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Audit - 1997 CITY OF SALINA, .KANSAS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the fiscal year ended December 31, 1997 Prepared by: Department of Finance and Administration Rodney Franz Director of Finance This page left blank intentionally. CITY OF SALINA, KANSAS Comprehensive Annual Financial Report For the fiscal year ended December 31. 1997 TABLEOFCONTENTS-CONT~D INTRODUCTORY SECTION Letter of Transmittal Organizational Chart List of Principal Officials FINANCIAL SECTION Report of Independent Certified Public Accountants General Purpose Financial Statements Combined Balance Sheet - All Fund Types, Account Groups and Discretely Presented Component Units Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types, Expendable Trust Funds and Discretely Presented Component Units Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Actual and Budget - General, Special Revenue and Debt Service Funds Combined Statement of Revenues, Expenses and Changes in Retained EamingslFund Balances - All Proprietary Fund Types, Similar Trust Funds and Discretely Presented Component Units Combined Statement of Cash Flows - All Proprietary Fund Types, Similar Trust Funds and Discretely Presented Component Units Notes To Financial Statements Combining, Individual Fund and Account Group Statements and Schedules General Fund Comparative Balance Sheets - General Fund Comparative Statements of Revenues, Expenditures and Changes in Fund Balances - General Fund Schedules of Revenues, Expenditures and Changes in Fund Balances - Actual and Budget - General Fund Statement Schedule Page v-xii xiii XlV 1 1 2 2 8 3 12 4 16 5 18 22 47 1 48 2 49 3 50 CITY OF SALINA, KANSAS Comprehensive Annual Financial Report For the fiscal year ended December 31, 1997 TABLEOFCONTENTS-CONT~D Schedule Page Special Revenue Funds 53 Combining Balance Sheet - Special Revenue Funds 4 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Special Revenue Funds 5 Schedules of Revenues, Expenditures and Changes in Fund Balances - Actual and Budget - Special Revenue Funds 6 Debt Service Fund Comparative Balance Sheets - Debt Service Fund 7 Comparative Statements of Revenues, Expenditures and Changes in Fund Balances - Debt Service Fund Schedules of Revenues, Expenditures and Changes in Fund Balances - Actual and Budget - Debt Service Fund Capital Projects Fund Comparative Balance Sheets - Capital Projects Fund 10 Comparative Statements of Revenues, Expenditures and Changes in Fund Balances - Capital Projects Fund 11 Enterprise Funds Combining Balance Sheet - Enterprise Funds 12 Combining Statement of Revenues, Expenses and Changes in Retained Earnings - Enterprise Funds 13 Combining Statement of Cash Flows - Enterprise Funds 14 Schedules of Revenues, Expenditures and Changes in Fund Balances - Actual and Budget - Enterprise Funds 15 Internal Service Funds Combining Balance Sheet - Internal Service Funds Combining Statement Of Revenues, Expenses And Changes In Retained Earnings - Internal Service Funds Combining Statement Of Cash Flows - Internal Service Funds Schedules Of Revenues, Expenditures And Changes In Fund Balances - Actual And Budget - Internal Service Funds ii 55 60 65 74 75 8 76 9 77 78 79 80 81 82 84 86 90 94 16 95 17 97 18 99 19 103 CITY OF SALINA, KANSAS FINANCIAL STATEMENTS For the fiscal year ended December 31, 1997 TABLE OF CONTENTS-CONTINUED Schedule Page Trust and Agency Funds 107 Combining Balance Sheet- Expendable Trust, Nonexpendable Trust and Agency Funds 20 108 Comparative Statements of Revenues, Expenditures and Changes in Fund Balances - Expendable Trust Fund 21 111 Combining Statement of Revenues, Expenses and Changes in Fund Balances - Nonexpendable Trust Funds 22 112 Combining Statement of Cash Flows - Nonexpendable Trust Funds 23 114 Combining Statement of Changes in Assets and Liabilities - Agency Funds 24 116 General Fixed Assets 119 Comparative Schedule Of General Fixed Assets By Source 25 120 Schedule Of General Fixed Assets - By Function And Activity 26 121 Schedule Of Changes In General Fixed Assets - By Function And Activity 27 123 STATISTICAL SECTION Special Assessments Billings and Collections Table 1 125 2 126 3 127 4 128 5 129 6 130 7 131 8 132 9 133 General Government Expenditures by Function General Government Revenues by Source General Government Tax Revenues by Source Property Tax Levies and Collections Assessed and Estimated Actual Value of Property Principal Taxpayers Property Tax Rates - Direct and Overlapping Governments Computation of Legal Debt Margins Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita 10 134 III CITY OF SALINA, KANSAS FINANCIAL STATEMENTS For the fiscal year ended December 31, 1997 TABLE OF CONTENTS - CONTINUED Table Page Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debt to Total General Governmental Expenditures 11 Computation of Direct and Overlapping Bonded Debt 12 Revenue Bond Coverage - Water and Sewer Fund 13 Property Value, Construction, and Bank Deposits Demographic Analysis SPECIAL REPORTS SECTION Report of Independent Certified Public Accountants on Compliance and on Internal Control over Financial Reporting Based on an Audit of General Purpose Financial Statements Performed in Accordance with Government Auditing Standards iv 135 136 137 14 138 15 139 140 INTRODUCTORY SECTION This page left blank intentionally. CITY MANAGER · DENNIS M. KISSINGER City,County Building · 300 West Ash Street · P.o. Box 736 Salina, Kansas 67402-0736 TELEPHONE (913) 826,7250 . FAX (913) 826-7244 Salina I:I:61d 1TIf - July 30, 1998 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, 1997, is hereby submitted. Responsibility for both the accuracy of the data and the completeness and firimess 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 Govenunent Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Salina for its comprehensive annual financial report (CAFR) for the fiscal year ended December 31, 1996. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a govermnent unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. The CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for one year only. We believe our current report continues to conform to Certificate of Achievement program requirements, and we are submitting it to GFOA. The Comprehensive Annual Financial Report is presented in three sections: introductory, financial and statistical. The introductory section includes this transmittal letter, the City's organizational chart and a list of principal officials. The financial section includes the general pmpose financial statements as well as the combined, combining, individual fund and account group financial statements and schedules, and the independent auditor's report on the financial statements and schedules. The statistical section includes selected financial and demographic information, generally presented on a multi-year basis. This report includes all funds and account groups of the City. The City provides a full range of services including police and fire protection; construction and maintenance of streets, drainage facilities and other infrastructure; recreational activities and cultural events; emergency medical services and convention facilities. In addition'to general govermnent 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 1997, the City experienced a year of solid growth in several areas and continued to solidify its standing as the regional trade center for north central and north west Kansas. Building on growth in recent years, retail expansion continued to be significant in the community, particularly in the 1-70 and South 9th Street commercial corridors. A total of 195 new business building permits were issued, with a combined value of $24,604,611. According to Kansas State University, Saline County has the third highest retail pull factor (1.40) in the State. The pull factor measures the degree to which a county area captures retail trade from outside the county. A pull factor of greater than 1 indicates that a county is attracting more retail trade from outside the county than it is losing to other counties. It is apparenI from this that Salina continues to serve as a regional economic hub in 1997. The activity in the housing industry continued unabated in 1997 with the industry working hard to meet the demand for new housing. The strong local economy and lower interest rates contributed to this demand. Over 87 new single-family homes were started in 1997 with the pace expected to continue at this level or higher through 1998. In 1997, builders started 3 new subdivision with 71 developable lots to help increase the availability of building lots, following a very strong 1996 subdivision effort. In addition to single family homes, construction on Chapel Ridge, a 144 unit, $4.87 million apartment complex, was completed. Several industries in Salina are making major expansions to their facilities. Eldorado National, the largest North American manufacturer of small commercial buses of the type used in airport or car rental shuttles, began a two phase expansion of their facilities in 1996. Phase I, consisting of a 22,000 square foot leased facility was completed in December, 1996. Phase IT, a 4,800 square foot addition to the existing facility was completed in 1997. The expansion resulted in 18 new jobs and result in about $700,000 in payroll. Coronado Engineering, began a $1.4 million, 20,700 square foot expansion project. The project, completed in September, 1997, added 8 jobs and $300,000 to the payroll. Coronado designs and constructs manufacturing systems used in the production of vinyl plastics. Salina Vortex, a manufacturer of equipment used in handling dry bulk materials, is expanding their facility by 26,260 square feet. The expansion will create 10 new jobs, and is scheduled for completion in early 1998. Salina Vortex exports products to every State and to 16 different countries. A-Plus Galvanizing has selected Salina as the location for the worlds largest hot-dip galvanizing plant. The 156,000 square foot, $9 million facility is scheduled for completion in February, 1999, and will initially employ 70 people. Major Initiatives The . City continued its efforts to meet federal envirorunental regulations at its solid waste landfill. The landfill is constructed in semi-separate disposal areas called "cells", costing $2,000,000 each. During 1997, the City of Salina requested and received approval from the Kansas Department of Health and Envirorunent for a slight increase in the height of fill in each cell. This should extend the useful life of the cells from 3 years to 4 years each. This change in operations will have a significant effect on the financial viability of the Solid Waste disposal operation. The total estimated useful life of the landfill is 40 to 60 years. Cell # 3 is scheduled for Construction in 1998, with Cell # 2 scheduled to close shortly after. Construction on a project to improve and widen Schilling Road and construct a major storm water interceptor to protect key commercial and residential areas of South Salina was completed in 1997. This project was the result of a cooperative effort of the City of Salina, Saline County, and the State of Kansas. The City's share of the $1,294,000 project was $497,000. The intersection of 9th Street and Broadway Boulevard (phase I of the South Ninth Street improvement plan) was reconstructed in 1996 at a cost of $1,220,000. This is a major access point to the South Ninth Commercial and Industrial Districts, as well a major connection between the central, downtown, western, and southern sections of the community. Phase IT of the South Ninth Street improvement plan was initiated in 1997 and is scheduled for completion in late 1998. This project will remove the existing roadway, and replace it with an concrete mban parkway design, with landscaped medians and overhead lighting, as well as provide improved traffic signals at several intersections for a cost of $2,225,000. Phase II covers the area from Otto Street to Magnolia Road. Phases III and N of this long range plan, scheduled for 2001 and 2002, will extend these improvements to the south City limits. These improvements provided a vast improvement to traffic flow and safety in the area, as well as improving the aesthetic quality of the neighborhood. The City completed work on a new interchange at 1-135 and Magnolia Street. Local funding of approximately $5,000,000 was matched with $2,500,000 in federal funds to improve access to a major retail area of the city, to Kansas State University - Salina, and to the Airport Industrial Center. This project complements planned improvements to Centennial Road (a $5,000,000 project scheduled for 1999), which also serves the Airport Industrial Center, and internal improvements currently in progress at the Center. VI The Airport Industrial Center has initiated reconstruction of 6.5 miles of secondary streets. The $4.3 million project includes reconstruction of the parking lot at the Air tenninal as well as demolition of old air base buildings, and improvements to water lines. The project, financed by General Obligation Bonds and by a Grant from the Kansas Department of Commerce and Housing is scheduled for completion in December, 1998. Water and Wastewater Improvements remain an important component of the Capital Improvements Program, with a series of wastewater pwnp stations being replaced throughout the City with an improved, lower maintenance design at a total cost of $2,465,000. In addition, major improvements to the Water treatment plant were initiated in 1997 to increase treatment capability and efficiency, and to address a groundwater contamination issue in Central Salina. By 1999 this groundwater remediation project will bring the City into full completion of a state compliance agreement, eliminating any economic impacts related to groundwater issues. Anticipated cost for the plant improvements is $5,500,000. Approximately $1,800,000 in grant funds will be available from the State of Kansas to assist in construction. The balance of the cost is financed by a 20 year low interest loan from the State of Kansas. Solid Waste disposal remains a challenge for Salina. The community remains committed to recycling and resource conservation, with several initiatives that began in 1997, including a trial yard waste recycling and composting program in addition to continuing the mulching mower rebate program. These initiatives will reduce the volume of waste to be disposed in the landfill, but will also reduce the revenue stream. Provision of expanded recycling and resource recovery services will also increase the cost of refuse collection services. The Salina Public Library completed an expansion project designed to increase the space and services available to library patrons, particularly in children's services at a cost of $1,900,000. While the bulk of the project is financed with current Library Board resources, the City of Salina has provided debt financing in the amount of $210,000. The City's Capital Improvement Plan for 1998-2002 itemizes projects totaling $ 52,873.500. The plan is updated each year, just prior to the operating budget process. Financial Overview Actions taken since 1992 have set the stage for what looks to be long-term financial stability for the City. These actions, combined with a strong economy, have allowed the City to replenish its fund balances and utilize more pay-as-you-go financing for capital improvements. Budgetary basis fund balances related to tax supported funds went from $7,666,038 at the end of1996 to $5,315,436 at the end of 1997. This balance represents 23 % of the expenses for those funds, and is consistent with the City's financial goal of maintaining those balances at about 20% of expense. Revenues to these funds were stable, while expenditures grew by about II%. A significant part of this growth was for cash capital improvements, which grew by $1,011,058. The City also established the rates needed to fund enterprise fund activities. Water rates were increased by 2.8% on January 1,1997 while Sewer rates were increased by 2.8% on July 1, 1997. Refuse collection fees were increased by 3.8% on 1/1/97. Tipping fees for the landfill were increased from $20 per ton to $28 per ton in 1997. It is anticipated that these fees will be sufficient to provide stable, continuing funding for the Solid Waste disposal operation To date, the City has shown the willingness to set fees at levels which will cover operating, capital, debt service and postc1osure costs required to meet subtitle D regulations and generally accepted accounting principles recommendations. Other enterprise fund fees are adjusted annually to meet anticipated yearly needs. Financial Information City staff is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse and that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits require estimates and judgment by management. Budgetary Controls. In addition, the City maintains budgetary controls. The objective of these budgetary controls is to vii ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Connnission Activities of all funds are included in the annual appropriated budget. The legal level ofbudgetaIy control is maintained at the Fund level, in accordance with State Statutes. However, management control is maintained at the department level. The City uses an encumbrance accounting system, in which estimated purchase amounts are recorded prior to the release of purchase orders to vendors. Open encumbrances are reported as reservations of fund balance at December 31, 1997 in the general fund and the special revenue funds. Various internal compliance procedures are implemented to insure proper implementation of the budget as well as to maintain a degree of accountability for both revenues and expenditures. General Government Functions Shown below are the December 31 actual budgetaIy basis fund balances in the city's tax supported fimds for 1994, 1995, 1996, and 1997. Fund 1994 1995 1996 1997 General $4,313,622 $4,243,971 $4,512,205 $3,508,943 Employee Benefits 810,223 1,199,369 1,595,601 451,777 Utility 236,111 348,790 409,667 391,589 Special Liability 52,139 78,470 96,026 95,368 Bond and Interest 797,083 1,024,020 1,052,539 867,759 Fund Balance $6,209,178 $6,894,620 $7,666,038 $5,315,436 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Operating expenditures tax supported funds $19,243,378 19,298,921 $20,203,037 $22,459,055 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Fund balance as percent of operating expenditures 32.3% 35.7% 37.9% 23.7% ------ ------ ------ ------ ------ ------ ------ ------ The following table presents a sunnnary of General Fund, Special Revenue Funds and Debt Service Fund GAAP basis revenues for the years ended December31, 1996 and 1997. Revenue 1995-1996 Change 858,853 (145,452) 36,268 7,055 (318,494) (64,372) (394,324) (20,466) Taxes Intergovernmental Charges for Services Fines Interest Special Assessments Other Total Revenues 1997 $18,416,347 3,197,436 3,197,039 977,288 589,921 1,127,400 586,251 $28,091,682 1997 % of Total 65.6 11.4 11.4 3.5 2.1 4.0 2.0 100.0 1996 1996 % of Total $17,557,494 62.5 3,342,888 11.9 3,160,771 11.2 970,233 3.5 908,415 3.2 1,191,772 4.2 980,575 3.5 $28,112,148 100.0 Total revenues were relatively stable. Taxes increased, due to a resunled growth rate in sales taxes, and in increased property taxes. Intergovernmental revenues decreased, mostly in the area of Conmmnity Development grants. Interest revenues to the General, Special Revenue, and debt service funds decreased significantly, however, tlris is due, in part, to a change in the way those earnings were allocated. Interest income to the Internal Service and Enterprise fimds increased. Total interest earnings for all funds decreased by $199,908. This was due to changing rates in the money markets. The reduction in "Other" revenues is due to receiving a refund from the health insurance carrier in 1996 that was not received in 1997. Vlll The following table presents a sunnnary of General Fund, Special Revenue Funds and Debt Service Fund GAAP basis expenditures for the years ended December 31, 1996 and 1997. ExPenditure 1996 - 1997 1997 1997 % of 1996 1996 % of Total Change Total General Government 320,678 $5,721,204 19.0 $5,400,526 19.6 Public Safety 630,795 8,123,762 27.0 7,492,967 27.2 Public Works (73,441) 2,557,584 8.5 2,631,025 9.6 Recreation 75,338 1,948,225 6.5 1,872,887 6.8 Cultural 53,518 522,763 1.7 469,901 1.7 Community Development (227,198) 246,047 .8 473,245 1.7 Health & Welfare 16,695 491,299 1.6 474,604 1.7 Bicentennial Center (86,719) 1,681,770 5.6 1,768,489 6.4 Debt Service 1,375,270 4,042,308 13.5 2,667,038 9.7 Capital Outlay 264,938 4,525,977 15.1 4,261,039 15.5 Other 146,803 176,364 .6 29,561 .1 Total Expenditures 2,496,021 $30,037,303 100.0 $27,541,282 100.0 ---------- ---------- ---------- ---------- ---------- ---------- Increases in General Government were largely attributable to increases in Employee Benefits, especially Health Insurance; and in contingency expenditures in the General Fund. Public Safety expenditures increased primarily due to inflationary pressures and capital acquisition costs. Debt Service shows the largest increase, which is due to application of cash to the reduce the balances due on the debt outstanding for the construction of the Magnolia Interchange. The amount expended for Capital Outlay from operating fund cash increased by $264,938. This continues the trend in recent years of using cash in place of debt financing for major capital projects. This approach conserves the capacity to issue future debt, while maintaining and expanding the community's physical infrastructure. The ability to use cash for Capital Improvements reflects the sound economy of the area and the commitment of local officials to maintenance of community facilities. Proprietary Operations The City has four enterprise operations: Water and Sewer, Golf Course, Solid Waste and Sanitation Significant changes occurred in each. The table below summarizes some key operational statistics for the enterprise funds: 1996 - 1997 1997 1996 Change Charges for Services: Water and Sewer 994,154 $11,370,161 $10,376,007 Sanitation 96,660 $1,222,203 $1,125,543 Solid Waste 524,614 $2,490,052 $1,965,438 Golf Course 106,031 $782,162 $676,131 Water Account billings 1,853 224,473 222,620 Water Metered (billion gallons) (.042) 2.026 2.068 Wastewater Treated (billion gallons) (.30) 1. 