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Audit - 1994CITY OF SALINA, KANSAS Comprehensive Annual Financial Report For the fiscal year ended December 31, 1994 Prepared by: Robert K. Biles Department of Finance and Administration CITY OF SALINA, KANSAS Comprehensive Annual Financial Report For the Fiscal Year Ended December 31, 1994 TABLE OF CONTENTS INTRODUCTORY SECTION Page Letter of Transmittal 1-7 GFOA Certificate of Conformance 8 Organizational Chart 9 List of Principal Officials 10 FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT 11 -12 GENERAL PURPOSE FINANCIAL STATEMENTS: Combined Balance Sheet -All Fund Types and Account Groups 13-14 Combined Statement of Revenues, Expenditures and Changes in Fund Balances -All Governmental Fund Types 15 Combined Statement of Receipts, Expenditures and Changes in Unencumbered Cash - Budget and Actual - Budgetary Basis - General Fund, Special Revenue Funds and Debt Service Funds 16-17 Combined Statement of Revenues, Expenses and Changes in Fund Equitys/Fund Balances - All Proprietary Fund Types, Similar Trust Funds and Discretely Presented Component Units 18 Combined Statement of Cash Flows -All Proprietary Fund Types and Similar Trust Funds 19 -20 Notes to the Financial Statements 21 -51 COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES GOVERNMENTAL TYPE FUNDS: General Fund: Comparative Balance Sheets 53 Comparative Statement of Revenue, Expenditures and Changes in Fund Balances 54 Schedule of Receipts, Expenditures and Changes in Unencumbered Cash - Budget and Actual - Budgetary Basis 55 -56 Special Revenue Funds: Combining Balance Sheet 59 -61 Combining Statement of Revenue, Expenditures and Changes in Fund Balances 62 -64 Schedules of Receipts, Expenditures and Changes in Unencumbered Cash - Budgeted Funds 65 -73 Non - Budgeted Funds 74 -81 Debt Service Fund: Comparative Balance Sheets 83 Comparative Statement of Revenues, Expenditures and Changes in Fund Balances 84 Schedule of Receipts, Expenditures and Changes in Unencumbered Cash - Budgetary Basis 85 Capital Project Funds: Combining Balance Sheet 87 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 88 Schedule of Receipts, Expenditures and Changes in Unencumbered Cash - Budgetary Basis (Non - Budgeted Funds) 89 PROPRIETARY FUNDS: Enterprise Funds Combining Balance Sheet 91 Combining Statement of Revenues, Expenses and Changes in Retained Earnings 92 Combining Statement of Cash Flows 93 Schedules of Receipts, Expenditures and Changes in Unencumbered Cash - Budgetary Basis Budgeted Funds 94-98 Non - Budgeted Funds 99 -100 PROPRIETARY FUNDS (continued) Internal Service Funds: Combining Balance Sheet 102 Combining Statement of Revenue, Expenses and Changes in Retained Earnings 103 Combining Statement of Cash Flows 104 Schedules of Receipts. Expenditures, and Changes in Unencumbered Cash - Budgeted and Actual - Budgetary Basis 105 -108 FIDUCIARY FUNDS: Trust and Agency Funds: Combining Balance Sheet 110 -111 Combining Statement of Revenues, Expenses and Changes in Retained Earnings - Nonexpendable Trust Funds 112 Combining Statement of Cash Flows - Nonexpendable Trust Funds 113 Combining Statement of Changes in Assets and Liabilities - All Agency Funds 114 -115 Schedules of Receipts, Expenditures and Changes in Unencumbered Cash - Budgetary Basis (Non- Budgeted Funds) 116 -122 ACCOUNT GROUPS: General Fixed Assets Comparative Statements of General Fixed Assets - By Source 1.24 Schedule of General Fixed Assets - By Function and Activity 1 -25 Schedule of Changes in General Fixed Assets - By Function and Activity 1 -26 STATISTICAL SECTION General Governmental Expenditures by Function 127 -128 General Governmental Revenues by Source 129 -130 General Governmental Tax Revenues by Source :131 Property Tax Levies and Collections :132 Assessed and Estimated Actual Value of Property 133 Property Tax Rates - Direct and Overlapping Governments 134 -135 Principal Taxpayers 136 Special Assessment Billings and Collections :137 Computation of Legal Debt Margin "138 Ratio of Net General Obligation Bonded Debt 139 STATISTICAL SECTION (continued) Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debt 140 Computation of Direct and Overlapping Bonded Debt 141 Revenue Bond Coverage - Water and Sewer Fund 142 Property value, construction and bank deposits 143 Demographic Statistics 144 INGLE AUDIT SECTION Independent Auditors' Report on Schedule of Federal Financial Assistance 145 Schedule of Federal Financial Assistance 146 Independent Auditors' Report On Internal Control Structure Based On An Audit of General 147 -148 Purpose Financial Statements Performed in Accordance with Government Auditing Standards Independent Auditors' Report On Compliance Based On An Audit Of General Purpose Financial Statements Performed In Accordance With Government Auditing Standards 149 Independent Auditors' Report On The Internal Control Structure Used in Administering Federal Financial Assistance Programs 150 -1.52 Independent Auditors' Report On Compliance With The General Requirements Applicable To Federal Financial Assistance Programs 153 Independent Auditors' Report On Compliance With Specific Requirements Applicable to Major Federal Financial Assistance Programs 154 -1155 Schedule Of Independent Auditors' Findings and Questioned Costs 166 INTRODUCTORY SECTION This page intentionally left blank June 20, 1995 DEPARTMENT OF FINANCE AND ADMINISTRATION CITY CLERK 300 West Ash Street • P.O. Box 736 Salina, Kansas 67402 -0736 Salina Robert K. Biles, C.P.A., Director • Judy D. Long, City Clerk ui7unec utt Telephone (913) 826 -7240 • FAX (913) 826 -7244 fillip tMB To the Citizens of the City of Salina, Kansas: The Comprehensive Annual Financial Report of the City of Salina, Kansas (the "City ") for the year ended December 31, 1994, 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 provides a full range of services construction and maintenance of infrastructure; recreational activities services and convention facilities. activities, the City also provides waste services; therefore, these a entity. Economic Condition and Outlook account groups of the City. The City including police and fire protection; streets, drainage facilities and other and cultural events; emergency medical In addition to general government water, wastewater, sanitation and solid ctivities are included in the reporting In 1994, the City experienced a year of solid growth in several areas and continued to solidify its standing as the regional trade center for north central and north west Kansas. Retail expansion continued to be significant, especially in the South Ninth Street corridor. A Target retail store, several popular restaurants and other smaller retail concerns, opened for business in 1994. All have enjoyed a good measure of success. 1 The demands on the housing industry continued unabated in 1994 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 116 new homes were started in 1994 with the pace expected to continue at this level or higher through 1995. In 1994, builders started eleven new subdivisions to help increase the availability of building lots. Four more are scheduled for completion in June 1995. Several industries in Salina are currently making major expansions to their facilities. REMA Bakeware, a maker of cooking pans and sheets, just completed a $1.8 million project which increased plant size by 700. Exide Corporation, a manufacturer of automotive batteries, recently completed an expansion and has begun another $8 million expansion. Already the largest automotive battery plant in the world, the expansion is expected to boost production by 25%. Employment is expected to increase by 98, bringing total employment to 780. Crestwood, Inc., a manufacturer of custom built cabinetry, began construction of a new 165,000 square foot manufacturing plant to replace their current 85,000 square foot facility. After the addition of 50 new jobs, total employment at the plant is expected to reach 180. Great Plains Manufacturing, a manufacturer of agricultural equipment, began construction on their 25,000 square foot corporate headquarters in late 1994. The company employs 1,200 people at several sites, primarily in Kansas, with their largest operations in Salina. In 1994, construction began on a 54,000 square foot, three story, medical office building adjacent to Asbury - Salina Regional Medical Center. The project is expected to be completed in July of 1995. Construction also began on a new 25,000 square foot, 49 room Super Eight Motel. Scheduled completion date is June 1995. Many of the major campus improvements for Kansas State University - Salina were completed in 1994. Total building additions, road improvements and other campus improvements exceeded $10 million. A private individual has agreed to build another 100 bed residence hall on campus to accommodate the demand for student housing. Completion for that project is set for early 1996. Major Initiatives The City completed the major improvements to Wastewater Treatment Plant Number 1. The project, which began in June 1992, included the addition of 10 miles of interceptor sewers, the updating of Plant Number 1 to EPA standards and the closing of a secondary wastewater plant. The $23,000,000 project was completed on schedule. The City continued its efforts to meet federal environmental regulations at its solid waste landfill. Construction of a lined cell, road system and scale system was completed and placed into service in early 1994. Landfill services have been extended to five surrounding counties with a sixth one under current consideration. The estimated useful life of the landfill is 40 to 60 years. In 1995, the City will complete the closure of the original landfill site and open another lined cell. In 1995, the City, Saline County and the State of Kansas will combine to 2 improve and widen Schilling Road. The $1,650,000 project will also address storm water drainage concerns in south Salina. The City's share of the project is $297,000. The City is also beginning a three year project to improve major roadways in the southwest part of the city. In late 1995, work will begin on a new interchange at 1-135 and Magnolia Street. Local funding of approximately $3,000,000 will be matched with federal funds to improve access to a major retail area of the city and to Kansas State University - Salina. Thereafter, work will progress to improve access to the Airport Industrial Park by improving Centennial Road and Schilling Road. In 1994, with the cooperation of the Kansas Department of Health and Environment, the City began addressing groundwater contamination in central Salina. The City's program is modeled after the award - winning Wichita program. The City began issuing releases to residential and commercial properties this year. Remediation of the contamination will be paid for from the Water and Sewer Fund. Annual appropriations for remediation projects is $500,000. The City's Capital Improvement Plan for 1995 -1999 itemizes projects totaling $31,329,000. The plan is updated each year. 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 fund: went from $4,475,137 at the end of 1993 to $6,209,178 at the end of 1994. Several factors contributed to this positive change. Sales tax collections increased by $619,000, an overall growth of 8.7 %. Collections of Municipal, Court fines grew by $447,258 due to increased enforcement and collection activities. Franchise fees received increased by $159,434. The City also established the rates needed to fund enterprise fund activities. Tipping fees for the landfill were set at $16 per ton effective May 1, 1994. Capital improvements in 1995 for the landfill will likely require an increase in rates in early 1996. 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. 3 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, 1994 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, 1994 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 both revenues and expenditures. General Government Functions Shown below are the December 31 actual budgetary basis fund balances in the city's tax supported funds for 1992, 1993 and 1994. Fund 1992 1993 _ 1994 General $2,184,753 $3,357,127 $4;,313,622 Employee Benefits 233,717 539,590 810,223 Utility 99,364 121,696 236,111 Special Liability 24,563 26,364 52,139 Bond and Interest 335,915 539,887 797,083 Fund Balance $2,878,312 $4,475,137 $6;,209,178 Operating expenditures tax supported funds $18,196,071 $16,693,296 $19,243,378 Fund balance as percent of operating expenditures 15.8% 26.8% 32.3% It should be noted that City payments for the Kansas State University- Salina renovation in 1992 and 1993 were $2,557,902 and $493,452, respectively. 2 The following table presents a summary of General Fund, Special Revenue Funds and Debt Service Fund GAAP basis revenues for the ,rears ended December 31, 1993 and 1994. Besides the revenue increases mentioned earlier, the City did, experience other revenue increases. Interest income increased $103,852 due to rising interest rates and the continued ability to invest funds in two year maturities. Intergovernmental revenues were also up significantly as the City received a Community Development Block Grant for housing rehabilitation which totalled $268,000. Law enforcement grants relating to drug and traffic enforcement increased by $192,930. 1994 1993 The following table presents a summary %of Fund, Special %of Revenue 1994 Total 1993 Total Taxes $16,153,904 62.6 $15,479,559 63.9 Intergovernmental 3,305,815 12.8 2,769,828 11.5 Charges for Services 3,089,651 12.0 3,174,444 13.1 Fines 1,020,116 3.9 574,958 2.4 Interest 548,655 2.1 444,853 1.8 Special Assessments 868,202 3.4 940,487 3.9 Other 833,689 3.2 827,201 3.4 Total Revenues $25,820,032 100.0 $24,211,330 100.0 Besides the revenue increases mentioned earlier, the City did, experience other revenue increases. Interest income increased $103,852 due to rising interest rates and the continued ability to invest funds in two year maturities. Intergovernmental revenues were also up significantly as the City received a Community Development Block Grant for housing rehabilitation which totalled $268,000. Law enforcement grants relating to drug and traffic enforcement increased by $192,930. 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, 1993 and 1994. 1994 1993 % of % of Expenditure 1994 Total 1993 Total General Government $ 1,069,325 4.4 $ 1,426,997 6.5 Public Safety 6,735,353 28.0 5,834,653 26.6 Public Works 1,322,977 5.6 1,386,714 6.3 Recreation 1,721,024 7.2 1,600,093 7.3 Cultural 379,777 1.6 346,677 1.6 Community Development 441,307 1.8 175,254 .8 Health & Welfare 525,026 2.2 173,122 .8 Bicentennial Center 1,720,509 7.2 1,968,806 9.0 Debt Service 2,772,819 11.5 2,902,019 13.2 Capital Outlay 2,796,288 11.6 1,558,158 7.1 Other 4,533,986 18.9 4,547,476 20.8 Total Expenditures $24,028,391 100.0 $21,919,969 100.0 Changes in expenditures may be attributed to four areas. Rapid improvement in the City's revenues allowed the City to utilize more pay -as- you -go financing of capital outlay projects. Over $1,200,000 of 1994 capital improvements were handled this way. Public Safety costs increased by $900,700 due to increased costs for personnel (Municipal Court and Police) and amounts charged by Saline County for housing City prisoners. Because of the housing rehabilitation grant, expenditures for Community Development increased by $263,000. These increases were partially offset by a decrease of $128,000 in the amount of interest the City paid on outstanding bonds. 5 In 1994, the city shifted expenses for the Health Department from the General Government area to the Health and Welfare area. Proprietary Operations The City has four enterprise operations: Water and Sewer, Golf Course, Solid Waste and Sanitation. Significant changes occurred in each. Water revenues increased in 1994 due to drier weather. The sewer revenue increase was the result of having a full year of revenues based on the July 1993 rate increase. Excellent weather boosted play at the Golf Course. Revenues increased over 23% in 1993. The City continued the process of updating the solid waste facility to meet subtitle D regulations. Rates were doubled in 1994 and went to a tonnage rate rather than volume. Sanitation rates were increased $1.00 per month in 1994 to pay for increased tipping fees at the landfill. 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 $750,000 reserve in this fund to provide adequate reserves should we experience heavy claims. At the end of 1994, fund equity was $373,960. 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 On January 1, 1994, the City issued $11,390,000 in revenue refunding bonds. This issue refunded a portion of the 1992 revenue bonds. Present value savings totalled $198,000 and future debt service was reduced by $435,000. Total revenue bonds outstanding at December 31., 1994 was $36,725,000. 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 policy for General Obligation bonds is to issue them for no more than 10 years. The City issued $1,175,000 of internal improvement bonds during 1994. Total bonds outstanding at December 31, 1994 was $11,495,000 with final maturity scheduled for October 1, 2004. One general obligation bond for $2,434,000 was issued in May 1995. Based upon December 31, 1994 General Obligation bonds outstanding, per capita debt is $271. The City is well below its maximum debt limit with over $60,000,000 in authority remaining. Temporary notes of $2,595,000 outstanding at December 31, 1994 will be retired through the issuance of general obligation bonds. Another $425,000 for landfill heavy equipment will be retired by April 1, 1997. 0 Cash Management In 1992, the State of Kansas granted cities increased investing authority. The City of Salina has established an investment policy that allows maturities for up to two years and investments in the State of Kansas Municipal Investment Pool. The City stresses a conservative investment ;policy which provides full collateralization of investments. At December 31, 1994, investments under the City's direct control were as follows: Investment Amount Percentage Municipal Investment Pool U.S. Government City of Salina Temporary Notes Certificates of Deposits Total Independent Audit $ 22,385 .10 20,481,965 94.20 1,037,552 4.77 200,967 .93 $21,742,869 100.00% 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 compiled with and the auditor's opinion has been included in this report. Acknowledgements The preparation of the Comprehensive Annual Financial Report on a timely basis was made possible by the dedicated, professional advise and effort of the Kennedy and Coe auditing team. Penny Allen in the City Clerks office performed the tedious, but important, word processing task. A special thank you needs to be given to Brenda Siemsen, Accounting Supervisor, who maintained our fixed assets records. Finally, preparation of this report would not have been possible without the support of the City Commission. Sincerely, Dennis M. issi ger Robert K. Biles City Manager Director of Finance & Administration 7 This page intentionally left blank Certificate of Achievement for Excellence in Financial Reporting Presented to City of Salina, Kansas For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 1993 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. ��� � �L Z-� President 10-1 Y G� Executive Director This page intentionally left blank City of Salina I CITIZENS CITY COMMLSSION John Divine, Mayor Peter Brungardt Evelyn Maxwell R. Abner Perney Kristin M. Seaton CITY MANAGER Dennis Kissinger Deputy City Manager Michael Morgan Municipal Court Risk Managemen Administration Keith Rawlings F7 City Prosecutor I Personnel Bruce Brown Mel Abbott Human Relations Will Burnett Fire Tom Girard Operations Fire Suppression EMS Rescue Administration EMS Billing Training Maintenance Prevention Code Enforcement Inspection/Plan Review Investigation Public Education SARA Title III General Services Frank Weinhold Streets Flood Works Cemetery Traffic Control Central Garage Sanitation Landfill General Improvements Municipal Court Judge I City Attorney Phil Shaffer Greg Bengtson I Eng. & Utilities Don Hoff Engineering Design Inspection Traffic Water & Sewer Utility Water Treat. & Dist. Sewage Coll./Treat. Pretreatment Jim Hill Operations Criminal Invest. Patrol Bureau Management Internal Affairs Drug/rech.Invest. Adndnistrative Records Bureau Communications Service Desk Training/Comm. Rel. Property/Evid. Lab Planning & Dev. Bicentennial Center Arts &Humanities Parks &Recreation Finance & Admin. Roy Dudark Phil Chamoff Martha Rhea Steve Snyder Bob Bites Planning Operations Museum Swimming Pools Data Processing Permits & Inspection Food & Beverage Arts Education Golf Course City Clerk Community Develop. Business/Picket Office Arts Services Neighborhood Centers Accounting Special Projects Parks Utility Accounting Recreation Treasurer April 1995 ' Contract Position 9 This page intentionally left blank CITY OF SALINA, KANSAS LIST OF PRINCIPAL OFFICIALS CITY COMMISSION Joseph A. Warner, Mayor Peter F. Brungardt, Commissioner Carol E. Beggs, Commissioner John Divine, Commissioner Evelyn Maxwell, Commissioner CITY STAFF Dennis M. Kissinger, City Manager Michael Morgan, Deputy City Manager Robert K. Biles, 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 Phil Chamoff, , 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 Abbott, Personnel Director Keith Rawlings, Risk Manager Greg Bengtson, City Attorney 10 This page intentionally left blank FINANCIAL SECTION This page intentionally left blank HOME OFFICE: P. O. BOX 1100 SALINA, KANSAS 67402 -1100 913 - 825 -1561 KENNEDY AND COE, LLC CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITORS' REPORT To the Mayor and The Board of City Commissioners City of Salina, Kansas: OFFICES IN KANSAS NEBRASKA OKLAHOMA COLORADO We have audited the accompanying general purpose financial statements of the City of Salina, Kansas as of and for the year ended December 31, 1994. 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 Housing Authority and Salina Airport Authority, 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 Housing Authority and Salina Airport Authority, 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 Office of Management and Budget 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 reports of other auditors provide a reasonable basis for our opinion. In our opinion, based on our audit and the reports of other auditors, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Salina, Kansas, as of December 31, 1994, and the results of its operations and the cash flows of its proprietary fund types and nonexpendable trust funds for the year then ended in conformity with generally accepted accounting principles. As discussed in Note 15 to the general purpose financial statements, the City changed its method of accounting for solid waste landfill closure and postclosure care costs as of January 1, 1994, as required by Statement No. 18 of the Governmental Accounting Standards Board. MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE 11 SECTION OF THE AICPA DIVISION FOR CPA FIRMS our audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund and account group financial statements, schedules, introductory, and statistical sections listed in the table of contents to this comprehensive annual financial report 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. The combining and individual fund and account group financial statements and schedules have been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, are fairly presented, in all material respects, in relation to the general purpose financial statements taken as a whole. The information included in the introductory and the statistical sections has not been subjected to the procedures applied in the audit of the general purpose financial statements, and accordingly, we express no opinion on such information. Respectfully submitted, Salina, Kansas �� Z- C May 25, 1995 C.P.A. Certified Public Accountant in Charge of and actively engaged in this audit. 12 GENERAL PURPOSE FINANCIAL STATEMENTS This page intentionally left blank This page intentionally left blank Assets and other debits Assets: Cash and Investments Accounts Receivable Taxes Receivable Special Assessments Receivable Due from Other Funds Notes Receivable Inventory and Prepaid Supplies Restricted Cash and Investments Fixed Assets Accumulated Depreciation Financing Leases Deferred Issuance Costs Other Debits: Amount to be Provided - Special Assessments Amount to be Provided Amount Available in Debt Service Total assets Liabilities, equity and other credits: Liabilities: Accounts Payable Retainage Payable Accrued Compensated Absences Due to Other Funds Meter Deposits Payable Deferred Compensation Benefits Payable Deferred Revenue Payable from Restricted Assets: Salina -KSU Sales tax liability Accrued Interest Payable Revenue Bonds Payable - Current Accounts and retainage Payable General Obligation Bonds and Temporary Notes Payable - Current Temporary Notes Payable General Obligation Bonds Payable Revenue Bonds Payable Landfill Closure and Postclosure Lease Payable Total Liabilities Equity and other credits: Investment in General Fixed Assets Contributed Capital Retained Earnings: Unreserved Fund Balances: Reserved for encumbrances Reserved for inventory Unreserved Fund Balance Total equity and other credits Total liabilities, equity and City of Salina Combined Balance Sheet Page 1 of 2 All Fund Types and Account Groups December 31, 1994 Governmental Fund Types Proprietary Fund Types Special Debt _ Capital Internal General Revenue Service Projects Enterprise Service $ 5,338,558 $ 2,279,842 $ 797,083 $ 322,454 $ 8,916,067 $ 1,053,744 424,211 180,266 0 0 1,357,860 24,850 985,014 3,641,589 1,880,913 (I 0 0 0 0 3,293,020 0 0 0 67,526 0 0 0 0 0 0 0 0 0 0 0 58,522 0 0 0 326,456 0 0 0 0 0 17,268,221 0 0 0 0 0 70,699,078 923,955 0 0 0 0 (22,340,691) (294,466) 0 0 0 C 0 0 0 0 0 C 605,407 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6,873,831 6,101,697 5,971,016 322,454 76,832,398 1,708,083 211,227 99,553 0 28,738 246,833 314,314 5,950 0 0 15,316 0 0 0 0 0 0 368,020 38,289 0 67,526 0 0 0 0 0 0 0 0 84,452 0 0 0 0 0 0 0 434,151 3,180,073 5,173,933 0 0 0 0 0 0 0 0 0 0 0 0 0 525,326 0 0 0 0 0 880,000 0 0 0 0 0 576,493 0 0 0 0 0 339,537 0 0 0 0 0 840,000 0 0 0 0 0 1,387,093 0 0 0 0 0 35,845,000 0 0 0 0 0 629,750 0 0 0 0 0 0 0 651,328 3,347,152 5,173,933 44,054 41,722,504 352,603 0 0 0 0 0 0 0 0 0 0 7,625,670 410,243 0 0 0 0 27,484,224 945,237 881,232 137,307 0 803,426 0 0 58,522 0 0 0 0 0 5,282,749 2,617,238 797,083 (525,026) 0 0 6,222,503 2,754,545 797,083 1,355,480 278,400 35,109,894 other credits $ 6,873,831 $ 6,101,697 The notes to the financial statements are an integral part of this statement. 