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7.1 Receive and review the 2019 Audit Report from Gordon CPA300 West AshStreet P.O. Box 736 Salina, Kansas 67402-0736 For the Fiscal Year Ended December 31, 2019 COMPREHENSIVE ANNUAL FINANCIAL REPORT COMPREHENSIVE ANNUAL FINANCIAL REPORT OF CITY OF SALINA, KANSAS 300 West Ash Street P.O. Box 736 Salina, Kansas 67402-0736 For the Fiscal Year Ended December 31, 2019 Prepared by Department of Finance and Administration of City of Salina, Kansas CITY OF SALINA, KANSAS Comprehensive Annual Financial Report For the year ended December 31, 2019 TABLE OF CONTENTS Page INTRODUCTORY SECTION Letter of Transmittali -iv Organizational Chartv List of Principal Officialsvi FINANCIAL SECTION 3)C(%()C()* 8@C#*+>P$ B(%+>*F NE Management's Discussion and Analysis4-15 BasicFinancial Statements: Government-wide Financial Statements Statement of Net Position16 Statement of Activities17 Fund Financial Statements Balance Sheet -Governmental Funds18 Reconciliation of the Total Governmental Fund Balance to Net Positionof Governmental Activities19 Statement of Revenues, Expenditures, and Changes in Fund Balance -Governmental Funds20 Reconciliation of the Governmental Funds Statement of Revenues,Expenditures and Changes in Fund Balance with the Government-Wide Statement of Activities21 Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual (Non-GAAP Basis) General Fund22 Tourism and Convention Fund23 Special Gas Fund24 Sales Tax Capital Fund25 Statement of Net Position-Proprietary Funds26 Statement of Revenues, Expenses, and Changes in Net Position-Proprietary Funds27 Statement of Cash Flows -Proprietary Funds28-29 Statement of Assetsand Liabilities-Agency Funds30 CITY OF SALINA, KANSAS Comprehensive Annual Financial Report For the year ended December 31, 2019 TABLE OF CONTENTS -CONTINUED Page FINANCIAL SECTION -CONTINUED Notes to the Basic Financial Statements31-70 Required Supplementary Information Other Postemployment Benefits 7A"(C@,( +. 2"&)'($ #) *"( 2#*-P$ !+*&, 5LKJ 9#&/#,#*- &)C B(,&*(C B&*#+$YF Other Postemployment Benefits -KPERS 7A"(C@,( +. 2"&)'($ #) *"( 2#*-P$ !+*&, 5LKJ 9#&/#,#*- &)C B(,&*(C B&*#+$YG KPERS Pension Plan 7A"(C@,( +. 2#*-P$ L>+%+>*#+)&*( 7"&>( +. *"( :(* L()$#+) 9#&/#,#*-YE Schedule of City Contributions73 Combining Statements and IndividualFund Schedules Combining Statements -Nonmajor Funds Fund Descriptions74-75 Combining Balance Sheet -Nonmajor Governmental Funds76 Combining Statement of Revenues, Expenditures and Changes in Fund Balances -Nonmajor Governmental Funds77 Combining Balance Sheet -Nonmajor Special Revenue Funds78-79 Combining Statement of Revenues, Expenditures and Changes in Fund Balances -Nonmajor Special Revenue Funds80-81 Combining Balance Sheet -Nonmajor Permanent Funds82 Combining Statement of Revenues, Expenditures and Changes in Fund Balances -Nonmajor Permanent Funds83 Individual Fund Schedules of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual (Non-GAAP Basis): Bicentennial CenterFund84 Business Improvement DistrictFund85 Neighborhood ParkFund86 Special Parks and Recreation Fund87 Special Alcohol Fund88 Sales Tax Economic Development Fund89 Arts & Humanities Fund90 Debt Service Fund91 Solid Waste Disposal Fund92 Water and Sewer Fund93 Sanitation Fund94 Golf Course Fund95 \\+>0(>$P 2+=%()$&*#+) B($(>?(6@)C96 Health Insurance Fund97 Central Garage Fund98 CITY OF SALINA, KANSAS Comprehensive Annual Financial Report For the year ended December 31, 2019 TABLE OF CONTENTS -CONTINUED Page FINANCIAL SECTION -CONTINUED Internal Service Fund Descriptions99 Combining Statement of Net Position-Internal Service Funds100 Combining Statement of Revenues, Expenses, and Changes in Net Position-Internal Service Funds101 Combining Statement of Cash Flows -Internal Service Funds102-103 Fiduciary Fund Descriptions -Agency Funds104 Combining Balance Sheet -Agency Funds105 Combining Statement of Changes in Assets and Liabilities -AgencyFunds106 Schedule STATISTICAL SECTION Net Positionby Component-Last TenFiscal Years 1107 Changes in Net Position-Last TenFiscal Years 2108 Fund Balances, Governmental Fund-Last TenFiscal Years 3109 Changes in Fund Balances, Governmental Funds-Last TenFiscal Years 4110 Tax Revenuesby Source, Governmental Funds-Last TenFiscal Years 5111 8$$($$(C &)C K$*#=&*(C 8A*@&, c&,@( +. !&\[&/,( L>+%(>*- d9&$* !() 6#$A&, 4(&>$ XFFG D#>(A* &)C 5?(>,&%%#)' L>+%(>*- !&\[ B&*($ d9&$* !() 6#$A&, 4(&>$ YFFE Principal Property Taxpayers 8114 Property Tax Levies and Distributions 9115 Direct Sales Rate by Taxing Entity 10116 Water Sales by Class of Customer 11117 Ratio of Outstanding Debt by Type 12118 Ratio of Net General Bonded Debt Outstanding 13119 Direct and Overlapping Governmental Activities Debt 14120 Legal Debt Margin 15121 Pledged Revenue Coverage 16122 Demographic and Economic Statistics 17123 Principal Employers 18124 INTRODUCTORY SECTION DEPARTMENT OF FINANCE TELEPHONE (785) 309-5735 AND ADMINISTRATIONFAX (785) 309-5738 300 West Ash, P.O. Box 736TDD (785) 309-5747 Salina, Kansas 67402-0736Website: www.salina-ks.gov June 30, 2020 To the Citizens of the City of Salina, Kansas: The Comprehensive Annual Financial Report of the City of Salina, Kansas (the "City") for the year ended !;Z;WL;Y 4\]? K5\]6? H< >;Y;LV <SLWH==;\\@ &>; ,H=V^< *HIFIZ; !;XFY=W;I= XY;XFY;\\ =>; Y;XBY=@%;<XBI<HLHGH=V for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of all various funds and account groups of the City.We believe that all disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included. Report Format The Comprehensive Annual Financial Report is presented in three sections: Introductory, Financial and Statistical.The introductory section includes a description of the City, including services provided, and ;CXGFIF=HBI BU =>; ,H=V^< FZZBSI=HIP <V<=;W FI\\ LS\\P;=FYV ZBI=YBG<? FI\\ F LYH;U \\H<ZS<<HBI BU =>; ,H=V^< economic condition and outlook.The City's organizational chart is also included to assist the reader in SI\\;Y<=FI\\HIP =>; <=YSZ=SY; BU =>; ,H=V@&>; UHIFIZHFG <;Z=HBI HIZGS\\;< =>; +I\\;X;I\\;I= FS\\H=BY^<Y;XBY=? 'FIFP;W;I=^< \\H<ZS<<HBI ` FIFGV<H<? aBQ;YIW;I= NH\\; UHIFIZHFG <=F=;W;I=<? *SI\\ UHIFIZHFG <=F=;W;I=<? Notes to the financial statements, and Individual and combining statements and schedules. The statistical section includes selected financial and demographic information, generally presented on a multi-year basis. The reader is specifically directed to ManagemeI=^< !H<ZS<<HBI FI\\ $IFGV<H< /'!`$3 N>HZ> HWW;\\HF=;GV UBGGBN< =>; HI\\;X;I\\;I= FS\\H=BY^< Y;XBY=@'!`$ XYBQH\\;< F narrative explanation and overview of significant features and trends reflected by data in the financial statements. Accounting Systems and Internal Controls $ ZYH=HZFG XFY= BU =>; ZBI=YBG <V<=;W H< =>; ,H=V^< ZBWXY;>;I<HQ; AS\\P;=FYV FI\\ *HIFIZHFG #BGHZH;<? N>HZ> establish guidelines for budgetary and financial practices.The Budgetary and Financial Policies are reviewed by the City Commission and updated each year as a part of the budget process. 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 is 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. The objective of budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Commission.The legal level of budgetary control is maintained at the Fund level, in accordance with State Statutes.However, management control is maintained at the department level.The City uses an encumbrance accounting system, in which estimated purchase amounts are recorded prior to the release of purchase orders to vendors.Open encumbrances are reported as reservations of fund balance at December 31, 2019in the general fund and the special revenue funds. Various internal compliance procedures are implemented to ensureproper implementation of the budget as well as to maintain a degree of accountability for both revenues and expenditures. Independent Audit Kansas Statutes Annotated 75-1122 requires an annual audit of the books of account, financial recordsand 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. Profile of theCommunity The Town of Salina was organized in 1858 under the Town and Village Act in the State of Kansas, and became a City of the First Class on July 9, 1920.The City has had a Commission-City Manager form of government since 1921.The Commission is comprised of five members elected at large.Each year the commission chooses one member to act as Mayor.The City Manager is appointed by the Commission, and acts as itsprimary agent in accordance with state statute.Other city officers and employees are appointed by the City Manager.The population of the City reported by the 2010 decennial census was 47,707. The reporting entity includes the City of Salina as well as two discretely presented component units, both proprietary fund types.The Salina AirportAuthority operates the Salina Municipal Airport and Airport Industrial Center, and the Salina Housing Authority administers public housing programs within the City of Salina.The entity also includes one blended component unit. Salina Field House Qualified Active Low- Income Community Business, Inc. (SFH QalicB). SFH QalicB was created for the purpose of providing an indoor sports facility in the downtown coreof the city of Salina. In addition, the City of Salina participates in a joint venture with Saline County, the City-County Building Authority.This report includes all funds and account groups of the City. The City provides a full range of services including police and fire protection, development services, construction and maintenance of streets, drainage facilities and other infrastructure; recreational activities and cultural events; emergency medical services and convention facilities.In addition to general government activities, the City also provides water, wastewater, sanitation, and solid waste services; therefore, these activities are included in the reporting entity. Economic Outlook and Strength The City benefits from its location at the junction of Interstate Highways 70 and 135.This convenient location has drawn numerous national and regional companies to open manufacturing or distribution centers in or adjacent to the community.Such companies include Pepsi-Cola, Exide Technologies, Blue Philips Lighting ,BWXFIV? "G!BYF\\B (F=HBIFG? FI\\ 8Z>NFI^<aGBLFG 8SXXGV ,>FHI@ 'FISUFZ=SYHIP? Y;=FHG =YF\\;? FI\\ <;YQHZ; industries rank as the three primary employers in the City. No single industry is dominant. The City of Salina retains its position near thetop of a GH<= BU UHY<= ZGF<< ZH=H;< NH=> Y;<X;Z= =B g=YF\\; XSGG UFZ=BY@h $ZZBY\\HIP =B =>; JFI<F< !;XFY=W;I= BU %;Q;IS;^< $IISFG ,H=V &YF\\; #SGG *FZ=BY Y;XBY=? 8FGHIF >F\\ a pull of factor of 1.47in 2019. The pull factor measures the degree to which a city or county area captures retail trade from outside the jurisdiction.A pull factor of greater than 1 indicates that a city is attracting more retail trade from outside the city/county than it is losing to other counties.It is apparent from this that Salina continues to serve as a regional economic hub in 2019. Major Initiatives In April, 2016, voters elected to replacethe .40 centcapital improvement sales tax with a .75 cent capital improvement sales tax for a term of 20 years. Priorities for the sales tax are improving neighborhood streets and drainage, preserving stable property tax rates, ensuring a quality park system, constructing and maintaining community improvements, funding equipment for maintenance, repayment of future bonds for large projects and attracting quality jobs.As a result of this initiative, the City has seen a 38% increase in sales tax collections in 2018as compared to 2016. In 2018, the City of Salina issued $22,570,000 in STAR LBI\\< N>HZ> USI\\;\\ <;Q;YFG XYBc;Z=< HI =>; ,H=V^< downtown corridor. In 2019 the Alley Entertainment Center opened for business and the majority of the ,H=V^< !BNI=BNI 8=Y;;=<ZFX; XYBc;Z= NF< ZBWXG;=ed. The new downtown hotel began construction in 2019 and is anticipated to open in July 2020. Othermajor projects that were ongoingincluded gutter and paving th on North 9Street,South Well Field improvements, continued improvements to the water distribution system and preliminary design on the Smoky Hill River Renewaland construction of thePolice Training Center project. The City continues to addressfiduciary pressures generated by a recessionary economyand the more recent financial impacts of the Covid-19 pandemic. General adjustments to the pay plan for cost of living changes at a rate of 2.0%were implemented in 2019. The City alsoallowedfor merit review increases up to 3%. Capital Improvement Planning &>; ,H=V_< ,FXH=FG +WXYBQ;W;I= #GFI /,+#3 ZBI<H<=< BU =NB ZBWXBI;I=<@)I; ZBWXBI;I= ZBI<H<=< BU gYBS=HI;h ZFXH=FGlHIZGS\\HIP Q;>HZG; FI\\ ;bSHXW;I= Y;XGFZ;W;I=? =;Z>IBGBPV Y;XGFZ;W;I=? LSHG\\HIP Y;XFHY FI\\ improvement, routine pavement maintenance activity, utility system enhancements and similar items.The amount offunding for these projects may fluctuate based on needs and funding availability, however, planned amounts are allocated over a multi-year period.Source of funding for routine capital is current cash resources from the fund appropriate to the nature of the purchase. The second component of the CIP includes major projects that typically require issuance of bonds or notes, although these projects may also be supplemented with available cash and grant financing.The plan is updated each year after an extensive evaluation of the demands on future financial resources.The Capital Improvement program is scheduled for a major revision as the result of the sales tax to be used for that purpose. Construction initiated: *20192020202120222023 Sales tax$ 4,380,000$ 4,385,000$ 4,390,000$ 4,395,000$ 4,250,000 Water & wastewater fund----2,000,0002,000,0002,000,000 General obligation bonds5,225,00019,700,000---- Revenue Bonds/Loans11,255,0006,000,00028,000,000-- Other sources785,800-------- $ 21,645,800$ 30,085,000$34,390,000$6,395,000$ 6,250,000 Major projects budgeted in 2019 included a Landfill Cell Construction and the implementation of automated Sanitation collection. The Landfill project was completed; however, the Sanitation project has been delayed until late 2020 or early 2021. The significant increases in 2020 and 2021 are a result of the anticipated beginning of the construction of the Smoky Hill River Renewal Project and Wastewater Treatment Plant respectively. Due to uncertain Sales Tax recovery post Covid-19, the River Renewal project has been delayed. No major projects have been planned for 2022 and 2023 until financial resources for those years canbe further evaluated. *The year a project is scheduled reflects the year that construction is initiated.Preliminary work (design, acquisition) may precede this date by one or more years, and permanent financing may not occur until one (or more years depending on project magnitude) subsequent to this date. Financial Policies The City has adopted a formal set of Budgetary and Financial Policies, addressing such items as fund balances, capital improvements, operating budgets, long term debt management, accounting, auditing and financial reporting, revenues, cash management and investments. Financial policies contribute to financial stability by: 1.Providing consistent guidance in decision making 2.Establishing appropriate levels of fund balances 3.Governing the use of one time or unanticipated resources 4.Providing a multi-year capital improvements process 5.Establishing responsibilities and deadlines for budget preparation 6.Providing for a balanced annual operating budget 7.Providing guidelines on the use of debt, including appropriate purposes and terms 8.Provide a linkage between capital improvement scheduling and long term debt management planning 9.Require annual audits and financial reporting in conformance with Generally Accepted Accounting Procedures 10.Require timely and regular interim financial reporting to the Governing body 11.Ensurethe safety of cash and near cash resources (timely collection of Accounts Receivable, etc.). Acknowledgments The preparation of the Comprehensive Annual Financial Report was made possible by the dedicated Finance staff of the City of Salina andthe professional advice and effortsof the GordonCPAauditing team. Finally, preparation of this report would not have been possible without the support of the City Commission. Sincerely, Michael D. Schrage City Manager DJUJ\[FOT! DJUZ!DPNNJTTJPO! Njlf!Ipqqpdl-!Nbzps! Nfmjttb!Ipehft! Usfou!Ebwjt! Lbsm!Szbo! Spe!Gsbo{! Djuz!Nbobhfs! Njdibfm!Tdisbhf! Nvojdjqbm!Dpvsu! Mfhbm!Tfswjdft! Dmbsl!Nj{f!'!Mjowjmmf!Dibsufsfe+! Hsfh!Cfohutpo! Sjtl!Nbobhfnfou! Efqvuz!Djuz!Nbobhfs! Kbdpc!Xppe! Efwfmpqnfou!Tfswjdft Mbvsfo!Esjtdpmm! Dpoujovpvt!Qspdftt!Jnqspwfnfou! Tdpuu!Hbseofs! Cvjmejoh!Tfswjdft! Ofjhicpsippe!Tfswjdft! Qmboojoh!'!\[pojoh! Dpnnvojuz!Sfmbujpot! Vujmjujft! Qbslt!'!Sfdsfbujpo!Qvcmjd!Xpslt!Qpmjdf! Nbsuib!Ubtlfs! Disjt!Dpuufo!!Kjn!Lpxbdi!Csbe!Ofmtpo! Qbslt!Ejwjtjpo!Fohjoffsjoh!Benjojtusbujpo! Xbufs!Qmbou!Ejwjtjpo! Sfdsfbujpo!Ejwjtjpo!Qvcmjd!Tfswjdft! Qbuspm!Ejwjtjpo! Xbtufxbufs!Qmbou! Hpmg!Dpvstf!Tusffut!Tvqqpsu!Ejwjtjpo! !!!Ejwjtjpo! Gbdjmjuz!Nbjoufobodf!Usbggjd!Dpouspm!Jowftujhbujwf!Ejwjtjpo! Vujmjuz!Ejwjtjpo! Bojnbm!Tfswjdft!Gmppe!Dpouspm! Xbufs!Ejtusjcvujpo! Cjdfoufoojbm!Dfoufs!Tbojubujpo! !Xbtufxbufs!! Tpmje!Xbtuf! Dpmmfdujpo! Dfousbm!Hbsbhf! Gjsf!Dpnqvufs!Ufdiopmphz!Ivnbo!Sftpvsdft!Bsut!'!Ivnbojujft!Gjobodf0Benjojtusbujpo! Lfwjo!Spztf!wbdbou!Obubmjf!Gjtdifs!Csbe!Boefstpo!Efccjf!Qbdl! Tnplz!Ijmm!Nvtfvn! Gjsf!Benjojtusbujpo!Djuz!Dmfsl! Gjsf!Tvqqsfttjpo!Xbufs!Dvtupnfs! Gjsf!Qsfwfoujpo!Bddpvoujoh! FNT!Gjobodf! +Dpousbdu!Qptjujpo Q0PshDibsut0Pshboj{bujpobm!Dibsu.Qvcmjd.3131 City of Salina, Kansas !"#$ %& '(")*"+,- .&&"*",-# City Commission Mike Hoppock, Mayor Melissa Rose Hodges, Vice Mayor Trent Davis, Commissioner Karl Ryan, Commissioner Rod Franz, Commissioner City Executive Staff Michael Schrage, City Manager Jacob Wood, Deputy City Manager Lauren Driscoll, Director of Development Services Debbie Pack, Director of Finance and Administration Natalie Fischer, Director of Human Resources Greg Bengston, City Attorney Brad Nelson, Chief of Police Kevin Royse, Fire Chief Daniel Stack, City Engineer Jim Kowach, Director of Public Works Martha Tasker, Director of Utilities Chris Cotten, Director of Parks and Recreation Brad Anderson, Director of Arts and Humanities Scott Gardner, Continuous Process Improvement !" SECTION *(K&$&(K&(0 ,-K*0"%S) %&$"%0 Mayor and City Commissioners City of Salina, Kansas Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Salina, Kansas, as of and for the year ended December 31, 2019, and the related notes to the financial $*&*(=()*$; W"#A" A+,,(A*#?(,- A+=%>#$( *"( 2#*-P$ /&$#A .#)&)A#&, $*&*(=()*$ &$ ,#$*(C #) *"( *&/,( +. A+)*()*$1 #BEBT7L7E9S8 %78P>E8DMDCD9Q R>; 9:7 /DEBEIDBC )9B97L7E98 Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. ,UJD9>;S8 %78P>E8DMDCD9Q Our responsibility is to express an opinion on the financial statement based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the Kansas Municipal Audit and Accounting Guide. Those standards require we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement. We did not audit the financial statements of the Salina Field House Qualified Active Low-Income Community Business, Inc. (SFH QalicB), which is included within the financial statements as a major governmental fund. This activity represents 4% and 1%, respectively, of the total assets and total revenues of the governmental funds. Those financial statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for SFH QalicB, is based solely on the report of the other auditors. We also did not audit the financial statements of the Salina Airport Authority which statements reflect total assets and deferred outflows of resources of $46,899,592as of December 31, 2019and total revenues of $2,432,958for the year then ended, and the Housing Authority of the City of Salina, which statements reflect total assets and deferred outflows of resources of $7,393,221as of June 30, 2019and total revenues of $2,620,347for the year then ended, 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. 1 An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial $*&*(=()*$1 !"( %>+A(C@>($ $(,(A*(C C(%()C +) *"( &@C#*+>P$ `@C'=()*; #)A,@C#)' *"( &$$($$=()* +. *"( >#$0$ +. material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, *"( &@C#*+> A+)$#C(>$ #)*(>)&, A+)*>+, >(,(?&)* *+ *"( ()*#*-P$ %>(%&>&*#+) &)C .&#> %>($()*&*#+) +. *"( .#)&)A#&, statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of (\[%>($$#)' &) +%#)#+) +) *"( (..(A*#?