonds Revenue Refunding 1990, due 10/1/2005 Water and Sewer 1990, due 10/1/2008 Water and Sewer 1992, due 10/1/2012 Water and Sewer 1993, due 10/1/2013 Revenue Refunding 1994, due 9/1/2012 Water and Sewer 1994, due 10/1/2014 Total revenue bonds Temporary Notes Landfill 1994, due 4/1/97 Landfill, due 9/1/98 Subdivision, due 11/1/97 Magnolia Rd, due 3/01/97 Total temporary notes Capital Leases IBM AS /400 system, due 12/1/97 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 Total general obligation bonds Revenue Bonds Leasehold revenue 1991, due 2006 Total bonds Original Interest Bonds Issue Rates Outstanding $ 5,655,000 6.00% to 7.00% $ 3,925,000 2,210,000 7.00% to 7.10% 2,210,000 15,000,000 5.40% to 7.40% 13,280,000 3,200,000 4.50% to 5.25% 2,910,000 11,390,000 4.30% to 5.25% 11,390,000 1,230,000 5.10 %to 7.10% 1,175,000 $ 34,890,000 285,000 4.00% to 4.70`.% $ 95,000 1,900,000 4.23855% 1,300,000 1,350,000 4.0825% 1,350,000 5,050,000 3.500% 5,050,000 $ 7,795,000 389,355 6.10% $ 126,426 1,900,000 6.40% to 8.375 $ 1,580,000 773,000 6.5% to 8.5% 640,000 375,000 3.4% to 5.0% 280,000 275,000 3.85% to 4.750./o 205,000 2,705,000 850,000 5.0% to 7.25% 655,000 $ 3,360,000 Housing Authority of the City of Salina Mortgage Payable to Dept of HUD, Maturity and interest are subsidized by the US Dept. of HUD - Mortgage Payable to Federal Financing Bank 925,473 36 6.6% $ 967,445 702,774 $ 1,670,219 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1996 III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued F. General Long -Term Debt - continued Interest paid in 1996 is as follows Primary government General obligation bonds $ 632,304 Revenue bonds 2,092,718 Temporary notes 138,409 Capital leases 12,546 Component Unit Total Salina Airport Authority 232,301 Housing Authority of Salina 47,715 Annual debt service requirements to maturity for general obligation bonds to be paid with tax levies - 37 General Obligation - Primary Government Bonds Interest Year Outstanding Due Total 1997 $ 2,142,000 $ 579,348 $ 2,721,348 1998 1,635,000 447,876 2,082,876 1999 1,540,000 363,476 1,903,476 2000 1,420,000 284,649 1,704,649 2001 1,375,000 211,484 1,586,484 To maturity 2,870,000 334,881 3,204,881 $ 10,982,000 $ 2,221,714 $ 13,203,714 General Obligation- Component Units Bonds Interest Year Outstanding Due Total 1997 $ 155,000 $ 171,995 $ 326,995 1998 165,000 163,475 328,475 1999 180,000 154,503 334,503 2000 190,000 144,638 334,638 To maturity 2,015,000 782,402 2,797,402 $ 2,705,000 $ 1,417,013 $ 4,122,013 37 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1996 III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued F. General Long -Term Debt - continued Annual debt service requirements to maturity for revenue bonds to be paid with utility revenues- $ 34,890,000 $ 19,702,361 $ 54,592,361 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 1997 $ 1,015,000 $ 2,026,508 $ 3,041,508 1998 1,085,000 1,955,723 3,040,723 1999 1,150,000 1,879,668 3,029,668 2000 1,220,000 1,803,858 3,023,858 2001 1,990,000 1,731,533 3,721,533 To maturity 28,430,000 10,305,071 38,735,071 $ 34,890,000 $ 19,702,361 $ 54,592,361 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 - Temporary Notes - Primary Government Notes Interest Year Outstanding Due Total 1997 $ 7,095,000 $ 336,013 $ 7,431,013 1998 700,000 21,700 721,700 $ 7,795,000 $ 357,713 $ 8,152,713 38 Revenue Bonds- Component Units Bonds Interest Year Outstanding Due Total 1997 $ 50,000 $ 44,777 $ 94,777 1998 50,000 41,703 91,703 1999 55,000 38,552 93,552 2000 60,000 35,005 95,005 To maturity 440,000 116,970 556,970 $ 655,000 $ 277,007 $ 932,007 Annual debt service requirements to maturity for temporary notes - to be paid through the issuance of general obligation bonds - Temporary Notes - Primary Government Notes Interest Year Outstanding Due Total 1997 $ 7,095,000 $ 336,013 $ 7,431,013 1998 700,000 21,700 721,700 $ 7,795,000 $ 357,713 $ 8,152,713 38 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1996 III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued F. General Long -Term Debt - continued Annual debt service requirements to maturity for capital leases to be paid with tax levies- Capital Financing Leases - Primary Government Leases Interest Year Outstanding Due Total 1997 $ 126,426 $ 4,053 $ 130,479 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, 1996, the following outstanding bonds are considered defeased: 1990- A Refunding Issue $ 2,305,000 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 fund. Special assessments paid prior to the issuance of bonds are recorded as revenue in the appropriate project. Special assessments received after the issuance of bonds are recorded as revenue in the debt service fund. The special assessments receivable are not recorded as revenue when levied against the respective properly 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 Civ� issues industrial revenue bonds to finance a portion of the construction of facilities by private enterprises. In return, the private enterprises have executed mortgage notes or leases with the City. The City is not responsible for payment of the original bonds, but rather the debt is secured only by the cash payments agreed to be paid by the private enterprises under the terms of the mortgage or lease agreements. Generally, the conduit debt is arranged so that payments required by the private enterprises are equal to the mortgage payment schedule related to the original debt. At December 31, 1996, total outstanding conduit debt was $36,905,323. WE Mortgage - Component Unit Mortgage Interest Year Outstanding Due Total 1997 $ 21,378 $ 46,510 $ 67,888 1998 22,916 44,972 67,888 1999 24,428 43,460 67,888 2000 26,041 41,847 67,888 2001 27,649 40,239 67,888 To maturity 1,547,807 302,184 1,849,991 $ 1,670,219 $ 519,212 $ 2,189,431 Annual debt service requirements to maturity for capital leases to be paid with tax levies- Capital Financing Leases - Primary Government Leases Interest Year Outstanding Due Total 1997 $ 126,426 $ 4,053 $ 130,479 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, 1996, the following outstanding bonds are considered defeased: 1990- A Refunding Issue $ 2,305,000 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 fund. Special assessments paid prior to the issuance of bonds are recorded as revenue in the appropriate project. Special assessments received after the issuance of bonds are recorded as revenue in the debt service fund. The special assessments receivable are not recorded as revenue when levied against the respective properly 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 Civ� issues industrial revenue bonds to finance a portion of the construction of facilities by private enterprises. In return, the private enterprises have executed mortgage notes or leases with the City. The City is not responsible for payment of the original bonds, but rather the debt is secured only by the cash payments agreed to be paid by the private enterprises under the terms of the mortgage or lease agreements. Generally, the conduit debt is arranged so that payments required by the private enterprises are equal to the mortgage payment schedule related to the original debt. At December 31, 1996, total outstanding conduit debt was $36,905,323. WE City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1996 III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued G. Reconciliation of Transfers Transfers are made between funds as the need arises. A reconciliation between funds follows: Transfers from Transfers to Special General Revenue Total General $ 0 $ 160,460 $ 160,460 Special Revenue Funds Business Improvement District 17,000 0 17,000 Tourism and Convention 0 238,629 238,629 $ 17,000 $ 399,089 $ 416,089 Residual equity transfers were made at year end to close projects in the following fund. Transfers from Transfers to Capital Projects Debt Funds Service Fund Total General Fund $ 11,164 $ 0 $ 11,164 Capital Projects Funds 0 16,927 16,927 $ 11,164 $ 16,927 $ 28,091 H. Contributed Capital The changes in the City's contributed capital accounts for its proprietary and internal service funds were as follows: Internal Service Funds Central Garage Information Services Enterprise Funds Sanitation Solid Waste Municipal Golf Course Water & Sewer Balance January 1, $ 16,611 $ 438,567 Contributing Source General Fixed Assets 0 $ 69,868 Balance 16,611 508,435 5,187 0 5,187 72,743 4,347 77,090 1,700 0 1,700 8,385,683 0 8,385,683 $ 8,920,491 $ 74,215 $ 8,994,706 40 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1996 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 (400 SE 8th Avenue, Suite 200, Topeka, Kansas 66603 -3925) or by calling 1- 800 - 228 -0366. Funding policy - KSA 74 -4919 establishes the KPERS member - employee contribution rate at 4% 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 1996 is 2.48 %. The City employer contributions to KPERS for the years ending December 31, 1996, 1995 and 1994 were $176,658, $150,456, and $128,000, respectively, equal to the required contributions for each year. The KP &F employer rate established for fiscal years beginning in 1996 is 13 %. 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, 1996, 1995 and 1994 were $716,750, $652,708, and $634,508, 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. All amounts of compensation deferred under the Plan, all property and rights purchased with those amounts and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the City (without being restricted to the provisions of benefits under the Plan), subject only to the claims of the City's general creditors. Participants' rights under the Plan are equal to those of general creditors of the City in an amount equal to the fair market value of the deferred account for each participant. The deferred compensation plan is accounted for as an agency fund. The plan's assets are presented at fair market value and captioned as "cash and investments" with the corresponding liabilities captioned "deferred compensation benefits." It is the opinion of the City's legal counsel that the City has no liability for losses under the plan agreement but does have the duty of due care that would be required of an ordinary prudent investor. The City believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. 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 carried over to subsequent years. Current year accumulated vacation pay is payable upon employment termination. Sick leave may be accumulated without limitation. At December 31, 1996 accrued compensated absences totaled $1,999,550. 41 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1996 IV. OTHER INFORMATION - continued 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. 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. 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: Unpaid claims, January 1 Incurred claims (including IBNRs) Claim payments Unpaid claims, December 31 F. Capital Projects 1996 1995 $ 206,434 $ 234,429 15,197 140,343 (92,645) (168,338) $ 128,986 $ 206,434 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, 1996: Project Name Magnolia/1-35 Interchange Subdivision III Centennial Road Centennial "S" Curve Subdivision 1995 Ninth and Broadway Subdivision 1996 42 Project Total Project Authorization Expenditures 5,939,000 $ 1,201,265 689,443 683,239 104,089 104,089 51,966 51,966 1,585,205 1,476,255 1,124,368 1,119,025 443,499 878,504 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1996 IV. OTHER INFORMATION - continued G. Subsequent Events On February 10, 1997, the city issued $4,370,000 in temporary notes at a rate of 4.01 %. The proceeds are to be used as temporary financing for a portion of the Magnolia/1 -135 Interchange project and certain subdivision proj ects. On April 7, 1997, the city issued $1,650,000 in general obligation bonds at a rate of 4.86 %. The proceeds are to be used for financing the construction of certain subdivision projects and concrete paths at the municipal golf course. 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. Any disallowed claims resulting from such audits could become a liability of the General Fund or other applicable funds. However, in the opinion of management, any such disallowed claims would not have a material effect on any of the financial statements of the City at December 31, 1996. 