13 $ 5,971,016 $ 322,454 $76,832,398 $ 1,708,083 Assets and other debits: Assets: Cash and Investments Accounts Receivable Taxes Receivable Special Assessments Receivable Due from Other Funds Notes Receivable Inventory and Prepaid Supplies Restricted Cash and Investments Fixed Assets Accumulated Depreciation - Fixed Assets Financing Leases Deferred Issuance Costs Other Debits: Amount to be provided - Special Assessments Amount to be provided Amount Available in Debt Service Total assets Liabilities, equity and other credits: Liabilities: Accounts Payable Retainage Payable Accrued Compensated Absences Due to Other funds Meter Deposits Payable Deferred Compensation Benefits Payable Deferred Revenue Payable from Restricted Assets: Salina - KSU Sales tax liability Accrued Interest Payable Revenue Bonds Payable - Current Accounts and retainage Payable General Obligation Bonds and Temporary Notes Payable - Current Temporary Notes Payable General Obligation Bonds Payable Revenue Bonds Payable Landfill Closure and Postclosure Lease Payable Total Liabilities Equity and other credits: Investment in General Fixed Assets Contributed Capital Retained Earnings: Unreserved Fund Balances: Reservation for encumbrances Reserved for inventory Unreserved Fund Balance Total equity and other credits Total liabilities, equity and other credits City of Salina Combined Balance Sheet All Fund Types and Account Groups December 31, 1994 Page 2 of 2 Fiduciary Account Groups Totals Totals Fund Type Primary Primary General General Government Entity Trust & Fixed Long -Term (Memorandum Component (Memorandum Agency Assets Debt Only) Units Only) $ 2,156,014 $ 0 $ 0 $20,863,762 $ 890,510 $21,754,272 184 0 0 1,987,371 107,076 2,094,447 0 0 0 6,507,516 0 6,507,516 0 0 0 3,293,020 0 3,293,020 0 0 0 67,526 0 67,526 0 0 0 0 3,893 3,893 0 0 0 384,978 12,607 397,585 0 0 0 17,268,221 1,469,707 18,737,928 0 20,656,836 0 92,279,869 22,102,146 114,382,015 0 0 0 (22,635,157) (6,259,527) (28,894,684) 0 0 0 0 2,408,665 2,408,665 0 0 0 605,407 98,951 704,358 0 0 3,293,020 3,293,020 0 3,293,020 0 0 9,594,673 9,594,673 0 9,594,673 0 0 797,083 797,083 0 797,083 2,156,198 20,656,836 155,141,317 13,684,776 134,307,289 20,834,028 535,564 0 0 1,436,229 171,141 1,607,370 0 0 0 211266 0 21,266 0 0 1,347,051 1,753,360 49,967 1,803,327 0 0 0 67,526 0 67,526 0 0 0 84,452 0 84,452 1,449,286 0 0 1,449,286 0 1,449,286 0 0 0 8,788,157 79,583 8,867,740 0 0 0 0 1,244,740 1,244,740 0 0 0 525,326 81,280 606,606 0 0 0 880,000 305,000 1,185,000 0 0 0 576,493 0 576,493 0 0 0 339,537 0 339,537 0 0 2,015,000 2,855,000 1,709,317 4,564,317 0 0 9,933,370 11,320,463 0 11,320,463 0 0 0 35,845,000 3,550,000 39,395,000 0 0 0 629,750 0 629,750 0 0 389,355 389,355 0 389,355 1,984,850 0 0 20,656,836 0 0 0 0 0 0 0 0 171,348 0 171,348 209656,836 13,6849776 66,96192C0 7,191,028 74,152,228 0 20,656,836 0 8,035,913 0 28,429,461 0 1,821,965 0 58,522 0 8,343,392 3,374,229 4,301,825 7,430,809 0 0 (1,4639863) 24,031,065 12,337,738 35,860,270 1,821,965 58,522 6,879,529 0 67,346,089 13,643,000 80,989,089 $ 2,156,198 $ 20,656,836 $ 13,684,776 $134,307,289 $ 20,834,028 $155,141,317 The notes to the financial statements are an integral part of this statement. 14 City of Salina Combined Statement of Revenues, Expenditures and Changes in Fund Balance All Governmental Fund Types and Discretely Presented Component Unit For the Fiscal Year Ended December 31, 1994 The notes to financial statements are an integral part of this statement. 15 Total Total Primary Reporting Governmental Fund Types Government Salina Entity Special Debt Capital (memorandum Housing (Memorandum General Revenue Service Projects Only) Authority Only) Revenues: Taxes $10,493,370 $ 4,272,158 $ 1,388,376 $ 0 $16,153,904 $ 0 $16,153,904 Intergovernmental 1,126,272 2,179,543 0 50,730 3,356,545 1,802,437 5,158,982 Charges for Service 1,462,955 1,626,696 0 0 3,089,651 103,874 3,193,525 Fines 1,019,966 150 0 0 1,020,116 0 1,020,116 Special Assessments 0 75,012 793,190 0 868,202 0 868,202 Interest 543,696 3,588 1,371 16,325 564,980 6,457 571,437 Reimbursements 37,854 9,033 0 132,802 179,689 0 179,689 Miscellaneous 619,886 157,000 9,916 0 786,802 10,138 796,940 Total Revenues 8,323,180 2,192,853 199,857 26,019,889 1 922,906 27,942,795 15,303,999 Expenditures: Current: General Government 1,068,758 567 0 0 1,069,325 0 1,069,325 Public Safety 6,425,378 209,337 0 0 6,634,715 0 6,634,715 Public Works 1,123,640 309,975 0 0 1,433,615 0 1,433,615 Recreation 1,721,024 0 0 0 1,721,024 0 1,721,024 Cultural 379,777 0 0 0 379,777 0 379,777 Community Development 131,803 309,504 0 0 441,307 1,040,934 1,482,241 Health and Welfare 440,609 84,417 0 0 525,026 0 525,026 Bicentennial Center 0 1,720,509 0 0 1,720,509 0 1,720,509 Other 512,132 4,021,854 0 0 4,533,986 74,114 4,608,100 Capital Outlay 1,658,788 1,137,500 0 2,201,156 4,997,444 0 4,997,444 Debt Service: Principal 0 0 2,163,130 0 2,163,130 0 2,163,130 Interest and fiscal charges 0 0 609,689 0 609,689 0 609,689 Temporary Note Payments 0 0 0 1,028,000 1,028,000 50,135 1,078,135 Total Expenditures 13,461,909 7,793,663 2,772,819 3,229,156 27,257,547 1,165,183 28,422,730 Revenues over (under) expenditures 1,842,090 529,517 (579,966) (3,029,299) (1,237,658) 757,723 (479,935) Other Financing Sources (Uses): Operating Transfers in 97,579 432,966 692,161 0 1,222,706 0 1,222,706 Operating Transfers out (675,994) (546,712) 0 0 (1,222,706) 0 (1,222,706) Bond and Temporary Note Proceeds 0 0 0 3,190,000 3,190,000 0 3,190,000 Lease Proceeds 389,355 0 0 0 389,355 0 389,355 Total Other Financing Sources (Uses) (189,060) (113,746) 692,161 3,190,000 3,579,355 0 3,579,355 Revenues and other financing sources over (under) expenditures and other_ financing uses 1,653,030 415,771 112,195 160,701 2,341,697 757,723 3,099,420 Fund Balance, January 1 4,569,473 2,338,774 539,887 262,700 7,710,834 1,152,644 8,863,478 Residual equity transfers in (out) 0 0 145,001 (145,001) 0 0 0 Fund Balance, December 31 $ 6,222,503 $ 2,754,545 $ 797,083 $11,962,898 $ 278,400 $10,052,531 $ 1,910,367 The notes to financial statements are an integral part of this statement. 15 This page intentionally left blank Revenues: Taxes Intergovernmental Charges for Service Fines Special Assessments Interest Reimbursements Miscellaneous Transfers In Total Receipts City of Salina Combined Statement of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis General, Special Revenue and Debt Service Funds For the Fiscal Year Ended December 31, 1994 12,814,290 15,295,243 2,480,953 Page 1 of 2 Special Revenue Funds Variance Favorable Budget Actual (Unfavorable) $ 4,020,703 $ 4,255 „701 $ 234,998 1,519,402 1,575„833 56,431 610,000 692 1,552 82,552 0 150 150 75,000 80 1,107 5,107 0 0 0 0 0 0 0 151„856 151,856 300,000 334„133 34,133 6,525,105 7,090,332 565,227 Expenditures: General funds 0 0 Variance General Government 1,123,099 Favorable Budget Actual (Unfavorable) $ 9,036,010 $10,484,740 $ 1,448,730 191189043 1,127,228 9,185 1,245,200 1,470,382 2259182 424,000 1,0049603 580,603 0 0 0 350,000 4529972 102,972 35,000 37,853 29853 48,500 189,599 1419099 557,537 527,866 (29,671) 12,814,290 15,295,243 2,480,953 Page 1 of 2 Special Revenue Funds Variance Favorable Budget Actual (Unfavorable) $ 4,020,703 $ 4,255 „701 $ 234,998 1,519,402 1,575„833 56,431 610,000 692 1,552 82,552 0 150 150 75,000 80 1,107 5,107 0 0 0 0 0 0 0 151„856 151,856 300,000 334„133 34,133 6,525,105 7,090,332 565,227 Expenditures: 0 0 0 197,682 General Government 1,123,099 1,067,982 55,117 0 Public Safety 5,875,364 6,436,515 (561,151) 0 Public Works 1,156,496 1,101,959 54,537 277,902 Recreation 1,676,256 1,720,923 (44,667) 0 Cultural 350,108 379,777 (29,669) 0 Community Development 133,266 131,702 1,564 0 Health and Welfare 426,970 440,609 (13,639) 86,938 Debt Service 0 0 0 0 Other 281,292 422,652 (141.360) 3,511,299 Capital Outlay 735,700 19842,342 (1,1069642) 819,600 Bicentennial Center 0 0 0 838,767 Transfers Out 765,784 794,287 (28,503) 1,253,876 Cash Reserve 2,354,011 0 2,354,011 872,579 Total Expenditures 14,878,346 14,338,748 539,598 7,660,961 0 0 0 0 197,682 80,220 0 0 0 0 0 0 84,417 2,521 0 0 3,322,757 188,542 1,099,545 (279,945) 848,036 (9,269) 1,245,809 8,067 0 872,579 6,798,246 862,715 Receipts over (under) expenditures (2,064,056) 9569495 3,020,551 (1,135,856) 292,086 1,427,942 Unencumbered Cash, January 1 2,064,056 3,357,127 1,293,071 Unencumbered Cash, December 31 $ 0 $ 4,313,622 $ 4,313,622 The notes to financial statements are an integral part of this statement. 16 1,135,856 1,530,048 394,192 $ 0 $ 1,822,134 $ 1,822,134 City of Salina Combined Statement of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis General, Special Revenue and Debt Service Funds For the Fiscal Year Ended December 31, 1994 Page 2 of 2 Expenditures: General Government Debt Service Funds 0 Public Safety 0 0 Variance Public Works 0 0 Favorable Recreation Budget Actual (Unfavor )le) Revenues: 0 0 0 Taxes $ 1,304,590 $ 1,388,376 $ 83,786 Intergovernmental 0 0 0 Charges for Service 0 0 0 Fines 0 0 0 Special Assessments 610,000 793,190 183,1.90 Interest 0 1,371 1,°'71 Reimbursements 0 0 0 Miscellaneous 30,000 9,916 (20,084) Transfers In 692,161 837,162 145,001 Total Receipts 2,636,751 3,030,015 393,264 Expenditures: General Government 0 0 0 Public Safety 0 0 0 Public Works 0 0 0 Recreation 0 0 0 Cultural 0 0 0 Community Development 0 0 0 Health and Welfare 0 0 0 Debt Service 2,847,250 2,772,819 74,L31 Other 0 0 0 Capital Outlay 0 0 0 Bicentennial Center 0 0 0 Transfers Out 0 0 0 Cash Reserve 150,000 0 150,000 Total Expenditures 2,997,250 2,772,819 224,431 Receipts over (under) expenditures (360,499) 257,196 617,695 Unencumbered Cash, January 1 360,499 539,887 179,__ °�88 Unencumbered Cash, December 31 $ 0 $ 797,083 $ 797,083 The notes to financial statements are an integral part of this statement. 17 Operating Revenue: Charges for Services Reimbursements Miscellaneous Interest Total Operating Revenues Operating Expenses: General Government Public Works Recreation Other Depreciation Total Operating Expenses Operating Income (Loss) Nonoperating Revenues (Expenses): Interest Miscellaneous (1984 refunding) Debt Service Loss on Disposition of Fixed Assets Mill levy Total Nonoperating Revenues (Expenses) Net Income (loss) Add Depreciation on Assets acquired through Federal Contributions Increase (decrease) in Retained Earnings Fund Equity, January 1 Prior Period Adjustment Change in Contributed Capital, Net City of Salina Combined Statement of Revenues, Expenses and Changes in Fund Equity /Fund Balances All Proprietary Fund Types, Similar Trust Funds and Discretely Presented Component Units For the Fiscal Year Ended December 31, 1994 Fund Equity, December 31 $35,109,894 $ 1,355,480 $ 171,348 $36,636,722 $ 7,430„809 $44,067,531 The notes to financial statements are an integral part of this statement. 1 Fudiciary Totals Totals Proprietary Fund Types Fund Types Primary Reporting Government Salina Entity Internal Nonexpendable (Memorandum Airport (Memorandum Enterprise Service Trust Only) Authority Only) $12,162,238 $ 1,947,478 $ 3,948 $14,113,664 $ 1,076,504 $15,190,168 0 6,643 0 6,643 0 6,643 113,840 3,206 0 117,046 5,914 122,960 0 0 5,364 5,364 0 5,364 9,312 14,242,717 1,082,418 15,325,135 12,276,078 1,957,327 0 917,604 0 917,604 0 917,604 6,974,105 0 0 6,974,105 0 6,974,105 540,554 0 0 540,554 0 540,554 0 645,889 280 646,169 838,069 1,484,238 1,694,309 71,110 0 1,765,419 619,820 2,385,239 280 10,843,851 1,457,889 12,301,740 9,208,968 1,634,603 9,032 3,398,866 (375,471) 3,023,395 3,067,110 322,724 866,686 0 0 866,686 272,885 1,139,571 93,864 0 0 93,864 0 93,864 (1,505,869) 0 0 (1,505,869) (272,388) (1,778,257) (20,588) (131,673) 0 (152,261) 0 (152,261) 0 0 0 0 301,829 301,829 (565,907) (131,673) 0 (697,580) 302,326 (395,254) 2,501,203 191,051 9,032 2,701,286 (73,145) 2,628,141 0 0 0 0 363,218 363,218 2,501,203 191,051 9,032 2,701,286 290,073 2,991,359 31,306,173 754,186 162,316 32,222,675 7,140,736 39,363,411 (482,250) 0 0 (482,250) 0 (482,250) 1,784,768 410,243 0 2,195,011 0 2,195,011 Fund Equity, December 31 $35,109,894 $ 1,355,480 $ 171,348 $36,636,722 $ 7,430„809 $44,067,531 The notes to financial statements are an integral part of this statement. 1 This page intentionally left blank City of Salina Combined Statement of Cash Flows All Proprietary Fund Types and Similar Trust Funds and Discretely Presented Component Units For the Fiscal Year Ended December 31, 1994 Proprietary Fund Types Internal Enterprise Service Fudiciary Totals Fund Types Primary Government: Nonexpendable (Memorandum Trust Only) Page 1 of 2 Totals Reporting Salina Entity Airport (Memorandum Authority Only) Cash Flows from Operating Activities: Operating income $ 3,067,110 $ 322,724 $ 9,032 $ 3,398,866 $ (375,471) $ 3,023,395 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation Payments to contractors (KSU) Basis of asset sold Provision for uncollectible accounts receivable Change in assets and liabilities: 1,694,309 0 0 (5,410) 71,110 0 0 0 Accounts Receivable (317,262) (11,850) Inventory and Prepaid Supplies 41,224 0 Customer Meter Deposits (975) 0 Accounts Payable 85,201 (158,449) Accrued liability for (5,410; 0 compensated absences 31,080 4,984 Deferred rent 0 0 Post Closure Liability 147,500 0 Total Adjustments 1,675,667 (94,205) 0 1,765,419 619,820 2,385,239 0 0 (2,000,385) (2,000,385) 0 0 5,247 5,247 0 (5,410; 0 (5,410) 13 (329,099; 542 (328,557) 0 41,224 10,579 51,803 0 (975; 0 (975) 0 (73,248] 3,064 (70,184) 0 36,064 0 36,064 0 0 28,624 28,624 0 147,500 0 147,500 13 1,581,475 (1,332,509) 248,966 19 Net Cash Provided (used) by Operating Activities 4,742,777 228,519 9,045 4,980,341 (1,707,980) 3,272,361 Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets (7,416,079) (32,768) 0 (7,448,847) (953,438) (8,402,285) Principal paid on maturing bonds and notes (966,870) 0 0 (966,870) (350,000) (1,316,870) Interest paid on bonds and notes (2,033,734) 0 0 (2,033,734) (264,879) (2,298,613) Miscellaneous income(1984 refunding) 93,864 0 0 93,864 0 93,864 Bond Proceeds 12,620,000 0 0 12,620,000 0 12,620,000 Contributed Capital 129,837 0 0 129,837 270,191 400,028 Issuance Costs (296,970) 0 0 (296,970) (2,064) (299,034) Temporary Notes Proceeds 865,000 0 0 865,000 10,061 875,061 Principal from financing leases 0 0 0 0 178,446 178,446 Interest received on financing leases 0 0 0 0 243,108 243,108 Proceeds from Property Tax 0 0 0 0 301,829 301,829 Net Cash used for Capital and Related Financing Activities 2,995,048 (32,768) 0 2,9629280 (566,746) 29395,534 Cash Flows from Investing Activities: Interest on Invested Cash 1,012,585 0 0 1,012,585 94,686 1,107,271 Sale of investments 0 0 0 0 40,000 40,000 Net Cash provided in _ investing activities 1,012,585 0 0 1,012,585 134,686 1,147,271 Net increase in Cash and Investments 8,750,410 195,751 99045 8,955,206 (2,140,040) 6,815,166 Cash and Investments, January 1 17,433,878 857,993 162,119 18,453,990 4,151,292 22,605,282 Cash and Investments, December 31 $26,184,288 $1,053,744 $ 171,164 $27,409,196 $ 2,011,252 $29,420,448 Cash and Investments is comprised of: Current $ 8,916,067 $1,053,744 $ 171,164 $10,140,975 $ 651,512 $10,792,487 Restricted 17,268,221 0 0 17,268,221 1,359,740 18,627,961 Total $26,184,288 $1,053,744 $ 171,164 $29,420,448 $27,409,196 $ 2,011,252 19 City of Salina Combined Statement of Cash Flows All Proprietary Fund Types and Similar Trust Funds For the Fiscal Year Ended December 31, 1994 Page 2 of 2 Noncash Capital and Related Financial Activities: Enterprise Funds Accounts Payable and Retainage Payable at December 31, 1994, includes $576,493 related to acquisition of fixed assets. Contributions of fixed assets to enterprise funds from other funds of the City and developers totalled $1,134,321 for the year ended December 31, 1994. Deferred bond issuance costs were amortized during 1994 as follows: Capitalized as interest Charged to debt service expense Total Internal Service Funds $ 6,216 35,005 $ 41,221 Contributions of fixed assets to internal service funds from other funds of the City totalled $410,243 for the year ended December 31, 1994. Nonexpendable Trust Reconciliation of December 31, 1994 cash and investments for Fudiciary Fund Types: Nonexpendable Trust Funds Agency Funds Total Fudiciary Funds $ 171,164 1,984,850 Salina Airport Authority During 1994, the authority junked equipment having a basis of $5,247 and traded equipment having a basis of $5,489. The notes to financial statements are an integral part of this statement. M This page intentionally left blank CITY OF SALINA Notes to the Financial Statements December 31, 1994 Note 1. Summary of Significant Accounting Policies The financial statements of the City of Salina, Kansas have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard- setting body for establishing governmental accounting and financial reporting principles. The more significant of the government's accounting policies are described below. A. Reporting Entity The City of Salina, Kansas is a municipal corporation governed by an elected, five - member commission. These financial statements present the City of Salina (the primary government) and its component units. In evaluating how to define the government, for financial reporting purposes, management has considered all potential component units. The decision to include a potential component unit in the reporting entity was made by applying the criteria set forth in GAAP. A component unit which meets any one of the following three criteria must be included in the financial reporting entity: The primary government appoints the voting majority of the board of potential component unit and a. is able to impose its will on the potential component unit and /or b. is in a relationship of financial benefit or burden with the potential component unit. 2. The potential component unit is fiscally dependent upon the primary government. 3. The financial statements would be misleading if data from the potential component unit were not included. Based upon the application of these criteria, the following is a brief review of each potential component unit addressed in defining the government's reporting entity. Included in the reporting entity: Salina Airport Authority. The Salina Airport Authority (the Airport Authority) was established by a special state act in 1965. The City of Salina appoints all the Airport Authority's governing body and is in a relationship of financial benefit or burden with the Airport Authority. The Airport Authority may not issue general obligation bonds or levy taxes without the approval of the City Commission. Airport Authority financial information included in this report is for the year ended December 31, 1994. 21 Salina Housing Authority. The Salina Housing Authority's (the Housing Authority) governing board is appointed by the City of Salina. The City of Salina is in a relationship of financial benefit or burden with the Housing Authority. The Housing Authority may not execute certain contracts, borrow money, issue bonds, or acquire or dispose of property without the approval of the City Commission. Housing Authority financial information included in this report is for the year ended June 30, 1994. Complete financial statements of the individual component units can be obtained from their respective administrative offices. B. Fund Accounting The government uses funds and account groups to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. A fund is a separate accounting entity with a self- balancing set of accounts. An account group, on the other hand, is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available financial resources. Funds are classified into three categories: governmental, proprietary and fiduciary. Each category, in turn, is divided into separate "fund types ". Governmental funds are used to account for all or most of a government's general activities, including the collection and disbursement of earmarked monies (special revenue funds), the acquisition or construction of general fixed assets (capital projects funds), and the servicing of general long -term debt (debt service funds) . The general fund is used to account for all activities of the general government not accounted for in some other fund. Proprietary funds are used to account for activities similar to those found in the private sector, where the determination of net income is necessary or useful to sound financial administration. Goods or services from such activities can be provided either to outside parties (enterprise :Funds) or to other departments or agencies primarily within the government (internal service funds) . Fiduciary funds are used to account for assets held on behalf of outside parties, including other governments, or on behalf of other funds within the government. Each Fiduciary Fund within the City is a non - expendable trust fund. Due to formal trust agreements, the government is under an obligation to maintain the trust principal. Agency funds generally are used to account for assets that the government holds on behalf of others as their agent. OW C. Basis of Accounting The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. All proprietary funds and nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included on the balance sheet. Fund equity (i.e., net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund -type operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets. The modified accrual basis of accounting is used by all governmental fund types and agency funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both 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 be used to pay liabilities of the current period. Expenditures are recorded when the related fund liability is incurred. Principal and interest on general long -term debt are recorded as fund liabilities when due. Those revenues susceptible to accrual are property taxes, special assessments, certain fines, interest revenue and charges for services. Local sales and gas taxes collected and held by the state at year end on behalf of the government also are recognized as revenue. Permits and licenses are not susceptible to accrual because generally they are not measurable until received in cash. The accrual basis of accounting is utilized by proprietary fund types and nonexpendable trust funds. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. The government 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 government 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 government has a legal claim to the resources, the liability for deferred revenue is removed from the combined balance sheet and revenue is recognized. D. Budgets Budgets are adopted on a basis consistent with Kansas State Statutes. Annual appropriated budgets are adopted for the general, debt service, internal service, enterprise and certain special revenue funds. All annual appropriations lapse at fiscal year end. Project- length financial plans are adopted for all capital projects funds. 23 Encumbrances represent commitments related to unperformed contracts for goods or services. Encumbrance accounting - under which purchase orders, contracts and other commitments for the expenditure of resources are recorded to reserve that portion of the applicable appropriation - is utilized in the governmental funds. Encumbrances outstanding at year end are reported as reservations of fund balances and do not constitute expenditures or liabilities because the commitments will be honored during the subsequent year. E. Pooled Cash and Investments Cash resources of the individual funds are combined to form a pool of cash and investments which is managed by the City (except for investments in the Kansas Municipal Investment Pool and deferred compensation investments purchased through ICMA Retirement Corporation) . Cash includes amounts in demand deposits. Investments of the pooled accounts consist primarily of certificates of deposit and U.S. government securities carried at cost, which approximates market. Interest income earned is allocated among funds based on average monthly cash balances and in accordance with the adopted budget. Investments in the Kansas Municipal Investment Pool are carried at cost. Investments of the Employees' Deferred Compensation Fund are recorded at market because the employer's liability to each participant is measured by the participants share of the market value of the plan assets. For purposes of the statements of cash flows, all cash and investments are reported as cash since each fund may deposit additional cash at any time and also may withdraw cash at any time without prior notice or penalty. F. Short -term Interfund Receivables/Payables During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as "due from other funds" or "clue to other funds" on the balance sheet. G. Inventories Inventories are valued at cost, which approximates market, using the first- in/first -out (FIFO) method. The costs of governmental fund -type inventories are recorded as expenditures when purchased. The balance of governmental fund -type inventories are offset by a reservation of fund balance. H. 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 F'rincipal 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 24 deficiencies in the Water and Sewer Principal and Interest Account. 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 (see Note 9). The following is a summary of the account balances at December 31, 1994. Account Water and Sewer Principal and Interest $ 615,517 Debt Service Reserve - 1990 Bonds 911,500 Debt Service Reserve - 1992 Bonds 1,340,000 Debt Service Reserve - 1993 Bonds 265,000 Debt Service Reserve - 1994 Bonds 106,600 Bond Escrow 11,, 259, 895 Extension and Bond Retirement 979,758 Unexpended Bond Proceeds for Water System Improvements 81,316 Filter Press Facility 1,014,155 Wastewater Plant 257,480 Solid Waste Construction 340,735 Interceptor Sewer 96,265 Total $ 17, 268, 221 I. Fixed Assets General fixed assets are not capitalized in the funds used to, acquire or construct them. Instead, capital acquisition and construction are reflected as expenditures in governmental funds, and the related assets are reported in the general fixed assets account group. All purchased fixed assets are valued at cost where historical records are available and at an estimated historical cost where no historical records are available. Donated fixed assets are valued at their estimated fair market value on the date received. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related fixed assets, as applicable. Public domain ( "infrastructure ") general fixed assets consisting of roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems are not capitalized, as these assets are immovable and of value only to the government. Assets in the general fixed assets account group are not depreciated. Depreciation of buildings, equipment and vehicles in the proprietary fund types is computed using the straight -line method over the estimated useful life of each asset. Interest is capitalized on proprietary fund assets acquired with tax - exempt debt. The amount of interest to be capitalized is calculated by offsetting interest expense incurred from the date of the borrowing until completion of the project with interest earned on invested proceeds over the same period. 25 J. Compensated Absences 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 Governemental Accounting Standards Board, Accounting for Compensated ,Absences, a liability is recorded for accumulating rights to receive sick pay benefits that are payable upon termination of employment. K. Long -term Obligations Long -term debt is recognized as a liability of a governmental fund when due. For other long -term obligations, only that portion expected to be financed from expendable available financial resources is reported as a fund liability of a governmental fund. The remaining portion of such obligations is reported in the general long -term debt account group. Long -term liabilities expected to be financed from proprietary fund operations are accounted for in those funds. L. Fund Equity Contributed capital is recorded in proprietary funds that have received capital grants or contributions from developers, customers or other funds. Reserves represent those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use. M. Deferred Issuance Costs In governmental fund types, issuance costs are recognized in the current period. Issuance costs for proprietary fund types are deferred and amortized over the term of the related bonds. Issuance costs are recorded as deferred charges. 26 N. 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 for expenditures /expenses initially made from it that are properly applicable to another fund, are recorded as expenditures /expenses in the reimbursing fund and as 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. O. Memorandum Only - Total Columns Total columns on the general purpose financial statements are captioned "memorandum only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations or cash flows in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Note 2. Legal Compliance - Budgets 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: a. Preparation of the budget for the succeeding calendar year on or before August 1st. b. Publication in local newspaper of the proposed budget and notice of public hearing on the budget on or before August 5th. c. Public hearing on or before August 15th, but at least ten days after publication of 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 tern days after publication the hearing may be held and the governing body may amend the budget at that time. The 1994 budget for Tourism and Convention was increased from $475,000 to $560,333 to reflect additional collections of transient guest taxes. 27 The legal level of budgetary control is at the fund level. Governing Body action is required to increase the total budget for any budgeted fund. Statutes prohibit expenditures in excess of the total amount of the adopted budget of expenditures of individual funds unless the Governing Body follows a formal budget republish procedure. Management may transfer amounts between line items within a budgeted fund without formally republishing the budget. 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 and agency funds and the following funds: Special Revenue Funds - Certain of the special revenue funds are not budgeted since their revenues are designated for a special purpose or the fund represents a clearing account. These are Bicentennial Center Event, HUD Community Development, Community Development Revolving, Heritage Commission, Fair Housing, Special Law Enforcement, Police Grants and Traffic Safety Grant. Water and Sewer Principal and Interest Account and Bond Reserve Accounts - These funds are not budgeted since receipts and expenditures are in accordance with requirements of applicable bond issues. Solid Waste Construction - This fund is not budgeted since receipts and expenditures are in accordance with requirements of a bond issue. Special Revenue Funds which must be budgeted are the Employee Benefit, Utility, Special Liability, Business Improvement District, Tourism and Convention, Special Parks, Special Alcohol, Special Gas Tax and Bicentennial Center funds. Combined actual operations (budgetary basis) compared to budget for proprietary fund types for the year 1994 are as follows: Enterprise Funds Budget Actual Variance Receipts Charges for services $11,720,000 $12,083,048 $ 363,048 Interest 244,000 373,010 129,010 Reimbursements 200 920 720 Miscellaneous 103,300 190,954 87,654 Intergovernmental 0 125,800 125,800 Bond and Temporary Note Proceeds 250,000 1.2,742,150 12,492,150 Total Receipts 13,198,382 Expenditures Sub'ect to Budget public Works 6,676,859 6,258,462 418,397 Recreation 492,059 521,327 (29,268 Debt service 2,400 235,347 232,947 Capital outlay 1,940,150 2,069,375 129,225 Transfers out 3,178,367 3,085,438 92,929 Cash reserve 5,636,887 0 5,636,887 Total Expenditures - Subject to Budget 17,926,722 12,169,949 5,756,773 Not Subject to Budget -from bond proceeds Transfer to bond excrow and bond issue costs 0 11,363,557 (11,363,557 Capital Outlay 0 1,057,697 (1, 057 , 697 Total Expenditures - ) Receipts over (under) expenditures (5,609,222) 924,679 6,533,901. Unencumbered cash, January 1 51609,222 7,084,509 1,475,287 Unencumbered cash, December 31 $ , ----- - - - - -- ----- - - - - -- ----- - - - - -- 29 Internal Service Funds Receipts Charges for services Reimbursements Transfers in Miscellaneous Total Receipts Expenditures General government Other Capital outlay Transfers out Cash reserve Total Expenditures Budget Actual Variance $ 945,035 $ 794,420 $ (150,615) 0 6,643 6,643 1,153,058 1,153,058 0 0 3,206 3,206 943,286 1,199,717 788,080 634,524 168,500 35,259 9,192 9,192 985,925 0 ,83 1, (256,431) 153,556 133,241 0 985,925 Receipts over (under) expenditures ( � —759= Unencumbered cash, January 1 796,890 667,634 (129256) Unencumbered cash, December 31 Note 3. Budgetary Reconciliation The actual data resented in the Combined Statement of Receipts, Expenditures, and Phanges in Unencumbered Cash - Budgetary Basis differ from the data in the Combined Statement of Revenues, Expenditures and Changes in Fund Balances, which is presented on the GAAP basis. The following reconciliations are presented to provide a correlation between the different bases of reporting. Revenues (GAAP basis) Add operating and residual equity transfers Adjustment for accrued deferred revenue Nonbudgeted funds Receipts (budgetary basis) Expenditures (GAAP basis) Add operating and residual equity transfers Adjust for encumbrances Nonbudgeted funds Decrease inventory Decrease in accrued expense Lease Obligation Expenditures (budgetary basis) 30 Special Debt General Revenue Service Fund Funds Fund 97,579 334,133 837,162 (106,335) (31 ,817 0 0 (1,$35,1643 0 $15,295,2 $ 79—,= ' , $13,461,909 $ 7,793,663 $ 2,772,819 675,994 546,712 0 615,369 36,071 0 0 (1,595,292) 0 (26,043) 0 0 874 17,092 0 (389,355) 0 0 1 The actual data presented in Note 2 for Proprietary Fund Types differ from the data in the Combined Statement of Revenues, Expenses and Changes in Retained Earnings for Proprietary Fund Types. The following reconciliation is presented to provide a correlation between the different bases of reporting. Internal Enterprise Service Funds Funds Net income (GAAP basis) 2,S01,203 �--191, 051 Additions: Depreciation 1,694,309 71,110 Amortization of bond issue costs 41,221 0 Increase in accrued compensation 31,081 5,096 Increase in other accrued expenses 147,500 0 Bond proceeds 12,620,000 0 Contributed Capital 0 (113) ( Intergovernmental) 1,784,768 0 Temporary Note Proceeds 865,000 0 Decrease in encumbrances 2,164,675 3,059 Nonbudgeted Funds 434,211 0 Increase in Accounts Payable 18,116 0 Decrease in inventory & Prepaid supplies 41,224 0 Increase in Interest Payable 102,545 0 Loss on disposition of assets 20,588 131,774 Deductions: Decrease in payables (31,909) 0 Capital outlay (7,616,128) (30,994) Capitalized interest -net (524,160 ) 0 Debt service - principal (966,870) 0 Increase in encumbrances 0 (215,650) Decrease in accrued compensation 0 (113) Decrease in meter deposits payable (975) 0 Increase in accounts receivable (844,854) 0 Bond issuance costs (296,971) (76,698) Bond Escrow purchase (11,089,308) 0 Net escrow interest revenue (170,587) 0 Receipts over (under) expenditures (budgetary basis) $ 924,679 $ 78,635 31 Note 4. Deposits and Investments A. City of Salina Deposits. At year end, the carrying amount of the government's deposits was $3,880,900 and the bank balance was $4,575,671. All of the bank balance was covered by federal depository insurance or by collateral held by the government's agent in the government's name. State statutes require that collateral be pledged in an amount equal to or greater than 100% of the market value of deposits and such collateral be held in the City's name by (1) a financial institution other than the pledging financial institution or (2) the Federal Reserve Bank. Investments. State Statutes authorize the generally in: (1) Temporary notes or no -fund warrants (2) Time deposits, open accounts or maturities of not more than two years, (3) Repurchase agreements. city to invest cash balances issued by the City of Salina, certificates of deposits with and The following investment options are available if eligible financial institutions cannot or will not make the investments described in (2) above available at interest rates equal to or greater than the statutory interest rate. (1) In U.S. Treasury Bills or notes with maturities not exceeding two years, (2) In the municipal investment pool operated by the State Treasurer, or (3) With trust departments of commercial banks which have offices located in Salina. State statutes allow investment of the proceeds of bonds and temporary notes in the following in addition to those otherwise permitted by state law: (1) U. S. Government and agency obligations. (2) Time deposits with banks and trust companies in Saline County. (3) FNMA, FHLB and FHLMC obligations. (4) Collateralized repurchase agreements. (5) Investment agreements with financial institutions including broker /dealers whose obligations are rated in one of the three highest rating categories by either Moody's or Standard & Poors. (6) Mutual funds whose portfolio consists entirely of obligations of the U.S. Government , U.S. Government agencies, FNMA, FHLB and FHLMC. (7) Certain Kansas municipal bonds. All assets of the deferred compensation plan (Section 457 Plan) are held and invested by ICMA Retirement Corporation. 32 The government's investments can be categorized as either (1) insured or registered, or securities held by the government or its agent in the government's name, (2) uninsured and unregistered, with securities held by the counterparty's trust department or agent in the government's name or (3) uninsured and unregistered, with securities held by the cou.nterparty or by its trust department or agent but not in the government's naute. The following is a summary of investments by category at December 31, 1994. Two funds, Police Grants and Traffic Safet Grant, experienced overdraws on their share of the pooled cash account of 5,010 and $62,516, respectively. The difference between the carrying amount of the cash pool and the equity displayed in the balance sheet is summarized below: Carrying amount - Cash Pool $38,199,509 Less: Fund overdraws 67,526 Balance sheet equity $38,131,983 B. Salina Airport Authority Cash and investments for the Salina Airport Authority consist of the following: Cash Current Restricted Total Cash Investments restricted Deferred compensation plan assets Total Cash and Investments $ 651,512 1,359,740 2,011,252 60,000 49,967 2,121,219 33 Categories Carrying Market 1 2 3 Amount. Value U. S. Government Securities $20,481,965 $ 0 $ 0 $20,481,965 $20,141,706 Temporary notes 1,037,552 0 0 1,037,552 1,037,552 $21,519,517 $ 0 $ 0 21,519,51.7 21,179,258 Deferred Compensation Investment 1,449,2516 1,449,286 Municipal Investment Pool 22,385 22,385 Bond Escrow 11,259,895 10,065,052 Total Investments $34,251,083 $32,715,981 Two funds, Police Grants and Traffic Safet Grant, experienced overdraws on their share of the pooled cash account of 5,010 and $62,516, respectively. The difference between the carrying amount of the cash pool and the equity displayed in the balance sheet is summarized below: Carrying amount - Cash Pool $38,199,509 Less: Fund overdraws 67,526 Balance sheet equity $38,131,983 B. Salina Airport Authority Cash and investments for the Salina Airport Authority consist of the following: Cash Current Restricted Total Cash Investments restricted Deferred compensation plan assets Total Cash and Investments $ 651,512 1,359,740 2,011,252 60,000 49,967 2,121,219 33 Kansas statutes authorize the Authority to invest in United States Obligations, secured repurchase agreements, certificates of deposit, time deposits and open accounts. The carrying amount of deposits and investments by type of investment at December 31, 1994 are as follows: Carrying Value Cash deposits $2,011,252 Certificates of deposit 60,000 Total Deposits 2,071,252 Deferred compensation plan assets 49,967 Total Deposits and Investments $2,121,219 Deposits of the Authority with financial institutions at December 31, 1994 are categorized by credit risk as follows: Carrying Bank Value Balance Cash on deposit insured by federal deposit insurance corporation $ 300,000 $ 300,000 Collaterized with securities held by pledging financial institution in Authority's name 1,771,202 1,803,690 2,071,202 2,103,690 Cash on hand 50 0 2,071,252 $2,103,690 ---- - - - - -- ---- - - - - -- ---------- ---- - - - - -- The Authority's deposits are entirely covered by federal depository insurance or by collateral held by pledging financial institutions in the Authority's name. Investment transactions made during the year ended December 31, 1994, were limited to secured repurchase agreements and deferred compensation plan investments. 34 Note 5. Receivables Receivables at December 31, 1994 consist of the following: In accordance with governing State statutes, property taxes levied during the current year are a revenue source to be used to finance the budget of the ensuing year. Taxes are assessed as of January 1 and become a lien on the property on November 1 of each year. The County Treasurer is the tax collection agent for all taxing entities within the County. Property owners have the option of paying one -half or the full amount of the taxes levied on or before December 20 during the year levied with the balance to be paid on or before June 20, of the ensuing year. State statutes prohibit the County Treasurer from distributing taxes collected in the year levied prior to January 1 of the ensuing year. Consequently, for revenue recognition purposes, the taxes levied during the current year are not due and receivable until the ensuing year. At December 31, such taxes are a lien on the property and are recorded as taxes receivable, net of anticipated delinquencies, with a corresponding amount recorded as deferred revenue on the balance sheet of the appropriate funds. 35 Trust Special Debt Capital Internal and General Revenue Service Projects Enterprise Service Agency Total Receivables: Interest $ 230,713 $ 0 $ 0 0 $ 46,867 0 $184 $ 277,764 Taxes 992,004 3,657,623 1,885,730 0 0 0 0 6,535,357 Accounts 377,168 87,821 0 0 743,834 0 0 1,208,823 Loans 0 11,760 0 0 0 0 0 11,760 Special Assessments 0 0 3,369,711 0 0 0 0 3,369,711 Deposit 0 0 0 0 0 24,850 0 24,850 Intergovernmental 0 91,750 0 0 646,500 0 0 738,250 Gross Receivables 1,599,885 3,848,954 5,255,441 0 1,437,201 24,850 184 12,166,515 Less: Allowance for uncollectibles 190,660 27,099 81,508 0 79,341 0 0 378 608 Net Total Receivables $ 1,409,225 $ 3,821,855 $ 5,173,933 $ 0 $1,357,860 $ 24,850 $184 $11,787,907 In accordance with governing State statutes, property taxes levied during the current year are a revenue source to be used to finance the budget of the ensuing year. Taxes are assessed as of January 1 and become a lien on the property on November 1 of each year. The County Treasurer is the tax collection agent for all taxing entities within the County. Property owners have the option of paying one -half or the full amount of the taxes levied on or before December 20 during the year levied with the balance to be paid on or before June 20, of the ensuing year. State statutes prohibit the County Treasurer from distributing taxes collected in the year levied prior to January 1 of the ensuing year. Consequently, for revenue recognition purposes, the taxes levied during the current year are not due and receivable until the ensuing year. At December 31, such taxes are a lien on the property and are recorded as taxes receivable, net of anticipated delinquencies, with a corresponding amount recorded as deferred revenue on the balance sheet of the appropriate funds. 35 Note 6. Fixed Assets The following is a summary of changes in the general fixed assets account group during the fiscal year: The following is a summary of proprietary fund -type fixed assets at December 31, 1994. Balance $ 339,329 Funds Balance $ 514,050 January 1 1,983,984 Water Plant & Equipment December 31 Sewage Plant & Equipment 1994 Additions Retirements 1994 Land $ 2,501,353 $ 450 $ 0 $ 2,501,803 Land Improvements 174,289 308,132 0 482,421 Buildings 10,455,031 23,778 0 10,478,809 Equipment 3,878,615 521,558 244,002 4,156,171 Vehicles 32020,071 319,780 302,219 32037,632 Total $20,029,359 $1,173,698 $ 546,221 $20,656,836 The following is a summary of proprietary fund -type fixed assets at December 31, 1994. Internal Service _ Funds $ 0 0 0 0 22,072 901,883 _ 0 923,955 294.466 $ 629,489 The City has entered into contractual commitments totaling $1,827,702 to complete certain projects included in Construction in Progress at December 31, 1994. By Fund, they total: Solid Enterprise $ 339,329 Funds Land $ 514,050 Land Improvements 1,983,984 Water Plant & Equipment 28, 874, 626 Sewage Plant & Equipment 34, 089, 749 Other Buildings 395,791 Other Vehicles & Equipment 3,233,798 Construction in Progress 1,607,080 Water 70,699,078 Less Accumulated Depreciation 22, 340, 691 Net Fixed Assets $ 48,358,387 Internal Service _ Funds $ 0 0 0 0 22,072 901,883 _ 0 923,955 294.466 $ 629,489 The City has entered into contractual commitments totaling $1,827,702 to complete certain projects included in Construction in Progress at December 31, 1994. By Fund, they total: Solid Waste - Landfill Improvements $ 339,329 Water & Sewer - Interceptor Sewer 96,382 Water & Sewer - Sewer Plant Construction 478,572 Water & Sewer - Water System Improvements 35,709 Water & Sewer - Filter Press Facility 877,710 Total $1,827,702 In proprietary funds, the following estimated useful lives are used to compute depreciation: Utility Plant & Buildings Equipment and Vehicles 36 20 -50 Years 5 -20 Years Note 7. Capitalization of Interest Interest costs incurred to bring certain assets in proprietary funds to the condition and location necessary for their intended use are capitalized as part of the historical cost of acquiring the assets. Additionally, in situations involving the acquisition of certain assets financed with the proceeds of tax - exempt borrowing, any interest earned on related interest - bearing investments from such proceeds are offset against the related interest costs in determining either capitalization rates or limitations on the amount of interest costs to be capitalized. A summary of interest cost of the proprietary funds by fund for the year 1994 follows: Total interest cost Capitalized interest cost Interest expense Water & Sewer $2,078,065 602,295 1,475,770 Capitalized interest cost $ 602,295 Related interest earned on unexpended bond proceeds whose use is limited 136,345 Net Interest Cost Capitalized 465,950 Note. 8. Risk Management Golf Solid Waste Course $ 96,917 $ 2,518 69,336 0 27,581 2,518 $ 69,336 $ 0 11,126 0 58,210 $ 0 The government 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. During fiscal year 1994, a total of $299,701 was paid in benefits and administrative costs. An excess coverage insurance policy covers individual claims in excess of $250,000 ($350,000 for accidents involving employees classified as policemen or firemen) . Incurred but riot reported claims of $234,429 have been accrued as a liability based primarily upon subsequent payments. Interfund premiums are reported as quasi- external interfund transactions. 37 Note 9. Long -term Debt A. City of Salina General Obligation Bonds. The government issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for general government activities only. General obligation bonds have been issued to refund only general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the government. These bonds generally are issued as 10 year serial bonds, except for refunding issues, with approximately equal amounts of principal maturing each year. General obligation bonds currently outstanding are as follows: Final Maturity Date Purpose Interest Rate 1986 Street and Utilities 5.40 - 5.70 % 1987 Downtown Redevelopment 6.25 - 6.65 % 1988 Internal Improvements 6.25 - 6.375% 1989 Internal Improvements 5.90 - 6.20 % 1990 Broadway Overpass 5.75 - 6.15 % 1991 Internal Improvements 5.25 - 6.25 % 1991 Street and Utilities 5.4 - 7.40 % 1991 Crawford Street 4.05 - 6.50 % 1992 Crawford Street 3.75 - 5.90 % 1992 Refunding Bonds 3.50 - 4.90 % 1993 Internal Improvements 3.40 - 5.00 % 1993 Internal Improvements 3.50 - 5.50 % 1994 Internal Improvements 4.70 - 6.50 % Final Maturity Date Amount Dec 1, 1996 $ 530,000 Dec 1, 1997 1,500,000 Dec 1, 1998 390,000 Dec 1, 1999 575,000 Dec 1, 2000 270,000 Oct 1, 2001 910,000 Oct 1, 2001 980,000 Oct 1, 2001 1,245,000 Oct 1, 2002 1,000,000 Apr 1, 1996 600,000 Oct 1, 2003 1,700,000 Oct 1, 2003 620,000 Oct 1, 2004 1,175,000 $11,495,000 Annual debt service requirements to maturity for general obligation bonds, including interest of $2,263,408 are as follows: Fiscal Year Ending December 31 Amount 1995 $ 3,037,997 1996 2,616,374 1997 2,076,966 1998 1,472,801 1999 1,315,759 Thereafter 3,238,511 13,758,408 0*3 Revenue Bonds. The government also issues bonds where the government pledges income derived from the acquired or constructed assets to pay debt service. Revenue bonds outstanding at December 31, 1994, are as follows: Purpose Water & Sewage System Series 1990A Refunding Water & Sewage System Series 1990B Water & Sewage System Series 1992 Water & Sewage System Series 1993 Water & Sewage System Series 1994 Refunding Water & Sewage System Series 1994 - B Interest Rates 6.1 - 7.0 % 7.0 - 7.1 % Final Maturity Date Amount Oct. 1, 2005 $ 4,585,000 Oct. 1, 2008 2,210,000 5.4 - 7.4 % Oct. 1, 2012 14,200,000 4.5 - 6.5 % Oct. 1, 2013 3,110,000 4.3 - 5.25% Sept 1, 2012 11,390,000 5.1 - 7.10% Oct. 1, 2014 1,230,000 `36,725,000 Revenue bond debt service requirements to maturity, including $23,948,642 of interest are as follows: Fiscal Year Ending December 31 Amount 1995 $ 3,033,563 1996 3,047,718 1997 3,041,508 1998 3,040,723 1999 3,029,668 Thereafter 45,480,462 Total $60,673,64-2 The City has established certain reserve accounts pursuant to the bond ordinances authorizing the issuance of Combined Water and Sewage System Revenue Bonds, Series 1990B the Combined Water and Sewerage System Improvement Revenue Bonds, Series 1992, the Combined Water and Sewerage System Improvements Revenue Bonds, Series 1993 and the Combined Water and Sewerage System Improvement Revenue Bonds, Series 1994 -13, to provide funds for the retirement of the bonds and payment of interest thereon and for making replacements to the system in the event other funds are not available. The pledge of gross revenues of the Water and Sewer Department to secure payment of the bonds is subordinate to a similar pledge to secure payment of certain defeased Water and Sewer revenue bonds. 