()($$ +. *"( ()*#*-P$ #)*(>)&, A+)*>+,1 8AA+>C#)',-; W( (\[%>($$ )+ $@A" +%#)#+)1 An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinions In our opinion, based on our audit and the reports of other auditors,the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the Cityof Salina, Kansas, as ofDecember 31, 2019, and the respective changes in financial position and cash flows, where applicable, thereof and the respective budgetary comparison for the General, Tourism and Convention,Special Gas and Sales Tax Capital Fundsfor the year then ended in accordancewith accounting principles generally accepted in the United States of America. Emphasis of Matter Prior Period Restatement As discussed in Note 3to the financial statements, certain errors in amounts previously reported as of December 31, 2018, were discovered by management of the City during the current year. Accordingly, these amounts have been restated in the December 31, 2019, financial statements now presented, and adjustments have been made to net position to correct the error. Our opinion is not modified with respect to these matters. The financial statements of the City of Salina, Kansas, as of December 31, 2018, were audited by other auditors whose report dated September 29, 2019, expressed an unmodified opinion on those statements. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 4through 15, the other postemployment benefit schedules on page 71and 72, the schedule +. *"( 2#*-P$ %>+%+>*#+)&*( $"&>( +. *"( )(* %()$#+) liability on page 73, and the schedule of City contributions on page 73be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is requiredby the Governmental Accounting Standards Board, who considers it to be an essential part of financial reportingfor placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in theUnited States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with =&)&'(=()*P$ >($%+)$($ *+ +@> #)_@#>#($; *"( /&$#A .#)&)A#&, $*&*(=()*$; &)C +*"(> 0)+W,(C'( W( +/*&#)(C C@>#)' our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the 2#*-P$ .#)&)A#&, $*&*(=()*$&$ & W"+,(1 !"( #)*>+C@A*+>- $(A*#+); A+=/#)#)' &)C #)C#?#C@&, )+)=&`+> .@)C .#)&)A#&, statements and schedules, and statistical tables as listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statementsand schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying account and other records used to prepare the basic financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. 2 The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Gordon CPA LLC Certified Public Accountant Lawrence, Kansas June 30, 2020 3 CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2019 =>*+ +&,(*.$ .? (>& 4&@.4( ,.$(#*$+ #$ .A&4A*&B #$/ #$#12+*+ .? (>& C*(2 .? D#1*$#E+ ?*$#$,*#1 +(#(&'&$(+ ?.4 (>& ?*+,#1 year ended December 31, 2019. The information contained here, as well as the information contained in the letter of (4#$+'*((#19 #4& *$(&$/&/ (. @4.A*/& (>& 4&#/&4 .? (>& ?*$#$,*#1 +(#(&'&$(+ B*(> # B&11G4.-$/&/@*,(-4& .? (>& C*(2E+ financial condition. Financial Highlights H$ #$ #,,4-#1 6#+*+9 (>& C*(2E+ %.A&4$'&$(GB*/& $&( @.+*(*.$*$,4&#+&/IJF8'*11*.$ ?4.' ,-44&$( .@&4#(*.$+B*(> net position increases of $4.9million and $3.2million in governmentalactivitiesand business-type activities, respectively. 0( (>& ,1.+& .? :;8<9 (>& C*(2E+ %.A&4$'&$(#1 ?-$/+ reported combined ending fund balances of $15.8million, a decreaseof $3.3millionfromthe prior year. This primarily resulted capital project expenditures in the Capital Projects Fund. The General Fund balance increased $2.6 millionover the prior year. 0( (>& ,1.+& .? :;8<9 (>& C*(2E+ &$(&4@4*+&?-$/+ 4&@.4ted a combined ending Net Positionof $93.6million, an increase of $3.2millionover prior year. Positive performance was shared bythe Water and Sewer Fund,the Sanitation Fund,and the Golf Fund, with the Water and Sewer Fund providing the bulk of the change ($2.7 million).TheSolid Waste Disposal Fund saw a negative performance as a result of additional costs related to the opening of the Drive Thru Recycling Center. Revenues from governmental activitiesdecreasedby $7.0millionfrom the prior year and revenues from business type activitiesincreased$.7millionfrom the prior year. Revenues from investmentscontinue to be minimal. The Basic Financial Statements The basic financial statements of the City include the government-wide financial statements and the fund financial statements. The notes to the financial statements follow the basic financial statements and are essential for the 4&#/&4E+ -$/&4+(#$/*$% .? (>& ?*$#$,*#1 +(#(&'&$(+F H(>&4 supplementary information, including the combining schedules for non-major funds and the budgetary comparison reports, are at the end of this report to provide additional information for the reader. Government-wide Financial Statements The government-wide financial statements present the result+ .? (>& C*(2E+ .@&4#(*.$+ -+*$% (>& #,,4-#1 6#+*+ .? accounting, the same basis as is used by private sector businesses. These statements focus on the long-term financial picture of the City as a whole. =>& D(#(&'&$( .? R&( N.+*(*.$4&@.4(+ #11 .? (>& C*(2E+ assets and liabilities. Net position, the difference between assetsand deferred outflows of resourcesand liabilities, are #$ *'@.4(#$( '&#+-4& .? (>& C*(2E+ .A&4#11 ?*$#$,*#1 health. Netpositionrepresentsthe total accumulated and unused resources available to the City for the purpose of providing services. Over time, the increases and decreases in net positioncan be monitored to determine if the C*(2E+ ?*$#$,*#1 @.+*(*.$ *+ *'@4.A*$% .4 /&(&4*.4#(*$%F The Statement of Activities shows how net position haschanged during the fiscal year. One unique feature of this statement is how it shows the revenues and expenses related to specific programs and how much of those programs were supported by the general taxes of the City. Since this statement is prepared on the accrual basis of accounting, all revenues and expenses are included, regardless of when cash is actually received. Both statements show the operations of the City broken down between governmental and business-type activities. Governmental activities are the operations of the City generally supported by taxes, such as public safety (police, fire, and EMS), public works, CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2019 public health, and culture & recreation. Business-type activities are operations of the City that are intended to recover a significant portion of their costs through user fees and charges. These include water and sewer, refuse collection, the golf course, and operation of the City solid waste facility. The government-wide financial statements include the Salina Airport Authority and Salina Housing Authority as discretely presented component units of the Cityand the Salina Field House Qualified Active Low-Income Community Business, Inc. (SFH QalicB) as a blended component unit. Note 1, item A in the Notes to the Financial Statements providesa more complete explanation of the relationship between these entities and the City of Salina. Fund Financial Statements The City uses three types of funds to manage its resources: governmental funds, proprietary funds, and fiduciary funds. A fund is a fiscal entity with a set of self-balancing accounts recording financial resources together with all related liabilities and residual equities and balances, and the changes therein. These accounting entities are separated for the purpose of carrying on specific activities or attaining certain objectives in accordance with regulations, restrictions, or limitations. Governmental fund financial statements are prepared on a modified accrual basis. Under this basis, revenues are recognized when they become measurable and available, and expenditures are recognized when the related fund liability is incurred with the exception of long-termdebt and similar items which are recorded when due. The focus is on the short-term financial picture of the operations of the individual fund, rather than long-term citywide view provided by the government-wide statements. Major governmental funds are presented in individual columns,while $.$G'#L.4 %.A&4$'&$(#1 ?-$/+ #4& #%%4&%#(&/ *$(. #$ dH(>&4 P.A&4$'&$(#1 O-$/+e,.1-'$F 0 ,.'6*$*$% +(#(&'&$( for the non-major funds is presented as supplementary information in the back of the report. The information presented in these statements can be compared to the governmental activities information in the government-wide statements. The reconciliation at the end of the fund financial statements details the relationship between the two types of financial statements. Proprietary funds fall into two categories: enterprise funds and internal service funds. All proprietary funds are prepared on the accrual basis of accounting and are used to account for business-type activities. Enterprise fund statements present the same information that is in the government-wide statements for business-type activities, but in greater detail. The City of Salina currently operates four enterprise funds: Sanitation, Solid WasteDisposal, Golf Course, and Water and Sewer. Internal service funds are used to account for the cost of operations shared by various departments of the City. The city operates threeinternal service funds. Twoof these are for self-insurance activity: Workers Compensation Reserve and Health Insurance. The remaining accountsfor the Central Garage operation. A combining statement for these internal service funds can be found in the supplementary information following the notes to the financial statements. Fiduciary funds are used by the City to account for resources held by the City for a third party. Agency funds are a special class of fiduciary fund in which liabilities always equal assets, and thus there isno net position. The City of Salina operates twelveagency funds. Schedules for these funds may be viewed in the supplementary section of this report. Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not principal, may be used. Permanent funds operated by the City include the Citizenship Trust, Cemetery and Mausoleum Endowments, and the Tri-centennial Commission fund. Notes to the Financial Statements The notes to the financial statements are an integral part of the basic financial statements since they contain valuable #//*(*.$#1 *$?.4'#(*.$ $&,&++#42 ?.4 %#*$*$% # ,.'@1&(& -$/&4+(#$/*$% .? (>& C*(2E+ ?*$#$,*#1 +(#(&'&$(+F CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2019 Other Information In addition to the basic financial statements and the notes described above, this report also presents the general fund #$/ '#L.4 +@&,*#1 4&A&$-& ?-$/E+ 6-/%&(#42 +(#(&'&$(+ #+ 4equired supplementary information directly following the notes to the basic financial statements. The combining statements for the non-major funds are shown after the 4&Y-*4&/ +-@@1&'&$(#42 *$?.4'#(*.$F O*$#1129 (>& +(#(*+(*,#1 +&,(*.$ *$,1-/&+ +&1&,(&/ +(#(*+(*,#1 /#(# #6.-( (>& C*(2E+ operations and economy. The City as a Whole =>*+ +&,(*.$ B*11 */&$(*?29 /*+,-++9 #$/ #$#12c& +*%$*?*,#$( /*??&4&$,&+ #$/ (4&$/+ (>#( B*11 &$>#$,& (>& 4&#/&4E+ -$/&4+(#$/*$% .? (>& C*(2E+ ?*$#$,*#1 @.+*(*.$F Tax Base and Economy The City of Salina relies on three major groups of revenues to support itsoperations. Each of these revenue streams has a different revenue base. In declining order of magnitude, they are charges for services, sales taxes, and property taxes. Sales taxes and property taxes apply primarily to governmental activities, while charges for services apply to both governmental (20%) and business-type (80%) activities. !"#$%&' ()$ '&$*+,&'#,,.-$( ?.4 #6.-( !7f UI7VF:'*11*.$W .? (>& C*(2E+ 4&A&$-& +(4&#'F C>#4%&+ ?.4 +&4A*,& depend on both the rate that is set for the activity, as well as the volume of services provided. Significant services include water and wastewater fees, sanitation and landfill fees, licenses and permits, inspection fees and golf course fees.Charges for services remained flatfrom the prior year with the sanitation fund increasing $319K (10.0%),water and sewer fundincreasing $306K (1.5%)and governmental activities decreasing $700K in public safety. The increase in charges for servicesin the sanitation fundandthe increasein the water and sewer fundarea result ofan increase in user fees. -#.&' /#0&'are the next largest component of the revenue mix, providing25.7%($22.7million) of the total revenues. The City receives a 1.25% City-wide sales tax, and also a portion of the County-wide 1% sales tax. Forty- four percent, (a rate of .75%)of the City-wide sales tax is required to be used for special purposes. The remaining .5%,along with the City portion of the County-wide tax is available for general purposes. The City isaffected by the formula used to distribute the County-wide sales tax among participating jurisdictions (only Cities and the County participate, School and other special districts do not). The formula is based, in part, on the property tax efforts of each jurisdiction. Asthe portion of the overlapping levy attributable to the City of Salina ,>#$%&+ +. /.&+(>& C*(2E+ #11.,#(&/ @.4(*.$ .? (>& C.-$(2GBide sales tax. This change is recognized bi-annually #$/ ,#$ #??&,( (>& .A&4#11 #11.,#(*.$ .? (>& C*(2E+ @.4(*.$ of the County-wide sales tax.In 2019, this allocation increased slightly which did not have a significant impact on the tax revenues. In2008, Salina voters approved anincreaseof thespecial purpose.25% tax to a .40% tax. The extended tax was to sunset March 31, 2019. The tax was also modestly re-purposed, for Capital and Economic Development purposes only, as well as retaining a property tax stabilization component.In May 2017, Salina voters approved an increase in the special purpose .40% tax to a .75% tax (thus repealing the 2008 increase). This change became effective October 1, 2017for twenty years. 1$)2&$/3 /#0&'are the third major component of the revenue mix, accounting for 15.6%($13.8million) of total revenues. Property taxes consist of two components: Real estate and personal property taxes which are determined by the mill levy set by the city and the assessed value of the property; and motor vehicle taxeswhich are established by a countywide average tax rate and the assessed value of the vehicle. Real estate assessed value increased by 4.0%. The total City mill levy increased by8.6%. The overlapping levy increasedin 2019by 3.3%. Personal property value continued to slide, presumably as a result of removing business equipment from the tax base. Personal property value has now dropped to $9.3million from its peak of $39.7 million in 2007. At the 2019 tax rate, this exemption is equivalent to over $857Kinannual lost revenue. CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2019 ".(.4 A&>*,1& A#1-& *$,4&#+&/!FQfF ".(.4 A&>*,1& (#M&+ #4& /*+(4*6-(&/ 6#+&/ .$ # ?.4'-1# -+*$% @4*.4 2&#4E+ (#M effort (similar to the Countywide Sales Tax Distribution). The following table summarizes the comparative property assessed values and tax levy rates: Comparative Property Values and Tax Levy Rates Fiscal (Budget) Year20192018Change Real Estate and Personal Property Assessed Valuation$454,395,369$434,451,245$19,944,124 City Mill Levy ($ per $1,000) Operating (General Fund)22.28520.3391.946 Debt Service6.1095.790.319 Total City Rate28.39426.1292.265 Total Overlapping Levy138.341133.145.201 Percent of Total Taxes Collected97.4%95.9%1.5% Ratio of Total Taxes (including delinquent collections) to Taxes Levied98.6%98.4%0.2% Motor Vehicle Valuation$ 54,687,311$ 53,336,677$ 1,350,634 The unemployment rate in Salinadecreased slightlyfrom 3.3% at the end of 2018to 2.9% at the end of 2019, reflecting general economic conditions. This is stillslightly below the statewide and significantly below the national unemployment rate. The total labor force decreased slightly to30,094from 30,174in 2018. In 2019, the top ten property taxpayers accounted for 10.05%of total assessed value. This is lessconcentrated than ten years ago (at 14.70%). Statement of Net Position R&(@.+*(*.$'#29 .A&4 (*'&9 @4.A*/& #$ *$/*,#(.4 .? # %.A&4$'&$(E+ ?*$#$,*#1 @.+*(*.$F \[$ (>& ,#+& .? (>& C*(2 .? Salina, assetsand deferred outflows of resourcesexceeded liabilities by $231.9millionat December 31, 2019. This represents anincreasein net assets of $8.1millionover 2018. A comparativeCondensed Statement of Net Position at December 31, 2019and 2018: CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2019 Condensed Statement of Net Position As of December 31 (In $000) Governmental ActivitiesBusiness-Type ActivitiesTotal Primary Government % of % of 2019-2018 20192018201920182019Total2018Totalchange Cash and investments$ 31,406$ 34,302$ 34,957$ 32,140$ 16%66,44266,363$ 17%(79)$ Other current assets 17,201 16,774 2,512 2,630 19,7135%19,404 5%309 Noncurrent (capital) assets 222,258 210,515 101,079 90,181 323,33779% 300,69678% 22,641 Total assets 270,865 261,591 138,548 124,951 409,413100% 386,542100% 22,871 Total deferred outflows of 5,073 5,527 546 802 5,619100% 6,329100% (710) resources Total assets and deferred outflows 275,939 267,118 139,094 125,753 415,033 392,871 22,162 of resources Current liabilities 23,971 28,623 3,579 3,814 16%32,43727,550 21%(4,887) Noncurrent liabilities 98,696 90,931 41,765 31,332 140,46184% 122,26379% 18,198 Total liabilities 122,667 119,554 45,344 35,146 168,011100% 154,700100% 13,311 Total deferred inflows of resources 14,913 14,113 198 224 15,112 14,337 775 Net position: Net investment in capital assets 144,845151,527 63,301 62,368 214,828 92%207,213 93%7,615 Restricted for permanent funds 528 514 - - 5280% 5140% 14 Restricted for debt service 1,142 1,851 1,368 1,512 1%3,3632,510 2%(853) Unrestricted (14,839) (13,759) 28,883 26,503 14,0446% 12,7446% 1,300 Total net position 138,359 133,451 93,552 90,383 231,910100% 223,834100% 8,076 Percent of total net position60%60%40%40%100%100% Cash and investments as a percentage of current liabilities 131%120%977%843%241%205% =>& 1#4%&+( +&%'&$( .? (>& C*(2E+ $&( @.+*(*.$4&?1&,(+ *(+ *$A&+('&$( *$ ,#@*(#1 #++&(+ U1#$/9 6-*1/*$%+9 +(4&&(+ #$/ drainage facilities, utility plant, vehicles, equipment, etc.), less any debt used to acquire those assets that is still outstanding. These assets are used to provide services to citizens. As a result, resources required to retire related debt cannot come from liquidation of the asset. Such resources generally must be provided from other sources, such as futuretaxes or user charges. A small portion of net positionis restricted for debt serviceand permanent funds. The remainder (unrestricted) of net @.+*(*.$'#2 6& -+&/ (. '&&( (>& C*(2E+ .61*%#(*.$+ (. ,*(*c&$+ #$/ ,4&/*(.4+F In 2019, the amount of net investment in capital assetsincreased by $7.6million. Amount restricted for debt service decreasedby $853thousand. Unrestricted increased by $1.3million. Outside of these changes, 2019resulted in a $8.1million increase to the net position. Total liabilities increased in governmental activitiesandincreased in business-type activities.In governmental activities,currentliabilities decreased,and non-current liabilitiesincreasedprimarily due to anincreasegeneral obligation bonds. CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2019 Statement of Activities A Condensed Statement of Activities is shown below: Condensed Statement of Activities For the Year Ended December 31 (In $000) Business-Type Governmental ActivitiesActivitiesTotal Primary Government 2019-2018 Change 20192018201920182019 % 2018 % Program Revenues: Charges for Services9,730$ 10,411$ 27,423$$27,061$ 42%37,47237,153$ 43%(319)$ Operating Grants and Contributions4,540 4,300 - - 5%4,3004,540 5%240 Capital Grants and Contributions-4,635- - 0%4,635- 0%(4,635) General Revenues: Property Taxes 13,774 12,508 - - 13,77416% 12,50815% 1,266 Sales Taxes 22,742 22,209 - - 22,74226% 22,20925% 533 Other Taxes 6,975 7,240 - - 8%7,2406,975 8%(265) Investment Revenue 670 183-233 6701% 4160% 254 Other Miscellaneous 1,168 1,062847 153 2,0152% 1,2152% 800 Total Revenues: 59,599 62,548 28,269 27,447 87,869100% 89,995100% (2,126) Expenses: General Government10,866 12,013 - - 10,86614% 12,01315% (1,147) Public Safety 25,358 23,892 - - 25,35832% 23,89230% 1,466 Public Works 10,528 10,458 - - 10,52813% 10,45813% 70 Public Health and Sanitation 1,156 1,256 - - 1%1,2561,156 2%(100) Culture and Recreation 6,879 7,040 - - 9%7,0406,879 9%(161) Planning and Development 2,522 2,369 - - 3%2,3692,522 3%153 Solid Waste Disposal - - 2,871 2,382 4%2,3822,871 3%489 Water and Sewer - - 14,294 15,190 18%15,19014,294 19%(896) Sanitation - - 2,266 2,419 3%2,4192,266 3%(153) Golf Course - - 888 926 1%926888 1%(38) Interest on Long Term Debt 2,169 2,117 - - 2,1693% 2,1173% 52 Total Expenses 59,479 59,145 20,319 20,917 79,798100% 80,062100% (264) Increase in net assets before transfers121 3,403 7,950 6,530 8,071 9,933 (1,862) 4,782 4,831 (4,782) (4,832) Transfers and other extraordinary items - (1)1 4,902 8,234 3,169 1,698 8,071 9,932 (1,861) Change in Net Position Net Position January 1 133,452 123,701 90,383 89,083 223,835 212,784 11,051 Prior Period Adjustment4 1,518-(398)4 1,120 (1,116) Net Position January 1, restated 133,456 125,219 90,383 88,685 223,839 213,904 9,935 Net Position December 31$138,359$133,453$93,552$90,383$231,910$223,836$ 8,074 CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2019 Governmental Activities. Charges for servicesattributable to governmental activities totaled $9.7million,and operating grants for those purposes were $4.5million. Charges for services decreased slightly and capital grants increased from the prior year, while operating grants decreased. The balance was funded by general revenues. Sales taxes accounted for $22.7million of general revenues, with property taxes providing $13.8million. The net position increased by $4.9million as a result of governmental activities. This increase was primarily related to the increase in sales and other taxes. Total expenses for governmental activities for the year ending December 31, 2019were$59.5million compared to $59.1millionin 2018. Governmental activities represent 75%.? (>& C*(2E+ (.