723 1.753 Solid Waste Tonnage at landfill (9,100) 84,233 93,333 Number of Vehides at Landfill (1,591) 21,984 23,575 Golf Rounds 2,528 44,619 42,091 Sanitation Customers 149 12,921 12,772 Water and Sewer rates were both changed in 1997, with Water being increased by 2.8% on 1/1/97 and Sewer Rates ix increased by 2.8% on 7/1/97. Sanitation rates were increased by 8% on 1/1/97. Water and sewer revenues increased by $940,569 (9.0%) in 1997 despite a decline in the amount of water metered. This is due, in part, to the rate increase and to the increase in the customer base. Interest revenues allocable to the Water and sewer Fund increased by $31,890. Total revenues to the Golf Fund increased by about $127,000. Approximately $87,000 of this was in charges for services, which reflects both a rate adjustment and an increase in rounds played. The remainder of the revenue increase was due largely to pro shop and food and beverage sales. The City continued the process of updating the solid waste facility to meet subtitle D Federal regulations. Rates were increased to $28/ton in 1997 Disposal fees are scheduled to increase to $29/ton in 1998, with future rate increases anticipated, although on a scale consistent with inflationary trends. Solid Waste service charges did increase by $605,557. This fund now shows a healthy net income, and adequate resources to service the debt on new cells as they are constructed. Solid Waste tormage did show a decrease due to the loss of several of the Counties that were contracting for services. Sanitation charges increased by $100,827, or 8.9%, however, this fund still shows a net loss on operations. This is due largely to the rapid growth in solid waste disposal charges allocated to the fund. In February, 1997, the City implemented a partial self funded health insurance program for employees, replacing the conventional insurance plan that had provided this benefit Individual stop loss coverage is purchased with an attachment point of $50,000. The aggregate stop loss coverage is set at a about $1,950,000. Dental coverage is provided. The dental portion of the plan is fully self insured and not subject to stop loss protection, however, total benefits are limited to $1,500 per year per person. After 11 months of operation, the plan had assessed $2,357,382 in premiums, and had incurred a total of $2,309,082 in claims and expenses, including an allowance for those claims incurred but not yet reported. The City utilizes four internal service funds: Risk Management, Worker's Compensation Reserve, Central Garage and Data Processing. In 1991, the City instituted a partially self-insured workers compensation program. The Worker's Compensation Reserve is used to buy excess insurance coverage, compensate a third party claims administrator and pay claims as they arise. The City's goal is to establish a $1,000,000 reserve in this fund to provide adequate reserves should we experience heavy claims. At the end of 1997, fund equity was $1,511,404, meeting this goal, compared to fund equity of $1,129,611 in 1996. The other internal service funds are used to purchase insurance, repair City vehicles or operate a City-wide computer system. These costs are apportioned to the various City departments based upon usage. Debt Administration The City issued no new Revenue Bonds during 1997. The total amount of revenue bonds outstanding at December 31, 1997 was $33,875,000. There is a reserved investment of$1O,761,870 pledged to retire the bonds refunded in the 1994 crossover refunding. The resulting net obligation against the Water/Sewer Utility's revenue stream is $ 23,113,130. With the City's policy of issuing revenue bonds for no more than 20 years, the final maturity for these bonds is October 1,2014. The City's general policy for General Obligation bonds is to issue them for no more than 10 years. The City issued $1,650,000 of internal improvement bonds during 1997. Total bonds outstanding at December 31, 1997 was $10,490,000 with final maturity scheduled for August 1, 2007. Based upon December 31, 1997 General Obligation bonds outstanding, per capita debt is $207.04. The City is well below its maximum debt limit with $62,911,279 in authority remaining. Internal Improvement temporary notes in the amount of $8,770,000 were issued in 1997. Of this amount, $3,500,000 was a refinancing of the $5,050,000 note issued for the construction of the Magnolia Interchange. The reduction in the amount was due to application of cash resources from the Debt service fund. These notes will be retired in March, 1998 with the issue of General Obligation Bonds and by applying resources accunlulated in the Debt Service Fund. The remaining notes were for Street and Subdivision developments (to be retired with Special assessments), and a small ($310,000) note for the Library expansion (for which Library resources have been pledged). x Certificate of Achievement for Excellence in Financial Reporting Presented to City of Salina, Kansas For . its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 1996 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. ~ ~;deM Y'Ih/k Executive Director Cash Manal!ement In 1992, the State of Kansas granted cities increased investing authority. The City of Salina has established an investment policy that allows maturities for up to two years and investments in the State of Kansas Municipal Investment Pool. The City stresses a conservative investment policy which provides full collateralization of investments. At December 31, 1997, investments under the City's direct control were as follows: Investment Amount Percentage Municipal Investment Pool U.S. Government Bond Escrow-US Treasury Bills $ 13,176 25,738,865 10,761,870 70.4% 29.6% Total 36,513,911, 200 100.00% The investments in the Bond Escrow are restricted to specific purposes and are not available for Government operations. Indeuendent Audit Kansas Statutes Annotated 75-1122 requires an annual audit of the books of account, financial records and transactions of all administrative departments of the City by independent certified public accountants selected by the City Commission. This requirement has been complied with and the auditor's opinion has been included in this report. Acknowledl!lllents The preparation of the Comprehensive Annual Financial Report was made possible by the dedicated, professional advice and effort of the Agler and Gaeddert auditing team. A special thank. you needs to be given to Brenda Siemsen, City Accountant, and to Betty Charles, Account Clerk II, both of whom provided outstanding service in the interim between Finance Directors and were invaluable in accmnulating information for audit. Finally, preparation of this report would not have been possible without the support of the City Commission. Sincerely, /~~ k>:/ _ 'j Dennis M. Kissin~ City Manager fZtv ce&Qon xi City of Salina, Kansas List of Principal Officials City Commission Peter F. Brungardt, Mayor Kristin M. Seaton, Commissioner Alan Jilka, Commissioner Monte Shadwick, Commissioner Don Heath, Commissioner C itv Staff Dennis M. Kissinger. City Manager Michael Morgan, Deputy City Manager Rodney Franz, Director of Finance and Administration Don Hoff, Director of Utilities Jim Hill, Chief of Police Tom Girard, Fire Chief Shawn O'Leary, Director of Engineering and General Services Keith Rawlings, Bicentennial Center Manager Steve Snyder, Parks and Recreation Director Roy Dudark, Planning and Community Development Director Martha Rhea, Director of Arts and Humanities Kaye Crawford, Human Relations Director Greg Bengston, City Attorney David Larrick, Information Services Director This page left blank intentionally. Municipal Court Administration Fire Suppression EMS Codes/Inspection Public Education Planning Permits & Inspection Community Develop. Risk Management Administration Engineering Design/Inspection Traffic General Services Streets Flood Works Central Garage Sanitation Operations Food & Beverage Businessrricket Office CITY COMMISSION Peter F. Brungardt, Mayor Don Heath Alan Jilka Kristin M Seaton Monte Shadwich Museum Arts Education Arts Services River Festival . Contract Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . Municipal Court Judge Phil Shaffer Water & Wastewater Water Treatment & Dist. Wastewater Collect.rrreat. Solid Waste Swimming Pools Golf Course Neighborhood Centers Recreation Forestry Cemetery Building Maintenance City Attorney Greg Bengstom * Patrol Investigation 911/Communications Internal Affairs City Clerk Accounting Utility Accounting Treasurer Rev. 3/23/98 This page left blank intentionally. FINANCIAL SECTION This page left blank intentionally. 234 South Main P.O. Box 1020 Ottawa, Kansas 66067 (785) 242-3170 JtJ Agl~Irt~g~~5?~S~!n~sHARTERED W. Keith Gaedden Lucille L. Hinderliter Raymond E. Meyer, Jr. REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS To the Honorable Mayor and the Board of the City Commissioners City of Salina, Kansas We have audited the accompanying general purpose financial statements of the City of Salina, Kansas as of and for the year ended December 31, 1997 as listed in the table of contents to the financial section. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We did not audit the financial statements of the Salina Airport Authority and the Housing Authority of the City of Salina, which are discretely presented component units in the accompanying financial statements. Those financial statements were audited by other auditors whose reports thereon have been furnished to us, and our opinion, insofar as it relates to the amounts included for the Salina Airport Authority and the Housing Authority of the City of Salina, is based solely on the reports of the other auditors. We conducted our audit in accordance with generally accepted auditing standards; the Kansas Municipal Audit Guide and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit and the report of other auditors provide a reasonable basis for our opinion. In our opinion, based on our audit and the reports of other auditors, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Salina, Kansas as of December 31, 1997, and the results of its operations and cash flows of its proprietary fund types and nonexpendable trust funds for the year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated June 19, 1998 on our consideration of the City of Salina, Kansas' internal control structure and a report dated June 19, 1998 on its compliance with laws and regulations. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining, individual fund and account group financial statements, schedules and additional information listed in the table of contents to the financial section are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Salina, Kansas. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. The other data included in this report, designated as the "Statistical Section" in the table of contents, has not been audited by us and, accordingly, we express no opinion on that data. In charge of and actively engaged in this audit: Ar oJ xJ~ /~ This page left blank intentionally. City of Salina, Kansas COMBINED BALANCE SHEET ALL FUND TYPES, ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNITS December 31, 1997 Governmental Fund Types Special Debt Capital General Revenue Service Projects ASSETS AND OTHER DEBITS ASSETS Cash and investments $ 5,188,535 $ 2,563,663 $ 867,759 $ 2,826,977 Cash and investments - non-expendable trusts 0 0 0 0 Cash with fiscal agent 0 0 104,790 0 Receivables (net of allowance for uncollectibles) Accounts 360,109 26,883 0 0 Taxes 2,598,707 3,556,341 1,138,685 0 Interest 242,035 0 0 0 Notes 0 175 0 0 Inventory and prepaid supplies 93,676 0 0 0 Due from funds 0 34,348 0 0 Restricted assets Cash and investments 0 0 0 0 Deferred compensation assets 0 0 0 0 Fixed assets (net of accumulated depreciation, where applicable) 0 0 0 0 Financing leases 0 0 0 0 Deferred charges 0 0 0 0 OTHER DEBITS Amount available in debt service funds 0 0 0 0 Amount to be provided for retirement of general long-term debt 0 0 0 0 Total assets and other debits $ 8,483,062 $ 6,181,410 $ 2,111,234 $ 2,826,977 LIABILITIES, EQUITY AND OTHER CREDITS LIABILITIES Accounts payable $ 333,961 $ 162,294 $ 0 $ 5,142 Retainage payable 48,703 13,890 0 34,862 Due to funds 0 34,348 0 0 Meter deposits payable 0 0 0 0 Health claims payable 0 0 0 0 Matured principal and interest payable 0 0 104,790 0 The accompanying notes are an integral part of this statement. 2 GENERAL PURPOSE FINANCIAL STATEMENTS City of Salina, Kansas Statement 1 Pal!e 2 COMBINED BALANCE SHEET ALL FUND TYPES, ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNITS December 31,1997 Total Total Primary Component Units Reporting Government Salina Salina Entity (Memo ran- Airport Housing (Memoran- dum Only) Authority Authority dum Only) ASSETS AND OTHER DEBITS ASSETS Cash and investments $ 27,229,119 $ 3,229,898 $ 528,783 $ 30,987,800 Cash and investments - non-expendable trusts 215,567 0 0 215,567 Cash with fiscal agent 104,790 0 0 104,790 Receivables (net of allowance for uncollectibles) Accounts 1,232,301 5,911 83,970 1,322,182 Taxes 7,293,733 0 0 7,293,733 Interest 280,563 0 0 280,563 Notes 175 0 0 175 Inventory and prepaid supplies 597,851 0 0 597,851 Due from funds 34,348 0 0 34,348 Restricted assets Cash and investments 11,601,880 85,000 67,888 11,754,768 Deferred compensation assets 0 67,775 0 67,775 Fixed assets (net of accumulated depreciation, where applicable) 76,418,341 18,901,924 6,585,981 101,906,246 Financing leases 0 1,374,152 0 1,374,152 Deferred charges 485,851 72,882 5,212 563,945 OTHER DEBITS Amount available in debt service funds 867,759 0 0 867,759 Amount to be provided for retirement of general long-term debt 18,178,368 0 0 18,178,368 Total assets and other debits $ 144,540,646 $ 23,737,542 $ 7,271,834 $ 175,550,022 LIABILITIES, EQUITY AND OTHER CREDITS LIABILITIES Accounts payable $ 1,427,528 $ 149,689 $ 134,421 $ 1,711,638 Retainage payable 143,880 0 0 143,880 Due to funds 34,348 0 0 34,348 Meter deposits payable 81,300 0 0 81,300 Health claims payable 387,881 0 0 387,881 Matured principal and interest payable 104,790 0 0 104,790 The accompanying notes are an integral part of this statement. 4 cont. Statement 1 Enterprise Total Primary Government (Memoran- dum Only) Proprietary Fund Types Internal Service Fiduciary Fund Types Trust and Agency Account Groups General General Fixed Long- Assets Term Debt $ 12,593,873 $ 2,674,102 $ 514,210 $ 0 $ 0 $ 27,229,119 0 0 215,567 0 0 215,567 0 0 0 0 0 104,790 777,889 19,132 48,288 0 0 1,232,301 0 0 0 0 0 7,293,733 38,443 0 85 0 0 280,563 0 0 0 0 0 175 453,824 50,351 0 0 0 597,851 0 0 0 0 0 34,348 11,601,880 0 0 0 0 11,601,880 0 0 0 0 0 0 52,350,424 404,871 0 23,663,046 0 76,418,341 0 0 0 0 0 0 485,851 0 0 0 0 485,851 o o o o 867,759 867,759 o o o o 18,178,368 18,178,368 3,148,456 $ 778,150 $ 23,663,046 $ 19,046,127 $ 144,540,646 $ 78,302,184 $ $ 317,486 $ 84,700 $ 523,945 $ 0 $ 0 $ 1,427,528 46,425 0 0 0 0 143,880 0 0 0 0 0 34,348 81,300 0 0 0 0 81,300 0 387,881 0 0 0 387,881 0 0 0 0 0 104,790 3 cont. City of Salina, Kansas COMBINED BALANCE SHEET ALL FUND TYPES, ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNITS December 3 I, 1997 Governmental Fund Types Special Debt Capital General Revenue Service Projects LIABILITIES - continued Payable from restricted assets Accrued interest payable $ 0 $ 0 $ 0 $ 0 Revenue bonds payable - current 0 0 0 0 Deferred interest -financing leases 0 0 0 0 Deferred compensation payable 0 0 0 0 Accrued compensated absences 0 0 0 0 General obligation bonds - current 0 0 0 0 Temporary notes payable 0 0 0 0 General obligation bonds payable 0 0 0 0 Revenue bonds payable 0 0 0 0 Mortgages payable 0 0 0 0 Landfill closure and postclosure 0 0 0 0 Deferred revenue 1,887,093 3,035,183 1,138,685 0 Total liabilities 2,269,757 3,245,715 1,243,475 40,004 EQUITY AND OTHER CREDITS Investment in general fixed assets 0 0 0 0 Contributed capital 0 0 0 0 Retained Earnings Reserved for encumbrances 0 0 0 0 Reserved for bond retirement 0 0 0 0 Reserved for postclosure care 0 0 0 0 Unreserved 0 0 0 0 Fund balances Reserved for encumbrances 1,345,631 243,666 0 1,194,259 Reserved for inventory 93,676 0 0 0 Unreserved Designated for debt service 0 0 867,759 0 Undesignated (deficit) 4,773,998 2,692,029 0 1,592,714 Total equity and other credits 6,213,305 2,935,695 867,759 2,786,973 Total liabilities, equity and other credits $ 8,483,062 $ 6,181,410 $ 2,111,234 $ 2,826,977 The accompanying notes are an integral part of this statement. 5 This page left blank intentionally. City of Salina, Kansas Statement 1 Pal!e 4 COMBINED BALANCE SHEET ALL FUND TYPES, ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNITS December 31, 1997 Total Total Primary Component Units Reporting Government Salina Salina Entity (Memo ran- Airport Housing (Memoran- dum Only) Authority Authority dum Only) LIABILITIES - continued Payable from restricted assets Accrued interest payable $ 376,434 $ 112,403 $ 0 $ 488,837 Revenue bonds payable - current 1,085,000 50,000 0 1,135,000 Deferred interest-financing leases 0 63,918 0 63,918 Deferred compensation payable 0 67,775 0 67,775 Accrued compensated absences 2,173,469 0 0 2,173,469 General obligation bonds - current 1,800,000 165,000 0 1,965,000 Temporary notes payable 9,470,000 0 0 9,470,000 General obligation bonds payable 8,690,000 4,560,000 0 13,250,000 Revenue bonds payable 32,790,000 555,000 0 33,345,000 Mortgages payable 0 0 681,396 681,396 Landfill closure and postclosure 976,002 0 0 976,002 Deferred revenue 6,060,961 0 8,564 6,069,525 Total liabilities 65,601,593 5,723,785 824,381 72,149,759 EQUITY AND OTHER CREDITS Investment in general fixed assets 23,663,046 0 0 23,663,046 Contributed capital 9,004,056 9,731,232 6,585,811 25,321,099 Retained Earnings Reserved for encumbrances 1,446,219 0 0 1,446,219 Reserved for bond retirement 3,501,554 0 0 3,501,554 Reserved for postclosure care 92,520 0 0 92,520 Unreserved 28,173,721 8,282,525 0 36,456,246 Fund balances Reserved for encumbrances 2,783,556 0 0 2,783,556 Reserved for inventory 93,676 0 0 93,676 Unreserved Designated for debt service 867,759 0 0 867,759 Undesignated (deficit) 9,312,946 0 (138,358) 9,174,588 Total equity and other credits 78,939,053 18,013,757 6,447,453 103,400,263 Total liabilities, equity and other credits $ 144,540,646 $ 23,737,542 $ 7,271,834 $ 175,550,022 The accompanying notes are an integral part of this statement. 7 Statement 1 Pal!e 3 Proprietary Proprietary Fiduciary Total Fund Types Fund Types Fund Types Account Groups Primary General General Government Internal Trust and Fixed Long- (Memo ran- Enterprise Service Agency Assets Term Debt dum Only) $ 376,434 $ 0 $ 0 $ 0 $ 0 $ 376,434 1,085,000 0 0 0 0 1,085,000 0 0 0 0 0 0 0 0 0 0 0 0 462,921 39,107 0 0 1,671,441 2,173,469 274,516 0 0 0 1,525,484 1,800,000 700,000 0 0 0 8,770,000 9,470,000 1,610,798 0 0 0 7,079,202 8,690,000 32,790,000 0 0 0 0 32,790,000 0 0 0 0 0 0 976,002 0 0 0 0 976,002 0 0 0 0 0 6,060,961 38,720,882 511,688 523,945 0 19,046,127 65,601,593 0 0 0 23,663,046 0 23,663,046 8,479,010 525,046 0 0 0 9,004,056 1,446,219 0 0 0 0 1,446,219 3,501,554 0 0 0 0 3,501,554 92,520 0 0 0 0 92,520 26,061,999 2,111,722 0 0 0 28,173,721 0 0 0 0 0 2,783,556 0 0 0 0 0 93,676 0 0 0 0 0 867,759 0 0 254,205 0 0 9,312,946 39,581,302 2,636,768 254,205 23,663,046 0 78,939,053 $ 78,302,184 $ 3,148,456 $ 778,150 $ 23,663,046 $ 19,046,127 $ 144,540,646 6 cant. City of Salina, Kansas COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES, EXPENDABLE TRUST FUNDS AND DISCRETELY PRESENTED COMPONENT UNITS For the fiscal year ended December 31, 1997 Governmental Fund Types Special Debt Capital General Revenue Service Projects Revenues Taxes $ 12,409,756 $ 3,404,505 $ 2,602,086 $ 0 Intergovernmental 1,460,386 1,737,050 0 807 Charges for services 1,726,096 1,470,943 0 0 Fines 976,398 890 0 0 Special assessments 0 78,537 1,048,863 0 Use of money and property 422,189 81,337 86,395 70,113 Reimbursements 80,051 31,552 0 122,550 Miscellaneous 401,916 17,139 5,593 0 Total revenues 17,476,792 6,821,953 3,742,937 193,470 Expenditures Current General government 2,076,732 3,644,472 0 0 Public safety 8,003,070 120,692 0 0 Public works 1,574,508 983,076 0 0 Parks and recreation 1,947,685 0 0 0 Cultural 522,763 0 0 0 Community development 146,825 99,222 0 0 Health and welfare 403,383 87,916 0 0 Bicentennial Center 0 1,681,770 0 0 Other 176,364 0 0 0 Capital outlay 3,194,666 1,331,311 0 2,299,728 Debt service Principal 0 0 3,443,464 4,850,000 Interest and other charges 0 0 598,844 180,805 Total expenditures 18,045,996 7,948,459 4,042,308 7,330,533 Excess (deficiency) of revenues over (under) expenditures (569,204) (1,126,506) (299,371) (7,137,063) The accompanying notes are an integral part of this statement. 8 This page left blank intentionally. City of Salina, Kansas COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- ALL GOVERNMENTAL FUND TYPES, EXPENDABLE TRUST FUNDS AND DISCRETELY PRESENTED COMPONENT UNITS For the fiscal year ended December 31, 1997 Governmental Fund Types Special Debt Capital General Revenue Service Projects Other financing sources (uses) Operating transfers in $ 17,000 $ 561,567 $ 0 $ 0 Operating transfers out (329,866) (248,701) 0 0 Bond and temporary note proceeds 0 0 50,000 10,110,000 Sale of assets 29,433 0 0 0 Total other financing sources (uses) (283,433) 312,866 50,000 10,110,000 Excess (deficiency) of revenues and other sources over (under) expenditures and other uses (852,637) (813,640) (249,371) 2,972,937 Fund balances (deficit), January 1 6,978,607 3,749,335 1,052,539 (294,038) Residual equity transfer in 244,234 0 64,591 416,899 Residual equity transfer out (156,899) 0 0 (308,825) Fund balances (deficit), December 31 $ 6,213,305 $ 2,935,695 $ 867,759 $ 2,786,973 The accompanying notes are an integral part of this statement. 10 Statement 2 Fiduciary Total Component Total Fund Type Primary Unit Reporting Government Salina Entity Expendable (Memo ran- Housing (Memoran- Trust dum Only) Authority dum Only) $ 0 $ 18,416,347 $ 0 $ 18,416,347 0 3,198,243 3,129,857 6,328,100 0 3,197,039 157,914 3,354,953 0 977 ,288 0 977 ,288 0 1,127,400 0 1,127,400 2,183 662,217 10,869 673,086 0 234,153 0 234,153 0 424,648 81,536 506,184 2,183 28,237,335 3,380,176 31,617,511 0 5,721,204 0 5,721,204 0 8,123,762 0 8,123,762 0 2,557,584 0 2,557,584 540 1,948,225 0 1,948,225 0 522,763 0 522,763 0 246,047 762,902 1,008,949 0 491,299 0 491,299 0 1,681,770 0 1,681,770 0 176,364 98,587 274,951 0 6,825,705 1,298,665 8,124,370 0 8,293,464 0 8,293,464 0 779,649 46,510 826,159 540 37,367,836 2,206,664 39,574,500 1,643 (9,130,501) 1,173,512 (7,956,989) 9 cont. City of Salina, Kansas COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- ACTUAL AND BUDGET - GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUNDS For the fiscal year ended December 31, 1997 Total revenues General Fund Variance Favorable Actual Budget (Unfavorable) $ 12,334,247 $ 12,854,106 $ (519,859) 1,460,387 1,220,249 240,138 2,391,029 2,315,675 75,354 0 0 0 588,502 543,202 45,300 381,378 700,000 (318,622) 80,051 51,000 29,051 104,179 150,000 (45,821) 17,339,773 17,834,232 (494,459) Revenues Taxes Intergovernmental Fines, fees and permits Special assessments Charges for services Use of money and property Reimbursements Miscellaneous revenues Expenditures Current General government Public safety Public works Parks and recreation Cultural Community development Health and welfare Bicentennial Center Other Capital outlay Debt service Principal Interest and other charges Cash reserve Excess (deficiency) of revenues over (under) expenditures 2,060,984 2,115,250 54,266 7,876,133 7,551,011 (325,122) 1,608,530 1,730,964 122,434 1,947,685 1,905,188 (42,497) 522,763 483,521 (39,242) 146,825 194,425 47,600 403,383 403,383 0 0 0 0 176,364 126,532 (49,832) 3,749,489 2,415,187 (1,334,302) 0 0 0 0 0 0 0 4,142,947 4,142,947 18,492,156 21,068,408 2,576,252 (1,152,383) (3,234,176) 2,081,793 17,000 17,000 0 (329,866) (100,000) (229,866) 0 0 0 29,433 15,000 14,433 (283,433) (68,000) (215,433) Total expenditures Other financing sources (uses) Operating transfers in Operating transfers out Bond proceeds Sale of assets Total other financing sources (uses) The accompanying notes are an integral part of this statement. 12 Statement 2 Pal!e 2 Fiduciary Total Component Total Fund Type Primary Unit Reporting Government Salina Entity Expendable (Memo ran- Housing (Memo ran- Trust dum Only) Authority dum Only) $ 0 $ 578,567 $ 0 $ 578,567 0 (578,567) 0 (578,567) 0 10,160,000 0 10,160,000 0 29,433 0 29,433 0 10,189,433 0 10,189,433 1,643 36,910 o o 1,058,932 11,523,353 725,724 (465,724) 1,173,512 (1,311,870) o o 2,232,444 10,211,483 725,724 (465,724) $ 38,553 $ 12,842,285 $ (138,358) $ 12,703,927 11 City of Salina, Kansas COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- ACTUAL AND BUDGET - GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUNDS For the fiscal year ended December 31, 1997 General Fund Variance Favorable Actual Budget (Unfavorable) Excess (deficiency) of revenues and other sources over (under) expenditures and other uses $ (1,435,816) $ (3,302,176) $ 1,866,360 Unreserved fund balances, January 1 4,512,205 3,302,176 1,210,029 Prior year cancelled encumbrances 345,219 0 345,219 Residual equity transfer in 244,234 0 244,234 Residual equity transfer out (156,899) 0 (156,899) Unreserved fund balances, December 31 3,508,943 $ 0 $ 3,508,943 Receivables reconciliation 1,313,758 Inventory reconciliation 93,676 Retainage reconciliation (48,703) Encumbrance reconciliation 1,345,631 Non-budgeted funds 0 Fund balances, December 31 $ 6,213,305 The accompanying notes are an integral part of this statement. 14 Statement 3 Special Revenue Funds Debt Service Funds Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) $ 3,190,880 $ 3,214,707 $ (23,827) $ 2,602,086 $ 2,526,827 $ 75,259 1,727,967 1,654,833 73,134 0 0 0 18,242 179,000 (160,758) 0 0 0 76,570 80,000 (3,430) 1,048,863 963,000 85,863 625,353 698,000 (72,647) 0 0 0 67,262 0 67,262 86,395 59,915 26,480 3,822 0 3,822 0 0 0 8,000 0 8,000 5,593 0 5,593 5,718,096 5,826,540 (108,444) 3,742,937 3,549,742 193,195 4,400,870 4,345,567 (55,303) 0 0 0 208,536 192,761 (15,775) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 87,916 87,333 (583) 0 0 0 977,133 1,040,993 63,860 0 0 0 0 0 0 0 0 0 1,330,176 1,282,000 (48,176) 0 0 0 0 0 0 3,443,464 2,934,128 (509,336) 0 0 0 598,844 920,514 321,670 0 1,618,862 1,618,862 0 403,776 403,776 7,004,631 8,567,516 1,562,885 4,042,308 4,258,418 216,110 (1,286,535) (2,740,976) 1,454,441 (299,371) (708,676) 409,305 322,086 386,000 (63,914) 0 0 0 (239,086) (308,275) 69,189 0 0 0 0 0 0 50,000 0 50,000 0 0 0 0 0 0 83,000 77,725 5,275 50,000 0 50,000 13 cont. City of Salina, Kansas COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS/FUND BALANCES ALL PROPRIETARY FUND TYPES, SIMILAR TRUST FUNDS AND DISCRETELY PRESENTED COMPONENT UNITS For the fiscal year ended December 31, 1997 Fiduciary Proprietary Fund Types Fund Type Non- Internal expendable Enterprise Service Trust Operating revenues Intergovernmental $ 45,091 $ 0 $ 0 Charges for services 14,825,115 4,184,976 7,228 Reimbursements 0 171,400 0 Miscellaneous 36,732 8,052 0 Total operating revenues 14,906,938 4,364,428 7,228 Operating expenses General government 0 4,136,808 0 Public works 8,953,322 0 0 Recreation 685,819 0 0 Other 0 0 0 Depreciation 2,655,415 156,474 0 Total operating expenses 12,294,556 4,293,282 0 Operating income (loss) 2,612,382 71,146 7,228 Nonoperating revenues (expenses) Use of money and property 1,424,061 145,379 11,853 Bond issuance costs (45,562) 0 0 Debt service (2,138,855) 0 0 Mill levy 0 0 0 Gain (loss) on disposition of fixed assets (10,559) 0 0 Total nonoperating revenues (expenses) (770,915) 145,379 11,853 Net income (loss) 1,841,467 216,525 19,081 Add depreciation on assets acquired through Federal contributions 0 0 0 Increase in retained earnings/fund balances 1,841,467 216,525 19,081 Retained earnings/fund balances, January 1 30,217,356 1,895,197 196,571 Restatement (696,531) 0 0 Residual equity transfer out (260,000) 0 0 Retained earnings/fund balances, December 31 $ 31,102,292 $ 2,111,722 $ 215,652 The accompanying notes are an integral part of this statement. 