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Audit - 1992 CITY OF SALINA, KANSAS Comprehensive Annual Financial Report For the fiscal year ended December 31, 1~192 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, 1992 TABLE OF CONTENTS Pag~ INTRODUCTORY SECTION Letter of Transmittal Organizational Chart List of Principal Officials 1 - 7 8 9 FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT 10 - 11 GENERAL PURPOSE FINANCIAL STATEMENTS: Combined Balance Sheet-All Fund Types and Account Groups 12 Combined Statement of Revenues, Expenditures and Changes in Fund Balances-All Governmental Fund Types 13 Combined Statement of Receipts, Expenditures and Changes in Unencumbered Cash-Budget and Actual-Budgetary Basis-General Fund, Special Revenue Funds and Debt Service Funds Jl4 Combined Statement of Revenues, Expenses and Changes in Retained Earnings/Fund Balances- All Proprietary Fund Types and Similar Trust Funds 15 Combined Statement of Cash Flows-All Proprietary Fund Types and Similar Trust Funds 16 - 17 Notes to the Financial Statements 18 - 40 COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES GOVERNMENTAL TYPE FUNDS: General Fund: Comparative Balance Sheets Comparative Statement of Revenue, Expenditures and Changes in Fund Balances Statement of Receipts, Expenditures and Changes in Unencumbered Cash - Budget and Actual - Budgetary Basis Special Revenue Funds: Combining Balance Sheet 45 - 46 Combining Statement of Revenue, Expenditures and Changes in Fund Balances 47 - 48 Statements of Receipts, Expenditures and Changes in Unencumbered Cash - Budgeted Funds Non-Budgeted Funds Debt Service Fund: Comparative Balance Sheets Comparative Statement of Revenues, Expenditures and Changes in Fund Balances Statements of Receipts, Expenditures and Changes in Unencumbered Cash - Budgetary Basis Capital Project Funds: Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balances Statements of Receipts, Expenditures and Changes in Unencumbered Cash - Budgetary Basis (Non-Budgeted Funds) PROPRIETARY FUNDS: Enterprise Funds Combining Balance Sheet Combining Statement of Revenues, Expenses and Changes in Retained Earnings Combining Statement of Cash Flows Statements of Receipts, Expenditures and Changes in Unencumbered Cash - Budgetary Basis Budgeted Funds Non-Budgeted Funds 41 42 43 - 44 49 - 58 59 - 65 66 67 68 69 70 71 - 72 73 74 75 76 - 79 80 - 81 PROPRIETARY FUNDS (continued) Internal Service Funds: Combining Balance Sheet Combining Statement of Revenue, Expenses and Changes in Retained Earnings Combining Statement of Cash Flows Statements of Receipts. Expenditures, and Changes in Unencumbered Cash - Budgeted and Actual - Budgetary Basis FIDUCIARY FUNDS: Trust and Agency Funds: Combining Balance Sheet Combining Statement of Revenues, Expenses and Changes in Retained Earnings - Nonexpendable Trust Funds Combining Statement of Cash Flows - Nonexpendable Trust Funds Combining Statement of Changes in Assets and Liabilities - Agency Funds Statements of Receipts, Expenditures and Changes in Unencumbered Cash - Budgetary Basis (Non-Budgeted Funds) ACCOUNT GROUPS: General Fixed Assets Comparative Statements of General Fixed Assets 82 83 84 85 - 88 89 90 91 92 93 - 99 100 General Long Term Debt Comparative Statement of General Long Term Debt 101 STATISTICAL SECTION General Governmental Expenditures by Function General Governmental Revenues by Source General Governmental Tax Revenues by Source Property Tax Levies and Collections Assessed and Estimated Actual Value of Property Property Tax Rates - Direct and Overlapping Governments Principal Taxpayers Special Assessment Billings and Collections Computation of Legal Debt Margin Ratio of Net General Obligation Bonded Debt Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debt Computation of Direct and Overlapping Bonded Debt Revenue Bond Coverage - Water and Sewer Fund Property value, construction and bank deposits 102 103 104 105 106 107 108 109 110 111 112 113 114 115 SINGLE AUDIT SECTION Independent Auditors' Report on Schedule of Federal Financial Assistance 11l6 Schedule of Federal Financial Assistance 11l7 Independent Auditors' Report On Internal Control Structure Based On An Audit of General Purpose Financial Statements Performed in Accordance with Government Auditing Standards 118 -119 Independent Auditors' Report On Compliance Based On An Audit Of General Purpose Financial Statements Performed In Accordance With Government Auditing Standards 120 Independent Auditors' Report On The Internal Control Structure Used in Administering Federal Financial Assistance Programs 121 - 123 Independent Auditors' Report On Compliance With The General Requirements Applicable To Federal Financial Assistance Programs 124 Independent Auditors' Report On Compliance With Specific Requirements Applicable to Major Federal Financial Assistance Programs 125 Independent Auditors' Report On Compliance With Specific Requirements Applicable to Nonmajor Federal Financial Assistance Programs Transactions 126 Schedule Of Independent Auditors' Findings and Ques tioned Cos ts 127 INTRODUCTORY SECTION DEPARTMENT OF FINANCE AND ADMINISTRATION CITY CLERK 300 West Ash. PO Box 736 Salina, Kansas 67402.0736 Salina tJI:IfIa:d ",-.oem 'III~' Robert K. Biles. CPA" Director. Jacqueline Shiever, CMC.. City Clerk Telephone (913) 826-7240 . FAX (913) 826-7244 June 30, 1993 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, 1992, 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 geneœal 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 re?;Ulations, is included in a fourth section. This report includes all funds and account groups of the City. The City provides a full range of services: including police and fire, protection; construction and maintenance of streets, drainage facilities and other infrastructure; recreational activities and cultural events; emergency medical services and convention facilities. In addition to general government activities, the City also provides water, wastewater, sanitation and solid waste services; therefore, these activities are included in the reporting entity. Economic Condition and Outlook In 1992, the City continued to solidify its standing as the r[~gional trade center for north central and northwest Kansas. This is expected to continue 1 with the addition of Sam's Club, a division of Wal-Mart Stores, Inc. and Sutherland's Lumber Company. Over 250 jobs will be created by these two large retail stores. Local industry also continues to experience positive gains. Philips Lighting announced it will add a new high speed production line for fluorøscent lights which will add 45 jobs. Total new investment will be near $28 million. REMA Bakeware, a maker of cooking pans and sheets, has committed to a $1,800,000 project to expand its plant by 70% and add 18 new jobs. In addition, three plastic plants announced their intent to add over 30 employees within the next year. The State of Kansas has chosen to invest over $5,000,000 in Salina through the purchase of the former Marymount College to serve as the training facility for the Kansas Highway Patrol. The State of Kansas has also turned the former two year degree Kansas College of Technology into an extension of Kansas State University. The facility is receiving over $10,000,000 in major structural improvements and will serve as the base operation for engineering, technology and avionics education. Enrollment is expected to double to over 800 students. The housing industry is straining to meet the demand for new housing brought on by these positive economic developments and the availability of low interest rates. Over 100 new homes were started in 1992. This is expected to double for 1993. The citizens of Salina approved a one-half cent sales tax in August of 1992 to fund general operating expenditures of the City. The sales tax passed comfortably with a 67% favorable vote. Barring significant changes in service levels, staffing or revenue sources, the City will be able to provide continued city property tax stability to the community. Major Initiatives The 1992 budget spent considerable effort discussing the increasing concern about the City's overall financial condition and the need for a conservative approach to spending. Still, several major initiatives were undertaken. The City began major improvements to Wastewater Treatment Plant Number 1. The project involves closing a secondary wastewater plant, which was outmoded, building an interceptor sewer and updating Plant Number 1 to current EPA standards. Work began in June 1992 with completion scheduled in late 1993. An EPA grant will provide approximately $4,900,000 toward the $23,000,000 project. In conjunction with the State of Kansas, the City completed the widening of Crawford Street, a major east-west route, to a four lane street with improved signalization. The City and the State also continued improvements to the Schilling and 1-135 interchange project. The diamonci interchan,ge, widening of Schilling Road and improved signalization at 9th Street and Schilling Road will be completed in 1993. 2 Dean Evans Stadium was completed in 1992. The project, which involved over $290,000 in private funds, provides a modern 800 seat basebal][ facility for the Salina Babe Ruth, American Legion and Recreation league teams. The City's Capital Improvement Plan for 1993-1997 has been approved. The plan, totaling $15,290,000, itemizes the projects currently proposed through 1997. The five year plan is updated each year. Financial Overview The City took action in three areas in 1992 to help provide for its long-term financial stability. In June, the City Commission received a water and sewer rate study from Wilson and Company, an engineering firm. The rate study took the mandated $23,000,000 improvements to the wastewater system and translated those costs into recommended rates for the years 1992 through 1997. The rates for 1992 and 1993 covered the debt service and increased operating costs. They have been adopted. The rates for the remaining years anticipate increases approximating inflation. In August, the citizens of Salina overwhelmingly approved a one-half cent sales tax for the City to be used to fund general government operations. Annual revenue is expected to be over $2,600,000. This rev,enue will be used to eliminate the anticipated 1993 operating deficit of $1,897,000 for our tax supported funds and to provide future stability to the City's tax structure. The City also took the first step toward meeting mandated regulations at the City's solid waste facility. Tipping fees were increased from $-4.00 per ton to $7.90 per ton to provide adequate revenues to hire Camp, Dresser & McKee, an engineering firm, to recommend a solid waste facility plan and to pay a $1.50 per ton charge to help fund the Kansas Department of Health and Environment's solid waste program. 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 assuranee 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 E~stimates and judgment by management. Sini;'le 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 intE~rnal 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 3 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, 1992 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, 1992 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 Since 1988, the City has been aware that fund balances in our tax supported funds would likely fall below the desired 10%-15% range in 1993. The August 1992 sales tax approval addresses this problem. Shown below are the December 31 actual budgetary basis fund balances in our tax supported funds for 1991 and 1992 and the estimated 1993 fund balances. Fund General Employee Benefits Utility Special Liability Recreation Bond and Interest 1991 $2,991,797 289,938 159,795 29,362 1,953 344,280 $3,817,125 ---------- ---------- Operating expenditures tax supported funds $17,171,522 ----------- ----------- Fund balance as percent of operating expenditures 22.2% ------ ------ 1992 $2,184,753 233,717 99,364 24,563 0 335,915 $2,878,312 Estimated 1993 $2:,064,056 233,538 54,185 22,045 0 360,499 $2,734,323 ---------- ---------- --.-------- --.-------- $18,196,071 $16,966,390 ----------- ----------- ---.-------- ---.-------- 15.8% 16.1% ------ ------ ------ ------ It should be noted that City payments for the Kansas State University-Salina renovation in 1991 and 1992 were $1,988,596 and $2,557,902, respectively. The 1993 operating expenditures budget included $500,000 for this purpose. The following table presents a summary of General Fund, Special Revenue Funds and Debt Service Fund revenues for the years ended December 31, 1991 and 1992. 4 1992 1991 % of % of Revenue 1992 Total 1991 Total Taxes $13,897,325 64.3 $13,019,231 61.6 Intergovernmental 2,756,614 12.8 2,623,225 12.4 Charges for Services 2,416,921 11. 2 2,682,505 12.7 Fines 347,884 1.6 395,447 1.9 Interest 363,734 1.7 554,636 2.6 Special Assessments 881,231 4.1 726,245 3.5 Other 925,576 4.3 1,127,549 5.3 Total Revenues $21,589,285 100.0 $21,128,838 100.0 ----------- ----- ----------- ----- ----------- ----------- The tax revenue increase of $878,094 includes an increase of $569,306 in sales tax revenues received for Kansas State University-Salina. The decrease in interest revenues is attributable to plunging interest rates throughout 1992. Other revenues in 1991 included $369,050 received for the sale of computer hardware. The following table presents a summary of General Fund, Speeial Revenue Funds and Debt Service Fund expenditures for the years ended December 31, 1991 and 1992. Expenditure General Government Public Safety Public Works Recrea tion Cultural Community Development Health & Welfare Bicentennial Center Debt Service Capital Outlay Other Total Expenditures 1992 $1,463,391 5,381,008 1,422,210 1,567,104 337,911 339,084 138,733 1,415,537 2,768,149 1,530,150 6,337,016 $22,700,293 ----------- ----------- 1992 % of Total 6.4 23.7 6.3 6.9 1.5 1.5 .6 6.2 12.2 6.8 27.9 100.0 ----- 1991 $1,487,342 4,930,155 1,227,758 1,477,226 327,241 369,179 146,615 1,665,892 2,299,444 1,415,043 6,362,182 $21,708,077 ----------- ----------- 1991 % of Total 6.9 22.7 5.6 6.8 1.5 1.7 .7 7.7 10.6 6.5 29.3 - 100.0 ----- Expenditures were up $997,216 in 1992 for three primary reasons. The 1991 salary study was implemented in late 1991. Salary ranges for public safety, public works and other skilled personnel were increased as mueh as $4,000 per position. The first full year increase came in 1992. The City also added five positions to public safety. The 1991 bond issues for Crawford Street widening and several special assessment projects increased debt service payments almost $500,000. 5 Proprietary Operations The City has four enterprise operations: Water and Sewer, Golf Course, Solid Waste and Sanitation. Charges for services increased $371 ,007 to $8,705,535. Due to the wet weather in 1992, water revenue!s decreased $495,118. Sewer revenues, due to the July 1, 1992 rate inc~rease, were $866,125 more than 1991. As mentioned earlier, the sewer rate increase was needed to pay the principal and interest on the $23,000,000 sewler plant and sewer interceptor projects. The City utilizes four internal service funds: Risk Management, Worker's Compensation Reserve, Central Garage and Data Processing. In 1991, the City instituted its own 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. A t the end of 1992, fund equity was $234,539. The other internal service funds are used to purchase insurance, repair City vehicles or operate a City-wide computer system. These costs are apportioned to the various City departments based upon usage. Debt Administration The City issued $15,000,000 in revenue bonds as the first phase of the sewer plant renovation project. Current plans call for a final revenw:! bond issue for the project in July 1993 of approximately $3,200,000. Total revenue bonds outstanding at December 31, 1992 was $22,380,000. With the City's policy of issuing revenue bonds for no more than 20 years, the final maturity for these bonds is October 1, 2012. The City's policy for General Obligation bonds is to issue them for no more than 10 years. The City issued $1,660,000 in refunding bonds and $1,240,000 of internal improvement bonds during 1992. Total bonds outstanding at December 31, 1992 was $12,255,000 with final maturity scheduled for October 1, 2002. One general obligation bond for $685,000 was issued in May 1993. Based upon December 31, 1992 General Obligation bonds outstanding, per capita debt is $290. The City is well below its maximum debt limit with over $51,000,000 in authority remaining. Temporary notes of $1,021,000 outstanding at December 31, retired through the issuance of general obligation bonds. 