(#1 &M@&$+&+F =>& 1#4%&+( &1&'&$( .? governmental activity expense was public safety, accounting for 32% of the total. Business Type Activities. Business-type activities are primarily supported by user charges, with a very small amount coming from investment and miscellaneous revenues. Total expenses for business-type activities for the year were I:;F7'*11*.$9 .4 :!f .? (>& C*(2E+ (.(#1 &M@&$+&+F =>& '#L.rity of this expense ($14.3million)is attributable to water and sewer operations, with the other activities costing a combined total of $6.0million. Net position increasedby $3.2 million.This increasewas primarily related to theincrease in water and sewer fund revenues and a decrease in water and sewer fund expenses. Fund Financial Analysis Governmental Funds Fund Balances: The table below shows the Governmental Fund balances for major funds as ofDecember 31, 2019andDecember 31, 2018. Governmental Fund Balances as of December 31, (in 000's) Fund20192018Change General$ 9,307$ 2,5646,743$ Tourism and Convention 451 458 (7) Special Gas 2,191 1,532 659 Sales Tax Capital 2,406 1,984 422 Schilling Capital Improvement1,949 2,136 (187) Debt Service 1,142 1,851 (709) Capital Projects (7,652)(694)(6,958) SFH QalicB 1,310 1,21892 Other Governmental Funds4,671 3,861 810 $15,776$ 19,089$ (3,313) Total governmental fund balances decreasedby $3.3million. Thereasons for these changes are varied. The Schilling Capital Improvement Fund, which was created to account for U.S. Government and other funds received for the abatement of groundwater contamination, continues to decreaseas the City uses funds previously distributed. The Capital ProjectsFunddecreasewaslargely the result of the use of fundsto fundcapital outlays on projects.The SFH QalicB fund was created to account for funds for the Salina Field House. CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2019 Revenues and Expenditures: The following table shows a comparison of revenues and expenditures (including other sources and uses) for major funds for the years ending December 31, 2019and 2018. Fund20192018Change Revenues (Including Other Financing Sources) General 44,228$ 41,532$ 2,696$ Tourism and Convention1,889 1,795 94 Special Gas 2,027 1,653 374 Sales Tax Capital 8,501 8,225 276 Schilling Capital Improvement21156 Debt Service 6,241 6,602 (361) Capital Projects11,87113,555(1,684) SFH QalicB499504(5) Other Governmental Funds 4,745 4,161 584 Total Revenues80,02178,0421,979 Less Other Sources(21,247)(21,622) 375 Revenues, net of other sources$ 58,774$ 56,420$ 2,354 Expenditures (Including Other Finacing Uses) General 41,664$ 41,672$ $ (8) Tourism and Convention 1,896 1,550 346 Special Gas 1,368 1,203 165 Sales Tax Capital 8,060 8,324 (264) Schilling Capital Improvement208904(696) Debt Service 6,950 6,955(5) Capital Projects18,83015,1443,686 SFH QalicB4071,001 (594) Other Governmental Funds 3,954 4,653 (699) Total Expenditures83,33581,4061,929 Less Other Uses (5,073) (4,186) (887) Expenditures, net of other uses$ 78,262$ 77,220$ 1,042 Total revenues, including other sources, were up$2.4million comparedto 2018, with the General Fund showing the largest increase between the two years, which was $2.7 million. Total expenditures increased $1.9million over 2018. The majority ofthat increase was in the Capital Projects Fund as a result of increased spending on projects, specifically the Downtown Streetscape and Police Training Facility projects. CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2019 Proprietary Funds The City of Salina operates four enterprise funds as well as five internal service funds. A summarized comparative Statement of Net Positionfollows for each enterprise fund: Comparative Summary Statement of Net Position as of December 31 (in $000's) Solid Waste DisposalWater and Sewer 20192018Change20192018 Change Current Assets$ 7,073$ 6,569$ 504$ 28,307$ 26,338$ 1,969 Capital Assets 1,497 2,350(853)97,956 86,535 11,421 67 72 371 610 Deferred Outflows (5) (239) $ 8,636$ 8,991$ (355)$ 126,634$ 113,483$ 13,151 Total Assets and deferred outflows Current Liabilities$ 103$ 461$ 3,273$ 3,183 $ (358)$ 90 Noncurrent Liabilities 2,865 2,847 38,016 27,576 18 10,440 28 30126 144 Deferred Inflows (2) (18) $ 2,995$ 3,338$ (343)$ 41,415$ 30,903$ 10,512 Total Liabilities Net investment in capital assets $ 1,5701,107$ (463)$ 60,568$ 59,502$ 1,066$ Restricted - - - 1,368 1,512 - 4,534 4,083 23,283 21,566 Unrestricted 451 1,717 $ 5,640$ 5,653$ (13)$ 85,219$ 82,580$ 2,639 Total Net Position Current Assets as a percentage of current liabilities 6885%1425%865%827% SanitationGolf Course 20192018Change20192018 Change Current Assets $ 1,7472,012$ 265$ 77$ 116$ $ (39) Capital Assets 8861,165 279 462 410 52 84 9225 27 Deferred Outflows (8)(2) $ 3,261$ 2,725$ 536$ 563$ 553$ 10 Total Assets Current Liabilities$ 137$ 106$ 66$ 64 $ 31$ 2 Noncurrent Liabilities 668 684215225 (16) (10) 35 3810 11 Deferred Inflows (3)(1) $ 840$ 828$ 12$ 291$ 300$ (9) Total Liabilities Net investment in capital assets $ 8861,165$ $ 279$ 462$ 410$ 52 Restricted - - - - - - 1,256 1,011(187)(103) Unrestricted 245 (84) $ 2,421$ 1,897$ 524$ 275$ 307$ (32) Total Net Position Current Assets as a percentage of current liabilities 1469%1648%117%181% CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2019 Revenues, Expenses, and Changes in Net Position All enterprise funds show healthy results, with three of the fourfunds reflecting increases in net position. Comparative Summary of Revenues, Expenses and Changes in Net Position for the Year Ended December 31 (In $000's) Solid Waste DisposalWater and Sewer 20192018Change20192018 Change Operating Revenues$ 3,499$ 3,116$ 383$ 20,588$ 20,207$ 381 2,849 2,353 496 13,013 14,348 (1,335) Operating Expenses Operating Income 649 763(114)7,5755,859 1,716 (22)17(39)(1,281)(667)(614) Non-operating revenues (expenses) Income (Loss) before Transfers 627 780(153)6,2945,192 1,102 (640)(690) 50 (3,650) (3,650) - Transfers in (out) (13) 90(103)2,644 1,542 1,102 Change in Net Position Net Position January 1 5,653 6,237(584)82,58080,697 1,883 - (674) 674(5)341 (346) Restatement 5,653 5,563 90 82,575 81,038 1,537 Net Position January 1, restated $ 5,640$ 5,653$ (13)$ 85,219$ 82,580$ 2,639 Net Position December 31 SanitationGolf Course 20192018Change20192018 Change Operating Revenues$ 3,276$ 3,006$ 907$ 884 $ 270$ 23 2,266 2,419(153)888 926 (38) Operating Expenses Operating Income 5871,010 423 19 (42)61 -11(11)- 661(661) Non-operating revenues (expenses) Income (Loss) before Transfers 1,010 598 412 19 619(600) (492)(492)1 - -- Transfers in (out) -- 519 106 413 19 619 (600) Change in Net Position Net Position January 1 1,897 1,856 41 253 292 (39) 5(66)71-2(2) Restatement 1,902 1,790 112 253 294 (41) Net Position January 1, restated $ 2,421$ 1,896$ 525$ 272$ 913$ (641) Net Position December 31 CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2019 Budgetary Highlights The objective of budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Commission. The legal level of budgetary control is maintained at the fund level, in accordance with State Statutes. Management control is maintained at the departmental level. Within the departments, considerable discretion is permitted. The City uses an encumbrance accounting system, in which estimated purchase orders are recorded prior to the release of purchase orders to vendors. Open purchase orders are reported as reservations of budgetary basis fund balances at December 31, 2019. Formal budgetary amendments are limited to those circumstances in which the need is perceived to alter the total fund budget. Re- allocation among departments or line items are not typically recorded as budgetary amendments. However, in addition to formal amendments, departments within the City are allowed to transfer budget between line items within a department. Budgetsmay also be transferred from department to department within each fund. As a result of these transfers, the original budget and the final budgets may not be the same for departments within a fund. Capital Assets and Debt Administration Capital Assets The total amount invested in Capital Assets for the City at December 31, 2019was $323,337,161,net of accumulated depreciation. The following table illustrates the Capital Asset balance by various classes of assets at December 31, 2019and 2018: Capital Asset Balances Net of Depreciation as of December 31 (In 000's) Governmental ActivityBusiness-type ActivityTotal 201920182019201820192018 Equipment, Furniture and Fixtures2,352$ 2,374$ 1,536$ 1,489$ 3,888$ 3,863$ Vehicles2,8542,9571,288 1,208 4,1424,165 Buildings and Improvements30,556 31,759 8,519 8,941 39,075 40,700 Land 24,224 24,094 2,386 2,060 26,610 26,154 Land Leased Under Capital Assets423 423-- 423 423 Infrastructure 116,264 116,365 79,824 72,312 196,088 188,677 Leasehold Improvements 357 326-- 357 326 Construction in Progress 45,228 32,217 7,527 4,171 52,755 36,388 Total$222,258$210,515$101,079$90,181$323,337$300,696 Changesto capital assets may be summarized as follows: Changes to Capital Assets, 2019 (in 000's) Governmental Business-Type ActivityActivityTotal Additions22,005$ 26,293$ 48,298$ Retirements(4,622)(11,402) (16,024) Depreciation(6,835) (4,815) (11,651) Net Additions10,548$ $ 10,075$ 20,623 0//*(*.$#1 *$?.4'#(*.$ .$ (>& C*(2E+ ,#@*(#1 #++&(+ ,#$ 6& found in Note 4,D. of the notes to the basic financial statements. CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2019 Debt Management =>& C*(2E+ %&$&4#1 @.1*,2 ?.4 %&$&4#1 .61*%#(*.$ 6.$/+ *+ (. issue them for no more than 10 years for the City at Large portion, with some exceptions permitted for extraordinary projects. On special assessment bonds, the maturity may extend to 15 years. The outstanding general obligation bondsforgovernmental activitiesat December 31, 2019totaled $57,623,908. In addition, there were temporary notes outstanding in the amount of $11,170,000, as well as a financing operating lease in the amount of $656,260. Business-type activities had $11,122,175in revenue bonds outstanding, as well as $4,116,515in general obligation bonds. Revenues generated by user fees are pledged to retire all of the bonds issued by business-type activities. In addition, a loan payable is outstanding in the amount of $22,539,686. The City engaged in the followingdebt transactions during 2019: On July 30th, the City issued2019-1, $6,000,000of temporary notes. The proceeds were used to finance construction to Downtown Streetscape, Police Training Facility Design and 2 special assessment projects. On November27th, the City issued2019-2,$13,500,000in temporary notes to pay off the 2019-1 notes as well as finance construction of the Downtown Streetscape and Police Training Facility.Thisnote will be partially refinanced into a long-termbond issue in 2019 and partially in 2020. th On November 27, the City issued 2019A, $2,090,000 in General Obligation Bonds to finance construction costs for the Grand Prairie II and River Trail Second Addition special assessment projects, as well as to finance the Beechcraft Road project. On December 1, 2019, the City issued $18,520,000 in Senior Special Obligation Revenue Bonds and $4,320,000 in Subordinate Special Obligation Revenue Bonds to fund STAR Bond district projects. 0//*(*.$#1 *$?.4'#(*.$ .$ (>& C*(2E+ /&6( ,#$ 6& ?.-$/ *$ R.(& !9 5F .? (>& $.(&+ (. (>& 6#+*, ?*$#$,*#1 +(#(&'&$(+F Requests for Information This financial report is intended to give the reader a gener#1 .A&4A*&B .? (>& C*(2E+ ?*$#$,&+F `-&+(*.$+ #6.-( information in this report or requests for additional information should be directed to the Director of Finance, Room 206, 300 West AshStreet, Salina, Kansas, 67401. CITY OF SALINA, KANSAS STATEMENT OF NET POSITION December 31, 2019 Primary GovernmentComponent Units TotalTotalTotalSalinaSalina GovernmentalBusiness-typePrimaryHousingAirport ActivitiesActivitiesGovernmentAuthorityAuthority ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Current assets: Cash and investments$ 31,406,384$ 34,956,928$ 66,363,312$ 2,222,111$ 655,020 Receivables (net of allowance for uncollectibles) Accounts 2,080,843 2,033,882 4,114,725 12,159 848,249 Taxes 13,863,340-13,863,340-- Interest9,518169,534-- Inventory 339,878 477,644 817,522 30,954- Restricted cash and investments 907,687-907,687-- - -- 45,1929,352 Prepaid expenses 48,607,650 37,468,470 86,076,120 2,310,416 1,512,621 Total current assets Noncurrent assets: Capital assets, nondepreciable Construction in progress 45,227,729 7,526,968 52,754,697 128,057 132,217 Land 24,646,334 2,386,334 27,032,668 1,483,219 10,166,125 Capital assets, depreciable 279,528,709 162,361,912 441,890,621 8,494,072 81,240,459 127,144,929 71,195,896 198,340,825 5,084,636 47,428,034 Less: Accumulated depreciation 222,257,843 101,079,318 323,337,161 5,020,712 44,110,767 Total noncurrent assets 270,865,493 138,547,788 409,413,281 7,331,128 45,623,388 Total assets Deferred outflows of resources: KPERS OPEB deferred outflows of resources 97,708 43,897 141,605-4,220 OPEB deferred outflows of resources 62,1717,91970,090 -- Pension deferred outflows of resources 4,842,013 484,280 5,326,293 62,093 131,923 71,376 9,925 81,301-1,140,061 Deferred charge on bond issuance 5,073,268 546,021 5,619,289 62,093 1,276,204 Total deferred outflows of resources $ 275,938,761$ 139,093,809$ 415,032,570$ 7,393,221$ 46,899,592 Total assets and deferred outflows of resources Liabilities: Current liabilities: Accounts payable$ 3,588,272$ 448,194$ 4,036,466$ 45,557$ 867,149 Retainage payable 1,980,498 153,409 2,133,907-- Accrued liabilities 649,172-649,17236,478 145,241 Accrued interest payable 78,459 325,876404,335-227,145 Deposits payable-229,447229,44798,022 - Current portion of compensated absences 2,030,465478,5522,509,0172,989- Current portion of temporary notes payable 11,170,000-11,170,000-- Current portion of loans payable-539,863539,863-- Current portion of revenue bonds payable-715,000715,000 -- Current portion of special assessment debt payable----2,350 4,474,480 688,388 5,162,868-1,425,000 Current portion of general obligation bonds payable 23,971,346 3,578,729 27,550,075 183,046 2,666,885 Total current liabilities Noncurrent liabilities: Accrued liabilities 151,818-151,81839,222 - Compensated absences 755,612 178,087933,69926,893 - Security deposits returnable----5 7,564 OPEB obligation 3,121,647 397,680 3,519,327-13,338 KPERS OPEB obligation 349,412 156,983 506,3958,186- Net pension liability 28,968,806 3,148,126 32,116,932 331,750 632,856 Loans payable 12,199,016 21,999,823 34,198,839-- Revenue bonds payable-10,407,17510,407,175 -- Special assessment debt payable----2,455 General obligation bonds payable 53,149,428 3,428,127 56,577,555-20,982,297 -2,048,896 2,048,896-- Landfill post-closure care liabilities 98,695,739 41,764,897 140,460,636 406,051 21,688,510 Total noncurrent liabilities 122,667,085 45,343,626 168,010,711 589,097 24,355,395 Total liabilities Deferred inflows of resources: Unavailable revenue - property taxes 13,423,860-13,423,8608,599- KPERS OPEB deferred inflows of resources 66,990 30,097 97,0872,476- OPEB deferred inflows of resources 146,354 18,645 164,999-4,694 1,275,958 149,620 1,425,578 15,79136,718 Pension deferred inflows of resources 14,913,162 198,362 15,111,524 26,866 41,412 Total deferred inflows of resources $ 137,580,247$ 45,541,988$ 183,122,235$ 615,963$ 24,396,807 Total liabilities and deferred inflows of resources Net Position Net investment in capital assets$ 63,300,942151,527,232$ $ 5,020,712214,828,174$ $ 21,698,665 Restricted for: Permanent funds: Expendable 527,536-527,53611,334 - Debt service 1,142,418 1,367,8942,510,312-- \[14,838,672\] 28,882,98514,044,313 1,745,212 804,120 Unrestricted $ 138,358,514$ 93,551,821$ 231,910,335$ 6,777,258$ 22,502,785 Total net position The notes to the basic financial statements are an integral part of this statement. 1 CITY OF SALINA, KANSAS STATEMENT OF ACTIVITIES For the Year Ended December 31, 2019 Net \[Expenses\] Revenue and Changes in Net Position Program RevenuesPrimary GovernmentComponent Units OperatingCapitalTotalTotalTotalSalinaSalina Charges forGrants andGrants andGovernmentalBusiness-typePrimaryHousingAirport ExpensesServicesContributionsContributionsActivitiesActivitiesGovernmentAuthorityAuthority !"#$%&'$&()* )+(,#,(,$-. General government$ 3,400,88310,865,700$ $ 750,696$-$ \[6,714,121\]$-$ \[6,714,121\]$--$ Public safety 25,357,782 4,356,956 1,365,509-\[19,635,317\]-\[19,635,317\]-- Public works 10,528,485 309,292 1,438,330-\[8,780,863\]-\[8,780,863\]-- Public health and sanitation1,156,165 45,549 277,304-\[833,312\]-\[833,312\]-- Culture and recreation 6,879,281 1,513,628 578,558-\[4,787,095\]-\[4,787,095\]-- Planning and development2,522,266 103,727 129,662-\[2,288,877\]-\[2,288,877\]-- 2,168,897 --- \[2,168,897\]-\[2,168,897\]-- Interest on long-term debt 59,478,576 9,730,035 4,540,059-\[45,208,482\]-\[45,208,482\]-- Total governmental activities /0-,&$--1(23$ )+(,#,(,$-. Solid Waste Disposal2,871,468 3,082,199 ---210,731 210,731 -- Water and Sewer14,293,758 20,255,017 ---5,961,259 5,961,259 -- Sanitation2,265,646 3,275,987 ---1,010,341 1,010,341 -- 888,494 809,636--- \[78,858\] \[78,858\]-- Golf Course 20,319,366 27,422,839--- 7,103,473 7,103,473-- Total business-type activities \[45,208,482\] 7,103,473 \[38,105,009\]-- $ 79,797,942$37,152,874$ 4,540,059$- Total primary government 4"'3"&$&( 0&,(-. Salina Housing Authority2,813,581$ 407,030$ 2,128,578$ 70,557$ ---\[207,416\] - 6,167,660 2,432,958 - 1,727,674---- \[2,007,028\] Salina Airport Authority --- \[207,416\] \[2,007,028\] $ 8,981,241$ 2,839,988$ 2,128,578$ 1,798,231 Total component units !$&$%)* 5$#$&0$-. Property taxes levied for General purposes9,707,788 -9,707,788-2,371,463 Debt service2,663,942 -2,663,942-- Motor vehicle tax General purposes1,402,643 -1,402,643-- Sales tax General purposes13,418,742 -13,418,742-- Selective purposes9,323,065 -9,323,065-- Other taxes General purposes6,975,000 -6,975,000-- Investment revenues669,909 -669,90928,136 17,954 Miscellaneous 846,5931,168,245 2,014,83883,865 21,263 4,781,500 \[4,781,500\]--- Transfers, net 50,110,834 \[3,934,907\] 46,175,927 112,001 2,410,680 Subtotal general revenues 4,902,352 3,168,566 8,070,918 \[95,415\] 403,652 Change in net position Net position - beginning 133,451,840 90,383,255 223,835,095 6,872,673 22,099,133 4,322-4,322-- Prior period adjustment 133,456,162 90,383,255 223,839,417 6,872,673 22,099,133 Net position - beginning, restated $138,358,514$ 93,551,821$231,910,335$6,777,258$22,502,785 Net position - ending The notes to the basic financial statements are an integral part of this statement. 1 CITY OF SALINA, KANSAS BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2019 Tourism andSpecialSales Tax GeneralConventionGasCapital ASSETS Cash and investments8,106,861$ 853$ 1,910,307$ 2,712,288$ Restricted cash---- Receivables (net) Accounts1,628,614 450,217 -- Taxes10,430,287 -327,922- Interest9,518 --- Inventory211,986 --- ---- Due from other funds $ 20,387,266$ 451,070$ 2,238,229$ 2,712,288 Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable708,270$ -$45,246$ 139,896$ Retainage payable--2,005 166,517 Temporary notes payable---- ---- Due to other funds 708,270-47,251306,413 Total liabilities Deferred inflows of resources Unavailable revenue - property taxes10,236,618 --- 135,204--- Unavailable revenue - other 10,371,822--- Total deferred inflows of resources Fund balance: Nonspendable211,986 --- Restricted-451,0702,120,391 - Committed---1,666,423 Assigned273,808 -70,587739,452 8,821,380--- Unassigned 9,307,174 451,070 2,190,9782,405,875 Total fund balances Total liabilities, deferred inflows of $ 20,387,266$ 451,070$ 2,238,229$ 2,712,288 resources and fund balances SchillingOtherTotal CapitalDebtCapitalSFHGovernmentalGovernmental ImprovementServiceProjectsQalicBFundsFunds $ 1,089,3251,949,346$ 7,314,875$ 8,148$ 4,861,928$ 27,953,931$ ---907,687 -907,687 ---864,660 2,0122,945,503 -3,105,131---13,863,340 -----9,518 -----211,986 - - 349,515--349,515 $ 1,949,346$ 4,194,456$ 7,664,390$ 1,780,495$ 4,863,940$ 46,241,480 $--$2,455,027$ -$193,423$ 3,541,862$ --1,691,417 120,559 -1,980,498 --11,170,000 --11,170,000 - -- 349,515-349,515 -- 15,316,444 470,074 193,423 17,041,875 -3,052,038---13,288,656 -----135,204 -3,052,038--- 13,423,860 -----211,986 -1,142,418--1,509,770 5,223,649 -152,5761,310,4211,941,623 3,015,015 8,086,058 7,723---145,732 1,237,302 -- \[7,804,630\]--1,016,750 1,949,346 1,142,418 \[7,652,054\] 1,310,421 4,670,517 15,775,745 $ 1,949,346$ 4,194,456$ 7,664,390$ 1,780,495$ 4,863,940$ 46,241,480 The notes to the basic financial statements are an integral part of this statement. 