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 $460,929 reported as landfill closure and postclosure care liability at December 31 represents the cumulative amount reported to date based on the use of 2% of the estimated capacity of the landfill, plus a remaining $241,054 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 $2,697,920 as the remaining estimated capacity is filled over the remaining life expectancy of 53 years. These amounts are based on what it would cost to perform all closure and postclosure care in 1996. 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 LS 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. 43 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1996 IV. OTHER INFORMATION -continued 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, 1996 is presented below. K. Environmental Matter The Kansas Department of Health and Environment (KDHE) issued a report in 1994 indicating the presence of volatile organic compounds at levels requiring remediation at the Salina Public Water Supply Wells Site (the Site). The City adopted a 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. 44 Solid Golf Water Waste Course and Sanitation Disposal Division Sewer Total Operating revenues $ 1,128,113 $ 2,017,280 $ 678,961 $ 10,506,646 $ 14,331,000 Depreciation expense 43,515 347,131 53,842 1,952,867 2,397,355 Net operating income (loss) (31,472) 1,033,054 (21,195) 1,406,697 2,387,084 Net income (loss) (2,188) 904,722 (29,287) 546,823 1,420,070 Property, plant and equipment additions 53,548 227,525 54,625 2,823,582 3,159,280 Net working capital 591,469 126,812 66,286 21,957,615 22,742,182 Total assets 937,891 6,716,673 404,185 70,545,274 78,604,023 Bonds and temporary notes payable 0 3,222,287 46,556 34,890,000 38,158,843 Total equity 848,159 2,869,260 327,401 34,642,196 38,687,016 K. Environmental Matter The Kansas Department of Health and Environment (KDHE) issued a report in 1994 indicating the presence of volatile organic compounds at levels requiring remediation at the Salina Public Water Supply Wells Site (the Site). The City adopted a 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. 44 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. 45 City of Salina, Kansas Schedule 1 GENERAL FUND COMPARATIVE BALANCE SHEETS December 31, 1996 and 1995 ASSETS 1996 1995 Cash and investments $ 5,325,053 1; 5,688,761 Receivables 1,541,888 Accounts 289,260 284,475 Taxes 2,290,803 1,874,005 Grants 0 4,680 Interest 201,224 297,243 Inventory 57,882 72,294 Interfund receivable 464,752 102,318 Total assets $ 8,628,974 $ 8,323,776 LIABILITIES AND FUND BALANCES Liabilities Accounts payable Retainage payable Deferred revenue Total liabilities Fund balances Reserved for encumbrances Reserved for inventory Unreserved Undesignated Total fund balances Total liabilities and fund balances 46 $ 167,251 $ 151,880 4,948 25,220 1,478,168 1,364,788 1,650,367 1,541,888 1,110,349 1,395,228 57,882 72,294 5,810,376 5,314,366 6,978,607 6,781,888 $ 8,628,974 $ 8,323,776 City of Salina, Kansas GENERALFUND COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For the fiscal years ended December 31, 1996 and 1995 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 Capital outlay Total expenditures Excess of revenues over expenditures Other financing sources (uses) Operating transfers in Operating transfers out Sale of assets Total other financing sources (uses) Excess of revenues and other sources over expenditures and other uses Fund balances, January 1 Residual equity transfer out Fund balances, December 31 47 1996 $ 11,598,859 1,240,274 1,607,531 969,759 818,087 70,645 ' "n n, I I i Inc nnn 1,662,081 7,104,335 1,621,302 1,872,887 469,901 260,722 389,742 29,561 2,979,600 1 L 7 n n — Schedule 2 1 nn_- $ 10,554,019 1,242,823 1,742,782 1,092,880 808,940 46,786 Cn^ '1/c 15,995,595 1,627,248 6,717,771 1,467,141 1,741,066 470,270 223,890 382,947 113,315 1 GL9 nn 1 C 1n'9 f- 294,959 688,043 17,000 17,000 (160,460) (169,693) r4 *'ISin '1A n')C (87,076) (128,658) 207,883 6,781,888 (11,164) $ 6,978,607 559,385 6,222,503 0 $ 6,781,888 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, 1996 and 1995 Revenues Taxes Property Delinquent Motor vehicle Sales Franchise Total taxes Intergovernmental Bingo City - County revenue share LAVTR Liquor tax Federal 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 1996 Variance Favorable Actual Budget (Unfavorable) Schedule 3 1995 Variance Favorable Actual Budget (Unfavorable) $ 1,234,203 $ 1,211,689 $ 22,514 $ 292,275 $ 13,995 6,000 7,995 15,809 67,159 54,930 12,229 197,194 8,250,536 8,450,000 (199,464) 8,326,155 1,836,694 1,747,500 89,194 1,739,323 11,402,587 11,470,119 (67,532) 10,570,756 272,567 $ 19,708 16,900 (1,091) 170,033 27,141 7,852,000 474,155 1,655,000 84,323 9,966,520 604,236 24,149 15,000 9,149 13,796 15,000 (1,204) 324,686 327,771 (3,085) 313,596 313,758 (162) 355,675 355,675 0 344,328 344,328 0 84,862 87,333 (2,471) 84,825 86,268 (1,443) 35,114 17,500 17,614 34,884 0 34,884 415,788 415,000 788 451,394 434,000 17,394 1,240,274 1,218,279 21,995 1,242,823 1,193,354 49,469 229,691 245,000 (15,309) 223,104 224,200 (1,096) 116,633 120,000 (3,367) 121,860 141,000 (19,140) 376,227 380,000 (3,773) 421,385 350,000 71,385 148,453 145,000 3,453 102,413 145,000 (42,587) 227,347 216,000 11,347 432,861 206,000 226,861 1,098,351 1,106,000 (7,649) 1,301,623 1,066,200 235,423 969,759 990,000 (20,241) 1,026,956 824,000 202,956 329,106 270,000 59,106 277,660 230,000 47,660 457,257 453,198 4,059 441,016 436,904 4,112 914,105 680,000 234,105 742,410 450,000 292,410 75,325 57, 147 18, 178 36,398 40,000 (3,602) 50,829 48,500 2,329 235,414 40,000 195,414 16,537,593 16,293,243 244,350 15,875,056 14,246,976 1,628,078 48 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, 1996 and 1995 Expenditures General government City commission City manager Legal Finance Personnel Buildings Human relations Permits and inspection Gypsum Hill Cemetery Contingency Housing rehabilitation Public safety Police Municipal court Parking control Fire Public works Engineering Streets Flood works Traffic control Planning Recreation Parks and recreation Swimming pools Neighborhood centers Recreation Cultural Arts and humanities Smoky Hill Museum Health and welfare Health Community development Agency contracts Capital outlay Other Administrative expenses Cash reserve Total expenditures Excess (deficiency) of revenues over (under) expenditures Actual $ 70,947 $ 249,032 90,088 339,036 139,258 268,778 107,709 256,408 89,969 56,765 46,883 3,061,886 680,937 0 3,420,505 225,883 936,235 113,606 154,699 167,731 732,193 85,267 60,359 995,069 225,352 244,549 389,742 194,241 2,738,431 29,561 0 16,171,119 1996 Variance Favorable Budget (Unfavorable) 94,890 $ 236,072 93,500 326,434 106,225 301,140 118,230 225,606 92,862 170,000 75,000 3,174,849 728,671 0 3,436,475 223,712 955,779 113,200 166,850 161,758 738,572 69,200 77,224 956,317 225,012 241,517 394,842 194,425 184 2,150,000 (588,431) 0 3,254,166 2,960,970 23,943 $ (12,960) 3,412 (12,602) (33,033) 32,362 10,521 (30,802) 2,893 113,235 28,117 112,963 47,734 0 15,970 (2,171) 19,544 (406) 12,151 (5,973) 6,379 (16,067) 16,865 (38,752) (340) (3,032) 5,100 29,561 3,254,166 19,132,089 Schedule 3 Palle 2 1995 Variance Favorable Actual Budget (Unfavorable) 67,541 $ 222,628 94,065 282,141 96,520 266,854 109,039 214,432 85,842 164,114 0 2,876,539 648,598 29,072 3,167,775 194,069 889,431 100,262 144,139 154,440 678,253 71,078 69,014 922,720 214,685 255,585 382,947 258,106 3,042,845 113,315 0 15,816,049 98,800 $ 221,228 90,900 320,868 95,500 277,876 112,008 207,144 88,961 215,000 0 2,897,809 633,309 38,696 3,267,832 196,288 924,923 102,965 143,757 155,588 721,146 68,200 74,570 909,155 200,067 205,400 382,947 193,425 2,010,000 100,000 2,784,442 17,738,824 31,259 (1,400) (3,165) 38,747 (1,020) 11,022 2,969 (7,288) 3,119 50,886 0 21,270 (15,289) 9,624 100,057 2,219 35,492 2,703 (382) 1,148 42,893 (2,878) 5,556 (13,565) (14,618) (50,185) 0 (64,681) (1,032,845) (13,315) 2,784,442 1,922,775 366,474 (2,838,846) 3,205,320 59,007 (3,491,845) 3,550,853 49 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, 1996 and 1995 Other financing sources (uses) Operating transfer in Operating transfer out Sale of assets Total other financing sources (uses) Excess (deficiency) of revenues and other sources over (under) expenditures and other uses Fund balances, January 1 Residual equity transfer out Fund balances, December 31 1996 Variance Favorable Actual Budget (Unfavorable) $ 17,000 $ 17,000 $ 0 $ (160,460) (100,000) (60,460) 56,384 0 56,384 (87,076) (83,000) (4,076) 279,398 (2,921,846) 3,201,244 4,243,971 2,921,846 1,322,125 (11,164) 0 (11,164) Schedule 3 Page 3 (69,651) (3,694,346) 3,624,695 4,313,622 3,694,346 619,276 0 0 0 $ 4,512,205 $ 0 $ 4,512,205 $ 4,243,971 $ 0 $ 4,243,971 50 1995 Variance Favorable Actual Budget (Unfavorable) 17,000 $ 17,000 $ 0 (169,693) (228,000) 58,307 24,035 8,500 15,535 (128,658) (202,500) 73,842 (69,651) (3,694,346) 3,624,695 4,313,622 3,694,346 619,276 0 0 0 $ 4,512,205 $ 0 $ 4,512,205 $ 4,243,971 $ 0 $ 4,243,971 50 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. 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. 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 i'or 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. 51 City of Salina, Kansas SPECIAL REVENUE FUNDS - CONTINUED Fair housing fund - To account for grants received from the federal government to be used to monitor and mediate fair housing complaints. 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. Traffic safety grant fund - To account for revenues received from grants to be used for traffic enforcement. 52 This page left blank intentionally. ASSETS Cash and investments Receivables Accounts Taxes Grants Notes Total assets City of Salina, Kansas SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 31, 1996 (With comparative totals for December 31, 1995) 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 13,826 $ 65,595 $ 0 $ Business Employee 0 Special Improvement Benefits Utility Liability District $ 1,609,427 $ 475,262 $ 96,026 $ 3,187 0 0 0 4,958 1,241,028 568,973 10,000 0 0 0 0 0 0 0 0 0 $ 2,850,455 $ 1,044,235 $ 106,026 ;$ 8,145 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 13,826 $ 65,595 $ 0 $ 0 0 0 0 0 0 0 0 0 1,241,028 568,973 10,000 1,303 1,254,854 634,568 10,000 1,303 0 0 0 0 1,595,601 409,667 96,026 6,842 1,595,601 409,667 96,026 6,842 fund balances $ 2,850,455 $ 1,044,235 $ 106,026 8,145 53 Schedule 4 Tourism Special 0 0 0 0 45,288 136,048 0 0 344,159 0 $ 0 $ 2,750 $ 22,800 $ 5,459 $ 14,520 0 0 0 10,414 0 0 0 0 0 0 0 0 0 0 0 0 0 136,048 99,030 0 215,408 0 0 708,636 446,923 0 924,044 446,923 $ 136,048 $ 101,780 $ 22,800 $ 939,917 $ 461,443 54 cont. City of Salina, Kansas SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 31, 1996 (With comparative totals for the fiscal year ended December 31, 1995) Bicentennial HUD Community 0 0 Center Community Development Heritage ASSETS Event Development Revolving Commission Cash and investments $ 49,029 $ 0 $ 86,867 1; 1,493 Receivables Total liabilities and Accounts 0 0 0 0 Taxes 0 0 0 0 Grants 0 0 0 0 Notes 0 323 0 0 Total assets $ 49,029 $ 323 $ 86,867 $ 1,493 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ 0 $ 0 $ 0 $ 0 Retainage payable 0 0 0 0 Due to funds 0 50,600 0 0 Deferred revenue 0 0 0 0 Total liabilities 0 50,600 0 0 Fund balances Reserved for encumbrances 0 0 0 0 Unreserved Undesignated (deficit) 49,029 (50,277) 86,867 1,493 Total fund balances (deficit) 49,029 (50,277) 86,867 1,493 Total liabilities and fund balances $ 49,029 $ 323 $ 86,867 $ 1,493 55 Schedule 4 Page 2 $ 0 $ Special 0 $ Traffic Total 75,316 Fair Law Police Safety 10,414 0 Housing Enforcement Grants Grant 1996 1995 $ 41,808 $ 36,667 $ 0 $ 0 $ 3,536,259 $ 2,923,074 0 0 0 0 50,246 69,279 0 0 0 0 2,300,208 3,578,387 0 0 0 17,796 17,796 48,536 0 0 0 0 323 1,016 $ 41,808 $ 36,667 $ 0 $ 17,796 $ 5,904,832 $ 6,620,292 $ 0 $ 0 $ 0 $ 0 $ 124,950 $ 75,316 0 0 0 0 10,414 0 0 0 137,699 10,530 198,829 102,318 0 0 0 0 1,821,304 3,101,098 0 0 137,699 10,530 2,155,497 3,278,732 0 0 0 0 215,408 159,633 41,808 36,667 (137,699) 7,266 3,533,927 3,181,927 41,808 36,667 (137,699) 7,266 3,749,335 3,341,560 $ 41,808 $ 36,667 $ 0 $ 17,796 $ 5,904,832 $ 6,620,292 56 City of Salina, Kansas SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For the fiscal year ended December 31, 1996 (With comparative totals for the fiscal year ended December 31, 1995) 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 Other 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 Fund balances (deficit), December 31 Employee Benefits Utility $ 2,638,285 $ 860,870 $ 185,000 0 0 0 0 0 0 0 0 0 306,808 0 3,302,551 2,906,319 0 0 0 0 0 0 0 396,232 0 0 860,870 0 0 799,993 0 0 0 0 Special Liability 414,554 0 0 0 0 0 0 0 396,998 0 0 0 0 0 0 799,993 396,998 60,877 17,556 0 0 0 0 0 0 396,232 60,877 17,556 1,199,369 348,790 78,470 $ 1,595,601 $ 409,667 $ 96,026 57 Schedule 5 Business Tourism Special Improvement and Parks and Special Special Bicentennial District Convention Recreation Alcohol Gas Center $ 0 $ 583,506 $ 0 $ 0 $ 0 $ 0 0 0 84,862 84,862 1,336,942 0 0 0 0 0 0 705,987 474 0 0 0 0 0 59,920 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4,353 0 60,394 583,506 84,862 84,862 1,341,295 705,987 61,667 357,944 0 0 0 0 0 0 0 0 0 0 0 0 0 0 209,730 0 0 0 0 0 0 0 0 0 0 84,862 0 0 0 0 0 0 0 915,341 0 0 0 0 0 0 0 0 70,657 0 1,131,349 71,263 61,667 357,944 70,657 84,862 1,341,079 986,604 (1,273) 225,562 14,205 0 216 (280,617) 0 0 0 0 0 338,629 (17,000) (238,629) 0 0 0 0 (17,000) (238,629) 0 0 0 338,629 (18,273) (13,067) 14,205 0 216 58,012 25,115 149,115 84,825 0 923,828 388,911 $ 6,842 $ 136,048 $ 99,030 $ 0 $ 924,044 $ 446,923 58 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, 1996 (With comparative totals for the fiscal year ended December 31, 1995) 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 Other 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 Fund balances (deficit), December 31 Bicentennial HUD Community (76) Center Community Development Heritage Event Development Revolving Commission $ 0 $ 0 $ 0 $ 0 0 164,565 0 0 847,253 0 0 0 0 0 0 0 0 0 0 0 0 66 3,358 0 0 60 4,068 0 0 0 0 0 847,253 164,691 7,426 0 0 0 0 76 0 0 0 0 0 0 0 0 0 212,472 51 0 0 0 0 0 853,148 0 0 0 0 0 0 0 853,148 212,472 (5,895) (47,781) 0 0 0 0 0 0 51 76 7,375 (76) 0 0 0 0 (5,895) (47,781) 7,375 (76) 54,924 (2,496) 79,492 1,569 $ 49,029 $ (50,277) $ 86,867 9> 1,493 59 Special Traffic Fair Law Police Safety Housing Enforcement Grants Grant $ 0 $ 0 $ 0 $ Schedule 5 Page 2 Total 1996 1995 0 0 113,446 ., W 132,937 ., ,.,.,.