16 Statement 3 Pal!e 2 Special Revenue Funds Debt Service Funds Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) $ (1,203,535) $ (2,663,251) $ 1,459,716 $ (249,371) $ (708,676) $ 459,305 2,980,037 2,671,968 308,069 1,052,539 633,676 418,863 3,086 0 3,086 0 0 0 0 0 0 64,591 75,000 (10,409) 0 0 0 0 0 0 1,779,588 $ 8,717 $ 1,770,871 867,759 $ 0 $ 867,759 548,041 0 0 0 (13,890) 0 243,666 0 378,290 0 $ 2,935,695 $ 867,759 15 City of Salina, Kansas COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES, SIMILAR TRUST FUNDS AND DISCRETELY PRESENTED COMPONENT UNITS For the fiscal year ended December 31, 1997 Fiduciary Proprietary Fund Types Fund Type Non- Internal expendable Enterprise Service Trust Cash flows from operating activities Cash received from customers and users $ 14,745,988 $ 3,442,206 $ 7,228 Cash received from quasi-external transactions 0 895,038 0 Cash paid to suppliers and employees (8,829,222) (3,799,297) 0 Cash paid for quasi-external transactions (1,023,633) (32,469) 0 Operating grant receipts 45,091 0 0 Other operating receipts 36,732 8,052 0 Net cash provided by operating activities 4,974,956 513,530 7,228 Cash flows from capital and related financing activities Purchase and construction of fixed assets (2,918,011) (65,137) 0 Proceeds from issuance of debt 260,000 0 0 Principal payments - temporary notes (695,000) 0 0 Principal payments - gen. obligation bonds (248,529) 0 0 Principal payments - revenue bonds (1,015,000) 0 0 Interest paid (2,158,662) 0 0 Proceeds from property tax 0 0 0 Proceeds from the sale of fixed assets 0 0 0 Principal received on financing leases 0 0 0 Interest received on financing leases 0 0 0 Principal received on long-term note 0 0 0 Contributed capital 0 0 0 Net cash used in capital and related financing activities (6,775,202) (65,137) 0 Cash flows from investing activities Interest received 1,446,689 145,379 11,768 Cash flows from noncapital financing activities Transfers to other funds (260,000) 0 0 Net increase (decrease) in cash and cash equivalents (613,557) 593,772 18,996 Cash and cash equivalents, January 1 24,809,310 2,080,330 196,571 Cash and cash equivalents, December 31 $ 24,195,753 $ 2,674,102 $ 215,567 The accompanying notes are an integral part of this statement. 18 Statement 4 Total Component Total Primary Unit Reporting Government Salina Entity (Memorandum Airport (Memorandum Only) Authority Only) $ 45,091 $ 0 $ 45,091 19,017,319 1,269,240 20,286,559 171,400 0 171,400 44,784 29,393 74,177 19,278,594 1,298,633 20,577,227 4,136,808 0 4,136,808 8,953,322 0 8,953,322 685,819 0 685,819 0 936,136 936,136 2,811,889 825,528 3,637,417 16,587,838 1,761,664 18,349,502 2,690,756 (463,031) 2,227,725 1,581,293 233,802 1,815,095 (45,562) 0 (45,562) (2,138,855) (257,601) (2,396,456) 0 338,058 338,058 (10,559) 69,663 59,104 (613,683) 383,922 (229,761) 2,077,073 (79,109) 1,997,964 0 549,667 549,667 2,077,073 470,558 2,547,631 32,309,124 7,811,967 40,121,091 0 0 0 (260,000) 0 (260,000) $ 34,126,197 $ 8,282,525 $ 42,408,722 17 City of Salina, Kansas COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES, SIMILAR TRUST FUNDS AND DISCRETELY PRESENTED COMPONENT UNITS For the fiscal year ended December 31, 1997 Fiduciary Proprietary Fund Types Fund Type Non- Internal expendable Enterprise Service Trust Cash and investments $ 12,593,873 $ 2,674,102 $ 215,567 Restricted cash and investments 11,601,880 0 0 Total cash and cash equivalents $ 24,195,753 $ 2,674,102 $ 215,567 Reconciliation of operating income (loss) to net cash provided by operating activities Operating income (loss) $ 2,612,382 $ 71,146 $ 7,228 Adjustments to reconcile operating income (loss) to net cash provided by operating activities Depreciation expense (Increase) decrease in accounts receivable (Increase) decrease in deposits receivable (Increase) decrease in inventory (Increase) decrease in prepaid expenses Increase (decrease) in accounts payable Increase (decrease) in retainage payable Increase (decrease) in accrued compensated absences Increase (decrease) in meter deposits payable Increase (decrease) in claims payable Increase (decrease) in deferred income Increase (decrease) in landfill closure and postclosure Net cash provided by operating activities 2,655,415 156,474 (67,404) 0 0 (19,132) (51,117) 3,096 0 0 (5,277) 39,472 (28,615) 0 52,753 3,579 2,644 0 0 258,895 (14,367) 0 (181,458) 0 $ 4,974,956 $ 513,530 $ o o o o o o o o o o o o 7,228 NON-CASH TRANSACTIONS: Fixed assets in the amount of $9,350 were transfered from the General Fixed Assets Account Group to the Solid Waste Fund. This transaction resulted in an increase in Contributed Capital in the Solid Waste Fund by a corresponding amount. The accompanying notes are an integral part of this statement. 20 Statement 5 Total Component Total Primary Unit Reporting Government Salina Entity (Memorandum Airport (Memorandum Only) Authority Only) $ 18,195,422 $ 1,306,080 $ 19,501,502 895,038 0 895,038 (12,628,519) (923,600) (13,552,119) (1,056,102) 0 (1,056,102) 45,091 0 45,091 44,784 0 44,784 5,495,714 382,480 5,878,194 (2,983,148) (2,744,209) (5,727,357) 260,000 0 260,000 (695,000) 0 (695,000) (248,529) (810,000) (1,058,529) (1,015,000) (50,000) (1,065,000) (2,158,662) (214,101) (2,372,763) 0 338,058 338,058 0 170,184 170,184 0 618,793 618,793 0 129,541 129,541 0 2,830,000 2,830,000 0 1,640,967 1,640,967 (6,840,339) 1,909,233 (4,931,106) 1,603,836 93,123 1,696,959 (260,000) 0 (260,000) (789) 2,384,836 2,384,047 27,086,211 930,062 28,016,273 $ 27,085,422 $ 3,314,898 $ 30,400,320 19 cant. City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1997 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The City of Salina is a municipal corporation governed by five elected commissioners. As required by generally accepted accounting principles, these financial statements present the City and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the City's operations and so data from these units is combined with data of the primary government. The city has no blended component units to present for the year ended December 31, 1997. Each discretely presented component unit is reported in a separate column in the combined financial statements to emphasize it is legally separated from the government. Discretelv Presented Comoonent Units City of Salina Airport Authority - The Salina Airport Authority (Airport Authority) was created for the purpose of accepting as surplus property portions of the former Schilling A.F.B which was closed by the United States Department of Defense in June, 1965. One of the primary functions of the Airport Authority is to facilitate the continued growth of jobs and payroll at the Airport Industrial Center. The Airport Authority is managed and controlled by a five-member Board of Directors appointed by the Salina City Commission. The Airport Authority is reported as an enterprise fund. The Airport Authority has a December 31 fiscal year end. Housing Authority of the City of Salina - The purpose of the Housing Authority of the City of Salina (Housing Authority) is to administer Public Housing Programs authorized by the United States Housing Act of 1937. The governing board is appointed by the Mayor of the City of Salina. The financial liability of the Housing Authority is essentially supported by the operating and debt service subsidies received under contract from the Federal government. The Housing Authority is reported as a governmental fund type. The Housing Authority has a June 30 fiscal year end. Information in the accompanying financial statements covers the fiscal year ended June 30, 1997. Complete financial statements for each of the individual component units may be obtained at the entity's administrative offices. Salina Airport Authority 3237 Arnold Ave. Salina, KS Housing Authority of the City of Salina 469 S 5th Salina, KS Joint Ventures The City of Salina also participates with Saline County in two joint ventures. The Salina-Saline County Board of Health was organized by the City and County to promote public health. The Salina County-City Building Authority was organized by the City and County to acquire, operate and maintain facilities for the administrative offices of both governments. The primary governments each have an ongoing financial responsibility for the joint ventures. Separate financial statements are available from the governing boards of each joint venture. Total fund balance, December 31, 1997 Total revenues, year ended December 31, 1997 Total revenues from City of Salina $ Board of Health 714,072 $ 287,722 403,383 Building Authority 235,573 600,236 218,386 22 Statement 5 Pal!e 2 Total Component Total Primary Unit Reporting Government Salina Entity (Memorandum Airport (Memorandum Only) Authority Only) $ 15,483,542 $ 3,229,898 $ 18,713,440 11,601,880 85,000 11,686,880 $ 27,085,422 $ 3,314,898 $ 30,400,320 $ 2,690,756 $ (463,031) $ 2,227,725 2,811,889 825,528 3,637,417 (67,404) (1,486) (68,890) (19,132) 0 (19,132) (48,021) 0 (48,021) 0 2,813 2,813 34,195 (4,447) 29,748 (28,615) 0 (28,615) 56,332 14,170 70,502 2,644 0 2,644 258,895 0 258,895 (14,367) 8,933 (5,434) (181,458) 0 (181,458) $ 5,495,714 $ 382,480 $ 5,878,194 21 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1997 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-continued B. Measurement Focus, Basis of Accounting and Basis of Presentation - continued Proprietary funds are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. The government applies all applicable F ASB pronouncements in accounting and reporting for its proprietary operations. Proprietary funds include the following fund types: The enterprise funds are used to account for those operations that are financed and operated in a manner similar to private business or where the board has decided that the determination of revenues earned, costs incurred and/or net income is necessary for management accountability. The internal service funds account for operations that provide services to other departments or agencies of the government, or to other governments, on a cost-reimbursement basis. Fiduciary funds account for assets held by the City in a trustee capacity or as an agent on behalf of others. Trust funds account for assets held by the City under the terms of a formal trust agreement. The expendable trust funds are accounted for in essentially the same manner as the governmental fund types, using the same measurement focus and basis of accounting. Expendable trust funds account for assets where both the principal and interest may be spent. The nonexpendable trust funds are accounted for in essentially the same manner as the proprietary funds, using the same measurement focus and basis of accounting. Nonexpendable trust funds account for assets of which the principle may not be spent. The agency funds are custodial in nature and do not present results of operations or have a measurement focus. Agency funds are accounted for using the modified accrual basis of accounting. These funds are used to account for assets that the City holds for others in an agency capacity. Account Groups. The general fixed assets account group is used to account for fixed assets of the City. The general long-term debt account group is used to account for general long-term debt and certain other liabilities of the City. C. Assets, Liabilities and Equity 1. Pooled Cash and Investments The City maintains a cash and investment pool that is available for use by all funds managed by the city. Each fund type's portion of this pool is displayed on the combined balance sheet as "Cash and Investments". The city's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. Investments in the Kansas Municipal Pool are carried at cost. Cash balances from all funds are invested to the extent available in certificates of deposit and other authorized investments. Investments with maturity dates greater than three months are stated separately. Earnings from these investments, unless specifically designated, are allocated montWy to the investing fund based on the percentage of funds invested to total investments. All investments are stated at cost. 24 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1997 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued B. Measurement Focus, Basis of Accounting and Basis of Presentation The accounts of the City are organized and operated on the basis of funds and account groups. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds are maintained consistent with legal and managerial requirements. Account groups are a reporting device to account for certain assets and liabilities of the governmental funds not recorded directly in those funds. The city has the following fund types and account groups. Governmental Funds are used to account for the City's general government activities. Governmental fund types use the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting revenues are recognized when susceptible to accrual (Le., when they are "measurable and available"). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The City considers property taxes as available if they are collected within 60 days after year end. A one-year availability period is used for revenue recognition for all other governmental fund revenues. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt which is recognized when due, and certain compensated absences and claims and judgments which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Property taxes, franchise taxes, licenses, interest revenue, special assessments and charges for services are susceptible to accrual. Sales taxes collected and held by the State at year end on behalf of the City are also recognized as revenue. Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria are met. Expenditure-driven grants are recognized as revenue when the qualifYing expenditures have been incurred and all other grant requirements have been met. The City reports deferred revenue on its combined balance sheet. Deferred revenues arise when a potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period. Deferred revenues also arise when resources are received by the City before it has a legal claim to them, as when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met, or when the City has a legal claim to the resources, the liability for deferred revenue is removed from the combined balance sheet and revenue is recognized. Governmental funds include the following fund types: The general fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The special revenue funds account for revenue sources that are legally restricted to expenditure for specific purposes (not including expendable trusts or major capital projects). The debt service funds account for the servicing of the general long-term debt not being financed by proprietary or nonexpendab1e trust funds of the City. The capital projects funds account for the acquisition of fixed assets or the construction of major capital projects not being financed by the proprietary or nonexpendable trust funds of the City. 23 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1997 L SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued C. Assets, Liabilities and Equity -continued 5. Restricted Assets - continued The "Bond Escrow" account is used to report resources set aside in a "crossover refunding" transaction. Under the crossover arrangement certain bonds of the City were refunded, with the proceeds placed in the bond escrow account. The bond escrow account and the refunded bonds will remain on the City's books until a specified future date when the bonds will be considered defeased and the City will assume the repayment of the refunding bonds. 6. Fixed Assets Fixed assets used in governmental fund types of the City are recorded in the general fixed assets account group at cost or estimated historical cost if purchased or constructed. Donated fixed assets are recorded at their estimated fair value at the date of donation. Assets in the general fixed assets account group are not depreciated. Interest incurred during construction is not capitalized on general fixed assets. Public domain (infrastructure) general fixed assets (e.g., roads, bridges, sidewalks and other assets that are immovable and of value only to the government) are not capitalized. The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend assets' lives are not included in the general fixed assets account group. Property, plant and equipment in the proprietary funds of the government are recorded at cost. Property, plant and equipment donated to the proprietary fund type operations are recorded at their estimated fair value at the date of donation. Major outlays for capital assets and improvements are capitalized in proprietary funds as projects are constructed. Interest incurred during the construction phase of proprietary fund fixed assets is reflected in the capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same period. Property, plant and equipment are depreciated in the proprietary and similar trust funds of the government using the straight line method over the following estimated useful lives: Assets Buildings Other Equipment Vehicles Utility Plant & Equipment Years 20-50 5-10 7-10 10-70 26 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1997 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued C. Assets, Liabilities and Equity - continued 2. Receivables and Payables Transactions between funds that are representative of lendinglborrowing arrangements outstanding at the end of the fiscal year are referred to as either "interfund receivables/payables" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds". Accounts Receivable. The City records revenues when services are provided. All receivables are shown net of an allowance for uncollectibles. Property taxes receivable. The determination of assessed valuations and the collections of property taxes for all political subdivisions in the State of Kansas is the responsibility of the various counties. The office of the County Appraiser annually determines assessed valuations and the County Clerk spreads the annual assessment on the tax rolls. The County Treasurer is the tax collection agent for all taxing entities within the county. In accordance with state statutes, property taxes levied during the current year are a revenue source to be used to finance the budget of the ensuing year. One-half of the property taxes are due December 20, prior to the fiscal year for which they are budgeted, and the second half is due the following June 20. This procedure eliminates the need to issue tax anticipation notes since funds will be on hand prior to the beginning of each fiscal year. The City Treasurer draws down all available funds from the County Treasurer's office in two-month intervals. Collection of current year property tax by the County Treasurer is not completed, apportioned nor distributed to the various subdivisions until the succeeding year, such procedure being in conformity with governing state statutes. Consequently, current year property taxes receivable are not available as a resource that can be used to finance the current year operations of the City. Accruals of uncollected current year property taxes are offset by deferred revenue and are identical to the adopted budget for 1998. It is not practicable to apportion delinquent taxes held by the County Treasurer and, further, the amounts thereof are not material in relationship to the financial statements taken as a whole. 3. Inventories Inventories are valued at cost using the first-inlfirst-out (FIFO) method. The costs of governmental fund-type inventories are recorded as expenditures when purchased rather than when consumed. 4. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. 5. Restricted Assets Certain proceeds of enterprise fund revenue bonds and general obligation bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants. The "Water and Sewer Principal and Interest" account is used to segregate resources accumulated for debt service payments over the next twelve months. The "Debt Service Reserve" account is used to report resources set aside to make up potential future deficiencies in the "Water and Sewer Principal and Interest Account". 25 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1997 L SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued C. Assets, Liabilities and Equity - continued 10. Fund Equity Reservations of fund balance represent amounts that are not appropriable or are legally segregated for a specific purpose. Reservations of retained earnings are limited to outside third-party restrictions. Designations of fund balance represent tentative management plans that are subject to change. The proprietary fund's contributed capital represents equity acquired through capital grants and capital contributions from developers, customers or other funds. 11. Interfund Transactions Quasi-external transactions (Le., transactions that would be treated as revenues or expenses if they involved organizations external to the governmental unit, such as internal service fund billings to departments) are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund are expenditures/expenses in the reimbursing fund and reductions of expenditures/expenses in the fund that is reimbursed. All other interfund transactions, except quasi-external transactions and reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as operating transfers. 12. Memorandum Only - Total Columns Total columns on the general purpose financial statements are captioned as "memorandum only" because they do not represent consolidated financial information and are presented only to facilitate financial analysis. The columns do not present information that reflects financial position, results of operations or cash flows in accordance with generally accepted accounting principles. Interfund eliminations have not been made in the aggregation of this data. 13. Comparative DatalReclassifications Comparative total data for the prior year have been presented in selected sections of the accompanying financial statements in order to provide an understanding of the changes in the government's financial position and operations. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation. n. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Budgetary Information Kansas statutes require that an annual operating budget be legally adopted for the general fund, special revenue funds (unless specifically exempted by statute), debt service funds and enterprise funds. The statutes provide for the following sequence and timetable in the adoption of the legal annual operating budget. 28 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31,1997 L SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued C. Assets, Liabilities and Equity - continued 7. Compensated Absences It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All employees of the City, except temporary and part time employees, may accumulate sick leave at a rate of 8 or 11 hours per month depending on their work duty schedule. There is no limit on the amount of sick leave which can be accumulated. Employees with more than five years of service with the City are paid for one- third of their accumulated sick leave at their current wage scale upon termination of employment in good standing. All regular employees are entitled to paid vacation time. Such leave is granted each year of employment and unused leave may accumulate without limit. Employees are paid for all accumulated vacation leave at their current wage scale upon termination of employment. Vested or accumulated vacation leave that is expected to be liquidated with expendable available financial resources is reported as an expenditure and a fund liability of the governmental fund that will pay it. Amounts of vested or accumulated vacation leave that are not expected to be liquidated with expendable available financial resources are reported in the general long-term debt account group. No expenditure is reported for these amounts. Vested or accumulated vacation leave of proprietary funds is recorded as an expense and liability of those funds as the benefits accrue to employees. In accordance with the provisions of Statement No. 16 of the Governmental Accounting Standards Board, Accounting for Compensated Absences, a liability is recorded for accumulated rights to receive sick pay benefits that are payable upon termination of employment. 8. Temporary Notes Upon authorization for the issuance of general obligation bonds for certain improvements, Kansas law permits the temporary financing of such improvements by the issuance of temporary notes. Temporary notes issued may not exceed the aggregate amount of bonds authorized, are interest bearing and have a maturity date not later than four years from the date of issuance of such temporary notes. Temporary notes outstanding are retired from the proceeds of the sale of general obligation bonds. 9. Long -Term Obligations The government reports long-term debt of governmental funds at face value in the general long-term debt account group. Certain other governmental fund obligations not expected to be financed with current available financial resources are also reported in the general long-term debt account group. Long-term debt and other obligations financed by proprietary funds are reported as liabilities in the appropriate funds. For governmental fund types, bond premiums and discounts, as well as issuance costs, are recognized during the current period. Bond proceeds are reported as an other financing source net of the applicable premium or discount. Issuance costs, even if withheld from the actual net proceeds received, are reported as debt service expenditures. For proprietary fund types, bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Issuance costs are reported as deferred charges. 