1 CITY OF SALINA, KANSAS RECONCILIATION OF THE TOTAL GOVERNMENTAL FUND BALANCE TO NET POSITION OF GOVERNMENTAL ACTIVITIES December 31, 2019 Total Governmental Fund Balances15,775,745$ Amounts reported for governmental activities in the statement of net position are different because Bond issuance costs are shown as current year expenditures in the funds. Bond issuance costs71,376 Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds The cost of capital assets is349,234,538 126,991,328 Accumulated depreciation is 222,243,210 Pension contributions are reported as an expense in the funds and as a deferred outflow of resources in the governmental activities in the statement of net position. 4,976,291 Pension fundings are reported as a revenue in the funds and as a deferred inflow of resources in the governmental activities in the statement of net position. \[1,479,693\] Certain intrafund transactions have been eliminated between the City's primary funds and the QALICB blended component unit.\[864,660\] An internal service fund is used by the City's management to charge the costs of the worker's compensation program. The assets and liabilities of the internal service fund are included with governmental activities.2,565,728 The following liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. These liabilities at year end consist of: Compensated absences2,754,631 Net OPEB obligation3,460,931 Net pension liability28,812,538 Bonds payable57,623,908 Loans payable12,199,016 78,459 \[104,929,483\] Accrued interest on the bonds $ 138,358,514 Net Position of Governmental Activities The notes to the basic financial statements are an integral part of this statement. 19 CITY OF SALINA, KANSAS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS For the Year Ended December 31, 2019 Tourism andSpecialSales Tax GeneralConventionGasCapital REVENUES: Taxes Real estate taxes9,561,490$ -$-$-$ Delinquent taxes146,298 --- Motor vehicle taxes1,093,438 --- General sales taxes13,418,742 --- Selective sales taxes---8,500,559 Other taxes5,086,492 1,888,508 -- Intergovernmental1,351,967 -1,433,830- Special assessments---- Licenses and permits---- Charges for services5,816,485 --- Investment revenue613,249 --- Donations---- 690,676 -432,910- Miscellaneous 37,778,837 1,888,508 1,866,740 8,500,559 Total revenues EXPENDITURES: Current General government4,581,505 --- Public safety23,692,445 --- Public works5,473,414 -406,058- Public health and sanitation816,636 --- Culture and recreation4,379,441 --- Planning and development836,690 1,046,945 -- Miscellaneous---- Capital outlay985,861 -962,1634,733,263 Debt service Principal retirement---- - --- Interest and other charges 40,765,992 1,046,945 1,368,221 4,733,263 Total expenditures Excess \[deficiency\] of revenue and other sources \[2,987,155\] 841,563 498,519 3,767,296 over \[under\] expenditures and other \[uses\] OTHER FINANCING SOURCES \[USES\] Issuance of bonds---- Issuance of temporary notes---- Bond premium---- Capital contribution---- Transfers in6,449,500 -160,000- \[897,748\] \[848,875\]-\[3,326,350\] Transfers \[out\] 5,551,752 \[848,875\] 160,000\[3,326,350\] Total other financing sources \[uses\] 2,564,597 \[7,312\] 658,519 440,946 Net change in fund balance Fund balance - Beginning of year6,742,577 458,382 1,532,459 1,984,324 --- \[19,395\] Prior period adjustment 6,742,577 458,382 1,532,459 1,964,929 Fund balance - Beginning of year, restated $ 9,307,174$ 451,070$ 2,190,978$ 2,405,875 Fund balance - End of year SchillingOtherTotal CapitalDebtCapitalSFHGovernmentalGovernmental Improvement ServiceProjectsQalicBFundsFunds $2,620,653-$ -$-$-$12,182,143$ -43,289---189,587 -309,205---1,402,643 -----13,418,742 ---- 822,506 9,323,065 -----6,975,000 ----1 ,787,5654,573,362 -1,540,28555,845 --1,596,130 ----4 ,500 4,500 ---492,917 494,470 6,803,872 20,767--6,460 29,433 669,909 ----9 0,084 90,084 - 94,519 282,720-43,956 1,544,781 20,767 4,607,951 338,565 499,377 3,272,514 58,773,818 -----4,581,505 -----23,692,445 ---- 256,444 6,135,916 ---- 303,950 1,120,586 ----1 ,667,994 6,047,435 ---31,600 396,101 2,311,336 ----3535 207,547-13,751,490175,278 1,096,882 21,912,484 -5,413,0154,725,999-185,00010,324,014 - 1,536,834 352,011 200,04447,278 2,136,167 207,547 6,949,849 18,829,500 406,922 3,953,684 78,261,923 \[186,780\] \[2,341,898\] \[18,490,935\] 92,455 \[681,170\] \[19,488,105\] --11,090,000 --11,090,000 ------ --442,878 --442,878 ------ -1,632,958--1,472,014 9,714,472 -----\[5,072,973\] -1,632,958 11,532,878-1,472,014 16,174,377 \[186,780\] \[708,940\] \[6,958,057\] 92,455 790,844 \[3,313,728\] 2,136,126 1,851,358 \[693,997\] 1,217,966 3,861,345 19,090,540 ---- 18,328 \[1,067\] 2,136,126 1,851,358 \[693,997\] 1,217,966 3,879,673 19,089,473 $ 1,949,346$ 1,142,418$ \[7,652,054\]$ 1,310,421$ 4,670,517$ 15,775,745 The notes to the basic financial statements are an integral part of this statement. CITY OF SALINA, KANSAS RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE WITH THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES For the Year Ended December 31, 2019 Total Net Change In Fund Balances - Governmental Funds$ \[3,313,728\] Amounts reported for governmental activities in the statement of activities are different because Capital outlays to purchase or build assets are reported in governmental funds as expenditures. However, for governmental activities those costs are shown in the statement of net position and allocated over their estimated useful lives as annual depreciation expenses in the statement of activities. This is the amount by which capital outlays exceeds depreciation in the period. Gain/\[Loss\] on sale of assets \[8,190\] Capital outlays17,835,539 \[6,240,802\] Depreciation expense 11,586,547 Interest on long-term debt in the statement of activities differs from the amount reported in the governmental funds because interest is recorded as an expenditure in the funds when it is due, and thus requires the use of current financial resources. In the statement of activities, however, interest expense is recognized as the interest accrues, regardless of when it is due. This is the amount by which interest decreased.29,485 An internal service fund is used by the city's management to charge the costs of certain activities to the individual funds. The revenues and expenses of certain internal service fund is reported with governmental activities.1,597,174 Certain intrafund transactions have been eliminated between the City's primary funds and the QALICB blended component unit.\[834,660\] Some expenses reported in the statement of activities, such as compensated absences and other post employment benefits, do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. \[29,980\] Pension payments are reported as expenditures in the governmental funds and do not affect the statement of net activities.\[999,728\] Bond, temporary note, loan and lease proceeds are other financing sources in the governmental funds, but they increase long-term liabilities in the statement of net position and do not affect the statement of activities. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items.\[17,550,023\] Repayment of bond principal and bond issuance costs is an expenditure in the governmental funds, but it reduces long-term liabilities in the statement 14,417,265 of net position and does not affect the statement of activities. $ 4,902,352 Changes In Net Position of Governmental Activities The notes to the basic financial statements are an integral part of this statement. CITY OF SALINA, KANSAS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) GENERAL FUND For the Year Ended December 31, 2019 Variance with Final Budget Budgeted Amounts Positive Actual OriginalFinal\[Negative\] Revenues Taxes Real estate taxes9,561,490$ 9,582,319$ 9,582,319$ \[20,829\]$ Delinquent taxes146,298 160,000 160,000 \[13,702\] Motor vehicle taxes1,073,265 1,008,720 1,008,720 64,545 General sales tax13,418,742 13,829,194 13,829,194 \[410,452\] Other taxes6,286,492 7,085,901 7,085,901 \[799,409\] Intergovernmental1,351,967 1,135,255 1,135,255 216,712 Charges for services4,051,536 5,907,154 5,907,154 \[1,855,618\] Investment revenue892,731 10,000 10,000 882,731 690,673 632,907 632,907 57,766 Miscellaneous 37,473,194 39,351,450 39,351,450 \[1,878,256\] Total revenues Expenditures General government4,456,184 3,523,226 3,523,226 \[932,958\] Public safety22,165,691 21,044,550 21,044,550 \[1,121,141\] Public works5,524,886 5,652,826 5,652,826 127,940 Public health and sanitation816,636 --\[816,636\] Culture and recreation4,375,589 5,361,919 5,361,919 986,330 Planning and development1,069,690 3,437,251 3,437,251 2,367,561 713,625 6,985,000 6,985,000 6,271,375 Capital outlay 39,122,301 46,004,772 46,004,772 6,882,471 Total expenditures Excess \[deficiency\] of revenues \[1,649,107\] \[6,653,322\] \[6,653,322\] 5,004,215 over \[under\] expenditures Other financing sources \[uses\] Transfers in5,249,500 3,841,500 3,841,500 1,408,000 \[897,748\] \[3,076,760\] \[3,076,760\] 2,179,012 Transfers \[out\] 4,351,752 764,740 764,740 3,587,012 Total other financing sources \[uses\] Excess \[deficiency\] of revenues and other sources over \[under\] expenditures and other \[uses\]2,702,645 \[5,888,582\] \[5,888,582\] 8,591,227 4,286,934 5,983,397 5,983,397 \[1,696,463\] Unreserved fund balance, January 1 $ 94,815$ 94,815$ 6,894,764 Unreserved fund balance, December 31 6,989,579 Reconciliation to GAAP Interest receivable9,518 Accounts receivable1,628,614 Taxes receivable10,430,287 Inventory 211,986 Deferred revenue\[10,236,618\] 273,808 Current year encumbrances $ 9,307,174 GAAP Fund Balance, December 31 See independent auditor's report on the financial statements. CITY OF SALINA, KANSAS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) TOURISM AND CONVENTION FUND For the Year Ended December 31, 2019 Variance with Final Budget Budgeted Amounts Positive ActualOriginalFinal\[Negative\] Revenues Other taxes1,895,820$ 1,656,562$ 1,895,900$ \[80\]$ -150-- Investment revenue 1,895,820 1,656,712 1,895,900\[80\] Total revenues Expenditures 1,046,945 914,818 1,046,945- Planning and development 1,046,945 914,818 1,046,945- Total expenditures Excess \[deficiency\] of revenues 848,875 741,894 848,955\[80\] over \[under\] expenditures Other financing sources \[uses\] \[848,875\]\[741,744\]\[848,875\]- Transfers \[out\] \[848,875\]\[741,744\]\[848,875\]- Total other financing sources \[uses\] Excess \[deficiency\] of revenues and other sources over \[under\] expenditures and other \[uses\]-15080\[80\] 853 63,187853- Unreserved fund balance, January 1 $ 63,337$ 933$\[80\] Unreserved fund balance, December 31853 Reconciliation to GAAP 450,217 Accounts receivable $ 451,070 GAAP Fund Balance, December 31 See independent auditor's report on the financial statements. 23 CITY OF SALINA, KANSAS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) SPECIAL GAS FUND For the Year Ended December 31, 2019 Variance with Final Budget Budgeted Amounts Positive ActualOriginalFinal\[Negative\] Revenues Intergovernmental1,426,232$ 1,417,590$ 1,417,590$ 8,642$ Miscellaneous432,910 --432,910 -3,000 3,000\[3,000\] Investment revenue 1,859,142 1,420,590 1,420,590 438,552 Total revenues Expenditures Public works406,058 525,830 525,830 119,772 859,528 946,243 946,243 86,715 Capital outlay 1,265,586 1,472,073 1,472,073 206,487 Total expenditures Excess \[deficiency\] of revenues 593,556\[51,483\]\[51,483\] 645,039 over \[under\] expenditures Other financing sources \[uses\] 160,000 160,000 160,000- Transfers in 160,000 160,000 160,000- Total other financing sources \[uses\] Excess \[deficiency\] of revenues and other sources over \[under\]753,556 108,517 108,517 645,039 expenditures and other \[uses\] 1,038,913 899,157 899,157 139,756 Unreserved fund balance, January 1 $ 1,007,674$ 1,007,674$ 784,795 Unreserved fund balance, December 311,792,469 Reconciliation to GAAP Taxes receivable327,922 70,587 Current year encumbrances $ 2,190,978 GAAP Fund Balance, December 31 See independent auditor's report on the financial statements. 24 CITY OF SALINA, KANSAS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) SALES TAX CAPITAL FUND For the Year Ended December 31, 2019 Variance with Final Budget Budgeted Amounts Positive ActualOriginalFinal\[Negative\] Revenues Taxes Selective sales taxes8,500,559$ 8,758,780$ 8,758,780$ \[258,221\]$ -5,000 5,000 \[5,000\] Investment revenue 8,500,559 8,763,780 8,763,780\[263,221\] Total revenues Expenditures 4,944,758 6,541,080 6,541,080 1,596,322 Capital outlay 4,944,758 6,541,080 6,541,080 1,596,322 Total expenditures Excess \[deficiency\] of revenues 3,555,801 2,222,700 2,222,700 1,333,101 over \[under\] expenditures Other financing sources \[uses\] \[3,326,350\]\[3,073,878\]\[3,073,878\]\[252,472\] Transfers \[out\] \[3,326,350\]\[3,073,878\]\[3,073,878\]\[252,472\] Total other financing sources \[uses\] Excess \[deficiency\] of revenues and other sources over \[under\] expenditures and other \[uses\]229,451 \[851,178\]\[851,178\]1,080,629 1,436,972 1,763,089 1,763,089\[326,117\] Unreserved fund balance, January 1 $ 911,911$ 911,911$ 754,512 Unreserved fund balance, December 311,666,423 Reconciliation to GAAP 739,452 Current year encumbrances $ 2,405,875 GAAP Fund Balance, December 31 See independent auditor's report on the financial statements. 25 CITY OF SALINA, KANSAS STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31, 2019 Business-Type Activities: Enterprise Funds TotalInternal Solid WasteWater andEnterpriseService Disposal SewerSanitationGolf CourseFundsFunds Assets and deferred outflows of resources: Current assets: Cash and investments6,874,432$ 26,289,593$ 1,754,760$38,143$ 34,956,928$ 3,452,453$ Receivables (net of allowance for uncollectibles) Accounts198,322 1,578,182 257,378 -2,033,882- Interest16---16- - 439,223-38,421 477,644 127,892 Inventory and prepaid supplies 7,072,770 28,306,998 2,012,138 76,564 37,468,470 3,580,345 Total current assets Capital assets: Nondepreciable capital assets: Construction in progress-7,526,968--7,526,968 - Land682,000 1,689,334-15,0002,386,334 - Depreciable capital assets: Capital assets11,313,026 147,231,395 2,564,420 1,253,071162,361,912 168,234 10,498,484 58,491,492 1,399,557 806,363 71,195,896 153,601 Less: accumulated depreciation 1,496,542 97,956,205 1,164,863 461,708 101,079,318 14,633 Total capital assets 8,569,312 126,263,203 3,177,001 538,272 138,547,788 3,594,978 Total assets Deferred outflows of resources: KPERS OPEB deferred outflows of resources4,248 29,737 7,080 2,832 43,897 2,832 OPEB deferred outflows of resources9695,0011,500 4497,919- Pension deferred outflows of resources 61,369 326,317 75,354 21,240 484,280 22,769 - 9,925--9,925- Deferred charge on bond issuance 66,586 370,980 83,934 24,521 546,021 25,601 Total deferred outflows of resources $ 8,635,898$ 126,634,183$3,260,935$ 562,793$ 139,093,809$3,620,579 Total assets and deferred outflows of resources Liabilities and deferred inflows of resources: Current liabilities Accounts payable26,442$ 388,113$ 29,160$ $ 4,479$ 448,194$ 46,410 Retainage payable-153,409--153,409 - Interest payable 5,262320,614--325,876 - Meter deposits payable-229,447--229,447 - Current portion of compensated absences payable 36,027273,585107,850 61,090 478,552 22,917 Current portion of accrued claims payable-----649,172 Current portion of loans payable-539,863--539,863 - Current portion of general obligation bonds payable 35,000653,388--688,388 - - 715,000-- 715,000- Current portion of revenue bonds payable 102,731 3,273,419 137,010 65,569 3,578,729 718,499 Total current liabilities Noncurrent liabilities: Compensated absences payable13,407 101,811 40,135 22,734 178,087 8,529 Accrued claims payable-----151,818 OPEB obligation 48,676 251,12575,310 22,569 397,680- KPERS OPEB obligation 15,192 106,343 25,320 10,128 156,983 10,128 Net pension liability 383,854 2,076,508 527,697 160,067 3,148,126 156,268 Payable from restricted assets Loans payable-21,999,823--21,999,823 - General obligation bonds payable 355,0003,073,127--3,428,127 - Revenue bonds payable-10,407,175--10,407,175 - 2,048,896 --- 2,048,896- Landfill post-closure care liabilities 2,865,025 38,015,912 668,462 215,498 41,764,897 326,743 Total noncurrent liabilities 2,967,756 41,289,331 805,472 281,067 45,343,626 1,045,242 Total liabilities Deferred inflows of resources KPERS OPEB deferred inflows of resources2,913 20,388 4,854 1,942 30,097 1,942 OPEB deferred inflows of resources2,282 11,774 3,531 1,058 18,645 - 22,469 93,911 26,326 6,914 149,620 7,667 Pension deferred inflows of resources 27,664 126,073 34,711 9,914 198,362 9,609 Total deferred inflows of resources $ 2,995,420$ 41,415,404$ 840,183$ 290,981$ 45,541,988$1,054,851 Total liabilities and deferred inflows of resources Net position Net investment in capital assets1,106,542$ 60,567,829$ 1,164,863$461,708$ 63,300,942$ 14,633$ Restricted Restricted for bond retirement-1,367,894 - - 1,367,894 - 4,533,936 23,283,056 1,255,889 \[189,896\] 28,882,985 2,551,095 Unrestricted $ 5,640,478$ 85,218,779$2,420,752$ 271,812$ 93,551,821$2,565,728 Total net position The notes to the basic financial statements are an integral part of this statement. CITY OF SALINA, KANSAS STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUNDS For the Year Ended December 31, 2019 Business-Type Activities: Enterprise Funds TotalInternal Solid WasteWater andEnterpriseService DisposalSewerSanitationGolf CourseFundsFunds Operating revenues Charges for services3,082,199$ 20,255,017$3,275,987$809,636$ 27,422,839$ 7,798,835$ 416,369 332,662-97,562 846,593 60,303 Miscellaneous 3,498,568 20,587,679 3,275,987 907,198 28,269,432 7,859,138 Total operating revenues Operating expenses General government-----8,982,331 Public works1,995,726 9,678,876 2,090,924 -13,765,526- Recreation---840,279 840,279- 853,537 3,333,943 174,722 48,2154,410,417 7,699 Depreciation 2,849,263 13,012,819 2,265,646 888,494 19,016,222 8,990,030 Total operating expenses 649,305 7,574,860 1,010,341 18,704 9,253,210 \[1,130,892\] Operating income \[loss\] Nonoperating revenues \[expenses\] Interest expense\[22,205\] \[1,129,127\] --\[1,151,332\] - Accretion of bond premium-55,915--55,915 - -\[207,727\]-- \[207,727\]- Amortization of bond issuance costs \[22,205\] \[1,280,939\]-- \[1,303,144\]- Total nonoperating revenues \[expenses\] 627,100 6,293,921 1,010,341 18,704 7,950,066 \[1,130,892\] Income \[loss\] before transfers Transfers from \[to\] other funds Transfers in-----140,000 \[640,000\] \[3,650,000\] \[491,500\]-\[4,781,500\]- Transfers \[out\] \[640,000\] \[3,650,000\] \[491,500\]-\[4,781,500\] 140,000 Total transfers Change in net position \[12,900\] 2,643,921 518,841 18,704 3,168,566 \[990,892\] Net position, January 1 5,653,378 82,580,128 1,896,641 253,108 90,383,255 3,556,620 -\[5,270\] 5,270--- Prior period adjustment 5,653,378 82,574,858 1,901,911 253,108 90,383,255 3,556,620 Net position, January 1, restated $ 5,640,478$85,218,779$2,420,752$ 271,812$ 93,551,821$2,565,728 Net position, December 31 The notes to the basic financial statements are an integral part of this statement. CITY OF SALINA, KANSAS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended December 31, 2019 Business-Type Activities: Enterprise Funds TotalInternal Solid WasteWater andEnterpriseService Disposal SewerSanitationGolf CourseFundsFunds Cash flows from operating activities Cash received from customers and users3,073,363$20,427,626$3,272,401$809,636$ 27,583,026$7,980,067$ Cash paid to suppliers of goods or services\[1,264,517\]\[5,412,123\] \[1,144,660\]\[315,480\] \[8,136,780\] \[8,734,446\] Cash paid to employees \[677,451\] \[4,192,802\] \[926,570\] \[535,122\] \[6,331,945\] \[288,556\] 416,369 332,662-97,562 846,593 60,303 Other operating receipts 1,547,764 11,155,363 1,201,171 56,596 13,960,894 \[982,632\] Net cash provided by \[used in\] operating activities Cash flows from capital and related financing activities Purchase and construction of capital assets-\[13,963,235\]\[453,771\] \[99,848\] \[14,516,854\]- Proceeds from bonds-10,330,000--10,330,000- Proceeds