39 The amounts required to be maintained in the reserve accounts established by the bond ordinance authorizing issuance of the 1990B, 1992, 1993 and 1994 -B bonds have been provided and the total revenues of the water and sewerage system appear sufficient to meet the requirements of the ordinance. Temporary Notes. Kansas Statutes permit the issuance of temporary notes to finance certain capital improvement projects which will be refinanced with general obligation bonds. Temporary notes outstanding at December 31, 1994, are payable as follows: Date Issued Interest Rate Due Date Amount Apr. 1, 1994 4.50 % Dec. 31, 1995 $1,035,000 Apr. 1, 1994 4.70 % Apr. 01, 1995 95,000 Apr. 1, 1994 4.60 % Apr. 01, 1996 95,000 Apr. 1, 1994 4.375% Apr. 01, 1997 95,000 Aug. 1, 1993 3.24 % Aug. 01, 1995 70,000 Aug. 1, 1993 3.24 % Aug. 01, 1996 70,000 July 1, 1994 4.13 % Dec. 31, 1996 460,000 Oct. 1, 1994 4.60 % Dec. 31, 1995 580,000 Nov. 1, 1994 4.83 % June 30, 1996 520,000 020,000 Change in Long -Term Debt. The following is a summary of long-term debt transactions for the year ended December 31, 1994. Outstanding, January 1 New Debt Issued or Acquired 1994 Internal Improvements 1994 Water & Sewer Refunding 1994 -B Water & Sewer Temporary Notes Net Change in Accrued Compensation Computer Lease Bonds Retired Notes Retired Outstanding, December 31 U11 General Long -term Debt Account Group General Capital obligation Temporary Accrued Proprietary Lease Bonds Notes Compensation Totals Fund Types $ - $10,921,500 $1,028,000 $ 1,238,828 $13',188,328 $26,773,500 1,175,000 - - 1,175,000 - - - - 11,390,000 - - - - 1,230,000 2,015,000 - 2,015,000 865,000 - - - 108,223 108,223 - 389,355 - - - 389,355 - - (2,163,130) - - (2,163,130) (896,870 (1,028,000) - (1,028,000) (70,000 $ 389,355 $ 9,933,370 $2,015,000 $1,347,051 $13,684,776 $39,291,630 In prior years, the City defeased certain general obligation and revenue bonds by placing the proceeds of new bonds and cash and certain investments in irrevocable trusts to provide for all future debt service payments on the old bonds. Accordingly, the trust department assets and the liability for the defeased bonds are not included in these financial statements. On December 31, 1994, a total of $650,000 of general obligation and $9,986,000 of revenue bonds are considered defeased. The City issued $11,390,000 of Combined Water and Sewerage System Revenue Refunding Bonds, Series 1994, dated January 1, 1994 to provide funds to establish an escrow account for the payment of the principal only of the callable portion of the City's outstanding Water and Sewage System Improvement Revenue Bonds, Series 1992 (the "Refunded Bonds ") . The Refunded Bonds in the amount of $11,045,000 will be called on their earliest optional redemption date, October 1, 2000, and redeemed at such time. Payment of interest on the Refunded Bonds will not be provided for with funds from the escrow account and will be payable by the City up to and including the date the Refunded Bonds are called and redeemed, and thus the Refunded Bonds are not considered defeased. Pending redemption of the Refunded Bonds, interest on the 1994 Refunding Bonds from January 1, 1994 to and including September 1, 2000 will be paid from the escrow established with proceeds from the sale of the 1994 Refunding Bonds. This crossover refunding transaction was undertaken in order to achieve interest cost savings and reduce periodic debt service payments. Capital Lease. The City leases an IBM AS/400 computer system through capital leasing arrangements in the governmental and internal service fund types. The assets are recorded in the Data Processing internal service fund and are treated as contributed capital; the lease obligation is recorded in the general long term debt account group as lease payments are to be made with general funds. The computer system was placed in service late in December 1994, thus no amortization is included for 1994. The total cost of the computer equipment acquired was $389,355. The future minimum lease obligations as of December 31, 1994, were as follows: Year Ending December 31 1995 1996 1997 Total minimum Less: Amount Present value Minimum Lease Payments $142„340 142 „340 142.340 lease payments 427.,020 representing interest 37.665 of minimum lease payments $389,355 41 B . Salina Airport Authority Long -term debt outstanding at December 31, 1994, follows: Amount Building revenue bonds series 1985, originally issued December 1, 1985, due in annual installments increasing from $110,000 for 1992 and 1993 to $130,000 in 1995, plus interest at 80% of the base lending rate of The National Bank of America, Salina Kansas. $ 130,000 General obligation economic development bonds series 1990A, originally issued July 1, 1990 due in annual installments increasing from $45,000 in 1992 to $175,000 in 2010 plus interest ranging from 6.4% to 8.375% 1,705,000 General obligation economic development bonds series 1990B, originally issued October 1, 1990 due in annual installments increasing from $20,000 in 1992 to $70,000 in 2010 plus interest ranging from 6.5% to 8.5% 690,000 Leasehold revenue bonds series 1991, originally issued November 1, 1991, due in annual installments increasing from $35,000 in 1992 to $90,000 in 2006 plus interest ranging from 5% to 7.25% 740,000 General obligation bonds series 1993A, originally issued December 1, 1993, due in annual installments increasing from $35,000 in 1994 to $45,000 in 2003 plus interest at 3.4% to 5% 340,000 General obligation bonds series 1993B, originally issued December 1, 1993 due in annual installments increasing from $25,000 in 1994 to $35,000 in 2003 plus interest at 3.85% to 4.75% 250,000 Total 3,855,000 Less current maturities 305,000 Long -term debt, less current maturities $3,550,000 The proceeds of all of bonds issued 1984 through 1991 were used to purchase or construct commercial real property transferred under direct financing leases. The bonds are expected to be repaid from proceeds of the financing leases. One financing lease in the original principal amount of $1,077,422 is in default. Bonds relating to the defaulted lease are expected to be repaid from the proceeds from sale of the building or from building rents. 42 The proceeds of the series 1993A bonds are to be used to finance improvements to the Airport and the proceeds of the series 1993B bonds are to be used to i finance matching funds for a Federal Aviation Administration grant. The 1993A and 1993B series bonds are to be repaid from the general revenue of the Authority. The annual bond principal for all bonds outstanding as of December 31, 1994, are as follows: Payable in General Leasehold Year Ended Obligation Revenue Revenue Interest December 31 Bonds Bonds Bonds Payments Total 1995 $ 135,000 $ 130,000 $ 40,000 $ 250,468* $ 555,468 1996 145,000 - 45,000 229,729 419,729 1997 155,000 - 50,000 216,772 421,772 1998 165,000 - 50,000 205,178 420,178 1999 180,000 - 55,000 193,055 428,055 Thereafter 2,205,000 - 500,000 1,079,015 3,784,015 Total $2,985,006 130,000 740,000 $2,174,217 6,029,217 *Interest on revenue bonds estimated at 6.8% The annual bond interest for all bonds outstanding as of December 31, 1994, are as follows: Payable in General Year Ended Obligation Revenue December 31 Bonds Bonds 1995 $ 191,851 $ 8,840 1996 182,251 - 1997 171,995 - 1998 163,475 - 1999 154,503 - Thereafter 927,040 - Total $1,791,11S 8,840 ---- - - - - -- ---- - - - - -- Leasehold Revenue Bonds Total Interest Payment-3 $ 49,777 $ 250,468 47,478 229,729 44,777 216,772 41,703 205,178 38,552 193,OSC 151,975 1,079,O15 374,262 $2,174,2177 43 Activity in long term debt for 1994 was as follows: Beginning Bonds Building Revenue Bonds Series 1984 Building Revenue Bonds Series 1985 General Obligation Economic Development Bonds Series 1990A General Obligation Economic Development Bonds Series 1990B Leasehold Revenue Bonds Series 1991. General Obligation Bonds Series 1993A General Obligation Bonds Series 1993B Totals $ 60,000 $ - 240,000 - 1,760,000 - 715,000 - 780,000 - 375,000 - 275,000 - 4,205,000 ---- - - - - -- ---- - - - - -- Note 10. Interfund Assets /Liabilities Due From /To Other Funds: Receivable Fund Payable Fund Principal Ending Paid Balance $ 60,000 $ - 110,00() 130,000 55,000 1,705,000 25,000 690,000 40,000 740,000 35,000 340,000 25,000 250,000 350,006 3,855,000 Amount General Police Grants $ 5,010 General Traffic Safety Grant 62,516 Note 11. Fund Equity A. The following reservations of fund balances and retained earnings are used by the City. Reserved for Encumbrances - Segregates a portion of fund balance for expenditures upon vendor performance. Reserved for Inventories - Identifies that the related assets do not represent expendable available financial resources. B. Residual equity transfer. During 1994, the City transferred unexpended cash balances from the Construction Fund to the Bond & Int:erest Fund, resulting in a residual equity transfer of $145,001. 44 Note 12. Segment Information -- Enterprise Funds The government 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, 1994 is presented below. Note 13. Contributed Capital Solid Sanitation Operating Revenues $1,052,413 Depreciation Expense 36,930 Operating Income 53,105 Net Income (loss) 69,556 Current Capital Contributions 0 Property, Plant 51,902 and Equipment Additions 39,229 Net Working Capital 612,090 Total Assets 885,547 Bonds Payable 15,027 Revenue Bonds Payable 0 General obligation Bonds 0 and Temporary Notes payable 0 Total Equity $ 802,757 Note 13. Contributed Capital Solid Golf Water !: Data Waste Course Sewer Total $1,214,207 $ 606,952 $ 9,402,506 $12,276,078 133,266 51,902 1,472,211. 1,694,309 336,079 14,496 2,663,430 3,067,110 331,125 15,027 2,085,495 2,501,203 4,037 0 1,780,731. 1,784,768 1,526,457 104,038 6,003,410 7,673,134 539,282 65,910 8,017,803 9,235,085 4,531,400 466,461 70,948,990 76,832,398 0 0 36,725,000 36,725,000 2,506,660 59,970 0 2,566,630 $1,305,386 $ 379,495 $32,622,256 $35,109,894 During the year, contributed capital changed by the following amounts: Water Central Solid Data Source and Sewer Garage Waste Processing Total Additions $1,780,731 $ 12,336 $ 4,037 $ 397,907 $2,195,011 Net Change $1,780,73T 12,336 4,037 __� 397,907 $2,195,011 Note 14. Contingent Liabilities Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the government expects such amounts, if any, to be immaterial. 45 Note 15. 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 $629,750 reported as landfill closure and postclosure care liability at December 31, 1994, represents the cumulative amount reported to date based on the use of 2.25 percent of the estimated capacity of the landfill, plus $533,000 estimated closure costs for the original landfill which stopped accepting waste in 1994. The City's Solid Waste Fund will recognize the remaining estimated cost of closure and postclosure care of $4,203,250 as the remaining estimated capacity is filled over the remaining life expectancy of 40 years. These amounts are based on what it would cost to perform all closure and postclosure care in 1994. Actual cost may be higher due to inflation, changes in technology, or changes is regulations. The City expects to budget the amounts necessary to fund such future costs through the normal budgeting and rate setting process. During the current fiscal year the City adopted GASB Statement 18, which requires accrual of such costs in each period that the landfill accepts solid waste. Liability for the previous years' share of such costs is shown as a prior period adjustment to the Solid Waste Fund reducing fund equity by $482,250 as of January 1, 1994. The effect of adoption of the statement on operations for the fiscal year ended December 31, 1994, was to reduce net income of the Solid Waste Fund by $147,500. Note 16. Defined Benefit Pension Plan Substantially all employees of the City of Salina participate in the Kansas Public Employees Retirement System ( "System ") , a cost sharing multiple - employer public employee retirement system. A group of employees participate in the Kansas Police and Firemen System (KP &F) , a separate program administered by the System. Following is a summary of covered payroll and contributions to the System for the year ended December 31, 1994. Contributions Covered Payroll Employer Employee Total General Employees $5,808,060 $128,000 $248,943 $376,943 Police and Firemen 4,770,726 634,508 318,114 952,622 $10,578,786 $762,508 $567,057 $1,329,565 ---- - - - - -- ---- - - - - -- ---- - - - - -- ----- - - - - -- ---------- ---- - - - - -- ---- - - - - -- ----- - - - - -- 46 The total payroll for the City of Salina was $12,004,596 for the year ended December 31,1994 . Substantially all employees of the City of Salina are eligible to participate in the System after one year of employment. Employees who retire at or after age 65 or age 62 with ten years service credit or at any age when years of service plus age equal 85 "points" are entitled to a retirement benefit, payable monthly for life, equal to 1 percent of their final average salary for each year of "prior" service and 1.75 percent for each year of "participating" service. Final average salary is the employee's average salary over the higher of four years of credited service including add -ons such as accrued sick leave and vacation leave or a three year average without add -ons. For those hired July 1, 1993 or later, final average salary is a three year average with. no add-ons. Benefits fully vest on reaching ten years of service. Vested employees may retire at age 55 and receive reduced retirement benefits. The system also provides death and disability benefits. Benefits are established by the State statute. Covered employees are required by State statute to contribute four percent of their salary to the plan. The employer is required by the same statute to contribute the remaining amounts necessary to pay benefits when due. The contribution requirement for the year ended December 31,1994 was $376,943, which consisted of $128,000 from the employer and $248,943 from the employees; these contributions represented 2.2 percent and four percent of covered payroll respectively. The contribution rate (seven percent for employees) and retirement benefits for participants in KP &F are different from those described above for other participants in the System. Normal retirement for KP &F participants is at age 50 with 25 years of service, age 55 with 20 years, and age 60 with 15 years. Reduced benefits are available at age 50 with 20 years of service. The "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step -rate benefits, estimated to be payable in the future as a result of employee service to date. The measure, which is the actuarial present value of credited projected benefits, is intended to help users, assess the System's funding status on a going- concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among PERS and employers. The System does not make separate measurements of assets and pension benefits obligation for individual employers. The pension benefit obligation at June 30, 1994 for the System as a whole., determined through an actuarial valuation performed as of that date, was $6.42 billion. The System's net assets available for benefits on that date (valued at market) were estimated to be $5.04 billion, leaving an unfunded pension obligation estimated at $1.38 billion. The contribution of the city for the period covered by this report represents slightly more than one percent of total contributions required of all participating entities. Ten -year historical trend information showing the plan's progress in accumulating sufficient assets to pay benefits when due is presented in the KPERS' June 30, 1994, comprehensive annual financial report. 47 Note 17. Deferred Compensation Plan The City offers its employees a deferred compensation 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. At December 31, 1994, 67 current or former employees were participating in the plan. 295,000 238,834 KSU Boundary Road 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 City believes it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. Note 18. Construction Fund Projects The Construction Fund is used to account for the purchase or construction of capital facilities, equipment and public improvements. Construction fund projects cumulative expenditures through December 31, 1994 are compared to project authorizations as follows: 48 Project Cumulative Project Name Authorization Expenditures Crawford Street Phase 11 $ 1,820,000 $ 1,730,673 Schilling Interchange 1,150,000 921,785 Crawford Street Phase III 2,940,000 960,223 Prescott Improvements 125,000 84,378 Holmquist /Austin 295,000 238,834 KSU Boundary Road 427,512 493,466 Traffic Signals 165,000 146,500 Golf Course Building 67,000 63,329 Austin /Mayfair 260,000 214,089 Tas ker /Laurie 715,000 '738,902 Subdivision I 1,516,000 1,110,792 Magnolia /1 -35 Interchange 3,500,000 427,024 Subdivision 11 522,920 475,671 Subdivision III 677,951 521,312 Centennial Road 0 102, 727 Centennial "S" Curve 0 49,905 48 A summary of the fund's December 31, 1994 follows: Cash balance resulting from: Capital projects in process Special Assessment projects Total unencumbered cash balance (deficit) $(511,440) (13,586) (525,026) at General Funds are being used to temporarily finance the deficit cash balance as of December 31, 1994 in accordance with K.S.A. 10- 1116(a) (2) . Note 19. Compliance with Kansas Statutes A summary of statutory compliance matters related to 1994 follows: A. The assets pledged by Sunflower Bank to secure cash deposits of the City were not sufficient to meet the requirements of K.S.A. 9 -1402 for January 19, April 1, July 22 and August 1, 1994. B. The cumulative expenditures of the following construction fund projects exceeded the related project authorization during 1994 (See Nolte 18) Tasker /Laurie Subdivision KSU Boundary Road Centennial Road Centennial "S" Curve C. According to the Kansas Attorney General's opinion 94 -14 dated February 7, 1994, the repurchase agreements held by the City in early 1994, appeared to be in violation of Kansas Statutes (K. S . A . 12 -1675) , in that the securities purchased were held in joint custody rather than held solely by the City. As of June 1, 1994, all repurchase agreements were terminated and monies were transferred to a secured money market deposit account. D. A $1,000,000 U.S. Treasury Note was purchased in October 1994 with a maturity greater than 2 years, which appears to be in violation of K.S.A. 12 -1675. There were no other statutory violations noted. The following; compliance matters resulted in a determination of compliance with statutory provisions. The deficit cash balances of the Police Grant and Traffic Safety Grant funds are reimbursable from grants received through the State of Kansas. Accordingly, such deficit fund balances are not a violation of the cash basis law. Note 20. Endowment Funds Included in fund balance of the trust and agency funds is $127,697 of endowment funds principal. 50 Note 21. Additional Financial Reporting Entity Disclosures A. Component Units The combining balance sheet for the City's component units, the Salina Airport Authority and the Salina Housing Authority, is presented below: Equity and other credits: Investment in Fixed Assets Contributed Capital Retained Earnings: Unreserved Fund Balances: Unreserved Fund Balance Total Equity and other credits 0 3,374,229 4,301,825 0 7,430,809 0 0 (1,463,863) 11,732,634 Total liabilities, equity and other credits $17,107,479 *Includes investments of $109,967. 3,374,229 4,301,825 7,430,809 (1,463,863) 1,910,366 13,643,000 $ 3,726,549 $20,834,028 ------ - - - - -- ----- - - - - -- Salina Salina Airport Housing Authority Authority Total Assets and other debits: Assets: Cash and investments $ 651,512 $ 238,998 $ 890,510 Accounts Receivable 482 106,594 107,076 Inventory and Prepaid Supplies 12,607 0 12,607 Notes Receivable 3,893 0 3,893 Restricted Cash and Investments 1,469,707* 0 1,469,707 Fixed Assets 18,727,917 3,374,229 22,102,146 Accumulated Depreciation - Fixed Assets (6,259,527) 0 (6,259,527) Financing Leases 2,408,665 0 2,408,665 Deferred Issuance Costs 92,223 6,728 98,951 Total Assets 17,107,479 ------ - - - - -- 3,726,549 ------ - - - - -- 20,834,028 ------ - - - - -- ------------ Liabilities, equity and other credits: ------ - - - - -- ------ - - - - -- Liabilities: Accounts Payable 65,224 105,917 171,141 Deferred Compensation Benefits Payable 49,967 0 49,967 Deferred Revenue 78,634 949 79,583 Payable from Restricted Assets: Salina - KSU sales tax liability 1,244,740 0 1,244,740 Accrued Interest Payable 81,280 0 81,280 Revenue Bonds Payable - Current 305,000 0 305,000 Temporary Notes Payable 0 1,709,317 1,709,317 Revenue Bonds Payable 3,550,000 0 3,550,000 Total Liabilities 5,374,845 1,816,183 7,191, 028 Equity and other credits: Investment in Fixed Assets Contributed Capital Retained Earnings: Unreserved Fund Balances: Unreserved Fund Balance Total Equity and other credits 0 3,374,229 4,301,825 0 7,430,809 0 0 (1,463,863) 11,732,634 Total liabilities, equity and other credits $17,107,479 *Includes investments of $109,967. 3,374,229 4,301,825 7,430,809 (1,463,863) 1,910,366 13,643,000 $ 3,726,549 $20,834,028 ------ - - - - -- ----- - - - - -- I ) There are no significant differences in authorized investment types between the primary government and its discretely presented component units. Investments of component units were not significant at December 31, 1994. 2) Long Term Debt a. Salina Airport Authority. Kansas statue provide that the bonds and other obligations and liabilities of the Authority are not debts or liabilities of the City. b. Salina Housing Authority. Notes payable are to HUD and the Federal Finance Bank and all principal and interest payments on such notes are to be made by HUD under subsidy arrangements. 3) Both component units are exempt from the Kansas budget laws. 4) There were no interfund transactions between the primary government and the Salina Housing Authority during their respective fiscal years. 5) Employees of the component units participate in the Kansas Public Employees Retirement System, which is discussed in Note 16. All contribution requirements were met by the component units and their employees. B. Joint Ventures. The City of Salina also participates with other local primary governments in two joint ventures. The Salina - Saline County Board of Health was organized by the City of Salina and Saline County to promote public health. The Salina County -City Building Authority was organized by Salina County, the City of Salina and Salina Unified School District #305 to acquire, operate and maintain facilities for the administrative offices of the three primary governments. The primary governments each have an ongoing financial responsibility for the joint ventures. Separate financial statements are available from the governing board of each joint venture. The following summarizes the total fund equity and the City's contribution to the operations of each of the joint ventures. Building Board of Health Authority Total Fund Balance, December 31, 1994 $ 563,168 $ 145,809 Year 1994 Total Revenues $2,456,317 $ 534,080 Revenues from City of Salina $ 360,881 $ 131,064 C. Related Organization. The Mayor of the City of Salina appoints the governing board of the Salina Public Library, but the primary government has no financial accountability for the Library, which has its own tax levying authority. 51 Note 22. 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. The City believes that the amount of future environmental expenditures related to the Site from the water utility is not presently determinable due to scarcity of reliable data pertaining to the identified site, changes in laws and regulations and their application, and the lengthy time period over which site remediation is expected to occur. Note 23. Subsequent Event The City issued $2,434,000 of General Obligation Improvement Bonds. Series 1.995 A, dated May 1, 1995, with interest rates from 4.75% to 5.35`,,. Proceeds from the sale of the bonds will be used to provide permanent financing for certain improvement projects undertaken within newly developing subdivisions in the City, and improvements to the City's sanitary landfill facilities. 52 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. This page intentionally left blank City of Salina Comparative Balance Sheets General Fund December 31, 1994 and 1993 '.TOTALS L994 1993 Assets Cash and Investments $5,338,558 $3,667,867 Accounts Receivable 424,211 318,017 Taxes Receivable 9859014 1,499,318 Prepaid Supplies 58,522 849565 Interfund Receivable 67,526 26,800 Total assets 6987_S,831 5,596,567 Liabilities and Fund Balances Liabilities: Accounts Payable 211,227 71,674 Retainage Payable 5,950 6,824 Deferred Revenue 4349151 948,596 Total Liabilities 6519328 1,027,094 Fund Balances: Reserved for encumbrances 881,232 265,863 Reserved for inventory 58,522 84,565 Unreserved fund balance 59282,749 4,219,045 Total fund balances 6,222,503 4,569,473 Total liabilities and fund balances $6,873,831 $5,596,567 53 Revenue: Taxes Intergovernmental Charges for Services Fines Interest Reimbursements Miscellaneous Total Revenues Expenditures: General Government Public Safety Public Works Recreation Cultural Community Development Health and Welfare Capital Outlay Other Total Expenditures Revenue over (under) expenditures Other Financing Sources (Uses): Proceeds from lease Operating Transfers in Operating Transfers out Total Other Financing Sources (Uses) Revenues and other financing sources over (under) expenditures and other financing uses Fund Balances, January 1 Fund Balances, December 31 54 City of Salina Comparative Statement of Revenues, Expenditures and Changes in Fund Balances General Fund Year Ended December 31, 1994 and 1993 15,303,999 13,911,100 1,068,758 TOTALS 6,425,378 5,666,750 1994 1993 $10,493,370 $ 9,992,064 1,126,272 1,069,022 1,462,955 1,301,474 1,019,966 574,513 543,696 441,066 37,854 29,959 619,886 503,002 15,303,999 13,911,100 1,068,758 1,425,852 6,425,378 5,666,750 1,123,640 1,132,607 1,721,024 1,600,093 379,777 346,677 131,803 128,898 440,609 78,317 1,658,788 631,062 512,132 700,392 13,461,909 11,710,648 1,842,090 2,200,452 389,355 0 97,579 107,643 (675,994) (635,335) (189,060) (527,1392) 1,653,030 1,672,760 4,569,473 2,896,713 $ 69222,503 $ 4,569,473 This page intentionally left blank 55 City of Salina Page 1 of 2 General Fund Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1994 Budget Actual Variance Receipts: Taxes - Property $ 887,010 $ 966,926 $ 79,916 Taxes - Sales 6,600,000 7,761,286 1,161,286 Taxes - Franchise 1,549,000 1,756,528 207,528 Intergovernmental 1,118,043 1,127,228 9,185 Charges for Services 1,245,200 1,470,382 225,182 Fines 424,000 1,004,603 580,603 Interest 350,000 452,972 102,972 Reimbursements 35,000 37,853 2,853 Miscellaneous 48,500 189,599 141,099 Transfers in 557,537 527,866 (29,671) Total Receipts 12,814,290 15,295,243 2,480,953 Expenditures: City Commission 96,300 67,543 28,757 City Manager 204,096 201,055 3,041 Legal 85,800 92,233 (6,433) Finance 306,601 281,240 25,361 Personnel 92,280 88,254 4,026 Buildings 228,512 230,131 (1,619) Human Relations 109,510 107,526 1,984 Police 2,619,493 2,620,466 (973) Municipal Court 170,868 628,524 (4157,656) Parking Meters 37,120 27,062 10,058 Fire 2,874,946 2,973,004 (98,058) Permits and Inspection 172,937 187,459 (14,522) Engineering 175,503 178,118 (2,615) Streets 745,010 729,758 15,252 Flood Works 90,887 79,099 11,788 Traffic Control 145,096 114,984 30,112 Parks 680,116 670,802 9,314 Swimming Pools 64,000 67,272 (3,272) Neighborhood Centers 65,503 69,084 (3,581) Recreation 866,637 913,765 (47,128) Arts and Humanities 163,099 169,998 (6,899) Smoky Hill Museum 187,009 209,779 (22,770) Planning 133,266 131,702 1,564 Cemetery 81,763 79,728 2,035 Health 345,207 360,881 (15,674) Contingency 281,292 422,652 (1.41,360) Capital Outlay 735,700 1,842,342 (1,1.06,642) Transfers out 765,784 794,287 (28,503) Cash Reserve 2,354,011 0 2,354,011 Total expenditures 14,878,346 14,338,748 539,598 55 City of Salina Page 2 of 2 General Fund Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1994 Budget Actual Variance Receipts over (under) expenditures (2,064,056) 956,495 3,020,551 Unencumbered Cash, January 1 Unencumbered Cash, December 31 2,064,056 3,357,127 $ 0 $ 4,313,622 1,293,071 $ 4,313,622 56 This page intentionally left blank SPECIAL REVENUE FUNDS Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. Employee Benefit: This fund is used to account for the costs of various benefits provided to governmental employees. Utility: This fund is used 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: This fund is used to provide for liability and worker's compensation insurance costs for employees. Business Improvement District: 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: This fund is used to account for transient guest tax revenues and are specifically restricted to promotion and tourism activities. Special Parks: This fund is used to account for liquor tax revenues which must be used for park maintenance and improvements. Special Alcohol: This fund is used to account for liquor tax revenues which must be used for programs which address prevention, education or intervention in drug and alcohol abuse. Special Gas: This fund is used 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: This fund is used to account for the activities at the City's convention center. 