- W 2,102,614 .,..,.,.," 1,927,421 0 0 0 0 1,553,240 1,843,095 0 0 0 0 474 467 0 0 0 0 59,920 93,997 0 1,545 0 0 4,969 5,811 27 24G 0 4 323 0 352 624 15 802 0 0 0 177,371 209,900 37,925 15,440 0 0 0 0 0 255,468 133,164 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 n n n n 3,738,444 3,468,109 388,632 388,989 1,009,723 855,861 212,523 62,568 84,862 84,825 1,768,489 2,067,114 n n 19,901 3,709 255,468 133,164 8,484,112 8,119,698 18,024 (2,164) (137,699) (227) 264,315 434,322 0 0 60,460 0 399,089 421,158 0 0 0 0 (255,629) (268,465) 0 0 60,460 0 143,460 152,693 18,024 (2,164) (77,239) (227) 407,775 587,015 23,784 38,831 (60,460) 7,493 3,341,560 2,754,545 $ 41,808 $ 36,667 $ (137,699) $ 7,266 $ 3,749,335 $ 3,341,560 .1 Revenues Taxes Property Delinquent Motor vehicle Total taxes Intergovernmental Reimbursed expenses Miscellaneous revenues Total revenues Expenditures General government Earned leave Unemployment Social security Life insurance Kansas Police and Fire Retirement Kansas Public Employees Retirement Health insurance Wellness 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, 1996 and 1995 1996 Variance Favorable Actual Budget (Unfavorable) $ 2,119,336 $ 2,080,700 $ 42,852 45,000 476,097 411,457 2,638,285 2,537,157 185,000 185,000 306,808 0 172,458 0 3,302,551 2,722,157 21,932 60,000 25,940 30,530 415,361 437,940 45,691 49,490 693,602 700,000 105,430 106,200 1,121,667 1,068,500 61,477 46,300 219 5,400 415,000 415,000 0 800,000 2,906,319 3,719,360 Schedule 6 1995 Variance Favorable Actual Budget (Unfavorable) 38,636 $ 2,106,728 $ 2,041,673 $ 65,055 (2,148) 38,643 40,600 (1,957) 64,640 478,394 408,000 70,394 101,128 2,623,765 2,490,273 133,492 0 185,000 185,000 0 306,808 7,512 0 7,512 172,458 197,217 0 197,217 580,394 3,013,494 2,675,273 338,221 38,068 38,583 4,590 24,531 22,579 394,377 3,799 45,948 6,398 624,465 770 93,792 (53,167) 969,977 (15,177) 47,425 5,181 5,250 0 380,000 800,000 0 813,041 2,624,348 396,232 (997,203) 1,393,435 1,199,369 997,203 202,166 40,000 1,417 26,713 2,179 396,690 2,313 49,490 3,542 630,000 5,535 106,200 12,408 1,070,800 100,823 41,600 (5,825) 0 (5,250) 380,001) 0 486,001) 486,000 3,227,490 603,142 389,146 (552,217) 941,363 810,223 552,217 258,006 $ 1,595,601 $ 0 $ 1,595,601 $ 1,199,369 $ 0 $ 1,199,369 321 City of Salina, Kansas 62 Schedule 6 Page 2 UTILITY SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET For the fiscal years ended December 31, 1996 and 1995 1996 1995 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues Taxes Property $ 706,512 $ 693,599 $ 12,913 $ 617,418 $ 598,430 $ 18,988 Delinquent 13,582 13,000 582 12,945 15,800 (2,855) Motor vehicle 140,776 120,601 20,175 185,898 159,459 26,439 Total revenues 860,870 827,200 33,670 816,261 773,6139 42,572 Expenditures General government Gas service 75,269 88,000 12,731 62,429 86,000 23,571 Street lighting 278,107 295,000 16,893 277,994 290,000 12,006 Water service 106,367 121,000 14,633 58,412 96,000 37,588 Light and power 298,423 331,000 32,577 264,093 308,000 43,907 Traffic control 41,827 45,000 3,173 40,654 42,000 1,346 Cash reserves 0 135,000 135,000 0 125,000 125,000 Total expenditures 799,993 1,015,000 215,007 703,582 947,000 243,418 Excess (deficiency) of revenues over (under) expenditures 60,877 (187,800) 248,677 112,679 (173,311) 285,990 Fund balances, January 1 348,790 187,800 160,990 236,111 173,311 62,800 Fund balances, December 31 $ 409,667 $ 0 $ 409,667 $ 348,790 $ 0 $ 348,790 62 City of Salina, Kansas Schedule 6 Page 3 SPECIAL LIABILITY SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET For the fiscal years ended December 31, 1996 and 1995 63 1996 1995 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues Taxes Property $ 330,729 $ 324,784 $ 5,945 $ 343,451 $ 332,927 $ 10,524 Delinquent 6,305 7,300 (995) 5,028 6,300 (1,272) Motor vehicle 77,521 67,095 10,426 74,852 63,455 11,397 Total revenues 414,555 399,179 15,376 423,331 402,682 20,649 Expenditures General government Administrative expenses 396,999 397,000 1 397,000 397,000 0 Cash reserve 0 60,000 60,000 0 40,000 40,000 Total expenditures 396,999 457,000 60,001 397,000 437,000 40,000 Excess (deficiency) of revenues over (under) expenditures 17,556 (57,821) 75,377 26,331 (34,318) 60,649 Fund balances, January 1 78,470 57,821 20,649 52,139 34,318 17,821 Fund balances, December 31 $ 96,026 $ 0 $ 96,026 $ 78,470 $ 0 $ 78,470 63 Revenues Fines Special assessments Total revenues Expenditures General government Contractual 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, December 31 City of Salina, Kansas (17,000) 0 Schedule 6 (17,000) PaEe 4 BUSINESS IMPROVEMENT DISTRICT SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET (3,569) For the fiscal years ended December 31, 1996 and 1995 4,160 1996 1995 4,160 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) $ 474 $ 0 $ 474 $ 467 $ 0 $ 467 73,553 75,000 (1,447) 78,650 75,000 3,650 74,027 75,000 (973) 79,117 75,000 4,117 61,569 61,569 0 12,458 13,431 (973) 57,957 58,000 43 21,160 17,000 4,160 (17,000) (17,000) 0 (17,000) (17,000) 0 (4,542) (3,569) (973) 4,160 0 4,160 7,729 3,569 4,160 3,569 0 3,569 $ 3,187 $ 0 $ 3,187 $ 7,729 $ 0 $ 7,729 64 City of Salina, Kansas TOURISM AND CONVENTION SPECIAL REVENUE FU1'4D SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET For the fiscal years ended December 31, 1996 and 1995 1996 1995 Schedule 6 Page 5 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues Taxes Transient guest $ 596,573 $ 715,000 $ (118,427) $ 594,061 $ 650,000 $ (55,939) Expenditures General government Contractual 357,944 429,000 71,056 372,534 390,000 17,466 Excess of revenues over expenditures 238,629 286,000 (47,371) 221,527 260,000 (38,473) Other financing sources (uses) Operating transfers out (238,629) (286,000) 47,371 (248,356) (260,000) 11,644 Excess (deficiency) of revenues over (under) expenditures and other uses 0 0 0 (26,829) Ci (26,829) Fund balances, January 1 0 0 0 26,829 Cl 26,829 Fund balances, December 31 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 City of Salina, Kansas 66 Schedule 6 Page 6 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, 1996 and 1995 1996 1995 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues Intergovernmental $ 84,862 $ 87,333 $ (2,471) $ 84,825 $ 86,268 $ (1,443) Expenditures Capital outlay 70,657 88,000 17,343 0 0 0 Cash reserve 0 87,333 87,333 0 86,268 86,268 Total expenditures 70,657 175,333 104,676 0 86,268 86,268 Excess (deficiency) of revenues over (under) expenditures 14,205 (88,000) (107,147) 84,825 0 84,825 Fund balances, January 1 84,825 88,000 (3,175) 0 0 0 Fund balances, December 31 $ 99,030 $ 0 $ 99,030 $ 84,825 $ 0 $ 84,825 66 City of Salina, Kansas SPECIAL ALCOHOL SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHA14GES IN FUND BALANCES - ACTUAL AND BUDGET For the fiscal years ended December 31, 1996 and 1995 1996 1995 Schedule 6 Page 7 67 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues Intergovernmental $ 84,862 $ 87,333 $ (2,471) $ 84,825 $ 86,267 $ (1,442) Expenditures Health and welfare Contractual 84,862 89,066 4,204 84,825 86,267 1,442 Excess (deficiency) of revenues over (under) expenditures 0 (1,733) 1,733 0 0 0 Fund balances, January 1 0 1,733 (1,733) 0 0 0 Fund balances, December 31 $ 0 $ 0 $ 0 $ 0 $ ID $ 0 67 Revenues Intergovernmental Miscellaneous revenues Total revenues Expenditures Public works Supplies Other services 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 Schedule 6 Page 8 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, 1996 and 1995 68 1996 1995 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) $ 1,322,972 $ 1,300,000 $ 22,972 $ 1,266,537 $ 1,300,000 $ (33,463) 4,353 0 4,353 0 0 0 1,327,325 1,300,000 27,325 1,266,537 1,300,000 (33,463) 174,713 144,090 (30,623) 146,994 134,130 (12,864) 44,488 36,000 (8,488) 4,834 0 (4,834) 1,167,239 1,153,000 (14,239) 1,087,946 1,105,400 17,454 0 434,623 434,623 0 377,082 377,082 1,386,440 1,767,713 381,273 1,239,774 1,616,61.2 376,838 (59,115) (467,713) 408,598 26,763 (316,612) 343,375 434,006 467,713 (33,707) 407,243 316,612 90,631 $ 374,891 $ 0 $ 374,891 $ 434,006 $ 0 $ 434,006 68 Revenues Charges for services 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 I 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, 1996 and 1995 1996 1995 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) $ 710,577 $ 674,000 $ 36,577 $ 695,105 $ 663,000 $ 32,105 522,895 543,193 50,989 50,200 50 2,000 341,407 338,300 71,263 117,200 0 309,980 986,604 1,360,873 20,298 490,164 530,447 40,283 (789) 50,635 52,200 1,565 1,950 687 2,000 1,313 (3,107) 336,662 328,100 (8,562) 45,937 122,300 105,400 (16,900) 309,980 0 327,721 327,721 374,269 1,000,448 1,345,868 345,420 (276,027) (686,873) 410,846 (305,343) (682,868) 377,525 338,629 386,000 (47,371) 358,356 370,000 (11,644) 62,602 (300,873) 363,475 53,013 (312,868) 365,881 339,033 300,873 38,160 286,020 312,868 (26,848) $ 401,635 $ 0 $ 401,635 $ 339,033 $ 0 $ 339,033 roll 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. 70 City of Salina, Kansas BOND AND INTEREST DEBT SERVICE FUND COMPARATIVE BALANCE SHEETS December 31, 1996 and 1995 ASSETS Cash and investments Cash with fiscal agent Receivables Taxes Total assets 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 71 Schedule 7 1996 1995 $ 1,052,539 $ 1,024,020 55,839 5,129 1 )On 7n1 t - - $ 3,397,679 $ 2,031,230 $ 2,289,301 S 1,002,081 55,839 5,129 2,345,140 1,007,210 1,052,539 1,024,020 $ 3,397,679 $ 2,031,230 City of Salina, Kansas DEBT SERVICE FUND COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For the fiscal years ended December 31, 1996 and 1995 Revenues Taxes Special assessments Interest Total revenues Expenditures Debt service Principal Interest and other charges Total expenditures Excess of revenues over expenditures Fund balances, January 1 Residual equity transfer in Fund balances, December 31 72 $ 1,461,418 $ 1,131,852 Schedule 8 2,127,230 883,807 2,678,630 3,019,353 2,135,766 2,235,447 2,667,038 2,800,787 11,592 218,566 1,024,020 797,083 $ 1,052,539 1'5 1,024,020 Revenues Taxes Property Delinquent Motor vehicle Total taxes Special assessments Interest Accrued interest Total revenues Expenditures Debt service Principal Interest Commission and postage Cash reserve Total expenditures Excess (deficiency) of revenues over (under) expenditures Fund balances, January 1 Residual equity transfer in Fund balances, December 31 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, 1996 and 1995 73 1996 1995 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) $ 1,020,694 $ 1,002,081 $ 18,613 $ 1,832,581 $ 1,776,003 $ 56,578 30,516 39,000 (8,484) 25,190 22,800 2,390 410,208 357,917 52,291 269,459 229,033 40,426 1,461,418 1,398,998 62,420 2,127,230 2,027,836 99,394 1,131,852 871,000 260,852 883,807 870,000 13,807 85,360 0 85,360 8,316 0 8,316 2,678,630 2,269,998 408,632 3,019,353 2,897,836 121,517 2,135,766 2,195,766 60,000 2,235,447 2,355,447 120,000 530,574 566,576 36,002 564,626 657,628 93,002 698 1,000 302 714 1,500 786 0 400,000 400,000 0 400,000 400,000 2,667,038 3,163,342 496,304 2,800,787 3,414,575 613,788 11,592 (893,344) 904,936 218,566 (516,739) 735,305 1,024,020 893,344 130,676 797,083 516,739 280,344 16,927 0 16,927 8,371 0 8,371 $ 1,052,539 $ 0 $ 1,052,539 $ 1,024,020 $ 0 $ 1,024,020 73 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. 