from loans-12,434,835--12,434,835- Principal payments - loans-\[527,499\]--\[527,499\] - Principal payments - general obligation bonds\[390,000\] \[768,198\]--\[1,158,198\]- Principal payments - revenue bonds-\[11,850,000\]--\[11,850,000\]- \[22,918\] \[1,051,885\]--\[1,074,803\]- Interest paid Net cash provided by \[used in\] capital \[412,918\] \[5,395,982\] \[453,771\] \[99,848\] \[6,362,519\]- and related financing activities Cash flows from investing activities - ----- Interest received Cash flows from noncapital financing activities Transfers in-----140,000 \[640,000\] \[3,650,000\] \[491,500\]-\[4,781,500\]- Transfers \[out\] \[640,000\] \[3,650,000\] \[491,500\]-\[4,781,500\] 140,000 Net cash provided by \[used in\] noncapital financing activities 494,846 2,109,381 255,900 \[43,252\] 2,816,875 \[842,632\] Net increase \[decrease\] in cash and cash equivalents Cash and cash equivalents, January 1 6,379,586 24,185,482 1,493,590 32,140,05381,395 4,295,085 -\[5,270\] 5,270--- Prior period adjustment 6,379,586 24,180,212 1,498,860 81,395 32,140,053 4,295,085 Cash and cash equivalents, January 1, restated $6,874,432$26,289,593$1,754,760$ 38,143$34,956,928$3,452,453 Cash and cash equivalents, December 31 The notes to the basic financial statements are an integral part of this statement. CITY OF SALINA, KANSAS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS (Continued) For the Year Ended December 31, 2019 Business-Type Activities: Enterprise Funds TotalInternal Solid WasteWater andEnterpriseService Disposal SewerSanitationGolf CourseFundsFunds Reconciliation of operating \[loss\] income to net cash provided by \[used in\] operating activities Operating income \[loss\]649,305$ 7,574,860$ 1,010,341$18,704$ 9,253,210$ \[1,130,892\]$ Adjustments to reconcile operating income \[loss\] to net cash provided by \[used in\] operating activities Depreciation expense853,537 3,333,943 174,722 48,215 4,410,417 7,699 \[Increase\] decrease in accounts receivable\[8,836\] 127,020 \[3,586\] -114,598- \[Increase\] decrease in inventory-7,848-\[3,944\]3,904\[16,406\] \[Increase\] decrease in deferred outflows5,290 31,9557,902 2,92048,0671,085 Increase \[decrease\] in accounts payable2,199 108,8183,706 \[14,751\]99,972\[1,962\] Increase \[decrease\] in retainage payable-\[73,568\]--\[73,568\]- Increase \[decrease\] in accrued compensated absences\[21,204\] \[4,797\]7,606 5,517 \[12,878\]\[27,942\] Increase \[decrease\] in claims payable-----181,232 Increase \[decrease\] in net pension liability3,546 22,4965,297 1,96933,3081,719 Increase \[decrease\] in net KPERS OPEB obligation \[1,216\]\[3,042\]\[2,026\] \[811\]\[7,095\]4,659 Increase \[decrease\] in net OPEB obligation4442,284 686 2043,618- Increase \[decrease\] in meter deposits payable-45,589--45,589- \[2,699\]\[18,043\] \[3,477\] \[1,427\]\[25,646\] \[1,824\] Increase \[decrease\] in deferred inflows $ 1,547,764$11,155,363$1,201,171$ 56,596$13,960,894$ \[982,632\] Net cash provided by \[used in\] operating activities The notes to the basic financial statements are an integral part of this statement. CITY OF SALINA, KANSAS STATEMENT OF ASSETS AND LIABILITIES AGENCY FUNDS December 31, 2019 ASSETS $ 270,096 Cash and investments $ 270,096 Total assets LIABILITIES AND FUND BALANCES Liabilities $ 270,096 Accounts payable $ 270,096 Total liabilities The notes to the basic financial statements are an integral part of this statement. 30 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A.Reporting Entity The City of Salina, Kansas (the City) is a municipal corporation governed by a mayor as part of afive-member commission. These financial statements present the City and its component units, entities for which the to be financially accountable. Each discretely presented component unit is government is considered reported in a separate column in the government wide statements(see note below for descriptions)to emphasize that it is legally separated from the government.The blended component unit is reported as a governmental fund of the City (see note below for description) to emphasize that it is a part of the city. Discretely Presented Component Units City of Salina Airport Authority -The Salina Airport Authority was created for the purpose of accepting as surplus property portions of the former Schilling A.F.B that was closed by the United States Department of in June1965. One of the primary functions of the Airport Authority is to Defense 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. Any director may be removed by a =&`+>#*- ?+*( +. *"( 7&,#)& 2#*- 2+==#$$#+)1 !"( 8#>%+>* 8@*"+>#*-P$ /&$#A =#,, ,(?- \]@% *+ E =#,,$^ >(_@#>($ *"( approval of the City Commi ssion. The Commission must also approve the issuance of general obligation debt by the Airport Authority. 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 Mayor of the City of Salina appoints the governing board. The City Commission may remove commissioners of the Housing Authority. The City must issue revenue bonds for the Housing Authority. The financial liability of under the Housing Authority is essentially supported by the operating and debt service subsidies received contract from the Federal government. The Housing Authority has a June 30 fiscal year end. Information in the accompanying financial statements covers the fiscal year ended June 30, 2019. Blended Component Unit SalinaField House Qualified Active Low-Income Community Business, Inc.(SFH QalicB)-SFH QalicB was created to functionas a qualified low-income community business, as defined in Section 45D(d)(2) of the Internal Revenue Code of 1986 for the purpose of providing an indoor sports facility in the downtown corridor of the City of Salina. The purpose of the facility is to cater to local residents as well as host regional sports of becoming a regional destination for youth athletics. This tournaments with the anticipation mix of participation is expected to provide the most consistent visitation and tourism for the downtown district. The Salina City SFH QalicB is managed and controlled by a five-member Board of Directors appointed by the Commission. The field house is staffed by City of Salina employees. SFH QalicB has a December 31 fiscal year he end.SFH QalicBis a not-for-profit organization exempt from income tax under Section 50l(c)(3)oft Internal Revenue Code and is exempt from similar state and local taxes. Complete financial statements for each of the individual component units may be obtained at the ()*#*-P$ administrative offices. Salina Airport AuthorityHousing Authority ofSalina Field House 3237 Arnold Ave.the City of SalinaQALICB, Inc. Salina, KS469 S. 5th300 W. Ast St. Salina, KSSalina, KS Joint Ventures The City of Salina also participates with Saline County in one joint venture. The City and County organized the Salina County-City Building Authority to acquire, operate and maintain facilities for the administrative offices of both governments. The primary governments each have an ongoing financial responsibility for thejoint venture. Separate financial statements are available from the governing board of the joint venture. 31 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) A.Reporting Entity (Continued) Joint Ventures (Continued) (Kansas Regulatory Basis) Building Authority (Audited) Total unencumbered cash, December 31, 2019$ 1,596,458 Total change in unencumbered cash, year ended December 31, 2019301,873 Total cash receipts, year ended December 31, 20191,533,357 Total cash receipts from City of Salina480,585 2+=%,(*( .#)&)A#&,$*&*(=()*$ .+> *"( `+#)* ?()*@>(=&- /( +/*&#)(C &* *"(()*#*-P$ &C=#)#$*>&*#?( +..#A(1 Salina County-City Building Authority 300 West Ash Street Salina, KS B.Government-wide and fund financial statements The statement of net positionand the statement of activities report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Exceptions to this general rule are charges /(*W(() *"( 2#*-P$ governmental and business-type activities. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Governmental activities, which normally are by taxes and intergovernmental revenues, are reported separately from business-type supported activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain government is financially legally separate component units for which the primary accountable. The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are specifically associated with a service, program or department and therefore clearly identifiable to a particular function. Program revenues include charges paid by the recipient of the goods or services offered by the program and grants and contributions that are restricted to meeting the operational requirements of a particular program. Taxes and other items, which are not classified as program revenues,are presented as general revenues of the city. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual funds are and presented reported as separate columns in the fund financial statements. Nonmajor funds are aggregated in a single column in the fund financial statements. C.Measurement Focus, Basis of Accounting and Basis of Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes recognized are recognized as revenues in the year for which they are levied. Grants and similar items are as revenue as soon as all eligibility requirements imposed by the provider have been met. 32 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C.Measurement Focus, Basis of Accounting and Basis of Presentation(Continued) Governmental fund financial statements are reported using the current financial resources measurement focus the modified accrual basis of accounting. Revenues are recognized as soon as they and are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when aliability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to certain compensated absences and claims and judgments are recognized when the obligations are expected to be liquidated with expendable available financial resources. Property taxes and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Entitlements and shared are recorded at the time of receipt or earlier if the susceptible to accrual criteria are met. Expenditure- revenues driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in net position. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing goods and services in connection with a proprietary .@)CP$ +)'+#)' +%(>&*#+)$1 !"( %>#)A#%&, +%(>&*#)' >(?()@($ +. *"( 2#*-P$ %>+%>#(*&>- .@)C$ &>( A"&>'($ *+ customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capitalassets. All revenue and expenses not meeting this definition are reported as nonoperating revenues and expenses. The internal central service funds account for risk managemen*; W+>0(>P$ A+=%()$&*#+); "(&,*" #)$@>&)A(; garage and information servicesthat are providedto other departments or agencies of the government, or to other governments, on a cost -reimbursement basis. Agency funds are custodial in nature and do not measure results of operations or have a measurement focus. Agency funds dohowever use the accrual basis of accounting.Agency funds are used to account for assets held as an agent for individuals, other governmental units, private organizations and/or other funds. The City reports the following major governmental funds: General Fund -Toaccount for resources traditionally associated with government, which are not required legally,or by sound financial management to be accounted for in another fund. Tourism and Convention Fund -To account for transient guest tax revenues, which are specifically restricted to promotion and tourism activities. 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. Sales Tax Capital Fund -To account for 58% of the 1.25cent sales tax designated for capital, debt, and human services purposes. Schilling Capital Improvement Fund-To account for the funding provided by U.S. Government and Public Entities and the remedial investigation, feasibility study and expenditures necessary to abate groundwater contamination beneath the property formerly identified as Schilling Air Force Base. 33 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C.Measurement Focus, Basis of Accounting and Basis of Presentation (Continued) Debt Service Fund -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. Capital Projects Fund -To account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds. SFH QalicB Fund -To account for the activities of Salina Field House Qualified Active Low-Income Community Business, Inc. as a component unit blended into the financial statements. The City reports thefollowing major proprietary funds: Sanitation Fund -To account for the operations of the City's refuse collection service. Solid Waste Disposal Fund -To account for the activities of the City's landfill. Golf Course Fund -To account for the operations of the municipal golf course. Water and Sewer Fund -To account for the activities of the City's water and sewer operations. D.Assets, Liabilities, Fund Balance, and Net Position 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 .@)C *-%(P$ %+>*#+) +. *"#$ %++, #$ C#$%,&-(C #) *"( .#)&)A#&, $*&*(=()*$&$ k2&$" &)C 3)?($*=()*$1l !"( A#*-P$ cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. Investments in the Kansas Municipal Pool are carried at fair value. Cash balances from all funds are invested to the extent available in certificates of deposit and other authorized investments. Investments with maturity dates greater than three months are stated separately. Earnings from these investments, unless specifically designated, are allocated monthly to the investing fund based on the percentage of funds invested to total investments. All investments are carried at fair value. 2.Receivables and Payables Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end +. *"( -(&> &>( >(.(>>(C *+ &$ (#*"(> k#)*(>.@)C >(A(#?&/,($j%&-&/,($l \]#1(1; *"( A@>>()* %+>*#+) +. #)*(>.@)C ,+&)$^ +> k&C?&)A($ *+j.>+= +*"(> .@)C$l \]#1(1; *"( )+)NA@>>()* %+>*#+) +. #)*(>.@)C ,+&)$^1 8,, +*"(> +@*$*&)C#)' /&,&)A($ /(*W(() .@)C$ &>( >(%+>*(C &$ kC@( *+j.>+= +*"(> .@)C$1l Accounts Receivable. The City records revenues when services are provided. All receivables are shown net of an allowance for doubtful accounts. Property taxes receivable. Collection of current year property tax by the County Treasurer is not completed, apportioned or 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 and, therefore, are not susceptible to accrual. Accruals of uncollected current year property taxes are offset by deferred revenue and are identical to the adopted budget for 2020. It is not practicable to apportion delinquent taxes held by the County Treasurer at the end of the accounting period, and further, the amounts thereof are not material in relationship to the financial statements taken as a whole. 34 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Fund Balance and Net Position (Continued) 2. Receivables and Payables(Continued) The determination of assessed valuations and the collection of property taxes for all political subdivisions in the State of Kansas are the responsibility of the various counties. The County Appraiser annually determines assessed valuations on January 1 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. Property taxes are levied and liens against property are placed on November 1 of the year prior to the fiscal year for which they are budgeted. Payments are due November 1, becoming delinquent, with penalty, December 21. Payments of 50% are accepted through December 20, with the second 50% then being due on or before May 10of the following year. 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 C>&W$ C+W) &,, &?&#,&/,( .@)C$ .>+= *"( 2+@)*- !>(&$@>(>P$ +..#A( #) *W+N=+)*" #)*(>?&,$1 !&\[($ >(=&#)#)' due and unpaid at February 15 and July 1 are subject to collection procedures prescribed in state statutes. 3. Inventories and Prepaid Items Inventories are valued at cost using the first-in/first-out (FIFO) method. The costs of governmental fund-type inventories are recorded as expenditures when consumed. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. 4.CapitalAssets Capitalassets, which include property, plant, equipment and infrastructure assets, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capitalassets are defined by the government as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. Capitalassets used in governmental fund types of the City are recorded at cost or estimated historical cost if purchased or constructed. Donated capitalassets are recorded at their estimated fair value atthe date of donation. The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type is included in the capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same period. Property, plant and equipment of the primary government, are depreciated using the straight-line method over the following estimated useful lives: AssetsYears Buildings50 Other equipment5 -15 Vehicles6 -10 Infrastructure30 -50 35 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D.Assets, Liabilities, Fund Balance, and Net Position(Continued) 5.Compensated Absences 3* #$ *"( 2#*-P$ %+,#A- *+ %(>=#* (=%,+-(($ *+ &AA@mulate 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 that 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. In 2001, a limited buy back policy was instituted. All regular employees are entitled to paid vacation time. Such leave is granted each year of employment. Employees must use 50% of leave accrued each calendar year andan employee's maximum accrued vacation leave balance cannot exceed 250 hours (or 350 hours for employees working 24-hourshifts). Employees are paid for all accumulated vacation leave at their current wage scale upon termination of employment. Vested oraccumulated vacation leave that is expected to be liquidated with expendable available financial resources is reported as an expenditure and a fund liability inthe government fund financial statements that will pay it. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. Vested or accumulated vacation leave of the business-type funds and government wide financial statements arerecorded as an expenseand liability of those funds as the benefits accrue to employees. A liability is recorded for accumulated rights to receive sick pay benefits that are payable upon termination of employment. The General Fund, Bicentennial Center Fund, Central Garage Fund, Sanitation Fund, Solid Waste Fund, Golf Course Fund, and Water and Sewer Fund have been used in prior years to liquidate the liability for compensated absences. 6.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. 7.Long-term Obligations In the government-wide financial statements, and proprietary fund types in the fund financial statements, long- term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. 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 premiumor discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 36 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D.Assets, Liabilities, Fund Balance, and Net Position(Continued) Fund Balances 8. In the fund financial statements, governmental funds report fund balance in the following classifications: nonspendable, restricted, committed, assigned and unassigned. Nonspendable fund balance includes amounts that cannot be spent because they are eithernot in spendable form or legally or contractually required to be maintained intact. Restricted fund balance indicates that constraints have been placed on the use of resources either by being externally imposed by creditors, grantors, contributors, or laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation. Committed fund balances include amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the city commission. Assigned fund balances include amounts that are constrained by the City =&)&'(=()*P$ #)*()* *+ /( @$(C .+> $%(A#.#A %@>%+$($ /@*&>( )(#*"(> >($*>#A*(C )+> A+==#**(C1 M)&$$#')(C fund balance represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available restricted amounts areconsidered to be spent first.When an expenditure is incurred for purposes for which committed, assigned, or unassigned fund balance is available, the following is the order in which resources will be expended: committed, assigned and unassigned. The following is the detail for fund balance classifications in the financial statements: Major Governmental Funds TourismSchillingOtherTotal andSpecialSales TaxCapitalDebtCapitalSFHGovernmentalGovernmental GeneralConventionGasCapitalImprovementServiceProjectsQalicBFundsFunds Fund Balances: Nonspendable for: Inventory211,986$ -$ -$ $ --$ -$ -$ -$ -$ 211,986 $ Restricted for: Public works- 2,120,391- - - - -- 2,120,391- Public health and sanitation- -- - - - - - 234 234 Culture and recreation- -- - - - - 348,866- 348,866 Planning and development-451,070- - - -- 221,075- 672,145 Debt payments- -- --1,142,418- 939,595- 2,082,013 Committed for: Public safety- -- - - - - 351,372- 351,372 Culture and recreation- -- - - - - 587,642- 587,642 Planning and development- -- - - - 1,310,421- 256,847 1,567,268 C emetery- -- - - - - 521,641- 521,641 Capital improvements- -- 1,666,423 1,941,623-152,576-1,297,513 5,058,135 Assigned for: General government 20,255 - - - - - - - 20,255- Public safety- -- - - - - 145,732- 145,732 Public works 19,000 - - - - - - - 19,000- Culture and recreation 1,553 - - - - - - - 1,553- Capital improvements 233,000 70,587- 739,452 7,723 - - - 1,050,762- Unassigned: 8,821,380 - - - - - \[7,804,630\] - - 1,016,750 Total Fund Balances$9,307,174$451,070$2,190,978$2,405,875$1,949,346$1,142,418$\[7,652,054\]$1,310,421$ 4,670,517$15,775,745 37 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D.Assets, Liabilities, Fund Balance, and Net Position(Continued) 9.Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position thatapplies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City reports adeferred charge on bond issuancereported in the government-wide statement of net position. A deferred charge on bond issuanceresults from the difference in the carrying value of the debt and its reacquisition price. This amount is deferred and amortized over the life of the debt.Additionally, changes in the pension and OPEB plan liability proportion and assumptions,net difference between projected and actual earnings on pension plan and OPEB plan investments and differences between pension and OPEB plan liability expected and actual experience are reported as deferred outflows of resources in the government activities. In additionto liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. C#"="'*">*1 31=1#&1D)3.)13-8 -"@1$B is reported in the governmental funds balance sheet and the governmental activities in the government-wide statement of net position. Additionally, differences between expected and actual experience, changes in assumptions, and changes in the pension liabilityand OPEB planproportion are reported as deferred inflows. These amounts are deferred and recognized as aninflow of resources in the period that the amounts become available. 10.Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 11.Net Position Net positionrepresentsthe difference between assets and liabilities. Net investment in capital assetsconsists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction or improvement of those assets. Net positionisreported as restricted when there are limitations imposed on their use either through the enabling legislation adopted by the City or through external restrictions imposed by creditors, grantors or laws or regulations of other governments. Note 2. 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 fund, and enterprise funds. The statutes provide for the following sequence and timetable in the adoption of the legal annual operating budget: 1 .Preparation of the budget for the succeeding year on or before August 1. 2.Publication in local newspaper of the proposed budget and notice of public hearing on the budget on or before August 5. 3 .Public hearing on or before August 15, but at least ten days after publication of notice of hearing. 4.Adoption of the final budget on or before August 25. 38 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued) A.Budgetary Information (Continued) The statutes allow 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 e published in the local newspaper. At le budget must bast ten days after publication the hearing may be held and the governing body may amend the budget at that time. The 2019budget was amended for the Sales Tax Economic Development, Tourism and Convention, Special Alcohol and Health Insurance funds. The statutes permit management to transfer budgeted amounts between line items within an individual fund. However, such statutes prohibit expenditures in excess of the total amount of the adopted budget of expenditures of individual funds. Budget comparison statements are presented for each fund showing actual receipts and expenditures compared to legally budgeted receipts and expenditures. All legal annual operating budgets areprepared using the statutory basis of accounting, in which, revenues are cash is received, and expenditures include disbursements, accounts payable, recognized when 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, the SFH QalicBfund, non-major debt service funds, trust funds, and the following special revenue funds: Community Development Revolving, Downtown th TIF District #1, South 9CID, State Grants, 911 Communications, Kenwood CoveCapital, Special Law Enforcement, Police Grants, Federal Grants, DAREDonations,War Memorial Maintenance, Federal CARE V>&)*; L+,#A( D(%&>*=()* 6(C(>&, 6+>.(#*@>(;b+=(+W)(>$P 8$$#$*&)A(; L>#?&*( V>&)*$&)C Animal Shelter Donations Funds. A legal operating budget is not required for the followingEnterprise funds: Solid Waste , Water and Sewer, Sanitation andGolf CourseFunds. A Disposallegal operating budget is also not required for the Internal Service funds. Actual to budget comparisons for these funds that present budgets to the Commissioners are shown strictly for informational purposes. Spending in funds, whichare 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. B.Legal Debt Margin The City is subject to the municipal finance law of the state of Kansas which limits the bonded debt (exclusive of revenue bonds assessed and special assessment bonds) the city may have outstanding to 30 percent of the value of all tangible taxable property within the city, as certified to the county clerk on the proceeding August 2At December 31, 5.2019, the statutory limit for the City was $152,724,804, providing a debt margin of $85,059,351. 39 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 3. RESTATEMENT OF EQUITY During the year ended December 31, 2019, management discovered certain errors that occurred in the prior year. The effects of these items caused a restatement to net position or fund balance as follows: Sales TaxPoliceWater and GovernmentalCapitalGrantsSewerSanitation ActivitiesFundFundFundFund Net Position/Fund Balance, 133,451,840$1,984,324$\[24,544\]$82,580,128$1,896,641$ December 31, 2018 Prior Period Adjustment4,322\[19,395\] 18,328 \[5,270\] 5,270 Net Position/Fund Balance, December 31, 2018, Restated133,456,162$$1,964,929$ \[6,216\]$82,574,858$1,901,911 Note 4. DETAILED NOTES ON ALL FUNDS A.Deposits and Investments !"( 2#*-P$ A&$" #$ A+)$#C(>(C *+ /( &A*#?( .@)C$ /- =&)&'(=()* &)C #$ #)?($*(C &AA+>C#)' *+ <78 IN1401. The statute requires that banks eligible to hold active funds have a main or branch bank in the county in which the City is located or in a county adjacent to the City and the banks provide an acceptable rate for active funds. Various City investments are considered to be idle funds by management and are invested according to KSA 12-1675. The statute requires that the City invest itsidle funds in onlytemporary notes of the City, bank certificates of deposit, repurchase agreements, and if eligible banks do not offer an acceptable rate for the funds: U.S. Treasury bills or notesorthe Municipal Investment Pool (KMIP). Maturities of the above ts may not exceed two years by statute. investmen 7+=( +. *"( 2#*-P$ #)?($*=()*$ &>( +. /+)C %>+A((C$ #)?($*(C %@>$@&)* *+ <78 FHNFEF1 !"#$ $*&*@*( &,,+W$ additional investment authority beyond that of KSA 12-1675. Investments of bond proceeds may follow KSA 12-1675 or include other investments such as the KMIP, direct obligations of the U.S.government or any agency thereof, investment agreements with a financial institution the obligations of which at the time of investment are rated #) (#*"(> +. *"( *">(( "#'"($* >&*#)' A&*('+>#($ /- Q++C-P$ #)?($*+>$ $(>?#A( or Standard -131. &)C L++>P$ A+>%+>&*#+); &)C ?&>#+@$ +*"(> #)?($*=()*$ &$ $%(A#.#(C #) <78 FH At December 31, 2019, the City has the following investments: Investment TypeFair ValueRating Kansas Municipal Investment Pool$ 317,303S&P AAAf/S1+ Total fair value317,303$ The municipal investment pool is under the oversight of the Pooled Money Investment Board. The board is comprised of the State Treasurer and four additional members appointed by the State Governor. The board reports annually to the Kansas legislature. State pooled monies may be invested in direct obligations of, or obligations that are insured as to principal and interest by the U.S. 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. 40 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) A.Deposits and Investments (Continued) !"( 2#*-P$ #)?($*=()* %+,#A- %>+?#C($ C#>(A*#+) +) A+)A()*>&tion risk. The City policy states that funds shall be diversified to reducethe extent of losses due to having an unbalanced portfolio in terms of maturities, type, and issuers. Therefore, portfolio maturities shall be staggered to instrument avoid undue concentration of assets in a specific maturity sector. Liquidity, free of market risk, shall be assured through practices insuring that the next disbursement date and payroll date are covered through maturing investments, marketable U.S. Treasury Bills, the Municipal Investment Pool, or money market accounts. Default risk shall be minimized by requiring that all security purchases occur on a delivery vs. payment basis, and that all securities areadequately collateralized. Risk of market price volatility shall be controlled through the adoption of a "buy and hold" strategy whereby the City holds each investment to maturity, coupled with maintenance of an adequate liquidity position to insure the ability to meet normal anticipated cash flow needs. When advantageous, it is allowable to sell investments to realize a gain due to price fluctuations; however, such transactions shall not be a part of the normal course of business. The City recognizesthat investment risks can result from issuer defaults, market price changes or various technical complications leading to temporary illiquidity. Portfolio diversification is employed as a way to control risk due to issuer default. In the event of a default by a specific issuer, the Director of Finance and Administration shall review, and, if appropriate, proceed to liquidate securities having comparable credit risks. 2@$*+C#&, A>(C#* >#$0 #$ *"( >#$0 *"&* #) *"( (?()* +. & /&)0 .&#,@>(; *"( 2#*-P$ C(%+$#*$ =&- )+* /( >(*@>)(C *+ #*1 t policy for custodial credit ri !"( 2#*-P$ C(%+$#sk require that the depository banks will maintain 100% security ihe n the form of FDIC coverage and pledged collateral according to KSA 9-1402. As of December 31, 2019t 2#*-P$ C(%+$#*$ W(>( A+)$#C(>(C fully secured. Restricted cash is comprised of a construction account, an interest reserve account (the "InterestReserve"), and an expense reserve account (the "Operating Reserve") related to the SFH QalicB blended component unit. The Interest Reserve and theOperating Reserve accounts are available as part of the loans payable financing (see Note 4E). As ofDecember 31, 2019, the balance of the construction account, Interest Reserve, and Operating Reservewas $495,071, $286,100, and $126,516, respectively. 41 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) B.Receivables Receivables as of year-end, including the applicable allowances for doubtful accounts, are as follows: Tourism andSpecialDebtSFHOther GeneralConventionGasServiceQalicBGovernmentalSubtotal Primary Government Receivables: Accounts7,$ 109,224$ 450,217$ -$-$ 864,660$ 3,216$ 8,427,317 Taxes 10,430,287 327,922- 3,105,131--13,863,340 9,517 -----9,517 Interest Gross receivables17, 450,217549,028 327,922 3,105,131 864,660 3,216 22,300,174 Less: allowance for \[5,480,609\]---- \[1,204\] \[5,481,813\] uncollectibles $ 12,068,419$ 450,217$ 327,922$ 3,105,131$ 864,660$ 2,012$ 16,818,361 Total SolidWater Wasteand DisposalSewerSanitationTotal Primary Government Receivables: Accounts$ 2,861,380198,322$ 466,648$ 11,953,667$ Taxes--- 13,863,340 16-- 9,533 Interest Gross receivables 2,861,380198,338 466,648 25,826,540 Less: allowance for -\[1,283,198\] \[209,270\] \[6,974,281\] uncollectibles $ 198,338$ 1,578,182$ 257,378$ 18,852,259 Total Component Units Salina Airport Authority Accounts$ 99,749 Grants 750,000 \[1,500\] Less: allowance for uncollectibles 848,249 Total Salina Airport Authority Salina Housing Authority Accounts 12,347 Less: allowance for uncollectibles \[986\] 798 Interest 12,159 Total Salina Housing Authority $ 860,408 Total C.Interfund Receivables and Payables The composition of interfund balances as of December 31, 2019, is as follows: Fund TypesDue FromDue To Capital Project Fund$ -349,515$ SFH QalicB Fund-349,515 $ 349,515$ 349,515 The City uses interfund receivables and payables between the General Fund and Other Governmental Funds as needed when pooled cash is negative within a fund until investments mature or grant proceeds are received. All payables are cleared in less than one year. 42 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) D.CapitalAssets Capitalasset activity for the year ended December 31, 2019, was as follows: BalanceAdj. Bal.Balance 12/31/2018 Adjustments12/31/2018AdditionsRetirements12/31/2019 City governmental activities: Governmental activities: Capital assets, not being depreciated Construction in progress32,217,207$ -$$ 32,217,207$ 17,029,601$ 4,019,079$ 45,227,729 Land 24,093,535-24,093,535 130,000-24,223,535 Leased land under capital lease 422,799-422,799--422,799 Capital assets, being depreciated Infrastructure 204,630,178-204,630,178 3,878,632-208,508,810 Buildings and improvements 53,014,858-53,014,858 144,088-53,158,946 Vehicles 10,191,330-10,191,330 575,032 542,06810,224,294 Equipment, furniture and fixtures 7,118,105 5,3897,123,494 216,528 60,7467,279,276 Leasehold improvements 326,193 -326,193 31,190-357,383 Total capital assets 332,014,205 5,389 332,019,594 22,005,071 4,621,893 349,402,772 Less accumulated depreciation for: Infrastructure88,265,257 -88,265,257 3,979,608-92,244,865 Buildings and improvements 21,255,995-21,255,995 1,346,879-22,602,874 Vehicles 7,233,567-7,233,567 670,702 533,8787,370,391 Equipment, furniture and fixtures 4,743,932-4,743,932 243,613 60,7464,926,799 Total accumulated depreciation 121,498,751-121,498,751 6,240,802 594,624 127,144,929 Governmental activities capital assets, net210,515,454$ $ 5,389$ 210,520,843$ 15,764,269$ 4,027,269$ 222,257,843 Business-type activities: Capital assets, not being depreciated Construction in progress4,171,178$ -$$ 4,171,178$ 14,352,812$ 10,997,022$ 7,526,968 Land 2,059,834-2,059,834 326,500-2,386,334 Capital assets, being depreciated Infrastructure 119,170,313-119,170,313 10,997,022-130,167,335 Buildings and improvements 22,579,936-22,579,936--22,579,936 Vehicles 3,819,646-3,819,646 310,539 267,147 3,863,038 Equipment, furniture and fixtures 5,570,277 13,1645,583,441 306,011 137,849 5,751,603 Total capital assets 157,371,184 13,164 157,384,348 26,292,884 11,402,018 172,275,214 Less accumulated depreciation for: Infrastructure46,858,117 -46,858,117 3,485,597-50,343,714 Buildings and improvements 13,639,506-13,639,506 421,287-14,060,793 Vehicles 2,611,814-2,611,814 230,626 267,1462,575,294 Equipment, furniture and fixtures 4,081,039 -4,081,039 272,905 137,8494,216,095 Total accumulated depreciation 67,190,476-67,190,476 4,410,415 404,995 71,195,896 Business-type activities capital assets, net$ 90,180,708$ 13,164$ 90,193,872$ 21,882,469$ 10,997,023$ 101,079,318 43 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) D.CapitalAssets (Continued) !"( 2#*-P$ C(%>(A#&*#+) (\[%()$( W&$ A"&>'(C*+ '+?(>)=()*&, .@)A*#+)$ &$ .+,,+W$U Governmental Activities: General government74,670$ Public safety656,346 Public works4,334,423 Public health31,110 Culture and recreation810,779 333,474 Planning and development $ 6,240,802 Total depreciation Business-type Activities: Solid Waste Disposal$ 853,537 Water and Sewer 3,333,941 Sanitation 174,722 48,215 Golf Course Division $ 4,410,415 Total depreciation E.Long-Term Debt Following is a summary of changes in long-term debt for fiscal year 2019: Restated BalanceBalanceAmounts January 1, December 31,Due Within 2019AdditionsDeletions2019One Year Governmental activities: General obligation bonds$ 51,968,310$ 11,532,878$ 5,877,280$ 57,623,908$ 4,474,480 Loans payable 12,185,053 13,963-12,199,016- OPEB liability 3,093,240 333,365 304,9583,121,647- KPERS OPEB liability 382,848 52,116 85,552 349,412- Net pension liability 27,918,983 1,049,823-28,968,806- Accrued compensation 2,815,485 2,001,057 2,030,4652,786,0772,030,465 Temporary notes 18,123,505 11,170,000 18,123,50511,170,000 11,170,000 Total$ 116,487,424$ 26,153,202$ 26,421,760$ 116,218,866$ 17,674,945 Business-type activities: General obligation bonds$ 5,282,578$-$ 1,166,063$ 4,116,515$ 688,388 Revenue bonds 11,898,051 11,122,17511,898,05111,122,175 715,000 Loans payable 10,632,351 12,434,834 527,499 22,539,686 539,863 OPEB liability 394,062 42,469 38,851 397,680- KPERS OPEB liability 164,078 23,414 30,509 156,983- Net pension liability 3,114,818 33,308-3,148,126- Accrued compensation 669,517 465,674 478,552656,639 478,552 Total$ 32,155,455$ 24,121,874$ 14,139,525$ 42,137,804$ 2,421,803 Component Units: General obligation bonds$ 21,427,000$ 6,380,000$ 5,382,000$ 22,425,000$ 1,425,000 Less unamortized discount\[64,208\]-\[46,505\]\[17,703\]- Special assessment debt7,054-2,2494,8052,350 KPERS OPEB obligation11,1262,212-13,338- Net pension liability 605,630 27,226-632,856- Total component units$ 21,986,602$ 6,409,438$ 5,337,744$ 23,058,296$ 1,427,350 44 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) E.Long-Term Debt (Continued) !"( .+,,+W#)' #$ & C(*&#,(C ,#$*#)' +. *"( 2#*-P$ ,+)'N*(>= C(/* #)A,@C#)' '()(>&, +/,#'&*#+) /+)C$; >(?