1992 will be 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 conservativ'e investment policy which provides full collateralization of investments. At December 31, 1992, investments were as follows: 6 Investment Amoun t Pereentage u . S. Governmen t City of Salina Temporary Notes Certificates of Deposits $24,182,504 96.47% 873,623 12,749 3.48 .05 Total $25,068,876 100.00% ----------- ----------- ------- ------- Independent Audit Kansas Statutes Annotated 75-1122 requires account, financial records and transactions of the City by independent certified public Commission. This requirement has been opinion has been included in this report. an annual audit of the books of of all administrative departments accountants selected by the City compiled with and the auditor's Acknowledgemen ts 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 Sharon Cope, Water Customer Accounting Clerk II, who worked so hard on our fixed assets records. Finally, preparation of this report would not have been possible without the support of the City Commission. Sincerely, LL::-~.~ Dennis M. ~'l City Manager ~~~ Robert K. Biles Director of Finance & Administration 7 No-vember, 1992 CITIZENS , CITY COMJIISSION CITY MANAGER Dennis Kissinger Asat. City Manager Michael Morgan ...... ..... ... ...... .... ........... ... ... .. ................. .... ..... .......... .... ... Risk Management Keith Rawlings Legal Greg Bengtson ........... .......... ............. ..... Municipal Court Judge Phll Shatter ta Processing ity Clerk ccounting tility Accounting reaaurer i~lanning 11 : ermits " Inspection II . ommun1ty Development II City Prosecutor Gary Denning I perations il I cod and Beverage Business/Ticket Off. Ii Personnel Mel Abbott ater" Sewer Utilit Water Treat" Dlst. Sewage ColI/Treat. Pretreatment , Parks" Recreation Steve Snyder Cuman Relations Will Burnett IC Museum II I Police ~ Jim Hill ecords ntern,al Affairs Investigation atrol raffic raining I. Fire ~'OJI Girard I , I~rations !~raining lþrevent1on ~ 8 CITY OF SALINA, KANSAS LIST OF PRINCIPAL OFFICIALS CITY COMMISSION Carol E. Beggs, Mayor Peter F. Brungardt, Commissioner John Divine, Commissioner Stephen C. Ryan, Commissioner Joseph A. Warner, Commissioner CITY STAFF Dennis M. Kissinger, City Manager Michael Morgan, Assistant 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 9 FINANCIAL SECTION KENNEDY AND CaE CERTIFIED PUBLIC ACCOUNTANTS OFFICES IN KANSAS NEBRASKA OKLAHOMA COLORADO HOME OFFICE: P.O. BOX 1100 SALINA. KANSAS 67402-1100 913-825,1561 INDEPENDENT AUDITORS' REPORT To the Mayor and The Board of City Commissioners City of Salina, Kansas: We have audited the accompanying general purpose financial statements of the City of Salina, Kansas, as of December 31, 1992, and for the year then ended. 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, the provisions of Office of Management and Budget Circular A-128 "Audits of State and Local Governments," and the Kansas Minimum Standard Audi t Program. 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. In our opinion, the general purpose financial statements referred to in the first paragraph present fairly, in all material respects, the financial position of the City of Salina, Kansas, as of December 31, 1992, and the results of its operations and the cash flows of its proprietary and similar trust fund types for the year then ended in conformity with' generally accepted accounting principles. Our audit was made 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, 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 have been subjected to the auditing procedures applied in the audit of the general pu rpose financial s tatemen ts and, in ou r 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 MEMBERS OF, AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS 10 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 June 16, 1993 %~~û~ ~,~ C.P.A. Certified Public Accountant in Charge of and actively engaged in this audit. 11 GENERAL PURPOSE FINANCIAL STATEMENTS Assets and other debi ts: Assets : Cash and Investments Accounts Receivable Taxes Receivable Special Assessments Receivable Due from Other Funds Inventory and Prepaid Supplies Restri cted Cash and Investments Fi xed Assets Accumulated Depreciation - Fixed Assets Deferred Insurance Costs Other Debits: Amount to be provided-Special Assessments Amount to be provi ded Amount Available in Debt Service Tota] 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: Accrued Interest Payable Revenue Bonds Payable - Current Retainage Payable Temporary Notes Payable General Obligation Bonds Payable Revenue Bonds Payable Total Liabilities Equity and other credits: Investment in General Fixed Assets Contri buted Capita I and Retained Earnings: Reservation of Retained Earnings Contri buted Capi ta I and Unreserved Retained Earnings Fund Balances: Reservation of Fund Balance Unreserved Fund Balance Total equity and other credits Total liabilities, equity and other credi ts City of Salina Combi ned Balance Sheet All Fund Types and Account Groups December 31, 1992 (With comparative totals for December 31, 1991) Fiduciary Account Groups Fund Type Genera I Genera I Total Trust &. Fixed Long- T enn (Memorandum Only) Agency Assets Debt 1992 1991 1,752,266 a a $15,268,983 $14,998,330 202 a a 1,256,339 890,712 a a a 5,784,257 5,644,596 a a a 3,114,046 3,659,089 a a a 37,943 11,843 a a a 395,703 582 , 988 a a a 13,468,387 2,137,585 a 19,245,915 a 67,091,597 57,604,436 a a a (20,056,526) (18,835,014) a a a 307,243 214,479 a a 3,114,046 3,114,046 3,659,089 a a 10,951,588 10,951,588 10,578,926 a a 335,915 335,915 304,252 1,752,468 $19,245,915 $14,401,549 $101,069,521 $81,451,311 .,...n..... ............ ...,........ ..........n ..nnnun 379,107 a a 868,338 933,887 a a a 51,010 123,169 a a 1,125,549 1,466,112 1,335,182 a a a 37,943 11,843 a a a 82,122 77 ,ala 1,218,360 a a 1,218,360 1,160,364 a a a 8,298,595 8,704,614 a a a 597,196 129,479 a a a 670,000 265,000 a a a 653,433 18,858 a a 1,021,000 1,021,000 607,000 a a 12,255,000 12,255,000 12,912,000 a a a 21,710,000 7,380,000 1,597,467 a 14,401,549 48,929,109 33,658,406 a 19,245,915 a 19,245,915 18,155,956 a a a 234,539 187,102 a a a 26,913,634 22,815,430 a a a 744,672 855,207 155,001 a a 5,001,652 5,779,210 155,001 19,245,915 a 52,140,412 47,792,905 S 1,752,468 $19,245,915 $14,401,549 $101,069,521 $81,451,311 ....u...... ...n....... ............ ........u.. c.unnn.. The notes to the financial statements are an integral part of this statement. 12 City of Salina Canbined Statement of Revenues, Expenditures and Changes in Fund Balance All Governmental Fund Types For the Fiscal Year Ended December 31, 1992 (With comparative totals for the fiscal year ended December 31, 1991) Revenues: Taxes Intergovernmenta 1 Charges for Service Fines Speci a 1 Assessments Interest Reimbursements Mi sce 11 aneous Total Revenues Expendi tures: Genera 1 Government Public Safety Public Works Recreation Cultural Coomunity Development Health and Welfare Debt Servi ce Other Capital Outlay Bi centenni a 1 Center Total Expenditures Revenues over (under) expenditures Other Fi nanci ng Sources (Uses): Operating Transfers in Operati ng Transfers out Bond and Temporary Note Proceeds Temporary Note and Interest Payments Purchase of Bond Escrowl Issuance costs T ota 1 Other Fi nanci ng Sources (Uses) Revenues and other financing sources over (under) expendi tures and other financing uses Fund Balance, January 1 Residual equity transfers in (out) Fund Balance, December 31 Governmenta I Fund Types Special Debt Genera I Revenue Servi ce $ 9,292,838 1,025,270 1,165,595 347,549 0 356,590 34,414 828,465 13,050,721 1,455,631 5,360,090 1,189,647 1,567,104 337,911 123,204 75,230 0 2,784,058 697,049 0 13,589,924 (539,203) 110,065 (622,950) 0 0 (512,885) 0,052,088) 3,946,752 2,049 $ 2,896,713 $ 3,394,136 1,731,344 1,251,326 335 72,344 2,380 1,053 26,194 6,479,112 7,760 20,918 232,563 0 0 215,880 63,503 0 3,552,958 833,101 1,415,537 6,342,220 136,892 271,231 (496,296) 0 0 0 (225,065) (88,173) 2,002,965 (2,049) $ 1,912,743 $ 1,210,351 0 0 0 808,887 4,764 0 35,450 2,059,452 0 0 0 0 0 0 0 2,768,149 0 0 0 2,768,149 (708,697) 737,950 0 1,660,000 0 0 0,657,590) Capita I Projects 0 167,843 0 0 0 13,279 53,878 831,285 1,066,285 0 0 0 0 0 0 0 0 0 2,502,753 0 2,502,753 0,436,468) 0 0 2,151,000 (497,000) 1,654,000 217,532 228,420 0 445,952 $13,897,325 2,924,457 2,416,921 347,884 881,231 377 ,013 89,345 1,721,394 22,655,570 1,463,391 5,381,008 1,422,210 1,567,104 337,911 339,084 138,733 2,768,149 6,337,016 4,032,903 1,415,537 25,203,046 (2,547,476) 0 1,119,246 0,119,246) 3,811,000 (497,000) 0,657,590) Tota] (Memorandum Only) 1992 1991 $13,019,231 2,653,271 2,682,505 395,447 726,245 574,590 777,713 455,285 21,284,287 1,487,342 4,930,155 1,227,758 1,477,226 327,241 369,179 146,615 2,299,444 6,362,182 3,382,102 1,665,892 23,675,136 (2,390,849) 1,134,265 0,134,265) 6,069,458 (4,300,525) 0 1,768,933 (621,916) 7,104,305 0 ==u======== ====u==-=== =====n=n=- ====u====== ==nn...... ==..=..n=.. $ 6,482,389 740,360 31,663 304,252 0 335,915 The notes to financial statements are an integral part of this statement. 1,656,410 (891,066) 6,482,389 0 $ 5,591,323 13 City of Salina Combined Statement of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basi s General, Special Revenue and Debt Service Funds For the Fi sca 1 Year Ended December 31, 1992 Debt Servi ce Funds Vari ance Favorab 1 e Budget Actual (Unfavorable) Revenues: Taxes Intergovernmenta 1 Charges for Service Fines Special Assessments Interest Reimbursements Mi sce 11 aneous Transfers In Bond Proceeds Total Receipts $ 1,215,145 $ 1,210,351 $ (4,794) 0 0 D 0 0 0 0 D 0 765,000 808,887 43,887 D 4,764 4,764 0 0 0 31,472 35,450 3,978 737,950 737,950 0 0 1,660,000 1,660,000 2,749,567 4,457,402 1.707,835 Expendi tures: Genera 1 Government Public Safety Public Works Recreation Cultural Coomuni ty Development Health and Welfare Debt Servi ce Other Capital Outlay Bicentennial Center Transfers Out Cash Reserve Refundi ng Escrow and Issuance costs Total Expenditures 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2,857,993 2,768,149 89,844 0 0 0 0 0 0 0 0 0 0 D 0 150,DOO 0 15D,DDD 0 1,657,590 0,657,590) 3,007,993 4,425,739 0,417,746) (258,426) 31,663 290,089 258,426 304,252 45,826 0 $ 335,915 335,915 ............ ............ ............ Recei pts over (under) expendi tures Unencumbered Cash, January 1 Unencumbered Cash, December 31 The notes to financial statements are an integral part of this statement. 14 City of Salina Canbined Statement of Revenue, Expenses and Changes in Retained Earnings/Fund Balances All Propri etary Fund Types and Sim; Jar Trust Funds For the Fiscal Year Ended December 31, 1992 Propri etary Fund Types Fudiciary Fund Types Enterpri se Internal Service Nonexpendab 1 e Trust Total (Memorandum Only) 1992 1991 Operati ng Revenue: Charges for Servi ces $ 8,705,535 $ 1.590,031 2,298 $10,297,864 $ 9,995,922 Rei mbursements 0 437 0 437 111,805 Mi sce 11 aneous 118,859 290 0 119,149 34,587 Total Operating Revenues 8,824,394 1,590,758 2,298 10,417,450 10,142,314 Operating Expenses: Genera 1 Government 0 781,023 0 781,023 821,476 Pub1 ic Works 5,485.074 0 0 5,485,074 5,363,068 Recreation 539,902 0 0 539.902 442,705 Other 0 651,794 5,087 656,881 701,908 Depreciation 1.214,151 77 ,576 0 1,291,727 1,187,416 Total Operating Expenses 7,239.127 1.510,393 5,087 8,754,607 8,516,573 Operating Income 1,585,267 80.365 (2,789) 1,662,843 1,625,741 Nonoperati ng Revenues (Expenses): Interest 351,802 0 5,761 357,563 402,304 Miscellaneous 93.864 0 0 93,864 93,864 Debt Servi ce (473,177) 0 0 (473,177) (421,618) Total Nonoperating Revenues (Expenses) (27,511) 0 5,761 (21,750) 74,550 Net Income 1,557,756 80,365 2,972 1,641,093 1,700,291 Contri buted Cap; ta 1 and Retained Earnings/ Fund Balances, January 1 22,420.544 581,987 152,029 23,154,560 21,501,824 Change in Contributed Capital, Net 2.507,521 0 0 2,507.521 (47,555) Contri buted Capi ta 1 and Retai ned Earni ngs/ Fund Balances, December 31 $26,485,821 662,352 155,001 $27,303.174 $23,154,560 ..........n ==u...un= ==nun.... ===....==u= =====n..... The notes to financial statements are an integral part of thi s statement. 15 City of Salina Combi ned Statement of Cash Flows All Proprietary Fund Types and Simi lar Trust Funds For the Fi sca 1 Year Ended December 31, 1992 Proprietary Fund Types Enterpri se Cash Flows from Operating Activities: Operatin9 income $ 1,585,267 Internal Servi ce $ 80,365 Fudi ci ary Fund Types Nonexpendable Trust Total (Memorandum Only) 1992 1991 - - (2,789) $ 1,662,843 $ 1,625,741 Adjustments to reconcile operating i ncome to net cash provi ded by operating activities: Depreciation 1,214,151 77 ,576 D 1,291,727 1,187,416 Provision for uncollectible accounts recei vab 1 e 1,895 0 0 1,895 (3,062) Change in assets and liabilities: Accounts Receivable 144,393 0 22 144,239 (22,975) Deposit Receivab1e 0 0 0 0 (13,000) Inventory and Prepaid Supplies 74.456 0 0 74.456 (131,449) Customer Meter Deposits 5,112 0 0 5.112 2,495 Accounts Payable 115,187 41,884 0 157,071 122.096 Accrued liability for compensated absences 32.731 (4.082) 0 28,649 27,790 Total Adjustments 1,587,925 115,378 22 1,703,325 1,169,311 Net Cash Provided by Operati ng Activities 3,173,192 195,743 (2,767) 3,366,168 2.795,052 Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capi ta 1 assets Principal paid on maturing revenue bonds Interest pai d on revenue bonds Mi sce 11 aneous income Bond Proceeds Contri buted Capi ta 1 Issuance Costs (7,405,546) (265,000) (483,362) 93,864 15,000,000 2,304,400 (108,210) Net Cash used for Cap; ta 1 and Related Financing Activities 8,821,146 Cash Flows from Investing Activities: Interest on Invested Cash 412,847 (2,795) (2,795) 0 0 0 0 0 0 0 (7,408,341) (1,409,219) 0 (265,000) (220,000) 0 (483,362) (666,283) 0 93.864 93.864 0 1,500,000 0 0 2,304,400 0 0 (108,210) 0 0 8.818,351 (2,201.638) 5.761 418,608 473,792 0 Net increase in Cash and Investments 12,407,185 192,948 2,994 12,603,127 1,067,206 Cash and Investments. January 1 9,451,629 370,317 151,805 9.973.751 8,906,545 Cash and Investments, December 31 $21,858,814 563.265 154.799 $22,576,878 $ 9.973,751 ............ ..........n n..n...... ..nnnn.. ...u...n.. Cash and Investments is comprised of: Current $ 8,390.427 563,265 154,799 $9,108,491 $ 7.836,166 Restricted 13,468.387 0 0 13.468,387 2,137,585 Total $21,858,814 563,265 154,799 $22,576,878 $ 9,973,751 ...uu..... .........n. .........=-. ............ "..n_..... 16 City of Salina Combi ned Statement of Cash Flows All Propri etary Fund Types and Simil ar Trust Funds For the Fiscal Year Ended December 31, 1992 Noncash Capital and Related Financial Activities: Enterpri se Funds Accounts Payable and Retainage Payable at December 31, 1992, includes $634,575 related to acquisition of fixed assets. Deferred bond issuance costs were amortized during 1992 as follows: Capitalized as interest Charged to debt service expense 2,7D5 12,741 Total 15,446 un...... The notes to financial statements are an integral part of this statement. 