74 Cash and investments Receivable Grants Total assets City of Salina, Kansas Schedule 10 CAPITAL PROJECTS FUND COMPARATIVE BALANCE SHEETS December 31, 1996 and 1995 ASSETS 1996 1995 $ 0 $ 460,608 0 77,308 $ 0 ;$ 537,916 LIABILITIES AND FUND BALANCES Liabilities Accounts payable Retainage payable Due to funds Total liabilities Fund balances Reserved for encumbrances Unreserved Undesignated (deficit) Total fund balances (deficit) Total liabilities and fund balances 75 $ 26 .6 170,953 28,089 0 265,923 0 294,038 170,953 663,412 1,481,153 (957,450) (1,114,190) (294,038) 366,963 $ 0 i 537,916 City of Salina, Kansas CAPITAL PROJECTS FUND COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For the fiscal years ended December 31, 1996 and 1995 Revenues Intergovernmental Charges for services Special assessments Interest 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 (uses) Bond and temporary note proceeds Excess (deficiency) of revenues and other uses over (under) expenditures Fund balances, January 1 Residual equity transfers in Residual equity transfers out Fund balances (deficit), December 31 76 Schedule 11 1996 1995 $ 0 1; 195,642 0 89,413 0 46,563 98,016 11,771 63,669 109,675 161,685 453,064 81,514 1,024,701 7,044,562 793,245 520,000 1,495,000 40,116 70,659 1717 ^797 n, 111 (7,552,238) (2,952,066) 6,897,000 3,049,000 (655,238) 96,934 366,963 278,400 11,164 0 (16,927) (8,371) $ (294,038) $ 366,963 This page left blank intentionally. City of Salina, Kansas ENTERPRISE FUNDS Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the governing body is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or where the governing body has decided that periodic determination of net income is appropriate for accountability purposes. Sanitation fund - To account for the operations of the City's refuse collection service. Solid waste fund - To account for the activities of the City's landfill. Golf course fund - To account for the operations of the municipal golf course. Water and sewer fund - To account for the activities of the City's water and sewer operations. 77 Cash and investments Receivables Accounts Interest Grants 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, 1996 (With comparative totals for December 31, 1995) 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 Accounts and retainage payable General obligation bonds payable - current Temporary notes payable - current General obligation bonds payable Revenue bonds payable Temporary notes payable Landfill closure and postclosure Deferred revenue Total liabilities Equity Contributed capital Retained Earnings Reserved for encumbrances Reserved for bond retirement Reserved for postclosure care costs Unreserved Total equity Total liabilities and equity 78 Solid Waste Sanitation Disposal 608,354 $ 1,073,516 72,847 149,038 0 5,271 0 0 0 0 0 0 18,000 120,000 0 4,701,221 0 0 0 0 637,870 253,159 281,715 1,023,657 0 350,381 0 0 (680,895) (985,765) 0 26,195 $ 937,891 $ 6,716,673 385 S 112,170 0 0 89,347 22,066 0 0 0 29,961 0 0 0 0 0 241,816 0 695,000 0 1,585,471 0 0 0 700,000 0 460,929 0 89,732 0 3,847,TO- 5,187 77,090 0 208,146 0 0 0 45,000 842,972 2,539,024 $ 937,891 5; 6,716,673 Schedule 12 $ 404,185 $ 70,545,274 $ 78,604,023 $ 79,576,929 $ 8,167 $ 202,041 $ Total 386,562 Golf Course Water and 75,040 0 Division Sewer 1996 1995 $ 76,300 $ 12,383,678 $ 14,141,848 $ 15,385,621 0 488,600 710,485 685,704 0 55,800 61,071 66,770 0 0 0 570,068 26,921 375,786 402,707 345,387 0 10,667,462 10,667,462 10,607,088 15,000 361,050 514,050 514,050 184,938 0 4,886,159 2,828,216 0 29,710,884 29,710,884 29,330,679 0 36,732,905 36,732,905 34,491,856 686,650 515,772 2,093,451 2,003,353 18,429 0 1,323,801 1,348,424 225,231 0 575,612 395,992 0 2,849,177 2,849,177 4,733,932 (829,284) (24,101,058) (26,597,002) (24,307,186) 0 505,218 531,413 576,975 $ 404,185 $ 70,545,274 $ 78,604,023 $ 79,576,929 $ 8,167 $ 202,041 $ 322,763 $ 386,562 0 75,040 75,040 0 21,536 277,219 410,168 380,081 0 78,656 78,656 85,419 525 365,755 396,241 540,380 0 1,015,000 1,015,000 955,000 0 0 0 162,516 6,707 0 248,523 248,211 0 0 695,000 765,000 39,849 0 1,625,320 1,873,866 0 33,875,000 33,875,000 34,890,000 0 0 700,000 1,395,000 0 0 460,929 632,295 0 14,367 , 14,367 0 '30 1,700 8,385,683 8,469,660 8,465,313 0 2,408,190 2,616,336 0 0 4,294,494 4,294,494 4,296,012 0 0 45,000 0 325,701 327,401 19,553,829 34,642, 23,261,526 38,687,016-- 24,501,274 37,262,599 $ 404,185 $ 70,545,274 $ 78,604,023 $ 79,576,929 79 City of Salina, Kansas ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For the fiscal year ended December 31, 1996 (With comparative totals for the fiscal year ended December 31, 1995) Operating revenues Intergovernmental Charges for services Miscellaneous Total operating revenues Operating expenses Public works Recreation Depreciation Total operating expenses Operating income (loss) Nonoperating revenues (expenses) Interest Bond issuance costs Debt service Loss on investments Loss on disposition of fixed assets Total nonoperating revenues (expenses) Net income (loss) Retained earnings, January 1 Retained earnings, December 31 80 Solid Waste Sanitation Disposal $ 0 $ 31,141 1,125,543 1,965,438 2,570 20,701 1,128,113 2,017,280 1,116,070 637,095 0 0 43,515 347,131 (31,472) 1,033,054 29,284 45,504 0 (5,857) 0 (164,171) 0 0 29,284 (128,332) (2,188) 904,722 845,160 1,887,448 $ 842,972 $ 2,792,170 Schedule 13 81 Total Golf Course Water and Division Sewer 1996 1995 $ 0 $ 111,554 $ 142,695 $ 12,107 676,131 10,376,007 14,143,119 13,022,832 2,830 19,085 45,186 186,095 678,961 10,506,646 14,331,000 13,221,034 0 7,147,082 8,900,247 7,547,744 646,314 0 646,314 603,937 53,842 1,952,867 2,397,355 2,267,113 700,156 9,099,949 11,943,916 10,418,794 (21,195) 1,406,697 2,387,084 2,802,240 4,676 1,166,345 1,245,809 712,931 0 (39,705) (45,562) (39,705) (2,100) (1,984,439) (2,150,710) (2,100,670) 0 0 0 (29,297) (10,668) (2,075) (16,551) (32,437) (8,092) (859,874) (967,014) (1,489,178) (29,287) 546,823 1,420,070 1,313,062 354,988 25,709,690 28,797,286 27,484,224 $ 325,701 $ 26,256,513 $ 30,217,356 $ 28,797,286 81 City of Salina, Kansas ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS For the fiscal year ended December 31, 1996 (With comparative totals for the fiscal year ended December 31, 1995) 82 Solid Waste Sanitation Disposal Cash flows from operating activities Cash received from customers and users $ 1,121,377 ;$ 1,884,475 Cash paid to suppliers and employees (1,114,027) (861,127) Operating grant receipts 0 31,141 Other operating receipts 2,570 20,701 Net cash provided by operating activities 9,920 1,075,190 Cash flows from capital and related financing activities Purchase and construction of fixed assets (53,548) (227,525) Principal payments - temporary notes 0 (765,000) Principal payments - general obligation bonds 0 (241,527) Principal payments - revenue bonds 0 0 Interest paid 0 (197,949) Proceeds from issuance of debt 0 0 Contributed capital 0 0 Net cash used in capital and related financing activities (53,548) (1,432,001) Cash flows from investing activities Interest received 29,284 44,286 Cash flows from noncapital financing activities Other nonoperating receipts 0 0 Net increase (decrease) in cash and cash equivalents (14,344) (312,525) Cash and cash equivalents, January 1 622,698 1,386,041 Cash and cash equivalents, December 31 $ 608,354 $ 1,073,516 Cash and investments $ 608,354 $ 1,073,516 Restricted cash and investments 0 0 Total cash and cash equivalents $ 608,354 $ 1,073,516 82 Schedule 14 Total Golf Course Water and Division Sewer 1996 1995 $ 676,131 $ 10,443,959 $ 14,125,942 $ 13,695,955 (655,057) (7,266,224) (9,896,435) (8,430,254) 0 111,554 142,695 12,107 2,830 19,085 45,186 186,095 23,904 3,308,374 4,417,388 5,463,903 (54,625) (2,823,582) (3,159,280) (5,280,479) 0 0 (765,000) (745,000) (6,707) 0 (248,234) (174,553) 0 (955,000) (955,000) (880,000) (2,100) (2,094,800) (2,294,849) (2,096,889) 0 0 0 2,635,000 0 570,068 570,068 269,575 (63,432) (5,303,314) (6,852,295) (6,272,346) 4,676 1,173,262 1,251,508 646,161 0 0 0 (29,297) (34,852) (821,678) (1,183,399) (191,579) 111,152 23,872,818 25,992,709 26,184,288 $ 76,300 $ 23,051,140 $ 24,809,310 $ 25,992,709 $ 76,300 $ 12,383,678 $ 14,141,848 $ 15,385,621 0 10, 667,462 10, 667,462 10,607,088 $ 76,300 $ 23,051,140 $ 24,809,310 $ 25,992,709 83 cont. City of Salina, Kansas ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS For the fiscal year ended December 31, 1996 (With comparative totals for the fiscal year ended December 31, 1995) 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 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 accounts and retainage payable Increase (decrease) in landfill closure and postclosure Increase (decrease) in deferred revenue Net cash provided by operating activities 84 Solid Waste Sanitation Disposal (31,472) $ 1,033,054 43,515 347,131 (4,166) (80,963) 0 0 (2,029) 51,188 0 0 4,072 (3,585) 0 0 0 (100,269) 0 (171,366) 0 0 $ 9,920 3; 1,075,190 Schedule 14 Nee 2 Total Golf Course Water and \ nivicinn PWPY $ (21,195) $ 1,406,697 $ 2,387,084 $ 2,802,240 53,842 1,952,867 2,397,355 2,267,113 0 60,348 (24,781) 672,156 (10,980) (46,340) (57,320) (18,931) 1,917 (114,875) (63,799) 139,729 0 75,040 75,040 0 320 29,280 30,087 12,061 0 (6,763) (6,763) 967 0 (62,247) (162,516) (413,977) 0 0 (171,366) 2,545 0 14,367 14,367 0 $ 23,904 $ 3,308,374 $ 4,417,388 $ 5,463,903 85 Revenues Charges for services Interest Miscellaneous Total revenues Expenditures General government Administrative expense Public works Personal services Supplies Contractual 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 Schedule 15 SANITATION ENTERPRISE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL AND BUDGET For the fiscal years ended December 31, 1996 and 1995 (12,316) (550,211) 537,895 620,285 550,211 70,074 (16,648) (520,254) 503,606 636,933 520,254 116,679 $ 607,969 $ 0 $ 607,969 $ 620,285 $ 0 $ 620,285 09i 1996 1995 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) $ 1,121,376 $ 1,020,000 $ 101,376 $ 1,050,500 $ 1,020,000 $ 30,500 29,284 25,000 4,284 29,563 20,000 9,563 2,570 1,000 1,570 13,400 1,000 12,400 1,153,230 1,046,000 107,230 1,093,463 1,041,000 52,463 99,475 99,475 0 98,642 98,642 0 538,835 522,510 (16,325) 514,479 512,480 (1,999) 141,711 134,900 (6,811) 132,453 141,300 8,847 15,264 15,800 536 15,052 15,300 248 316,560 238,000 (78,560) 258,228 267,200 8,972 53,701 45,700 (8,001) 91,257 97,800 6,543 0 539,826 539,826 0 428,522 428,532 1,165,546 1,596,211 430,665 1,110,111 1,561,254 451,143 (12,316) (550,211) 537,895 620,285 550,211 70,074 (16,648) (520,254) 503,606 636,933 520,254 116,679 $ 607,969 $ 0 $ 607,969 $ 620,285 $ 0 $ 620,285 09i 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, 1996 and 1995 Revenues Intergovernmental Charges for services Interest Reimbursements 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) Temporary notes Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues and other sources over (under) expenditures and other uses Fund balances, January I Fund balances, December 31 1996 Schedule 15 Page 2 1995 Variance Favorable Budget (Unfavorable) 0 $ 12,107 1,440,000 49,643 22,000 26,200 0 15 0 27,609 1,462,000 115,574 58,756 103,756 Variance 47,765 47,765 0 Favorable 326,630 Actual Budget (Unfavorable) Actual $ 31,142 $ 0 $ 31,142 $ 12,107 $ 1,884,475 1,845,000 39,475 1,489,643 37,039 35,000 2,039 48,200 15 0 15 15 20,686 10,000 10,686 27,609 1,973,357 1,890,000 83,357 1,577,574 Schedule 15 Page 2 1995 Variance Favorable Budget (Unfavorable) 0 $ 12,107 1,440,000 49,643 22,000 26,200 0 15 0 27,609 1,462,000 115,574 58,756 103,756 45,000 47,765 47,765 0 291,382 326,630 35,248 290,585 298,306 7,721 166,566 154,850 (11,716) 154,910 149,900 (5,010) 23,315 147,300 123,985 6,120 89,500 83,380 437,856 355,250 (82,606) 156,020 226,700 70,680 4,813 5,700 887 376,830 409,000 32,170 1,006,527 1,006,525 (2) 332,846 432,845 99,999 197,923 223,854 25,931 75,661 127,740 52,079 27 0 (27) 1 0 (1) 0 542,867 542,867 0 