27 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1997 IL STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY - continued B. Proprietary Fund Type Budgets Actual operations (budgetary basis) compared to budget for proprietary fund types for fiscal year 1997 are as follows: Actual Budget Variance Enterprise Sanitation Revenues $ 1,256,262 $ 1,200,999 $ 55,263 Expenditures 1,364,977 1,760,899 395,922 Solid Waste Disposal Division Revenues 2,601,335 2,564,167 37,168 Expenditures 2,019,951 3,118,326 1,098,375 Other financing sources (uses) (45,000) 0 (45,000) Golf Course Division Revenues 782,162 650,868 131,294 Expenditures 722,373 763,710 41,337 Water and Sewer Revenues 11,701,897 11,046,900 654,997 Expenditures 8,030,721 13,471,729 5,441,008 Other financing sources (uses) (2,270,600) (2,476,736) 206,136 Internal Service Risk Management Revenues 189,233 140,298 48,935 Expenditures 344,007 673,852 329,845 Workmen's Compensation Reserve Revenues 498,849 450,078 48,771 Expenditures 149,375 273,277 123,902 Central Garage Division Revenues 767,716 802,998 (35,282) Expenditures 785,141 892,811 107,670 Information Services Revenues 664,262 631,613 32,649 Expenditures 639,984 740,610 100,626 Other financing sources 8,002 0 (8,002) C. Deficit Fund Equity The following funds had deficit fund equity at December 31, 1997: HUD Community Development $(34,173) and Police Grants $(43,801). These deficits will be recovered from reimbursements from grantor agencies, or in the event certain costs are disallowed, from general funds. 30 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1997 IL STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY - continued A. Budgetary Information - continued a) Preparation of the budget for the succeeding calendar year on or before August 1st of each year. b) Publication in a local newspaper of the proposed budget and the notice of public hearing on the budget on or before August 5th. c) Public hearing on or before August 15th of each year, but at least ten days after publication of the notice of hearing. d) Adoption of the final budget on or before August 25th. The statutes allow for the governing body to increase the originally adopted budget for previously unbudgeted increases in revenue other than ad valorem property taxes. To do this, a notice of public hearing to amend the budget must be published in the local newspaper. At least ten days after publication the hearing may be held and the governing body may amend the budget at that time. There were no such amendments for fiscal year 1997. The statutes permit transferring budgeted amounts between line items within an individual fund. However, such statutes prohibit expenditures in excess of the total amount of the adopted budget of expenditures of individual funds. Budget comparison statements are presented for each fund showing actual receipts and expenditures compared to legally budgeted receipts and expenditures. All legal annual operating budgets are prepared using the modified accrual basis of accounting, modified further by the encumbrance method of accounting. Revenues are recognized when cash is received. Expenditures include disbursements, accounts payable, and encumbrances. Encumbrances are commitments by the municipality for future payments and are supported by a document evidencing the commitment, such as a purchase order or contract. All unencumbered appropriations (legal budget expenditure authority) lapse at year end. A legal operating budget is not required for capital projects funds, trust funds, and the following special revenue funds: Bicentennial Center Event, HUD Community Development, Community Development Revolving, Heritage Commission, Fair Housing, Special Law Enforcement, Police Grants, Traffic Safety Grant, Housing Rehabilitation, Dare Donations. A legal operating budget is not required for the following Enterprise and Internal Service funds: Solid Waste Construction, Water and Sewer Principal and Interest, Water and Sewer Bond Reserve, Water and Sewer Construction and Reserve funds and Health Insurance funds. Actual to budget comparisons for these funds that present budgets to the Commissioners are shown strictly for informational purposes. Spending in funds which are not subject to the legal annual operating budget requirements are controlled by federal regulations, other statutes, or by the use of internal spending limits established by the governing body. Compliance with Kansas Statutes. References made herein to the statutes are not intended as interpretation of law, but are offered for consideration by the Director of Accounts and Reports and interpretation by the County Attorney and legal representatives of the City. Expenditures exceeded available budget authority in the Special Alcohol special revenue fund. (KSA 79- 2935) 29 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1997 m. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued A. Deposits and Investments - continued Investments - State statutes authorize the City to invest in US Treasury bills and notes, repurchase agreements, and the State Treasurer's investment pool. All investments must be insured, registered, or held by the City or its agent in the City's name. The City's investments are categorized to give an indication of the level of risk assumed by the entity at year end. Category I includes investments that are insured or registered, or for which the securities are held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the dealer bank's trust department or agent in the City's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the dealer's bank. At December 31, 1997, the City had invested $13,176 in the State Treasurer's municipal investment pool. State pooled monies may be invested in direct obligations of, or obligations that are insured as to principal and interest by the US government or any agency thereof, with maturities up to four years. No more than 10 percent of those funds may be invested in mortgage-backed securities. In addition, the State pool may invest in repurchase agreements with Kansas banks or with primary government securities dealers. The City's investment in the State Treasurer's municipal investment pool is not subject to categorization as to risk. The categories of the City's investments are as follows: Category 1 2 Carrying Fair 3 Amount Value o $ 25,738,865 $ 25,744,339 13,176 13,176 10,761,870 10,761,870 $ 36,513,911 $ 36,519,385 U.s. Treasury Bills Pooled investment - State of Kansas $ 25,738,865 $ o $ Bond escrow-investment in U.S. Treasury Bills Separate statutes regulate investment proceeds for most bond issues. Local units may invest bond proceeds in direct obligations of the United States Government and its agencies or make investments as authorized for other idle funds. Under existing Attorney General opinions maturity and interest rates are negotiable on such bonds. 32 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 3 1, 1997 II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY - continued D. Compliance With Bond Reserve Requirements Water & Sewer Bond Reserve Requirements The bond reserve contains a "net revenue" requirement of 125% of next year principal and interest payments. The Water & Sewer fund met this requirement for 1997. Actual Required Principal and interest account Bond reserve account $ 840,011 2,661,543 $ 617,739 2,661,543 The City was in compliance with the reserve account balance requirements at December 31, 1997. E. Legal Debt Margin The City is subject to the municipal [mance law of the state of Kansas which limits the net bonded debt (exclusive of revenue bonds and special assessment bonds) the city may have outstanding to 30 percent of the assessed value of all tangible taxable property within the city, as certified to the county clerk on the proceeding August 25. At December 31, 1997, the statutory limit for the City was $84,176,989 providing a debt margin of$66,734,748. III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS A. Deposits and Investments Deposits - At year end, the carrying amount of the City's deposits was $2,526,389 plus $6,338 cash on hand and the bank balance was $3,028,392. The difference between the carrying amount and the bank balance is outstanding checks and deposits in transit. Of the bank balance, $209,784 was covered by federal deposit insurance and the remaining $2,818,608 was collateralized by pledged securities held under joint custody receipts issued by a third- party bank in the City's name. The third-party bank holding the pledged securities is independent of the pledging bank. The pledged securities are held under a tri-party custodial agreement signed by all three parties: the City, the pledging bank, and the independent third-party bank holding the pledged securities. An unsecured and uncollateralized deposit of $104,790 was held by the Fiscal Agency Department of the Kansas State Treasurer. The carrying amount of deposits for the Housing Authority of the City of Salina, a discretely presented component unit, was $482,189 and the bank balance was $534,136. Of the bank balance, $534,136 was covered by federal depository insurance or by collateral held by the entity's agency in the Housing Authority's name. The carrying amount of deposits for the Salina Airport Authority, a discretely presented component unit, was $3,382,673 and the bank balance was $3,358,264. Of the bank balance, $3,358,264 was covered by federal depository insurance or by collateral held by the entity's agency in the Authority's name. 31 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1997 m. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued C. Interfund Receivables and Pay abies The composition of interfund balances as of December 31, 1997, is as follows: Due from/to other funds: Receivable Fund Payable Funds Amount Special Revenue Funds Community Development Revolving Special Revenue Funds HUD Community Development $ 34,348 D. Fixed Assets The following is a summary ofthe changes in the general fixed assets account group during the current year. Balance Balance January 1, December 31, 1997 Additions Deletions 1997 Primarv Government Land $ 2,589,193 $ 0 $ 0 $ 2,589,193 Land improvements 985,482 82,756 0 1,068,238 Buildings 10,788,238 0 0 10,788,238 Machinery and equipment 8,627,812 729,495 139,929 9,217,378 Sub total primary government 22,990,725 812,251 139,929 23,663,047 Comoonent units Salina Housing Authority 5,287,276 1,298,705 0 6,585,981 Total reporting entity $ 22,990,725 $ 2,110,956 $ 139,929 $ 30,249,028 34 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31,1997 m. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued A. Deposits and Investments - continued The cash and investments by fund type at December 31, 1997 are as follows: Cash and Separate Investments Deposits Total Restricted Unrestricted Primary Government General $ 5,188,535 $ 0 $ 5,188,535 $ 0 $ 5,188,535 Special Revenue 2,563,663 0 2,563,663 0 2,563,663 Debt Service 867,759 0 867,759 0 867,759 Capital Projects 2,826,977 0 2,826,977 0 2,826,977 Enterprise 13,433,884 10,761,869 24,195,753 11,601,880 12,593,873 Internal Service 2,674,102 0 2,674,102 0 2,674,102 Trust & Agency 691,248 38,529 729,777 0 729,777 Subtotal primary government 28,246,168 10,800,398 39,046,566 11,601,880 27,444,686 Component Units Salina Airport Authority 3,314,898 0 3,314,898 0 3,314,898 Salina Housing Authority 596,671 0 596,671 596,671 Subtotal component units 3,911,569 0 3,911,569 0 3,911,569 Total reporting entity $ 32,157,737 $ 10,800,398 $ 42,958,135 $ 11,601,880 $ 31,356,255 B. Receivables Receivables as of year end, including the applicable allowances for uncollectible accounts, are as follows: Special Debt Internal Trust and General Revenue Service Enterprise Service Agency Total Primary Government Receivables: Accounts $ 621,535 $ 28,791 $ 0 $ 840,304 $ 19,132 $ 48,288 $ 1,558,050 Taxes 2,598,707 3,556,341 1,138,685 0 0 0 7,293,733 Interest 242,035 0 0 38,443 0 85 280,563 Notes 0 175 0 0 0 0 175 Gross receivables 3,462,277 3,585,307 1,138,685 878,747 19,132 48,373 9,132,521 Less: allowance for uncollecti bles (261,426) (1,908) 0 (62,415) 0 0 (325,749) Total $ 3,200,851 $ 3,583,399 $ 1,138,685 $ 816,332 $ 19,132 $ 48,373 8,806,772 Component Units Salina Airport Authority 5,911 Salina Housing Authority 83,970 Total 89,881 $ 8,896,653 33 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31,1997 m. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued F. General Long-Term Debt Following is a summary of changes in long-term debt for fiscal year 1997: Balance Balance January 1, December 31, 1997 Additions Reductions 1997 Primary Government General obligations bonds $ 10,982,000 $ 1,650,000 $ 2,142,000 $ 10,490,000 Revenue bonds 34,890,000 0 1,015,000 33,875,000 Temporary notes 7,795,000 8,770,000 7,095,000 9,470,000 Capital financing leases 126,426 0 126,426 0 Accrued Compensation 1,999,550 173,919 0 2,173,469 $ 55,792,976 $ 10,593,919 $ 10,378,426 $ 56,008,469 Component Units General obligations bonds $ 2,705,000 $ 0 $ 810,000 $ 1,895,000 Temporary notes 0 2,830,000 0 2,830,000 Revenue bonds 655,000 0 50,000 605,000 Mortgage Payable 1,670,219 0 988,823 681,396 $ 5,030,219 $ 2,830,000 $ 1,848,823 $ 6,011,396 The following is a detailed listing of the city's long-term debt including general obligation bonds, revenue bonds, temporary notes and capital leases: Original Interest Bonds Issue Rates Outstanding Primary Government General Obligation Internal Improvements 1988, due 12/1/98 $ 1,115,000 6.15% to 8.15% $ 90,000 Internal Improvements 1989, due 12/1/99 1,175,000 5.80% to 7.875% 230,000 Broadway Overpass 1990, due 12/1/2000 455,000 5.75% to 7.75% 135,000 Internal Improvements 1991, due 10/1/2001 1,300,000 5.20% to 7.25% 520,000 Street and Utilities 1991, due 10/1/2001 1,417,000 5.40% to 7.40% 560,000 Crawford Street 1991, due 10/1/2001 1,785,000 4.50% to 6.50% 705,000 Crawford Street 1992, due 10/1/2002 1,240,000 3.75% to 5.90% 625,000 Internal Improvements 1993, due 10/1/2003 685,000 3.50% to 5.50% 420,000 Internal Improvemetns 1993, due 10/1/2003 1,800,000 3.40% to 5.00% 1,130,000 Internal Improvemetns 1994, due 10/1/2004 1,175,000 4.70% to 6.50% 815,000 Internal Improvements 1995, due 10/1/2005 2,434,000 4.75% to 6.50% 1,945,000 Internal Improvements 1996, due 8/01/2006 1,847,000 4.65% to 5.00% 1,665,000 Internal Improvements 1997, due 8/01/2007 1,650,000 4.50% to 5.25% 1,650,000 Total general obligation bonds $ 10,490,000 36 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31,1997 m. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued D. Fixed Assets - continued The following is a summary of proprietary fund-type fixed assets at December 31, 1997: Component Primary Government Unit Internal Salina Enterprise Service Airport Funds Funds Authority Land $ 514,050 $ 0 $ 2,903,932 Land improvements 4,886,159 0 0 Water plant and equipment 31,895,409 0 0 Sewer plant and equipment 36,774,426 0 0 Airfield and infrastructure 0 0 16,122,516 Equipment 2,119,555 1,082,542 1,075,725 Vehicles 1,354,189 15,911 0 Buildings 575,612 22,072 6,771,387 Construction in progress 3,381,616 0 0 81,501,016 1,120,525 26,873,560 Less accumulated depreciation 29,150,592 715,654 7,971,636 Net fixed assets $ 52,350,424 $ 404,871 $ 18,901,924 Interest costs are capitalized when incurred by proprietary funds and similar component units on debt where proceeds were used to finance the construction of assets. Interest earned on proceeds of tax-exempt borrowing arrangements restricted to the acquisition of qualifying assets is offset against interest costs in determining the amount to be capitalized. E. Capital Leases The City has entered into a lease agreement as lessee for financing the acquisition of an IBM AS/400 computer system with the lease expiring in 1997. This lease agreement qualifies as a capital lease for accounting purposes (title transfers at the end of the lease term) and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of its inception. This lease was paid off in the year ended December 31, 1997. The following is an analysis of equipment leased under capital leases during the year ended December 31, 1997: General Fixed Assets Machinery and equipment $ 389,355 Payments made during 1997 $ 130,479 35 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1997 IlL DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued F. General Long-Term Debt - continued Interest paid in 1997 is as follows: Primary government General obligation bonds Revenue bonds Temporary notes Capital leases Component Unit Salina Airport Authority Housing Authority of Salina $ 579,347 1,461,741 349,791 4,053 210,830 46,510 Annual debt service requirements to maturity for general obligation oonds to be paid with tax levies - General Obligation - Primary Government Bonds Interest Year Outstanding Due Total 1998 $ 1,800,000 $ 555,786 $ 2,355,786 1999 1,705,000 435,746 2,140,746 2000 1,585,000 348,256 1,933,256 2001 1,540,000 266,676 1,806,676 2002 1,090,000 188,699 1,278,699 To maturity 2,770,000 315,721 3,085,721 $ 10,490,000 $ 2,110,884 $ 12,600,884 General Obligation-Component Units Bonds Interest Year Outstanding Due Total 1998 $ 165,000 $ 117,640 $ 282,640 1999 180,000 108,668 288,668 2000 190,000 98,803 288,803 2001 195,000 88,078 283,078 To maturity 1,165,000 305,915 1,470,915 $ 1,895,000 $ 719,104 $ 2,614,104 38 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1997 m. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued F. General Long-Term Debt - continued Original Interest Bonds Issue Rates Outstanding Revenue Bonds Revenue Refunding 1990, due 10/1/2005 $ 5,655,000 6.00% to 7.00% $ 3,565,000 Water and Sewer 1990, due 10/1/2008 2,210,000 7.00% to 7.10% 2,210,000 Water and Sewer 1992, due 10/1/2012 15,000,000 5.40% to 7.40% 12,770,000 Water and Sewer 1993, due 10/1/2013 3,200,000 4.50% to 5.25% 2,800,000 Revenue Refunding 1994, due 9/1/2012 11,390,000 4.30% to 5.25% 11,390,000 Water and Sewer 1994, due 10/1/2014 1,230,000 5.10% to 7.10% 1,140,000 Total revenue bonds $ 33,875,000 Temporary Notes Landfill, due 9/1/98 1,900,000 4.23855% $ 700,000 Magnolia Rd, due 3/1/98 4,370,000 3.900% 4,370,000 Library Project, due 6/1/2000 310,000 4.00% to 4.40% 310,000 Street and Subdivision, due 3/1/99 4,090,000 4.100% 4,090,000 Total temporary notes $ 9,470,000 Component Unit Salina Airport Authority General Obligation Bonds Economic Development 1990, due 2010 1,900,000 6.40% to 8.375 $ 860,000 Economic Development 1990, due 2010 773,000 6.5% to 8.5% 610,000 General Obligation 1993, due 2003 375,000 3.4% to 5.0% 245,000 General Obligation 1993, due 2003 275,000 3.85% to 4.75% 180,000 Total general obligation bonds 1,895,000 Revenue Bonds Leasehold revenue 1991, due 2006 850,000 5.0% to 7.25% 605,000 Temporary Notes General Obligation 1997, due 2000 2,830,000 4.20% 2,830,000 Total bonds $ 5,330,000 Housing Authority of the City of Salina Mortgage Payable to Federal Financing Bank 925,473 6.60% $ 681,396 37 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1997 Ill. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued F. General Long-Term Debt - continued Temporary Notes - Component Units Notes Interest Year Outstanding Due Total 2000 $ 2,830,000 $ 356,580 $ 3,186,580 Annual debt service requirements to maturity for mortgage to be paid from Housing Authority revenues- Mortgage - Component Unit Mortgage Interest Year Outstanding Due Total 1998 $ 22,916 $ 44,972 $ 67,888 1999 24,428 43,460 67,888 2000 26,041 41,847 67,888 2001 27,649 40,239 67,888 To maturity 580,362 302,184 882,546 $ 681,396 $ 472,702 $ 1,154,098 Temporary notes. All temporary notes other than the Magnolia Road notes were issued with maturities in excess of one year, and therefore are reported in the general long-term debt account group. The Magnolia Road temporary notes were retired and replaced with long-term general obligation bonds on February 9, 1998 (see Note IV -6), and therefore are also reported in the general long-term debt account group. Defeased bonds. In prior years, the City had defeased certain outstanding debt obligations by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust accounts and the defeased bonds are not included in the City's financial statements. At December 31, 1997, the following outstanding bonds are considered defeased: 1990- A Refunding Issue $ 2,185,000 Special assessments. As provided by Kansas statutes, projects financed in part by special assessments are financed through general obligation bonds of the City and are retired from the debt service fund. Special assessments paid prior to the issuance of bonds are recorded as revenue in the appropriate project. Special assessments received after the issuance of bonds are recorded as revenue in the debt service fund. The special assessments receivable are not recorded as revenue when levied against the respective property owners as such amounts are not available to finance current year operations. The special assessment debt is a contingent liability of the City to the extent of property owner defaults, which have historically been immaterial. Conduit debt. The City has entered into several conduit debt arrangements wherein the City issues industrial revenue bonds to finance a portion of the construction of facilities by private enterprises. In return, the private enterprises have executed mortgage notes or leases with the City. The City is not responsible for payment of the original bonds, but rather the debt is secured only by the cash payments agreed to be paid by the private enterprises under the terms of the mortgage or lease agreements. Generally, the conduit debt is arranged so that payments required by the private enterprises are equal to the mortgage payment schedule related to the original debt. At December 31, 1997, total outstanding conduit debt was $33,568,729. 40 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31,1997 IlL DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued F. General Long-Term Debt - continued Annual debt service requirements to maturity for revenue bonds to be paid with utility revenues- Revenue Bonds - Primary Government Bonds Interest Year Outstanding Due Total 1998 $ 1,085,000 $ 1,955,723 $ 3,040,723 1999 1,150,000 1,879,668 3,029,668 2000 1,220,000 1,803,858 3,023,858 2001 1,990,000 1,731,533 3,721,533 2002 2,115,000 1,625,898 3,740,898 To maturity 26,315,000 8,679,173 34,994,173 $ 33,875,000 $ 17,675,853 $ 51,550,853 Annual debt service requirements to maturity for revenue bonds to be paid with service revenues- Revenue Bonds- Component Units Bonds Interest Year Outstanding Due Total 1998 $ 50,000 $ 41,703 $ 91,703 1999 55,000 38,552 93,552 2000 60,000 35,005 95,005 2001 60,000 31,045 91,045 To maturity 380,000 85,925 465,925 $ 605,000 $ 232,230 $ 837,230 Annual debt service requirements to maturity for temporary notes - to be paid through the issuance of general obligation bonds - Temporary Notes - Primary Government Notes Interest Year Outstanding Due Total 1998 $ 5,180,000 $ 216,531 $ 5,396,531 1999 4,190,000 216,113 4,406,113 2000 100,000 2,200 102,200 $ 9,470,000 $ 434,844 $ 9,904,844 39 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1997 IV. OTHER INFORMATION A. Defined Benefit Pension Plan Plan description - The City participates in the Kansas Public Employees Retirement System (KPERS) and the Kansas Police and Firemen's Retirement System (KP&F). Both are cost-sharing multiple-emp10yer defined benefit pension plans as provided by Kansas statutes (KSA 74-4901 et seq). KPERS and KP&F provide retirement benefits, life insurance, disability income benefits and death benefits. Kansas law establishes and amends benefit provisions. KPERS and KP&F issue a publicly available financial report that includes financial statements and required supplementary information. Those reports may be obtained by writing to KPERS (400 SE 8th Avenue, Suite 200, Topeka, Kansas 66603-3925) or by calling 1-800-228-0366. Funding policy - KSA 74-4919 establishes the KPERS member-employee contribution rate at 4% of covered salary. KSA 74-4975 establishes the KP&F member-employee contribution rate at 7% of covered salary. The employer collects and remits member-employee contributions according to the provisions of section 414(h) of the Internal Revenue Code. State law provides that the employer contribution rates be determined annually based on the results of an annual actuarial valuation. KPERS and KP&F are funded on an actuarial reserve basis. State law sets a limitation on annual increases in the employer contribution rates. The KPERS employer rate established for calendar year 1997 is 2.63%. The City employer contributions to KPERS for the years ending December 31,1997, 1996 and 1995 were $194,190, $176,658, and $150,456, respectively, equal to the required contributions for each year. The KP&F employer rate established for 1997 is 14.4%. Employers participating in KP&F also make contributions to amortize the liability for past service costs, if any, which are determined separately for each participating employer. The City's contributions to KP&F for the years ended December 31, 1997, 1996 and 1995 were $808,561, $716,750, and $652,708, respectively, equal to the required contributions for each year. B. Deferred Compensation Plan The City offers its employees a deferred compensation plan ("Plan") created in accordance with Internal Revenue Code Section 457. The Plan, available to all City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. Plan assets are transfered to a plan agent in a custodial trust and are not available to the claims of the City's general creditors. C. Vacation and Sick Pay The City's policies regarding vacation and sick pay permit employees to accumulate a maximum of eighty to one hundred sixty hours of vacation time depending on years of service. Unused vacation time may be carried over to subsequent years. Current year accumulated vacation pay is payable upon employment termination. Sick leave may be accumulated without limitation. At December 31, 1997 accrued compensated absences totaled $2,173,469. D. Flexible Benefit Plan (LR.c. Section 125) The City Commission has adopted by resolution a salary-reduction flexible benefit plan ("Plan") under Section 125 of the Internal Revenue Code. All City employees working more than 20 hours per week are eligible to participate in the Plan beginning after two full months of employment. Each participant may elect to reduce his or her salary to purchase benefits offered through the Plan. Benefits offered through the Plan include various insurance and disability benefits. 