57 Bicentennial Center Event: This fund is used to account for the revenues and expenses associated with special events (concerts, shows, etc.) which occur at the Bicentennial Center. HUD Community Development: This fund is used to account for grants received from the state which must be used for housing or economic development purposes. Heritage Commission: This fund is used to account for revenues and expenses associated with heritage preservation activities. Fair Housing: This fund is used to account for grants received from the federal government which must be used to monitor and mediate fair housing complaints. Law Enforcement: This fund is used to account for revenues received from the sale of forfeited assets acquired during drug enforcement activities. Expenses are restricted to capital items to be used for further drug enforcement activities. Police Grants: This fund is used to account for revenues received from grants which are restricted to special police activities such as D.A.R.E. Traffic safety Grant: This fund is used to account for revenues received from grants which are specifically restricted to traffic enforcement. This page intentionally left blank Assets Cash and Investments Accounts Receivable Taxes Receivable Total assets Liabilities and Fund Balances Liabilities: Accounts Payable Retainage Payable Deferred Revenue Interfund Payable Total Liabilities Fund Balances: Reserved for encumbrances Unreserved fund balance Total fund balances Total liabilities and fund balances *01 City of Salina Combining Balance Sheet Special Revenue Funds December 31, 1994 (With comparative totals for December 31, 1993) BUSINESS EMPLOYEE SPECIAL IMPROVEMENT BENEFIT UTILITY LIABILITY DISTRICT TOURISM AND SPECIAL CONVENTION PARKS Page 1 of 3 SPECIAL SPECIAL ALCOHOL GAS $ 810,498 $ 295,513 $ 52,139 $ 3,570 $ 26,829 $ 0 $ 0 $ 574,004 0 0 0 11,398 0 1) 0 0 2,177,092 640,369 353,294 0 149,005 0 0 321,829 2,987,590 935,882 405,433 14,968 175,834 () 0 895,833 275 59,402 0 0 0 0 0 299453 0 0 0 0 0 0 0 0 2,177,092 640,369 353,294 9,318 0 0 0 0 0 0 0 0 0 0 0 0 2,177,367 699,771 353,294 9,318 0 CI 0 299453 0 0 0 0 0 0 0 137,307 810,223 236,111 52,139 5,650 175,834 0 0 729,073 810,223 236,111 52,139 5,650 175,834 C1 0 866,380 $ 2,987,590 $ 9359882 $ 405,433 $ 14,968 $ 175,834 $ Cl $ 0 $ 895,833 City of Salina Combining Balance Sheet Special Revenue Funds December 31, 1994 (With comparative totals for December 31, 1993) Page 2 of 3 .1 BI- BI- CENTENNIAL HUD CENTENNIAL CENTER COMMUNITY HERITAGE FAIR LAk' POLICE CENTER EVENT DEVELOPMENT COMMISSION HOUSING ENFORCEMENT GRANTS Assets Cash and Investments $ 296,234 $ 92,180 $ 62,583 $ 2,058 $ 21,421 $ 42,813 $ 0 Accounts Receivable 65,357 0 24,876 0 0 0 12,909 Taxes Receivable 0 0 0 0 0 0 0 Total Assets 361,591 92,180 87,459 2,058 21,421 42,813 129909 Liabilities and Fund Balances Liabilities: Accounts Payable 109213 0 0 0 0 0 0 Retainage Payable 0 0 0 0 0 0 0 Deferred Revenue 0 0 0 0 0 0 0 Interfund Payable 0 0 0 0 0 0 59010 Total Liabilities 10,213 0 0 0 0 0 5,010 Fund Balances: Reserved for encumbrances 0 0 0 0 0 0 0 Unreserved fund balance 351,378 92,180 87,459 2,058 21,421 42,813 7,899 Total fund balances 351,378 92,180 87,459 2,058 21,421 42,813 7,899 Total liabilities and fund balances $ 361,591 $ 92,180 $ 87,459 $ 2,058 $ 21,421 $ 42„813 $ 12,909 .1 City of Salina Combining Balance Sheet Special Revenue Funds December 31, 1994 (With comparative totals for December 31, 1993) 61 Page 3 of 3 TRAFFIC TOTALS SAFETY GRANT 1994 :1993 Assets - Cash and Investments $ 0 $2,279,842 $1,870,246 Accounts Receivable 65,726 180,266 161,991 Taxes Receivable 0 3,641,589 3,509,521 Total Assets 65,726 6,101,697 5,541,758 Liabilities and Fund Balances Liabilities: Accounts Payable 210 99,553 85,315 Retainage Payable 0 0 17,092 Deferred Revenue 0 3,1809073 3,073,777 Interfund Payable 62,516 67,526 26,800 Total Liabilities 62,726 3,347,152 3,202,984 Fund Balances: Reserved for encumbrances 0 137,307 101,236 Unreserved fund balance 3,000 2,617,238 2,237,538 Total fund balances 3,000 2,754,545 2,338,774 Total liabilities and fund balances $ 65,726 $6,101,697 $5,541,758 61 Page 3 of 3 This page intentionally left blank 62 City of Salina Combining Statement of Revenue, Expenditures and Changes in Fund Balances Special Revenue Funds Year Ended December 31, 1994 (With comparative totals for December 31, 1993) Page 1 of 3 BUSINESS TOURISM EMPLOYEE SPECIAL IMPROVEMENT AND SPECIAL SPECIAL SPECIAL BENEFIT UTILITY LIABILITY DISTRICT CONVENTION PARKS ALCOHOL GAS Revenues - Taxes $ 2,418,291 $ 904,840 $ 386,581 $ 0 $ 562,446 $ 0 $ 0 $ 0 Intergovernmental 175,000 - 0 0 0 0 80,579 80,579 1,247,420 Charges for Services 0 0 0 0 0 0 Fines 0 0 0 150 0 0 0 0 0 0 Special Assessments 0 0 0 75,012 0 0 0 Interest 0 0 0 0 0 0 0 0 Reimbursements 0 0 0 0 0 0 0 Miscellaneous 149,445 1,861 0 0 0 0 0 0 0 550 Total Revenues 2,742,736 906,701 386,581 75,162 562,446 80,5751 80,579 1,247,970 Expenditures: - General Government 0 0 0 0 0 CI 0 Public Works 0 0 0 0 0 CI 0 0 209,337 Public Safety 0 0 0 0 0 0 0 0 Community Development 0 0 0 0 0 0 0 Health and Welfare 0 0 0 0 0 C 84,417 0 0 Bicentennial Center 0 0 0 0 0 C 0 Capital Outlay 0 0 0 0 0 C 0 p 846,730 Other 2,472,103 792,286 360,806 60,459 336,200 0 0 0 Total Expenditures 2,472,103 792,286 360,806 60,459 336,200 0 84,417 1,056,067 Revenues over (under) expenditures 270,633 114,415 25,775 14,703 226,246 80,579 (3,838) 191,903 Other Financing Sources (Uses): - Operating Transfers in 0 0 0 0 0 0 Operating Transfers Out 0 0 0 (17,000) (224,133) (80,579) 0 0 0 (225,000) Total Other Financing - Sources (Uses) 0 0 0 (17,000) (224,133) (80,579) 0 (225,000) Revenues and other financing - sources over (under) expenditures and other financing uses 270,633 114,415 25,775 (2,297) 2,113 0 (3,838) (33,097) Fund Balances, January 1 539,590 121,696 26,364 7,947 173,721 0 3,838 899,477 Fund Balances, December 31 $ 810,223 $ 236,111 $ 52,139 $ 5,650 $ 175,834 $ 0 $ 0 $ 866,380 62 Expenditures: General Government 0 0 City of Salina 567 0 0 Public Works 0 Combining Statement of Revenues, Expenditures 0 0 0 0 Public Safety and Changes in Fund Balances 0 0 0 8,918 173,057 Community Development Special Revenue Funds 309,504 0 0 0 0 Health and Welfare Year Ended December 31, 1994 0 0 0 0 0 (With comparative totals for December 31, 1993) 848,036 872,473 0 0 0 0 0 Capital Outlay 187,997 Page 2 of 3 0 0 BI- 0 0 Other 0 0 0 BI- CENTENNIAL HUD 0 Total Expenditures SPECL?L 872,473 309,504 CENTENNIAL CENTER COMMUNITY HERITAGE FAIR LAW POLICE CENTER EVENT DEVELOPMENT COMMISSION HOUSING ENFORCEMENT GRANTS Revenues: 144 (567) 33,685 (112,417) Other Financing Sources (Uses): - Taxes $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Intergovernmental 0 0 268,116 0 0 37,603 56,473 Charges for Services 705,262 921,434 0 0 0 0 0 Fines 0 0 0 0 0 0 0 Special Assessments 0 0 0 0 0 0 0 Interest 0 0 3,588 0 0 0 0 Reimbursements 0 0 4,866 0 0 0 4,167 Miscellaneous 0 0 0 144 0 5,000 0 Total Revenues 705,262 921,434 276,570 144 0 42,603 60,640 Expenditures: General Government 0 0 0 0 567 0 0 Public Works 0 0 0 0 0 0 0 Public Safety 0 0 0 0 0 8,918 173,057 Community Development 0 0 309,504 0 0 0 0 Health and Welfare 0 0 0 0 0 0 0 Bicentennial Center 848,036 872,473 0 0 0 0 0 Capital Outlay 187,997 0 0 0 0 0 0 Other 0 0 0 0 0 0 0 Total Expenditures 1,036,033 872,473 309,504 0 567 8,918 173,057 Revenues over (under) expenditures (330,771) 48,961 (32,934) 144 (567) 33,685 (112,417) Other Financing Sources (Uses): - Operating Transfers in 334,133 0 0 0 0 0 98,833 Operating Transfers Out 0 0 0 0 0 0 0 Total Other Financing - Sources (Uses) 334,133 0 0 0 0 0 98,833 Revenues and other financing - sources over (under) expenditures and other financing uses 3,362 48,961 (32,934) 144 (567) 33,685 (13,584) Fund Balances, January 1 348,016 43,219 120,393 1,914 21,988 9,128 21,483 Fund Balances, December 31 $ 351,378 $ 92,180 $ 87,459 $ 2,058 $ 21,421 $ 42,613 $ 7,899 63 City of Salina Combining Statement of Revenues, Expenditures and Changes in Fund Balances Special Revenue Funds Year Ended December 31, 1994 (With comparative totals for December 31, 1993) TRAFFIC TOTALS SAFETY GRANT 1994 1993 Revenues: Taxes $ 0 $ 4,272,158 $ 4,013,378 Intergovernmental 233,773 2,179,543 1,700,806 Charges for Services 0 1,626,696 1,872,970 Fines 0 150 445 Special Assessments 0 75,012 66,637 Interest 0 3,588 2,249 Reimbursements 0 97033 26,009 Miscellaneous 0 157,000 238,481 Total Revenues 233,773 8,323,180 7,920,975 Expenditures: General Government 0 567 1,145 Public Works 0 209,337 254,107 Public Safety 128,000 309,975 167,903 Community Development 0 309,504 46,356 Health and Welfare 0 84,417 94,805 Bicentennial Center 0 1,720,509 1,968,806 Capital Outlay 102,773 1,137,500 927,096 Other 0 4,021,854 3,847,084 Total Expenditures 230,773 7,793,663 7,307,302 Revenues over (under) expenditures 3,000 529,517 613,673 Other Financing Sources (Uses): Operating Transfers in 0 432,966 325,,000 Operating Transfers Out 0 (546,712) (512.,642) Total Other Financing Sources (Uses) 0 (1137746) (187.,642) Revenues and other financing sources over (under) expenditures and other financing uses 3,000 415,771 4261,031 Fund Balances, January 1 0 2,338,774 1,9121,743 Fund Balances, December 31 $ 3,000 $ 2,754,545 $ 2,3381774 64 Page 3 of 3 City of Salina Employee Benefit Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1994 Budget Actual Variance Receipts: Taxes - Property Intergovernmental Miscellaneous Total receipts Expenditures: Earned Leave Unemployment Social Security Life Insurance Kansas Police and Fire Retirement Kansas Public Employees Retirement Health Insurance Wellness Transfers out Cash Reserves Total Expenditures Receipts over (under) Expenditures Unencumbered Cash, January 1 Unencumbered Cash, December 31 $ 2,277,967 $ 2,418,291 $ 140,324 175,000 175,000 0 0 149,445 149,445 2,452,967 2,742,736 289,769 40,000 22,770 17,230 32,320 29,997 2,323 374,860 359,621 15,239 47,360 48,363 (1,003) 595,900 612,015 (16,115) 85,000 78,634 6,366 1,125,200 962,284 162,916 0 20,128 (20,128) 340,000 338,291 1,709 220,000 0 :220,000 2,860,640 2,472,103 388,537 (407,673) 270,633 (578,306 407,673 539,590 131,917 $ 0 $ 810,223 $ 810,223 65 City of Salina Utility Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1994 Budget Actual Variance Receipts: Taxes - Property Miscellaneous Total receipts Expenditures: Gas Service Street Lighting Water Service Light and Power Traffic Control Cash Reserves Total expenditures Receipts over (under) expenditures Unencumbered Cash, January 1 Unencumbered Cash, December 31 M. $ 859,815 $ 904,840 $ 45,025 0 1,861 1,861 859,815 906,701 46,886 78,000 71,105 6,895 290,000 276,349 13,651 95,000 119,692 (24,692) 310,000 284,677 25,323 41,000 40,463 537 100,000 0 100,000 914,000 792,286 .121,714 (54,185) 114,415 168,600 54,185 121,696 67,511 $ 0 $ 236,111 $ 236,111 City of Salina Special Liability Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1994 Budget Actual Receipts: Taxes - Property $ 363 761 Total receipts 363,761 Expenditures: Transfers Out 360,806 Cash Reserves 25,000 Total expenditures 385,806 Receipts over (under)expenditures (22,045) Unencumbered Cash, January 1 22,045 Unencumbered Cash, December 31 $ 0 360,806 0 360,806 25,775 9.6.364 Variance $ 22,820 22,820 0 25,000 25,000 47,820 4.319 bp J4 ,L07 DL,137 67 City of Salina Business Improvement Dist. Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1994 Budget Actual Variance Receipts: Fines $ 0 $ 150 $ 150 Special Assessments 75,000 80,107 5,107 Total receipts 75,000 80,257 --� Expenditures: Contractual 60,459 Transfers Out 17,000 Total expenditures ---T7—,4S'T- Receipts over (under) expenditures (2,459) Unencumbered Cash, January 1 2,459 Unencumbered Cash, December 31 $ 0 .: 60,459 17,000 7 7, 4S'T- 2,798 771 0 0 5,257 (1,688) $ 3,569 $ 3,569 City of Salina Tourism and Convention Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1994 Budget Actual Variance Receipts: Taxes - Transient Guest $ 519,160 $ 545,989 $ 26,829 Total receipts 519,160 egg- — g Expenditures: Contractual Transfers out Total expenditures Receipts over (under) expenditures Unencumbered Cash, January 1 Unencumbered Cash, December 31 336,200 224,133 --TUU-1333- (41,173) 41,173 336,200 224,133 5 6 (), 333- (14,344) 41,173 $ 0 $ 26,829 0 0 26,829 0 $ 26,829 .• City of Salina Special Parks Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1994 Budget Actual Variance Receipts: Intergovernmental $ 84,701 $ 80,579 $ (4,122) Total receipts 84,701 Wig- --� Expenditures: - Transfers Out 86,937 80,579 6,358 Total Expenditures — $b'3.37 —SO, = --z-1 = Receipts over (under) expenditures (2,236) 0 2,236 Unencumbered Cash, January 1 2,236 0 (2,236) Unencumbered Cash, — December 31 $ 0 $ 0 $ 0 70 71 City of Salina Special Alcohol Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1994 Budget Actual 'Variance Receipts: Intergovernmental $ 84,701 $ 80,579 $ (4,122) Total receipts 84,701 so IMT Expenditures: Contractual 86,938 84,417 2,521 Total expenditures X38 -- � Receipts over (under) expenditures (2,237) (3,838) (1,601) Unencumbered Cash, January 1 2,237 3,838 1,601 Unencumbered Cash, — December 31 $ 0 $ 0 $ 0 71 City of Salina Special Gas Tax Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1994 Budget Actual Variance Receipts: Intergovernmental $ 1,175,000 $ 1,239,675 $ 64,675 Miscellaneous 0 550 550 Total receipts , , OOU- 5- - Expenditures: Personal Services Supplies Other Services Capital Outlay Transfers Out Cash Reserve Total expenditures Receipts over (under) expenditures Unencumbered Cash, January 1 Unencumbered Cash, December 31 VA 115,912 133,490 28,500 708,600 225,000 319,666 (356,168) 356,168 99,185 97,531 966 938,414 225,000 0 (120,871) 528,114 $ 0 $ 407,243 16,727 35,959 27,534 (229,814) 0 319,666 —ITO -1= 235,297 171,946 $ 407,243 City of Salina Bicentennial Center Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1994 Budget Actual Variance Receipts: Charges for Services $ 610,000 Transfers In 300,000 Total receipts 910,00'g— Expenditures: Personal Services 485,567 Supplies 52,200 Contractual 2,000 Other Services and Charges 299,000 Capital Outlay 111,000 Cash Reserve 207,913 Total expenditures I7157-1z= Receipts over (under) expenditures (247,680) Unencumbered Cash, January 1 247,680 Unencumbered Cash, December 31 $ 0 $ 692,552 334,133 I, U26,685 469,069 46,330 707 331,930 161,131 0 I, 0 0 9, Ib 17,518 268,502 $ 82,552 34,133 16,498 5,870 1,293 (32,930) (50,131) 207,913 265,198 20,822 $ 286,020 $ 286,020 73 City of Salina Bicentennial Center Event Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budgetary Basis For the year ended December 31, 1994 Receipts: Charges for Services $ 921,434 Total receipts —— Expenditures: Supplies 872,473 Total expenditures —� Receipts over — (under) expenditures 48,961 Unencumbered Cash, January 1 43,219 Unencumbered Cash, December 31 $ 92,180 74 City of Salina HUD Community Development Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budgetary Basis For the year ended December 31, 1994 Receipts: Intergovernmental $ 255,000 Interest 572 Miscellaneous 9,217 Transfers in 9,639 Total receipts 274,428 Expenditures: Personal Services 30,303 Supplies 378 Contractual 269,174 Transfers out 48,116 Total expenditures _I4 7,-771 Receipts over (under) expenditures (73,543) Unencumbered Cash, January 1 56,060 Unencumbered Cash, December 31 75 City of Salina Community Development Revolving Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budgetary Basis For the year ended December 31, 1994 Receipts: Interest Miscellaneous $ 3,017 6,342 Transfers in 48,116 Total receipts 57,475 Expenditures: Contractual 10,661 Transfers out 865 Total expenditures 11,526 Receipts over (under) expenditures 45,949 Unencumbered Cash, January 1 34,118 Unencumbered Cash, December 31 80,067 76 City of Salina Heritage Commission Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budgetary Basis For the year ended December 31, 1994 Receipts: Miscellaneous $ 144 Total Receipts Expenditures: Total expenditures 0 Unencumbered Cash, January 1 --I—Im Unencumbered Cash, December 31 $ 2,058 77 City of Salina Fair Housing Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budgetary Basis For the year ended December 31, 1994 Expenditures: Contractual 254 Supplies 313 Total expenditures Unencumbered Cash, January 1 21,988 Unencumbered Cash, December 31 $— rO City of Salina Special Law Enforcement Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budgetary Basis For the year ended December 31, 1994 Receipts: Miscellaneous $ 5,000 Intergovernmental 37,603 Total receipts --3 Expenditures: Other Services 8,918 Total expendituresg Receipts over (under) expenditures 33,685 Unencumbered Cash, January 1 9,128 Unencumbered Cash, December 31 $ 42,813 79 City of Salina Police Grants Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budgetary Basis For the year ended December 31, 1994 Receipts: Intergovernmental $ 81,780 Miscellaneous 4,167 Transfers in 98,833 Total receipts [gg�- Expenditures: Personal Services 141,675 Supplies 4,395 Other services 26,987 Total expenditures Receipts over (under) expenditures 11,723 Unencumbered Cash, January 1 (16,733) Unencumbered Cash, December 31 $ (5,010) :1 City of Salina Traffic Safety Grant Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budgetary Basis For the year ended December 31,1994 Receipts: Intergovernmental $ 190,894 Total receipts —--� Expenditures: Personal services 96,279 Supplies 18,716 Contractual 879 Other services 9,323 Capital outlay 102,772 Transfers out 2,803 Total expenditures Receipts over ' (under) expenditures (39,878) Unencumbered Cash, January 1 (22,847) Unencumbered Cash, December 31 T—T iI This page intentionally left blank 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. EM This page intentionally left blank This page intentionally left blank City of Salina Comparative Balance Sheets Debt Service Fund December 31, 1994 and 1993 Fund Balances: Unreserved fund balance 797,083 539,887 Total fund balances 797,083 539,887 Total liabilities and fund balances $ 5,971,016 $ 4,3439877 M TOTALS 1994 1993 Assets: Cash and Investments $ 797,083 $ 539,887 Taxes Receivable 1,880,913 1,114,674 Special Assessments Receivable 3,293,020 2,689,316 Total assets 5,971,016 4,343,877 Liabilities and Fund Balances Liabilities: Deferred Revenue 5,173,933 3,803,990 Total Liabilities 5,173,933 3,803,990 Fund Balances: Unreserved fund balance 797,083 539,887 Total fund balances 797,083 539,887 Total liabilities and fund balances $ 5,971,016 $ 4,3439877 M City of Salina Comparative Statement of Revenues, Expenditures and Changes in Fund Balances Debt Service Fund Years Ended December 31, 1994 and 1993 TOTALS 1994 1993 Revenue: Taxes $ 1,388 „376 $ 1,474,117 Special Assessments 793 1,190 873,850 Interest 1 1371 1,538 Miscellaneous 9,916 29,750 Total Revenues 2,192,853 2,379,255 Expenditures: Debt Service: Principal 2,163,130 2,165,000 Interest and fiscal charges 609,689 737,019 Total Expenditures 2,772,819 2,902,019 Revenue over (under) expenditures (579,966) (522,764) Other Financing Sources (Uses): Operating Transfers in 692,161 715,334 Total Other Financing Sources (Uses) 692,161 715,334 Revenues and other financing sources over (under) expenditures and other financing uses 112,195 192,570 Fund Balances, January 1 539,1387 335,915 Residual Equity Transfers in 145,001 112402 Fund Balances, December 31 $ 797,083 $ 539,887 :A City of Salina Bond and Interest Fund Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1994 Budget Actual Variance Receipts: Taxes Special Assessments Accrued Interest on Bonds Miscellaneous Transfers in Total receipts Expenditures: Principal Interest Commission and Postage Other Services Cash Reserve Total expenditures Receipts over (under) expenditures Unencumbered Cash, January 1 Unencumbered Cash, December 31 w $ 1,304,590 $ 1,388,376 $ 83,786 610,000 793,190 183,190 0 1,371 1,371 30,000 9,916 (20,084) 692,161 837,162 145,001 3� —T7UT6, 6�� 51,870 2,215,000 2,163,130 630,750 608,410 22,340 1,500 771 729 0 508 (508) 150,000 0 .150,000 2,997,250 2,772,819 (360,499) 257,196 (517,695 360,499 539,887 179,388 $ 0 $ 797,083 $ 797,083 CAPITAL PROJECT FUNDS Capital projects funds, are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds. Construction Fund: This fund is used to account for the construction of subdivision improvements and projects identified within the city's five year capital budget. Grants, bonds, temporary notes and property owner payments comprise the majority of revenues. .., This page intentionally left blank City of Salina Combining Balance Sheet Capital Project Funds December 31, 1994 (With comparative totals for December 31, 1993) TOTALS CONSTRUCTION 1994 15193 Assets: Cash and Investments $ 322,454 $ 322,454 $ 60,992 Accounts Receivable 0 0 277,685 Total assets 322,454 322,454 338,677 Liabilities and Fund Balances Liabilities: Accounts Payable 28,738 28,738 0 Retainage Payable 15,316 15,316 75,977 Total Liabilities 44,054 44,054 75,977 Fund Balances: Reserved for encumbrances 803,426 803,426 254,343 Unreserved fund balance (525,026) (525,026) 8,357 Total fund balances 278,400 278,400 262,700 Total liabilities and fund balances $ 322,454 $ 322,454 $ 338,677 City of Salina Combining Statement of Revenues, Expenditures and Changes in Fund Balances Capital Project Funds Year Ended December 31, 1994 (With comparative totals for December 31, 1993) Revenues: Intergovernmental Interest Reimbursements Miscellaneous Total Revenues Expenditures: Capital Outlay Temporary Note payments Total Expenditures Revenues over (under) expenditures Other Financing Sources (Uses): Bond and Temporary Note Proceeds Total other financing sources (uses) Revenues and other financing sources over (under) expenditures and other financing uses Fund Balances, January 1 Residual Equity Transfers in (out) Fund Balances, December 31 :: TOTALS CONSTRUCTION 1994 1993 $ 50,730 $ 50,730 $ 76,981 16,325 16,325 13,959 132,802 132,802 259,796 0 0 103,508 199,857 199,857 454,244 2,201,156 2,201,156 1,464,594 1,028,000 1,028,000 810,000 3,229,156 3,229,156 2,274,594 (3,029,299) (39029,299) (1,820,350) 3,190,000 3,190,000 1,6489500 3,190,000 3,1909000 1,6489500 160,701 160,701 (171,850) 262,700 262,700 445,952 (145,001) (145,001) (11,402) $ 278,400 $ 278,400 $ 262,700 City of Salina Construction Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budgetary Basis For the year ended December 31, 1994 Receipts: Intergovernmental $ 128,136 Interest 16,325 Reimbursements 333,081 Other Financing 3,190,000 Total receipts -- Expenditures: Capital Outlay 2,763,361 Temporary Notes 1,028,000 Transfers out .145,001 Total expenditures —3 T ?- Receipts over (under) expenditures (268,820) Unencumbered Cash, January 1 (240,890) Unencumbered Cash, December 31 $ (509,710) E.