378,901 378,901 2,187,165 2,866,732 679,567 1,440,738 2,160,657 719,919 (213,808) (976,732) 762,924 136,836 (698,657) 835,493 0 0 0 0 281,000 (281,000) (45,000) 0 (45,000) 0 0 0 (45,000) 0 (45,000) 0 281,000 (281,000) (258,808) (976,732) 717,924 136,836 (417,657) 554,493 958,024 976,732 (18,708) 821,188 417,657 403,531 $ 699,216 $ 0 $ 699,216 $ 958,024 $ 0 $ 958,024 87 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, 1996 and 1995 Revenues Taxes Sales Charges for services Interest Reimbursements Miscellaneous Total revenues Expenditures General government Administrative expenses Recreation Personal services Supplies Contractual Other services and charges Capital outlay Debt service Principal Interest Cash reserve Total expenditures Excess (deficiency) of revenues revenues over (under) expenditures Fund balances, January I Fund balances, December 31 1996 Variance Favorable Actual Budget (Unfavorable) Schedule 15 Page 3 1995 Variance Favorable Actual Budget (Unfavorable) $ 21,280 $ 18,000 $ 3,280 $ 19,480 $ 15,000 $ 4,480 654,851 597,400 57,451 616,441 592,000 24,441 4,677 3,000 1,677 5,273 2,500 2,773 45 200 (155) 210 200 10 2,785 2,000 785 5,721 2,000 3,721 683,638 620,600 63,038 647,125 611,700 35,425 30,581 30,581 0 44,321 44,771 450 282,919 270,022 (12,897) 260,274 265,981 5,707 112,100 94,000 (18,100) 109,442 86,700 (22,742) 26,242 20,500 (5,742) 26,044 17,500 (8,544) 205,141 137,150 (67,991) 155,262 130,300 (24,962) 54,617 71,600 16,983 32,925 48,000 15,075 6,707 6,707 0 6,707 9,142 2,435 2,100 2,100 0 2,434 0 (2,434) 0 87,940 87,940 0 113,789 113,789 720,407 720,600 193 637,409 716,183 78,774 (36,769) (100,000) 63,231 9,716 (104,483) 114,199 104,902 100,000 4,902 95,186 104,48:3 (9,297) $ 68,133 $ 0 $ 68,133 $ 104,902 $ 0 $ 104,902 88 City of Salina, Kansas Schedule 15 WATER AND SEWER ENTERPRISE FUND Page 4 SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL AND BUDGET For the fiscal years ended December 31, 1996 and 1995 Revenues Charges for services Interest Miscellaneous Total revenues Expenditures General government Administrative expenses Public works Personal services Supplies Contractual Other services and charges Capital outlay Debt service Commission and postage Cash reserves 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 1 Fund balances, December 31 89 1996 1995 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) $ 10,429,592 $ 9,958,000 $ 471,592 $ 9,841,994 $ 9,203,000 $ 638,994 283,723 300,000 (16,277) 372,368 200,000 172,368 19,085 100,000 (80,915) 171,008 100,000 71,008 10,732,400 10,358,000 374,400 10,385,370 9,503,000 882,370 500,824 500,824 0 469,200 469,200 0 2,422,112 2,452,460 30,348 2,222,379 2,250,814 28,435 1,675,236 1,771,950 96,714 1,461,151 1,596,200 135,049 534,507 761,000 226,493 1,036,485 736,495 (299,990) 1,260,608 1,208,550 (52,058) 1,087,194 1,156,600 69,406 3,136,381 1,501,000 (1,635,381) 3,421,909 1,001,750 (2,420,159) 756 1,000 244 822 1,000 178 0 5,477,614 5,477,614 0 5,037,100 5,037,100 9,530,424 13,674,398 4,143,974 9,699,140 12,249,159 2,550,019 1,201,976 (3,316,398) 4,518,374 686,230 (2,746,159) 3,432,389 (2,520,611) (2,481,475) (39,136) (2,186,690) (2,506,00D) 319,310 (1,318,635) (5,797,873) 4,479,238 (1,500,460) (5,252,159) 3,751,699 5,112,472 5,797,873 (685,401) 6,612,932 5,252,159 1,360,773 $ 3,793,837 $ 0 $ 3,793,837 $ 5,112,472 $ 0 $ 5,112,472 89 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. 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. 90 Cash and investments Receivables Deposits Inventory Fixed assets Equipment Vehicles Buildings Accumulated depreciation Total assets City of Salina, Kansas INTERNAL SERVICE FUNDS COMBINING BALANCE SHEET December 31, 1996 (With comparative totals for December 31, 1995) ASSETS LIABILITIES AND EQUITY Liabilities Accounts payable Accrued compensated absences Accrued claims payable Total liabilities Equity Contributed capital Retained earnings Unreserved Total liabilities and equity 91 Worker's Risk Compensation Management Reserve $ 624,364 S 1,271,784 0 0 0 0 0 0 0 0 0 0 $ 624,364 1; 1,271,784 $ 3,529 $ 13,187 1,542 0 0 128,986 5,071 142,173 0 0 619,293 1,129,611 $ 624,364 $ 1,271,784 Schedule 16 $ 25,060 $ 3,452 $ Total 38,136 Central Information 35,528 30,426 Garage Services 1996 1995 $ 69,418 $ 114,764 $ 2,080,330 $ 1,415,383 0 0 0 39,693 53,447 0 53,447 66,820 123,341 894,064 1,017,405 981,714 15,911 0 15,911 15,910 22,072 0 22,072 22,072 (116,016) (443,164) (559,180) (437,479) $ 168,173 $ 565,664 $ 2,629,985 $ 2,104,113 $ 25,060 $ 3,452 $ 45,228 $ 38,136 18,943 15,043 35,528 30,426 0 0 128,986 206,434 44,003 18,495 209,742 274,996 16,611 508,435 525,046 455,178 107,559 38,734 1,895,197 1,373,939 $ 168,173 $ 565,664 $ 2,629,985 $ 2,104,113 92 City of Salina, Kansas INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For the fiscal year ended December 31, 1996 (With comparative totals for the fiscal year ended December 31, 1995) Operating revenues Charges for services Reimbursements Miscellaneous Total operating revenues Operating expenses General government Other Depreciation Total operating expenses Operating income (loss) Nonoperating revenues (expenses) Loss on disposition of fixed assets Net income (loss) Retained earnings, January 1 Retained earnings, December 31 L•Itl 342,590 121,064 0 0 342,590 121,064 192,671 481,899 192,671 481,899 A'fL f11 i�.� non $ 619,293 $ 1,129,611 Worker's Risk Compensation Management Reserve $ 513,337 S 563,270 21,924 39,693 0 0 535,261 602,963 342,590 121,064 0 0 342,590 121,064 192,671 481,899 192,671 481,899 A'fL f11 i�.� non $ 619,293 $ 1,129,611 Schedule 17 Total Central Information Garage Services 1996 1995 $ 795,374 $ 186,307 $ 2,058,288 $ 1,924,043 11,881 172,500 245,998 125,407 807,255 362,402 0 353,438 792,332 0 6,018 798,350 8,905 (822) 8,083 498,032 (135,630) 2,307,881 2,051,182 817,092 845,717 792,332 698,459 150,612 154,624 1,760,036 1,698,800 547,845 352,382 (25,765) (26,587) (1,146) (161,395) 521,258 351,236 b iu /,DDy J8, /34 1,895,197 S 1,373,939 94 City of Salina, Kansas INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS For the fiscal year ended December 31, 1996 (With comparative totals for the fiscal year ended December 31, 1995) Cash flows from operating activities Cash received from customers Cash paid to suppliers and employees Other operating receipts Net cash provided by operating activities Cash flows from capital and related financing activities Purchase of fixed assets Proceeds from sales of fixed assets Contributed capital Net cash provided by (used for) capital and related financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, January 1 Cash and cash equivalents, December 31 95 196,679 457,331 0 0 0 0 11 n 0 0 196,679 457,331 A77 <QC O7 A AC') $ 624,364 $ 1,271,784 Worker's Risk Compensation Management Reserve $ 535,261 9> 642,656 (338,582) (185,325) A n 196,679 457,331 0 0 0 0 11 n 0 0 196,679 457,331 A77 <QC O7 A AC') $ 624,364 $ 1,271,784 Central Garage $ 807,255 $ (785,267) 21,988 0 293 Information Schedule 18 Total 1996 1995 358,807 $ 2,343,979 $ 2,034,607 (352,131) (1,661,305) (1,611,137) 3,595 3,595 1,732 (87,006) 0 (87,006) (108,498) 293 0 293 (21,615) (21,322) (63,563) 22,281 (11,344) 664,947 361,639 47,137 126,108 1,415,383 1,053,744 $ 69,418 $ 114,764 $ 2,080,330 $ 1,415,383 96 cont. City of Salina, Kansas INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS For the fiscal year ended December 31, 1996 (With comparative totals for the fiscal year ended December 31, 1995) Reconciliation of operating income (loss) to net cash provided by operating Risk activities Management 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 accrued compensated absences Increase (decrease) in claims payable Net cash provided by operating activities 97 Worker's Compensation Reserve $ 192,671 $ 481,899 0 0 0 0 0 39,693 0 0 3,489 13,187 519 0 0 (77,448) $ 196,679 $ 457,331 Central Information Schedule 18 Page 2 Total 1996 1995 8,90S s (135,630) $ 547,845 $ 352,382 6,018 144,594 15 0, 612 154,624 0 0 0 24,850 0 0 39,693 (39,693) 13,373 0 13,373 10,646 (8,981) (603) 7,092 (41,749) 2,673 1,910 5,102 (7,863) 0 0 (77,448) (27,995) $ 21,988 $ 10,271 $ 686,269 $ 425,202 98 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, 1996 and 1995 99 1996 1995 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budges: (Unfavorable) Revenues Charges for services $ 513,337 $ 513,338 $ (1) $ 512,338 $ 512,338 $ 0 Reimbursements 21,923 0 21,923 0 0 0 Total revenues 535,260 513,338 21,922 512,338 512,338 0 Expenditures General government Personal services 33,409 63,729 30,320 49,120 58,577 9,457 Supplies 2,507 1,900 (607) 2,887 1,900 (987) Contractual 301,429 440,000 138,571 288,692 428,000 139,308 Other services and charges 3,441 5,300 1,859 4,575 4,800 225 Capital outlay 1,284 1,500 216 0 1,500 1,500 Cash reserve 0 279,051 279,051 0 208,941 208,941 Total expenditures 342,070 791,480 449,410 345,274 703,718 358,444 Excess (deficiency) of revenues over (under) expenditures 193,190 (278,142) 471,332 167,064 (191,380) 358,444 Fund balances, January 1 427,645 278,142 149,503 260,581 191,380 69,201 Fund balances, December 31 $ 620,835 $ 0 $ 620,835 $ 427,645 $ 0 $ 427,645 99 City of Salina, Kansas Schedule 19 Page 2 WORKMEN'S COMPENSATION RESERVE INTERNAL SERVILE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL AND BUDGET For the fiscal years ended December 31, 1996 and 1995 100 1996 1995 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues Charges for services $ 563,270 $ 563,270 $ 0 $ 514,536 $ 514,5.36 $ 0 Reimbursements 39,693 0 39,693 1,627 0 1,627 Total revenues 602,963 563,270 39,693 516,163 514,536 1,627 Expenditures General government Contractual 68,279 424,000 355,721 264,091 424,000 159,909 Cash reserve 0 587,381 587,381 0 774,760 774,760 Total expenditures 68,279 1,011,381 943,102 264,091 1,198,760 934,669 Excess (deficiency) of revenues over (under) expenditures 534,684 (448,111) 982,795 252,072 (684,224) 936,296 Fund balances, January 1 608,020 448,111 159,909 355,948 684,224 (328,276) Fund balances, December 31 $ 1,142,704 $ 0 $ 1,142,704 $ 608,020 $ 0 $ 608,020 100 City of Salina, Kansas Schedule 19 Page 3 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, 1996 and 1995 101 1996 1995 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues Charges for services $ 795,374 $ 823,802 $ (28,428) $ 691,094 $ 823,802 $ (132,708) Reimbursements 11,881 0 11,881 3,780 0 3,780 Total revenues 807,255 823,802 (16,547) 694,874 823,802 (128,928) Expenditures General government Personal services 193,614 194,945 1,331 178,463 188,602 10,139 Supplies 553,059 516,350 (36,709) 495,399 592,250 96,851 Other services and charges 14,170 20,500 6,330 12,864 20,900 8,036 Administrative expenses 7,150 7,150 0 6,500 6,500 0 Capital outlay 5,860 6,000 140 19,861 2,500 (17,361) Cash reserve 0 106,996 106,996 0 56,000 56,000 Total expenditures 773,853 851,941 78,088 713,087 866,752 153,665 Excess (deficiency) of revenues over (under) expenditures 33,402 (28,139) 61,541 (18,213) (42,950) 24,737 Fund balances, January 1 10,956 28,139 (17,183) 29,169 42,950 (13,781) Fund balances, December 31 $ 44,358 $ 0 $ 44,358 $ 10,956 $ 0 $ 10,956 101 City of Salina, Kansas Schedule 19 Paee 4 INFORMATION SERVICES INTERNAL SERVICE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL AND BUDGET For the fiscal years ended December 31, 1996 and 1995 102 1996 1995 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues Charges for services $ 186,307 $ 380,161 $ (193,854) $ 206,075 $ 326,995 $ (120,920) Reimbursements 172,500 0 172,500 120,000 0 120,000 Miscellaneous revenues 3,595 0 3,595 0 0 0 Total revenues 362,402 380,161 (17,759) 326,075 326,995 (920) Expenditures General government Personal services 224,432 247,097 22,665 189,005 195,278 6,273 Supplies 26,595 8,000 (18,595) 10,388 8,000 (2,388) Contractual 1,676 19,100 17,424 0 19,100 19,100 Other services and charges 55,717 42,000 (13,717) 54,068 42,000 (12,068) Administrative expenses 4,020 4,020 0 2,900 2,900 0 Capital outlay 60,703 53,000 (7,703) 49,964 53,000 3,036 Cash reserve 0 114,232 114,232 0 74,832 74,832 Total expenditures 373,143 487,449 114,306 306,325 395,110 88,785 Excess (deficiency) of revenues over (under) expenditures (10,741) (107,288) 96,547 19,750 (68,115) 87,865 Other financing sources Sale of assets 0 0 0 1,732 0 1,732 Excess (deficiency) of revenues and other sources over (under) expenditures (10,741) (107,288) 96,547 21,482 (68,11:5) 89,597 Fund balances, January 1 122,053 107,288 14,765 100,571 68,115 32,456 Fund balances, December 31 $ 111,312 $ 0 $ 111,312 $ 122,053 $ 0 $ 122,053 102 This page left blank intentionally. 