17 CITY OF SALINA Notes to the Financial Statements December 31, 1992 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 In evaluating how to define the government, for financial reporting purposes, management has considered all potential component units. Th,e decision to include a potential component unit in the reporting entity was made by applying the criteria set forth in GAAP. The basic - but not the only - criterion for including a potential component unit within the reporting entity is the governing body's ability to exercise oversight responsibility. The most significant manifestation of this ability is financial interdependency. Other manifestations of the ability to exercise oversight responsibility include, but are not limited to, the selection of governing authority, the designation of management, the ability to significantly influence operations, and accountability for fiscal matters. A second criterion used in evaluating potential component units is the scope of public service. Application of this criterion involves considering whether the activity benefits the government and/or its citizens, or whether the activity is conducted within the geographic boundaries of the government and is generally available to its citizens. A third criterion used to evaluate potential component units for inclusion or exclusion from the reporting entity is the existence of special financing relationships, regardless of whether the government is able to exercise oversight responsibilities. 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. Excluded from the reporting entity: Salina Airport Authority. The Salina Airport Authority (the Airport Authority) was established by a special state act in 1965. The Airport Authority's governing board, which is appointed by the government's governing body, selects management staff, sets user charges, establishes budgets and controls all aspects of general aviation, airport management and development. The government provides no funding to the Airport Authority. Additionally, the government does not hold title to any of the Airport Authority's assets, nor does it have any right to the Airport Authority's surpluses. Salina Housing Authority. The Salina Housing Authority's ¡(the Housing Authority) governing board, which is appointed by the government's governing body, selects management staff, sets user charges, establishes 18 budgets and controls all aspects of the Housing Authority. provides no funding to the Housing Authority. The government 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 governm(~nt (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. When these assets are held under the terms of a formal trust agreement, either a nonexpendable trust fund or an expendable trust fund is used. The terms "nonexpendable" and "expendable" refer to whether or not 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. c. Basis of Accounting The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and expendable trust 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. 19 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, expendable trust funds 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. Encumbrances represent commitments related to unperformed contracts for goods or services. Encumbrance accounting - under V'¥ hich pun=hase 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 20 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 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, repurchase agreements, 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 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 specific investments are not assigned to specific funds. F. Short-term Interfund ReceivablesjPayables 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 "due to other funds" on the balance sheet. G. Inventories Inventories are valued first-in/first-out (FIFO) inventories are recorded governmental fund-type balance. at cost, which approximates market, using the method. The costs of governmental fund-type as expenditures when purchased. The balance of inventories are offset by a reservation of fund H. Restricted Assets Certain proceeds of enterprise fund revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants. The "Water and Sewer Principal and Interest" account is used to segregate resources accumulated for debt service payments over the next twelve months. The "Debt Service Reserve" account is us(~d to report reSOl.rces set aside to make up potential future 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. 21 The following is a summary of the account balances at December 31, 1992. Account Water and Sewer Principal and Interest Debt Service Reserve - 1990 Bonds Debt Service Reserve - 1992 Bonds Unexpended Bond Proceeds Extension and Bond Retirement $ 849,916 911,500 1,,340,000 9,,387,213 979,758 $13 ,,468,387 ------------ ------------ 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. 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. J. 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. 22 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 of Financial Accounting Standards No. 43, Accounting for Compensated Absences, a liability is recorded for vesting accumulating rights to receive sick pay benefits. 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. 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. 23 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. P. Reclassifications Certain reclassifications have been made to the 1991 comparative amounts to conform to the 1992 financial statement presentation. These reclassifications had no effect on previously reported 1991 financial position or results of operations. 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. Public hearing on or before August 15th, but at least ten days after publication of notice of hearing. c. d. Adoption of the final budget on or before August 25th. The statutes allow for the governing body to increase the originally adopted budget for previously unbudgeted increases in revenue other than ad valorem property taxes. To do this, a notice of public hearing to amend the budget must be published in the local newspaper. At least ten days after publication the hearing may be held and the governing body may amend the budget at that time. There were no budget amendments for the year ended December 31, 1992. The statutes permit transferring budgeted amounts between line items within an individual fund. However, such statutes prohibit expenditures in excess of the total amount of the adopted budget of expenditures of individual funds. Budget comparison statements are presented for each fund showing actual receipts and expenditures compared to legally budgeted receipts and expenditures. 24 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. Bicentennial Center Event Fund - This fund is used as a clearing account for special events when the City acts as the promoter's agent.. The City's rental fees from such events are transferred from the fund to the Bicentennial Center Fund. 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. Combined actual operations (budgetary basis) compared proprietary fund types for the year 1992 are as follows: Enterprise Funds ReceIpts Cliarges for services Interest Reimbursements Miscellaneous Intergovernmental Bond Proceeds Total Receipts ExRenditures Public Works Recreation Debt service Capital outlay Transfers out Issuance Costs Cash reserve Total Expenditures Receipts over (under) expenditures Unencumbered cash, January 1 Unencumbered cash, December 31 $ Budget $ 9,105,125 357,000 2,000 103,300 0 0 9,567,425 5,336,627 451,365 2,400 1 , 017 , 200 2,046,619 0 6,834,947 15,6H9,I5H (6, 121, 733) 6,121,733 0 ----------- ----------- to budget for Actual Variance $ 9,025,472 $ (79,653) 357,509 509 0 F,OOO) 215,680 12,380 2,034,400 2,034,400 15,000,000 15,000,000 26,633,061 17,065,636 5,032,744 303,883 480,186 (28,821) 735 1,665 19,595,952 (18,578,752j 3,332,794 (1,286, 175 108,210 (108,210 0 6,834,947 2H,550,621 (12,H61,463) ( 1 , 917 , 560) 4,204,173 5,664,263 (457,470) $ 3,746,703 :$ 3,746,703 ----------- .----------- ----------- ,----------- 25 Internal Service Funds Budget Actual Variance Receipts $ 861,020 $ 742,357 .$ (118,663) Clïar~es for services Reim ursements 0 437 437 Transfers in 845,575 845,575 0 Miscellaneous 800 2,389 1 ,589 Total Receipts 1,707,395 1,590,758 (116,637) Expenditures 839,787 754,689 General government 85,098 Other 738,959 652,868 86,091 Capital outlay 10,400 4,820 5,580 Transfers out 7,150 7, 150 0 Cash reserve 398,675 0 398,675 Total Expenditures 1,994,971 1,419,527 575,444 Receipts over (under) expenditures (287,576) 171,231 458,807 Unencumbered cash, January 1 287,576 342,441 54,865 Unencumbered cash, December 31 $ 0 $ 513,672 $ 513,672 ------------ ------------ .------------ ------------ ------------ .------------ Note 3. Budgetary Reconciliation The actual data presented in the Combined Statement of Receip.,ts, Expenditures, and Changes 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. General Fund Special Revenue Funds Debt Service Fund Revenues (GAAP basis) $13,050,721 $ 6,479,112 $ 2,059,452 Refunding Bond Proceeds 0 0 1,660,000 Add operating and residual equity transfers 112,114 271,231 737,950 Adjustment for accrued/ deferred revenue 5,971 ~75,558~ 0 Nonbudgeted funds 0 ( 69,522 0 Receipts (budgetary basis) $13, 168,806 $ 5,705,263 $ 4,457,402 ------------ ------------ .------------ ------------ ------------ ------------- 26 Ex2enditures (GAAP basis) Escrow Purchase Add operating and residual equity transfers Adjust for encumbrances Nonbudgeted funds Expenditures (budgetary basis) Special Debt General Revenue Service Fund Funds Fund $13 , 5~9 , 924 $ ó,J42,22U $ 2,/ó~,149 0 0 1,657,590 622,950 498,345 0 (237,024) ~3, 182~ 0 0 (9 3,452 0 $13, 975, ~5U $ 5,9U3,931 $ 4,425,739 ------------ ------------ ------------ ------------ ------------ ------------ The actual data ¡:>resented 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 5etween the different bases of reporting. Net income (GAAP basis) Additions: Depreciation Amortization of bond issue costs Increase in accrued compensation Increase in meter deposits payable Decrease in accounts receivable Decrease in inventory & prepaid supplies Increase in accrued interest payable Increase in other accrued Bond proceeds Contributed Capital ( Intergovernmental) Enterprise Funds Internal Service Funds $ 1,557,756 r- 80,365 1,214,151 15,446 32,730 5,112 38,199 74,456 77,576 0 0 0 0 0 467,717 expenses 0 15,000,000 2,034,400 Deductions: Capital outlay Capitalized interest-net Nonbudgeted Fund Debt service-principal Increase in encumbrances Decrease in accrued compensation Bond Issuance costs 0 21 , 361 0 0 (7,349,528) (295,409) (1,943,589) (265,000) (12,395,791) 0 ( 108 , 210 ) (2,795) 0 0 0 (1,194) (4,082) 0 Receipts over (under) expenditures (budgetary basis) $(1,917,560) $ 171 ,231 ------------ ------------ ------------- ------------- 27 Note 4. Deposits and Investments Deposits. At year end, the carrying amount of the government's deposits was $15,216 and the bank balance was $1,873,216. 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 a financial institution other than the pledging financial institution or the Federal Reserve Bank. Investments. generally in: (1) Temporary notes or no-fund warrants issued by the City of Salina, (2) Time deposits, open accounts or certificates of deposits with maturities of not more than two years, and (3) Repurchase agreements. State Statutes authorize the city to invest cash balances 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) (2) (3) In u. S. Treasury Bills or notes with maturities not exceeding two years, In the municipal investment pool operated by the State Treasurer, or 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. The government's in ves tmen ts can be categorized as either (1) insured or registered or for which the securities are held by the government or its agent in the government's name, (2) uninsured and unregistered for which the securities are held by the broker's or dealer's trust department or agent in the government's name or (3) uninsured and unregistered for which the securities are held by the broker or dealer, or by its trust department or agent but not in the government's name. 28 The following is a summary of investments by category at December 31, 1992. 1 Categories 2 3 Carrying Market Amount Value $24,195,253 $24,286,403 2,415,000 2,476,003 873,301 873,301 27,483,554 27,635,707 1,218,360 1,218,360 U. S. Government Securities Repurchase Agreements Temporary notes $24,195,253 0 873,301 $ 0 0 0 $ 0 2,415,000 0 $25,068,554 - $ 0 $ 2,415,000 ----------- ----------- ----------- ----------- Deferred Compensation Investment Total Investments $28,701,914 $28,854,067 ----------- ----------- ----------- ----------- Note 5. Receivables Receivables at December 31, 1992 consis t of the following: Trust Special Debt Capital In.ternal and General Revenue Service Projects Enterprise Service Agency Total --- Receivables: Interest $ 153,025 $ 0 $ 0 0 $145,298 $ 0 $ 202 $ 298,525 Taxes 937,570 3,586,349 1,302,989 0 0 0 0 5,826,908 Accounts 284,785 38,593 0 0 642,689 0 0 966,067 Loans 0 28,898 0 0 0 0 0 28,898 Special Assessments 0 0 3,183,179 0 0 0 0 3,183,179 Deposit 0 0 0 0 0 13,000 0 13,000 Intergovernmental 1,476 87,215 0 42,258 0 0 0 130,949 -- Gross Receivables 1,376,856 3,741,055 4,486,168 42,258 787,987 13,000 202 10,447,526 Less: Allowance for uncollectibles 120,480 25,255 76,667 0 76,482 0 0 292,884 Net Total Receivables $ 1,256,376 $ 3,715,800 $ 4,409,501 $42,258 $717,505 $ 13,000 $202 $10,154,642 ---------- ---------- ---------- -------- ------- ---------- ---------- ---------- ---------- -------- ------- ---------- Property taxes are levied as of November 1, on property values assessed as of January 1 of the same year. The tax levy is divided into two billings. The first billing is mailed on November 1 and the second billing is mailed on May 1. The billings are considered due upon receipt by the taxpayer; however the actual due date is based on a period ending 50 days after the tax bill mailing. On these dates (December 20 and June 20), the bill becomes delinquent and penalties and interest may be assessed by the government. 29 Note 6. Fixed Assets The following is a summary of changes in the general fixed assets account group during the fiscal year: Balance January 1 1991 Land $ 2,501,353 Land Improvements 30,000 Buildings 9,428,701 Equipment 3,437,474 Vehicles 2,758,428 Additions Retirements $ $ 0 144,289 555,220 277,601 216,347 0 0 0 880 102,618 103,498 $ Total $18,155,956 $ 1,193,457 ---------- ---------- ---------- ---------- ----------- ----------- The following is a December 31, 1992. summary of proprietary fund-type Enterprise Funds Land Land Improvements Water Plant & Equipment Sewage Plant & Equipment Other Buildings Other Vehicles & Equipment Construction in Progress $ Less Accumulated Depreciation 514,050 237,210 23, 155, 155 11 ,499,425 254, 107 2,499,356 9,046,277 47,205,580 19,690,238 Net Fixed Assets $ 27,515,342 ------------ ------------ Balance De:cember 31 1992 $ 2,501,353 174,289 9,983,921 3,714,195 2,872,157 $19,245,915 -,---------- -,---------- fixed assets at Internal Service Funds r 0 0 0 0 22,122 617,980 0 r 640,102 366,288 273,814 ------------- ------------- The City has entered into contractual commitments totaling $13,627,546 to complete certain water and sewer projects included in Construction In Progress at December 31, 1992. In proprietary funds, compute depreciation: the following estimated useful lives are used to Utility Plant & Buildings Equipment and Vehicles 20-50 Years 5-20 Years 30 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 financ,ed 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 for the year 1992 follows: Total interest cost Capitalized interest cost $ 963,821 490,644 473,177 Interest expense $ ---------- ---------- Capitalized interest cost $ Related interest earned on unexpended bond proceeds whose use is limited 490,644 195,234 Net Interest Cost Capitalized $ 295,410 ---------- ---------- Note. 8. Risk Management 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 1992, a total of $212,693 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 not reported claims of $109,932 have been accrued as a liability based primarily upon subsequent payments. Interfund premiums are reported as quasi-external interfund transactions. Note 9. Long-term Debt 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: 31 Purpose 1986 Street and Utilities 1987 Downtown Redevelopment 1988 Internal Improvements 1989 Internal Improvements 1990 Broadway Overpass 1991 Internal Improvements 1991 Street and Utilities 1991 Crawford Street 1992 Crawford Street 1992 Refunding Bonds Interest Rate 5.40 - 5.70 % 6.25 - 6.65 % 6.25 - 6.375% 5.90 - 6.20 % 5.75 - 6.15 % 5.25 - 6.25 % 5.4 - 7.40 % 4.05 - 6.50 % 3.75 - 5.90 % 3.50 - 4.90 % Final Maturity Date Amount Dec 1, 1996 $ 1,020,000 Dec 1, 1997 2,500,000 Dec I, 1998 615,000 Dec 1, 1999 815,000 Dec 1, 2000 360,000 Oct 1, 2001 1,170,000 Oct 1, 2001 1,270,000 Oct I, 2001 1,605,000 Oct 1, 2002 1,240,000 Apr 1, 1996 1,660,000 :$12,255,000 ---------- ---------- Annual debt service requirements to maturity for general obligation bonds, including interest of $2,679,455 are as follows: Fiscal Year Ending December 31 1993 1994 1995 1996 1997 Thereafter Amount $2,843,907 2 , 651 , 250 2,485,395 2,105,823 1,578,360 3,269,720 $14,934,455 ----------- ----------- Revenue Bonds. The government also issues bonds where the government pledges income derived from the acquired or constructed assets to pay debt service. Revenue bonds outstanding at December 31, 1992, are as follows: Purpose Water & Sewage System Series 1990A Refunding Water & Sewage System Series 1990B Water & Sewage System Series 1992 Interest Rates 6.1 - 7.0% 7.0 - 7.1% 5 .4 - 7.4% Final Maturity Date Amount Oct 1, 2005 Oct 1, 2008 :$ 5,170,000 2,210,000 Oct 1, 2012 15,000,000 :~22 , 380 , 000 .