()@( bonds, temporary notes and loans payable: Primary Government OriginalInterestBonds General Obligation BondsIssueRatesOutstanding Internal Improvements 2008B, due 7/1/20283,525,000$ 3.65% to 5.00%850,000$ Internal Improvements 2009A, due 10/1/202923,695,000 2.00% to 5.00%663,468 Internal Improvements 2010A, due 10/1/20256,916,592 2.00% to 3.875%332,772 Internal Improvements 2010B, due 10/1/20237,973,044 0.50% to 3.00%1,204,781 Internal Improvements 2011A, due 10/1/20316,587,985 2.00% to 5.00%742,300 Internal Improvements 2012A, due 10/1/20272,383,903 1.00% to 2.45%1,350,082 Refunding 2012B, due 10/1/20203,817,108 1.00% to 1.40%184,014 Internal Improvements 2013A, due 10/1/281,369,380 3.00% to 4.00%910,630 Internal Improvements 2013B, due 10/1/334,485,073 0.60% to 3.65%3,028,550 Internal Improvements 2014A, due 10/1/347,839,050 2.50% to 3.75%4,801,789 Improvement and Refunding 2015A, due 10/1/357,157,688 2.00% to 4.00%5,781,152 Internal Improvements 2016A, due 10/1/366,681,766 2.00% to 3.00%5,880,002 Refunding 2016B, due 10/1/203115,141,004 2.00% to 5.00%13,622,290 Internal Improvements 2017A, due 10/1/379,388,370 3.00% to 3.375%8,815,534 Internal Improvements 2018A, due 10/1/332,090,000 3.15% to 4.00%2,040,180 Internal Improvements 2019A, due 10/1/3911,090,000 3.00% to 4.00%11,532,878 Total general obligation bonds61,740,422$ Revenue Bonds Revenue & Refunding 2019, due 10/1/3111,122,175$3.00%11,122,175$ Total revenue bonds11,122,175$ Temporary Notes Series 2019-1, due 5/1/206,085,000$ 1.58%6,085,000$ Series 2019-2, due 7/1/205,085,000 2.07%5,085,000 Total temporary notes11,170,000$ Loans Payable Kansas Public Water Supply, due 8/1/349,330,000$ 2.12%6,411,458$ Kansas Public Water Supply, due 8/1/354,250,000 2.78%3,693,394 Kansas Public Water Supply, due 2/1/4032,000,000 2.33%10,396,098 Kansas Public Water Supply, due 2/1/404,250,000 2.33%1,933,592 Kansas Water Pollution Control, due 3/1/352, 2.54%105,145250,000 Dakotas & CNMC Notes, due 12/10/5012,640,000 1.58%12,199,016 Total loans payable34,738,703$ 45 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) E.Long-Term Debt (Continued) OriginalInterestBonds IssueRatesOutstanding Component Unit Salina Airport Authority General Obligation Debt General Obligation 2015A, due 20253,075,000$2.67%1,180,000$ General Obligation 2017A, due 203010,255,0003.04%10,080,000 General Obligation 2017B, due 20254,835,000 3.02%4,785,000 General Obligation 2019A, due 2029675,000 2.78%675,000 General Obligation 2019B, due 20233,455,000 2.92%3,455,000 General Obligation Temporary Notes 2019-1, due 20212,250,000 2.50%2,250,000 Less unamortized bond premium28,069 \[45,772\] Less unamortized bond discount 22,407,297 Total general obligation bonds Special Assessment Debt 4,805 Hangar 600 Sanitary Sewer, due 202127,599 4.47% 4,805 Total special assessment debt $22,412,102 Total Annual debt service requirements to maturity for general obligation bonds to be paid with tax levies: General Obligation - Primary Government BondsInterest YearOutstandingDueTotal 2020$ 5,162,867$ 1,997,278$ 7,160,145 2021 5,057,615 1,692,386 6,750,001 2022 5,156,464 1,522,892 6,679,356 2023 5,016,465 1,330,541 6,347,006 2024 4,642,769 1,141,818 5,784,587 2025-202918,285,702 4,074,605 22,360,307 2030-203412,178,959 1,985,377 14,164,336 6,239,581 468,338 6,707,919 2035-2037 $ 61,740,422$ 14,213,235$ 75,953,657 Total 46 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) E.Long-Term Debt (Continued) General Obligation - Component Units BondsInterest YearOutstandingDueTotal 2020$ 1,425,000$ 662,126$ 2,087,126 2021 3,730,000 605,838 4,335,838 2022 1,525,000 508,668 2,033,668 2023 1,565,000 467,940 2,032,940 2024 1,615,000 424,235 2,039,235 2025 - 20298,805,000 1,410,17510,215,175 3,760,000 174,475 3,934,475 2030 - 2031 $ 22,425,000$ 4,253,457$ 26,678,457 Total Annual debt service requirements to maturity for revenue bonds to be paid with utility revenues: Revenue Bonds - Primary Government BondsInterest YearOutstandingDueTotal 2020$ 781,015$ 327,117$ 1,108,132 2021 816,015 288,450 1,104,465 2022 841,015 265,950 1,106,965 2023 861,015 242,700 1,103,715 2024 886,015 218,850 1,104,865 2025-2029 4,820,072 710,100 5,530,172 2,117,028 89,700 2,206,728 2030-2031 Total$ 11,122,175$ 2,142,867$ 13,265,042 Annual debt service requirements to maturity for temporary notes -to be paid through the issuance of general obligation bonds: Temporary Notes - Primary Government NotesInterest Year OutstandingDueTotal $ 11,170,000$ 172,417$ 11,342,417 2020 $ 11,170,000$ 172,417$ 11,342,417 Total 47 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) E. Long-Term Debt (Continued) Kansas Public Water Supply Loans.The City has engaged in a loan with the Kansas Public Water Supply Fund. The following displays annual debt service requirements to maturity for the loan payable to be paid from service revenues, for the full proceeds amount: Kansas Water Supply Loans - Primary Government Loans Interest YearOutstandingDueTotal 2020539,863$ 235,471$ 775,334 2021552,523 222,811 775,334 2022565,483 209,851 775,334 2023578,754 196,580 775,334 2024592,341 182,993 775,334 2025-20293,177,162 699,508 3,876,670 2030-20343,569,051 307,625 3,876,676 529,675 18,533 548,208 2035 $ 10,104,852$ 2,073,372$ 12,178,224 Total During 2019, the City entered into additional loans with the Kansas Public Water Supply Fund and the Kansas Water Pollution Control Fund. The water supply loans allow the City to borrow up to $36,170,000 with a gross interest rate of 2.33%. The water pollution control loan allows the City to borrow up to $2,250,000 with a gross interest rate of 2.54%. Amortization schedules for the loans are not yet available since the loans have not been fully finalized. The purpose of the loans are to finance various water and sewer infrastructure projects throughout the City. Dakotas and CNMC Notes. Dakotas Note A!On July 27, 2016, a $6,016,500 promissory note with a maturity date of December 10, 2050 wasprovided to SFH QalicBby Dakotas XXII, LLC. Interest accrues on the unpaid principal balanceat an interest rate of 1.582625% with annual interest only payments, partially in arrears and partiallyin advance, commencing on December 10, 2016 and continuing on the tenth day of each Decemberthereafter through December 10, 2025. On July 27, 2023, payment of all accrued and unpaid interestthrough July 27, 2023 is due. Commencing on December 10, 2023 and continuing on the tenth day ofeach December thereafter through December 10, 2026, accrued and unpaid interest shall be due and payable annually, partially in arrears and partially in advance for interest accruing through the end ofeach calendar year. Commencing on December 10, 2026 and continuing through the maturity date,annual payments of principal and interest in an amount equal to $293,276 are due. At maturity, theentire outstanding principal balance plus all accrued and unpaid interest thereon is due and payable infull. The loan may not be prepaid prior to July 27, 2023 andis secured by the Loan and SecurityAgreement. As of December 31, 2019, the note balance was $6,016,500. Dakotas Note B -On July 27, 2016, a $2,623,500 promissory note with a maturity date of December 10, 2050 wasprovided to the SFH QalicBby Dakotas XXII, LLC. Interest accrues on the unpaid principal balance at an interest rate of 1.582625% with annual interest only payments, partially in arrears and partially in advance, commencing on December 10, 2016 and continuing on the tenth day of each December thereafter through December 10, 2025. On July 27, 2023, payment of all accrued and unpaid interest through July 27, 2023 is due. Commencing on December 10, 2023 and continuing on the tenth day of each December thereafter through December 10, 2025, accrued and unpaid interest shall be due and payable annually, partially in arrears and partially in advance for interest accruing through the end of each calendar year. Commencing on December 10, 2026 and continuing through the maturity date, annual payments of principal and interest in an amount equal to $127,883 are due. At maturity, the entire outstanding principal balance plus all accrued and unpaid interest thereon is due and payable in full. The loan may not be prepaid prior to July 27, 2023 and is secured by the Loan and Security Agreement. As of December 31, 2019, the note balance was $2,623,500. 48 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) E.Long-Term Debt (Continued) CNMCNoteA-On July 27, 2016, a $2,674,000 promissory note with a maturity date of December 10, 2050 wasprovided to the SFH QalicBby CNMC Sub-COE 114, LLC. Interest accrues on the unpaid principal balance at an interest rate of 1.582625% with annual interest only payments, partially in arrears andpartially in advance, commencing on December 10, 2016 and continuing on the tenth day of eachDecember thereafter 5. On July 27, 2023, payment of all accrued and through December 10, 202unpaid interest through July 27, Commencing on December 10, 2023 and continuing onthe tenth day of 2023 is due. each December thereafter through December 10, 2025, accrued and unpaid interestshall be due and payable annually, partially in arrears and partially in advance for interest accruingthrough the end of each calendar year. Commencing on December 10, 2026 and continuing throughthe maturity date, annual payments of principal and interest in an amount equal to $130,345 are due.At maturity, the entire outstanding principal balance plus all accrued and unpaid interest thereon isdue and payable in full. The loan may not be prepaid prior to July 27, 2023 and is secured by theLoan and Security Agreement. As of December 31, 2019, the note balance was $2,674,000. CNMCNoteB-On July 27, 2016, a $1,326,000 promissory note with a maturity date of December 10, 2050 wasprovided to the SFH QalicBby CNMC Sub-COE 114, LLC. Interest accrues on the unpaid principal partially balance at an interest rate of 1.582625% with annual interest only payments, partially in arrears and in advance, commencing on December 10, 2016 and continuing on the tenth day of eachDecember thereafter through December 10, 2025. On July 27, 2023, payment of all accrued andunpaid interest through July 27, 2023 is due. Commencing on December 10, 2023 and continuing onthe tenth day of each December thereafterthrough December 10, 2025, accrued and unpaid interestshall be due and payable annually, partially in arrears and partially in advance for interest accruingthrough the end of each calendar year. Commencing on December 10, 2026 and continuing throughthematurity date, annual payments of principal and interest in an amount equal to $64,636 are due. Atmaturity, the entire outstanding principal balance plus all accrued and unpaid interest thereon is dueand payable in full. The loan may not be prepaid prior to July 27, 2023 and is secured by the Loanand Security Agreement. As of December 31, 2019, the note balance was $1,326,000. As of December 31, 2019, the principal balance of these four loans,net of $440,984of unamortized debt issuance costs ,was $12,199,016. Annual debt service requirement to maturity for Special Assessment Debt to be paid from rental revenue: Special Assessment Debt - Component Units AssessmentInterest YearOutstandingDueTotal 2020$ 2,350$215$ 2,565 2,4551102,565 2021 $ 4,805$325$ 5,130 Total 49 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) E.Long-Term Debt (Continued) Special assessments. As provided by Kansasstatutes, projects financed in part by special assessments are bonds of the City and are retired from the debt service fund. financed through general obligation Special assessments paid prior to the issuance of bonds are recorded as revenue in the appropriate project. Special assessments received after the issuance of bonds are recorded as revenue in the debt service fund. The special assessments are not recorded as revenue when levied against the respective property owners as such amounts are not available to finance current year operations. The special assessment debt is a contingent obligation of the City to the extent of property owner defaults, which have historically been immaterial. July 27, 2016, SFH QalicB entered into a lease agreement Premises lease.On with the City for the use of the Salina Field House, as defined in the Net Lease agreement (the "Property"), under a direct financing lease. The lease term is 30 years, as defined in the Net Lease agreement. Beginning on July 1, 2017 and on the first day of each December thereafter through December 1, 2046, annual payments are due, in advance, as specified in the NetLease agreement. For the year ended December 31, 2019, SFH QalicB earned $492,917of rental income under the terms of , rental income of $87,368remained receivable from the City. the Net Lease. As of December 31, 2019 The following is a schedule, by year, of total minimum lease payments by the City to SFH QalicB under the direct financing lease as of December 31, 2019: 2020$ 130,000 2021 130,000 2022 130,000 2023 162,500 2024 227,500 2025-2029 2,827,500 2030-2034 3,250,000 2035-2039 3,250,000 2040-2044 3,250,000 975,000 2045-2046 $ 14,332,500 Ground Lease.On October 24, 2018, SFH QalicB entered into a lease agreement with Salina Regional Medical Education, LLC for the use of property for parking of passenger vehicles and non-commercial trucks (the Parking Lot) by the public. SFH QalicB will have the option to acquire the Parking Lot for $1 upon the end of the lease term, which is 100 years, as defined in the Ground Lease. A one-time basic rent payment of $250,000 was due on the commencement date. There are no additional minimum lease payments due. Sales taxand Revenue (STAR) Bonds.STAR Bonds are authorized to be issued pursuant to K.S.A. 12-17, 160, et seq., as amended (the STAR Bond Act). The STAR Bond Act provides a form of tax increment financing that enables the issuance of bonds payable from certain State and local sales and compensating use tax revenues and transient guest tax revenues generated from STAR bond projects constructed within a STAR bond project district. To implement STAR bond financing, a local government must adopt a resolution that specifies a %>+%+$(C 7!8B /+)C %>+`(A* C#$*>#A*P$ /+@)C&>- &)C C($A>#/($ *"( +?(>&,, C#$*>#A* %,&); "+,C & %@/,#A "(&>#)' +) the district and plan, and pass a resolution that establishes the STAR bond project district. Additionally, there may be one or more projects within a STAR bond district. In accordance with the STAR Bond Act, the City has no liability for payment of bonds in the event that revenues received from sources noted above are inadequate to pay the debt incurred with the issuance of the STAR bonds. 50 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) E.Long-Term Debt (Continued) In connection with the issuance of STAR bonds, the City of Salina and the State of Kansas enter into a Tax Distribution Agreement. The agreement provides that the principal of, accreted value, and interest on the STAR bonds will be paid %>+%+>*#+)&,,- /- *"( 2#*- +. 7&,#)& &)C *"( 7*&*( +.<&)$&$; /&$(C +) (&A" ()*#*-P$ respective share of sales taxes generated within the district. These proportional shares may change in the future if the sales taxes assessed by the local or state governments are modified. On June 1, 2015, the City of Salina Commission adopted Ordinance 15-10776 establishing the district known as the Salina STAR Bond Project District. On August 22, 2016, the City held a public hearing and approved 10856 adopting the STAR Bond Pr Ordinance 16-oject Plan. Salina issued $18,250,000 in Senior Special Obligation Revenue On December 1, 2018, the City of Bonds (Series of 2018-A) and $4,320,000 in Subordinate Special Obligation Revenue Bonds (Series 2018-B). As December 31, 2019, the outstanding balances for the 2018-A and 2018-B were $18,250,000 and $4,320,000, respectively. F.Operating Leases On December 20, 2012, the Cityand Saline County jointlyentered into a non-cancelable leaseto finance a County-City Building $2,750,000 heating, ventilation and air conditioning (HVAC) upgrade at the Saline Authority. !"( 2#*-P$ $"&>( +. *"( ,(&$( &'>((=()* #$ SHg &)C W#,, %&- the lessor $1,100,000, plus interest, through monthly payments of $7,827 over a term of 180 months. The total cost for this lease was$93,926for the year ended December 31, 2019. The future minimum lease payments for the lease are as follows: YearAmount 2020$ 93,926 2021 93,926 2022 93,926 2023 93,926 2024 93,926 281,779 2025-2027 Total principal and interest751,409 \[95,149\] Less: interest $ 656,260 Total principal G.InterfundTransfers A reconciliation of interfund transfers follows: Transfer InTransfer Out Major Funds: General6,449,500$ 897,748$ Tourism and Convention-848,873 Special Gas 160,000- Sales Tax Capital-3,326,350 Debt Service 1,632,958 Other governmental funds1,472,013 - Solid Waste Disposal-640,000 Water and Sewer-3,650,000 Sanitation-491,500 140,000 - Central Garage $ 9,854,471$ 9,854,471 Total transfers The City uses interfund transfers to share administrative costs between funds. 51 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 5. OTHER INFORMATION A. Defined Benefit Pension Plan Description of Pension Plan. The Cityparticipates in a cost-sharing multiple-employer pension plan (Pension Plan), as defined in Governmental Accounting Standards Board Statement No. 67, Financial Reporting for Pension Plans. The Pension Plan is administered by the Kansas Public Employees Retirement System (KPERS), a body corporate and an instrumentality of the State of Kansas. KPERS provides benefit provisions to the following statewide pension groups under one plan, as provided by K.S.A. 74, article 49: Public employees, which includes: "State/School employees "Local employees Police and Firemen Judges Substantially all public employees in Kansas are covered by the Pension Plan. Participation by local political subdivisions is optional, but irrevocable once elected. Those employees participating in the Pension Plan for the Cityare included in the Localemployeesgroup and the Kansas Police and Firemen group. KPERS issues a stand-alone comprehensive annual financial report, which is available on the KPERS website at www.kpers.org. Benefits. Benefits are established by statute and may only be changed by the State Legislature. Members (except Police and Firemen) with ten or more years of credited service, may retire as early as age 55(Police and Firemen may be age 50 with 20 years of credited service), with an actuarially reduced monthly benefit. Normal retirement is at age 65, age 62 with ten years of A>(C#*(C $(>?#A(; +> W"()(?(> & =(=/(>P$ A+=/#)(C ageand years of service equal 85. Police and Firemen normal retirement ages are age 60 with 15 years of credited service, age 55 with 20 years, age 50 with 25 years, or any age with 36 years of service. Monthly retirement benefits are based on a statutory formula that includes final average salary and years of service. When ending employment, members may withdraw their contributions from their individual accounts, including interest. Members who withdraw their accumulated contributions lose all rights and privileges of membership. For all pension coverage groups, the accumulated contributions and interest are deposited into and disbursed from the membership accumulated reserve fund asestablished by K.S.A. 74- 4922. Members choose one of seven payment options for their monthly retirement benefits. At retirement a member =&- >(A(#?( & ,@=%N$@= %&-=()* +. @% *+ THg +. *"( &A*@&>#&, %>($()* ?&,@( +. *"( =(=/(>P$ ,#.(*#=( /()(.#*1 His or her monthly retirement benefit is then permanently reduced based on the amount of the lump sum. Benefit increases, including ad hoc post-retirement benefit increases, must be passed into law by the Kansas Legislature. Benefit increases are under the authority of the Legislature and the Governor of the State of Kansas. The 2012 Legislature made changes affecting new hires, current members and employers. A new KPERS 3 cash balance retirement plan for new hires starting January 1, 2015, was created. Normal retirement age for KPERS 3 is 65 with five years of service or 60 with 30 years of service. Early retirement is available at age 55 with ten years of service, with a reduced benefit. Monthly benefit options are an annuity benefit based on the account balance at retirement. 52 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 5. OTHER INFORMATION (Continued) A.Defined Benefit Pension Plan (Continued) For all pension coverage groups, the retirement benefits are disbursed from the retirement benefit payment reserve fund as established by K.S.A. 74-4922. Contributions. Member contributions are established by state law and are paid by the employee according to the provisions of Section 414(h) of the Internal Revenue Code. State law provides that the employer contribution rates are determined based on the results of an annual actuarial valuation. The contributions and assets of all groups are deposited in the Kansas Public Employees Retirement Fund established by K.S.A. 74-4921. All of the retirement systems are funded on an actuarial reserve basis. For fiscal years beginning in 1995, Kansas legislation established statutory limits on increases in contribution rates for KPERS employers. Annual increases in the employer contribution rates related to subsequent benefit enhancements are not subject to these limitations. The statutory cap increase over the prior year contribution rate is 1.2% of total payroll for thefiscal year ended June 30, 2019. The actuarially determined employer contribution rates (not including the 1.00% contribution rate for the Death and Disability Program) and the statutory contribution ratesare as follows: ActuarialStatutory Employer Employer RateCapped Rate Local employees8.89%8.89% Police and Firemen22.13%22.13% Member contribution rates as a percentage of eligible compensation for the fiscal year 2019are 6.00% for Local employees and 7.15% for Police and Firemen. Employer Allocations. Although KPERS administers one cost-sharing multiple-employer defined benefit pension plan, separate (sub) actuarial valuations are prepared to determine the actuarial determined contribution rate by group. Following this method, the measurement of the collective net pension liability, deferred outflows of resources, deferred inflows of resources, and pension expense are determined separately for each of the following groups of the plan: State/School Local Police and Firemen Judges To facilitate the separate (sub) actuarial valuations, KPERS maintains separate accounts to identify additions, deductions, and fiduciary net position applicable to each group. The allocation percentages presented for each group in the schedule of employer and nonemployer allocations are applied to amounts presented in the schedules of pension amounts by employer and nonemployer. !"( &,,+A&*#+) %(>A()*&'($ .+> *"( 2#*-P$$"&>( +. *"( A+,,(A*#?( %()$#+) &=+@)*$ &$ +. D(A(=/(> EF; GHFI; arebased on the ratio of its contributions to the total of the employer and nonemployer contributions of the group for the fiscal years ended December 31, 2019. The contributions used exclude contributions made for prior service, excess benefits and irregular payments. 8* i@)( EH; GHFI; *"( 2#*-P$ %>+%+>*#+) .+> *"( 9+A&, (=%,+-(($ '>+@% W&$ H1YIXg; W"#A" W&$ &) #)A>(&$( of .006% from its proportion measured at June 30, GHFZ1 8* i@)( EH; GHFI; *"( 2#*-P$ %>+%+>*#+) .+> *"( Police and Firemen group was 2.074%, which was a decrease of .007% from its proportion measured at June 30, 2018. 