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 payables 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. Employees' deferred compensation agency fund - To account for assets held for employees in accordance with the provisions of Internal Revenue Code Section 457. Police investigation account agency fund - To account for monies held by the police department for use in investigations. 103 City of Salina, Kansas EXPENDABLE TRUST, NON - EXPENDABLE TRUST AND AGENCY FUNDS COMBINING BALANCE SHEET December 31, 1996 (With comparative totals for December 31, 1995) Expendable 104 Trust Non - Expendable Trust War Memorial Maintenance Citizenship Cemetery Mausoleum Tricentennial ASSETS Fund Trust Endowment Endowment: Commission Cash and investments $ 36,955 $ 14,468 $ 158,194 $ 20,652 $ 3,257 Receivables Interest 0 0 0 0 0 Total assets $ 36,955 $ 14,468 $ 158,194 $ 20,652 $ 3,257 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ 45 $ 0 $ 0 $ 0 $ 0 Deferred compensation benefits payable 0 0 0 0 0 Total liabilities 45 0 0 0 0 Fund balances Unreserved Undesignated 36,910 14,468 158,194 20,652 3,257 Total liabilities and fund balances $ 36,955 $ 14,468 $ 158,194 $ 20,652 $ 3,257 104 Schedule 20 Agency Special Traffic Fire 0 $ Assessment Signal Insurance PEGS Payroll Escrow Escrow Proceeds Access Clearing $ 150,011 $ 5,247 $ 10,131 $ 0 $ 278,063 0 0 0 0 0 $ 150,011 $ 5,247 $ 10,131 $ 0 $ 278,063 $ 150,011 $ 5,247 $ 10,131 $ 0 $ 278,063 0 0 0 0 0 150,011 5,247 10,131 0 278,063 0 0 0 0 0 $ 150,011 $ 5,247 $ 10,131 $ 0 $ 278,063 105 cont. City of Salina, Kansas EXPENDABLE TRUST, NON - EXPENDABLE TRUST AND AGE1ICY FUNDS COMBINING BALANCE SHEET December 31, 1996 (With comparative totals for the fiscal year ended December 31, 1995) ASSETS Cash and investments Receivables Interest Total assets Agency Court Employees' Police Bond and Deferred Investigation Restitution Compensation Account Total Schedule 20 Page 2 26,447 2,064,933 $ 1,741 $ 2,770,099 $ 2,439,131 An - - ___ $ 26,447 2,064,933 $ 1,741 $ 2,770,099 $ 2,439,360 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ 26,447 0 $ 1,741 $ 471,685 $ 493,837 Deferred compensation benefits payable 0 2,064,933 0 2,064,933 1,728,230 Total liabilities 26,447 2,064,933 1,741 2,536,618 2,222,067 Fund balances Unreserved Undesignated 0 0 0 233,481 217,293 Total liabilities and fund balances $ 26,447 2,064,933 $ 1,741 $ 2,770,099 $ 2,439,360 106 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, 1996 and 1995 Revenues Interest Miscellaneous Total revenues Expenses Parks and recreation Excess of revenues over expenses Fund balances, January 1 Fund balances, December 31 107 1996 $ 1,433 $ 3,219 4,652 Schedule 21 862 32,862 314 290 4,338 32,572 32,572 0 $ 36,910 $ 32,572 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, 1996 (With comparative totals for the fiscal year ended December 31, 1995) Operating revenues Charges for services Interest Total revenues Operating expenses Other Net income (loss) Fund balances, January 1 Fund balances, December 31 108 Citizenship Cemetery $ 0 $ 5,641 581 6,245 581 11,886 1,500 35 (919) 11,851 1 C 12 417 l A4 7 A'1 $ 14,468 9; 158,194 Schedule 22 Total iviausoieum i r►centenmal Endowment Commission 1996 1995 $ 0 $ 0 $ 5,641 $ 5,057 831 87 7,744 8,316 IM City of Salina, Kansas NONEXPENDABLE TRUST FUNDS COMBINING STATEMENT OF CASH FLOWS For the fiscal year ended December 31, 1996 (With comparative totals for the fiscal year ended December 31, 1995) Cash flows from operating activities Cash received from customers Cash paid to suppliers Other operating receipts Net cash provided by (used for) operating activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, January 1 Cash and cash equivalents, December 31 Reconciliation of operating income (loss) to net cash provided by (used for) operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities (Increase) decrease in receivables Net cash provided by (used for) operating activities m Citizenship Cemetery Trust Endowment $ 0 $ 5,641 (1,500) (35) 727 6,245 (773) 11,851 (773) 11,851 15,241 146,343 $ 14,468 $ 158,194 $ (919) $ 11,851 1A4 $ (773) $ 11,851 Schedule 23 $ 831 $ 87 $ 11,850 $ 13,373 0 83 229 (45) $ 831 $ 170 $ 12,079 $ 13,328 111 Total Mausoleum Tricentennial Endowment Commission 1996 1995 $ 0 $ 0 $ 5,641 $ 5,057 0 0 (1,535) 0 831 170 7,973 8,271 831 170 12,079 13,328 831 170 12,079 13,328 $ 831 $ 87 $ 11,850 $ 13,373 0 83 229 (45) $ 831 $ 170 $ 12,079 $ 13,328 111 City of Salina, Kansas AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES For the fiscal year ended December 31, 1996 Special Assessment Escrow ASSETS Cash and investments LIABILITIES Payable to others Traffic Signal Escrow ASSETS Cash and investments LIABILITIES Payable to others Fire Insurance Proceeds ASSETS Cash and investments LIABILITIES Accounts payable Balance January 1, Schedule 24 Balance December 31, $ 221,387 $ 68,693 $ 140,069 $ 150,011 $ 221,387 $ 68,693 $ 140,069 $ 150,011 $ 0 $ 5,247 $ 0 `.i 5,247 $ 0 $ 5,247 $ 0 9> 5,247 $ 14,471 $ 2,256 $ 6,596 $ 10,131 $ 14,471 $ 2,256 $ 6,596 $ 10,131 [IV) City of Salina, Kansas AGENCYFUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES For the fiscal year ended December 31, 1996 PEGS Access ASSETS Cash and investments LIABILITIES Accounts payable Payroll Clearing ASSETS Cash and investments LIABILITIES Payable to others Court Bond and Restitution ASSETS Cash and investments LIABILITIES Payable to others Balance January 1, Schedule 24 Paee 2 Balance December 31, $ 0 $ 121,467 $ 121,467 $ 0 $ 0 $ 121,467 $ 121,467 $ 0 $ 235,891 $ 19,224,931 $ 19,182,759 $ 278,063 $ 235,891 $ 19,224,931 $ 19,182,759 $ 278,063 $ 20,088 $ 131,180 $ 124,821 ;$ 26,447 $ 20,088 $ 131,180 $ 124,821 ;6 26,447 113 City of Salina, Kansas AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES For the fiscal year ended December 31, 1996 Employees' Deferred Compensation ASSETS Cash and investments LIABILITIES Deferred compensation benefits payable Balance January 1, Schedule 24 Page 3 Balance December 31, $ 1,728,230 $ 397,640 $ 60,937 $ 2,064,933 $ 1,728,230 $ 397,640 $ 60,937 2,064,933 Police Investigation Account ASSETS Cash and investments $ 0 $ 2,741 $ 1,000 $ 1,741 LIABILITIES Payable to others $ 0 $ 2,741 $ 1,000 $ 1,741 Total - Agency Funds ASSETS Cash and investments $ 2,220,067 $ 19,954,155 $ 19,637,649 $ 2,536,573 LIABILITIES Accounts payable $ 14,471 $ 123,723 $ 128,063 $ 10,131 Deferred compensation benefits payable 1,728,230 397,640 60,937 2,064,933 Payable to others 477,366 19,432,792 19,448,649 461,509 Total liabilities $ 2,220,067 $ 19,954,155 $ 19,637,649 $ 2,536,573 114 City of Salina, Kansas GENERAL FIXED ASSETS 115 This page left blank intentionally. City of Salina, Kansas COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE December 31, 1996 and 1995 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 116 Schedule 25 1996 1995 $ 2,589,193 $ 2,589,193 10,788,238 10,759,729 985,482 765,910 8,627,812 8,017,458 $ 22,990,725 $ 22,132,290 $ 21,920,941 $ 21,115,745 395,269 342,797 656,046 656,046 18,469 17,702 $ 22,990,725 $ 22,132,290 City of Salina, Kansas SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY December 31, 1996 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 1,220,623 Inspection 0 0 Total public safety 63,902 1,665,986 Highways and streets Engineering 0 0 Maintenance 10,470 155,211 Planning 0 0 Total highways and streets 10,470 155,211 Culture and recreation 609,870 2,906,909 Total general fixed assets $ 2,589,193 $ 10,788,238 117 Schedule 26 Improvements Other Than Machinery Total Total Buildings and Equipment 1996 1995 $ 0 $ 81,719 $ 81,719 $ 58,275 0 171,906 171,906 164,614 0 18,751 18,751 9,847 260,616 211,461 592,991 411,213 0 19,113 19,113 14,647 85,348 1,688,578 7,072,256 7,044,800 0 49,446 2,595,285 2,545,839 345,964 2,240,974 10,552,021 10,249,235 53,820 1,188,972 1,688,755 1,527,197 0 38,267 38,267 32,839 0 2,550,884 3,834,809 3,672,821 0 44,096 44,096 37,669 53,820 3,822,219 5,605,927 5,270,526 0 99,263 99,263 67,817 150,647 1,201,729 1,518,057 1,459,650 0 101,971 101,971 67,298 150,647 1,402,963 1,719,291 1,594,765 435,051 1,161,656 5,113,486 5,017,764 $ 985,482 $ 8,627,812 $ 22,990,725 $ 22,132,290 118 City of Salina, Kansas SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY For the fiscal year ended December 31, 1996 Public safety Police 1,527,197 227,780 Municipal court 32,839 5,428 Fire 3,672,821 164,628 Inspection 37,669 6,427 Total public safety 5,270,526 404,263 Highways and streets Engineering General Fixed 31,446 Maintenance Assets 58,138 Planning January 1, 37,673 Function and Activity 1996 Additions General government Manager $ 58,275 $ 23,444 Finance 164,614 10,007 Personnel 9,847 8,904 General services 411,213 183,751 Human relations 14,647 4,466 Bi- Centennial center 7,044,800 27,456 Other 2,545,839 49,446 Total general government 10,249,235 307,474 Public safety Police 1,527,197 227,780 Municipal court 32,839 5,428 Fire 3,672,821 164,628 Inspection 37,669 6,427 Total public safety 5,270,526 404,263 Highways and streets Engineering 67,817 31,446 Maintenance 1,459,650 58,138 Planning 67,298 37,673 Total highways and streets 1,594,765 127,257 Culture and recreation Total general fixed assets 5,017,764 102,048 $ 22,132,290 $ 941,042 Schedule 27 General Fixed Assets Interfund December 31, $ 0 $ 0 $ 81,719 1,499 (1,216) 171,906 0 0 18,751 2,575 602 592,991 0 0 19,113 0 0 7,072,256 0 0 2,595,285 4,074 (614) 10,552,021 66,222 0 1,688,755 0 0 38,267 2,640 0 3,834,809 0 0 44,096 0 0 99,263 9,939 10,208 1,518,057 3,000 0 101,971 12,939 10,208 1,719,291 19,183 12,857 5,113,486 $ 105,058 $ 22,451 $ 22,990,725 120 This page left blank intentionally. STATISTICAL SECTION This page left blank intentionally. Fiscal General Year Government Public Safety Public Works Recreation 1991 1,487,342 4,930,155 1,227,758 1,477,; 1992 1,463,391 5,381,008 1,422,210 1,567,' 1993 1,426,997 5,834,653 1,386,714 1,600,1 1994 1,069,325 6,735,353 1,332,977 1,721,1 1995 (3) 1,167,329 7,321,192 1,464,980 1,741,1 1995 (4) 5,095,357 7,106,760 2,323,002 1,741,1 1996 5,400,526 7,492,967 2,631,025 1,872, Capital C 14% Debt Service 16% Health Welf; 2% Cultural Public Works Community 2% Recreation 8% Development 6% 1% 1995 (4) Bicentennial Center Other General 7% 0% Government 1 QU /_ 'ublic Safety 26% Loapnat c 15° 1996 Bicentennial Center Other General 6% 0% Government (1) Includes general, special revenue, and debt service funds. (2) Prior year expenditures are not available on a GAAP basis (3) Some Expenditures reclassified in 1995. This line presents the 1995 expenditures based on the 1994 and prior classification, for comparison purposes. (4) Reflects the functional classification as presented in the 1995 and subsequent year schedules. 121 iblic Safety 26% City of Salina General Government Expenditures by Functions (1) Last Six Fiscal Years (2) Community Health and Bicentennial Cultural Development Welfare Debt Service Capital Outlay Center Other Total 327,241 369,179 146,615 2,299,444 1,415,043 1,665,892 6,362,182 21,708,077 337,911 339,084 138,733 2,768,149 1,530,150 1,415,537 6,337,016 22,700,293 346,677 175,254 173,122 2,902,019 1,558,158 1,968,806 4,547,476 21,919,969 379,777 441,307 525,026 2,772,819 2,796,288 1,720,509 4,533,986 24,028,391 470,270 194,552 553,614 4,387,971 3,756,136 2,067,114 4,690,997 27,815,221 470,270 286,458 467,772 4,387,971 3,756,136 2,067,114 113,315 27,815,221 469,901 473,245 474,604 3,302,600 4,261,039 1,768,489 29,561 28,176,844 Bicentennial Center Other General 7% 0% Government 1 QU /_ 'ublic Safety 26% Loapnat c 15° 1996 Bicentennial Center Other General 6% 0% Government (1) Includes general, special revenue, and debt service funds. (2) Prior year expenditures are not available on a GAAP basis (3) Some Expenditures reclassified in 1995. This line presents the 1995 expenditures based on the 1994 and prior classification, for comparison purposes. (4) Reflects the functional classification as presented in the 1995 and subsequent year schedules. 