42 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31,1997 m. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - continued G. Reconciliation of Transfers Transfers are made between funds as the need arises. A reconciliation between funds follows: Transfers from Transfers to Special General Revenue Total General $ 0 $ 329,866 $ 329,866 Special Revenue Funds Business Improvement District 17,000 0 17,000 Tourism and Convention 0 222,086 222,086 Drug Task Force 0 9,615 9,615 $ 17,000 $ 561,567 $ 578,567 Residual equity transfers were made at year end to close projects in the following fund. Transfers from Transfers to Capital General Projects Debt Fund Funds Service Fund Total $ 0 $ 156,899 $ 0 $ 156,899 0 260,000 0 260,000 244,234 0 64,591 308,825 $ 244,234 $ 416,899 $ 64,591 $ 725,724 General Fund Enterprise Funds Capital Projects Funds H. Contributed Capital The changes in the City's contributed capital accounts for its proprietary and internal service funds were as follows: Contributing Source General Balance Fixed Balance January 1, Assets December 31, Internal Service Funds Central Garage $ 16,611 $ 0 $ 16,611 Information Services 508,435 0 508,435 Enterprise Funds Sanitation 5,187 0 5,187 Solid Waste 77,090 9,350 86,440 Municipal Golf Course 1,700 0 1,700 Water & Sewer 8,385,683 0 8,385,683 $ 8,994,706 $ 9,350 $ 9,004,056 41 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1997 IV. OTHER INFORMA nON - continued F. Capital Projects Capital projects often extend over two or more fiscal years. The following is a schedule which compares the project authorization including allowable interest revenue to total project expenditures from project inception to December 31, 1997: Project Name Project Total Project Authorization Expenditures $ 5,939,000 $ 5,443,635 1,585,205 1,493,072 1,153,540 1,153,540 880,190 877 ,563 816,666 542,186 257,065 138,250 297,219 122,181 800,000 24,412 150,000 1,031 MagnoliaJI-35 Interchange Subdivision 1995 Ninth and Broadway Subdivision 1996 Subdivision 1997 Cart paths Schilling Drainage North Ohio Magnolia - Rockhurst to Belmont G. Subsequent Events On February 9, 1998, the city issued $3,900,000 in General Obligation bonds at a rate of 4.444903%. The proceeds are to be used as financing for a portion of the MagnoliaJI-135 Interchange project and certain subdivision projects. H. Contingent Liabilities The City receives significant financial assistance from numerous federal and state governmental agencies in the form of grants and state pass-through aid. The disbursement of funds received under these programs generally requires compliance with terms and conditions specified in the grant agreements and is subject to audit. Any disallowed claims resulting from such audits could become a liability of the General Fund or other applicable funds. However, in the opinion of management, any such disallowed claims would not have a material effect on any of the financial statements of the City at December 31, 1997. The city is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, it is the opinion of the City's legal counsel that resolution of these matters will not have a material adverse effect on the financial condition of the city 44 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1997 IV. OTHER INFORMATION - continued E. Risk Management The city is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the city carries commercial insurance. Settlements of claims did not exceed coverage for the years ended December 31,1997, 1996 or 1995. The city established a limited risk management program for workers' compensation in 1991. The program covers all city employees. Premiums are paid into the workers' compensation reserve fund by all other funds and are available to pay claims, claim reserves and administrative costs of the program. An excess coverage insurance policy covers individual claims in excess of $250,000 ($350,000 for claims involving employees classified as policemen or firemen). Incurred claims, including incurred but not reported claims, have been accrued based primarily upon subsequent payments. Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and amounts of payouts and other economic and social factors. The liability for claims and judgments is reported in the Workers' Compensation Reserve Fund because it is expected to be liquidated with expendable available financial resources. Changes in the balances of claims liabilities during the past two years are as follows: 1997 1996 Unpaid claims, January I $ 128,986 $ 206,434 Incurred claims (including IBNRs) 90,023 15,197 Claim payments (176,128) (92,645) Unpaid claims, December 31 $ 42,881 $ 128,986 The city established a limited risk management program for employee health and dental insurance in 1997. The program covers eligible city employees. Premiums are paid into the health insurance fund by all other funds and are available to pay claims, claim reserves and administrative costs of the program. An excess coverage insurance policy covers individual claims in excess of $50,000. Incurred claims, including incurred but not reported claims, have been accrued based primarily upon subsequent payments. Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and amounts of payouts and other economic and social factors. The liability for claims and judgments is reported in the Health Insurance Fund because it is expected to be liquidated with expendable available financial resources. Changes in the balances of claims liabilities during the plans's first year are as follows: 1997 Unpaid claims, January I $ 0 Incurred claims (including IBNRs) 1,861,611 Claim payments (1,516,611) Unpaid claims, December 31 $ 345,000 43 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1997 IV. OTHER INFORMATION - continued K. Environmental Matter The Kansas Department of Health and Environment (KDHE) issued a report in 1994 indicating the presence of volatile organic compounds at levels requiring remediation at the Salina Public Water Supply Wells Site (the Site). The City adopted a pro-active Policy and Action Plan to remediate the groundwater contamination, and on December 7, 1994, the City and KDHE entered into a Consent Order and Settlement Agreement under which the City assumed primary responsibility for the further investigation and remediation of the groundwater contamination. Field testing work has been completed. The necessary remediation work will be conducted over the next several years at a yet undetermined cost to the City's water utility fund. L. Restatement of Retained Earnings Retained earnings in the Solid Waste enterprise fund have been restated to reflect the correction of a prior period error in computing the liability associated with closure and post-closure care costs at the City's landfill. The effect of the restatement was to decrease beginning retained earnings by $696,531. 46 City of Salina, Kansas NOTES TO FINANCIAL STATEMENTS December 31, 1997 IV. OTHER INFORMATION - continued L Municipal Solid Waste Landfill State and federal laws and regulations require the City to place a final cover on its landfill site when it stops accepting waste, and to perform certain maintenance and monitoring functions at the site for thirty years after closure. Although closure and postclosure care costs will be paid only near or after the date that the landfill stops accepting waste, the City reports a portion of these closure and postclosure care costs as an operating expense of the solid waste fund in each period based on landfill capacity used as of each balance sheet date. The $976,002 reported as landfill closure and postclosure care liability at December 31 represents the cumulative amount reported to date based on the use of 26% of the estimated capacity of the landfill, plus a remaining $575,057 estimated closure costs for the pre-subtitle D cell, which stopped accepting waste in 1994. The City's solid waste fund will recognize the remaining estimated cost of closure and postclosure care of $2,993,312 as the remaining estimated capacity is filled over the remaining life expectancy of 53 years. These amounts are based on what it would cost to perform all closure and postclosure care in 1997. Actual cost may be higher due to inflation, changes in technology, or changes in regulations. The City is required by State and Federal laws and regulations to provide assurances of financial responsibility for closure and post-closure care. The City has elected to utilize the Local Government Financial test promulgated by the US Environmental Protection Agency (at 40 CFR 258.74(f)) and the Kansas Department of Health and Environment to provide these assurances. Any future closure or post-closure care costs will be provided through the normal budgeting and rate setting process, including the issuance of general obligation bonds, if necessary. J. Segment Information - Enterprise Funds The City maintains four enterprise funds which are intended to be self-supporting through user fees charged for services to the public. Financial segment information as of and for the year ended December 31, 1997 is presented below. Solid Golf Water Waste Course and Sanitation Disposal Division Sewer Total Operating revenues $ 1,230,310 $ 2,452,057 $ 782,162 $ 10,442,409 $ 14,906,938 Depreciation expense 53,208 365,960 48,358 2,187,889 2,655,415 Net operating income (loss) (141,393) 1,165,811 47,985 1,539,979 2,612,382 Net income (loss) (107,907) 1,103,660 28,533 817,181 1,841,467 Residual equity transfers out 0 0 (260,000) 0 (260,000) Property, plant and equipment additions 57,525 8,258 36,202 2,816,026 2,918,011 Net working capital 479,245 470,959 83,204 21,088,419 22,121,827 Total assets 844,328 6,701,516 437,672 70,318,668 78,302,184 Bonds and temporary notes payable 0 2,285,458 299,856 33,875,000 36,460,314 Total equity 740,252 3,285,739 95,934 35,459,377 39,581,302 45 City of Salina, Kansas Schedule 1 GENERAL FUND COMPARATIVE BALANCE SHEETS December 31, 1997 and 1996 ASSETS 1997 1996 Cash and investments $ 5,188,535 $ 5,325,053 Receivables Accounts 360,109 289,260 Taxes 2,598,707 2,290,803 Interest 242,035 201,224 Inventory 93,676 57,882 Interfund receivable 0 464,752 Total assets $ 8,483,062 $ 8,628,974 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ 333,961 $ 167,251 Retainage payable 48,703 4,948 Deferred revenue 1,887,093 1,478,168 Total liabilities 2,269,757 1,650,367 Fund balances Reserved for encumbrances 1,345,631 1,110,349 Reserved for inventory 93,676 57,882 Unreserved Undesignated 4,773,998 5,810,376 Total fund balances 6,213,305 6,978,607 Total liabilities and fund balances $ 8,483,062 $ 8,628,974 48 City of Salina, Kansas GENERAL FUND The general fund is used to account for resources traditionally associated with government which are not required legally or by sound financial management to be accounted for in another fund. 47 City of Salina, Kansas Schedule 3 GENERAL FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET For the fiscal years ended December 31, 1997 and 1996 1997 1996 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues Taxes Property $ 1,470,370 $ 1,432,214 $ 38,156 $ 1,234,203 $ 1,211,689 $ 22.514 Delinquent 27,372 24,000 3,372 13,995 6,000 7,995 Motor vehicle 247,950 242,892 5,058 67,159 54,930 12,229 Sales 8,658,933 9,407,500 (748,567) 8,250,536 8,450,000 (199,464) Franchise 1,929,622 1,747,500 182,122 1,836,694 1,747,500 89,194 Total taxes 12,334,247 12,854,106 (519,859) 11,402,587 11,470,119 (67,532) Intergovernmental Bingo 19,366 24,148 (4,782) 24,149 15,000 9,149 City - County revenue share 333,417 324,686 8,731 324,686 327,771 (3,085) LAVfR 373,458 373,458 0 355,675 355,675 0 Liquor tax 87,916 82,957 4,959 84,862 87,333 (2,471) Federal grants 441 0 441 35,114 17,500 17,614 State grants 31,603 0 31,603 0 0 0 EMS - County 614,186 415,000 199,186 415,788 415,000 788 Total intergovermnental 1,460,387 1,220,249 240,138 1,240,274 1,218,279 21,995 Fees Recreation 243,972 237,000 6,972 229,691 245,000 (15,309) Activity fund 117,031 126,000 (8,969) 116,633 120,000 (3,367) Emergency medical services 452,528 421,400 31,128 376,227 380,000 (3,773) Fire protection outside city 84,425 110,000 (25,575) 148,453 145,000 3,453 Other 218,938 207,700 11,238 227,347 216,000 11,347 Total fees 1,116,894 1,102,100 14,794 1,098,351 1,106,000 (7.649) Fines 976,398 900,000 76,398 969,759 990,000 (20,241 ) Pennits and inspection 297,737 313,575 (15,838) 329,106 270,000 59,106 Charges for services 588,502 543,202 45.300 457,257 453,198 4,059 Use of money and property 381,378 700,000 (318,622) 914,105 680,000 234,105 Reimbursements 80,051 51,000 29,051 75,325 57,147 18,178 Miscellaneous 104,179 150,000 (45,821) 50,829 48,500 2,329 Total revenues 17,339,773 17,834,232 (494,459) 16,537,593 16,293,243 244,350 50 City of Salina, Kansas Schedule 2 GENERAL FUND COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For the fiscal years ended December 31, 1997 and 1996 1997 1996 Revenues Taxes $ 12,409,756 $ 11,598,859 Intergovernmental 1,460,386 1,240,274 Charges for services 1,726,096 1,607,531 Fines 976,398 969,759 Use of money and property 422,189 818,087 Reimbursements 80,051 70,645 Miscellaneous 401,916 379,935 Total revenues 17,476,792 16,685,090 Expenditures Current General government 2,076,732 1,662,081 Public safety 8,003,070 7,104,335 Public works 1,574,508 1,621,302 Parks and recreation 1,947,685 1,872,887 Cultural 522,763 469,901 Community development 146,825 260,722 Health and welfare 403,383 389,742 Other 176,364 29,561 Capital outlay 3,194,666 2,979,600 Total expenditures 18,045,996 16,390,131 Excess of revenues over expenditures (569,204) 294,959 Other financing sources (uses) Operating transfers in 17,000 17,000 Operating transfers out (329,866) (160,460) Sale of assets 29,433 56,384 Total other financing sources (uses) (283,433) (87,076) Excess (deficiency) of revenues and other sources over (under) expenditures and other uses (852,637) 207,883 Fund balances, January 1 6,978,607 6,781,888 Residual equity transfer in 244,234 0 Residual equity transfer out (156,899) (11,164) Fund balances, December 31 $ 6,213,305 $ 6,978,607 49 City of Salina, Kansas Schedule 3 Pal!e 3 GENERAL FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET For the fiscal years ended December 31, 1997 and 1996 1997 1996 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Other financing sources (uses) Operating transfer in $ 17,000 $ 17,000 $ 0 $ 17,000 $ 17,000 $ 0 Operating transfer out (329,866) (100,000) (229,866) (160,460) (100,000) (60,460) Sale of assets 29,433 15,000 14,433 56,384 0 56,384 Total other fInancing sources (uses) (283,433) (68,000) (215,433) (87,076) (83,000) (4,076) Excess (defIciency) of revenues and other sources over (under) expenditures and other uses Prior year cancelled encumbrances Residual equity transfer in Residual equity transfer out (1,435,816) (3,302,176) 1,866,360 279,398 (2,921,846) 3,201,244 4.512,205 3,302,176 1,210,029 4,243,971 2,921,846 1,322,125 345,219 0 345,219 0 0 0 244,234 0 244,234 0 0 0 ( 156,899) 0 ( 156,899) (11,164) 0 (11,164) 3,508,943 $ 0 $ 3,508,943 $ 4,512,205 $ 0 $ 4,512,205 Fund balances, January 1 Fund balances, December 31 $ 52 City of Salina, Kansas Schedule 3 Pal!e 2 GENERAL FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET For the fiscal years ended December 31, 1997 and 1996 1997 1996 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Expenditures General government City commission $ 86,412 $ 96,525 $ 10,113 $ 70,947 $ 94,890 $ 23,943 City manager 290,518 296,164 5,646 249,032 236,072 (12,960) Legal 60,912 96,200 35,288 90,088 93,500 3,412 Finance 347,201 334,805 (12,396) 339,036 326,434 ( 12,602) Personnel 165,507 153,965 (11,542) 139,258 106,225 (33,033) Buildings 364,224 333,918 (30,306) 268,778 301,140 32,362 Human relations 102,611 122,361 19,750 107,709 118,230 10,521 Permits and inspection 260,948 244,222 (16,726) 256,408 225,606 (30,802) Gypsum Hill Cemetery 96,546 97,090 544 89,969 92,862 2,893 Contingency 198,764 265,000 66,236 56,765 265,000 208,235 Housing rehabilitation 87,341 75,000 (12,341) 46,883 75,000 28,11 7 Public safety Police 3,410,044 3,431,143 21,099 3,061,886 3,174,849 112,963 Municipal court 735,729 711,519 (24,210) 680,937 728,671 47,734 Fire 3,730,360 3,408,349 (322,011) 3,420,505 3,436,475 15,970 Public works Engineering 246,857 242,50 I (4,356) 225,883 223,712 (2,171) Streets 910,312 1,024,951 11 4,639 936,235 955,779 19,544 Flood works 114,174 123,000 8,826 113,606 113,200 (406) Traffic control 163,038 163,735 697 154,699 166.850 12,151 Planning 174,149 176,777 2,628 167,731 161,758 (5,973) Recreation Parks and recreation 774,790 759,937 (14,853) 732,193 738,572 6,379 Swinuning pools 83,055 71,990 (11,065) 85,267 69,200 ( 16,067) Neighborhood centers 68,238 66,896 (1,342) 60,359 77,224 16,865 Recreation 1.021,602 1,006,365 (15,237) 995,069 956,317 (38,752) Cultural Arts and humanities 257,931 233.152 (24,779) 225,352 225,012 (340) Smoky Hill Museum 264,832 250,369 (14,463) 244,549 241,517 (3,032) Health and welfare Health 403,383 403,383 0 389,742 394,842 5,100 Commw1ity development Agency contracts 146,825 194,425 47,600 194,241 194,425 184 Capital outlay 3,749,489 2,415,187 (1,334,302) 2,738,431 2,150,000 (588,431 ) Other Administrative expenses 176.364 126,532 (49,832) 29,561 29,561 0 Cash reserve 0 4,142,947 4,142,947 0 3,159,166 3,159,166 Total expenditures 18,492,156 21,068,408 2,576,252 16,171,119 19,132,089 2,960,970 Excess (deficiency) of revenues over (under) expenditures (1,152,383) (3,234,176) 2,081,793 366,474 (2,838,846) 3,205,320 51 City of Salina, Kansas SPECIAL REVENUE FUNDS Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. Employee benefit fund - To account for the costs of various benefits provided to governmental employees. Flood and drainage improvement fund - To account for property tax revenues to be used for capital improvements to the Flood Control and Stormwater Drainage systems. Utility fund - To account for the electric, gas, water and telephone costs ofthe City's operations except for those utility costs which are directly chargeable to Enterprise and Internal Service funds. Special liability fund - To account for liability and worker's compensation insurance costs. Business improvement district fund - State law allows businesses within an area to voluntarily establish an improvement district. This fund is used to account for the assessments made on the district. All revenues are to be used within the Business Improvement District. Tourism and convention fund - To account for transient guest tax revenues, which are specifically restricted to promotion and tourism activities. Special parks and recreation fund - To account for liquor tax revenues which must be used for park maintenance and improvements. Special alcohol fund - To account for liquor tax revenues which must be used for programs which address prevention, education or intervention for drug and alcohol abuse. Special gas fund - To account for the City's share of motor fuel tax revenues which are legally restricted to the maintenance or improvement of streets within the City. Bicentennial Center fund - To account for the activities of the City's convention center. Bicentennial Center event fund - To account for the revenues and expenses associated with special events (concerts, shows, etc.) at the City's convention center. HUD community development fund - To account for grants received from the state to be used for housing or economic development purposes. Community development revolving fund - To account for funds which may be loaned for housing and economic development purposes, to later be repaid and reused on a revolving basis. Heritage commission fund - To account for revenues and expenses associated with heritage preservation activities. Housing rehabilitation - To account for grants received from the state to be used for housing rehabilitation. 53 This page left blank intentionally. City of Salina, Kansas SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 31, 1997 (With comparative totals for December 31, 1996) ASSETS Flood & Employee Drainage Benefits Improvements Utility $ 453,031 $ 0 $ 448,490 0 0 0 2,809,240 225,943 0 0 0 0 0 0 0 0 0 0 $ 3,262,271 $ 225,943 $ 448,490 Cash and investments Receivables Accounts Taxes Grants Notes Due from funds Total assets LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ 1,254 $ 0 $ 56,901 Retainage payable 0 0 0 Due to funds 0 0 0 Deferred revenue 2,809,240 225,943 0 Total liabilities 2,810,494 225,943 56,901 Fund balances Reserved for encumbrances 0 0 0 Unreserved Undesignated (deficit) 451,777 0 391,589 Total fund balances (deficit) 451,777 0 391,589 Total liabilities and fund balances $ 3,262,271 $ 225,943 $ 448,490 55 City of Salina, Kansas SPECIAL REVENUE FUNDS - CONTINUED Fair housing fund - To account for grants received from the federal government to be used to monitor and mediate fair housing complaints. Special law enforcement fund - To account for revenues received from the sale of forfeited assets acquired during drug enforcement activities. Expenses are limited to capital items to be used for further drug enforcement activities. Police grants fund - To account for revenues received from grants which are to be used for special police activities, including the D.A.R.E. program. Dare donations - To account for donations to the D.A.R.E. program. Traffic safety grant fund - To account for revenues received from grants to be used for traffic enforcement. 