----------- .----------- 32 Revenue bond debt service requirements to maturity, including $16,720,622 of interest are as follows: Fiscal Year Ending December 31 Amount Total $ 2,351,142 2,114,100 2,114,490 2, 111 , 240 2,109,330 28,300,320 $39,100,622 1993 1994 1995 1996 1997 Thereafter ----------- ----------- The City has established certain reserve accounts pursuant to the bond ordinances authorizing the issuance of Combined Water and Sewage System Revenue Bonds, Series 1990 and the Combined Water and Sewerage System Improvement Revenue Bonds, Series 1992, 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. The amounts required to be maintained in the reserve accounts established by the bond ordinance authorizing issuance of the 1990 and 1992 bonds have been provided and the total revenues of the water and sew(~rage 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, 1992, are payable as follows: Date Issued Interest Rate Due Date Amoun t September 1, 1992 September 1, 1992 December 1, 1991 December 1, 1991 October 1, 1992 3.6% 3.6% 4.8% 4.9% 3.25% Dee 31, 1994 Dee 31, 1994 Dee 31, 1993 Dee 31, 1993 Dee 31, 1994 $ 360,000 211 ,000 110,000 40,000 300,000 $1 , 021 , 000 ---------- ---------- 33 Change in Long-Term Debt. The following is a summary of long-term debt transactions for the year ended December 31, 1992. General Long-term Debt Account Group Proprietary Fund Types General Obligation Bonds Temporary Notes Accrued Compensation Totals Revenue Bonds Outstanding, January 1 $12,912,000 $ 607,000 $ 1,023,267 $14,542,267 $7,645,000 New Debt Issued or Acquired 1992 Refunding 1992 Water & Sewer 1992 Crawford Street 1,660,000 1,660,000 15,000,000 1,240,000 Temporary Notes Net change in Accrued Compensation 911,000 1,240,000 911,000 102,282 102,2112 Debt Retired (3,557,000) (497,000) (4,054,000) (265,000) outstanding, December 31 $12,255,000 $1,021,000 $1,125,549 $14,401,5<19 $22,380,000 ----------- ----------- --------- --------- --------- --------- ----------- ----------- ---------- ---------- Advance Refunding and Defeased Bonds. In 1992, the City advance refunded its 1985 General Obligation Refunding Bonds. The City issued $1 ,660,000 of general obligation refunding bonds and transferred $270,000 from the debt service fund to provide resources to purchase U. S. Treasury State and Local Government Series securities that were placed in an irrevocable trust for the purpose of generating resources for all future debt service payments of the refunded debt. As a result, the refunded bonds are considered to be defeased and the liability has been removed from the general long-term debt account group. This advance refunding was undertaken to reduce total debt service payments and to obtain an economic gain (difference between the present value and the debt service payments of the refunded and refunding bonds) of approximately $81,000. 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, 1992, a total of $2,050,000 of general obligation and $11,221,000 of revenue bonds are considered defeased. 34 Note 10. Interfund Assets/Liabilities Due From/To Other Funds: Receivable Fund Payable Fund Amount Water and Sewer Sanitation $37,943 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 represent expendable available financial resources. related assets do not Reserved for Workers' Compensation Claims Identifies the unexpended balance of the Workers' Compensation reserve fund. B. Residual equity transfer. During 1992, the City transferred unexpended cash balances from The Recreation Fund to the General fund, resulting in a residual equity transfer of $2,049. Note 12. Segment InformationnEnterprise 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, 1992 is presented below. 35 Sanitation Solid Waste Golf Course Water' Sewer Total operating Revenues $777,753 $ 415,355 $ 593,758 $ 7,131,392 $ 8,918,258 Depreciation Expense 38,860 54,789 51,279 1,069,223 1,214,151 Operating Income (loss) (46,824) 32,655 2,577 1,690,723 1,679,131 Net Income (loss) (23,146) 58,129 6,025 1,516,748 1,557,756 Current Capital Contributions 0 0 0 2,507,521 2,507,521 Property, Plant and Equipment Additions 76,744 2,312 63,743 8,335,966 8,478,765 Net Working Capital 552,687 746,240 55,898 7,190,448 8,545,273 Total Assets 836,097 1,281,740 402,133 48,225,821 50,745,791 Bonds Payable 0 0 0 22,380,000 22,380,000 Total Equity $737,947 $1,265,203 $ 380,129 $24,102,542 $26,485,821 Note 13. Contributed Capital During the year, contributed capital changed by the following amounts: Source Water & Sewer Additions $ 2,507,521 Net Change $ 2,507,521 ----------- ----------- 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. Note 15. Subsequent Event The City issued $685,000 of general obligation bonds, dated May 1, 1993 to finance infrastructure improvements. The bonds' effective interest rate was 4.192% and they mature October 1, 1994 through October 1, 2003. 36 Note 16. Defined Benefit Pension Plan Substantially all full-time employees of the City of Salina partieipate in the Kansas Public Employees Retirement System (the System), a multiple-employer public employee retirement system. A group of employees partiiCipate 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, 1992. Contributions Covered Payroll General Employees $5,322,208 Police and Fireman 4, 138,504 Totals $9,460,712 Employer Employee Total $95,963 $222,709 $318,672 520,478 273,829 794,307 $616,441 $496,538 $1,112,979 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- The total payroll for the City of Salina was $10,534,015 for the year ended December 31, 1992. Substantially all general employees of the City of Salina arE~ eligible to participate in the System after one year of employment. EmployeE!s who retire at or after age 65 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 1.25 to 1.5 percent for each year of "participating" service depending upon the number of years of service. Final average salary is the employee's average salary over the highest four years of credited service. Benefits fully vest on reaching 10 years of service. Vested employees may retire at age 55 to 65 with 10 years of credited service and receive reduced retirement benefits. The system also provides death and disability benefits. Benefits are established by State statute. Covered general employees are required by State statute to contribute 4% of their salary to the plan; in addition, there are various options available to covered employees, where the employees may make additional contributions. The employer is required by the same statute to contribute the remaining amounts necessary to pay benefits when due. The employer's contribution was 1. 8% of covered payroll for 1992. The contribution rate (3% to 7% 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 partieipants 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 contribution rate was 12.6% for the employer for 1992. 37 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 benefit obligation for individual employers. The pension benefit obligation at June 30, 1992, for the System as a whole, determined through an actuarial valuation performed as of that date, was $4.08 billion. The System's net assets available for benefits on that date were estimated to be $4.12 billion. The system's net assets available for benefits exceeded the pension benefit obligation by $42 million. The contribution of the City of Salina for the period covered by this report represents less than 1% of total contributions required of all participating employers. Ten-year historical trend information showing the System's progress in accumulating sufficient assets to pay benefits when due is presented in the System's 1992 CAFR. 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, 1992, 69 current or former employees were participating in the plan. 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. The 1991 comparative amounts have been restated to reflect the investments and deferred compensation liability of $1,160,364 for the plan. 38 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, 1992 are compared to project authorizations as follows: Project Name Crawford Street Phase II Water and Sanitary Sewer Extension and Street Improvements (Country Club Estates) Sidewalk Improvements (89-791) Schilling Road Interchange Project from 1-135 to South Ninth Street Sidewalk Improvements (90-808) Crawford Street Phase III Ninth and Cloud Intersection North Street Bridge Huesner Sidewalk 1991 Sidewalks Ninth and Belmont Intersection KSU Boundary Roads Prescott Improvements Wallerius Holmquist/ Austin A summary of the fund's December 31, 1992 follows: Project Au thorization Cumulative Expendi tures $ 1, 820 , 000 $ 1,730,480 1,525,505 92, 717 1,150,000 88,915 2,940,000 54,742 103,140 9,482 94,041 235,000 427,512 125,000 45,690 295,050 1,438,293 65,700 888, 139 72 , 178 1,033,071 59,750 100,278 10,479 33,344 199,742 473,014 84,371 30,073 247,373 unencumbered at Cash balance resulting from: Capital projects in process Special Assessment projects Total cash ( deficit ) balance $42,606 (54,078) $(11,472) ---------- ---------- General Funds are being used to temporarily finance the deficit cash balance as of December 31, 1992 in accordance with K.S.A. 10-1116(a)(2). 39 Note 19. Compliance with Kansas Statutes A summary of statutory compliance matters related to 1992 follows: A. Expenditures of the golf course funds exceeded budgeted expenditures by $30,236 for the year ended December 31, 1992, which appears to be a violation of the Kansas budget law (K.S.A. 79-2935) B. The cumulative expenditures of the following construction fund projects exceeded the related project authorization during 1992 (See Note 18) Ninth and Cloud Intersection Heusner Sidewalk KSU Boundary Roads C. The assets pledged by Sunflower Bank, N .A. to secure cash deposits of the City were not sufficient to meet the requirements of K.S.A. 9-1402 on August 7, 1992. D. The deficit cash balance of the HOD Community Development Fund is reinburseable from a federal grant received through the Kansas Department of Commerce. Accordingly, such deficit fund balance is not a violation of the cash basis law. E. A portion of the expenditures of the Debt Service Funds, for the transfer to an irrevocable refunding escrow trust account and payment of certain bond issuance costs in the total amount of $1,660,000, were funded by the issuance of 1992 Refunding Bonds. Accordingly, expenditures of the Debt Service Funds are not in violation of the Kansas budget law (K.S.A. 79-2935) for the year 1992. F. Capital expenditures of the Water and Sewer Fund for renovating the sewerage system were funded by the issuance of Water and S(~wage System Revenue Bonds, Series 1992, in the total amount of $15,000,000. Accordingly, expenditures of the Water and Sewer Fund are not in violation of the Kansas budget law (K. S. A. 79-2935) for the y'~ar 1992. Note 2O. Endowment Funds Included in fund balance of the trust and agency funds is $119,518 of endowment funds principal. 40 COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES GO VERNM ENT AL TYPE FUNDS GENERAL FUND The general fund is used to account for resources traditionally associated with government which are not required legallJ or by sound financial management to be accounted for in another fund. City of Salina Comparative Balance Sheets Genera 1 Fund December 31, 1992 and 1991 TOULS 1992 1991 $2,318,924 $3,344,819 331,138 293,543 925,238 1,676,640 86,759 199,588 3,662,059 5,514,590 ========== ========== 39,735 122,604 0 11 ,883 725,611 1,433,351 765,346 1,567,838 181,193 430,003 2,715,520 3,516,749 2,896,713 3,946,752 $3,662,059 $5,514,590 nn..n.- -nun=_. Assets Cash and Investments Accounts Receivable Taxes Receivable Prepaid Supplies Total assets liabilities and Fund liabilities: Accounts Payab 1 e Retainage Payable Deferred Revenue Balances Total liabilities Fund Balances: Reservation of fund balance Unreserved fund balance Total fund balances Total liabilities and fund balances 41 Revenue: Taxes I ntergovernmenta 1 Charges for Services Fines Interest Reimbursements Mi sce 11 aneous Total Revenues Expendi tures: Genera 1 Government Public Safety Pub1 ic Works Recreation Cultural Conmunity Development Health and Welfare Capital Outlay Other Total Expenditures Revenue over (under) expenditures Other Financing Sources (Uses): Operat i ng Trans fers in Operat i ng Trans fers out Tota 1 Other Fi nanci ng Sources (Uses) Revenues and other financing sources over (under) expendi tures and other financing uses Fund Balances, January 1 Residual Equity Transfer Fund Balances, December 31 City of Salina Comparative Statement of Revenues, Expenditures and Changes in Fund Balances Genera 1 Fund Year Ended December 31, 1992 and 1991 TOTALS 1992 1991 $ 9,292,838 $ 8,226,465 1,025,270 1,116,231 1,165,595 847,347 347,549 395,447 356,590 532,660 34,414 560,376 828,465 419,013 13,050,721 12,097,539 1,455,631 1,481,457 5,360,090 4,930,155 1,189,647 1,043,777 1,567,104 751,696 337,911 327,241 123,204 122,387 75,230 75,111 697,049 745,758 2,784,058 2,835,767 13,589,924 12,313,349 (539,203) (215,810) 110,065 88,504 (622,950) (820,761) (512,885) (732,257) 0,052,088) (948,067) 3,946,752 4,894,819 2,049 0 $ 2,896,713 $ 3,946,752 ============ ------------ ------------ 42 City of Salina General Fund Statement of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1992 Pagl:! 1 of 2 Total Receipts Budget Actual Voir iance $ 1,463,040 $ 1,468,154 $ 5,114 5,880,000 6,302,192 422,192 1,470,000 1,537,171 67,171 1,037,046 1,027,270 (9,776) 968,900 1,158,283 189,383 384,000 353,168 (30,832) 425,000 347,671 (77,329) 55,000 34,414 (20,586) 20,500 392,525 372,025 557,469 547,958 (9,511) 12,260,955 13,168,806 907,851 Receipts: Taxes - Property Taxes - Sales Taxes - Franchise Intergovernmental Charges for Services Fines Interest Reimbursements Miscellaneous Transfers in Expenditures: City Commission City Manager Legal Finance Personnel Buildings Human Relations Police Municipal Court Parking Meters Fire Permits and Inspection Engineering Streets Flood Works Traffic Control Parks Swimming Pools Neighborhood Centers Recreation Arts and Humanities Smoky Hill Museum Planning Heritage Commission Cemetery Contingency Capital Outlay Transfers out Cash Reserve Total expenditures 500,512 492,560 7,952 217,200 197,770 19,430 93,020 95,873 (2,853) 272,920 284,467 (11,547) 90,200 87,494 2,706 215,510 211,061 4,449 101,649 100,504 1,145 2,206,992 2,350,786 (143,794) 110,595 98,634 11,961 31,093 33,248 (2,155) 2,591,638 2,693,180 (101,542) 139,934 161,584 (21,650) 171,600 162,354 9,246 705,970 703,705 2,265 81,670 84,067 (2,397) 125,800 124,954 846 629,759 621,393 8,366 60,150 59,273 877 88,454 95,150 (6,696) 703,121 791,336 (88,215) 152,634 156,459 (3,825) 167,888 181,452 (13,564) 118,940 114,401 4,539 7,300 8,707 (1,407) 75,550 75,230 320 2,502,500 2,703,058 (:200,558) 585,000 566,200 18,800 720,950 720,950 0 1,352,246 0 1,.352,246 14,820,795 13,975,850 :344,945 43 City of Salina General Fund Statement of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1992 Page 2 of 2 Budqet Actual Variance (807,044) 1,752,796 2,991,797 431,957 Receipts over (under) expenditures (2,559,840) Unencumbered Cash, January 1 2,559,840 Unencumbered Cash, December 31 $ 0 $ 2,184,753 $ 2,184,753 ----------- ----------- ---------- ---------- --.