121 iblic Safety 26% City of Salina (1) Includes general, special, and debt service funds (2) Prior Year expenditures are not available on a GAAP basis 122 General Government Revenues by Source (1) Table 2 Last Six Fiscal Years (2) Fiscal Charges for Special Year Taxes Intergovernmental Services Fines Assesments Interest Reimbursements Miscellaneous Total 1991 13,019,231 2,623,225 2,682,505 395,447 726,245 554,636 672,264 455,285 21,128,838 1992 13,897,325 2,756,614 2,416,921 347,884 881,231 363,734 35,467 890,109 21,589,285 1993 15,479,559 2,769,828 3,174,444 574,958 940,487 444,853 55,968 771,233 24,211,330 1994 16,153,904 3,305,815 3,089,651 1,020,116 868,202 548,655 46,887 786,802 25,820,032 1995 17,138,776 3,170,244 3,585,877 1,093,347 1,012,596 725,163 172,263 717,265 27,615,531 1996 17,557,494 3,342,888 3,160,771 970,233 1,191,772 908,415 423,269 557,306 28,112,148 (1) Includes general, special, and debt service funds (2) Prior Year expenditures are not available on a GAAP basis 122 City of Salina General Government Tax Revenues by Source (1) Table 3 Last Six 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 (1) Includes General, special revenue and Debt Service Funds (2) Prior Year Expenditures are not available on a GAAP basis 123 City of Salina Property Tax Levies and Collections Last 10 Fiscal Years 1oz.o -io 100.0% 98.0% 96.0% 94.0% 92.0% 90.0% 88.0% 1987 Percent of Property Taxes Collected 1988 1989 1990 1991 1992 1993 1994 1995 1996 —0 Percent of Current Taxes Collected Ratio of Total Tax Collections to Fax Levy 124 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 1987 4,116,562 4,005,867 97.3% 95,461 4,101,328 99.6% 1988 4,163,314 4,086,792 98.2% 65,960 4,152,752 99.7% 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% 1oz.o -io 100.0% 98.0% 96.0% 94.0% 92.0% 90.0% 88.0% 1987 Percent of Property Taxes Collected 1988 1989 1990 1991 1992 1993 1994 1995 1996 —0 Percent of Current Taxes Collected Ratio of Total Tax Collections to Fax Levy 124 Table 4 City of Salina Assessed and Estimated Actual Value of Property Last Ten Fiscal Years (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 valorum 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. 125 Table 5 Assessed Value Katio of Assessed Total, Assessed Estimated Total Value to Estimated Fiscal Year Real Estate Personal Property State Assessed Motor Vehicle Value Market Value Market Value 1987 69,906,890 31,405,020 10,544,260 27,447,177 139,303,347 1,105,157,648 12.60 1988 72,066,960 31,552,430 10,884,189 28,786,730 143,290,309 1,147,347,527 12.49 1989 71,441,070 35,215,115 10,765,830 30,847,364 148,269,379 1,160,411,705 12.78 (1) 1990 125,389,311 13,454,685 11,094,235 35,096,364 185,034,595 1,026,844,668 18.02 1991 134,834,179 14,314,162 11,208,262 34,515,855 194,872,458 1,075,575,019 18.12 1992 135,267,866 16,751,713 11,545,541 35,803,591 199,368,711 1,105,026,368 18.04 (2)1993 129,632,717 22,447,713 12,849,722 37,569,816 202,499,968 1,175,493,628 17.23 1994 145,239,331 22,678,728 14,272,658 41,805,765 223,996,482 1,314,830,748 17.04 1995 166,462,923 24,890,665 12,528,204 42,981,776 246,863,568 1,482,502,705 16.65 1996 175,997,879 25,550,448 12,708,970 43,786,794 258,044,091 1,551,794,365 16.63 (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 valorum 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. 125 Table 5 City of Salina Principal Taxpayers 1996 Valuations 1996 Assessed % of Total Taxpayer Type of Business Valuation Valuation Schwan's Sales Pizza Manufacturing 8,175,807 3.17% Western Resources Electric and Gas 6,038,273 2.34% Southwestern Bell Telephone Utility 5,494,302 2.13% Warmack, Salina Partnership Retail Shopping Mall 4,893,353 1.90% Wal -Mart Stores, Inc. Discount Retail Stores 2,352,756 0.91% Omaha Hotel Inc Hotel 1,413,831 0.55% Dayton Hudson Corp Target Store 1,169,999 0.4.5% Sunset Plaze, Inc Retail Development 1,914,868 0.74% Malan Mortgagor, Inc K -Mart Store 856,448 0.:; ;3% Union Pacific Railroad Railroad 683,514 0.27% Combined Valuation of the Ten Largest Taxpayors 32,993,151 Percent of Total City Assessed Valuation 12.79% 126 Table 6 City of Salina Property Tax Rates Direct and Overlapping Governments Last Ten Fiscal Years Table 7 1987 City of Salina Saline County USD 305 (2) Other (1) Total 79.779 Fiscal (Budget) Year 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 29.513 6.847 1987 29.345 7.015 36.360 21.000 21.000 79.779 2.094 81.873 5.790 145.023 1988 29.513 6.847 36.360 21.000 21.000 84.023 4.756 88.779 6.487 152.626 1989 35.007 1.353 36.360 23.460 23.460 90.097 5.542 95.639 6.653 162.112 1990 22.643 7.372 30.015 19.074 19.074 72.065 4.427 76.492 5.599 131.180 1991 26.357 3.671 30.028 20.122 - 20.122 76.378 3.094 79.472 5.818 135.440 1992 22.764 7.064 29.828 20.464 - 20.464 80.343 3.029 83.372 6.074 139.738 1993 22.114 7.735 29.849 21.718 - 21.718 40.301 3.581 43.882 6.557 102.006 1994 22.910 6.551 29.461 24.562 - 24.562 37.353 3.332 40.685 8.521 103.229 1995 18.555 10.154 28.709 26.571 - 26.571 39,357 3.044 42.401 8.265 105.946 1996 15.812 11.130 26.942 20.940 1.985 22.925 39.368 2.944 42.312 8.340 100.519 Tax Distribution, 1995 Tax Distribution, 1996 Other Total City Other Total City 8% Millage 8% Millage 27% 27% Total USD Millage Total USD 406 Millage 42% Total County Millage Total County 25% Millage I 1 1 23% 1 (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 127 City of Salina Special Assesment Billings and Collections Last Ten Fiscal Years 1. Includes prepayments and delinquent collections. lim Table 8 Special Ratio of Total Special Assessment Special Assessment Assessments Collection; to Total Fiscal Year Billings Collections Assessments Levied 1987 1,067,397 768,509 0.72 1988 1,021,973 922,020 0.90 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 1. Includes prepayments and delinquent collections. lim Table 8 City of Salina Computation of Legal Debt Margin December 31, 1996 Assessed Valuation (1) Legal Debt Margin: Debt Limit: 23.49% of Assessed Valuation (2) Debt Applicable to Limitation: Total Bonded Debt Less: Revenue Bonds Amount Available for repayment of general obligation bonds Total Debt Applicable to Limitation Legal Debt Margin Table 9 258,044,091 60,614,557 51,394,000 35,845,000 1,052,539 14, 496, 461 46,118, 096 1. Assessed valuation for the purposes of calculating the debt limitation includes the valuation attributable to Motor Vehicles. 2. Prior to statewide reappraisal and reclassification of all real property in 1989 cities within Kansas were permitted to issue bonds in an aggregate amount not to exceed 30% of the total assessed valuation of the city. In conjunction with statewide reappraisal and reclassification, previous debt limits were suspended. For tax years beginning with January 1, 1989, the limitation on indebtedness is based on a percentage which is calculated by dividing the amount of debt authorized by the city in the year immediately prior to the implementation of statewide reappraisal and reclassification by the assessed valuation in the year of implementation. Based on this formula, the City is authorized to issue bonds in the aggregate amount of 23.49% of its total assessed valuation. 129 City of Salina Ratio of Net General Obligation Bonded Debt To Assessed Value and Net General Obligation Bonded Debt Per Capita Table 10 250.00 200.00 150.00 100.00 5000 i 0.00 Per Capita General Obligation Debt 1987 1988 1989 1990 1991 1992 1993 1994 1995(1) 1996(1) 1. Population estimates are based on the 1980 and 1990 Census, except 1995 and 1996 are based on the 7/01/94 Census Bureau estimate. 2. From Table 5. 3. Outstanding Debt amounts reflect portion of the outstanding debt for which general taxes will be required. This excludes revenue bonds, GO obligations for which other revenue has been pledged, and obligations for which special assessments will be levied. 4. Amount available for repayment of General Obligation Bonds. 130 Less Debt Ratio of Net Net Bonded Fiscal Population Assessed Value Gross Bonded Service Fund Net Bonded Bonded Debt to Debt Per Year (1) (2) Debt (3) (4) Debt Assessed Value Capita 1987 41,843 143,290,309 7,069,345 304,244 6,765,101 4.72 161.68 1988 41,843 143,290,309 6,502,986 351,958 6,151,028 4.29 147.00 1989 41,843 148,269,379 6,323,473 237,897 6,085,576 4.10 145.44 1990 42,303 185,034,595 5,801,642 344,280 5,457,362 2.95 129.01 1991 42,303 194,872,458 8,004,443 304,252 7,700,191 3.95 182.02 1992 42,303 199,368,711 8,795,864 333,505 8,462,359 4.24 200.04 1993 42,303 202,499,968 9,478,791 539,887 8,938,904 4.41 211.31 1994 42,303 223,996,482 7,854,994 797,083 7,057,911 3.15 166.84 1995 (1) 44,129 246,863,568 8,465,000 1,024,020 7,440,980 3.01 168.62 1996(l) 44,841 258,044,091 10,211,899 1,052,539 9,159,360 3.55 204.26 250.00 200.00 150.00 100.00 5000 i 0.00 Per Capita General Obligation Debt 1987 1988 1989 1990 1991 1992 1993 1994 1995(1) 1996(1) 1. Population estimates are based on the 1980 and 1990 Census, except 1995 and 1996 are based on the 7/01/94 Census Bureau estimate. 2. From Table 5. 3. Outstanding Debt amounts reflect portion of the outstanding debt for which general taxes will be required. This excludes revenue bonds, GO obligations for which other revenue has been pledged, and obligations for which special assessments will be levied. 4. Amount available for repayment of General Obligation Bonds. 130 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 Total General Ratio of Debt Service to Governmental General Governmental Fiscal Year Principal Interest (2) Total Debt Service Expenditiures (3) Expenditures (3) 1987 770,134 302,401 1,072,535 1988 991,258 488,387 1,479,645 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% Table 11 (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. 131 City of Salina Computation of Direct and Overlapping Bonded Debt General Obligation Bonds December 31, 1996 Net General Obligation Percentage Amount Bonded Debt Applicable to City Applicable to the Jurrisdiction Outstanding of Salina City of Salina Direct: City of Salina 9,159,360 100% 9,159,360 Overlapping: Salina Airport Authority (1) 2,705,000 100% 2,705,000 USD 305 (2) 3,585,000 92% 3,295,691 Total 15,449,360 15,160,051 1. Salina airport Authority Debt is as of April 1, 1997 2. USD 305 Debt is as of June 30, 1996 Table 12 132 City of Salina Revenue Bond Coverage Water and Sewer Fund Last Ten Fiscal Years 3.75 350 3.25 3.00 2.75 2.50 2.25 200 1.75 1.50 125 1.00 0.75 0.50 0.25 000 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 (1) Excludes interest income (2) Excludes Depreciation 133 Table 13 Debt Service Requirements Net Revenue Fiscal Operating Operating Available for Debt Year Revenues (1) Expenses(2) Service Principal Interest Total Coveraae 1987 4,094,841 3,211,266 883,575 210,000 208,459 418,459 2.11 1988 5,488,165 3,420,799 2,067,366 300,000 352,119 652,119 3.17 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 3.75 350 3.25 3.00 2.75 2.50 2.25 200 1.75 1.50 125 1.00 0.75 0.50 0.25 000 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 (1) Excludes interest income (2) Excludes Depreciation 133 City of Salina Property Value and Construction Last Ten Fiscal Years Table 14 Total Property Value • -. 5=174 I# -- Estimated Value of Fiscal Year (Thousands) Permits Issued Permits Issued 1987 1,147,348 470 17,391,757 1988 1,160,412 457 15,426,410 1989 1,037,898 490 18,851,000 1990 1,026,845 497 36,469,096 1991 1,075,575 562 22,665,785 1992 1,105,026 598 25,283,947 1993 1,175,494 628 36,411,632 1994 1,314,831 694 38,667,261 1995 1,482,502 759 34,156,955 1996 1,551,794 832 55,369,816 Table 14 134 • -. 5=174 I# -- fit off fee $81 VON j Ov, i E/w. ma FEE IN 134 Fiscal Year 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 Population (1) 41,843 41,843 41,843 42,303 42,303 42,303 42,303 42,303 44,129 44,841 City of Salina Demographic Analysis Last 10 Fiscal Years Per Capita Income (2) Median Age (3) 15,166 32.0 16,398 32.2 17,509 32.6 19,002 33.1 19,313 32.4 20,373 32.7 20,753 33.3 21,564 33.7 22,596 34.2 23,701 NA School Enrolllment Unemployment (4) Rate (5) 7,008 5.8 7,054 5.4 7,115 4.4 7,333 4.1 7,489 4.2 7,687 3.8 7,661 4.6 7,243 4.6 7,229 4.4 7,316 3.7 Table 15 Data Sources: 1) Population estimates are based on the 1980 and 1990 Census, except 1995 is based on the 7/01/94 Census Bureau Est. (2) U.S. Bureau of Economic Analysis, except 1996 which is a staff projection (3) Wood and Poole Economics, Inc. (4) U.S. D. 305 (5) Kansas Department of Human Resources 135 SINGLE AUDIT SECTION This page left blank intentionally. 