&7 This page intentionally left blank 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 government's council 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 government's council has decided that periodic determination of net income is appropriate for accountability purposes. Sanitation: This fund is used to account for the operations of the City's refuse service. Solid Waste: This fund is used to account for the activities of the City's landfill. Golf Course: This fund is used to account for the operations of the municipal golf course. Water & Sewer: This fund is used to account for the activities of the City's water and sewer operations. .l This page intentionally left blank Assets: Cash and Investments Accounts Receivable Due From Other Funds Inventory and Prepaid Supplies Restricted Cash and Investments Fixed Assets Accumulated Depreciation Deferred Issuance Costs Total assets Liabilities and Fund equity Liabilities: Accounts Payable Accrued Compensated Absences Due to Other Funds Meter Deposits Payable Payable from Restricted Assets: Accrued Interest Payable Revenue Bonds Payable - Current Accounts and Retainage Payable General Obligation Bonds and Temporary Notes Payable - Current General Obligation Bonds Payable Revenue Bonds Payable Temporary Notes Payable Landfill Closure and Postclosure Total liabilities Fund Equity: Contributed Capital Retained Earnings: Unreserved Total fund equity Total liabilities and fund equity City of Salina Combining Balance Sheet Enterprise Funds December 31, 1994 (With comparative totals for December 31, 1993) SOLID SANITATION WASTE $ 637,391 $ 842,064 57,489 69,941 0 0 0 0 0 340,735 892,957 3,724,898 (702,290) (467,017) 0 20,779 885,547 4,531,400 458 82,332 0 0 0 0 0 0 0 0 0 0 82,790 18,171 21,722 0 0 33,109 0 16,602 332,830 1,333,830 0 840,000 629,750 3,226,014 WATER TOTALS GOLF AND COURSE SEWER 1994 1993 $ 99,004 $ 7,337„608 $ 8,916,067 $ 7,809,800 0 1,230,430 1,357,860 481,097 0 0 0 31,909 25,889 300,567 326,456 367,680 0 16,927,486 17,268,221 9,624,078 1,116,493 64,964,730 70,699,078 63,135,861 (774,925) (20,396,459) (229340,691) (20,742,171) 0 584,628 605,407 349,658 466,461 70,948,990 76,832,398 61,057,912 3,818 224,386 246,833 209,513 22,569 241,397 368,020 336,940 0 0 0 31,909 0 84,452 84,452 85,427 609 491,508 525,326 422,781 0 880,000 880,000 805,000 0 559,891 576,493 1,891,669 6,707 0 339,537 161,870 53,263 0 1,387,093 1,561,630 0 35,845,000 35,845,000 24,105,000 0 0 840,000 140,000 0 0 629,750 482,250 86,966 38,326,734 41,722,504 30,233,989 0 57,037 0 7,568,633 7,625,670 5,840 902 802,757 1,248,349 379,495 25,053,623 27,484,224 24,983,021 802,757 1,3059386 379,495 32,622,::56 35,109,894 30,8239923 $ 885,547 $ 4,531,400 $ 466,461 $70,948,990 $76,832,398 $61,057,912 91 Operating Revenues: Charges for Services Miscellaneous Total Operating Revenues Operating Expenses: Public Works Recreation Depreciation Total Operating Expenses Operating Income (loss) Nonoperating Revenues (Expenses): Interest Miscellaneous (1984 refunding) Debt Service Loss on disposition of fixed assets Total Nonoperating Revenues (Expenses) Net income (loss) Fund Equity, January 1 Prior Period Adjustment Change in Contributed Capital, net Fund Equity, December 31 92 City of Salina Combining Statement of Revenues, Expenses and Changes in Retained Earnings Enterprise Funds Year Ended December 31, 1994 (With comparative totals for December 31, 1993) SANITATION WATER SOLID GOLF AND WASTE COURSE SEWER TOTALS 1994 1993 $ 1,042,312 $ 1,197,155 $ 601,772 $ 9,320,999 $12,162,238 $10,124,523 10,101 17,052 59180 81,507 113,840 32,700 1,052,413 1,214,207 6069952 9,402,506 12,276,078 107157,223 962,378 744,862 0 5,266,865 6,974,105 5,737,456 0 0 540,554 0 540,554 460,627 36,930 133,266 51,902 1,4729211 1,694,309 1,172,075 999,308 878,128 7,370,158 592,456 69739,076 97208,968 53,105 336,079 14,496 2,787,065 2,663,430 3,067,110 20,840 23,156 3,049 819,641 866,686 320,101 0 0 0 93,864 93,864 93,864 0 (27,581) (2,518) (1,475,770) (1,505,869) (436,890) (4,389) (529) 0 (15,670) (20,588) (2,679) 16,451 (4,954) 531 (577,935) (565,907) (25,604) 69,556 331,125 15,027 2,085,495 2, 501,203 2,761,461 733,201 1,452,474 364,468 28,756,030 31,306,173 26,485,821 0 (482,250) 0 0 (482,250) 0 0 4,037 0 1,780,731 1,784,768 2,058,891 $ 802,757 $ 1,305,386 $31,306,173 $ 379,495 $32,622,256 $35,109,894 93 City of Salina Combining Statement of Cash Flows Enterprise Funds Year Ended December 31, 1994 (With comparative totals for December 31, 1993) WATER TOTALS SOLID GOLF AND SANITATION WASTE COURSE SEWER 1994 1993 Cash Flows from Operating Activities: Operating income (loss) $ 53,105 $ 336,079 $ 14,496 $ 2,663,430 $ 3,067,110 $ 2,787,065 Adjustments to reconcile operating income to net cash provided by operating activities Depreciation 36,930 133,266 51,902 1,472,21.1 1,694,309 1,172,075 Provision for uncollectible accounts receivable 0 0 0 (5,41.0) (5,410) 14,269 Change in assets and liabilities: Accounts receivable (57,489) (67,032) 0 (192,741) (317,262) (33,951) Inventory and Prepaid Supplies 0 0 (3,728) 44,952 41,224 (58,736) Customer Meter Deposits 0 0 0 (975) (975) 3,305 Accounts Payable (31,548) 5,276 608 110,865 85,201 2,783 Accrued liability for compensated absences 9,234 4,688 1,541 15,617 31,080 35,595 Post Closure Liability 0 147,500 0 0 147,500 0 Total Adjustments (42,873) 223,698 50,323 1,444,519 1,675,667 1,135,340 Net Cash Provided by Operating Activities 10,232 559,777 64,819 4,107,949 4,742,777 3,922,405 Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets (39,229) (1,920,366) (99,460) (5,357,024) (7,416,079) (13,752,793) Principal paid on maturing bonds and notes 0 (158,340) (3,530) (805,000) (966,870) (670,000) Interest paid on bonds and notes 0 (69,714) (2,127) (1,961,893) (2,0339734) (1,670,137) Miscellaneous income (1984 refunding) 0 0 0 93,864 93,864 93,864 Bond Proceeds 0 0 0 12,620,000 12,620,000 4,853,500 Contributed Capital 0 4,037 0 125,80D 129,837 2,103,200 Issuance Costs 0 0 0 (296,970) (296,970) (61,643) Temporary Note Proceeds 0 865,000 0 0 865,000 210,000 Net Cash Used for Capital and Related Financing Activities (39,229) (1,279,383) (105,117) 4,418,777 2,995,048 (8,894,009) Cash Flows from Investing Activities: Interest on Invested Cash 20,840 34,282 3,049 954,41+ 1,012,585 546,668 Net Increase in Cash and Investments (8,157) (685,324) (37,249) 9,481,140 8,750,410 (4,424,936) Cash and Investments, January 1 645,548 1,868,123 136,253 14,783,954 17,433,878 21,858,814 Cash and Investments, December 31 637,391 1,182,799 99,004 24,265,094 26,184,288 17,433,878 Cash and Investments is comprised of: ------------ ------ - - - - -- ------ - - - --- ____________ Current 637,391 842,064 99,004 7,337,608 8,916,067 7,809,800 Restricted 0 340,735 0 16,927,486 17,268,221 9,624,078 Total $ 637,391 $ 1,182,799 $ 99,004 $ 24,265,094- $ 26,184 288 $ 17,433,878 93 City of Salina Sanitation Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1994 Budget Actual Variance Receipts: Charges for Services Interest Miscellaneous Total receipts Expenditures: Personal Services Supplies Contractual Other Services and Charges Capital Outlay Transfers Out Cash Reserve Total expenditures Receipts over (under) expenditures Unencumbered Cash, January 1 Unencumbered Cash, December 31 ti IV $ 975,000 $ 952,914 $ (22,086) 20,000 20,840 840 1,300 10,101 983,855- 8,801 996,30U- 509,740 496,552 (13,188) 136,950 116,696 20,254 15,600 12,476 3,124 231,500 211,137 20,363 42,800 39,229 3,571 102,994 102,994 0 578,238 0 578,238 - bIT-,T6Z- , 992,272 (8,417) 599,917 (608,334) 608,334 645,350 37,016 $ 0 $ 636,933 $ 536,933 City of Salina Solid Waste Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1994 Receipts: Charges for Services Interest Miscellaneous Other Financing Sources Total receipts Expenditures: Personal Services Supplies Contractual Other Services and Charges Capital Outlay Transfers Out Cash Reserve Debt Service Total expenditures Receipts over (under) expenditures Unencumbered Cash, January 1 Unencumbered Cash, December 31 Budget Actual Variance $1,300,000 $1,130,123 $ (169,877) 22,000 24,517 2,517 0 17,052 17,052 250,000 285,000 35,000 1,5721UO-O- 1,456,692- --7115-13UBT 218,645 248,792 (30,147) 120,720 114,015 6,705 118,500 29,030 89,470 167,500 151,454 16,046 1,233,000 341,550 891,450 46,284 111,932 (65,648) 384,885 0 384,885 0 228,837 (228,837) 1,225,610- T £4- (717,534) 231,082 948,616 717,534 590,106 (127,428) $ 0 $ 821,188 $ 621,188 95 City of Salina Solid Waste Construction Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budgetary Basis For the year ended December 31,1994 Receipts: Interest $ 12,015 Other Financing sources 580,000 Transfers in 65,648 Total Receipts --6�1 � Expenditures: Contractual 250,149 Debt Service 1,468 Capital Outlay 459,652 Total Expenditures — Receipts over (under) expenditures (53,606) Unencumbered Cash, January 1 55,012 Unencumbered Cash, December 31--— M. City of Salina Golf Course Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1994 Budget Actual Variance Receipts: Charges for Services $ 605,000 $ 601,772 $ (3,228) Interest Reimbursements 2,000 200 3,049 1,049 Miscellaneous 2,000 920 4,260 720 2,260 Total receipts 609,20U- Expenditures: Personal Services 252,559 256,894 (4,335) Supplies 88,000 87,238 762 Contractual 17,500 22,752 (5,252) Other Services and Charges 134,000 154,443 (20,443) Capital Outlay 40,000 43,073 (3,073) Transfers Out 46,950 19,050 27,900 Cash Reserve 98,130 0 98,130 Debt Service 0 5,657 (5,657) Total expenditures�j - Receipts over (under) expenditures (67,939) 20,894 88,833 Unencumbered Cash, January 1 67,939 74,292 6,353 Unencumbered Cash, December 31 $ 0 $ 95,186 $ 95,186 97 City of Salina Water and Sewer Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1994 Receipts: Water Charges Sewer Charges Intergovernmental Interest Miscellaneous Bond Proceeds Total receipts Expenditures: Subject to budget: Water Administration Water Customer Accounting Water Distribution Water Softening Cross Connection Groundwater Remediation Sewer Collection Debt Service Capital Outlay Transfers out Cash Reserve Total expenditures subject to budget Not subject to budget - from bond proceeds Transfer to bond escrow and bond issue costs Capital Outlay Budget $ 4,663,000 4,177,000 0 200,000 100,000 0 $ 5,253,869 4,144,370 125,800 324,604 159,541 12,457,150 Variance $ 590,869 (32,630) 125,800 124,604 59,541 12,457,150 1-3 ,'3�1 — 443,092 432,054 11,038 755,497 815,785 (60,288) 846,830 665,018 181,812 1,732,610 1,578,163 154,447 51,835 45,097 6,738 0 108,917 (108,917) 1,341,028 1,220,088 120,940 2,400 853 1,547 624,350 1,645,523 (1,021,173) 2,982,139 2,851,462 .130,677 4,575,634 0 4,575,634 13,355,415 9,362,960 3,992,455 0 11,363,557 (11,363,557) 0 1,057,697 (1,057,697) Total expenditures 13,35b,415 , Receipts over (under) expenditures (4,215,415) 681,120 Unencumbered Cash, January 1 Unencumbered Cash, December 31 •• 4,215,415 5,774,761 $ 0 $ 6,455,881 4,896,535 1,559,346 $ 6,455,881 City of Salina Water and Sewer P & I Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budgetary Basis For the year ended December 31, 1994 Receipts: Interest $ 113,543 Transfers In 2,269,323 Total receipts 2,382,866 Expenditures: — Principal 805,000 Interest 1,614,122 Commission on Bonds 1,252 Total expenditures 2,420,374 Receipts over — (under) expenditures (37,508) Unencumbered Cash, January 1 653,025 Unencumbered Cash, December 31 $ 515,517 we City of Salina Water and Sewer Bond Reserves Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budgetary Basis For the year ended December 31, 1994 Receipts: Other Financing Sources $ 106,600 Total receipts ---Iuu= Unencumbered Cash, January 1 11,496,258 Unencumbered Cash, December 31 --7 ,602-8-5g Comprised of: Extension and Bond Retirement Reserve 979,758 1990 Bond Reserve 786,500 1992 Bond reserve 1,340,000 Depreciation and Emergency Replacement 125 000 1993 Bond Reserve 265,000 1994 Bond Reserve 106,600 Total $ 3,602,858 100 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: This fund is used 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: This fund is used to account for the costs of providing a partially self- insured workers compensation plan and for accumulating the needed reserve amounts. Central Garage: This fund is used to account for the accumulation and allocation of costs associated with the City's centralized vehicle repair shop. Data Processing: This fund is used to account for the accumulation and allocation of costs associated with electronic data processing. 101 This page intentionally left blank Assets: Cash and Investments Accounts Receivable Fixed Assets Accumulated Depreciation Total assets Liabilities and Fund equity Liabilities: Accounts Payable Accrued Compensated Absences Total liabilities Fund Equity: Contributed Capital Retained Earnings: Unreserved Total fund equity Total liabilities and fund equity City of Salina Combining Balance Sheet Internal Service Funds December 31, 1994 (With comparative totals for December 31, 1993) 102 WORKERS TOTALS RISK COMP. CENTRAL DATA MANAGEMENT RESERVE GARAGE PROCESSING 1994 1993 $ 276,698 $ 583,539 $ 83,530 $ 109,977 $ 1,053,744 $ 857,993 0 24,850 0 0 24,850 13,000 0 0 159,875 764,080 923,955 831,227 0 0 (125,900) (168,566) (294,466) (441,966) 276,698 608,389 117,505 705 „491 1,708,083 1,260,254 16,117 234,429 54,361 9,407 314,314 472,763 8,074 0 19,543 10,672 38,289 33,305 24,191 234,429 73,904 20,079 352,603 506,068 0 0 12,336 397,907 410,243 0 252,507 373,960 31,265 2879505 945,237 754,186 252,507 373,960 43,601 685,412 1,355,480 754,186 $ 276,698 $ 608,389 $ 117,505 $ 705,491 $ 1,708,083 $ 1,260,254 102 Operating Revenues: Charges for Services Reimbursements Miscellaneous Total Operating Revenues Operating Expenses: General Government Other Depreciation Total Operating Expenses Operating Income (Loss) Non - operating Revenues (Expenses) Loss on disposition of fixed assets Net income Fund Equity, January 1 Change in Contributed Capital, Net Fund Equity, December 31 103 City of Salina Combining Statement of Revenues, Expenses and Changes in Retained Earnings Internal Service Funds Year Ended December 31, 1994 (With comparative totals for December 31, 1993) WORKERS TOTALS RISK COMP. CENTRAL DATA MANAGEMENT RESERVE GARAGE PROCESSING 1994 1993 $ 476,124 $ 474,348 $ 649,555 $ 347,451 9; 1,947,478 $ 1,945,171 0 0 6,643 0 6,643 7,402 11 0 0 3,195 3,206 0 476,135 474,348 1,952,573 656,198 350,646 1,957,327 383,060 299,701 0 234,843 917,604 1,050,262 0 0 645,889 0 645,889 729,849 0 0 5,914 65,196 71,110 80,628 383,060 299,701 651,803 300,039 1,634,603 1,860,739 93,075 174,647 4,395 91,834 50,607 322,724 0 0 0 (131,673) (131,673) 0 93,075 174,647 4,395 (81,066) 191,051 91,834 159,432 199,313 26,870 368,571 754,186 662,352 0 0 12,336 397,907 410,243 0 $ 252,507 $ 373,960 $ 43,601 $ 754,186 685,412 $ 1,355,480 $ City of Salina Combining Statement of Cash Flows Internal Service Funds Year Ended December 31, 1994 (With comparative totals for December 31, 1993) Cash Flows from Operating Activities: Operating income (Loss) Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation Change in assets and liabilities: Accounts Receivable Accounts Payable Accrued liability for compensated absences Total adjustments Net Cash Provided by Operating Activities WORKERS RISK COMP. MANAGEMENT RESERVE $ 93,075 $ 174,647 $ TOTALS CENTRAL DATA GARAGE PROCESSING 1994 1993 4,395 $ 53,607 $ 322,724 $ 91,834 0 0 5,914 65,196 71,110 80,628 0 (11,850) 0 0 (11,850) 0 16,075 (58,573) 32,057 (148,008) (158,449) 324,254 (113) 0 3,579 1,518 4,984 (5,913) 15,962 (703423) 41,550 (81,294) (94,205) 398,969 109,037 104,224 45,945 (30,687) 228,519 490,803 Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets Net Increase (Decrease) in Cash and Investments Cash and Investments, January 1 Cash and Investments, December 31 Cash and Investments is Compromised of: Current Restricted Total 0 0 (1,773) (30,995) (32,768) (196,075) 109,037 104,224 44,172 (61,682) 195,751 294,728 167,661 479,315 39,358 171,659 857,993 563,265 $ 276,698 $ 583,539 $ 83,530 $ 109,977 $ 1,053,744 $ 857,993 $ 276,698 $ 583,539 $ 83,530 $ 109„977 $ 1,053,744 $ 857,993 0 0 0 0 0 0 $ 276,698 $ 583,539 $ 83,530 1,053,744 $ 857 993 104 City of Salina Risk Management Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1994 Receipts: Budget Actual Miscellaneous $ 0 $ 11 Transfers in 476,124 476,124 Total receipts 476,135 Expenditures: Personal Services Supplies Contractual Other Services and Charges Cash Reserve Capital Outlay Total expenditures Receipts over (under) expenditures Unencumbered Cash, January 1 Unencumbered Cash, December 31 105 56,561 2,000 388,600 3,702 140,910 1,500 (117,149) 117,149 55,847 1,254 320,810 3,462 0 1,800 92,962 167,619 11 0 714 746 67,790 240 140,910 (300) 210,111 50,470 $ 0 $ 260,581 $ 260,581 City of Salina Worker's Compensation Reserve Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1994 Budget Actual Receipts: Transfers in $ 474,348 $ 474,348 $ Total receipts 474,348 474,348 Expenditures: Contractual 262,000 590,276 Cash Reserve 715,015 0 Total expenditures — 977,,015– , Receipts over (under) expenditures (502,667) (115,928) Unencumbered Cash, January 1 502,667 471,876 Unencumbered Cash, December 31 Variance 0 0 (328,276) 715,015 38b, 739 —– 386,739 (30,791) $ 0 $ 355,948 $ 355,948 106 City of Salina Central Garage Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1994 Budget Actual Variance Receipts: Charges for Services $ 823,535 $ 649,555 Reimbursements 0 6,643 Total receipts 823,537- 656,198- Expenditures: Personal Services 188,850 172,958 Supplies 584,830 454,969 Other Services and Charges 14,400 6,597 Transfers Out 6,500 6,500 Cash Reserve 50,000 0 Total expenditures , Receipts over (under) expenditures (21,045) 15,174 Unencumbered Cash, January 1 21,045 13,995 Unencumbered Cash, December 31 $ 0 $ 29,169 107 $ (173,980) 6,643 --7T 15,892 129,861 7,803 0 50,000 36,219 (7,050) $ 29,169 City of Salina Data Processing Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1994 Budget Actual Receipts: Charges for Services Miscellaneous Transfers in Total receipts Expenditures: Personal Services Supplies Contractual Other Services and Charges Capital Outlay Transfers Out Cash Reserve Total expenditures Receipts over (under) expenditures Unencumbered Cash, January 1 Unencumbered Cash, December 31 $ 121,500 $ 144,865 0 3,195 202,586 202,586 324,086— 350,646— 182,173 167,473 6,250 8,366 5,000 0 37,000 52,229 167,000 33,459 2,692 2,692 80,000 0 (156,029) 86,427 156,029 14,144 $ 23,365 3,195 0 14,700 (2,116) 5,000 (15,229) 133,541 0 80,000 242,456 (141,885) $ 0 $ 100,571 $ 100,571 1: This page intentionally left blank 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. Citizenship Trust Fund: This fund is used to account for a donation which restricts the use of the interest earned on the donation to provide "Good Citizen" awards to deserving Salina citizens. Cemetery Endowment Fund: This fund is used to account for amounts charged for perpetual care of the City cemetery. Interest earned_ may be used to maintain the cemetery. Mausoleum Endowment Fund: This fund is used to account for amounts charged for perpetual care of the City mausoleum. Interest earned may be used to maintain the mausoleum. Tricentennial Commission Fund: This fund is used to account for donations to be used to celebrate the nation's Tricentennial in the year 2076. Special Assessment Escrow Fund: This fund is used to account outstanding special assessments. for property owners' prepayment on Fire Insurance Proceeds Fund: This fund is used to account for insurance proceeds received by the City on severely damaged buildings. The insurance proceeds, plus interest, is returned to the property owner when the building is repaired or demolished. PEG Access Fund: This fund is used to account for revenues collected on behalf of the community access television system for public, educational and governmental programming. Payroll Clearing: This fund is used to account for interfund payroll receivables and payables for all City funds. Employees' Deferred Compensation Fund: This fund is used to account for assets held for employees in accordance with the provisions of Internal Revenue Code Section 457. 109 This page intentionally left blank This page intentionally left blank City of Salina Combining Balance Sheet Trust and Agency Funds December 31, 1994 (With comparative totals for December 31, 1993) Page ] of 2 110 TRI- SPECIAL FIRE CITIZENSHIP CEMETERY MAUSOLEUM CENTENNIAL ASSESSMENT INSURANCE PEG PAYROLL TRUST ENDOWMENT ENDOWMENT COMMISSION ESCROW PROCEEDS ACCESS CLEARING Assets: Cash and Investments $ 14,516 $ 134,797 $ 18,925 $ 2,926 $ 301,435 $ 14,019 $ 0 $ 220,110 Accounts Receivable 126 0 0 58 0 0 0 0 Total assets 14,642 134,797 18,925 2,984 301,435 14,019 0 220,110 Liabilities and Fund Balances Liabilities: Accounts Payable 0 0 0 0 301,435 14,019 0 220,110 Deferred Compensation Benefits Payable 0 0 0 0 0 0 0 0 Total Liabilities 0 0 0 0 301,435 14,019 0 220,110 Fund Balances: Unreserved fund balance 14,642 134,797 18,925 2,984 0 0 0 0 Total fund balances 14,642 134,797 18,925 2,984 0 0 0 0 Total liabilities and fund balances $ 14,642 $ 134,797 $ 18,925 $ 2,984 $ 301,435 $ 14,019 $ 0 $ 220,110 110 City of Salina Combining Balance Sheet Trust and Agency Funds December 31, 1994 (With comparative totals for December 31, 1993) Page 2 of 2 EMPLOYEES' DEFERRED TOTALS COMPENSATION FUND 199Z7- 994 1993 Assets: Cash and Investments $ 1,449,286 $ 2,156,014 $ 1,939,917 Accounts Receivable 0 184 197 Total assets 1,449,286 2,156,198 1,940,114 Liabilities and Fund Balances Liabilities: Accounts Payable 0 535,564 378,936 Deferred Compensation Benefits Payable 1,449,286 1,449,286 1,398,862 Total Liabilities 1,449,286 1,984,850 1,777,798 Fund Balances: Unreserved fund balance 0 171,348 1629316 Total fund balances 0 171,348 162,316 Total liabilities and fund balances $ 1,449,286 $ 2,156,198 $ 1,940,114 111 City of Salina Combining Statement of Revenues, Expenses and Changes in Fund Balances Nonexpendable Trust Funds Year Ended December 31, 1994 (With comparative totals for December 31, 1993) 112 CITIZENSHIP TRUST CEMETERY ENDOWMENT MAUSOLEUM ENDOWMENT TRI- CENTENNIAL COMMISSION TOTALS 1994 1993 Operating Revenues: Charges for Services Interest $ 0 $ 705 3,948 4,023 $ O $ 569 0 $; 67 3,948 $ 5,364 4,231 5,256 Total Operating Revenues 705 7,971 569 67 9,312 9,487 Operating Expenditures: Other 0 35 245 0 280 2,172 Total Operating Expenditures 0 35 245 0 — 280 2,172 Operating Income (loss) 705 7,936 324 67 9,032 7,315 Net income (loss) Fund Balances, January 1 705 139937 7,936 126,861 324 18,601 67 2,917 9,032 162,316 7,315 155,001 Fund Balances, December 31 $ 14,642 $ 134,797 $ 18,925 $ 2,984 $ 171,348 $ —112,116 112 City of Salina Combining Statement of Cash Flows Nonexpendable Trust Funds Year Ended December 31, 1994 (With comparative totals for December 31, 1993) Cash Flows from Operating Activities: Operating income $ Adjustments to reconcile operating income to net cash provided by operating activities Change in accounts receivable Net Cash Provided by Operating activities Cash and Investments, January 1 Cash and Investments, December 31 Cash and Investments is Comprised of: Current Restricted Total 'CRI- CITIZENSHIP CEMETERY MAUSOLEUM CENTENNIAL TRUST ENDOWMENT ENDOWMENT COMM;:SSION 705 $ 7,936 $ 324 $ 67 $ 21 0 0 (8) 726 7,936 324 59 13,790 126,861 18,601 2,867 $ 14,516 $ 134,797 $ 18,925 $ 2,926 $ $ 14,516 $ 134,797 $ 18,925 $ 2,926 $ 0 0 0 0 $ 14,516 $ 134,797 $ 18,925 $ 2,926 $ TOTALS 1994 1993 9,032 $ 7,315 13 5 9,045 7,320 162,119 154,799 171,164 $ 162,119 171,164 $ 162,119 0 0 171,164 $ 162,119 113 Special Assessment Escrow Fund Assets: Cash and Investments Total Assets Liabilities: Accounts Payable Total Liabilities Fire Insurance Proceeds Fund Assets: Cash and Investments Total Assets Liabilities: Accounts Payable Total Liabilities 114 City of Salina Statement of Changes in Assets and Liabilities - All Agency Funds Year Ended December 31, 1994 Balance Balance December 31, January 1, 1994 Additions Deletions 1994 $ 340,013 $ 57,748 $ 96,326 $ 301,435 340,013 57,748 96,326 301,435 ------ - - - - -- ----- - - - - -- ----- - - - - -- --- -- - - - - -- ------------ ----- - - - - -- ----- - - - - -- ----- - - - - -- 340,013 57,748 96,326 301,435 $ 340,013 $ 57,748 $ 96,326 $ 301,435 Balance Balance December 31, January 1, 1994 Additions Deletions 1994 $ 15,613 $ 5,087 $ 6,681 $ 14,019 15,613 5,087 6,681 14,019 ------ - - - - -- ----- - - - - -- ----- - - - - -- ----- - - - - -- ------------ ----- - - - - -- ----- - - - - -- ----- - - - - -- 15,613 5,087 6,681 14,019 $ 15,613 $ 5,087 $ 6,681 $ 14,019 ------ - - - - -- ----- - - - - -- ----- - - - - -- ----- - - - - -- Page 1 of 2 PEG Access Fund Cash and Investments Total Assets Liabilities: Accounts Payable Total Liabilities Pavroll Clearing Fund Assets: Cash and Investments Total Assets Liabilities: Accounts Payable Total Liabilities Emolovees' Deferred Compensation Fund Assets: Cash and Investments Total Assets Liabilities: Deferred Compensation Benefits Payable Total Liabilities City of Salina Statement of Changes in Assets and Liabilities - All Agency Funds Year Ended December 31, 1994 Balance January 1, 1994 Additions $ 0 $ 114,380 0 114,380 0 114,380 Balance January 1, 1994 Additions Balance December 31, Deletions 1994 $ 114,380 $ 0 114,380 0 114,380 0 $ 114,380 $ 0 Balance December 31, Deletions 1994 $ 23,310 $14,981,487 $14,784,687 $ 2209110 23,310 14,981,487 14,784,687 220,110 23,310 14,981,487 14,784,687 220,110 $ 23,310 $14,981,487 $14,784,687 $ 220,110 Balance Balance December 31 January 1, 1994 Additions Deletions 1994 $ 1,398,862 $ 117,394 $ 66,970 $ 1,449,286 1,398,862 ------ - - - - -- ------------ 117,394 ----- - - - - -- ----- - - - - -- 66,970 ----- - - - - -- ----- - - - - -- 1,449,286 ------ -- - - -- ------ -- - - -- 1,398,862 117,394 66,970 19449,286 $ 1,398,862 $ 117,394 $ 66,970 $ 1,44!),286 Page 2 of 2 115 City of Salina Citizenship Trust Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budgetary Basis For the year ended December 31, 1994 Receipts: Interest $ 725 Total receipts Expenditures: Other Services and Charges 0 Total expenditures Receipts over (under) expenditures 725 Unencumbered Cash, January 1 13,789 Unencumbered Cash, December 31 $ 14,514 116 City of Salina Cemetery Endowment Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budgetary Basis For the year ended December 31, 1994 Receipts: Charges for Services Interest Total receipts Expenditures: Other services and charges Total expenditures Receipts over (under) expenditures Unencumbered Cash, January 1 Unencumbered Cash, December 31 $ 3,948 4,023 35 7,936 126,861 $ 134,797 117 City of Salina Mausoleum Endowment Schedule of Receipts, Expenditures and Changes in Unencumbered Cash Budgetary Basis For the year ended December 31, 1994 Receipts: Interest $ 569 Total receipts Expenditures: Contractual 245 Total expenditures Receipts over (under) expenditures 324 Unencumbered Cash, January 1 18,601 Unencumbered Cash, December 31 $ 18,925 118 City of Salina Tricentennial Commission Schedule of Receipts, Expenditures and Changes in Unencumbered Cash For the year ended December 31, 1994 Receipts: Interest $ 59 Total receipts Unencumbered Cash, January 1 2,867 Unencumbered Cash, December 31 $ 2,926 119 City of Salina Special Assessment Escrow Schedule of Receipts, Expenditures and Changes in Unencumbered Cash For the year ended December 31, 1994 Receipts: Special Assessments Interest Total receipts Expenditures: Other services and charges Transfers out Total expenditures Receipts over (under) expenditures Unencumbered Cash, January 1 Unencumbered Cash, December 31 MIPQ $ 49,023 8,725 91,739 4,587 96, J2b (38,578) 340,013 $ 301,435 City of Salina Fire Insurance Proceeds Schedule of Receipts, Expenditures and Changes in Unencumbered Cash For the year ended December 31, 1994 Receipts: Interest $ 495 Miscellaneous 4,592 Total receipts , Expenditures: Other services and charges 6,681 Total expenditures 6,681 Receipts over (under) expenditures (1,594) Unencumbered Cash, January 1 15,613 Unencumbered Cash, December 31 $ 14,019 121 City of Salina PEG Access Schedule of Receipts, Expenditures and Changes in Unencumbered Cash For the year ended December 31, 1994 Receipts: Taxes - Franchise $ 114,380 Total receipts Expenditures: Contractual 114,380 Total expenditures Receipts over (under) expenditures 0 Unencumbered Cash, January 1 0 Unencumbered Cash, December 31 122 GENERAL FIXED ASSETS General fixed assets are those fixed assets which have been acquired for Feneral governmental purposes or are not required to be capitalized in other unds. Assets purchased are recorded at cost in th General Fixed Assets Group of Accounts . Public domain "Infrastructure" 5 general fixed assets consisting of certain improvements other than buildings, including roads bridges, curbs and gutters, streets and sidewalks, drainage systems, an(I li &��ht�l'ng systems, are not capitalized because such assets are immovable and of value only to the City. No depreciation has been provided on general fixed assets. 