-------- -_._------- 44 SPECIAL REVENUE FUNDS Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. This page intentionally left blank City of Salina Combi ni ng 8a 1 ance Sheet Special Revenue Funds December 31, 1992 (With comparative totals for December 31, Page 1991) 1 of 2 81- 81- CENTENNIAL HUD CENTENNIAL CENTER CQYMUNITY HERITAGE FAIR LAW POLICE CENTER EVENT DEVELOPMENT CQYMISSION HOUSING ENFORCEMENT GRANTS Assets Cash and Investments 339,310 52,550 $ (13,320) 426 $ 22,000 $ 4,459 $ 7,468 Accounts Receivable 13,900 0 96,677 0 0 0 19,436 Taxes Receivable 0 0 0 0 0 0 0 353,210 52,550 83,357 426 22,000 4,459 26,904 -_-_-n__- ---------- ---------- ____n___- _nn_--_- ____n__-- n__-___-- __n_n__- ---------- ---------- ____n___- nn__--_- ---------- --______n Liabilities and Fund 8a 1 ances Liabilities: Accounts Payable 4,738 0 1,572 0 467 0 71 Retainage Payable 0 0 0 0 0 0 0 Deferred Revenue 0 0 0 0 0 0 0 Total Liabilities 4,738 0 1,572 0 467 0 71 Fund 8a 1 ances: Reservation of fund balance 0 0 0 0 0 0 0 Unreserved fund balance 348,472 52,550 81,785 426 21,533 4,459 26,833 Total fund balances 348,472 52,550 81,785 426 21,533 4,459 26,833 Total liabilities and fund balances $ 353,210 52,550 $ 83,357 426 22,000 4,459 $ 26,904 _n__n__- ____n___- --_-_---n ----------- n--_--__- ---------- ---------- _____n__- ____n__n __h___n- ___-_n___- ---------- ---------- ---------- 45 City of Salina Combi ni ng Balance Sheet Special Revenue Funds December 31. 1992 (With comparative totals for December 31, 1991) Page 2 of 2 Assets Cash and Investments Accounts Receivable Taxes Receivable TOTALS Recreation 1992 1991 $ 0 $1.438.574 $1.649.891 0 152.236 116.252 0 3,563.564 2.816.908 0 5.154.374 4.583.051 ---------- ---------- __n__n_- ___n____- ____n___- ---------- Liabilities and Fund Balances liabilities: Accounts Payable Retainage Payable Deferred Revenue Total Liabilities 0 74.676 115.586 0 3,472 3.377 0 3,163,483 2.461.125 0 3.241.631 2.580.088 Fund Balances: Reservation of fund balance Unreserved fund balance Total fund balances 0 148.315 152.750 0 1.764,428 1.850.213 0 1.912.743 2.002.963 $ 0 $5,154,374 $4.583.051 ___n___n _n______- ---------- -__--___n _n__n_-- __nn___- Total liabilities and fund balances 4E: City of Salina Combining Statement of Revenues, Expenditures and Changes in Fund Ba 1 ances Sped a 1 Revenue Funds Year Ended December 31, 1992 (With comparative totals for December 31, 1991) Page 1 of 2 BI- BI- CENTENNIAL HUD SPECIAL CENTENNIAL CENTER CCJoMJNITY HERITAGE FAIR lAW POLICE CENTER EVENT DEVELOPMENT Ca+1ISSION HOOSIt«ò ENFORCEMENT GRANTS Revenues: Taxes a a a a a $ a a Intergovernmenta 1 a a 193,628 a 30,000 a 46,751 Charges for Serv; ces 548,445 702,881 a a a a a Fines a a a a a a a Special Assessments a a a a a a a Interest a a 2,353 a a a a Reimbursements a a 1,053 a a a a Mi sce 11 aneous a a 22,855 a 978 a 1,000 Total Revenues 548,445 702,881 219,889 a 30,978 a 47,751 Expendi tures: Genera I Government a a a a 7,760 a a Publ ic Works a a a a a a a Publ ic Safety a a a a a a 20,918 Recreation a a a a a a a Comnunity Development a a 215,880 a a a a Health and Welfare a a a a a a a Bicentennial Center 734,898 680,639 a a a a a Capital Outlay 45,109 a a a 3,529 a a Other a a a a a a a Total Expenditures 780,007 680,639 215,880 a 11,289 a 20,918 Revenues over (under) expend; tures (231,562) 22,242 4,009 a 19,689 a 26,833 Other Financing Sources (Uses): Operating Transfers in 271,231 a a a a a a Operating Transfers Out a a a a a a a Total Other Financing Sources (Uses) 271,231 a a a a a a Revenues and other financing sources over (under) expendi tures and other financing uses 39,669 22,242 4,009 a 19,689 a 26,833 Fund Balances, January 1 308,803 30,308 77,776 426 1,844 4,459 a Residual Equity Transfer a a a a a a a Fund Balances, December 31 348,472 52,550 81,785 426 21,533 4,459 26,833 ==n=====::= ==:nn===== ==:n=::==== ==::======:= ===n:==:=== ==n======:: ============ 47 City of Salina Combi ni ng Statement of Revenues, Expendi tures and Changes in Fund Balances Special Revenue Funds Year Ended December 31, 1992 (With comparative totals for December 31, 1991) Page 2 of 2 TOTALS RECREATION 1992 1991 0 $ 3,394,136 $ 4,035,424 0 1,731,344 1,506,994 0 1,251,326 1,835,158 0 335 0 0 72,344 64,463 0 2,380 9,830 0 1,053 111,888 0 26,194 3,050 0 6,479,112 7,566,807 0 7,760 5,885 0 232,563 183,981 0 20,918 0 0 0 725,530 0 215,880 246,792 0 63,503 71,504 0 1,415,537 1,665,892 0 833,101 669,285 0 3,552,958 3,526,415 0 6,342,220 7.095,284 0 136.892 471,523 0 271,231 215,000 0 (496,296) (313,504) 0 (225,065) (98,504) Revenues: Taxes Intergovernmenta I Charges for Servi ces Fines Special Assessments Interest Rei mbursements Mi scell aneous Total Revenues Expenditures: Genera I Government Public Works Public Safety Recreation Conmunity Development Health and Welfare Bicentennial Center Capital Outlay Other Total Expenditures Revenues over (under) expendi tures Other Fi nanci ng Sources (Uses): Operat i n9 Transfers in Operating Transfers Out T ota I Other Fi nanci ng Sources (Uses) Revenues and other financing sources over (under) expendi tures and other fi nanci ng uses Fund Balances, January 1 Residual Equity Transfer Fund Balances, December 31 0 (88,173) 373,019 2,049 2,002,965 1,629,946 (2,049) (2,049) 0 0 $ 1,912,743 $ 2,002.965 u_---_u_-- u_------_u ============ ---------_u u_--------- 48 City of Salina Employee Benefit statement of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1992 Budget Actual Variance Receipts: Taxes - Property $ 2,218,208 $ 2,198,153 $ (:20,055) Intergovernmental 163,000 163,000 0 Miscellaneous 0 1,361 1,361 Interest 0 27 27 Total receipts 2,381,208 2,362,541 (18,667) Expenditures: Unemployment 24,200 23,090 1,110 Social Security 315,000 317,412 (2,412) Life Insurance 47,000 43,600 3,400 Kansas Police and Fire Retirement 490,000 518,527 (28,527) Kansas Public Employees Retirement 59,000 57,864 1,136 Health Insurance 1,118,800 1,084,323 34,477 Transfers Out 373,946 373,946 0 Cash Reserves 210,000 0 210,000 Total Expenditures 2,637,946 2,418,762 219,184 Receipts over (under) Expenditures (256,738) (56,221) 200,517 Unencumbered Cash, January 1 256,738 289,938 33,200 Unencumbered Cash, December 31 $ 0 $ 233,717 $ 233,717 --------- ---------- ----------- --------- ---------- ----------- 49 Receipts: Taxes - Property Total receipts Expenditures: Gas Service street Lighting Water Service Light and Power Traffic Control Cash Reserves City of Salina Utility Statement of Receipts, Expenditures and changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1992 Budqet Actual $ $ 633,975 637,385 637,385 633,975 58,000 250,000 70,000 286,000 38,000 72,000 59,691 254,651 69,325 273,198 37,541 0 Total expenditures 774,000 694,406 Receipts over (under) expenditures (136,615) (60,431) Unencumbered Cash, January 1 136,615 159,795 Unencumbered Cash, December 31 $ $ 99,364 0 ---------- ---------- ---------- ---------- Variance $ (3,410) (3,410) (1,691) (4,651) 675 12,802 459 72,000 79,594 76,184 23,180 $ 99,364 ----------- ---.------- 50 city of Salina Special Liability Statement of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1992 Total receipts Budget Actual Vélriance $ 94,818 $ 96,863 $ 2,045 94,818 96,863 2,045 Receipts: Taxes - Property Expenditures: Transfers Out Cash Reserves 101,662 20,000 101,662 0 0 20,000 Total expenditures 121,662 101,662 20,000 Receipts over (under) expenditures (26,844) (4,799) 22,045 26,844 29,362 2,518 $ 0 $ 24,563 $ 24,563 ---------- ---------- ----------- ---------- ---------- ----------- Unencumbered Cash, January 1 Unencumbered Cash, December 31 51 City of Salina Recreation statement of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1992 Total expenditures Budqet Actual VëLr iance $ 12,602 $ 1,953 $ 10,649 12,602 1,953 10,649 Expenditures: Transfer out Receipts over (under) expenditures (12,602) (1,953) 10,649 Unencumbered Cash, January 1 12,602 1,953 (10,649) Unencumbered Cash, December 31 $ 0 $ 0 $ 0 ---------- ---------- ---------- ---------- ---.------- ---.------- 52 City of Salina Business Improvement Dist. Statement of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1992 Budqet Actual Receipts: Fines Special Assessments $ $ 0 75,000 335 76,261 Total receipts 75,000 76,596 Expenditures: Contractual Transfers Out 58,000 17,000 58,000 17,000 Total expenditures 75,000 75,000 Receipts over (under) expenditures 0 1,596 unencumbered Cash, January 1 0 863 Unencumbered Cash, December 31 $ $ 2,459 0 ---------- ---------- ---------- ---------- Vélr iance $ 335 1,261 1,596 0 0 0 1,596 863 $ 2,459 ----------- ----------- 53 city of Salina Tourism and Convention Statement of Receipts, Expenditures and changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1992 Budget Actual Receipts: Taxes - Transient Guest $ 441,359 $ 450,000 Total receipts 450,000 441,359 Expenditures: Contractual Transfers out 270,000 180,000 280,128 161,231 Total expenditures 450,000 441,359 Receipts over (under) expenditures 0 a Unencumbered Cash, January 1 0 0 Unencumbered Cash, December 31 $ $ 0 a ---------- ---------- ---------- ---------- Variance $ (8,641) (8,641) (10,128) 18,769 8,641 a 0 $ a ---.------- ---.------- 54 city of Salina special Parks Statement of Receipts, Expenditures and Changes in unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1992 Total Expenditures Budget Actual VaLr iance $ 71,206 $ 81,442 $ 10,236 71,206 81,442 10,236 82,284 82,284 0 82,284 82,284 0 Receipts: Intergovernmental Total receipts Expenditures: Transfers Out Receipts over (under) expenditures (11,078) (842) 10,236 11,078 17,022 5,944 $ 0 $ 16,180 $ 16,180 ---------- ---------- ----------- ---------- ---------- ----------- Unencumbered Cash, January 1 Unencumbered Cash, December 31 55 Receipts: Intergovernmental Total receipts Expenditures: Contractual Cash Reserve City of Salina Special Alcohol Statement of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1992 Budget Actual $ $ 81,442 71,206 71,206 81,442 71,504 10,781 63,503 10,781 Total expenditures 82,285 74,284 Receipts over (under) expenditures (11,079) 7,158 Unencumbered Cash, January 1 11,079 17,023 Unencumbered Cash, December 31 $ $ 24,181 0 ---------- ---------- ---------- ---------- Va.r iance $ 10,236 10,236 8,001 0 8,001 18,237 5,944 $ 24,181 ---,------- ---.------- 56 city of Salina Special Gas Tax Statement of Receipts, Expenditures and changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1992 Budget Actual Va:r iance Receipts: Intergovernmental $ 1,100,000 $ 1,115,828 $ 15,828 Total receipts 1,100,000 1,115,828 15,828 Expenditures: Personal Services 107,630 103,093 4,537 Supplies 144,600 132,194 12,406 capital outlay 667,000 808,232 (141,232) Transfers Out 225,000 225,000 0 Cash Reserve 323,311 0 323,311 Total expenditures 1,467,541 1,268,519 199,022 Receipts over (under) expenditures (367,541) (152,691) 214,850 Unencumbered Cash, January 1 367,541 561,764 194,223 Unencumbered Cash, December 31 $ 0 $ 409,073 $ 409,073 ----------- ----------- ----------- ----------- ----------- ----------- 57 City of Salina Bicentennial Center Statement of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1992 Budget Actual Var ianc::e Receipts: charges for Services $ 590,000 $ 543,986 $ (46,014) Transfers In 290,000 271,231 (18,769) Total receipts 880,000 815,217 (64,7133) Expenditures: Personal Services 458,345 420,515 37,830 Supplies 45,200 33,231 11,969 Contractual 2,000 294 1,706 Other Services and Charges 265,500 280,702 (15,202) Capital Outlay 0 10,960 (10,960) Cash Reserve 328,992 0 328,992 Total expenditures 1,100,037 745,702 354,335 Receipts over (under) expenditures (220,037) 69,515 289,552 Unencumbered Cash, January 1 220,037 265,057 45,0.20 Unencumbered Cash, December 31 $ 0 $ 334,572 $ 334,572 ---------- ---------- ---------- ---------- ---------- ---------- 58 city of Salina Bicentennial Center Event Statement of Receipts, Expenditures and changes in Unencumbered Cash Budgetary Basis For the year ended December 31, 1992 Receipts: charges for Services Total receipts Expenditures: Supplies Total expenditures Receipts over (under) expenditures Unencumbered Cash, January 1 Unencumbered Cash, December 31 $ 702,881 702,881 680,639 680,639 22,242 30,309 $ 52,551 ----------- ----------- 59 city of Salina HUD community Development Statement of Receipts, Expenditures and Changes in Unencumbered Cash Budgetary Basis For the year ended December 31, 1992 Receipts: Intergovernmental Interest Miscellaneous Transfers in Total expenditures $ 1'77 , 000 543 15,149 4,728 197,420 ,42,386 26 171,507 213,919 (16,499) (48,094) $ (64,593) ----------- ----------- Total receipts Expenditures: Personal Services Supplies Contractual Receipts over (under) expenditures Unencumbered Cash, January 1 Unencumbered Cash, December 31 60 Receipts: Interest Miscellaneous Total receipts Expenditures: Contractual Transfers Out City of Salina Community Development Revolving Statement of Receipts, Expenditures and Changes in Unencumbered Cash Budgetary Basis For the year ended December 31, 1992 Total expenditures Receipts over (under) expenditures Unencumbered Cash, January 1 Unencumbered Cash, December 31 $ 1,810 8,119 9,929 1,960 4,728 6,688 3,241 46,460 $ 49,701 ----.------- ----.------- 61 city of Salina Heritage Commission statement of Receipts, Expenditures and changes in Unencumbered Cash Budgetary Basis For the year ended December 31, 1992 Expenditures: Total expenditures Unencumbered Cash, January 1 Unencumbered Cash, December 31 $ $ ----------- ----------- 0 426 426 62 Receipts: Intergovernmental Miscellaneous Total receipts Expenditures: Capital Outlay Contractual Other Services Supplies City of Salina Fair Housing Statement of Receipts, Expenditures and changes in Unencumbered Cash Budgetary Basis For the year ended December 31, 1992 and Charges Total expenditures Receipts over (under) expenditures Unencumbered Cash, January 1 Unencumbered Cash, December 31 $ 30,000 978 30,978 3,529 2,122 4,118 1,520 11,289 19,689 1,844 -r- 21,533 ----------- ----------- 63 City of Salina Special Law Enforcement Statement of Receipts, Expenditures and Changes in Unencumbered Cash Budgetary Basis For the year ended December 31, 1992 Receipts: Miscellaneous Total receipts Expenditures: Total expenditures Receipts over (under) expenditures Unencumbered Cash, January 1 Unencumbered Cash, December 31 $ 0 0 0 0 4, -1159 $ 4, -1159 --------.--- --------.--- 64 Receipts: Intergovernmental Miscellaneous Total receipts Expenditures: Personal services supplies City of Salina Police Grants statement of Receipts, Expenditures and changes in Unencumbered Cash Budgetary Basis For the year ended December 31, 1992 Total expenditures Receipts over (under) expenditures Unencumbered Cash, January 1 Unencumbered Cash, December 31 $ 27,314 1,000 28,314 19,286 1,631 20,917 7,397 a $ 7,397 ------------ ------------ 65 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 government is obligated in some manner for the payment. City of Salina Comparative Balance Sheets Debt Service Fund December 31, 1992 and 1991 TOTALS 1992 1991 Assets: Cash and Investments Taxes Receivable Special Assessments Receivable S 335,915 1,295,455 3,114,046 S 304,252 1,151,048 3,659,089 Total assets 4,745,416 5,114,389 .:....-.