54 City of Salina, Kansas SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 31, 1997 (With comparative totals for the fiscal year ended December 31, 1996) Bicentennial HUD Bicentennial Center Community ASSETS Center Event Development Cash and investments $ 349,013 $ 193,104 $ 0 Receivables Accounts 21,261 0 0 Taxes 0 0 0 Grants 0 0 0 Notes 0 0 175 Due from funds 0 0 0 Total assets $ 370,274 $ 193,104 $ 175 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ 12,232 $ 0 $ 0 Retainage payable 0 0 0 Due to funds 0 0 34,348 Deferred revenue 0 0 0 Total liabilities 12,232 0 34,348 Fund balances Reserved for encumbrances 20,353 0 0 Unreserved Undesignated (deficit) 337,689 193,104 (34,173) Total fund balances (deficit) 358,042 193,104 (34,173) Total liabilities and fund balances $ 370,274 $ 193,104 $ 175 57 Schedule 4 Business Tourism Special Special Improvement and Parks and Special Special Liability District Convention Recreation Alcohol Gas $ 95,368 $ 5,054 $ 1,765 $ 80,032 $ 369 $ 671,078 0 5,622 0 0 0 0 0 0 173,842 0 0 347,316 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 95,368 $ 10,676 $ 175,607 $ 80,032 $ 369 $ 1,018,394 $ 0 $ 4,591 $ 0 $ 2,210 $ 0 $ 3,758 0 0 0 0 0 13,890 0 0 0 0 0 0 0 0 0 0 0 0 0 4,591 0 2,210 0 17,648 0 0 0 0 0 223,313 95,368 6,085 175,607 77 ,822 369 777,433 95,368 6,085 175,607 77,822 369 1,000,746 $ 95,368 $ 10,676 $ 175,607 $ 80,032 $ 369 $ 1,018,394 56 cont. City of Salina, Kansas Schedule 4 Pal!e 3 SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 31, 1997 (With comparative totals for December 31, 1996) Traffic Total DARE Safety ASSETS Donations Grant 1997 1996 Cash and investments $ 18,440 $ 7,673 $ 2,563,663 $ 3,536,259 Receivables Accounts 0 0 26,883 50,246 Taxes 0 0 3,556,341 2,300,208 Grants 0 0 0 17,796 Notes 0 0 175 323 Due from funds 0 0 34,348 0 Total assets $ 18,440 $ 7,673 $ 6,181,410 $ 5,904,832 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ 0 $ 0 $ 162,294 $ 124,950 Retainage payable 0 0 13,890 10,414 Due to funds 0 0 34,348 198,829 Deferred revenue 0 0 3,035,183 1,821,304 Total liabilities 0 0 3,245,715 2,155,497 Fund balances Reserved for encumbrances 0 0 243,666 215,408 Unreserved Undesignated (deficit) 18,440 7,673 2,692,029 3,533,927 Total fund balances (deficit) 18,440 7,673 2,935,695 3,749,335 Total liabilities and fund balances $ 18,440 $ 7,673 $ 6,181,410 $ 5,904,832 59 Schedule 4 Pal!e 2 Community Special Development Heritage Housing Fair Law Police Revolving Commission Rehabilitation Housing Enforcement Grants $ 60,174 $ 1,571 $ 51,126 $ 56,600 $ 33,235 $ 37,540 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 34,348 0 0 0 0 0 $ 94,522 $ 1,571 $ 51,126 $ 56,600 $ 33,235 $ 37,540 $ 0 $ 7 $ 0 $ 0 $ 0 $ 81,341 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 7 0 0 0 81,341 0 0 0 0 0 0 94,522 1,564 51,126 56,600 33,235 (43,801) 94,522 1,564 51,126 56,600 33,235 (43,801) $ 94,522 $ 1,571 $ 51,126 $ 56,600 $ 33,235 $ 37,540 58 cont. City of Salina, Kansas SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For the fiscal year ended December 31, 1997 (With comparative totals for the fiscal year ended December 31, 1996) Employee Special Benefits Utility Liability Revenues Taxes $ 1,765,228 $ 746,991 $ 85,945 Intergovernmental 185,000 0 0 Charges for services 17,352 0 0 Fines 0 0 0 Special assessments 0 0 0 Use of money and property 0 0 0 Reimbursements 3,822 0 0 Miscellaneous 0 0 0 Total revenues 1,971,402 746,991 85,945 Expenditures Current General government 3,115,226 0 86,603 Public safety 0 0 0 Public works 0 765,069 0 Community development 0 0 0 Health and welfare 0 0 0 Bicentennial Center 0 0 0 Capital outlay 0 0 0 Total expenditures 3,115,226 765,069 86,603 Excess (deficiency) of revenues over (under) expenditures (1,143,824) (18,078) (658) Other financing sources (uses) Operating transfers in 0 0 0 Operating transfers out 0 0 0 Total other financing sources (uses) 0 0 0 Excess (deficiency) of revenues and other sources over (under) expenditures and other uses (1,143,824) (18,078) (658) Fund balances (deficit), January 1 1,595,601 409,667 96,026 Fund balances (deficit), December 31 $ 451,777 $ 391,589 $ 95,368 60 This page left blank intentionally. City of Salina, Kansas SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For the fiscal year ended December 31, 1997 (With comparative totals for the fiscal year ended December 31, 1996) Bicentennial HUD Community Center Community Development Event Development Revolving Revenues Taxes $ 0 $ 0 $ 0 Intergovernmental 0 28,816 0 Charges for services 848,711 0 0 Fines 0 0 0 Special assessments 0 0 0 Interest 0 245 5,241 Reimbursements 0 5,256 2,414 Miscellaneous 0 0 0 Total revenues 848,711 34,317 7,655 Expenditures Current General government 0 0 0 Public safety 0 0 0 Public works 0 0 0 Community development 0 99,222 0 Health and welfare 0 0 0 Bicentennial Center 704,636 0 0 Capital outlay 0 0 0 Total expenditures 704,636 99,222 0 Excess (deficiency) of revenues over (under) expenditures 144,075 (64,905) 7,655 Other financing sources (uses) Operating transfers in 0 81,009 0 Operating transfers out 0 0 0 Total other financing sources (uses) 0 81,009 0 Excess (deficiency) of revenues and other sources over (under) expenditures and other uses 144,075 16,104 7,655 Fund balances (deficit), January 1 49,029 (50,277) 86,867 Fund balances (deficit), December 31 $ 193,104 $ (34,173) $ 94,522 62 Schedule 5 Business Tourism Special Improvement and Parks and Special Special Bicentennial District Convention Recreation Alcohol Gas Center $ 0 $ 630,509 $ 87,916 $ 87,916 $ 0 $ 0 0 0 0 0 1,370,292 0 0 0 0 0 0 601,326 890 0 0 0 0 0 78,537 0 0 0 0 0 158 1,765 5,573 369 38,044 21,354 0 0 0 0 0 0 0 0 8,000 0 0 0 79,585 632,274 101,489 88,285 1,408,336 622,680 63,342 370,629 0 0 0 0 0 0 0 0 0 0 0 0 0 0 218,007 0 0 0 0 0 0 0 0 0 0 87,916 0 0 0 0 0 0 0 977,134 0 0 122,697 0 1,113,627 56,513 63,342 370,629 122,697 87,916 1,331,634 1,033,647 16,243 261,645 (21,208) 369 76,702 (410,967) 0 0 0 0 0 322,086 (17,000) (222,086) 0 0 0 0 (17,000) (222,086) 0 0 0 322,086 (757) 39,559 (21,208) 369 76,702 (88,881) 136,048 924,044 446,923 6,842 99,030 o $ 6,085 $ 175,607 $ 77,822 $ 369 $ 1,000,746 $ 358,042 61 cont. City of Salina, Kansas Schedule 5 Pal!e 3 SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For the fiscal year ended December 31, 1997 (With comparative totals for the fiscal year ended December 31, 1996) Traffic Total Safety Grant 1997 1996 Revenues Taxes $ 0 $ 3,404,505 $ 4,497,215 Intergovernmental 0 1,737,050 2,102,614 Charges for services 0 1,470,943 1,553,240 Fines 0 890 474 Special assessments 0 78,537 59,920 Interest 407 81,337 4,969 Reimbursements 0 31,552 352,624 Miscellaneous 0 17,139 177,371 Total revenues 407 6,821,953 8,748,427 Expenditures Current General government 0 3,644,472 3,738,444 Public safety 0 120,692 388,632 Public works 0 983,076 1,009,723 Community development 0 99,222 212,523 Health and welfare 0 87,916 84,862 Bicentennial Center 0 1,681,770 1,768,489 Capital outlay 0 1,331,311 1,281,439 Total expenditures 0 7,948,459 8,484,112 Excess (deficiency) of revenues over (under) expenditures 407 (1,126,506) 264,315 Other financing sources (uses) Operating transfers in 0 561,567 399,089 Operating transfers out 0 (248,701) (255,629) Total other financing sources (uses) 0 312,866 143,460 Excess (deficiency) of revenues and other sources over (under) expenditures and other uses 407 (813,640) 407,775 Fund balances (deficit), January 1 7,266 3,749,335 3,341,560 Fund balances (deficit), December 31 $ 7,673 $ 2,935,695 $ 3,749,335 64 Schedule 5 Pal!e 2 Special Heritage Housing Fair Law Police DARE Commission Rehabilitation Housing Enforcement Grants Donations $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 0 0 0 0 152,942 0 0 0 0 0 3,554 0 0 0 0 0 0 0 0 0 0 0 0 0 238 1,362 2,551 1,898 1,996 136 0 0 20,060 0 0 0 0 0 450 0 0 8,689 238 1,362 23,061 1,898 158,492 8,825 167 236 8,269 0 0 0 0 0 0 0 120,692 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5,330 33,144 0 167 236 8,269 5,330 153,836 0 71 1,126 14,792 (3,432) 4,656 8,825 0 50,000 0 0 98,857 9,615 0 0 0 0 (9,615) 0 0 50,000 0 0 89,242 9,615 71 51,126 14,792 (3,432) 93,898 18,440 41,808 36,667 (137,699) o 1,493 o 1,564 $ 51,126 $ 56,600 $ 33,235 $ (43,801) $ 18,440 $ 63 cant. City of Salina, Kansas Schedule 6 Pal!e 2 UTILITY SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET For the fiscal years ended December 31, 1997 and 1996 1997 1996 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues Taxes Property $ 584,193 $ 568,973 $ 15,220 $ 706,512 $ 693,599 $ 12,913 Delinquent 16,665 13,000 3,665 13,582 13,000 582 Motor vehicle 146,133 139,037 7,096 140,776 120,601 20,175 Total revenues 746,991 721,010 25,981 860,870 827,200 33,670 Expenditures General govenunent Gas service 82,165 78,000 (4,165) 75,269 88,000 12,731 Street lighting 277,757 295,000 17,243 278,107 295,000 16,893 Water service 96,777 121,000 24,223 106,367 121,000 14,633 Light and power 264,193 305,000 40,807 298,423 331,000 32,577 Traffic control 44,177 43,000 (1,177) 41,827 45.000 3,173 Cash reserves 0 200,000 200,000 0 135,000 135,000 Total expenditures 765,069 1,042,000 276,931 799,993 1,015,000 215,007 Excess (deficiency) of revenues over (under) expenditures (18,078) (320,990) 302,912 60,877 (187,800) 248,677 Fund balances, January 1 409,667 320,990 88,677 348,790 187,800 160,990 Fund balances, December 31 $ 391,589 $ 0 $ 391,589 $ 409,667 $ 0 $ 409,667 66 City of Salina, Kansas Schedule 6 EMPLOYEE BENEFIT SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET For the fiscal years ended December 31, 1997 and 1996 1997 1996 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues Taxes Property $ 1,274,194 $ 1,241,028 $ 33,166 $ 2,119,336 $ 2,080,700 $ 38,636 Delinquent 50,335 45,000 5,335 42,852 45,000 (2,148) Motor vehicle 440,700 417,090 23,610 476,097 411,457 64,640 Total taxes 1,765,229 1,703,118 62,111 2,638,285 2,537,157 101,128 Intergovernmental 185,000 185,000 0 185,000 185,000 0 Fees 17.352 179,000 (161,648) 0 0 0 Reimbursed expenses 3,822 0 3.822 306,808 0 306,808 Miscellaneous revenues 0 0 0 172,458 0 172,458 Total revenues 1,971,403 2,067,118 (95,715) 3,302,551 2,722,157 580,394 Expenditures General government Earned leave 0 60,000 60,000 21,932 60,000 38,068 Unemployment 38,167 34,684 (3,483) 25,940 30,530 4,590 Social security 445,331 548,878 103,547 415,361 437,940 22,579 Life insurance 48,843 48,520 (323) 45.691 49,490 3,799 Kansas Police and Fire Retirement 808,577 687,000 (121,577) 693,602 700,000 6,398 Kansas Public Employees Retirement 117,980 116,520 (1,460) 105,430 106,200 770 Health insurance 1,284,691 769,000 (515,691) 1,121,667 1,068.500 (53,167) Dental insurance 0 230.000 230,000 0 0 0 Wellness 56,532 52,300 (4,232) 61,477 46.300 (15,177) Other benefits 0 5,400 5,400 219 5,400 5,181 Administrative expenses 315,106 315,105 (1) 415,000 415,000 0 Cash reserve 0 800,000 800,000 0 800,000 800,000 Total expenditures 3,115,227 3,667,407 552,180 2,906,319 3.719,360 813,041 Excess (deficiency) of revenues over (under) expenditures (1,143,824) (1,600,289) 456.465 396,232 (997,203) 1,393,435 Fund balances, January 1 1,595,601 1,600,289 (4,688) 1,199,369 997,203 202,166 Fund balances, December 31 $ 451,777 $ 0 $ 451,777 $ 1,595,601 $ 0 $ 1,595,601 65 City of Salina, Kansas Schedule 6 Pal!e 4 BUSINESS IMPROVEMENT DISTRICT SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET For the fiscal years ended December 31, 1997 and 1996 1997 1996 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues Fines $ 890 $ 0 $ 890 $ 474 $ 0 $ 474 Special assessments 76,570 80,000 (3,430) 73,553 75,000 (1,447) Use or money and property 158 0 158 0 0 0 Total revenues 77,618 80,000 (2,382) 74,027 75,000 (973) Expenditures General government Contractual 63,242 67,160 3,918 61,569 61,569 0 Other services and charges 100 0 (100) 0 0 0 Total expenditures 63,342 67,160 3,818 61,569 61,569 0 Excess of revenues over expenditures 14,276 12,840 1,436 12,458 13,431 (973) Other financing sources (uses) Operating transfers out (17,000) (17,000) 0 (17,000) (17,000) 0 Excess (deficiency) of revenues over (under) expenditures and other uses (2,724) (4,160) 1,436 (4,542) (3,569) (973) Fund balances, January I 3,187 4,160 (973) 7,729 3,569 4,160 Fund balances, December 31 $ 463 $ 0 $ 463 $ 3,187 $ 0 $ 3,187 68 City of Salina, Kansas Schedule 6 Pal!e 3 SPECIAL LIABILITY SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET For the fiscal years ended December 31, 1997 and 1996 1997 1996 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues Taxes Property $ 10,248 $ 10,000 $ 248 $ 330,729 $ 324,784 $ 5,945 Delinquent 6,789 473 6,316 6,305 7,300 (995) Motor vehicle 68,908 65,106 3,802 77,521 67,095 10,426 Total revenues 85,945 75,579 10,366 414,555 399,179 15,376 Expenditures General government Administrative expenses 86,603 140,000 53,397 396,999 397,000 1 Cash reserve 0 16,228 16,228 0 60,000 60,000 Total expenditures 86,603 156,228 69,625 396,999 457,000 60,001 Excess (deficiency) of revenues over (under) expenditures (658) (80,649) 79,991 17,556 (57,821) 75,377 Fund balances, January 1 96,026 80,649 15,377 78,470 57,821 20,649 Fund balances, December 31 $ 95,368 $ 0 $ 95,368 $ 96,026 $ 0 $ 96,026 67 City of Salina, Kansas SPECIAL PARKS AND RECREA nON SPECIAL REVENUE FUND Schedule 6 Pal!e 6 SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET For the fiscal years ended December 31, 1997 and 1996 1997 1996 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues Intergovernmental $ 87,916 $ 82,500 $ 5,416 $ 84,862 $ 87,333 $ (2,471) Use of money and property 5,573 0 5,573 0 0 0 Miscellaneous 8,000 0 8,000 0 0 0 Total revenues 101,489 82,500 18,989 84,862 87,333 (2,471) Expenditures Capital outlay 122,697 82,500 (40,197) 70,657 88,000 17,343 Cash reserve 0 67,325 67,325 0 87,333 87,333 Total expenditures 122,697 149,825 27,128 70,657 175,333 104,676 Excess (deficiency) of revenues over (under) expenditures (21,208) (67,325) (21,712) 14,205 (88,000) (107,147) Fund balances, January I 99,030 67,325 31,705 84,825 88,000 (3,175) Fund balances, December 31 $ 77,822 $ 0 $ 77,822 $ 99,030 $ 0 $ 99,030 70 City of Salina, Kansas Schedule 6 Pal!e 5 TOURISM AND CONVENTION SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET For the fiscal years ended December 31, 1997 and 1996 1997 1996 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues Taxes Transient guest $ 592,715 $ 715,000 $ (122,285) $ 596,573 $ 715,000 $ (118,427) Use of money and property 1,765 0 1,765 0 0 0 Total revenues 594,480 715,000 (120,520) 596,573 715,000 ( 118,427) Expenditures General government Contractual 370,629 429,000 58,371 357,944 429,000 71,056 Excess of revenues over expenditures 223,851 286,000 (62,149) 238,629 286,000 (47,371) Other fmancing sources (uses) Operating transfers out (222,086) (286,000) 63,914 (238,629) (286,000) 47,371 Excess of revenues over expenditures and other uses 1,765 0 1,765 0 0 0 Fund balances, January 1 0 0 0 0 0 0 Fund balances, December 31 $ 1,765 $ 0 $ 1,765 $ 0 $ 0 $ 0 69 City of Salina, Kansas Schedule 6 Pal!e 8 SPECIAL GAS TAX SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET For the fiscal years ended December 31, 1997 and 1996 1997 1996 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues IntergovernrnenUd $ 1,367,135 $ 1,300,000 $ 67,135 $ 1,322,972 $ 1,300,000 $ 22,972 Use of money and property 38,044 0 38,044 0 0 0 Miscellaneous revenues 0 0 0 4,353 0 4,353 Total revenues 1,405,179 1,300,000 105,179 1,327,325 1,300,000 27,325 Expenditures Public works Supplies 167,882 153,600 (14,282) 174,713 144,090 (30,623 ) Other services 40,654 39,161 (1,493) 44,488 36,000 (8,488) CapiUd outlay 1,130,613 1.091,000 (39,613) 1,167,239 1,153,000 (14,239) Cash reserve 0 300,880 300,880 0 434,623 434,623 Total expenditures 1,339,149 1,584,641 245,492 1,386,440 1,767,713 381,273 Excess (deficiency) of revenues over (under) expenditures 66,030 (284,641) 350,671 (59,115) (467,713) 408,598 Other fmancing sources (uses) Operating transfers out 0 (5,275) 5,275 0 0 0 Excess (deficiency) of revenues over (under) expenditures and other uses 66,030 (289,916) 355,946 (59,115) (467,713) 408,598 Fund balances, January I 374,891 289,916 84,975 434,006 467.713 (33,707) Prior year cancelled encumbrances 3,086 0 3,086 0 0 0 Fund balances, December 31 $ 444,007 $ 0 $ 444,007 $ 374,891 $ 0 $ 374,891 72 City of Salina, Kansas Schedule 6 Pal!e 7 SPECIAL ALCOHOL SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET For the fiscal years ended December 31, 1997 and 1996 Total revenues 1997 1996 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) $ 87,916 $ 87,333 $ 583 $ 84,862 $ 87,333 $ (2,471) 369 0 369 0 0 0 88,285 87,333 952 84,862 87,333 (2,471) Revenues lntergovernInen~ Use of money and property Expenditures Health and welfare Contractual 87,916 87,333 (583) 84,862 89,066 4,204 Excess (deficiency) of revenues over (under) expenditures 369 o 369 o (1,733) 1,733 Fund balances, January I 1,733 (1,733) o o o o Fund balances, December 31 $ 369 $ o $ 369 $ o $ o $ o 71 City of Salina, Kansas DEBT SERVICE FUND The debt service fund is used to account for the accumulation of resources and payment of general obligation bond principal and interest from governmental resources and special assessment bond principal and interest from special assessment levies when the City is obligated in some manner for the payment. 74 City of Salina, Kansas Schedule 6 Pal!e 9 BICENTENNIAL CENTER SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET For the fiscal years ended December 31, 1997 and 1996 1997 1996 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues Charges for services $ 625,353 $ 698,000 $ (72,647) $ 710,577 $ 674,000 $ 36,577 Use of money and property 21,353 0 21,353 0 0 0 Total revenues 646,706 698,000 (51,294) 710,577 674,000 36,577 Expenditures Bicentennial Center Personal services 535,404 582,182 46,778 522,895 543,193 20,298 Supplies 0 53,595 53,595 50,989 50,200 (789) Contractual 0 8,039 8,039 50 2,000 1,950 Other services and charges 441,729 397,177 (44,552) 341,407 338,300 (3,107) Capital outlay 76,866 108,500 31,634 71,263 117,200 45,937 Cash reserve 0 234,429 234,429 0 309,980 309,980 Total expenditures 1,053,999 1,383,922 329,923 986,604 1,360,873 374,269 Excess (deficiency) of revenues over (under) expenditures (407,293) (685,922) 257,276 (276,027) (686,873) 410,846 Other financing sources Operating transfers in 322,086 386,000 (63,914) 338,629 386,000 (47,371) Excess (deficiency) of revenues and other sources over (under) expenditures (85,207) (299,922 ) 193,362 62,602 (300,873) 363,475 Fund balances. January 1 401,635 308,639 92,996 339,033 300,873 38,160 Fund balances, December 31 $ 316,428 $ 8,717 $ 307,711 $ 401,635 $ 0 $ 401,635 73 City of Salina, Kansas Schedule 8 DEBT SERVICE FUND COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For the fiscal years ended December 31, 1997 and 1996 1997 1996 Revenues Taxes $ 2,602,086 $ 1,461,418 Special assessments 1,048,863 1,131,852 Use of money and property 86,395 85,360 Miscellaneous 5,593 0 Total revenues 3,742,937 2,678,630 Expenditures Debt service Principal 3,443,464 2,135,766 Interest and other charges 598,844 531,272 Total expenditures 4,042,308 2,667,038 Excess (deficiency) of revenues over (under) expenditures (299,371) 11,592 Other financing sources Bond proceeds 50,000 0 Excess (deficiency) of revenues and other sources over (under) expenditures (249,371) 11,592 Fund balances, January 1 1,052,539 1,024,020 Residual equity transfer in 64,591 16,927 Fund balances, December 31 $ 867,759 $ 1,052,539 76 City of Salina, Kansas Schedule 7 BOND AND INTEREST DEBT SERVICE FUND COMPARATIVE BALANCE SHEETS December 31,1997 and 1996 ASSETS 1997 1996 Cash and investments $ 867,759 $ 1,052,539 Cash with fiscal agent 104,790 55,839 Receivables Taxes 1,138,685 2,289,301 Total assets $ 2, III ,234 $ 3,397,679 LIABILITIES AND FUND BALANCES Liabilities Deferred revenue $ 1,138,685 $ 2,289,301 Matured principal and interest payable 104,790 55,839 Total liabilities 1,243,475 2,345,140 Fund balances Unreserved Designated for debt service 867,759 1,052,539 Total liabilities and fund balances $ 2,111,234 $ 3,397,679 75 City of Salina, Kansas CAPITAL PROJECTS FUND The capital projects fund is used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds. 78 City of Salina, Kansas Schedule 9 BOND AND INTEREST DEBT SERVICE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET For the fiscal years ended December 31, 1997 and 1996 1997 1996 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues Taxes Property $ 2,350,311 $ 2,289,301 $ 61,010 $ 1,020,694 $ 1,002,081 $ 18,613 Delinquent 32,010 36,651 (4,641) 30,516 39,000 (8,484 ) Motor vehicle 219,765 200,875 18,890 410,208 357,917 52,291 Total taxes 2,602,086 2.526,827 75,259 1,461,418 1,398,998 62,420 Special assessments 1,048,863 963,000 85,863 1,131,852 871,000 260,852 Use of money and property 86,395 59,915 26,480 85,360 0 85,360 Miscellaneous 5,593 0 5,593 0 0 0 Total revenues 3,742,937 3,549,742 193,195 2,678,630 2,269,998 408,632 Expenditures Debt service Principal 3,443,464 2.934,128 (509,336) 2,135.766 2,195,766 60,000 Interest 598,127 919,514 321,387 530,574 566,576 36,002 Commission and postage 717 1,000 283 698 1,000 302 Cash reserve 0 403,776 403,776 0 400,000 400,000 Total expenditures 4,042,308 4,258,418 216,110 2,667,038 3,163,342 496,304 Excess (deficiency) of revenues over (under) expenditures (299,371) (708,676) 409,305 11,592 (893,344) 904.936 Other financing sources Bond proceeds 50,000 0 50,000 0 0 0 Excess (deficiency) of revenues and other sources over (under) expenditures (249,371) (708,676) 459,305 1l,592 (893,344) 904,936 Fund balances, January I 1,052,539 633,676 418,863 1,024,020 893,344 130,676 Residual equity transfer in 64,591 75,000 (10,409) 16,927 0 16,927 Fund balances, December 31 $ 867,759 $ 0 $ 867,759 $ 1,052,539 $ 0 $ 1,052,539 77 City of Salina, Kansas Schedule 11 CAPITAL PROJECTS FUND COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For the fiscal years ended December 31, 1997 and 1996 1997 1996 Revenues Intergovernmental $ 807 $ 0 Use of money and property 70,113 98,016 Reimbursements 122,550 63,669 Total revenues 193,470 161,685 Expenditures Capital outlay Contractual 308,805 81,514 Capital outlay 1,990,923 7,044,562 Debt service Temporary note payments 4,850,000 520,000 Interest expense 158,456 40,116 Bond issuance costs 22,349 27,731 Total expenditures 7,330,533 7,713,923 Excess (deficiency) of revenues over (under) expenditures (7,137,063) (7,552,238) Other financing sources Bond and temporary note proceeds 10,110,000 6,897,000 Excess (deficiency) of revenues and other sources over (under) expenditures 2,972,937 (655,238) Fund balances (deficit), January 1 (294,038) 366,963 Residual equity transfers in 416,899 11,164 Residual equity transfers out (308,825) (16,927) Fund balances (deficit), December 31 $ 2,786,973 $ (294,038) 80 City of Salina, Kansas Schedule 10 CAPITAL PROJECTS FUND COMPARATIVE BALANCE SHEETS December 31, 1997 and 1996 ASSETS 1997 1996 Cash and investments $ 2,826,977 $ 0 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ 5,142 $ 26 Retainage payable 34,862 28,089 Due to funds 0 265,923 Total liabilities 40,004 294,038 Fund balances Reserved for encumbrances 1,194,259 663,412 Unreserved Undesignated (deficit) 1,592,714 (957,450) Total fund balances (deficit) 2,786,973 (294,038) Total liabilities and fund balances $ 2,826,977 $ 0 79 City of Salina, Kansas ENTERPRISE FUNDS COMB~GBALANCESHEET December 31, 1997 (With comparative totals for December 31, 1996) Solid Waste ASSETS Sanitation Disposal Cash and investments $ 502,939 $ 1,390,335 Receivables Accounts 80,382 176,757 Interest 0 0 Inventory and prepaid supplies 0 0 Restricted cash and investments 0 0 Fixed assets Land 18,000 120,000 Land improvement 0 4,701,221 Water plant and equipment 0 0 Sewerage plant and equipment 0 0 Equipment 638,560 269,807 Vehicles 312,103 1,023,657 Buildings 0 350,381 Construction in process 0 0 Accumulated depreciation (707,656) (1,350,980) Deferred charges 0 20,338 Total assets $ 844,328 $ 6,701,516 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ 3,685 $ 113,237 Retainage payable 0 0 Accrued compensated absences 100,391 21,635 Meter deposits payable 0 0 Payable from restricted assets Accrued interest payable 0 19,445 Revenue bonds payable - current 0 0 General obligation bonds payable - current 0 241,816 Temporary notes payable - current 0 700,000 General obligation bonds payable 0 1,343,642 Revenue bonds payable 0 0 Temporary notes payable 0 0 Landfill closure and postclosure 0 976,002 Deferred revenue 0 0 Total liabilities 104,076 3,415,777 Equity Contributed capital 5,187 86,440 Retained Earnings Reserved for encumbrances 0 48,697 Reserved for bond retirement 0 0 Reserved for postclosure care costs 0 92,520 Unreserved . 735,065 3,058,082 Total equity 740,252 3,285,739 Total liabilities and equity $ 844,328 $ 6,701,516 82 City of Salina, Kansas ENTERPRISE FUNDS Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the governing body is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or where the governing body has decided that periodic determination of net income is appropriate for accountability purposes. Sanitation fund - To account for the operations of the City's refuse collection service. Solid waste fund - To account for the activities of the City's landfill. Golf course ~und - To account for the operations of the municipal golf course. Water and sewer fund - To account for the activities of the City's water and sewer operations. 81 City of Salina, Kansas ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For the fiscal year ended December 31, 1997 (With comparative totals for the fiscal year ended December 31, 1996) Solid Waste Sanitation Disposal Operating revenues Intergovernmental $ 0 $ 30,724 Charges for services 1,229,738 2,401,296 Miscellaneous 572 20,037 Total operating revenues 1,230,310 2,452,057 Operating expenses Public works 1,318,495 920,286 Recreation 0 0 Depreciation 53,208 365,960 Total operating expenses 1,371,703 1,286,246 Operating income (loss) (141,393) 1,165,811 Nonoperating revenues (expenses) Use of money and property 33,486 61,254 Bond issuance costs 0 (5,857) Debt service 0 (117,333) Loss on disposition of fixed assets 0 (215) Total nonoperating revenues (expenses) 33,486 (62,151) Net income (loss) (107,907) 1,103,660 Retained earnings, January 1 842,972 2,792,170 Restatement 0 (696,531) Residual equity transfer out 0 0 Retained earnings, December 31 $ 735,065 $ 3,199,299 84 Schedule 12 Total Golf Course Water and Division Sewer 1996 1996 $ 131,985 $ 10,568,614 $ 12,593,873 $ 14,141,848 0 520,750 777,889 710,485 0 38,443 38,443 61,071 25,801 428,023 453,824 402,707 0 11,601,880 11,601,880 10,667,462 15,000 361,050 514,050 514,050 184,938 0 4,886,159 4,886,159 0 31,895,409 31,895,409 29,710,884 0 36,774,426 36,774,426 36,732,905 691,254 519,934 2,119,555 2,093,451 18,429 0 1,354,189 1,323,801 225,231 0 575,612 575,612 2,735 3,378,881 3,381,616 2,849,177 (857,701) (26,234,255) (29,150,592) (26,597,002) 0 465,513 485,851 531,413 $ 437,672 $ 70,318,668 $ 78,302,184 $ 78,604,023 $ 4,062 $ 196,502 $ 317,486 $ 322,763 0 46,425 46,425 75,040 28,570 312,325 462,921 410,168 0 81,300 81,300 78,656 9,250 347,739 376,434 396,241 0 1,085,000 1,085,000 1,015,000 32,700 0 274,516 248,523 0 0 700,000 695,000 267,156 0 1,610,798 1,625,320 0 32,790,000 32,790,000 33,875,000 0 0 0 700,000 0 0 976,002 460,929 0 0 0 14,367 341,738 34,859,291 38,720,882 39,917,007 1,700 8,385,683 8,479,010 8,469,660 0 1,397,522 1,446,219 2,616,336 0 3,501,554 3,501,554 4,294,494 0 0 92,520 45,000 94,234 22,174,618 26,061,999 23,261,526 95,934 35,459,377 39,581,302 38,687,016 $ 437,672 $ 70,318,668 $ 78,302,184 $ 78,604,023 83 City of Salina, Kansas ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS For the fiscal year ended December 31, 1997 (With comparative totals for the fiscal year ended December 31, 1996) Solid Waste Sanitation Disposal Cash flows from operating activities Cash received from customers and users $ 1,222,203 $ 2,373,577 Cash paid to suppliers and employees (1,171,527) (1,101,108) Cash paid for quasi-external transactions (132,624) 0 Operating grant receipts 0 30,724 Other operating receipts 572 20,037 Net cash provided by (used in) operating activities (81,376) .. 