123 This page intentionally left blank Cit of Salina Comparative Schedyules of General Fixed Assets By Source December 31, 1993 and 1994 1993 General andxed assets: $ 2,501,353 10 455,031 Improvements other than buildings ' 174,289 Machiner and Equipment 6,898,686 ConstrucTion in Progress 0 Total general fixed assets 20,029,359 Investment in general fixed assets by source: General fund 19,474,250 S ecial revenue funds 274,791 Capital projects funds 280,3180 Donations Total investment in general fixed assets $20,029,359 1994 $ 2,501,803 10,478,809 482,421 7,193,8020 20,656,835 20,243,381 105,594 290,158 17,702 $20,656,835 124 125 City of Salina Schedule of General Fixed Assets - By Function and Activity December 31, 1994 Improvements Other Than Machinery and Function and Activity Land Buildings Buildings Equipment Total General government: $ 0 $ 0 $ 81,920 $ 81,920 Manager $ 0 0 0 0 137,092 137,092 Finance 0 0 0 8,152 13,152 Personnel General Services 19,302 73,103 94,864 208,484 395,753 Human Relations 0 0 0 14,360 14,360 Bi- Centennial Center 0 5,298,330 85,348 1,539,754 6,923,432 Other 1,798,259 660,190 0 0 2,453,449 Total general government 1,817,561 6,031,623 180,212 1,989,762 10,019,158 Public Safety: Police 600 445,363 0 994,778 1,440,741 Municipal Court 0 0 0 35,295 35,295 Fire 63,302 1,220,623 0 1,931,924 3,215,849 Inspection 0 0 0 18,825 18,825 Total public safety 63,902 1,665,986 0 2,980,822 4,710,710 Highways and streets: 0 0 55,471 55,471 Engineering 0 Maintenance 10,470 155,211 150,647 1,110,511 1,426,839 Planning 0 0 0 67,679 67,679 Total highways and streets 10,470 155,211 150,647 1,233,661 1,549,989 Culture and recreation 609,870 2,625,989 151,562 989,558 4,376,979 Total general fixed assets $ 2,501,803 $10,478,809 $ 482,421 $ 7,1939803 $20,656,836 125 City of Salina Schedule of Changes in General Fixed Assets - By Function and Activity December 31, 1994 General Fixed Public Safety: General Fixed I Assets December 31, 1994 $ 81,920 137,092 8,152 395,753 14,360 6,923,432 2,458,449 10,019,158 Police Assets 311,218 (160,510) Other Interfund Function and Activity December 31, 1993 Additions Deductions Changes Transfers General government: 35,295 Fire 3,364,713 81,244 (236,258) Manager $ 75,305 $ 9,563 $ (1,248) $ (1,700) $ 0 Finance 127,998 25,049 (4,780) (4,300) (6,875) Personnel 8,152 0 0 0 0 General Services 420,215 2,144 (5,531) (1,075) (20,000) Human Relations 12,040 5,772 0 (3,452) 0 Bi- Centennial Center 6,760,734 160,806 (2,100) 0 3,992 Other 2,457,999 450 0 0 0 Total general 2,575 67,679 Total highways government 9,862,443 203,784 (13,659) (10,527) (22,883) Public Safety: General Fixed I Assets December 31, 1994 $ 81,920 137,092 8,152 395,753 14,360 6,923,432 2,458,449 10,019,158 Police 1,308,752 311,218 (160,510) 0 (18,719) 1,440,741 Municipal Court 22,608 12,687 0 0 0 35,295 Fire 3,364,713 81,244 (236,258) (300) 6,450 3,215,849 Inspection 9,212 755 0 0 8,858 18,825 Total public safety 4,705,285 405,904 (396,768) (300) (3,411) 4,710,710 Highways and streets: Engineering 34,710 22,509 (11,609) 0 9,861 55,471 Maintenance 1,205,496 252,059 (45,378) (1,346) 16,008 1,426,839 Planning 52,922 17,602 (5,420) 0 2,575 67,679 Total highways and streets 1,293,128 292,170 (62,407) (1,346) 28,444 1,549,989 Culture and recreation 4,168,503 270,840 (60,214) 0 (2,150) 4,376,979 Total general fixed assets $20,029,359 $ 1,172,698 $ (533,048) $ (12,173) $ 0 $20,656,836 126 This page intentionally left blank STATISTICAL SECTION This page intentionally left blank This page intentionally left blank City of Salina General Governmental Expenditures by Functions (1) Last Four Fiscal Years (2) Fiscal GENERAL PUBLIC PUBLIC year GOVERNMENT SAFETY WORKS RECREATION CULTURAL 1991 $ 1,487,342 $ 4,930,155 $ 1,227,758 $ 1,477,226 $ 327,241 1992 1,463,391 5,381,008 1,422,210 1,567,104 337,911 1993 1,426,997 5,834,653 1,386,714 1,600,093 346,677 1994 1,069,325 6,735,353 1,332,977 1,721,024 379,777 (1) Includes general, special revenue and debt service funds. (2) Prior year expenditures are not available on a GAAP basis. 127 Page 1 of 2 COMMUNITY DEVELOPMENT $ 369,179 339,084 175,254 441,307 City of Salina General Governmental Expenditures by Functions (1) Last Four Fiscal Years (2) (1) Includes general, special revenue and debt service funds. (2) Prior year expenditures are not available on a GAAP basis. 128 Page 2 of 2 Table 1 HEALTH Fiscal AND DEBT CAPITAL BICENTENNIAL year WELFARE SERVICE OUTLAY CENTER OTHER TOTAL 1991 $ 146,615 $ 2,299,444 $ 1,415,043 $ 1,665,892 $ 6,36:2,182 $21,708,077 1992 1993 138,733 2,768,149 1,530,150 1,415,537 6,337,016 22,700,293 1994 173,122 2,902,019 1,558,158 1,968,806 4,547,476 21,919,969 525,026 2,772,819 2,796,288 1,720,509 4,53:5,986 24,028,391 (1) Includes general, special revenue and debt service funds. (2) Prior year expenditures are not available on a GAAP basis. 128 City of Salina General Governmental Revenues by Source (1) Last Four Fiscal Years (2) 129 Page 1 of 2 CHARGES Fiscal INTER- FOR SPECIAL year TAXES GOVERNMENTAL SERVICES FINES ASSESSMENTS 1991 $13,019,231 $ 2,623,225 $ 2,682,505 $ 395,447 $ 726,245 1992 13,897,325 2,756,614 2,416,921 347,884 881,231 1993 15,479,559 2,769,828 3,174,444 574,958 940,487 1994 16,153,904 3,305,815 3,089,651 1,020,116 868,202 (1) Includes general, special revenue and debt service funds. (2) Prior year expenditures are not available on a GAAP basis. 129 Page 1 of 2 City of Salina General Governmental Revenues by Source (1) Last Four Fiscal Years (2) Page 2 of 2 Table 2 Fiscal year INTEREST REIMBURSEMENTS MISCELLANEOUS TOTAL 1991 $ 554,636 $ 672,264 $ 455,285 $21,128,838 1992 363,734 35,467 890,109 21,589,285 1993 444,853 55,968 771,233 24,211,330 1994 548,655 46,887 786,802 25,820,032 (1) Includes general, special revenue and debt service funds. (2) Prior year revenues are not available on a GAAP basis. 130 Fiscal year 1991 1992 1993 1994 (1) (2) 131 City of Salina General Governmental Tax Revenues by Source (1) Last Four Fiscal Years (2) PROPERTY TAX $ 5,296,226 5,607,496 5,818,511 6,065,013 Includes general, special revenue and debt service funds„ Prior year expenditures are not available on a GAAP basis:. Table 3 TOTAL $13,019,231 13,897,325 15,479,559 16,153,904 TRANSIENT SALES FRANCHISE GUEST TAX TAX TAX $ 5,916,537 $ 1,509,053 $ 297,415 6,287,513 1,537,171 465,145 7,480,113 1,680,385 500,550 7,769,917 1,756,528 562,446 Includes general, special revenue and debt service funds„ Prior year expenditures are not available on a GAAP basis:. Table 3 TOTAL $13,019,231 13,897,325 15,479,559 16,153,904 132 City of Salina Table 4 Property Tax Levies and Collections Last Ten Fiscal Years RATIO OF PERCENT OF TOTAL TAX TOTAL CURRENT CURRENT DELINQUENT TOTAL COLLECTIONS Fiscal TAX TAX TAXES TAX TAX TO TOTAL year LEVY COLLECTIONS COLLECTED COLLECTIONS COLLECTIONS TAX LEVY 1985 $3,906,988 $3,814,564 97.6 $ 56,209 $3,870,773 99.1 1986 3,951,529 3,906,226 98.9 86,049 3,992,275 101.0 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 4,900,705 100.9 132 City of Salina Assessed and Estimated Actual Value of Property Last Ten Fiscal Years ASSESSED VALUE Fiscal REAL PERSONAL year ESTATE PROPERTY 1985 $ 68,486,970 $ 30,248,415 1986 69,906,890 31,405,020 1987 72,066,960 31,552,430 1988 71,441,070 35,215,115 (1) 1990 125,389,311 13,454,685 1991 134,834,179 14,314,162 1992 135,267,866 16,751,713 (2) 1993 129,632,717 22,447,713 1994 145,239,331 22,678,728 STATE MOTOR ACTUAL ASSESSED VEHICLE TOTAL Table 5 RATIO OF TOTAL ESTIMATED ASSESSED VALUE TO TOTAL ESTIMATED VALUE ACTUAL VALUE $ 9,942,497 $ 26,201,223 $134,879,105 $1,105,009,955 12.21 10,544,260 27,447,177 139,303,347 1,105,:.57,648 12.60 10,884,189 28,786,730 143,290,309 1,147,347,527 12.49 10,765,830 30,847,364 148,269,379 1,160,411,705 12.78 11,094,235 35,096,634 185,034,865 1,026,844,668 18.02 11,208,262 34,515,855 194,872,458 1,075,575,019 18.12 11,545,541 35,803,591 199,368,711 1,105,026,368 18.04 12,849,722 37,569,816 202,499,968 1,175,493,628 17.23 14,272,658 41,805,765 223,996,482 1,314,830,748 17.04 (1) All municipalities in Kansas underwent a complete reappraisal and reclassification of real and personal. property as a result of legislative action, effective January 1, 1989. This legislation reappraised property closer to its estimated market value and caused certain types of property to be reclassified, reduced or eliminated from ad valorem taxation.. (2) On November 3, 1992, voters in the State of Kansas approved a proposition to amend the Kansas Constitut'.:on regarding property classification and assessment rates. This amendment established three new property sub- classificeitions with decreased assessment ratios. 133 This page intentionally left blank 134 City of Salina Property Tax Rates Direct and Overlapping Governments Last Ten Fiscal Years Page 1 of 2 CITY OF SALINA SALINE COUNTY Fiscal Operating Debt Service Total City Operating Debt Service Total. County year Millage Millage Millage Millage Millage Millage 1985 29.750 6.610 36.360 17.917 .239 18.156 1986 28.620 7.740 36.360 20.466 .534 21.000 1987 29.345 7.015 36.360 21.000 -- 21.000 1988 29.513 6.847 36.360 21.000 -- 21.000 1989 35.007 1.353 36.360 23.460 -- 23.460 1990 22.643 7.372 30.015 19.074 -- 19.074 1991 26.357 3.671 30.028 20.122 -- 20.122 1992 22.764 7.064 29.828 20.464 -- 20.464 1993 22.114 7.735 29.849 21.718 -- 21.718 1994 27.910 6.551 29.461 24.562 -- 24.562 134 135 City of Salina Property Tax Rates Direct and Overlapping Governments Last Ten Fiscal Years Page 2 of 2 Table 6 U.S.D. 305 Fiscal Operating Debt Service Total USD 305 year Millage Millage Millage Other Total 1985 70.736 2.214 72.950 5.674 133.140 1986 77.607 2.441 80.048 5.777 143.185 1987 79.779 2.094 81.873 5.790 145.023 1988 84.023 4.756 88.779 6.487 152.626 1989 90.097 5.542 95.639 6.653 162.112 1990 72.065 4.427 76.492 5.599 131.180 1991 76.378 3.094 79.472 5.818 135.440 1992 80.343 3.029 83.372 6.074 139.738 1993 40.301 3.581 43.882 6.557 102.006 1994 37.353 3.332 40.685 8.521 103.229 135 Taxpayer Western Resources Southwestern Bell Warmack, Salina Partnership Schwan's Sales Wal -Mart Stores, Inc. Omaha Hotel, Inc. Sunset Plaza, Inc. Intervest Salina Ltd. Partnership Kangross Partners and Co., Ltd. Union Pacific Railroad City of Salina Principal Taxpayers January 1, 1994 TVDe of Business Gas & Electric Utility Telephone Utility Retail Shopping Mall Pizza Manufacture Discount Retail Stores Motel Retail Developments Dillons Grocery Store K -Mart Railroad (1) Total assessed value for 1994 was $223,996,482. 136 Table 7 1994 Percentage of Assessed Total Assessed Valuation Valuation(1) $ 6,815,109 3.04 5,979,835 2.67 4,864,212 2.17 4,163,368 1.86 2,492,394 1.11 1,498,242 .67 936,979 .42 921,261 .41 8289674 .37 740,743 .33 $29,240,817 13.05 Fiscal year City of Salina Special Assessment Billings and Collections Last Ten Fiscal Years Special Assessment Special Assessment Billings Collections(1) Table 8 Ratio of Total Special Assessments Collections to Total Assessments Levied 1985 $ 843,085.97 $ 696,159 82.57 1986 767,807.20 775,477 101.00 1987 1,067,396.70 768,509 72.00 1988 1,021,973.04 922,020 90.22 1989 927,767.70 911,365 98.23 1990 647,655.40 837,604 129.33 1991 807,451.57 656,104 81.26 1992 721,333.83 808,886 112.14 1993 694,497.21 873,850 125.82 1994 697,015.08 793,190 113.80 (1) Includes prepayments and delinquent collections. 137 Assessed Valuation Legal Debt Margin: Debt limitation - 30% of total Assessed Valuation Debt applicable to limitation: Total bonded debt Less: Revenue bonds Special Assessment bonds Amount Available for repayment of general obligation bonds Total debt applicable to limitation Legal Debt Margin ME City of Salina Computation of Legal Debt Margin December 31, 1994 $223,996,482 67,198,945 48,220,000 36,725,000 3,640,006 797,083 7,057,911 $60,141,034 Table 9 * Amounts expressed in Thousands (1) Per 1980 and 1990 census (2) From Table 5 (3) Amount does not include special assessment bonds and revenue bonds (4) Amount available for repayment of General Obligation bonds 139 City of Salina Table 10 Ratio of Net General Obligation Bonded Debt To Assessed Value and Net General Obligation Bonded Debt Per Capita Ratio of Net Gross Less Debt Net Bonded Debt Net Bonded Fiscal Assessed Bonded Service Bonded To Assessed Debt Per Year Population(1) Value(2) * Debt (3) Fund (4) Debt Value Capita 1985 41,843 $ 134,879 $4,901,460 $ 366,245 $4,535,215 3.36 $ 108.39 1986 41,843 139,303 4,131,854 358,428 3,773,426 2.71 90.18 1987 41,843 143,290 7,069,345 304,244 6,765,101 4.72 161.68 1988 41,843 148,269 6,502,986 351,958 6,151,028 4.15 147.00 1989 41,843 189,326 6,323,473 237,897 6,085,576 3.21 145.44 1990 42,303 185,035 5,801,642 344,280 5,457,362 2.95 129.01 1991 42,303 1949872 8,004,443 304,252 7,700,191 3.95 182.02 1992 42,303 199,369 8,795,864 333,505 8,462,359 4.24 200.04 1993 42,303 202,450 9,478,791 539,887 8,938,904 4.42 211.31 1994 42,303 223,996 7,854,994 797,083 79057,911 3.15 166.84 * Amounts expressed in Thousands (1) Per 1980 and 1990 census (2) From Table 5 (3) Amount does not include special assessment bonds and revenue bonds (4) Amount available for repayment of General Obligation bonds 139 City of Salina Ratio of Annual Debt Service Expenditures For General Obligation Bonded Debt(1) To Total General Governmental Expenditures Last Ten Fiscal Years Table 11 Ratio of Debt Service to General Governmental Expenditures(3) 6.21 6.95 9.37 7.60 (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. 140 Total Total General Fiscal Debt Governmental Year Principal Interest(2) Service Expenditures(3) 1985 $ 736,843 $ 372,886 $ 1,109,729 $ 1986 842,580 332,785 1,175,365 1987 770,134 302,401 1,072,535 1988 991,258 488,387 1,4799645 1989 972,202 442,575 19414,777 1990 9679434 431,955 1,399,389 1991 949,898 398,197 1,348,095 21,708,077 1992 1,037,112 541,560 1,578,672 22,700,293 1993 1,556,156 497,961 2,054,117 21,919,969 1994 1,459,185 368,250 1,827,435 24,028,391 Table 11 Ratio of Debt Service to General Governmental Expenditures(3) 6.21 6.95 9.37 7.60 (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. 140 141 City of Salina Table 12 Computation of Direct and Overlapping Bonded Debt General Obligation Bonds December 31, 1994 Net General Percentage Amount Obligation Applicable Applicable Bonded Debt To To Jurisdiction Outstanding City of Salina City of Salina Direct: City of Salina $ 7,057,911 100.00% $ 7,057,911 Overlapping: Salina Airport Authority 2,985,000 100.00 2,985,000 USD 305 4,285,000 92.20 3,950,700 Total $14,327,911 $13,993,611 141 City of Salina Revenue Bond Coverage Water and Sewer Fund Last Ten Fiscal Years (1) Excludes interest income (2) Excludes depreciation 142 Debt Service Requirements Principal Interest Total Net Revenue Fiscal Gross Operating Available for Year Revenues(1) Expenses(2) Debt Service 1985 $3,579,950 $2,958,751 $ 621,199 1986 3,699,736 39187,223 512,513 1987 4,094,841 3,211,266 883,575 1988 5,488,165 3,420,799 2,067,366 1989 6,300,264 3,759,534 2,540,730 1990 6,158,140 49002,486 2,155,654 1991 6,774,391 49270,897 2,503,494 1992 7,131,392 4,371,446 2,759,946 1993 8,171,545 49350,228 3,821,317 1994 9,402,506 5,266,865 4,135,641 (1) Excludes interest income (2) Excludes depreciation 142 Debt Service Requirements Principal Interest Total $ 490,000 $ 207,306 $ 697,306 310,000 1819843 491,843 210,000 208,459 418,459 300,000 352,119 652,119 390,000 542,751 932,751 275,000 519,009 794,009 220,000 542,944 7629944 265,000 517,915 782,915 670,000 1,681,527 2,351,527 805,000 1,614,122 2,419,122 Table 13 Coverage .88 1.04 2.11 3.17 2.72 2.71 3.28 3.53 1.63 1.71 City of Salina Table 14 Property Value, Construction and Bank Deposits Last Ten Fiscal Years *Amounts expressed in thousands. (1) Kansas Statistical Abstract 143 Total Bank Fiscal Property Permits Estimated Deposits (1) Year Value* Issued Valuation (Thousands) 1985 $ 1,105,010 370 $20,687,418 $ 340,604 1986 1,105,157 441 34,679,250 352,155 1987 1,147,348 470 17,391,757 360,908 1988 1,160,412 457 15,426,410 346,971 1989 1,037,898 490 18,851,000 372,626 1990 19026,845 497 36,469,096 443,020 1991 1,075,575 562 22,6659785 484,783 1992 1,105,026 598 25,283,947 500,297 1993 1,175,494 628 36,411,632 589,067 1994 1,314,831 694 38,667,261 N/A *Amounts expressed in thousands. (1) Kansas Statistical Abstract 143 Data Sources: (1) 1980 and 1990 Census (2) U.S. Bureau of Economic Analysis (3) Wood and Poole Economics, Inc. (4) U.S.D. 305 (5) Kansas Department of Human Resources 144 Table 15 City of Salina Demographic Statistics Last Nine Fiscal Years Per Fiscal Capita Median School Unemployment Year Population Income Age Enrollment Rate (1) (2) (3) (4) (5) 1986 41,843 $ 14,515 31.8 7,024 6.5 1987 41,843 15,166 32.0 7,008 5.8 1988 419843 16,398 32.2 7,054 5.4 1989 41,843 17,509 32.6 7,115 4.4 1990 42,303 199002 33.1 7,333 4.1 1991 42,303 19,313 32.4 7,489 4.2 1992 42,303 20,273 32.7 7,687 3.8 1993 42,303 20,753 33.3 7,661 4.6 1994 42,303 21,564 33.7 7,243 4.6 Data Sources: (1) 1980 and 1990 Census (2) U.S. Bureau of Economic Analysis (3) Wood and Poole Economics, Inc. (4) U.S.D. 305 (5) Kansas Department of Human Resources 144 Table 15 SINGLE AUDIT SECTION This page intentionally left blank HOME OFFICE: P. O. BOX 1100 SALINA, KANSAS 67402 -1100 913. 825 -1561 KENNEDY AND COE, LLC CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITORS' REPORT ON SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE To the Mayor and The Board of City Commissioners City of Salina, Kansas: OFFICES IN KANSAS NEBRASKA OKLAHOMA COLORADO We have audited the general purpose financial statements of the City of Salina, Kansas, for the year ended December 31, 1994, and have issued our ,report thereon dated May 25, 1995, which expressed reliance on reports of other auditors. 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 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 oil the general purpose financial statements of the City of Salina, Kansas, takers as a whole. The accompanying Schedule of Federal Financial Assistance, which does not include Federal Financial Assistance received by the Salina Housing Authority and Salina Airport Authority, 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. Salina, Kansas May 25, 199.5 Respectfully submitted, MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 145 SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS CITY OF SALINA SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE For the Year Ended December 31, 1994 Federal December 31 Federal Grantor /Pass- through CFDA January 1, Revenue , Grantor Program Title Number 1994 Recognized Expenditures 1994 MAJOR PROGRAM Environmental Protection Agency Construction Grant for Wastewater Treatment Works (direct assistance) Project No.C20 1231 01 OTHER FEDERAL ASSISTANCE U.S.Department of Housing and Urban Development Community Development Block Grant/ Small Cities Program (passed through Kansas Department of Commerce) Housing Grant No. 93 -CH -216 Emergency Shelter Grants (passed through the Kansas Department of Social and Rehabilitation Services) Fair Housing Assistance (direct assistance) Contract No. FF207K917008 U.S.Department of Commerce Economic Development Administration Grant for Public Works and Development Facilities (direct assistance) Project No. 05 -01 -02531 U.S.Department of Justice Drug Control and System Improvement - Formula Grant (Passed Through Kansas Department of Administration) Grant No. 95 -63 Grant No. 94 -65 Grant No. 94 -67 66.418 14.219 $ 0 $ 646,410 $ 646,410 $ 0 0 268,116 268,116 0 14.231 0 15,399 15,399 0 0 19,500 19,500 0 0 303,015 303,015 0 11.300 16.579 0 2,678 2,678 0 0 38,170 38,170 0 0 970 970 0 0 36,742 36,742 0 0 75,882 75,882 0 U.S.Department of Transportation National Highway Traffic Safety Grant (passed through Kansas Department of Transportation) 20.600 Grant No. AL 94/96- 95 -01 -07 0 44,515 44,515 0 Grant No. AL 94/96- 94 -01 -07 0 189,258 189,258 0 0 233,773 213,773 0 TOTAL OTHER FEDERAL ASSISTANCE 0 6159348 615,348 0 TOTALS $ 0 $ 1,261,758 $1,261,758 $ 0 This schedule does not include any federal financial assistance received by the Salina Housing Authority and Salina Airport Authority, which are considered to be discrete component units of the City of Salina. The federal financial assistance of the Salina Housing Authority and Salina Airport Authority has been audited and reported by other auditors. 146 KENNEDY AND COE, LLC CERTIFIED PUBLIC ACCOUNTANTS OFFICES IN HOME OFFICE: KANSAS P. O. BOX 1100 NEBRASKA SALINA, KANSAS 67402 -1100 OKLAHOMA 913825-1561 COLORADO INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL STRUCTURE BASED ON AN AUDIT OF GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Mayor and The Board of 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, 1994, and have issued our report thereon dated May 25, 1995, which expressed reliance on reports of 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, 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 of the primary government portion of the general purpose financial statements for the year ended December 31, 1994, we considered the City's internal control structure in order to determine our auditing procedures for the purpose of expressing; our opinion on the City's general purpose financial statements and not to provide assurance on the internal control structure. 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 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. MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE 147 SECTION OF THE AICPA DIVISION FOR CPA FIRMS For the purpose of this report, we have classified the significant internal control structure policies and procedures in the following categories: Accounting Controls I. Cash and investment balances 2. Revenue / receipts 3. Purchases / disbursements 4. External financial reporting 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. 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. This report is intended for the information of the Mayor, Board of City Commissioners and management of the City of Salina, Kansas. However, this report is a matter of public record and its distribution is not limited. Salina, Kansas May 25, 1995 iM Respectfully submitted, HOME OFFICE: P. O. BOX 1100 SALINA, KANSAS 67402 -1100 913. 825 -1561 KENNEDY AND COE, LLC CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITORS' REPORT ON COMPLIANCE BASED ON AN AUDIT OF GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Mayor and The Board of City Commissioners City of Salina, Kansas: OFFICES IN KANSAS NEBRASKA OKLAHOMA COLORADO We have audited the general purpose financial statements of the City of Salina, Kansas, as of and for the year ended December 31, 1994, and have issued our report thereon dated May 25, 1995, which expressed reliance on reports of 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, 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's 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 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 indicate that, with respect to the items tested, the City of Salina, Kansas, complied, in all material respects, with the provisions referred to in the preceding paragraph. 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 provisions. We noted certain instances of noncompliance, as described in Note 19, that do not result in misstatements in the financial statements. This report is intended for the information of the Mayor, Board of City Commissioners and management of the City of Salina, Kansas. However, this report is a matter of public record and its distribution is not limited. Respectfully submitted Salina, Kansas May 25, 1995 '°� �" - L c" MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE 149 SECTION OF THE AICPA DIVISION FOR CPA FIRMS This page intentionally left blank HOME OFFICE: P. O. BOX 1100 SALINA, KANSAS 67402 -1100 913 - 8251561 KENNEDY AND COE, LLC CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS To the Mayor and The Board of City Commissioners City of Salina, Kansas: OFFICES IN KANSAS NEBRASKA OKLAHOMA COLORADO We have audited the general purpose financial statements of the City of Salina, Kansas for the year ended December 31, 1994, and have issued our report thereon dated May 25, 1995, which expressed reliance on the reports of other auditors. We have also audited the compliance of the City with requirements applicable to its major federal financial assistance programs, as identified in the accompanying schedule of Federal Financial Assistance, and have issued our report thereon dated May 25, 1995. We conducted our audits in accordance with generally accepted auditing standards, Government Auditing standards, issued by the Comptroller General of the United States; and the Office of Management and Budget (OMB) 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 and whether the City complied with laws and regulations, noncompliance with which would be material to a major federal financial assistance program. In planning and performing our audits for the year ended December 31, 1994, we considered the internal control structure of the City in order to determine our auditing procedures for the purpose of expressing our opinions on the general purpose financial statements and on the compliance of the City with requirements applicable to major programs and to report on the internal control structure 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, which are identified in the accompanying Schedule of Federal Financial Assistance. 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 25, 1995. The management of the City 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, 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 MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 150 SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS 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: Accounting Controls 1. Cash and investment balances 2. Revenue / receipts 3. Purchases / disbursements 4. External financial reporting Controls Used in Administering Compliance with Laws and Regulations 1. General Controls a. Political activity b. Davis -Bacon Act C. Civil rights d. Cash management e. Federal financial reports f. Allowable costs g. Drug -free Workplace Act 2. Specific Controls a. Types of costs allowed or unallowed b. Matching C. Special tests and provisions 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, 1994, the City expended 51% of its total federal financial assistance under major federal financials assistance programs. 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 City's major federal financial assistance program, which is identified in the accompanying Schedule of Federal Financial Assistance. 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. 151 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 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 its operation that we consider to be material weaknesses as defined above. This report is intended for the information of the Mayor, Board of City Commissioners and management of the City of Salina, Kansas. However, this report is a matter of public record and its distribution is not limited. Salina, Kansas May 25, 1995 Respectfully submitted, 152 This page intentionally left blank KENNEDY AND COE, LLC CERTIFIED PUBLIC ACCOUNTANTS applied procedures to test the compliance of the City OFFICES IN HOME OFFICE: KANSAS P. O. BOX 1100 NEBRASKA SALINA, KANSAS 67402 -1100 OKLAHOMA 913 -825 -1561 COLORADO INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS To the Mayor and The Board of 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, 19,94, and have issued our report thereon dated May 25, 1995, which expressed reliance on reports of other auditors. We have applied procedures to test the compliance of the City of Salina, Kansas, with the following requirements applicable to each of its federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended December 31, 1994: political activity, Davis -Bacon Act, civil rights, cash management, federal financial reports, allowable costs, and Drug -Free Workplace Act. We did not apply procedures to the federal programs of the Salina Housing Authority and Salina Airport Authority which were audited and reported by other auditors. 