-... _nnnn__- -_____nnn liabilities and Fund Balances liabilities: Deferred Revenue Total liabilities 4,409,501 4,810,137 4,409,501 4,810,137 335,915 304,252 335,915 304,252 S 4,745,416 S 5,114,389 -n-..:::.:. ::::u:n::. Fund Balances: Unreserved fund balance Total fund balances Total liabilities and fund balances 66 Revenue: Taxes Speci a 1 Assessments Interest Mi sce 11 aneous Total Revenues Expendi tures: Debt Servi ce Total Expenditures Revenue over (under) expenditures Other Fi nand ng Sources (Uses): Operating Transfers in Bond Proceeds Purchase of Bond Escrow/Issuance Costs Total Other Financing Sources (Uses) Revenues and other financing sources over (under) expenditures and other financing uses Fund Balances, January I Res i dua 1 Equity Trans fers in Fund Balances, December 31 City of Sa 1 i na Comparative Statement of Revenues, Expenditures and Changes i n Fund Balances Debt Servi ce Fund Years Ended December 31, 1992 and 1991 TOTALS 1992 1991 $ 1,210,351 $ 757,342 808,887 661,782 4,764 12,146 35,450 33,222 2,059,452 1,464,492 2,768,149 2,299,444 2,768,149 2,299,444 (708,697) (834,952) 737,950 760,566 1,660,000 0 0,657,590) 0 740,360 760,566 31,663 (74,386) 304,252 344,280 0 34,358 $ 335,915 $ 304,252 ------------ ------------ ------------ ------------ 67 City of Salina Bond and Interest Fund Statement of Receipts, Expenditures and Changes in unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1992 Receipts: Taxes special Assessments Accrued Interest on Miscellaneous Transfers in Bond Proceeds Bonds Total receipts Expenditures: Principal Interest Commission and Postage Refunding Escrow Account Bond Issue Cost Cash Reserve Total expenditures Receipts over (under) expenditures Unencumbered Cash, January 1 Unencumbered Cash, December 31 Budget Actual Variance $ 1,215,145 $ 1,210,351 $ (4,794) 765,000 808,887 43,887 0 4,764 4,764 31,472 35,450 3,978 737,950 737,950 0 0 1,660,000 1,660,000 2,749,567 4,457,402 1,707,835 1,977,000 1,992,000 (15,000) 879,493 775,387 104,106 1,500 762 738 0 1,625,650 (1,625,650) 0 31,940 (31,940) 150,000 0 150,000 3,007,993 4,425,739 (1,417,746) (258,426) 31,663 :290,089 258,426 304,252 45,826 $ 0 $ 335,915 $ .335,915 ----------- ---------- --,-------- ----------- ---------- --,-------- 66 CAPITAL PROJECTS FUND Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds or by general fund sales tax monies. City of Salina Combining Balance Sheet Capita 1 Project Funds December 31, 1992 (With comparative totals for December 31, 1991) T ota 1 assets PREMIER TOTALS BASEBALL CONSTRUCTION FIELD 1992 1991 468,220 1,392 469,612 387,651 42,258 0 42,258 0 510,478 1,392 511,870 387,651 ============ ============ ===n===_._. ...n...==-. Assets: Cash and Investments Accounts Recei vab 1 e Liabilities and Fund Balances Liabilities: Accounts Payable Retainage Payable Total Liabilities 16,988 1,392 18,380 51,322 47,538 0 47,538 107,909 64,526 1,392 65,918 159,231 415,164 0 415,164 272,453 30,788 0 30,788 (44,033) 445,952 0 445.952 228,420 510,478 1.392 511.870 387,651 =nuun--= ==n..n==n ....n...... ..n.n...n Fund Balances: Reservat i on of fund balance Unreserved fund balance Total fund balances Total liabilities and fund balances 69 City of Salina Combining Statement of Revenues, Expenditures and Changes in Fund Balances Capital Project Funds Year Ended December 31, 1992 (With comparative totals for December 31, 1991) Total Revenues PREMIER TOTALS BASEBALL CONSTRUCTION FIELD 1992 1991 167,843 D 167,843 30,046 10,398 2,881 13,279 19,954 53,878 0 53,878 105,449 607,785 223,500 831,285 0 839,904 226,381 1,066,285 155,449 Revenues: Intergovernmental Interest Rei mbursements Mi sce 11 aneous Expendi tures: Capita lOut 1 ay Total Expenditures 2,276,280 226,473 2,502,753 l,967,059 2,276,280 226,473 2,502,753 1,967,059 0,436,376) (92) 0,436,468) 0,811,610) 0 0 0 70,195 2,151,OOD 0 2,151,000 6,069,458 (497,000) 0 (497,000) (4,300,525) 1,654,000 0 1,654,000 1,839,128 217,624 (92) 217,532 27,518 228,328 92 228,420 235,260 0 0 0 (34,358) 445,952 0 445,952 228,420 ===02======= ===02======= --_u_u__u ============ -_uuu__u Revenues over (under) expendi tures Other Financing Sources (Uses): Operating Transfers in Bond and Temporary Note Proceeds Temporary Note and Interest payments Total other financing sources (uses) Revenues and other fi nanci ng sources over (under) expenditures and other fi nanci ng uses Fund Ba 1 ances, January 1 Residual Equity Transfers in (out) Fund Balances, December 31 70 Receipts: Intergovernmental Interest Reimbursements other Financing Total receipts Expenditures: capital Outlay Temporary Notes city of Salina Construction Statement of Receipts, Expenditures and Changes in Unencumbered Cash Budgetary Basis For the year ended December 31, 1992 Total expenditures Receipts over (under) expenditures Unencumbered Cash, January 1 Unencumbered Cash, December 31 $ :,25,585 10,397 661,663 2,151,000 2,948,645 2,418,991 497,000 2,915,991 32,654 {44,126) $ (11,472) ------------ ------------ 71 Receipts: Interest Reimbursements Total receipts Expenditures: Capital Outlay City of Salina Premier Baseball Field statement of Receipts, Expenditures and changes in Unencumbered Cash Budgetary Basis For the year ended December 31, 1992 Total expenditures Receipts over (under) expenditures Unencumbered Cash, January 1 Unencumbered Cash, December 31 $ 2,881 2:23,500 226,381 2,26,473 226,473 (92) 92 $ 0 ----------- ----------- 72 PROPRIETARY FUNDS ENTERPRISE FUNDS Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises - where costs of providing goods or services to the general public on a continuing basis are financed or I"ecovered through user charges. City of Salina Cooi); ni ng Ba 1 ance Sheet Enterpri se Funds December 31. 1992 (With comparative totals for December 31. 1991) WATER TOTALS SOLID GOLF AND SANITATION WASTE CCXJRSE SEWER 1992 1991 Assets: Cash and Investments 650.837 762.777 49,163 $ 6.927.650 $ 8.390.427 $ 7.314.044 Accounts Receivable 0 0 0 717.505 717 .505 467.693 Due From Other Funds 0 0 0 37.943 37.943 11.843 Inventory and Prepaid Supplies 0 0 28.739 280.205 308.944 383.400 Restricted Cash and Investments 0 0 0 13.468.387 13.468.387 2.137.585 Fi xed Assets 882.552 868.298 1.015.880 44.438.850 47.205.580 38.811.172 Accumulated Depreciation (697.292) (349.335) (691.649) (17 .951.962) (19.690.238) (18.546.302) Deferred Issuance Costs 0 0 0 307.243 307.243 214.479 Total assets 836.097 1.281.740 402.133 48.225.821 50.745.791 30.793.914 nnn=-n=- ==n........ ====.n..=.. ==.......... =.=....nn. ==u........ Liabilities and Fund equity Liabilities: Accounts Payable 288 3.199 2.624 201.820 207.931 222.565 Accrued Compensated Absences 59.919 13.338 19.380 208.708 301.345 268.615 Due to Other Funds 37.943 0 0 0 37.943 11.843 Meter Deposits Payable 0 0 0 82.122 82.122 77 .010 Payab I e from Restri cted Assets: Accrued Interest Payable 0 0 0 597.196 597.196 129.479 Revenue Bonds Payable - Current 0 0 0 670.000 670.000 265.000 Retainage Payable 0 0 0 653.433 653.433 18.858 Revenue Bonds Payable 0 0 0 21.710.000 21.710.000 7.380.000 Total liabilities 98.150 16.537 22.004 24.123.279 24.259.970 8.373.370 Fund Equi ty: Contributed Capital and Retained Earnings: Reservation of Retained Earnings 0 0 0 0 0 0 Contri buted Capi ta I and Unreserved Retained Earnings 737.947 1.265.203 380.129 24.102.542 26.485.821 22.420.544 Total fund equity 737.947 1.265.203 380.129 24.102.542 26.485.821 22.420.544 Total liabilities and fund equity $ 836.097 $ 1.281.740 402.133 $48.225.821 $50.745.791 $30.793.914 .....u..... ............ au......... ............ un........ .......u... 73 City of Salina Combining Statement of Revenues, Expenses and Changes in Retained Earnings Enterpri se Funds Year Ended December 31, 1992 (With comparative totals for December 31, 1991) WATER TOTALS SOLID GOLF AND SAN ITATl ON WASTE COURSE SEWER 1992 1991 Operating Revenues: Charges for Services 776,745 374,538 591,147 $ 6,963,105 $ 8,705,535 $ 8,334,528 Reimbursements 0 0 0 0 0 15,513 Mi sce 11 aneous 1,008 40,817 2,611 74,423 118,859 34,239 Total Operating Revenues 777,753 415,355 593,758 7,037,528 8,824,394 8,384,280 Operati ng Expenses: Public Works 785,717 327,911 0 4,371,446 5,485,074 5,363,068 Recreati on 0 0 539,902 0 539,902 442,705 Depreciation 38,860 54,789 51,279 1,069,223 1,214,151 1,094,820 Total Operating Expenses 824,577 382,700 591,181 5,440,669 7,239,127 6,900,593 Operati ng Income (loss) (46,824) 32,655 2,577 1,596,859 1,585,267 1,483,687 Nonoperati ng Revenues (Expenses): Interest 23,678 25,474 3,448 299,202 351,802 394,749 Mi sce 11 aneous 0 0 0 93,864 93,864 93,864 Debt Servi ce 0 0 0 (473,177) (473,177) (421,618) Total Nonoperating Revenues (Expenses) 23,678 25,474 3,448 (80,111) (27,511) 66,995 Net income (loss) (23,146) 58,129 6,025 1,516,748 1,557,756 1,55D,682 Fund Equi ty, January 1 761,093 1,2D7,074 374,104 20,078,273 22,420,544 2D,867,062 Change i n Contri buted Capi ta 1, net 0 0 0 2,507,521 2,507,521 2,800 Fund Equi ty, December 31 737,947 $ 1,265,203 380,129 $24,102,542 $26,485,821 $22,420,544 =======;:=a= ==a=a==;:=n ===a=a=====a =nnn===== ===na==n:= ===a======== 74 City of Salina Combi ni ng Statement of Cash Flows Enterpri se Funds Year Ended December 31, 1992 (With comparative totals for December 31, 1991) WATER TOTALS GOLF AND SOLID COJRSE SEWER WASTE SANITATIOO 1992 1991 Cash Flows from Operating Activities: Operating income 2,577 $ 1,596,859 32,655 (46,824) $ 1,585,267 $ 1,483,687 Adjustments to reconcile operating income to net cash provided by operating activities Depreciation 51,279 1,069,223 54,789 38,860 1,214,151 1,094,820 Provision for uncollectible accounts recei vab 1 e a 1,895 a a 1,895 (3,062) Change in assets and liabilities: Accounts recei vab 1 e 0 144,393 a 0 144,393 (22,975) Inventory and Prepaid Supplies 3,603 70,853 a a 74,456 (131,449) Customer Meter Deposits a 5,112 a a 5,112 2,495 Accounts Payable 465 87,026 1,528 26,168 115,187 23,546 Accrued 1 i abil ity for compensated absences 3,405 26,871 675 1,780 32,731 21,434 Total Adjustments 58,752 1,405,373 56,992 66,808 1,587,925 984,809 Net Cash Provided by Operating Activities 61,329 3,002,232 89,647 19,984 3,173,192 2,468,496 Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets (56,308) (7,315,182) (2,312) (76,744) (7,450,546) (1,398,799) Principal paid on maturing revenue bonds 0 (265,000) 0 0 (265,000) (220,000) Interest paid on revenue bonds 0 (483,362) 0 0 (483,362) (666,283) Mi sce 11 aneous income 0 93,864 0 0 93,864 93,864 Bond Proceeds 0 15,000,000 0 0 15,000,000 0 Contri buted Capi ta 1 0 2,034,400 0 0 2,034,400 0 Issuance Costs 0 (108,210) 0 0 (108,210) 0 Net Cash Used for Capi ta 1 and Related Financing Activities (56,308) 8,956,510 (2,312) (76,744) 8,821,146 (2,191,218) Cash Flows from Investing Activities: Interest on Invested Cash 3,448 360,247 25,474 23,678 412,847 466,199 Net Increase in Cash and Investments 8,469 12,318,989 112,809 (33,082) 12,407,185 743,477 Cash and Investments, January 1 40,694 8,077 ,048 649,968 683,919 9,451,629 8,708,152 Cash and Investments, December 31 49,163 20,396,037 762,777 650,837 21,858,814 9,451,629 ==.......... ==.......... ==nun.... =n......... ==u:..un= =n:un=--= Cash and Investments is compri sed of: Current 49,163 6,927,650 762,777 650,837 8,390,427 7,314,044 Restricted 0 13,468,387 0 0 13,468,387 2,137,585 Total 49,163 $ 20,396,037 762,777 650,837 $ 21,858,814 $ 9,451,629 ============ n--__nn_- ============ ===u=..:== =====n====: =:=::n====: n__--_n_n 75 city of Salina Sanitation Statement of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1992 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 Budget Actual $ 730,000 30,000 1,300 $ 802,846 23,678 1,008 761,300 827,532 453,590 122,420 15,600 64,750 66,000 91,028 583,901 488,122 132,254 13,244 59,389 76,744 91,028 0 1,397,289 860,781 (635,989) (33,249) 683,353 635,989 $ $ 0 650,104 ----------- ----------- ----------- ----------- V,:lr iance $ 72,846 (6,322) (292) 66,232 (34,532) (9,834) 2,356 5,361 (10,744) 0 !583,901 !536,508 602,740 47,364 $ 650,104 ------------ ------------ 76 City of Salina Solid Waste Statement of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1992 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 Budget Actual $ 315,000 25,000 0 $ 374,538 25,474 40,817 340,000 440,829 158,860 93,560 37,500 31,130 11,200 33,311 422,259 149,863 92,130 136,485 15,561 4,966 33,311 0 787,820 432,316 (447,820) 8,513 447,820 644,305 $ 0 $ 652,818 ----------- ----------- ----------- ----------- V,ariance $ 59,538 474 40,817 100,829 8,997 1,430 (98,985) 15,569 6,234 0 422,259 .355,504 456,333 196,485 $ 652,818 ---.-------- ---.-------- 77 City of Salina Golf Course statement of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1992 Budqet Actual V,ar iance Receipts: Charges for Services $ 504,000 $ 591,148 $ 87,148 Interest 2,000 3,447 1,447 Reimbursements 2,000 0 (2 , 000 ) Miscellaneous 2,000 2,611 611 Total receipts 510,000 597,206 87,206 Expenditures: Personal Services Supplies Contractual Other Services and Charges Capital Outlay Transfers Out Cash Reserve Total expenditures 234,565 239,929 (5,364) 83,600 86,014 (2,414) 11,000 17,921 (6,921) 122,200 136,322 (14,122) 0 64,643 (64,643) 44,373 44,373 0 63,228 0 63,228 558,966 589,202 (30,236) Receipts over (under) expenditures (48,966) 8,004 56,970 48,966 38,535 (10,431) $ 0 $ 46,539 $ 46,539 ----------- ---------- --,-------- ----------- ---------- --,-------- Unencumbered Cash, January 1 Unencumbered Cash, December 31 78 City of Salina Water and Sewer Statement of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1992 Budget Actual V,ar iance Receipts: Water Charges Sewer Charges Intergovernmental Interest Miscellaneous Bond Proceeds $ 5,096,125 2,460,000 0 300,000 100,000 0 $ 4,743,845 2,513,095 2,034,400 304,910 171,244 15,000,000 $ (352,280) 53,095 2,034,400 4,910 71,244 15,000,000 Total receipts 7,956,125 24,767,494 16,B11,369 Expenditures: Water Administration 449,220 376,651 72,569 Water Customer Accounting 575,977 640,901 (64,924) Water Distribution 505,965 430,767 75,198 Water Softening 1,683,745 1,363,567 320,178 Water Service 261,336 221,671 39,665 Sewer Collection 832,077 876,747 (44,670) Sewer Pretreatment 50,897 35,392 15,505 Debt Service 2,400 735 1,665 Issuance Costs 0 108,210 (108,210) Capital Outlay 940,000 19,449,599 (18,509,599) Transfers out 1,877,907 3,164,082 (1,:286,175) Cash Reserve 5,765,559 0 5,765,559 Total expenditures 12,945,083 26,668,322 (13,723,239) Receipts over (under) expenditures (4,988,958) (1,900,828) 3,088,130 Unencumbered Cash, January 1 4,988,958 4,298,070 (690,888) Unencumbered Cash, December 31 $ 0 $ 2,397,242 $ 2,397,242 ----------- ----------- ---.-------- ----------- ----------- ---,-------- 79 city of Salina Water and Sewer P & I Statement of Receipts, Expenditures and Changes in Unencumbered Cash Budgetary Basis For the year ended December 31, 1992 Receipts: Interest Transfers In Total receipts $ 94,650 1,293,175 1,387,825 265,000 517,915 1,321 784,236 603,589 246,327 $ 849,916 ----.------- ----.