1,323,230 Cash flows from capital and related financing activities Purchase and construction of fixed assets (57,525) (8,258) Proceeds from issuance of debt 0 0 Principal payments - temporary notes 0 (695,000) Principal payments - general obligation bonds 0 (241,829) Principal payments - revenue bonds 0 0 Interest paid 0 (127,849) Contributed capital 0 0 Net cash provided by (used in) capital and related financing activities (57,525) (1,072,936) Cash flows from investing activities Interest received 33,486 66,525 Cash flows from noncapital financing activities Transfers to other funds 0 0 Net increase (decrease) in cash and cash equivalents (105,415) 316,819 Cash and cash equivalents, January 1 608,354 1,073,516 Cash and cash equivalents, December 31 $ 502,939 $ 1,390,335 Cash and investments $ 502,939 $ 1,390,335 Restricted cash and investments 0 0 Total cash and cash equivalents $ 502,939 $ 1,390,335 86 Schedule 13 Total Golf Course Water and Division Sewer 1997 1996 $ 0 $ 14,367 $ 45,091 $ 142,695 782,162 10,411,919 14,825,115 14,143,119 0 16,123 36,732 45,186 782,162 10,442,409 14,906,938 14,331,000 0 6,714,541 8,953,322 8,900,247 685,819 0 685,819 646,314 48,358 2,187,889 2,655,415 2,397,355 734,177 8,902,430 12,294,556 11,943,916 47,985 1,539,979 2,612,382 2,387,084 0 1,329,321 1,424,061 1,245,809 0 (39,705) (45,562) (45,562) (10,530) (2,010,992) (2,138,855) (2,150,710) (8,922) (1,422) (10,559) (16,551) (19,452) (722,798) (770,915) (967,014) 28,533 817,181 1,841,467 1,420,070 325,701 26,256,513 30,217,356 28,797,286 0 0 (696,531) 0 (260,000) 0 (260,000) 0 $ 94,234 $ 27,073,694 $ 31,102,292 $ 30,217,356 85 City of Salina, Kansas ENTERPRiSE FUNDS COMBINING STATEMENT OF CASH FLOWS For the fiscal year ended December 31, 1997 (With comparative totals for the fiscal year ended December 31, 1996) Solid Waste Disposal Reconciliation of operating income (loss) to net cash provided by (used in) operating activities Sanitation Operating income (loss) $ (141,393) $ 1,165,811 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities Depreciation expense (Increase) decrease in accounts receivable (Increase) decrease in inventory Increase (decrease) in accounts payable Increase (decrease) in retainage payable Increase (decrease) in accrued compensated absences Increase (decrease) in meter deposits payable Increase (decrease) in accounts and retainage payable Increase (decrease) in landfill closure and postclosure Increase (decrease) in deferred revenue Net cash provided by (used in) operating activities 53,208 365,960 (7,535) (27,719) 0 0 3,300 1,067 0 0 11,044 (431) 0 0 0 0 0 (181,458) 0 0 $ (81,376) $ 1,323,230 88 Schedule 14 Total Golf Course Water and Division Sewer 1997 1996 $ 782,162 $ 10,368,046 $ 14,745,988 $ 14,125,942 (388,678) (6,167,909) (8,829,222) (9,896,435) (293,092) (597,917) (1,023,633) 0 0 14,367 45,091 142,695 0 16,123 36,732 45,186 100,392 3,632,710 4,974,956 4,417,388 (36,202) (2,816,026) (2,918,011) (3,159,280) 260,000 0 260,000 0 0 0 (695,000) (765,000) (6,700) 0 (248,529) (248,234) 0 (1,015,000) (1,015,000) (955,000) (1,805) (2,029,008) (2,158,662) (2,294,849) 0 0 0 570,068 215,293 (5,860,034) (6,775,202) (6,852,295) 0 1,346,678 1,446,689 1,251,508 (260,000) 0 (260,000) 0 55,685 (880,646) (613,557) (1,183,399) 76,300 23,051,140 24,809,310 25,992,709 $ 131,985 $ 22,170,494 $ 24,195,753 $ 24,809,310 $ 131,985 $ 10,568,614 $ 12,593,873 $ 14,141,848 0 11,601,880 11,601,880 10,667,462 $ 131,985 $ 22,170,494 $ 24,195,753 $ 24,809,310 87 cont. City of Salina, Kansas Schedule 15 SANITATION ENTERPRiSE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL AND BUDGET For the fiscal years ended December 31, 1997 and 1996 1997 1996 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues Charges for services $ 1,222.203 $ 1,175,000 $ 47,203 $ 1,121.376 $ 1,020,000 $ 101,376 Use of money and property 33,487 25,000 8,487 29,284 25,000 4,284 Miscellaneous 572 999 (427) 2,570 1,000 1,570 Total revenues 1,256,262 1,200,999 55,263 1,153,230 1,046,000 107,230 Expenditures General government Administrative expense 132,624 104,520 (28,104 ) 99,475 99,475 0 Public works pen;onal services 589,202 558,692 (30,510) 538,835 522,510 (16,325) Supplies 0 147,700 147,700 141,711 134,900 (6,811) Contractual 0 44,604 44,604 15,264 15,800 536 Other services and charges 585,378 444,110 (141,268) 316,560 238,000 (78,560) Capital outlay 57,773 66,800 9,027 53,701 45,700 (8,001) Cash reserve 0 394,473 394,473 0 539,826 539,826 Total expenditures 1,364,977 1,760,899 395,922 1,165,546 1,596,211 430,665 Excess (deficiency) of revenues over (under) expenditures (108,715) (559,900) 451,185 (12,316) (550,211) 537,895 Fund balances, January 1 607,969 559,900 48,069 620,285 550,211 70,074 Fund balances, December 31 $ 499,254 $ 0 $ 499,254 $ 607.969 $ 0 $ 607,969 90 48,358 2,187,889 2,655,415 2,397,355 0 (32,150) (67,404) (24,781) 1,120 (52,237) (51,117) (57,320) (4,105) (5,539) (5,277) (63,799) 0 (28,615) (28,615) 75,040 7,034 35,106 52,753 30,087 0 2,644 2,644 (6,763) 0 0 0 (162,516) 0 0 (181,458) (171,366) 0 (14,367) (14,367) 14,367 $ 100,392 $ 3,632,710 $ 4,974,956 $ 4,417,388 Golf Course Division $ 47,985 $ Schedule 14 Pal!e 2 Total Water and Sewer 1997 1996 1,539,979 $ 2,612,382 $ 2,387,084 89 City of Salina, Kansas Schedule 15 Pal!e 3 GOLF COURSE DIVISION ENTERPRISE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL AND BUDGET For the fiscal years ended December 31, 1997 and 1996 1997 1996 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues Charges for services $ 782,162 $ 641,668 $ 140,494 $ 654,851 $ 597,400 $ 57,451 Use of money and property 0 5,000 (5,000) 4,677 3,000 1,677 Reimbursements 0 200 (200) 45 200 (155) Miscellaneous 0 4,000 (4,000) 2,785 2,000 785 Total revenues 782,162 650,868 131,294 662,358 602,600 59,758 Expenditures General government Administrative expenses 33,092 30,188 (2,904) 30,581 30,581 0 Recreation Personal services 298,230 274,006 (24,224) 282,919 270,022 (12,897) Supplies 0 97,900 97,900 112,100 94,000 (18,100) Contractual 0 26,904 26,904 26,242 20,500 (5,742) Other services and charges 342,090 167,900 (174,190) 205,141 137,150 (67,991) Capital outlay 40,456 50,000 9,544 54,617 71,600 16,983 Debt service Principal 6,707 21,707 15,000 6,707 6,707 0 Interest 1,798 9,100 7,302 2,100 2,100 0 Cash reserve 0 86,005 86,005 0 87,940 87,940 Total expenditures 722,373 763,710 41,337 720,407 720,600 193 Excess (deficiency) of revenues over (under) expenditures 59,789 (112,842) 172,631 (58,049) ( 118,000) 59,951 Fund balances, January 1 68,133 92,842 (24,709) 104,902 100,000 4,902 Fund balances, December 31 $ 127,922 $ (20,000) $ 147,922 $ 46,853 $ (18,000) $ 64,853 92 City of Salina, Kansas Schedule 15 Pal!e 2 SOLID WASTE DISPOSAL DIVISION ENTERPRISE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL AND BUDGET For the fiscal years ended December 31, 1997 and 1996 1997 1996 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues Intergovernmental $ 30,724 $ 0 $ 30,724 $ 31,142 $ 0 $ 31,142 Charges for services 2,490,052 2,509,200 (19,148) 1,884,475 1,845,000 39.475 Use of money and property 60,522 35,000 25,522 37,039 35,000 2,039 Reimbursements 0 0 0 15 0 15 Miscellanaeous 20,037 19,967 70 20,686 10,000 10,686 Total revenues 2,601,335 2,564,167 37,168 1,973,357 1,890,000 83,357 Expenditures General government Administrative expenses 110,991 102,394 (8,597) 58,756 103,756 45,000 Public works Personal services 316,181 349,843 33,662 291,382 326,630 35,248 Supplies 0 160,440 160,440 166,566 154,850 (11,716) Contractual 0 238,897 238,897 23,315 147,300 123,985 Other services and charges 518,757 393,220 (125,537) 437,856 355.250 (82,606) Capital outlay 9,343 396,800 387,457 4,813 5,700 887 Debt service Principal 936,829 956,573 19,744 1,006,527 1,006,525 (2) Interest 127,821 107,356 (20,465) 197,923 223,854 25,931 Commission and postage 29 0 (29) 27 0 (27) Cash reserve 0 412,803 412,803 0 542,867 542,867 Total expenditures 2,019,951 3,118,326 1,098,375 2,187,165 2,866,732 679,567 Excess (deficiency) of revenues over (under) expenditures 581,384 (554,159) 1,135,543 (213,808) (976,732) 762,924 Other fmancing sources (uses) Operating transfers out (45,000) 0 (45,000) (45,000) 0 (45,000) Excess (deficiency) of revenues over (under) expenditures and other uses 536,384 (554.159) 1,090,543 (258,808) (976,732) 717,924 Fund balances, January I 699,216 554,159 145,057 958,024 976,732 (18,708) Prior year cancelled encumbrances 1,698 0 1,698 0 0 0 Fund balances, December 31 $ 1,237,298 $ 0 $ 1,237,298 $ 699,216 $ 0 $ 699,216 91 This page left blank intentionally. City of Salina, Kansas Schedule 15 Pal!e 4 WATER AND SEWER ENTERPRISE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL AND BUDGET For the fiscal years ended December 31, 1997 and 1996 1997 1996 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues Charges for services $ 11,370,161 $ 10,696,900 $ 673,261 $ 10,429,592 $ 9,958,000 $ 471,592 Use of money and property 315.613 300,000 15,613 283,723 300,000 (16,277) Miscellaneous 16,123 50,000 (33,877) 19,085 100,000 (80,915) Total revenues 11,701,897 11,046,900 654,997 10,732,400 10.358,000 374,400 Expenditures General government Administrative expenses 597,917 367,379 (230,538) 500,824 500,824 0 Public works Personal services 2,596,584 2,536,776 (59,808) 2,422,112 2,452,460 30,348 Supplies 0 1,908.450 1,908,450 1,675,236 1,771,950 96,714 Contractual 0 687,538 687,538 534,507 761,000 226,493 Other services and charges 3,328,381 1,231,400 (2,096.981) 1,260,608 1,208,550 (52,058) Capital outlay 1,507,058 1,947,300 440,242 3,136,381 1,501,000 (1,635,381) Debt service Conunission and postage 781 1,000 219 756 1,000 244 Cash reserves 0 4,791,886 4,791,886 0 5,477,614 5,477,614 Total expenditures 8,030,721 13,471,729 5,441,008 9,530,424 13,674,398 4,143,974 Excess (deficiency) of revenues over (under) expenditures 3,671,176 (2,424,829) 6,096,005 1,201,976 (3,316,398) 4,518,374 Other financing sources (uses) Operating transfers out (2,270,600) (2,476,736) 206,136 (2,520,611 ) (2,481,475) (39,136) Excess (deficiency) of revenues over (under) expenditures and other uses 1,400.576 (4,901.565) 6,302,141 (1,318,635) (5,797,873) 4,479,238 Fund balances, January 1 3,793,837 5,125,213 (1,331,376) 5,112,472 5,797,873 (685,401) Prior year cancelled encumbrances 102,739 0 102,739 0 0 0 Fund balances, December 31 $ 5,297,152 $ 223,648 $ 5,073,504 $ 3,793,837 $ 0 $ 3,793,837 93 Cash and investments Receivables Deposits Inventory Fixed assets Equipment Vehicles Buildings Accumulated depreciation Total assets City of Salina, Kansas INTERNAL SERVICE FUNDS COMBINING BALANCE SHEET December 31, 1997 (With comparative totals for December 31, 1996) ASSETS LIABILITIES AND EQUITY Liabilities Accounts payable Accrued compensated absences Accrued claims payable Total liabilities Equity Contributed capital Retained earnings (deficit) Unreserved Total liabilities and equity 95 Worker's Risk Compensation Management Reserve $ 470,858 $ 1,535,209 0 19,132 0 0 0 0 0 0 0 0 0 0 $ 470,858 $ 1,554,341 $ 4,797 $ 56 0 0 0 42,881 4,797 42,937 0 0 466,061 1,511,404 $ 470,858 $ 1,554,341 City of Salina, Kansas INTERNAL SERVICE FUNDS Internal service funds are used to account for the financing of goods or services provided by one agency to other departments or agencies of the government and to other governmental units on a cost reimbursement basis. Risk management fund - To account for the accumulation and allocation of costs associated with risk management activities and the purchase of various forms of insurance. Workers' compensation reserve fund - To account for the costs of providing a partially self-insured workers' compensation plan and for accumulating the necessary reserve amounts. Health insurance fund - To account for the costs of providing a partially self-insured health insurance and for accumulating the necessary reserve amounts. Central garage fund - To account for the accumulation and allocation of costs associated with the City's centralized vehicle repair shop. Information services fund - To account for the accumulation and allocation of costs associated with electronic data processing. 94 City of Salina, Kansas INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For the fiscal year ended December 31, 1997 (With comparative totals for the fiscal year ended December 31, 1996) Worker's Risk Compensation Management Reserve Operating revenues Charges for services $ 86,603 $ 419,601 Reimbursements 73,676 0 Miscellaneous 0 0 Total operating revenues 160,279 419,601 Operating expenses General government 342,465 117,056 Depreciation 0 0 Total operating expenses 342,465 117,056 Operating income (loss) (182,186) 302,545 Nonoperating revenues (expenses) Use of money and property 28,954 79,248 Gain (loss) on disposition of fixed assets 0 0 Total nonoperating revenues (expenses) 28,954 79,248 Net income (loss) (153,232) 381,793 Retained earnings, January 1 619,293 1,129,611 Retained earnings (deficit), December 31 $ 466,061 $ 1,511,404 97 Schedule 16 Total Health Central Information Insurance Garage Services 1997 1996 $ 440,730 $ 40,744 $ 186,561 $ 2,674,102 $ 2,080,330 0 0 0 19,132 0 0 50,351 0 50,351 53,447 0 125,094 957,448 1,082,542 1,017,405 0 15,911 0 15,911 15,911 0 22,072 0 22,072 22,072 0 (121,712) (593,942) (715,654) (559,180) $ 440,730 $ 132,460 $ 550,067 $ 3,148,456 $ 2,629,985 $ 23,067 $ 13,811 $ 42,969 $ 84,700 $ 45,228 0 21,989 17,118 39,107 35,528 345,000 0 0 387,881 128,986 368,067 35,800 60,087 511,688 209,742 0 16,611 508,435 525,046 525,046 72,663 80,049 (18,455) 2,111,722 1,895,197 $ 440,730 $ 132,460 $ 550,067 $ 3,148,456 $ 2,629,985 96 City of Salina, Kansas INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS For the fiscal year ended December 31, 1997 (With comparative totals for the fiscal year ended December 31, 1996) Net cash provided by (used for) operating activities Worker's Risk Compensation Management Reserve $ 73,676 $ 0 86,603 400,469 (341,934) (215,564) (805) (728) 0 0 (182,460) 184,177 Cash flows from operating activities Cash received from customers Cash received from quasi-external transactions Cash paid to suppliers and employees Cash paid for quasi-external transactions Other operating receipts Cash flows from capital and related financing activities Purchase of fixed assets Proceeds from sales of fixed assets Contributed capital Net cash provided by (used for) capital and related financing activities 0 0 0 0 0 0 0 0 28,954 79,248 (153,506) 263,425 624,364 1,271,784 $ 470,858 $ 1,535,209 Cash flows from investing activities Interest received Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, January 1 Cash and cash equivalents, December 31 99 Schedule 17 Total Health Central Information Insurance Garage Services 1997 1996 $ 2,357,382 $ 755,557 $ 565,833 $ 4,184,976 $ 2,058,288 0 9,974 87,750 171,400 245,998 0 0 8,052 8,052 3,595 2,357,382 765,531 661,635 4,364,428 2,307,881 2,309,082 789,530 578,675 4,136,808 1,609,424 0 5,696 150,778 156,474 150,612 2,309,082 795,226 729,453 4,293,282 1,760,036 48,300 (29,695) (67,818) 71,146 547,845 24,363 2,185 10,629 145,379 0 0 0 0 0 (26,587) 24,363 2,185 10,629 145,379 (26,587) 72,663 (27,510) (57,189) 216,525 521,258 0 107,559 38,734 1,895,197 1,373,939 $ 72,663 $ 80,049 $ (18,455) $ 2,111,722 $ 1,895,197 98 City of Salina, Kansas INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS For the fiscal year ended December 31, 1997 (With comparative totals for the fiscal year ended December 31, 1996) Worker's Risk Compensation Management Reserve Reconciliation of operating income (loss) to net cash provided by (used for) operating activities Operating income (loss) $ (182,186) $ 302,545 Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities Depreciation expense 0 0 (Increase) decrease in deposits receivable 0 (19,132) (Increase) decrease in inventory 0 0 Increase (decrease) in accounts payable 1,268 (13,131) Increase (decrease) in accrued compensated absences (1,542) 0 Increase (decrease) in claims payable 0 (86,105) Net cash provided by (used for) operating activities $ (182,460) $ 184,177 101 Schedule 18 Total Health Central Information Insurance Garage Services 1997 1996 $ 2,357,382 $ 765,531 $ 245,617 $ 3,442,206 $ 2,343,979 0 0 407,966 895,038 0 (1,941,015) (787,289) (513,495) (3,799,297) (1,661,305) 0 (7,348) (23,588) (32,469) 0 0 0 8,052 8,052 3,595 416,367 (29,106) 124,552 513,530 686,269 0 (1,753) (63,384) (65,137) (87,006) 0 0 0 0 293 0 0 0 0 65,391 0 (1,753) (63,384) (65,137) (21,322) 24,363 2,185 10,629 145,379 0 440,730 (28,674) 71,797 593,772 664,947 0 69,418 114,764 2,080,330 1,415,383 $ 440,730 $ 40,744 $ 186,561 $ 2,674,102 $ 2,080,330 100 cont. City of Salina, Kansas Schedule 19 RISK MANAGEMENT RESERVE INTERNAL SERVICE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL AND BUDGET For the fiscal years ended December 31, 1997 and 1996 1997 1996 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues Charges for services $ 86,603 $ 140,000 $ (53,397) $ 513,337 $ 513,338 $ (I) Use of money and property 28,954 0 28,954 0 0 0 Reimbursements 73,676 298 73,378 21,923 0 21,923 Total revenues 189,233 140,298 48,935 535,260 513,338 21,922 Expenditures General government Personal services 0 0 0 33,409 63,729 30,320 Supplies 0 2,200 2,200 2,507 1,900 (607) Contractual 0 351,805 351,805 301,429 440,000 138,571 Other services and charges 344,007 3,300 (340,707) 3,441 5,300 1,859 Capital outlay 0 1,500 1,500 1,284 1,500 216 Cash reserve 0 315,047 315,047 0 279,051 279,051 Total expenditures 344,007 673,852 329,845 342,070 791,480 449,410 Excess (deficiency) of revenues over (under) expenditures (154,774) (533,554) 378,780 193,190 (278,142) 471,332 Fund balances, January I 620,835 533,554 87,281 427,645 278,142 149,503 Fund balances, December 31 $ 466,061 $ 0 $ 466,061 $ 620,835 $ 0 $ 620,835 103 Schedule 18 Pa2e 2 Central Garage Information Services Total Health Insurance 1997 1996 $ 48,300 $ (29,695) $ (67,818) $ 71,146 $ 547,845 0 5,696 150,778 156,474 150,612 0 0 0 (19,132) 39,693 0 3,096 0 3,096 13,373 23,067 (11,249) 39,517 39,472 7,092 0 3,046 2,075 3,579 5,102 345,000 0 0 258,895 (77,448) $ 416,367 $ (29,106) $ 124,552 $ 513,530 $ 686,269 102 City of Salina, Kansas Schedule 19 Pa2e 3 CENTRAL GARAGE DIVISION INTERNAL SERVICE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL AND BUDGET For the fiscal years ended December 31, 1997 and 1996 1997 1996 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues Charges for services $ 755,557 $ 800,000 $ (44,443) S 795,374 $ 823,802 $ (28,428) Use of money and property 2,185 0 2,185 0 0 0 Reimbursements 9,974 2,998 6,976 11,881 0 11,881 Total revenues 767,716 802,998 (35,282) 807,255 823,802 (16,547) Expenditures General government Personal services 199,900 208,741 8,841 193,614 194,945 1,331 Supplies 0 542,490 542,490 553,059 516,350 (36,709) Contractual 0 3,172 3,172 0 0 0 Other services and charges 577,893 18,345 (559,548) 14,170 20,500 6,330 Administrative expenses 7,348 4,176 (3,172) 7,150 7,150 0 Capital outlay 0 0 0 5,860 6,000 140 Cash reserve 0 115,887 115,887 0 106,996 106,996 Total expenditures 785,141 892,811 107,670 773,853 851,941 78,088 Excess (deficiency) of revenues over (under) expenditures (17,425) (89,813) 72,388 33,402 (28,139) 61,541 Fund balances, January I 44,358 89,813 (45,455) 10,956 28,139 (17,183) Fund balances, December 31 $ 26,933 $ 0 $ 26,933 $ 44,358 $ 0 $ 44,358 105 City of Salina, Kansas Schedule 19 Pa2e 2 WORKMEN'S COMPENSATION RESERVE INTERNAL SERVICE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL AND BUDGET For the fiscal years ended December 31, 1997 and 1996 1997 1996 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues Charges for services $ 419,601 $ 419,602 $ (I) $ 563,270 $ 563,270 $ 0 Use of money and property 79,248 0 79,248 0 0 0 Reimbursements 0 30,476 (30,476) 39,693 0 39,693 Total revenues 498,849 450,078 48,771 602,963 563,270 39,693 Expenditures General government Contractual 149,375 273,277 123,902 68,279 424,000 355,721 Cash reserve 0 0 0 0 587,381 587,381 Total expenditures 149,375 273,277 123,902 68,279 1,011,381 943,102 Excess (deficiency) of revenues over (under) expenditures 349,474 176,801 172,673 534,684 (448,111) 982,795 Fund balances, January 1 1,142,704 847,290 295,414 608,020 448, 111 159,909 Prior year canceled encumbrances 94 0 94 0 0 0 Fund balances, December 31 $ 1,492,272 $ 1,024,091 $ 468,181 $ 1,142,704 $ 0 $ 1,142,704 104 This page left blank intentionally. City of Salina, Kansas Schedule 19 Pa2e 4 INFORMATION SERVICES INTERNAL SERVICE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL AND BUDGET For the fiscal years ended December 31, 19967and 1996 1997 1996 Variance Variance Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) Revenues Charges for services $ 565,833 $ 627,527 $ (61,694) $ 186,307 $ 380,161 $ (193,854) Use of money and property 10,629 0 10,629 0 0 0 Reimbursements 87,750 0 87,750 172,500 0 172,500 Miscellaneous 50 4,086 (4,036) 3,595 0 3,595 Total revenues 664,262 631,613 32,649 362,402 380,161 (17,759) Expenditures General government Personal services 305,410 319,357 13,947 224,432 247,097 22,665 Supplies 0 23,500 23,500 26,595 8,000 (18,595) Contractual 0 19,100 19,100 1,676 19,100 17,424 Other services and charges 95,379 48,800 (46,579) 55,717 42,000 (13,717) Administrative expenses 23,588 23,588 0 4,020 4,020 0 Capital outlay 215,607 195,000 (20,607) 60,703 53,000 (7,703) Cash reserve 0 111,265 111,265 0 114,232 114,232 Total expenditures 639,984 740,610 100,626 373,143 487,449 114,306 Excess (deficiency) of revenues over (under) expenditures 24,278 (108,997) 133,275 (10,741) (107,288) 96,547 Other financing sources Sale of assets 8,002 0 8,002 0 0 0 Excess (deficiency) of revenues and other sources over (under) expenditures 32,280 (108,997) 141,277 (10,741) (107,288) 96,547 Fund balances, January 1 111,312 108,997 2,315 122,053 107,288 14,765 Fund balances, December 31 $ 143,592 $ 0 $ 143,592 $ 111,312 $ 0 $ 111,312 106 City of Salina, Kansas EXPENDABLE TRUST, NON-EXPENDABLE TRUST AND AGENCY FUNDS COMBINING BALANCE SHEET December 31, 1997 (With comparative totals for December 31, 1996) Expendable Trust Non-Expendable Trust War Memorial Maintenance Citizenship Cemetery Mausoleum Tricentennial ASSETS Fund Trust Endowment Endowment Commission Cash and investments $ 38,563 $ 0 $ 0 $ 0 $ 0 Cash and investments - non-expendable trusts 0 15,194 175,074 21,884 3,415 Receivables Accounts 0 0 0 0 0 Interest 0 0 0 0 85 Total assets $ 38,563 $ 15,194 $ 175,074 $ 21,884 $ 3,500 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ 10 $ 0 $ 0 $ 0 $ 0 Deferred compensation benefits payable 0 0 0 0 0 Total liabilities 10 0 0 0 0 Fund balances Unreserved Undesignated 38,553 15,194 175,074 21,884 3,500 Total liabilities and fund balances $ 38,563 $ 15,194 $ 175,074 $ 21,884 $ 3,500 108 City of Salina, Kansas TRUST AND AGENCY FUNDS Trust funds are used to account for assets held by the government in a trustee capacity. Agency funds are used to account for assets held by the government as an agent for individuals, private organizations, other governments and/or other funds. War memorial maintenance expendable trust fund - To account for monies to be used for maintenance of the local war memorial. Citizenship nonexpendable trust fund - To account for donated funds, the interest on which is to be used to provide "Good Citizen" awards to deserving Salina citizens. Cemetery endowment nonexpendable trust fund - To account for amounts expended for perpetual care of the City cemetery. Interest earnings are used for cemetery maintenance. Mausoleum endowment nonexpendable trust fund - To account for amounts charged for perpetual care of the City mausoleum. Interest earnings are used for mausoleum maintenance. Tricentennial Commission nonexpendable trust fund - To account for donations to be used to celebrate the nation's Tricentennial in the year 2076. Special assessment escrow agency fund - To account for property owners' prepayment on outstanding special assessments. Traffic signal escrow agency fund - To account for assessments on certain businesses to be used for signalization of intersections benefiting those businesses. Fire insurance proceeds agency fund - To account for insurance proceeds received for severely damaged buildings. The insurance proceeds, plus interest, are returned to the property owners when the buildings are repaired or demolished. PEGS access agency fund - To account for revenues collected on behalf of the community access television system for public, educational and governmental programming. Payroll clearing agency fund - To account for interfund payroll receivables and payables for all City funds. Court bond and restitution agency fund - To account for bonds and restitution remitted to the court and awaiting court orders for distribution. Police investigation account agency fund - To account for monies held by the police department for use in investigations . 