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's 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. Also, the results of our procedures did not disclose any immaterial instances of noncompliance with those requirements. This report is intended for the information of the Mayor, Board of City Commissioners and management of the City of Salina, Kansas. However, this report is a matter of public record and its distribution is not limited. Respectfully submitted, Salina, Kansas f� May 25, 1995 L G C MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 153 SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS KENNEDY AND COE, LLC CERTIFIED PUBLIC ACCOUNTANTS OFFICES IN HOME OFFICE: KANSAS P. O. BOX 1100 NEBRASKA SALINA, KANSAS 67402 -1100 OKLAHOMA 913625 -1561 COLORADO INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS To the Mayor and The Board of City Commissioners City of Salina, Kansas: We have audited the financial statements of the City of Salina, Kansas, as of and for the year ended December 31, 1994, and have issued our report thereon dated May 25, 1995, which expressed reliance on reports of other auditors. We have also audited the City's compliance with the requirements governing types of costs allowed or unallowed; matching; special tests and provisions and claims for advances and reimbursements that are applicable to its major federal financial assistance program, which is identified in the accompanying Schedule of Federal Financial Assistance, for the year ended ]December 31, 1994, except that we did not audit the federal programs of the Salina Housing Authority and Salina Airport Authority which were audited and reported by other auditors. The management of the City is responsible for the City's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit. We conducted our audit of compliance with those requirements in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States; and the Office of Management and Budget (OMB) Circular A -128, "Audits and 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 material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion. The results of our audit procedures did not disclose any immaterial instances of noncompliance with the requirements referred to above. In our opinion, the City of Salina, Kansas with the requirements governing types matching; special tests and provisions; reimbursements that are applicable to its program, which is identified in the Schedu for the year ended December 31, 1994. complied, in all material respects, of costs allowed or unallowed ; and claims for advances and major federal financial assistance le of Federal Financial Assistance, MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 154 SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS This report is intended for the information of the Mayor, Board of City Commissioners and management of the City of Salina, Kansas. However, this report is a matter of public record and its distribution is not limited. Salina, Kansas May 25, 1995 Respectfully submitted, 155 CITY OF SALINA Salina, Kansas SCHEDULE OF INDEPENDENT AUDITORS' FINDINGS AND QUESTIONED COSTS Year Ended December 31, 1994 Program Findings /Noncompliance Questioned'. Costs None This schedule does not include any findings or questioned costs of the Salina Housing Authority and Salina Airport Authority, which are considered to be discrete component units of the City of Salina. The federal Financial assistance of the Salina Housing Authority and Salina Airport Authority has been audited and reported by other auditors. 156 KENNEDY AND COE , LLC R MICHAEL BEATTY.C.P.A. CERTIFIED PUBLIC ACCOUNTANTS KURDS G.SIEMERS,C.P.A. CHIEF EXECUTIVE OFFICER UNITED BUILDING P.O.BOX 1100 MEMBER-IN-CHARGE P.O.BOX 1100.SAUNA KS 67402-1100 SAUNA,KANSAS 87402-1100 PHONE: (9131825-1561 ALLEN WEBBER.C.P.A..MEMBER OFFICES FAX:(913)825-5371 GERALD L.HUNTER C.P.A..MEMBER KANSAS: DALE A.HEVSZEL.C.P.A..MEMBER ANTHONY COLBY SHANNON L.BUCHANAN,C.P.A..MEMBER CONCORDIA GARDEN CITY SHARON K.SMITH.CPA.MEMBER GOOOLAND GREAT BEND GARY 1.RODGERS.J.D..C.P.A..MEMBER MARYSVILE OVERLAND PARK PRATT SAUNA SCOTT CITY SMITH CENTER DAVID J.MILLS.C.P.A..PRINCIPAL TOPEKA WICHITA - COLORADO: September 21, 1994 JOHN W.PODS C.P.A.DEWED! LAMAR WMY L.M.MERIT.C.P.A.IIETIREDI MONTE VISTA PALL A MOTT.CPA(RETIRED) ADLEY OKLAHOMA; NEBRASKA: DON P.LIMERICK CCPA(RETIRED)) ALVA MCCOOK ROBERT D.WIBLR,CPA(RETIRED) The Honorable Mayor and The City Commissioners I) City of Salina I Salina, Kansas O ` We propose to audit the general purpose financial statements of the City of Salina, Kansas as of and for the year ended December 31, 1994. Also, the financial statements document will include the following additional information that will be subjected to the auditing procedures applied in our audit of the general purpose financial statements. 1. Schedule of Receipts, Expenditures, and Changes in Unencumbered Cash Compared with Budget (Statutory Basis) - By Fund 2. Combining and Individual Fund and Account Group Statements - By Fund Type 3. Schedule of Federal Financial Assistance We understand the Finance Department will prepare a Comprehensive Annual Financial Report (CAFR) for the City for the year 1994. Such report would include, in addition to the general purpose financial statements and additional information described above, certain statistical information and an introductory section. Such statistical information and the introductory section will not be subjected to auditing procedures. The scope of our audit will include all funds of the City except: Salina Airport Authority Salina Housing Authority Salina - Saline County Board of Health Saline County - City Building Authority It is our understanding that the above organizations have contracted for separate audits of their operations. The Salina Airport Authority and the Salina Housing Authority are considered component units of the City for financial reporting purposes under the provisions of Statement No. 14 of the Governmental Accounting Standards Board, "The Financial Reporting Entity." Accordingly, the financial information of the Salina Airport Authority and the Salina Housing Authority will be included in the City's CAFR for the year 1994. Since these organizations have contracted for separate audits, we will make reference to the reports of the other auditors in our opinion on the City's financial statements. MEMBERS OF:AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS The Honorable Mayor and The City Commissioners City of Salina September 21, 1994 Page 2 Salina-Saline County Board of Health and Saline County-City Building Authority are joint ventures under the provisions of Statement No. 14. Accordingly, appropriate disclosures are to be included in the notes to financial statements regarding these entities. In addition, the Salina Public Library, is considered a related organization under the provisions of Statement No. 14 which will require additional disclosures in the notes to financial statements. Our audit will be a Single Audit conducted in accordance with generally accepted auditing standards; the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the Single Audit Act of 1984; the provisions of OMB Circular A-128, "Audits of State and Local Governments;" and the Kansas Municipal Audit Guide, and will include tests of the accounting records of the City of Salina and other procedures we consider necessary to enable us to express an opinion as to whether the financial statements are fairly presented, in all material respects, in conformity with generally accepted accounting principles and to report on the Schedule of Federal Financial Assistance and on the City's compliance with laws and regulations and its internal controls as required for a Single Audit. It is our understanding that the funds subject to OMB Circular A-128 requirements for 1994 are (1) Environmental Protection Agency Grant - Construction Grant for Wastewater Treatment Works, (2) Community Development Block Grant - Small Cities Program, (3) Economic Development Administration Grant - Boundary Roads at KSU-Salina, (4) Certain Police Grants, (5) Fair Housing Assistance, and (6) National Endowment for the Arts - Museum. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, creditors, and financial institutions. At the conclusion of our audit, we will also request certain written representations from management about the financial statements and related matters. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. Also, we will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. As required by the Single Audit Act of 1984, our audit will include tests of transactions related to federal assistance programs for compliance with applicable laws and regulations. However, because of the concept of reasonable assurance and because we will not perform a detailed examination of all transactions, there is a risk that material errors, irregularities, or illegal acts, including fraud and defalcations, may exist and not be detected by us. We will advise you, however, of any matters of that nature that come to our attention, and will include such matters in the reports required for a Single Audit. We understand that you will provide us with the basic information required for our audit and that you are responsible for the accuracy and completeness of that information. We may advise you about appropriate accounting principles and their application and may assist in the preparation of your financial statements, but the responsibility for the financial statements remains with you. This responsibility includes the maintenance of adequate records and related internal control structure policies and procedures, the selection and application of accounting principles, and the safeguarding of assets. • • The Honorable Mayor and The City Commissioners City of Salina September 21, 1994 Page 3 We anticipate that management and employees will cooperate in any way reasonable in furnishing information, contracts, and other documents, preparing schedules and other analyses, and locating supporting documents in connection with the audit. In order to facilitate the efficient conduct of our work, we will provide the Director of Finance our requirements for audit documentation, schedules and analyses, and develop a schedule for when such information is to be available. We also understand that the Finance Department will prepare the financial statements and supplemental information, complete with applicable notes to financial statements, in a format suitable for publication. Management has asked us to give you a maximum fee for the audit of the financial statements for the year ended December 31, 1994, based on the assumption that no accounting or bookkeeping services are required in connection with the engagement and our services are comprised of auditing the financial statements as prepared by the Finance Department. We anticipate that the financial statements and supplemental information will be ready for publication, complete with appropriate footnotes and other disclosures required by generally accepted accounting principles for governments as of April 15, 1995, at which time we will commence our final field work. Our fee for services rendered for the engagement described in the preceding paragraphs will be computed at our standard billing rates. However, our fee for this engagement will not exceed $25,000. In the event that circumstances would arise that would cause management to request additional services in connection with the audit (such as preparation of requested schedules or analyses, preparation of estimates required for the financial statements and related adjustments, application of accounting principles, drafting of individual financial statements or notes to financial statements), such services will be provided at our standard hourly rates; the average hourly rate charged for such requested services will not exceed $75.00. We will give the assistance needed to help the Finance Department personnel perform any of these types of tasks; however, such assistance will be considered outside the maximum audit fee. We appreciate the opportunity to be of service to the City of Salina and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. Very truly yours, Certified PuHffc Accountants The Honorable Mayor and The City Commissioners City of Salina September 21, 1994 Page 4 This letter correctly sets forth the understanding of the City of Salina, Kansas. Accepted this:(the day of`' / aQ , 1994. d , I /e. "(!yor- CJ of Salina, ansas (perk -ph/ of Salina, Kt as STATE OF KANSAS ' _ __ DEPARTMENT OF ADMINISTRATION _ _ DIVISION OF ACCOUNTS AND REPORTS July 14, 1994 KENNEDY & COE LLC PO BOX 1100 SALINA KS 67402-1100 In regard to the audit of : CITY OF SALINA The following described audit report has been filed as a public record in the office of the Director of Accounts and Reports as required by K.S.A. 75-1124 . Audit Period (Year Ended ) : 931231 Date Received in This Office: 940714 Certified Public Accountant in Charge of Audit: DAVID J MILLS CPA ID (Cert. ) No. : 2682 Very truly yours, James R. Cobler, Director Division of Accounts and Reports l by _v'"`'i' eza4,2„ Chief , Municipal Accounting Section This copy to be attached to voucher and filed with clerk of municipality. AR-102 ( 10-1-87) KENNEDY AND COE , LLC R LBO(AEL BEATTY,CPA CERTIFIED PUBLIC ACCOUNTANTS KIPRIS O.SIEMERS,CPA CHEF IDOCUOVE OFFICER UNITED BUILDING P.O.BOX 1100 MEINER4N-CHARGE P.O.BOX 110G.SAUNA.KS 87402-1100 SALINA.KANSAS 67402-1100 PHONE: (913)825-1581 AUDI WEBBER.CPA.MEMBER OFFICES FAX:(913)825-5371 GERALD L.HNTER,CPA,MEMBER KANSAS: DALE A.FEVSZEL,C.PA,MEMBER MTKYJY COLBY SHAIN N L.BUCHAIAN,C.PA,MEMBER CONCORDN WIDEN CITY SIWRON K.SMTTH,CPA,MEMBER GOODLAND GREAT BOO GARY L.RODGERS.J.D..C.PA.MEMBER MNYSVRLE PRATT SAL_ SCOTT CITY SMITH CORER TOPEKA R.BARTON FARMER,PRPCPAL WICHITA DAVID J.MILLS,CPA,PRINCIPAL cOLOFLWC: July 12, 1994 _ ONO WRAY JON W.PODS,C.PA(RETIRED) MC TE VISTA Lit MERTZ,C.PA(RETIRED) OKLAHOMA: NEBRASKA PRA A ACTT,CPA(RETIRED) ALVA MCCOOK ADLEY E.JOHNSON.C.PA(RETIRED) DON P.OEDERICN CPA(RETIRED) ROBERT D.WILPLIR,CPA(RETIRED) Municipal al nt of Administration Section #S, D Department of Administration Division of Accounts and Reports Room 253, Landon State Office Bldg. _ir Topeka, KS 66612-1248 Enclosed please find two copies of the Comprehensive Annual Financial Report of the City of Salina, Kansas, for the year ended December 31,.1993, and our reports thereon. We understand one copy of the CAFR will be forwarded to the National Clearinghouse for Single Audit Reports. Very truly yours, Zaaab Certified Public Accountant DJ M/tlb/s52920/4tbltr.doc Enc. Copy: Mr. Robert K. Biles Director of Finance 300 West Ash Salina, KS 67401 MEMBERS OF:AMERICAN INSTITUTE OF CERTIFlED PUBLIC ACCOUNTANTS SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS CITY OF SALINA 0 REQUEST FOR COMMISSION ACTION DATE TIME 9/26/94 4:00P.M. AGENDA SECTION: ORIGINATING DEPARTMENT: APPROVED FOR NO. AGENDA: 8 Finance ITEM: NO. 2 Robert K. Biles � ' BY: in BY: Resolution Number 94-4798, authorizing the Mayor to execute an agreement between the City of Salina and Kennedy and Coe, Certified Public Accountants, for an audit of City records for the year ending December 31, 1994. Kennedy and Coe has presented the City - with a proposal to audit the 1994 financial statements. The proposal reflects the work required for Kennedy and Coe to give an opinion on our financial statements when presented in accordance with generally accepted accounting principles (GAAP) . Under this proposal, City staff will be responsible for the preparation of numerous workpapers for the auditors. City staff will also be responsible for the preparation of GAAP and statutory basis financial statements and the . accompanying footnotes. The proposal establishes a maximum fee of $25,000. Should city staff require • assistance in preparation of some schedules or footnotes, Kennedy and Coe will perform the work at a rate not to exceed $75 per hour. As this is outside the audit fee, we will do our best to minimize the time required. Kennedy and Coe's proposal is attached. Kennedy and Coe representatives will be in attendance to discuss their proposal. Recommended Action Adopt Resolution Number 94-4798, authorizing the Mayor to execute an agreement between the City of Salina and Kennedy and Coe for an audit of the 1994 financial statements in an amount not to exceed $25,000. COMMISSION ACTION MOTION BY SECOND BY THAT: • RESOLUTION NUMBER 94-4798 A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE AND THE CITY CLERK TO ATTEST AN AGREEMENT BETWEEN THE CITY OF SALINA, KANSAS AND KENNEDY AND COE, CERTIFIED PUBLIC ACCOUNTANTS, FOR. AN AUDIT OF CITY RECORDS FOR THE YEAR ENDING DECEMBER 31, 1994, :1 FOR A COST NOT TO EXCEED TWENTY-FIVE THOUSAND DOLLARS ($25,000). BE IT RESOLVED by the Governing Body of the City of Salina, 'I Kansas: Section 1 . That the Mayor and City Clerk of the City of Salina, . 1 Kansas are hereby authorized to execute an agreement between the City ofl Salina, Kansas and Kennedy and Coe, Certified Public Accountants, for an audit of city records for the year ending December 31 , 1994, at a cost not to exceed twenty-five thousand dollars ($25,000) . Adopted by the Board of Commissioners and signed by the Mayor this ii 26th day of September, 1994. Joseph A. Warner, Mayor :: (SEAL) ATTEST: ! Judy D. Long, City Clerk I ri Ii • • • KENNEDY AND COE , LLC R MICHAEL NATTY.C.P.A. CERTIFIED PUBUC ACCOUNTANTS CKEf EXECUTIVE OFFICER [NT]O.0040121. ® UNITED SDK 1100,SAUNA.ES 07401.1 IDUNITED BURRING P.O.BOX 1100 uEMBEAnA CPM11pf SAUNA.KANSAS 67402.1100 OFFICES PHONE: 19131025-1561 ALLFJI WEBBFR C.P.A..•111411E, KANSAS: FAX:1917)625.5371 GERALD L HUNTER.C./1.MEMBER ANTHONY COLEY DALI A.HEUSEL CPA..MEMBER CDHCOIIDU CITY 9ME0/DN L.BUCHANAN,C.PA..MEMBER GO000 GREAT CI SHARON K.SMITH.C.P.A..MEMBER UARYSVILy( OVEPUED PAY GARY L RODG[RB,ID..C.P.A..MEMOIR — PRATT SAUNA SCOTT CITY SMITH CENTER TOPEKA WICHITA DAVID J.MILL CAA..PRINCIPAL — COLORADO September 21, 1994 N LAMM WIMP Y JOHN W.NOS C.P.A.ItETUEDI HOME VISTA IN.MERIT.C.P.A.IRETIIE01 PALA A.1.1017.. C PA IRETREOI AO OKLAHOMA' NEBRASKALOUT E.J0111304.CPA MIMEO) KVA yY, OOR 0.ML&CON P. C.PA IREEIRE01 ROBERT 0.WILBUR.CPA(RETIRED/ The Honorable Mayor and The City Commissioners City of Salina Salina, Kansas We propose to audit the general purpose financial statements of the City of Salina, Kansas as of and for the year ended December 31, 1994. Also, the financial statements document will include the following additional information that will be subjected to the auditing procedures applied in our audit of the general purpose financial statements. 1. Schedule of Receipts, Expenditures, and Changes in Unencumbered Cash Compared with Budget (Statutory Basis) - By Fund • 2. Combining and Individual Fund and Account Group Statements - By Fund Type 3. Schedule of Federal Financial Assistance We understand the Finance Department will prepare a Comprehensive Annual Financial Report (CAFR) for the City for the year 1994. Such report would include, in addition to the general purpose financial statements and additional information described above, certain statistical information and an introductory section. Such statistical information and the introductory section will not be subjected to auditing procedures. The scope of our audit will include all funds of the City except: Salina Airport Authority Salina Housing Authority Salina - Saline County Board of Health Saline County- City Building Authority It is our understanding that the above organizations have contracted for separate audits of their operations. The Salina Airport Authority and the Salina Housing Authority are considered component units of the City for financial reporting purposes under the provisions of Statement No. 14 of the Governmental Accounting Standards Board, "The Financial Reporting Entity." Accordingly, the financial information of the Salina Airport Authority and the Salina Housing Authority will be included in the City's CAFR for the year 1994. Since these organizations have contracted for separate audits, we will make reference ® to the reports of the other auditors in our opinion on the City's financial statements. MEMBERS OF:AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS • The Honorable Mayor and The City Commissioners City of Salina September 21, 1994 Page 2 Salina-Saline County Board of Health and Saline County-City Building Authority are joint ventures under the provisions of Statement No. 14. Accordingly, appropriate disclosures are to be included in the notes to financial statements regarding these entities. In addition, the Salina Public Library, is considered a related organization under the provisions of Statement No. 14 which will require additional disclosures in the notes to financial statements. Our audit will be a Single Audit conducted in accordance with generally accepted auditing standards; the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the Single Audit Act of 1984; the provisions of OMB Circular A-128, "Audits of State and Local Governments;" and the Kansas Municipal Audit Guide, and will include tests of the accounting records of the City of Salina and other procedures we consider necessary to enable us to express an opinion as to whether the financial statements are fairly presented, in all material respects, in conformity with generally accepted accounting principles and to report on the Schedule of Federal Financial Assistance and on the City's compliance with laws and regulations and its internal controls as required for a Single Audit. It is our understanding that the funds subject to OMB Circular A-128 requirements for 1994 are (1) Environmental Protection Agency Grant - Construction Grant for Wastewater Treatment Works, (2) Community Development Block Grant - Small Cities Program, (3) Economic Development Administration Grant - Boundary Roads at KSU-Salina, (4) Certain Police Grants, (5) Fair Housing Assistance, and (6) National Endowment for the Arts - Museum. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, creditors, and financial institutions. At the conclusion of our audit, we will also request certain written representations from management about the financial statements and related matters. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. Also, we will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. As required by the Single Audit Act of 1984, our audit will include tests of transactions related to federal assistance programs for compliance with applicable laws and regulations. However, because of the concept of reasonable assurance and because we will not perform a detailed examination of all transactions, there is a risk that material errors, irregularities, or illegal acts, including fraud and defalcations, may exist and not be detected by us. We will advise you, however, of any matters of that nature that come to our attention, and will include such matters in the reports required for a Single Audit. We understand that you will provide us with the basic information required for our audit and that you are responsible for the accuracy and completeness of that information. We may advise you about appropriate accounting principles and their application and may assist in the preparation of your financial statements, but the responsibility for the financial statements remains with you. This responsibility includes the maintenance of adequate records and related internal control structure policies and procedures, the selection and application of accounting principles, and the safeguarding ®of assets. _ • • • The Honorable Mayor • and The City Commissioners ® City of Salina September21, 1994 Page 3 We anticipate that management and employees will cooperate in any way reasonable in furnishing information, contracts, and other documents, preparing schedules and other analyses, and locating supporting documents in connection with the audit. In order to facilitate the efficient conduct of our work, we will provide the Director of Finance our requirements for audit documentation, schedules and analyses, and develop a schedule for when such information is to be available. We also understand that the Finance Department will prepare the financial statements and supplemental information, complete with applicable notes to financial statements, in a format suitable for publication. Management has asked us to give you a maximum fee for the audit of the financial statements for the year ended December 31, 1994, based on the assumption that no accounting or bookkeeping services are required in connection with the engagement and our services are comprised of auditing the financial statements as prepared by the Finance Department. We anticipate that the financial statements and supplemental information will be ready for publication, complete with appropriate footnotes and other disclosures required by generally accepted accounting principles for governments as of April 15, 1995, at which time we will commence our final field work. Our fee for services rendered for the engagement described in the preceding paragraphs will be computed at our standard billing rates. However, our fee for this engagement will not exceed $25,000. ® In the event that circumstances would arise that would cause management to request additional services in connection with the audit (such as preparation of requested schedules or analyses, preparation of estimates required for the financial statements and related adjustments, application of accounting principles, drafting of individual financial statements or notes to financial statements), such services will be provided at our standard hourly rates; the average hourly rate charged for such requested services will not exceed $75.00. We will give the assistance needed to help the Finance Department personnel perform any of these types of tasks; however, such assistance will be considered outside the maximum audit fee. We appreciate the opportunity to be of service to the City of Salina and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. Very truly yours, Certified Public ccountants • The Honorable Mayor and The City Commissioners ® City of Salina September21, 1994 Page 4 This letter correctly sets forth the understanding of the City of Salina, Kansas. Accepted this_ day of , 1994. Mayor- City of Salina, Kansas City Clerk - City of Salina, Kansas • •