------- Expenditures: principal Interest Commission on Bonds Total expenditures Receipts over (under) expenditures Unencumbered Cash, January 1 Unencumbered Cash, December 31 80 City of Salina Water and Sewer Bond Reserves Statement of Receipts, Expenditures and Changes in Unencumbered Cash Budgetary Basis For the year ended December 31, 1992 Receipts: Transfer from Water and Sewerage Fund Total receipts Unencumbered Cash, January 1 Unencumbered Cash, December 31 Comprised of: Extension and Bond Retirement Reserve 1990 Bond Reserve 1992 Bond reserve Depreciation and Emergency Replacement Total $ 1,340,000 1,340,000 1,891,258 3,231,258 ----------- ----------- 979,758 786,500 1,340,000 125,000 $ 3,231,258 ----------- ----------- 81 INTERNAL SERVICE FUNDS Internal service funds are used to account for the financing of goods or services provided by one department to other departments of the government and to other governmental units, on a cost reimbursement basis. City of Salina Combining Balance Sheet I nterna 1 Servi ce Funds December 31, 1992 (With comparative totals for December 31, 1991) \\QRKERS TOTALS RISK CCJoIP. CENTRAL DATA MANAGEMENT RESERVE GARAGE PROCESSING 1992 1991 Assets: Cash and Investments 29,2D9 $ 331,471 39,850 $ 162,735 $ 563,265 $ 370,316 Accounts Receivable 0 13,000 0 0 13,000 13,000 Fixed Assets 0 0 161,082 479,020 640,102 637,307 Accumulated Depreciation 0 0 (131,359) (234,929) (366,288) (288,712) Total assets 29,209 344,471 69,573 406,826 850,079 731,911 ============ ===u======= ======u==== ====-======= ===n=====u =====u===== Liabilities and Fund equity Liabilities: Accounts Payable 34 109,932 37,500 1,043 148,509 106,624 Accrued Compensated Absences 8,103 0 18,670 12,445 39,218 43,300 Total liabilities 8,137 109,932 56,170 13,488 187,727 149,924 Fund: Contri buted Capi ta 1 and Retained Earnings: Reservation of Retained Earnings 0 234,539 0 0 234,539 187,102 Contri buted Capi ta 1 and Unreserved Retained Earnings 21,072 0 13,403 393,338 427,813 394,885 Total fund equity 21,072 234,539 13,403 393,338 662,352 581,987 Total liabilities and fund equi ty 29,209 344,471 69,573 406,826 850,079 $ 731,911 ---u_------ ------------ ============ ============ ============ ====n====== -_n__--_n- ----------u 82 City of Salina Combining Statement of Revenues, Expenses and Changes in Retained Earnings Internal Service Funds Year Ended December 31, 1992 (With comparative totals for December 31, 1991) hORKERS TOTALS RISK CCH'. CENTRAL DATA MANAGEMENT RESERVE GARAGE PROCESSING 1992 1991 Operating Revenues: Charges for Servi ces 412,212 260,225 662,679 254,915 $ 1,590,031 $ 1,657,997 Reimbursements 0 0 437 0 437 96,292 Mi sce 11 aneous 0 0 0 290 290 348 Total Operating Revenues 412,212 260,225 663,116 255,205 1,590,758 1,754,637 Operatin9 Expenses: Genera 1 Government 389,571 212,692 0 178,760 781,023 821,476 Other 0 0 651,794 0 651,794 701,121 Depreciation 0 0 4,733 72,843 77 ,576 92,596 Total Operating Expenses 389,571 212,692 656,527 251,603 1,510,393 1,615,193 Operating Income 22,641 47,533 6,589 3,602 80,365 139,444 Net income 22,641 47,533 6,589 3,602 80,365 139,444 Fund Equity, January 1 0,569) 187,006 6,814 389,736 581,987 492,898 Change in Contri buted Capital, net 0 0 0 0 0 (50,355) Fund Equi ty, December 31 $ 21,072 234,539 13,403 393,338 $ 662,352 $ 581,987 ============ =====n===== ============ ===u=n==== ============ ============ 83 City of Salina Combining Statement of Cash Flows Internal Service Funds Year Ended December 31, 1992 (With comparative totals for December 31, 1991) I«JRKERS TOTALS RISK CCJo1P. CENTRAL DATA MANAGEMENT RESERVE GARAGE PROCESSING 1992 1991 Cash Flows from Operating Activities: Operati ng i ncome 22,641 47,533 6,589 3,602 80,365 $ 139,444 Adjustments to reconcile operating income to net cash provided by operatin9 activities: Oepreci ati on 0 0 4,733 72,843 77 ,576 92,596 Change in assets and liabilities: Deposit Receivable 0 0 0 0 0 03,000) Accounts Payable (205) 25,131 20,746 (3,788) 41,884 98,550 Accrued 1 i abil ity for compensated absences 468 0 (5,374) 824 (4,082) 6,356 Total adjustments 263 25,131 20,105 69,879 115,378 184,502 Net Cash Provided by Operatin9 Activities 22,904 72,664 26,694 73,481 195,743 323,946 Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets 0 0 (2,795) 0 (2,795) 00,420) Net Increase in Cash and Investments 22,904 72,664 23,899 73,481 192,948 313,526 Cash and Investments, January 1 6,305 258,807 15,951 89,254 370,317 56,791 Cash and Investments, December 31 29,209 331,471 39,850 162,735 563,265 $ 370,317 n.....uan :::....==... ..u....n.. =n".....n :==..nn... =n...a..... Cash and Investments i s Compromi sed of: Current 29,209 331,471 39,850 162,735 563,265 370,317 Restricted 0 0 0 0 0 0 Total 29,209 331,471 39,850 $ 162,735 563,265 370,317 n......nn ...n...nn .....n..... ............ :........... =a.......... 84 City of Salina Risk Management Statement of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1992 Receipts: Miscellaneous Transfers in Total receipts Expenditures: Personal Services Supplies Contractual other Services and Charges Capital Outlay Cash Reserve Total expenditures Receipts over (under) expenditures Unencumbered Cash, January 1 Unencumbered Cash, December 31 Budget Actual $ $ 0 358,338 2,099 410,113 358,338 412,212 41,516 1,900 345,800 3,700 0 51,580 42,683 1,429 340,172 3,419 1,400 0 444,496 389,103 (86,158) 23,109 86,158 6,066 $ $ 0 29,175 ---------- ---------- ---------- ---------- Variance $ 2,099 51,775 53,874 (1,167) 471 5,628 281 (1,400) 51,580 55,393 109,267 {80,092) $ 29,175 ----------- ----------- 85 City of Salina Worker's compensation Reserve Statement of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1992 Budqet Actual Variance Receipts: Transfers in $ 312,000 $ 260,225 $ (51,775) Total receipts 312,000 260,225 (51,775) Expenditures: Contractual 236,600 191,332 45,268 Cash Reserve 187,400 0 187,400 Total expenditures 424,000 191,332 232,668 Receipts over (under) expenditures ( 112,000) 68,893 180,893 Unencumbered Cash, January 1 112,000 252,851 140,851 Unencumbered Cash, December 31 $ 0 $ 321,744 $ 321,744 ----------- ----------- ------------ ----------- ----------- ------------ 86 City of Salina Data Processing statement of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1992 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 Budget Actual $ $ 79,678 290 175,237 84,100 800 175,237 260,137 255,205 155,341 3,500 3,530 47,900 7,000 2,330 88,875 157,948 3,385 3,530 10,791 0 2,330 0 308,476 177,984 (48,339) 77,221 48,339 84,327 $ $ 161,548 0 ----------- ----------- ----------- ----------- Variance $ (4,422) (510) 0 (4,932) (2,607) 115 0 37,109 7,000 0 88,875 130,492 125,560 35,988 $ 161,548 ----.------- ----.------- 87 city of Salina Central Garage Statement of Receipts, Expenditures and Changes in Unencumbered Cash Budget and Actual - Budgetary Basis For the year ended December 31, 1992 Receipts: Charges for Services Reimbursements Total receipts Expenditures: Personal Services Supplies other Services and Charges Capital Outlay Transfers Out Cash Reserve Total expenditures Receipts over (under) expenditures unencumbered Cash, January 1 Unencumbered Cash, December 31 Budqet Actual $ $ 662,679 437 776,920 0 776,920 663,116 177,229 548,980 12,750 3,400 4,820 70,820 191,431 448,162 13,275 3,420 4,820 0 817,999 661,108 (41,079) 2,008 41,079 (803) $ $ 1,205 0 ----------- ----------- ----------- ----------- Variance $ (114,241) 437 ( 113,804 ) (14,202) 100,818 (525) (20) 0 70,820 156,891 43,087 (41,882) $ 1,205 ----------- ---,-------- 88 FIDUCIARY FUNDS 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. This page intentionally left blank City of Salina Combi ni ng Balance Sheet Trust and Agency Funds December 31, 1992 (With comparative totals for December 31. 1991) T ota 1 assets EMPLOYEES' DEFERRED TOTALS C~PENSATION FUND 1992 1991 $ 1,218,360 $ 1,752,266 $ 1,627,358 0 202 224 1,218,360 1,752,468 1,627,582 ==.......... ==u.......= ==u........ Assets: Cash and Investments Accounts Receivable Liabilities and Fund Balances Liabilities: Accounts Payable Deferred Compensation Benefits Payable Total Liabilities 0 379,107 315,189 1,218,360 1,218,360 1,160,364 1,218,360 1,597,467 1,475,553 0 155,001 152,029 0 155,001 152,029 $ 1,218,360 $ 1,752,468 $ 1,627,582 ==..======== ============ ============ Fund Balances: Unreserved fund balance Total fund balances Total liabilities and fund balances 89 City of Salina Combining Statement of Revenues, Expenses and Changes in Retained Earnings Nonexpendable Trust Funds Year Ended December 31, 1992 (With comparative totals for December 31, 1991) TRI- TOTALS CITIZENSHIP CEMETERY MAUSOLELH CENTENNIAL TRUST ENIJCWo1ENT ENIJCWo1ENT C(Mo!ISSION 1992 1991 Operating Revenues: Charges for Servi ces 0 2,298 0 0 $ 2,298 3,397 Total Operating Revenues 0 2,298 0 0 2,298 3,397 Operating Expendi tures: Other 1,000 4,087 a a 5,087 787 Total Operating Expenditures 1,000 4,087 a a 5,087 787 Operating Income (loss) 0,000) 0,789) a a (2,789) 2,610 Nonoperating Revenues: Interest 724 4,205 693 139 5,761 7,555 Total Nonoperating Revenues 724 4,205 693 139 5,761 7,555 Net income (loss) (276) 2,416 693 139 2,972 10,165 Fund Balances, January 1 13,985 116,429 18,947 2,668 152,029 141,864 Fund Balances, December 31 $ 13,709 $ 118,845 19,640 2,807 $ 155,001 152,029 :nnnnn. ::nn.:_:=- :::n.n:n. ::n.:nn=- ::.nnnn. :::n..n:n 90 City of Salina Combining Statement of Cash Flows Nonexpendable Trust Funds Year Ended December 31, 1992 (With comparative totals for December 31, 1991) TRI- TOTALS CITIZENSHIP CEMETERY MAUSOLElJo1 CENTENNIAL TRUST EN!JQ<t.1ENT EN!JQ<t.1ENT Ca+tISSIOO 1992 1991 Cash Flows from Operatin9 Activities: Operating income 0,000) 0,789) 0 S 0 (2,789) S 2,610 Adjustments to reconcile operating income to net cash provided by operating activities Change in assets and liabilities: 0 0 0 0 0 0 Net Cash Provided by Operating activities 0,000) 0,789) 0 0 (2,789) 2,610 Cash Flows from Investing Activities: Interest on invested cash 728 4,205 693 157 5,783 7,593 Net Increase in Cash and Investments (272) 2,416 693 157 2,994 10,203 Cash and Investments, January 1 13,837 116,429 18,947 2,592 151,805 141,602 Cash and Investments, December 31 S 13,565 118,845 19,640 S 2,749 154,799 151,805 u.....n... sn......... =........... =..........s =....n:u.. =:.........= Cash and Investments is Comprised of: Current 13,565 118,845 19,640 2,749 154,799 S 151,805 Restri cted 0 0 0 0 0 0 Total 13,565 118,845 19,640 S 2,749 154,799 151,805 ==...._=-==- =::-::_=_=n =_::n_::_:= ===:.::-:=:: :=::n__:n= ==n:::::::- 91 City of Sa1 i na Agency Funds Combining Statement of Changes in Assets and liabilities For the Year Ended December 31, 1992 Emp 1 oyees' Special Fire Deferred Assessment Insurance Peg Payro 11 Compensation Escrow Proceeds Access Clearing Fund Total Additions: Prepaid special assessments $ 136,476 0 0 $ 0 $ 0 136,476 Interest 5,288 97 3,391 0 0 8,776 Deposit 0 3,525 0 0 0 3,525 Franchi se Recei pts 0 0 400,611 0 0 400,611 Transfers from other funds 0 0 0 13,409,912 0 13,409,912 Contri but i on to deferred 0 0 0 0 0 0 Compensation and Earnings 0 0 0 0 143,412 143,412 141,764 3,622 404,OC2 13,409,912 143,412 14,102,712 Deletions: Assessments pai d 22,767 0 0 0 0 22,767 Admi ni strative Expendi tures 1,138 0 0 0 0 1,138 Refund of deposit 0 278 0 0 0 278 Contractua 1 0 0 404,002 0 0 404,002 Payroll payments 0 0 0 13,467,195 0 13,467,195 Wi thdrawa 1 s from deferred 0 0 0 0 0 0 Compensation 0 0 0 0 85,416 85,416 Total deletions 23,905 278 404,002 13,467,195 85,416 13,980,796 Change in assets and liabilities 117,859 3,344 0 (57,283) 57,996 121,916 Balance, January 1 105,225 995 0 208,968 1,160,364 1,475,552 Balance, December 31 $ 223,084 4,339 0 151,685 $ 1,218,360 $ 1,597,468 ----------- --_____n_- ----------- --____nn- n______--- ----------- ------_u_- ----------- ----------- -_u_u_--- n___-_-_n __n__--__- 92 City of Salina Citizenship Trust Statement of Receipts, Expenditures and Changes in Unencumbered Cash Budgetary Basis For the year ended December 31, 1992 Receipts: Interest Total receipts Expenditures: Other Services and Charges Total expenditures Receipts over (under) expenditures Unencumbered Cash, January 1 Unencumbered Cash, December 31 $ 727 727 1,000 1,000 (273) 13,837 $ 13,564 ---.-------- --_.-------- 93 City of Salina Cemetery Endowment Statement of Receipts, Expenditures and Changes in Unencumbered Cash Budgetary Basis For the year ended December 31, 1992 Receipts: Charges for Services Interest Total receipts Expenditures: Other services and charges Capital Outlay Total expenditures Receipts over (under) expenditures Unencumbered Cash, Janaury 1 Unencumbered Cash, December 31 $ 2,299 4,205 6,504 37 4,050 4,087 2,417 116,429 $ 118,846 ---,-------- ---,-------- 94 City of Salina Mausoleum Endowment Statement of Receipts, Expenditures and Changes in Unencumbered Cash For the year ended December 31, 1992 Receipts: Interest Total receipts Unencumbered Cash, January 1 Unencumbered Cash, December 31 $ 693 693 18,947 $ 19,640 ------------ ------------ 95 City of Salina Special Assessment Escrow Statement of Receipts, Expenditures and Changes in Unencumbered Cash For the year ended December 31, 1992 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 $ 136,476 5,288 141,764 22,767 1,138 23,905 117,859 105,225 $ 223,084 ---.-------- ---.-------- 96 City of Salina Tricentennial Commission Statement of Receipts, Expenditures and Changes in Unencumbered Cash For the year ended December 31, 1992 Receipts: Interest Total receipts unencumbered Cash, January 1 Unencumbered Cash, December 31 $ 157 157 2,592 $ 2,749 ----------- ----------- 97 Receipts: Taxes - Franchise Interest Total receipts Expenditures: Contractual City of Salina PEG Access Statement of Receipts, Expenditures and Changes in Unencumbered Cash For the year ended December 31, 1992 Total expenditures Receipts over (under) expenditures Unencumbered Cash, January 1 Unencumbered Cash, December 31 $ 400,612 3,390 404,002 404,002 404,002 0 0 $ 0 ----------- ----------- 98 City of Salina Fire Insurance Proceeds Statement of Receipts, Expenditures and Changes in Unencumbered Cash For the year ended December 31, 1992 Receipts: Interest Miscellaneous Total receipts Expenditures: Other services and charges Total expenditures Receipts over (under) expenditures Unencumbered Cash, January 1 Unencumbered Cash, December 31 $ 97 3,525 3,622 278 278 3,344 995 $ 4,339 ----------- ----------- 99 ACCOUNT GROUPS GENERAL FIXED ASSETS City of Salina Comparative Statement of General Fixed Assets December 31, 1992 and 1991 1992 General Fixed Assets: Land Land Improvements Buildings Equipment Vehicles $ 2,501,353 174,289 9,983,921 3,714,195 2,872,157 Total General Fixed Assets 19,245,915 ------------ ------------ Investment in General Fixed Assets $19,245,915 ------------ ------------ 1991 $ 2,501,353 30,000 9,428,701 3,437,474 2,758,428 18,155,956 ------------ ------------ $18,155,956 ------------ ------------ 100 GENERAL LONG-TERM DEBT Other Debits: Amount to be provi ded - Speci a I Assessments Amount to be pravi ded Amount Available in Debt Service Totals Liabilities: Accrued compensated absences Temporary notes payable General Obligation Bonds Payable Total City of Salina Comparative Statement of General Long-Tenn Debt Dec~r 31, 1992 and 1991 1992 1991 $ 3,114,046 $ 3,659,089 10,951,588 10,578,926 335,915 304,252 14,401,549 14,542,267 u.n.nn ::nnnn 1,125,549 1,023,267 1,021,000 607,000 12,255,000 12,912,000 $14,401,549 $14,542,267 :n.unn ::nnnn 101 STATISTICAL SECTION This page intentionally left blank Fiscal year 1991 1992 (I) (2) HEALTH AND WELFARE $ 146,615 138,733 City of Salina General Governmental Ependitures by Functions (1) Last Two Fi sea I Years (2) DEBT SERVICE $ 2,299,444 2,768,149 Includes general, special revenue and debt service funds. Prior year expenditures are not available on a GAAP basis. CAPITAL OUTLAY $ 1,415,043 1,530,150 BICENTENNIAL CENTER $ 1,665,892 1,415,537 OTHER $ 6,362,182 6,337,016 Table 1 TOTAL $21,708,077 22,700,293 102 This page intentionally left blank Fiscal year 1991 1992 INTEREST 554,636 363,734 City of Salina Genera I Governmenta 1 Revenues by Source (1) Last Two Fi sea 1 Years (2) Table 2 REIMBURSEMENTS MISCELLANEOOS TOTAL 672,264 35,467 $21,128,838 21,589,285 455,285 890,109 (1) Includes general, special revenue and debt service funds. (2) Prior year expenditures are not available on a GAAP basis. 103 Fiscal year City of Salina General Governmental Tax Revenues by Source (1) Last Two Fi sca I Years (2) Table 3 1991 1992 TRANSIENT PROPERTY SALES FRANCHISE GUEST TAX TAX TAX TAX TOTAL $ 5,296,226 $ 5,916,537 $ 1,509,053 297,415 $13,019,231 5,607,496 6,287,513 1,537,171 465,145 13,897,325 (1) (2) Includes general, special revenue and debt serveice funds. Prior year expenditures are not available on a GAAP basis. 