234 South Main P.O. Box 1020 Ottawa, Kansas 66067 (913) 242 -3170 Y�-- f-Au A ler OrGdeddert CHARTERED Certified Public Accountants W. Keith Gaeddert Lucille L. Hinderliter Raymond E. Meyer, Jr. REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS ON SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE Honorable Mayor and City Commissioners City of Salina, Kansas We have audited the general purpose financial statements of the City of Salina, Kansas as of and for the year ended December 31, 1996, and have issued our report thereon dated May 22, 1997. These general purpose financial statements are the responsibility of the City of Salina, Kansas management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget Circular A -128, "Audits of State and Local Governments ". Those standards and OMB Circular A -128 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 financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the City of Salina, Kansas taken as a whole. The accompanying Schedule of Federal Financial Assistance is presented for purposes of additional analysis and is not a required part of the general purpose financial statements., The information in that schedule 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. May 22, 1997 NZ City of Salina, Kansas SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE For the fiscal year ended December 31, 1996 Federal Grantor/ Federal Pass Through Grantor / CFDA Program Title Number ENVIRONMENTAL PROTECTION AGENCY Wastewater Treatment Plant 66.418 US DEPT OF HOUSING AND URBAN DEVELOPMENT Kansas Dept of Commerce and Housing Program Grant or Award Number Amount Revenues Expenditures C20- 1231 -0 $ 5,826,389 $ 695,989 $ 2,709 Emergency Shelter Grant 14.231 S95 -DC -20 -001 Emergency Shelter Grant 14.231 S96 -DC -20 -001 HOME Investment Partnership Program 14.239 M94 -SG -20 -0107 Direct Assistance 50,300 45,620 Fair Housing Assistance 14.401 FF207K957004 Total US Dept of Housing and Urban Development US DEPT OF TRANSPORTATION Kansas Dept of Transportation National Highway Traffic Safety Grant 20.600 AL94/96- 96 -01 -0 INSTITUTE OF MUSEUM SERVICES General Operating Support Grant 45.301 IG- 40662 -94 NATIONAL ENDOWMENT FOR THE HUMANITIES Direct Assistance 45.125 GM- 25456 -95 NATIONAL PARK SERVICE Kansas Historic Preservation Office Heritage Conservation Plan n/a 20 -95- 10004 -002 TOTAL FEDERAL FINANCIAL ASSISTANCE 137 25,307 10,515 10,515 27,197 3,030 3,030 200,000 167,006 164,565 50,300 50,300 45,620 230,851 223,730 201,352 160,159 131,594 46,509 17,441 17,441 21,760 4,128 4,128 3,000 1,077 0 $ 1,109,645 $ 379,602 234 South Main P.O. Box 1020 Ottawa, Kansas 66067 (913) 242 -3170 A Certified Public Accountants W. Keith Gaeddert Lucille L. Hinderliter Raymond E. Meyer, Jr. REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS ON INTERNAL CONTROL STRUCTURE BASED ON AN AUDIT OF GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GO VERNMENTAUDITINGSTANDARDS Honorable Mayor and City Commissioners City of Salina, Kansas We have audited the general purpose financial statements of the City of Salina, Kansas as of and for the year ended December 31, 1996, and have issued our report thereon dated May 22, 1997. We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget Circular A -128, "Audits of State and Local Governments ". Those standards and OMB Circular A -128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. The management of the City of Salina, Kansas, is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. In planning and performing our audit of the general purpose financial statements of the City of Salina, Kansas, for the year ended December 31, 1996, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities 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 structure and its operation that we consider to be material weaknesses as defined above. 138 However, we noted certain matters involving the internal control structure and its operation that we have reported to the management of the City of Salina, Kansas in a separate letter dated May 22, 1997. This report is intended for the information of the City Commission and management, and for filing with the Kansas Department of Administration, Division of Accounts and Reports and various governmental agencies. However, this report is a matter of public record and its distribution is not limited. May 22, 1997 Isit 234 South Main P.O. Box 1020 Ottawa, Kansas 66067 (913) 242 -3170 NO. AglerorGdeddert.HARTEREID Certified Public Accountants W. Keith Gaeddert Lucille L. Hinderliter Raymond E. Meyer, Jr. REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS Honorable Mayor and City Commissioners City of Salina, Kansas We have audited the general purpose financial statements of the City of Salina, Kansas as of and for the year ended December 31, 1996, and have issued our report thereon dated May 22, 1997. We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget Circular A -128, "Audits of State and Local Governments ". Those standards and OMB Circular A -128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.. In planning and performing our audit for the year ended December 31, 1996, we considered the City's internal control structure of the City of Salina, Kansas in order to determine our auditing procedures for the purpose of expressing our opinion on the City's general purpose financial statements and to report on the internal control strucure in accordance with OMB Circular A -128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated May 22, 1997. The management of the ;City of Salina, Kansas is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of au internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles and that federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure,'errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering federal financial assistance programs in the following categories: 140 Internal Administrative Controls General Provisions Political Activity Davis -Bacon Act Civil Rights Cash Management Reporting Requirements Allowable Costs Drug -free Workplace Specific Provisions Types of services allowed Eligibility Matching, level of effort and earmarking Special reporting Special tests Monitoring of subrecipients Claims for Advances and Reimbursements Amounts Claimed or Used for Matching For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk. During the year ended December 31, 1996, City of Salina, Kansas, had no major federal financial assistance programs and expended 78.02 percent of its total federal financial assistance under the following non - major federal financial assistance programs: Home Investment Partnership Program and the National Highway Traffic Safety Grant. We performed tests of controls, as required by OMB Circular A -128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with specific requirements, general requirements, and requirements governing claims for advances and reimbursements and amounts claimed or used for matching that are applicable to the aforementioned nonmajor programs. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. Our consideration of the internal control structure policies and procedures used in administering; federal financial assistance would not necessarily disclose all matters in the internal control structure that might be considered material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a federal financial assistance program 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 structure and is operations that we consider to be material weaknesses as defined above. This report is intended for the information of the City Commission and management, the Kansas Department of Administration, Division of Accounts and Reports, and various governmental agencies. However, this report is a matter of public record and its distribution is not limited. May 22, 1997 /�t& 'J ,:q't' i o ox"l 141 234 South Main P.O. Box 1020 Ottawa, Kansas 66067 (913) 242 -3170 Xt AglerorGdeddert.HARTERED Certified Public Accountants W. Keith Gaeddert Lucille L. Hinderliter Raymond E. Meyer, Jr. REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS ON COMPLIANCE WITH LAWS AND REGULATIONS BASED ON AN AUDIT OF GENERAL PURPOSE FINANCIAL. STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITINGSTANDARDS Honorable Mayor and City Commissioners City of Salina, Kansas We have audited the general purpose financial statements of the City of Salina, Kansas as of and 1.5or the year ended December 31, 1996, and have issued our report thereon dated May 22, 1997. We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget Circular A -128, "Audits of State and Local Governments ". Those standards and OMB Circular A -128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. Compliance with laws, regulations, contracts, and grants applicable to the City of Salina, Kansas is the responsibility of the City of Salina, Kansas' management. As part of obtaining' reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of the City's compliance with certain provisions of laws, regulations, contracts, and grants. However, the objective of our audit of the general purpose financial statements was not to provide an opinion on overall compliance with such provisions. ,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. This report is intended for the information of the City Commission and management, the KansaLs Department of Administration, Division of Accounts and Reports and various governmental agencies. However, this report is a matter of public record and its distribution is not limited. May 22, 1997 142 234 South Main P.O. Box 1020 Ottawa, Kansas 66067 (913) 242 -3170 AglerorGdeddert.HARTERED Certified Public Accountants W. Keith Gaeddert Lucille L. Hinderliter Raymond E. Meyer, Jr. REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS Honorable Mayor and City Commissioners City of Salina, Kansas We have audited the general purpose financial statements of the City of Salina, Kansas, as of and for the year ended December 31, 1996, and have issued our report thereon dated May 22, 1997. We have applied procedures to test the City of Salina, Kansas' compliance with the following requirements applicable to each of its federal financial assistance programs, which are identified in the Schedule of Federal Fnnancial Assistance, for the year ended December 31, 1996: Political Activity, Davis -Bacon Act, Civil Rights, Cash Management, Reporting Requirements, Allowable Costs, and Drug -free Workplace. Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits of State and Local Governments ". Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the City of Salina, Kansas' compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the City of Salina, Kansas, had not complied, in all material respects, with those requirements. This report is intended for the information and use of the City Commission and management, the Kansas Department of Administration, Division of Accounts and Reports and various governmental agencies. However, this report is a matter of public record and its distribution is not limited. May 22, 1997 143 234 South Main A lerGaeddert P.O. Box 1020 Ottawa, Kansas 66067 CHARTERED (913) 242 -3170 Certified Public Accountants W. Keith Gaeddert Lucille L. Hinderliter Raymond E. Meyer, Jr. REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS Honorable Mayor and City Commissioners City of Salina, Kansas We have audited the general purpose financial statements of the City of Salina, Kansas, as of and for the year ended December 31, 1996, and have issued our report thereon dated May 22, 1997. In connection with our audit of the general purpose financial statements of the City of Salina, Kansas, and with our consideration of the City of Salina, Kansas' control structure used to administer federal financial assistance programs, as required by Office of Management and Budget (OMB) Circular A -128, "Audits of State and Local Governments ", we selected certain transactions applicable to certain nonmajor federal financial assistance programs for the year ended December 31, 1996. As required by OMB Circular A -128, we have performed auditing procedures to test compliance with the requirements governing types of services allowed; eligibility; matching, level of effort; special reporting; special tests; monitoring of subrecipients; claims for advancements and reimbursements and amounts claimed or used for snatching that are applicable to those transactions. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the City of Salina, Kansas' compliance with these requirements. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements Jisted in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that City of Salina, Kansas, had not complied, in all material respects, with those requirements. This report is intended for the information and use of the City Commission and management, the Kansas Department of Administration, Division of Accounts and Reports and various governmental agencies. However, this report is a matter of public record and its distribution is not limited. May 22, 1997 / 4 , 4".w , 144 This page left blank intentionally.