107 City of Salina, Kansas EXPENDABLE TRUST, NON-EXPENDABLE TRUST AND AGENCY FUNDS COMBINING BALANCE SHEET December 31, 1997 (With comparative totals for the fiscal year ended December 31, 1996) Schedule 20 Pa2e 2 Agency Total Police Police Investigation Reward ASSETS Account Fund 1997 1996 Cash and investments $ 1,741 $ 19,731 $ 514,210 $ 2,573,528 0 0 215,567 196,571 Receivables Accounts 0 0 48,288 0 Interest 0 0 85 0 Total assets $ 1,741 $ 19,731 $ 778,150 $ 2,770,099 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ 1,741 $ 19,731 $ 523,945 $ 471,685 Deferred compensation benefits payable 0 0 0 2,064,933 Total liabilities 1,741 19,731 523,945 2,536,618 Fund balances Unreserved Undesignated 0 0 254,205 233,481 Total liabilities and fund balances $ 1,741 $ 19,731 $ 778,150 $ 2,770,099 110 Schedule 20 Agency Special Traffic Fire Court Assessment Signal Insurance PEGS Payroll Bond and Escrow Escrow Proceeds Access Clearing Restitution $ 73,396 $ 5,560 $ 5,887 $ 232 $ 352,043 $ 17,057 0 0 0 0 0 0 0 0 0 0 48,288 0 0 0 0 0 0 0 $ 73,396 $ 5,560 $ 5,887 $ 232 $ 400,331 $ 17,057 $ 73,396 $ o 5,560 $ o 5,887 $ o 232 $ o 400,331 $ o 17,057 o 73,396 5,560 5,887 232 400,331 17,057 o o o o o o $ 73,396 $ 5,560 $ 5,887 $ 232 $ 400,331 $ 17,057 109 cont. City of Salina, Kansas NON-EXPENDABLE TRUST FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES For the fiscal year ended December 31, 1997 (With comparative totals for the fiscal year ended December 31, 1996) Citizenship Cemetery Trust Endowment Operating revenues Charges for services $ 0 $ 7,228 Operating expenses Other 0 0 Operating income 0 7,228 Nonoperating revenues Use of money and property 726 9,652 Net income 726 16,880 Fund balances, January 1 14,468 158,194 Fund balances, December 31 $ 15,194 $ 175,074 112 City of Salina, Kansas Schedule 21 WAR MEMORIAL MAINTENANCE EXPENDABLE TRUST FUND COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For the fiscal years ended December 31, 1997 and 1996 1997 1996 2,183 $ 1,433 0 3,219 2,183 4,652 540 314 1,643 4,338 36,910 32,572 38,553 $ 36,910 Revenues Interest Miscellaneous $ Total revenues Expenditures Parks and recreation Excess of revenues over expenditures Fund balances, January I Fund balances, December 31 $ III City of Salina, Kansas NONEXPENDABLE TRUST FUNDS COMBINING STATEMENT OF CASH FLOWS For the fiscal year ended December 31, 1997 (With comparative totals for the fiscal year ended December 31, 1996) Citizenship Cemetery Trust Endowment Cash flows from operating activities Cash received from customers $ 0 $ 7,228 Cash paid to suppliers 0 0 Net cash provided by operating activities 0 7,228 Cash flows from investing activities Interest received 726 9,652 Net increase in cash and cash equivalents 726 16,880 Cash and cash equivalents, January 1 14,468 158,194 Cash and cash equivalents, December 31 $ 15,194 $ 175,074 Reconciliation of operating income to net cash provided by operating activities Operating income $ 0 $ 7,228 114 Schedule 22 Total Mausoleum Tricentennial Endowment Commission 1997 1996 $ 0 $ 0 $ 7,228 $ 5,641 0 0 0 1,535 0 0 7,228 4,106 1,232 243 11,853 7,744 1,232 243 19,081 11,850 20,652 3,257 196,571 184,721 $ 21,884 $ 3,500 $ 215,652 $ 196,571 113 City of Salina, Kansas AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES For the fiscal year ended December 31, 1997 Balance January 1, 1997 Special Assessment Escrow ASSETS Cash and investments $ 150,011 $ LIABILITIES Accounts payable $ 150,011 $ Traffic Signal Escrow ASSETS Cash and investments $ 5,247 $ LIABILITIES Accounts payable $ 5,247 $ Fire Insurance Proceeds ASSETS Cash and investments $ 10,131 $ LIABILITIES Accounts payable $ 10,131 $ Additions 49,011 $ 49,011 $ 313 $ 313 $ 5,421 $ 5,421 $ 116 Deductions 125,626 $ 125,626 $ o $ o $ 9,665 $ 9,665 $ Schedule 24 Balance December 31, 1997 73,396 73,396 5,560 5,560 5,887 5,887 Schedule 23 Total Mausoleum Tricentennial Endowment Commission 1997 1996 $ 0 $ 0 $ 7,228 $ 5,641 0 0 0 (1,535) 0 0 7,228 4,106 1,232 158 11,768 7,973 1,232 158 18,996 12,079 20,652 3,257 196,571 184,492 $ 21,884 $ 3,415 $ 215,567 $ 196,571 $ o $ o $ 7,228 $ 4,106 115 City of Salina, Kansas AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES For the fiscal year ended December 31, 1997 Schedule 24 Pa2e 3 Balance January 1, 1997 Deductions Balance December 31, 1997 Additions Police Investigation Account ASSETS Cash and investments $ 1,741 $ o $ o $ 1,741 LIABILITIES Accounts payable $ 1,741 $ o $ o $ 1,741 Police Reward Fund ASSETS Cash and investments $ 11,494 $ 8,237 $ o $ 19,731 LIABILITIES Accounts payable $ 11,494 $ 8,237 $ o $ 19,731 Total - Agency Funds ASSETS Cash and investments $ 483,134 $ 18,609,340 $ 18,616,827 $ 475,647 Accounts receivable 0 48,288 0 48,288 Total assets $ 483,134 $ 18,657,628 $ 18,616,827 $ 523,935 LIABILITIES Accounts payable $ 483,134 $ 18,657,628 $ 18,616,827 $ 523,935 118 City of Salina, Kansas Schedule 24 Pa2e 2 AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES For the fiscal year ended December 31, 1997 Balance January 1, 1997 Additions Deductions Balance December 31, 1997 PEGS Access ASSETS 133,625 $ 232 Cash and investments $ o $ 133,857 $ LIABILITIES Accounts payable $ o $ 133,625 $ 232 133,857 $ Payroll Clearing ASSETS Cash and investments $ 278,063 $ 18,265,321 $ 18,191,341 $ 352,043 Accounts receivable 0 48,288 0 48,288 Total assets $ 278,063 $ 18,313,609 $ 18,191,341 $ 400,331 LIABILITIES Accounts payable $ 278,063 $ 18,313,609 $ 18,191,341 $ 400,331 Court Bond and Restitution ASSETS Cash and investments $ 26,447 $ 147,180 $ 156,570 $ 17,057 LIABILITIES Accounts payable $ 26,447 $ 147,180 $ 156,570 $ 17,057 117 This page left blank intentionally. City of Salina, Kansas GENERAL FIXED ASSETS 119 City of Salina, Kansas SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY December 31, 1997 Function and Activity Land Buildings General government Manager $ 0 $ 0 Finance 0 0 Personnel 0 0 General services 19,302 101,612 Human relations 0 0 Bicentennial Center 0 5,298,330 Other 1,885,649 660,190 Total general government 1,904,951 6,060,132 Public safety Police 600 445,363 Municipal court 0 0 Fire 63,302 1,220,623 Inspection 0 0 Total public safety 63,902 1,665,986 Highways and streets Engineering 0 0 Maintenance 10,470 155,211 Planning 0 0 Total highways and streets 10,470 155,211 Culture and recreation 609,870 2,906,909 Total general fixed assets $ 2,589,193 $ 10,788,238 121 City of Salina, Kansas Schedule 25 COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE December 31, 1997 and 1996 1997 1996 General fixed assets Land $ 2,589,193 $ 2,589,193 Buildings 10,788,238 10,788,238 Improvements other than buildings 1,068,238 985,482 Machinery and equipment 9,217,377 8,627,812 Total general fixed assets $ 23,663,046 $ 22,990,725 Investment in general fixed assets by source General fund $ 22,387,424 $ 21,920,941 Special revenue funds 601,107 395,269 Capital projects funds 656,046 656,046 Donations 18,469 18,469 Total investment in general fixed assets $ 23,663,046 $ 22,990,725 120 City of Salina, Kansas SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY For the fiscal year ended December 31, 1997 Function and Activity General Fixed Assets January 1, 1997 Additions $ 81,719 $ 26,164 171,906 15,905 18,751 495 592,991 104,361 19,113 445 7,072,256 61,414 2,595,255 32,269 10,552,021 241,053 General government Manager Finance Personnel General services Human relations Bi-Centennial center Other Total general government Public safety Police Municipal court Fire Inspection Total public safety 1,688,755 146,836 38,267 11,380 3,834,809 58,025 44,096 27,936 5,605,927 244,177 Highways and streets Engineering Maintenance Planning Total general fixed assets 99,263 21,643 1,518,057 125,264 101,971 19,449 1,719,291 166,356 5,113,515 160,665 $ 22,990,725 $ 812,251 Total highways and streets Culture and recreation 123 Schedule 26 Improvements Other Than Machinery Total Total Buildings and Equipment 1997 1996 $ 0 $ 107,883 $ 107,883 $ 81,719 0 187,811 187,811 171,906 0 19,246 19,246 18,751 260,616 315,863 697,393 592,991 0 19,558 19,558 19,113 85,348 1,749,992 7,133,670 7,072,256 0 81,685 2,627,524 2,595,285 345,964 2,482,038 10,793,085 10,552,021 53,820 1,268,342 1,768,125 1,688,755 0 49,141 49,141 38,267 0 2,608,059 3,891,984 3,834,809 0 72,538 72,538 44,096 53,820 3,998,080 5,781,788 5,605,927 0 120,906 120,906 99,263 150,647 1,262,409 1,578,737 1,518,057 0 107,952 107,952 101,971 150,647 1,491,267 1,807,595 1,719,291 517,807 1,245,992 5,280,578 5,113,486 $ 1,068,238 $ 9,217,377 $ 23,663,046 $ 22,990,725 122 This page left blank intentionally. Schedule 27 General Fixed Assets Interfund December 31, Deletions Transfers 1997 $ 0 $ 0 $ 107,883 0 0 187,811 0 0 19,246 359 400 697,393 0 0 19,558 0 0 7,133,670 0 0 2,627,524 359 400 10,793,085 67,466 0 1,768,125 0 (506) 49,141 0 (850) 3,891,984 0 506 72,538 67,466 (850) 5,781,788 0 0 120,906 27,411 (37,173) 1,578,737 13,468 0 107,952 40,879 (37,173) 1,807,595 21,875 28,273 5,280,578 $ 130,579 $ (9,350) $ 23,663,046 124 This page left blank intentionally. STATISTICAL SECTION N C]) :0 III I- C]) o '- ::> o ~~ .0 '" ~ ~ .~ ~ ~ ~C])~ (/) ii; ~ oo:::u:: ~c c G ~ ~ c~ ~U) o III c.?...J ~ (j; c C]) c.? 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'" U <<l ~ c <<l ~-; ~ 5 [ .., * E..Q * e", E <<l '" 0 > E u~ ~ J: <<l <> .~ * IIlM :c~ <<l o 10 N J!l en en .~ c: 5 ]~~B~ Q) n.. a. s: .5 .~ ~ .~ ~ al ?C) "l=' i5 C;;u- u)lU:Et5~ if 6 I- "C ~ "'CIV a.a. -gij~~~ ;.l.f:~i~ ~o"i:: "'C > O:!El5!E IV l!!~~al~~ ]~~~i! ~~~~,g"E -O:.3,ElOIV ~~'g'g~t IV IV IV IV-:;.<:l ~!il$~~~ "'C >- cD It) :t:S "'0 .2l5Ema:::ii g "C 0 ~ Q) Lt) _a.enIVO:::m Sgt?:S~~ City of Salina Property Tax Levies and Collections Table 4 Last 10 Fiscal Years Percent of Delinquent Ratio ofT otal Fiscal CurrentT ax Current Taxes Tax Total Tax Tax Collections Year Total Tax Levy Collections Collected Collections Collections to Tax Levy 1988 4,163,314 4,086,792 98.2% 65,960 4,152,752 99.7% 1989 4,269,464 4,110,719 96.3% 101,102 4,211,821 98.6% 1990 4,693,317 4,394,623 93.6% 104,504 4,499,127 95.9% 1991 4,502,345 4,317,229 95.9% 5,744 4,322,973 96.0% 1992 4,783,117 4,491,134 93.9% 83,939 4,575,073 95.7% 1993 4,882,255 4,696,707 96.2% 194,448 4,891,155 100.2% 1994. 4,858,543 4,673,374 96.2% 227,331 4,900,705 100.9% 1995 5,230,834 5,192,453 99.3% 97,615 5,290,068 101.1% 1996 5,534,222 5,411,474 97.8% 107,250 5,518,724 99.7% 1997 5,772,414 5,689,316 98.6% 133,171 5,822,487 100.9% Percent of Property Taxes Collected 102.0% 98.0% I 100.0% 960% 94.0% 92.0% 90.0% 88.0% 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 . Percent of Current Taxes Collected - -0- - Ratio of Total Tax Collections to Tax Levy I 128 City of Salina General Government Tax Revenues by Source (1) Table 3 Last Seven Fiscal Years (2) Fiscal Transient Year Property Taxes Sales Tax Franchise Tax Guest Tax Total 1991 5,296,226 5,916,537 1,509,053 297,415 13,019,231 1992 5,607,496 6.287,513 1,537,171 465,145 13,897,325 1993 5,818,511 7.480,113 1,680,385 500,550 15,479,559 1994 6,065,013 7,769,917 1,756,528 562,446 16,153,904 1995 6,502,855 8,302,428 1,739.323 594,170 17,138,776 1996 6,690,485 8,446,809 1,836,694 583,506 17,557,494 1997 - 6,945,943 8,948,067 1,929,622 592,715 18,416,347 Tax Revenues by Source 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 Year 1997 (1) Includes General, special revenue and Debt Service Funds (2) Prior Year Expenditures are not available on a GAAP basis 127 City of Salina Principal Taxpayers Table 6 1997 Valuations 1996 Assessed % of Total Taxpayer Type of Business Valuation Valuation Western Resources Electric and Gas 7,353,881 2.64% Schwan's Sales Pizza Manufacturing 6,895,768 2.47% Southwestern Bell Telephone Utility 5,354,355 1.92% Warmack, Salina Partnership Retail Shopping Mall 4,891,980 1.75% Wal-Mart Stores, Inc. Discount Retail Stores 2,350,357 0.84% Sunset Plaze, Inc Retail Development 2,093,751 0.75% Omaha Hotellnc Hotel 1,384,633 0.50% Dayton Hudson Corp Target Store 1,114,513 0.40% fy1alan Mortgagor, Inc K-Mart Store 870,222 0.31% Union Pacific Railroad Railroad 802,642 0.29% Combined Valuation of the Ten Largest Taxpayors 33,112,102 Percent of Total City Assessed Valuation 11.87% 130 ~ Q) a.. e a... a Q) ::J ro ~ > ~ C1Jro>- .~ ::J ro ~~~ o-gU:: .2:'1lia=5 GEl- "'t5 (j) Ul.5 -0 c: CIJ -0 Q) en en Q) en en <( ~~~~~~~~~~ Q)NNcricricrir--:r--:cricricri ::J ~ ~ ...-...- ro > -g~ en CIJ ~ E en = en en <(Ul(j) 'O.9-t: o Q) CIJ 1li.2::2 a::~ ro Q) o ::J I-ro -0> Q)- - Q) ~-t: __ CIJ en::2 Ul 1'-1.0 (X) m (X) (X) 001.0 1.0 NOc.o..-c.oN~Oc.o 1.01'-1.00(")1.01'-1'-(") ,...: ..- ~- 1.0- 1.0- ri 0- N- ~- ~"-~I'-Nm(")om (,,)~OOI.00~OOI.OI'- ~- g- ~- ~- :g- ~- :!- ~ LO- ...-.....- 0 0_"'-"'- M_..q l{) ...-...-...-...-...-...-...-...- -0 Q) en en Q) Q) ~.2 ~~ ro o I- mmI.OOO..-OONOO g~fR~;:~~:8 0- m- ~- N 00- m- 1.0- (")- mc.o (")I'-c.om mc.o NNooo(")~moo (")- 00- 1.0- ~ m- N (")- 1.0- ~~oommoN~ ...-...-..-...-.......NNN O~~I.O..-C'Ol.Oc.o (")c.oc.ol.Om..-c.ol'- Q)I'-(,,)(,,) 001.0 001'-1'- C3 c.o-l'--c.o-I.O-(")-ml.O-..- ~~~~LOg:8g~ > OO-O-I.O-~-I.O-I'--"":N ....N(")(")(")(")(")~~ o o ::2 Q) ::J ro > -0 Q) en en Q) en en <( mOI.ON"-NOO~ -g~lri~~;:g~~~ en ~- 1.0- ~- 00- l!"i m- N- 00- ~~ie~~;:g~~~ ~ 0- 0- ...- ...- ...-- N- ~- N <:(...-...-..........-..........-...-..- Q) 1li U5 ~g~~~~~~~ Q) ~_ ...-_ 1.0_ ...-_ 1'-_ 1'-_ 1'-_ 1.0_ O"NI.O~~...-l'-ooO ol.O..-I.O...-I.O~l'-m 0: 1.0_ N_ ~_ (")_ 1'-_ ~_ 1.0_ 00_ roc;:;~~~~gjgj~ c: o ~ Q) a... oo..-mc.ol'-..-(,,) c..or-...-t-.<.o...-('I")N mo("),,,-OOI'-(")m $ g ~- ~- ~- ~- Pi ~- ~- ~OV('l")tX)Nc.oNV Ul N ..-- 1.0- ~ 1.0- m- 1.0- 1.0- rol'-I'-~~~~~~ Q) a:: ro Q) 0 >-~~~a;~ en a> -- en 0') ~...-......;:::-..-...- en u:: (") m ~ 1.0 1.0 I'- mmmmm ...-mmmm ~...-...-....... ....... 1.0 N ~ ~- m 1.0- ..- 1'-_ ..- m o ~ ~ o 00- 1.0 N (") 1.0 m m- oo 1.0 0- (X) N ~ m I'- 1.0- (X) I'- (")- ~ 1.0 1.0 1.0 ~- m m (")- ~ o I'- m 00- o I'- N- m 1.0 1.0 ~- 1.0 m ri ..- (X) ~ ~ ~- 1.0 1.0- N 1.0 m m m- I'- N 1.0- N m I'- (X) ,...: m m 1.0- I'- ..- (") ~ (X) 0- ~ 1.0- m ...- Q) i E66~(l) > -0 Q) en ~ 166~ tI) tI) <( l;!l;!l;!l;!l;!l;!l;!l;!l;!l;!l;! l;!- !;l' !;l' !;l' !;l' l;!- l;!- l;!- l;!- l;!- !;l' ~~~~~~~f~~f~-~~- L66~ 966~ C;66~ ~66~ ~66~ 066~ (~) 69{H 996~ 5 Q)-o > Q) ~ g :t:-O Q) ~ 5- -g- = l;::: o .(i; CIJ tI) ~.!!:! 15 ~ ]!~ j'.9 a 3~ CI) Q) ~ ~ CIJ a.. CI)'O CIJ CI) ~~ 8-c: ~~ CIJ Q) c: 0 ~-g Q) CI) 0..::J -g ~ C1J-o _ c: CIJ CIJ ~ Q) 'O~ c: > Om 15-t: .g CIJ '(i; E ~-g ~~ -0= c: CI) CIJ Q) Cii _~ -ffi .9 Q.Ci; o..CI) CIJ 0 ~o $~ JE Q) ~~ o a.. ~-g _ CI) a=5 'i!! ~ 8: -o~c: c: .... 0 ::JC:= CI) 0 CIJ ~roS lij :!2 E ~l6'2 .~ -;;; 0 CI):C~ ~I--o romCIJ a.. (X) E '0 m _e .c ::J E ~ ..---g 2:'1li CIJ c: ::J .- c: E CIJ -- :s.-,(i) -0 c: CIJ c: o = CIJ o l;::: '(i; CI) CIJ C3 ~ Q) ~ a.. en c: ~ en CIJ 0 l6'= .... ~ C:"E o Q) 2 E = CI) CI) CI) c: Q) o CI) o ~ CI)-o CIJ Q) CI) CI) c: CIJ CIJ ~ ~ ~ ~-o :5 -g .~ Q) CI) E c: CIJ 0 .915 C:.g ~ .~ CI) CIJ 8.- e.6 o..~ C1J~ -0 Q) ~ a.. e e a.. a.. 0..;= CIJ Q) ~ c: CI) Q) c: Q) ~~ 'O-g $115 C1J= -.0 Cl)s Q) CI) ~ Q) ~c .- Q) ~ E ~-g o Q) >- E N CIJ ~ .~ ..- ~ ril- CD en .0 Q) E- Q) ~ ~c Z E c: ~ o Q) CI) ~~ m N ...- 1,200,000 1,000,000 800,000 600,000 400,000 200,000 Fiscal Year 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 City of Salina Special Assesment Billings and Collections Last Ten Fiscal Years Special Assessment Billings 1,021,973 927,768 647,655 807,452 721,334 694.497 697,015 919,364 1,139,672 985,885 Special Assessment Collections 922,020 911,365 837,604 656,104 808,886 873,850 793,190 883,807 1,131,852 1,048,863 Table 8 Ratio of Total Special Assessments Collections to Total Assessments Levied 0.90 0.98 1.29 0.81 1.12 1.26 1.14 0.96 0.99 1.06 Special Assessment Billings and Collections 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1m Special Assessment Billings m Special Assessment Collections I 1. Includes prepayments and delinquent collections. 132 r- (]) ::0 III I- <J) c (]) E ~ ~ :g ~ lB .~~~~ ~ ~ .~ ~ o ';. ~ IT: .?;-1::-=:c .- (]) ~ ~ u8-o__ o::-c:g c ....J III "0 ~ Ci 19 0 I- I~ 1:S Q; Q; :5 :5 0 0 0 CI) (]) ~ C> ro ~ '0 ~ I- ~ (]) ~ 0 In .~ (]) C> (]) C> ('t) CI) ~ 0 ~ ~ CI) ~ 0 C> C (]) = C> ~ III (])= 8-:2 .?;- c (]) :J 0 C> U ~ ro ~ '0 -E I- (]) :J 0 0 .~ (]) u (]) C> (]) CI) ~ .~ 15 ~ ro CI) (]) 0 C> C (]) = C> ~ III (])= 8-:2 .?;- (]) C:3 C> ro ~ '0 ~ I- III (]) .~ 0 ro .~ (]) CI) (]) C> '0 CI) ~ I~ ~ ~ u 0 C> C (]) = C> ~ co 2i= 0:2 "- III (]) ro>- ~1i5 u:.g> :J e <D N C> C> eo <D en <D en eo N ..- eo ~ ('t) C> N ~ u:; C> en <D ..- """": ~ r- ~ N en ~ c N N C;; ui a> N e-; ui 0 ..- 0 In <D ('t) ('t) C> C> C> C> en = ..- ..- ..- ..- ..- ..- ..- ..- 0 i5 <J) r- ('t) en eo ~ r- ..- In C> ('t) '1:: eo In en ex; r- In N <D ~ ('t) .2- ~ <D In C> ~ In N ~ (]) cD cD ui ui cD <D cri cri cri cri <J) " (]) m :5 m >- ~ .0 en en N N N N In ..- N en "'Cl r- ('t) en r- r- ~ eo C> C;; N ~ r- <D ~ ~ ('t) <D ~ In cri ui <D a> e-; e-; C> N N a> (]) ~ > eo en r- r- eo ~ ~ ~ ~ ('t) 0 m 0 <J) III <D N r- ~ en ..- N ~ ~ r- ~ In ~ N en N eo ('t) ~ ~ ('t) III r- In ~ C> C> In ('t) C> en <D -.:i ui -.:i e-; e-; e-; e-; e-; N N II) ~ (]) 8l :5 en ~ c C'Cl .0 en ::J C C .2 ~ ('t) r- In eo ('t) ..- ('t) r- eo N C'Cl ::0 (]) N en <D r- ~ C> In In <D en ~ -.:- :::: C> C> C> ('t) ('t) ('t) ('t) ~ ('t) ~ m :J i5 -.:i 0 cD 0 0 ,...: a> C'Cl m Cl.. N en <D eo en r- r- eo ~ ('t) ('t) ('t) ('t) C III ID C; .~ Co ro <J) en CI) (]) C> C> ~ N ~ eo N ..- In ..- (") ro C> <D r- N <D ..- <D r- N ~ ... m ID 0::: ~ ~ ~ ..- ~ ~ In ~ en ..- 0 m :5 e-; 0 0 -.:i N cri .... ~ ~ ..- en ..- <D "'Cl N N ..- N N N N N N ..- CP c I- 7ii III ..- ro ('t) 0::: N z:. '0 >0- m "I:: I- m 0 In > ~ .s:::. 0 eo CP :5 O".! -l <( C> ~ 1:: 0 ~ m 0 CI) e- ~ m <( CI 0 C III C> C> ~ N ~ eo N C> ::;: Q. "~ r-- C> <D r- N <D ..- <D r- -.;f" ro C> ~ -.;f" C> ..- ~ ~ In In en ..- Q. CI) ('t) ..- e-; a> 0 C> ..- -.:i cD 0 cri C'Cl g ID 0 N N N N N N N N ..- ;:: m :5 CI) CP ~ > <J)- <D- O III C> C> In eo eo en ..... en N In <J) C> <D <D ..... N N ~ <D C> ~ C> C ('t) ('t) ('f) C> ~ eo -.;f" r- en r- m III 0 cD 0 a> a> a> cri cD ui co ::.:: <D C> m CI) ('f) ('f) ('f) ('t) N N N N N N '0 ~ 2 >- III .0 r- ('t) N ~ In ..... -.;f" C> ('t) Ci5 ~ -.;f" In r- r- <D ('f) In In ('t) ..- co ~ ('f) ~ <D ~ ~ In ..- ..... C> co ID ID <D ..- r- e-; r- r- cD 0 ..- ui m :5 > ..... ..... 0 <J) 0 ID .!1 -c 0 0 0 0 g :J III 0 ~ 0 8 g (3 .~ " co II) (") N ~ ('t) r- ('f) r- ~ ~ C> In N N ~ ~ ~ ~ ~ ~ .~ ro u:; C> -.;f" In <D ..... ..... In ..- en c CI) C> <D ('t) r- ..- en In eo <D a> ui N cD N N N cri ui 0 E 15 :J N ('t) N N N N N ..- N 0 C 0 0 "i- t eo en C> ..... N ('f) ~ In <D r- ID 0 eo eo en en en en en en en en .s:::. 0- en en en en en en en en en en 9 ..- ..- ..... ..... ..... ..... ..... ..... ..- ..- ro ID E .s:::. <J) I- <( - ~ City of Salina Ratio of Net General Obligation Bonded Debt Table 10 To Assessed Value and Net General Obligation Bonded Debt Per Capita Less Debt Ratio of Net Net Bonded Fiscal Population Assessed Value Gross Bonded Service Fund Net Bonded Bonded Debt to Debt Per Year (1) (2) Debt (3) (4) Debt Assessed Value Capita 1988 41,843 143,290,309 6,502,986 351,958 6,151,028 4.29 147.00 1989 41,843 148,269,379 6,323,473 237,897 6,085,576 4.10 145.44 1990 42,303 185,034,595 5,801,642 344,280 5,457,362 2.95 129.01 1991 42,303 194,872,458 8,004,443 304,252 7,700,191 3.95 182.Q2 1992 42,303 199,368,711 8,795,864 333,505 8,462,359 4.24 200.04 1993 42,303 202,499,968 9,478,791 539,887 8,938,904 4.41 211.31 1994 42,303 223,996,482 7,854,994 797,083 7,057,911 3.15 166.84 1995 (1)" 44,129 246,863,568 8,465,000 1,024,020 7,440,980 3.01 168.62 1996 (1) 44,841 258,044,091 10,211,899 1,052,539 9,159,360 3.55 204.26 1997 45,000 280,589,963 10,184,658 867,759 9,316,899 3.32 207.04 Per Capita General Obligation Debt 250.00 50.00 --- 200.00 150.00 100.00 0.00 1988 1989 1990 1991 1992 1993 1994 1995(1) 1996 (1) 1997 1. Population estimates are based on the 1980 and 1990 Census, except 1995 through 1997 are staff estimates based on the 7/01/94 Census Bureau estimate. 2. From Table 5. 3. Outstanding Debt amounts reflect portion of the outstanding debt for which general taxes will be required. This excludes revenue bonds, GO obligations for which other revenue has been pledged, and obligations for which special assessments will be levied. 4. Amount available for repayment of General Obligation Bonds. 134 City of Salina Computation of Legal Debt Margin December 31, 1997 Table 9 Assessed Valuation (1) 280,589,963 Legal Debt Margin: Debt limit: 30% of Assessed Valuation (2) Debt Applicable to limitation: Total Bonded Debt Less: Revenue Bonds Fund Balance Designated for Debt Service Total Debt Applicable to limitation 84,176,989 56,008,469 33,875,000 867,759 21,265,710 Legal Debt Margin 62,911,279 1. Assessed valuation for the purposes of calculating the debt limitation includes the valuation attributable to Motor Vehicles. 133 City of Salina Ratio of Annual Debt Service Expenditures Table 11 For General Obligation Bonded Debt (1) ToT otal General General Govemmental Expenditures Last ten Fiscal Years Total General Ratio of Debt Service to Govemmental General Govemmental Fiscal Year Principal Interest (2) Total Debt Service Expenditiures (3) Expenditures (3) 1988 991,258 488,387 1,479,645 1989 972,202 442,575 1,414,777 1990 967,434 431,955 1,399,389 1991 949,898 398,197 1,348,095 21,708,077 6.21% 1992 1,037,112 541,560 1,578,672 22,700,293 6.95% 1993 1,556,156 497,961 2,054,117 21,919,969 9.37% 1994 1,459,185 368,250 1,827,435 24,028,391 7.61% 1995 1,530,037 386,943 1,916,980 26,228,037 7.31% 1996 1,229,378 305,808 1,535,186 27,541,282 5.57% 1997 2,549,984 443,461 2,993,445 30,036,763 9.97% Ratio of General Debt Service to General Government Expenditures 10.00% 1.00% 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 0.00% 1991 1992 1993 1994 1995 1996 1997 (1) Excludes special assessment debt with govemment commitment. (2) Excludes bond issuance and other costs. (3) Includes general, special revenue, and debt service funds. GAAP basis information not available prior to 1991. 135 City of Salina Computation of Direct and Overlapping Bonded Debt General Obligation Bonds December 31, 1997 Table 12 Net General Obligation Percentage Amount Bonded Debt Applicable to City Applicable to the Jurrisdiction Outstanding of Salina City of Salina Direct City of Salina 9,159,360 100% 9,159,360 Overlapping: Salina Airport Authority (1) 4,725,000 100% 4,725,000 Saline County 1,545,000 73% 1,133,770 USD 305 (2) 2,935,000 92% 2,698,146 Total 18,364,360 17,716,276 1. Salina airport Authority Debt is as of February 1, 1998. 2. USD 305 Debt is as of June 30, 1997 Overlapping Debt, City of Salina USD 305 (2) 15% Saline County 6% City of Salina 52% Salina Airport Authority (1) 27% 136 City of Salina Revenue Bond Coverage Water and Sewer Fund Last Ten Rscal Years Table 13 Debt Service Requirements Net Revenue Fiscal Operatina Operating Available for Debt Year Revenues ( 1 ) Expenses(2) Service Principal Interest Total Coverage 1988 5,488,165 3,420,799 2,067,366 300,000 352,119 652,119 3.17 1989 6,300,264 3,759,534 2,540,730 390,000 542,751 932,751 2.72 1990 6,158,140 4,002,486 2,155,654 275,000 519,009 794,009 2.71 1991 6,774,391 4,270,897 2,503,494 220,000 542,944 762,944 3.28 1992 7,131,392 4,371,446 2,759,946 265,000 517,915 782,915 3.53 1993 8,171,545 4,350,228 3,821,317 670,000 1,681,527 2,351,527 1.63 1994 9,402,506 5,266,865 4,135,641 805,000 1,614,122 2,419,122 1.71 1995 9,993,020 5,879,776 4,113,244 880,000 1,588,797 2,468,797 1.67 1996 10,506,646 7,147,082 3,359,564 955,000 1,527,953 2,482,953 1.35 1997 10,442,409 6,714,541 3,727,868 1,015,000 1,483,493 2,498,493 1.49 3.75 ::;:;:;:::;:::;:;:;:::;:;:;:::;:;:;:::;:::::::::::;:::;:::::::;:;:::"..... 3.50 3.25 3.00 2.75 2.50 2.25 2.00 1.75 1.50 1.25 1.00 0.75 0.50 0.25 0.00 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 (1) Excludes interest income (2) Excludes Depreciation 137 Fiscal Year 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 850 750 City of Salina Property Value and Construction Last Ten Fiscal Years Total Property Value (Thousands) 1,160,412 1,037,898 1,026,845 1,075,575 1,105,026 1,175,494 1,314,831 1,482,502 1,551,794 1,716,987 Permits Issued 457 490 497 562 598 628 694 759 832 725 Estimated Value of Permits Issued 15,426,410 18,851,000 36,469,096 22,665,785 25,283,947 36,411,632 38,667,261 34,156,955 55,369,816 41,528,712 Number and Value of Building Permits Issued 61,000,000 51,000,000 650 41,000,000 J!! 'E ~ iD E a... iD - 0 a... CD '0 550 31,000,000 -ii iD > .0 "U E CD => 1U z E :;; 450 21,000,000 w 350 250 1988 1989 1990 1991 I ~ Permits Issued -+- Estimated Value of Permits Issued I 1992 1993 1994 1995 1996 1997 138 11,000,000 1,000,000 Table 14 SPECIAL REPORTS SECTION This page left blank intentionally. 234 South Main P.O. Box 1020 Ottawa, Kansas 66067 (785) 242-3170 ~ Agl~L~g~~E~~r!n;,HARTERED W. Keith Gaeddert Lucille L. Hinderliter Raymond E. Meyer, Jr. REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Mayor and City Council 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, 1997, and have issued our report thereon dated June 19, 1998. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether the City's general purpose financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statements amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to reported under Government Auditing Standards. Internal Control Over Financial Reportinf!. In planning and performing our audit, we considered the City's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over fmancial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operations that we consider to be material weaknesses. This report is intended for the information of the City Council, management, and the Kansas Department of Administration, Division of Accounts and Reports. However, this report is a matter of public record and its distribution is not limited. Ilr w sLJ ~ C;J.,t;:J June 19, 1998 140 This page left blank intentionally.