104 City of Salina Table 4 Property Tax Levies and Collections Last Ten Fi sca 1 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 1983 S 3,829,466 $ 3,739,775 97.7 56,041 $ 3,795,816 99.1 1984 3,785,082 3,712,676 98.1 140,437 3,853,113 101.8 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 95.7 105 City of Salina Assessed and Estimated Actual Value of Property Last Hi ne Fi sca 1 Years (2) Table 5 ASSESSED VALUE ESTIMATED Fiscal REAL PERSOOAL STATE fo[)TOR ACTUAL TOTAL year ESTATE PROPERTY ASSESSED VEHICLE TOTAL VALUE 1984 $67.090.240 $30.311.500 $10.045,929 $28.193.177 $135.640.846 $1.112.431.401 1985 68.486,970 30.248.415 9.942.497 26.201.223 134.879.105 1.105.009.955 1986 69.906.890 31.405.020 10.544.260 27.447.177 139.303.347 1.105.157.648 1987 72.066.960 31.552.430 10.884.189 28.786.730 143.290.309 1.147.347.527 1988 71.441.070 35.215.115 10.765.830 30.847.364 148.269.379 1.160.411.705 (1) 1989 131.092.252 13.941.911 11.333.129 32.959.186 189.326.478 1.037.898.270 1990 125.389.311 13.454,685 11.094,235 35.096.634 185.034.865 1.026.844,668 1991 134.834.179 14,314.152 11.208.252 34,515.855 194.872.458 1.075.575.019 1992 135.267,865 15.751.713 11.545.541 35.803.591 199.368.711 1.105.026.368 RATIO OF TOTAL ASSESSED VALUE TO ESTIMATEO ACTUAL VALUE 12.19% 12.21 12.60 12.49 12.78 18.24 18.02 18.12 18.04 (1) All municipalities in Kansas underwent a complete reappraisal and reclassification of real and personal property as a result of le9islative action. effective January I, 1989. This legislation reappraised property c1oser to its estimated market value and caused certain types of property to be reclassified. reduced or eliminated from ad valorem taxation. (2) Total valuation for Real Estate. Personal Property and State Assessed in 1983 was $104,100.881 however a breakdown by category is unavailable. Estimated Actual Value is not available. 106 This page intentionally left blank City of Salina Property Tax Rates Direct and Overlapping Governments Last Ten Fi sea I Years U.S.O. 305 Fi seal Operating Debt Servi ee Total USO 305 year Mi 11 age Mi 11 age Mi 11 age Other Total 1983 55.640 2.410 58.050 7.680 120.246 1984 58.860 2.460 61.320 7.805 123.641 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 Table 6 107 Taxpayer Schwan's Sales KPL Gas Service Southwestern Bell Wannack. Salina Partnershi p Onaha Hote I. I nc . Sunset Plaza. Inc. Wal-Mart Stores. Inc. Intervest Salina Ltd. Partnership Kangross Partners and Co.. Ltd. Union Pacific Railroad City of Salina Principal Taxpayers January 1. 1992 Type of Business 1992 Assessed Valuation Pi zza Manufacture Gas&. Electric Utility Telephone Utility $ 5.746.482 5.558.466 4.994.636 Retail Shopping Mall Motel Retail Developments Di scount Reta il Stores 4.453.984 1.676.875 1.467.267 1.227.123 Grocery Store 836.681 K-Mart Railroad 777.510 585.056 Table 7 Percentage of Total Assessed Valuation 2.88 2.79 2.51 2.23 .84 .74 .62 .42 .39 .29 108 Fiscal year 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 (1) Includes prepayments and delinquent collections. City of Salina Special Assessment Billings and Collections Last Ten Fiscal Years Table 8 Special Assessment Bill i ngs Sp,!ci a 1 Assessment Cl)llections(1) $777,196.04 731,090.20 843,085.97 767,807.20 1,067,396.70 1,021,973.04 927,767.70 647,655.40 807,451.57 721,333.83 $736,219 730,908 696,159 775,477 768,509 922,020 911,365 837,604 656,104 808 , 886 109 City of Salina Computation of Legal Debt Margin December 31, 1992 Table g Assessed Valuation $199,368,711 ==.......... 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 genera 1 obligation bonds 59,810,613 $34,635,000 22,380,000 3,459,136 333,505 Total debt applicable to limitation 8,462,359 Legal Debt Margin $51,348,254 ====n===== 110 City of Salina Table 10 Ratio of Net General Obligation Bonded Debt To Assessed Value and Net General Obligation Bonded Debt Per Capi ta Ratio of Net Gross Less Debt Net Bonded Debt Net Bonded Fiscal Assessed Bonded Service Bonded To Assessed Debt Per Year Population(l) Value(2)* Debt(3) Fund(4) Debt Value Capi ta 1983 41,843 129,549 $ 2,383,028 462,362 $ 1,920,666 1.48 $ 45.90 1984 41,843 135,641 2,526,296 456,396 2,069,900 1.53 49.47 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 5,151,028 4.15 147.00 1989 41,843 189,325 5,323,473 237,897 5,085,575 3.21 145.44 1990 42,303 185,035 5,801,642 344,280 5,457,362 2.95 129.01 1991 42,303 194,872 8,004,443 304,252 7,700,191 3.95 182.02 1992 42,303 199,359 8,795,864 333,505 8,462,359 4.24 200.04 Amounts expressed in Thousands (1) Per 1980 and 1990 census (2) From Table 5 (3) Amount does not i nc I ude speci a 1 assessment bonds and (4) Amount available for repayment of General Obligation revenue bonds bonds 111 City of Salina Ratio of Annual Debt Service Expenditures For General Obligation Bonded Debt(I) To Total General Governmental Expenditures Last Ten Fi sca 1 Years Table 11 Fiscal Year Total Debt Pri nci pa 1 Interest(2) Servi ce 839.304 383.030 $ 1.222.334 854.896 343.157 1.198.053 736.843 372.886 1.109.729 842.580 332.785 1.175.365 770.134 302.401 1.072.535 991.258 488.387 1.479.645 972.202 442.575 1.414.777 967.434 431.955 1.399.389 949.898 398.197 1.348.095 1.037.112 541.560 1,578.672 Ratio of Debt Servi ce to Genera I Governmenta I Expendi tures (3) Tota] General Governmenta I Expenditures (3) 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 21.708.077 22.700.293 6.21 6.95 (1) (2) (3) Excludes special assessment debt with government coomitment. Excludes bond issuance and other costs. Includes general. special revenue and debt service funds. GAAP basis infonnation not available prior tc. 1991. 112 City of Salina Computation of Direct and Overlapping Bonded Debt General Obligation Bonds December 31, 1992 Jurisdiction Net General Obligation Bonded Debt Outstandi ng Percentage Applicable To City of Salina Oi rect: City of Salina $ 8,462,359 100.00% Overlapping: Salina Airport Authority usn 305 3,820,000 5,335,000 100.00 91.00 Total $17,617 .359 unRnUR Table 12 Amount Applicable To Ci ty of Sa 1 i na $ 8,462,359 3,820,000 4,854,850 $17,137,209 =nnnRn 113 City of Salina Revenue Bond Coverage Water and Sewer Fund Last Ten Fiscal Years Table 13 Net Revenue Debt Servi ce Requi rements Fiscal Gross Operating Available for Year Revenues (1) Expenses (2) Debt Servi ce Pri nci pa I Interest Total Coverage 1983 S 3,548,457 $ 2,548,842 999,615 1,000 277 ,702 278,70,~ 3.59 1984 3,593,678 2,831,615 762,063 1,000 256,326 257,326 2.96 1985 3,579,950 2,958,751 621,199 490,000 207,306 697,306 .88 1986 3,699,736 3,187,223 512,513 310,000 181,843 491,843 1.04 1987 4,094,841 3,211,266 883,575 210,000 208,459 418,459 2.11 1988 5,488,165 3,420,799 2,067,366 300,000 352,119 652,119 3.17 1989 6,300,264 3,759,534 2,540,730 390,000 542,751 932,75] 2.72 1990 6,158,140 4,002,486 2,155,654 275,000 519,009 794,009 2.71 1991 6,774,391 4,270,897 2,503,494 220,000 542,944 762,94.01. 3.28 1992 7,131,392 4,371,446 2,759,946 265,000 517,915 782, 91~, 3.53 (1) Excludes interest income (2) Excludes depreciation 114 City of Salina Property Value. Construction and Bank Deposits Last Ten Fi sca I Years Table 14 Total Fisca I Property Penni ts Estimated Year Va I ue" Issued Valuation (1) 1983 391 $17.483.467 1984 1.112.431 415 14.835.717 1985 1.105.010 370 20.687.418 1986 1.105.157 441 34.679.250 1987 1.147.348 470 17 .391.757 1988 1.160.412 457 15.426.410 1989 1.037.898 490 18.851.000 1990 1.026.845 497 36.469.096 1991 1.075.575 562 22.665.785 1992 1.105.026 598 25.283.947 "Amounts expressed i n thousands. (1) Estimated actual value for 1983 is not available 115 SINGLE AUDIT SECTION KENNEDY AND CaE CERTIFIED PUBLIC ACCOUNTANTS OFFICES IN KANSAS NEBRASKA OKLAHOMA COLORADO HOME OFFICE: P,O. BOX 1100 SALINA, KANSAS 67402,1100 913,825,1561 INDEPENDENT AUDITORS' REPORT ON SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 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, for the year ended December 31, 1992, and have issued our report thereon dated June 16, 1993. 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 pr~s~ntation. We believe that our audit provides a reasonable basis for our Opinion. Our audit was made for the purpose of forming an opinion on the general purpose financial statements of the City of Salina, Kansas, taken as a whole. The accompanying schedule of federal financial assistance is presented for purposes of additional analysis and is not a required part of the general purpose financial statements. The information in that schedule has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. Salina, Kansas June 16, 1993 Respectfully submitted, ~~~~ MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS 116 CITY OF SALINA SCHEDULE OF FEDERAL FINANCIAL ASSISSTANCE For the Year Ended December 31, 1992 Federa 1 Federa 1 Grantor/Pass-through CFDA January I, Revenue December 31, Grantor Program Title Number 1992 Recogni zed Expenditures 1992 MAJOR PRŒRAM Environmental Protection Agency Construction Grant for Wastewater Treatment Works (di rect assi stance) Project No.C2D 1231 01 66.418 L2- $ 2,322,411 $ 2,322,411 .L..Q OTHER FEDERAL ASSISTANCE U.S.Department of Housing and Urban Development Comunni ty Development 810ck Grant/ Small Cities Program (passed through Kansas Department of Coomerce) Housing Grant No. 91-HR-080 14.219 0 195,142 195,142 0 Emergency Shelter Grants (passed through the Kansas Department of Soci a 1 and Rehabilitation Services 14.231 0 32,440 32,440 0 Fai r Housi ng Assi stance (di rect assi stance) Contract No. FF207K917008 0 48,400 48,400 0 0 275,982 275,982 0 U.S.Department of ColtJJ1erce Economic Development Administration Grant for Pub 1 i c Works and Development Facilities (direct assistance) Project No. 05-01-02531 11. 300 0 169,066 169,066 0 U.S.Department of Justice Drug Control and System Improvement - Formula Grant (Passed Through Kansas Department of Administration) 16.579 Grant No. 93-61 0 16,748 16,748 0 Grant No. 93-63 0 25,371 25,371 0 0 42,119 42,119 0 U.S.Department of Transportation National Highway Traffic Safety Grant (passed through Kansas Department of Transportati on) 20.600 Grant No. AL 92-20-06-04 0 4,632 4,632 0 TOTAL OTHER FEDERAL ASSISTANCE 0 491,799 491,799 0 TOTALS 0 0 $ 2,814,210 $2,814,210 $ 0 _uu_u_- --_uu_-- _uu_---- U___n__- 117 KENNEDY AND CaE CERTIFIED PUBLIC ACCOUNTANTS OFFICES IN KANSAS NEBRASKA OKLAHOMA COLORADO HOME OFFICE: P.O. BOX 1100 SALINA, KANSAS 67402-1100 913.825,1561 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, for the year ended December 31, 1992, and have is sued our report thereon dated June 16, 1993. We conducted our audit in accordance with generally accepted auditing standards, Government Audi ting Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget Circular A-128 "Audits of State and Local Governments." Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. In planning and performing our audit for the year ended December 31 1992, 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 in ternal 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 AND SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS 118 For the purpose of this internal control structure categories: report, policies we have classified th(~ significant and procedures in the following Accounting Controls 1. Cash and investment balances 2. Revenue / receipts 3. Purchases / disbursements 4. 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 intc;:rnal 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 limÍ1ted. Salina, Kansas June 16, 1993 Respectfully submitted" /~~~ 119 KENNEDY AND CaE CERTIFIED PUBLIC ACCOUNTANTS OFFICES IN KANSAS NEBRASKA OKLAHOMA COLORADO HOME OFFICE: P.O. BOX 1100 SALINA, KANSAS 67402-1100 913-825-1561 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: We have audited the general purpose financial statements of the City of Salina, Kansas, as of and for the year ended December 31, 1992, and have issued our report thereon dated June 16, 1993. 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 June 16, 1993 ~~C,.e/ MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS 120 KENNEDY AND CaE CERTIFIED PUBLIC ACCOUNTANTS OFFICES IN KANSAS NEBRASKA OKLAHOMA COLORADO HOME OFFICE: P,O. BOX 1100 SALINA, KANSAS 67402-1100 913-825-1561 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: We have audited the general purpose financial statements of the City of Salina, Kansas for the year ended December 31, 1992, and have issued our report thereon dated June 16, 1993. We have also audited the compliance of the City with requirements applicable to major federal financial assistance programs and have issued our report thereon dated June 16, 1993. We conducted our audits in accordance with generally accepted auditing standards, Government Audi ting 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, non-compliance with which would be material to a major federal financial assistance program. In planning and performing our audits for the year ended December 31, 1992, 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. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated June 16, 1993. 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 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 MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS 121 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. Financial reporting Controls 1. Used in Administering Compliance with Laws and Regulations 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, 1992, the City expended 83'% of its total federal financial assistance under major federal financial 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. 122 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 non-compliance 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 definc::d 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 June 16, 1993 Respectfully submitted, ~-dC~ 123 KENNEDY AND CaE CERTIFIED PUBLIC ACCOUNTANTS OFFICES IN KANSAS NEBRASKA OKLAHOMA COLORADO HOME OFFICE: P.O, BOX 1100 SALINA, KANSAS 67402-1100 913-825-1561 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, 1992, and have issued our report thereon dated June 16, 1993. We have Kansas, financial political financial applied procedures to test the compliance of the City of Salina, with the following requirements applicable to each of its federal assistance programs for the year ended December 31, 1992: activity, Davis-Bacon Act, civil rights, cash management, federal reports, allowable costs, and Drug-Free Workplace Act. 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. 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 limÌ1ted. Salina, Kansas June 16, 1993 Respectfully submitted, ~~Ck/ MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS 124 KENNEDY AND CaE CERTIFIED PUBLIC ACCOUNTANTS OFFICES IN KANSAS NEBRASKA OKLAHOMA COLORADO HOME OFFICE: P.O. BOX 1100 SALINA, KANSAS 67402,1100 913,825,1561 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, 1992, and have issued our report thereon dated June 16, 1993. 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, 1992. The management of the City is responsible for the City I 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 these 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 complied, in all material respects, 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 for the year ended December 31, 1992. 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 June 16, 1993 Respectfully submitted, .?¿ -d' ~ MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS 125 KENNEDY AND CaE CERTIFIED PUBLIC ACCOUNTANTS OFFICES IN KANSAS NEBRASKA OKLAHOMA COLORADO HOME OFFICE: P,O,BOX1100 SALINA, KANSAS 67402-1100 913,825,1561 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS TRANSACTIONS 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, 1992, and have issued our report thereon dated June 16, 1993. In connection with our audit of the 1992 general purpose financial statements of the City of Salina, Kansas, and with our consideration of the City's internal control structure used to administer federal financial assistance programs, as required by Office of Management and Budget Circular A -128, "Audits of State and Local Governments," we selected certain transactions applicable to certain nonmajor federal financial assistance programs for the year ended December 31, 1992. As required by OMB Circular A -128, we have performed auditing procedures to test compliance with the requirements governing types of services allowed or unallowed that are applicable to those transactions. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the City's compliance with these requirements. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the preceding 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 June 16, 1993 ~~/'~ MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND SEC PRACTICE SECTION AND PRIVATE COMPANIES PRACTICE SECTION OF THE AICPA DIVISION FOR CPA FIRMS 126 CITY OF SALINA Salina, Kansas SCHEDULE OF INDEPENDENT AUDITORS' FINDINGS AND QUESTIONED COSTS Year Ended December 31, 1992 Program Finding s /Noncomp Hall ce Questioned Costs None 127