53 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 5. OTHER INFORMATION (Continued) A. Defined Benefit Pension Plan (Continued) Net Pension Liability. At December 31, 2019and 2018, the Cityand its component unitsreported a liability of $32,116,932and $31,984,657, respectively, for its total proportionate share of the net pension liability for the Local and Police and Firemen groups. Actuarial Assumptions. The total pension liability was determined by an actuarial valuation as of December 31, 2018, which was rolled forward to June 30, 2019, using the following actuarial assumptions: AssumptionsRate Price inflation2.75% Wage inflation3.50% Salary increases, including wage increases3.5% to 12.0% including inflation Long-term rate of return, net of investment expense, and including price inflation7.75% Mortality rates were based on the RP-2014Mortality Tables, with age setbacks and age set forwards as well as other adjustments based on different membership groups. Future mortality improvements are anticipated using Scale MP-2016. The actuarial assumptions used in the December 31, 2018valuation were based on the results of an actuarial experience study conducted for the period of January 1, 2013, through December 31, 2015. The experience study is dated November 18, 2016. The long-term expected rate of return of pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage. Best estimates of arithmetic real rates of return .+> (&A" =&`+> &$$(* A,&$$ #)A,@C(C #) *"( %()$#+) %,&)P$ target asset allocation as of June 30, 2019are summarized in the following table: Long-Term Expected AssetLong-Term AllocationReal Rate of Return Global Equity47.00%6.85% Fixed Income13.00%1.25% Yield driven8.00%6.55% Real Return11.00%1.71% Real estate11.00%5.05% Alternatives8.00%9.85% Short-term investments2.00%-0.25% 100.00% Discount Rate. The discount rate used to measure the total pension liability was 7.75%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the contractually required rate. The State, School and Local employers do not necessarily contribute the full actuarial determined rate. Based on legislation passed in 1993, the employer contribution rates certified /- *"( 7-$*(=P$ J+&>C +. !>@$*(($ .+> *"($( '>+@%$ =&- )+* #)A>(&$( /- =+>( *"&) *"( $*&*@*+>- A&%1 !"( expected KPERS employer statutory contribution was modeled for future years, assuming all actuarial assumptions are met in future years. Employers contribute the full actuarial determined rate for Police & Firemen, and Judges. Future employer contribution rates were also modeled for Police & Firemen and Judges, assuming all actuarial assumptions are met in future years. Based on those assumptions, the %()$#+) %,&)P$ .#C@A#&>- )(* %+$#*#+) W&$ %>+`(A*(C *+ /( &?&#,&/,( *+ =&0( &,, %>+`(A*(C .@*@>( /()(.#* payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 54 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 5. OTHER INFORMATION (Continued) A.Defined Benefit Pension Plan (Continued) 71#$'-'='-8 .: -<1 E'-8Q$)3.).3-'.#"-1 $<"31 .: -<1 #1- )1#$'.# *'">'*'-8 -. (<"#/1$ '# -<1 ,'$(.&#- 3"-1? The .+,,+W#)' %>($()*$ *"( 2#*-P$proportionate share of the net pension liability calculated using the discount +. Y1YTg; &$ W(,, &$ W"&* *"( 2#*-P$%>+%+>*#+)&*( $"&>( +. *"( )(* %()$#+) ,#&/#,#*- W+@,C /( rate if it were calculated using a discount rate that is 1-percentage point lower (6.75%) or 1-percentage point higher (8.75%) than the current rate: 1% Decrease (6.75%)Discount Rate (7.75%)1% Increase (8.75%) Local$ 16,612,600$ 11,123,112$ 6,531,254 Police & Firemen29,791,754 20,993,820 13,628,262 Total$ 46,404,354$ 32,116,932$ 20,159,516 Pension Expense. For the year ended December 31, 2019, the City recognized Local pension expense of $1,370,234and Police and Firemen pension expense of $3,483,665, which includes the changes in the collective net pension liability, projected earnings on pension plan investments, and the amortization of deferred outflows of resources and deferred inflows of resources for the current period.The Salina Housing 8@*"+>#*-P$ &)C 7&,#)& 8#>%+>* 8@*"+>#*-P$ %+>*#+) +. *"( 9+A&, %()$#+) (\[%()$( W(>( hGT;STF&)C hYE;YTE; respectively Deferred Outflows of Resources and Deferred Inflows of Resources. At December 31, 2019, the City reported deferred outflows of resources and deferred inflows of resources related to pensions for Local and Police and Firemen groups from the following sources: Deferred outflowsDeferred inflows Localof resourcesof resources Differences between actual and expected experience$ 24,348$ 280,127 Net differences between projected and actual earnings on investments 261,693- Changes in assumptions 339,963 22,545 Changes in proportion 377,752267,857 Total$ 1,003,756$ 570,529 Deferred outflowsDeferred inflows Police & Firemenof resourcesof resources Differences between actual and expected experience$ 1,186,018$ 38,909 Net differences between projected and actual earnings on investments 422,552- Changes in assumptions 743,686 23,244 Changes in proportion36,289792,896 Total$ 2,388,545$ 855,049 55 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 5. OTHER INFORMATION (Continued) A. Defined Benefit Pension Plan (Continued) At December 31, 2019, the Salina Housing Authority and Salina Airport Authority reported deferred outflows of resources and deferred inflows of resources related to pensions for Local and Police and Firemen groups from the followingsources: Housing AuthorityAirport Authority Deferred outflowsDeferred inflowsDeferred outflowsDeferred inflows Localof resourcesof resourcesof resourcesof resources Differences between actual and expected experience1,198$ 9,400$ 1,385$ 15,938$ Net differences between projected and actual earnings on investments7,761 - 14,889 - Changes in assumptions14,366 1,598 19,342 1,283 Changes in proportion1,145 4,793 59,996 19,497 Total$ 24,470$ 15,791$ 95,612$ 36,718 $1,933,992reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2020. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: LocalPolice & Firemen DeferredDeferred Year ended\[Inflows\] Outflows\[Inflows\] Outflows December 31,AmountAmountTotal 2019292,771$ 813,535$ 1,106,306$ 2020\[13,048\] 196,519 183,471 202180,992 294,428 375,420 202273,350 221,173 294,523 2023\[838\] 7,841 7,003 Total433,227$ $ 1,533,496$ 1,966,723 $37,624and $36,310reported as deferred outflows of resources related to pensions resulting from Salina HousingAuthority and Salina Airport Authority contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2020. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Housing Airport AuthorityAuthority DeferredDeferred Year ended\[Inflows\] Outflows\[Inflows\] Outflows December 31,AmountAmountTotal 20209,773$ 22,167$ 31,940$ 20215,754 8,732 14,486 2022\[6,147\] 17,687 11,540 2023\[609\] 9,959 9,350 2024\[92\] 349 257 Total8,679$ $ 58,894$ 67,573 56 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 5. OTHER INFORMATION (Continued) B.Deferred Compensation Plan deferred compensation plan ("Plan") created in The City offers its employees aaccordance with Internal Revenue Code Section 457. The Plan, available to all City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. Plan assets are transferred to a plan agent in a custodial trust and are not available to the claims of the City's general creditors. C.Flexible Benefit Plan (I.R.C. Section 125) The City Commission has adopted by resolution a salary reduction flexible benefit plan ("Plan") under Section 125 of the Internal Revenue Code. All City employees working more than 20 hours per week are eligible to participate in the Plan beginning after two full months of employment. Each participant may elect to reduce his orher salary to purchase benefits offered through the Plan. Benefits offered through the Plan include various insurance and disability benefits. D.Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors omissions; natural disasters and other events for which the City carries commercial insurance. No and significant reductions in insurance coverage from that of the prior year have occurred. Settlements have not exceeded insurance coverage for each of the past three years. !"( 2#*- "&$ ($*&/,#$"(C & ,#=#*(C >#$0 =&)&'(=()* %>+'>&= .+> W+>0(>$P A+=%()$&*#+)1 !"( %>+'>&= A+?(>$ all City employees. Premiums are paid#)*+ *"( \\+>0(>$P 2+=%()$&*#+) B($(>?( 6@)C /- &,, +*"(> .@)C$ &)C 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. Of the liability, $159,754 is considered to be due within one year. Changes in the balances of claims liabilities during the past two years are as follows: 20192018 Unpaid claims, January 1$ 238,778$ 221,913 Incurred claims (including IBNRs) 726,271 886,086 Claim payments \[653,477\] \[869,221\] Unpaid claims, December 31$ 311,572$ 238,778 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 $50,000. Incurred claims, including incurred but not reported claims, have been accrued based primarily upon subsequent payments. Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and amounts of payouts and other economic and social factors. The liability for claims and judgments is reported in the Health Insurance Fund because it is expected to be liquidated with expendable available financial resources. Therefore, all of the liability is considered to be due within one year. Changes in the balances of claims liabilities during the past two years are as follows: 57 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 5. OTHER INFORMATION (Continued) D.Risk Management (Continued) 20192018 Unpaid claims, January 1$ 380,980$ 395,691 Incurred claims (including IBNRs) 4,466,0443,670,930 Claim payments\[4,357,606\] \[3,685,641\] Unpaid claims, December 31$ 489,418$ 380,980 E.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 andconditions 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, 2019. 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. F.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 $2,048,896reported as landfill closure and postclosure care liability at December 31 represents the cumulative amount reported to date based on the use of 28.8% of the estimated capacity of the landfill. The City's solid waste fund will recognize the remaining estimate cost of closure and postclosure care of $4,892,995as the remaining estimated capacity is filled over the remaining life expectancy of 147years. These amounts are based on what it would cost to perform all closure and postclosure care in 2019. Actual cost may be higher due to inflation, changes, in technology or changes in regulations. The City is required by State and Federal laws and regulations to provide assurances of financial responsibilityfor closure and post- closure care. The City has elected to utilize the Local Government Financial test promulgated by the U.S. Environmental Protection Agency (at 40 CFR 258.74(f)) and the Kansas Department of Health and Environment to provide these assurances. Any future closure or post-closure care costs will be provided through the normal budgeting and rate setting process, including the issuance of general obligation bonds, if necessary. 58 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 5. OTHER INFORMATION (Continued) G.Capital Projects Capital projects often extend over two or more fiscal years. The following is a schedule, which compares the project authorization including allowable interest revenue to total project expenditures from project inception to December 31, 2019. ProjectAuthorizationExpenditures Markley-Magnolia VV Sewer$ 5,150,000$ 439,661 Bicentennial Center Improvements 10,200,000 12,433,918 Water Well 13 & 14 Maintenance52,18450,830 Community Fieldhouse (1) 10,950,000 9,188,840 Community Fieldhouse (2) 750,000 733,992 North Lime Drying Lagoon Yearly Maintenance120,000 37,260 Rebuild High Service Pump P-20324,18713,688 Pump Stations and Force Mains 1,483,000 1,425,505 2017 Country Club Road Improvements 1,200,000 1,089,063 River Trail 2 956,07211,312 Downtown Streetscape 12,165,000 11,298,360 Smoky Hill River Renewal 27,000,000 3,467,058 Water Mains 4,250,000 2,319,841 Downtown Santa Fe Water Main Replacement1,351,100 1,258,672 Police Training Facility 4,900,000 1,398,225 Rehab Pump St 28,29/Repl 28 Face Main 550,000- Northbound 9th Street Bridge 103,76895,358 Landfill Cell #20 Design 2,200,000 1,959,983 Railroad Crossing Improvements45,000- 2018 Park Improvements 194,00087,000 FH Parking Lot55,9302,320 Pheasant Ridge Addition #3 Phase 2 509,233 446,916 Manhole & Valve Adj10,00017,806 Community Theater HVAC Replacement46,000207 Storm Sewer Mulberry Street22,70921,528 9th Street Crawford to Walnut 646,896 643,555 2019 Pavement Sealing 295,937 295,937 Dean Evans Drainage60,000315 2019 Sidewalk Improvements24,96524,648 2019 Traffic Signal Improvements35,75835,758 2019 Mill and Inlay 1,853,546 1,531,098 2019 Microsurfacing 693,462 681,555 2019 Chip and Seal 140,000 131,733 N.eet Bridge 2,000,0003,546 9th Str Golf Course Irrigation 1,488,414 1,321,171 Police Parking Lot 400,000 200,995 2019 Sidewalk Abatement21,625- Fair Housing38,750- 9th South Addition 1,180,3132,976 Smoky Hill Greenway Trail 435,63749,389 Chorine Building 2 Roof Replacement35,000- 2019 Water Main Replacement 4,000,000- Magnolia Hills Estates II 1,575,24010,958 Stone Lake Phase 2 670,1662,207 Stone Lake Phase 3A 1,647,0533,007 Smedley Surgical Center45,4861,961 Sound Garden Oakdale Park10,04610,046 Wheatland Valley -Specials 5,474,7906,500 Park Shelter Roof Replacement93,816- LED Lighting Replacement - Parks18,223- 59 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 5. OTHER INFORMATION (Continued) H.Environmental Matters 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 City adopted a proactive 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 and Sewer Fund. The U.S. Department of Defense transferred property located at the former Schilling Air Force Base (the Base or Site) to the Authority on or about September 9, 1966. The property is now known to contain areas of extensive soil and groundwater contamination, which is a result of the use and disposal of chlorinated solvents during military operations at the Base from 1942 until Base closure in 1965. The U.S. Department of Defense is responsible for the investigation and remediation of contamination caused bymilitary activities at current and former military bases. The U.S. Army Corps of Engineers (Corps) is the lead agency for the Department at formerly used defense sites. The Corps has investigated the soil and groundwater contamination at the Site under the regulatory oversight of the U.S. Environmental Protection Agency (EPA) and the Kansas Department of Health and Environment (KDHE). The Site is not designated as a National Priority List Superfund site, but investigation and remediation are required to be in compliance with the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA). Potential liability for contamination under CERCLA extends broadly to parties associated with the release or presence of hazardous substances, including not only those entities involved with contaminant use and disposal, but in some cases other current and former owners and operators of contaminated sites. As a current owner of extensive amounts of property at the Site, the Authority is potentially liable under CERCLA, although the Authority believes that it has meritorious defenses to such liability. The Authority is considered to be a Potentially Responsible Party (PRP) for the Site, primarily due to its status as a property owner. The Authority,City of Salina, Unified School District No. 305 and the Kansas Board of Regents (Kansas State University Polytechnic Campus), (collectively Salina Public Entities) currently own over 90% of the nearly 4,000 acres of the Base property. No third party has asserted any claim for bodily injury or property damage. Beginning in August 2007, the Salina Public Entities initiated settlement negotiations with the U.S. Federal Government. The negotiation objectives at that time included transferring the responsibility for completing the cleanup from the U.S. to the Salina Public Entities. The local objective was to reach a settlement agreement with the U.S. that provides the Salina Public Entities sufficient funds to complete cleanup operations over a 30- year period. During calendar year 2008, the Salina Public Entities, by and through its environmental consultant, prepared a detailed Cost to Complete Estimate (CTC). The CTC preparation included consultation with the EPA and <DbK1 !"( 7&,#)& L@/,#A K)*#*#($P 2!2 W&$ A+=%,(*(C #) i@)( +. GHHZ &)C $@/=#**(C *+ *"( 2+>%$1 Subsequently, on January 23, 2009, the Salina Public Entities delivered a demand letter to the Corps. The letter demanded that settlement negotiations begin immediately with the U.S. Department of Justice. On May 14, 2009 the Authority was notified that the Corps referred the Base demand letter to the U.S. Department of Justice on May 12, 2009. The Salina Public Entitiesdelivered on or about May 10, 2010, a settlement offer and a draft of a lawsuit complaint to the attorney for the U.S. Department of Justice. The Salina Public Entities planned to file suit against the U.S. if the matter was not settled by the end of May2010. The Salina Public Entities did not intend to cut off settlement negotiations by the filing of suit, and this has been communicated to the U.S. No remedial action plan or record of decision has been adopted by the EPA or KDHE. 60 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 5. OTHER INFORMATION (Continued) H.Environmental Matters (Continued) On or about May 27, 2010, the Salina Public Entities filed their Complaint against the United States of America, the United States Department of Defense and Secretary of Defense, Robert M. Gates, in his official capacity (collectively, "Defendants"). On orabout September 22, 2010, the Salina Public Entities filed their First Amended Complaint in four counts: Count I Citizen Suit Claim Pursuant to 42 U.S.C.§ 9659(a)(2), Count II Citizen Suit Claim Pursuant to 42 U.S.C.§ 9659(a)(1), Count III Claim for Recovery of Response Costs Pursuant to 42 U.S.C.§ 9607(a) and Count IV Claim for Declaratory Judgment Pursuant to 42 U.S.C.§ 9613(g)(2). On or about October 6, 2010, Defendants filed their motion to dismiss and to strike, primarily with respect to the citizen suit claims. On or about March 25, 2011, Judge Murguia entered his Memorandum and Order. The Judge granted the Defendants' motion to dismiss Counts I and II (citizen suit claims) for lack of subject matter jurisdiction. He also granted the Defendants' motion to dismiss the Salina Public Entities' requests for attorney fees, with the exception of non-litigation attorney fees. He denied the Defendants' motion to strike the Salina Public Entities' allegations of a conflict of interest. The Salina Public Entities' claims under Counts III and IV for response costs under CERCLA 9607(a) are not affected by the Judge's rulings. The Salina PublicEntities disagree with most of the Judge's filings and, if necessary, plan to take an interlocutory appeal to the Tenth Circuit to contest the rulings. On or about April 22, 2011, Defendants filed their Answer to First Amended Complaint and Counterclaim against the Salina Public Entities. Count I of the Counterclaim alleges a claim for contribution under CERCLA, 42 U.S.C.§ 9613(f)(1). Count II of the Counterclaim alleges a claim for cost recovery under CERCLA, 42 U.S.C.§ 9607(a)(1). Count II alleges costs incurred by the U.S. Environmental Protection Agency of approximately $1,838,241 as of September 30, 2007, and alleges costs incurred by the Corps of approximately $14,915,228 as of April 17, 2009. The Salina Public Entities intend to vigorously contestthe claims brought against them and will assert, among other defenses, the third-partydefense under 42 U.S.C.§ 9607(b)(3). The parties agreed on a mediation to discuss settlement. The mediation sessions occurred in October 2011, and the mediation discussions continued for over a year. The parties have now agreed upon a partial settlement. The partial settlement includes payment by the U.S. in exchange for performance by the Salina Public Entities of a remedial investigation/feasibility study through entry of a Corrective Action Decision by KDHE (the "Work"). The present cost estimate of the Work is less than $10,000,000. The agreement is that the U.S. will pay 90% of the cost of the Work with the Salina Public Entities responsible for payment of the remaining 10%. It is anticipated that the agreed share of the Salina Public Entities will be paid by the City of Salina. Also, the claims and counterclaims in the lawsuit have been dismissed without prejudice with provisions tolling any and all statutes of limitation. No party is obligated under the settlement agreement to implement the Corrective Action Decision upon its entry by KDHE, and the parties will either negotiate an agreement to implement such Corrective Action Decision or refile their claims in court. The Salina Public Entities have entered into a Consent Agreement and Final Order ("CAFO") with KDHE, which is conditioned upon the U.S.'s payment to the City. On May 2, 2013, the U.S. District Court for the District of Kansas entered its Consent Decree.City of Salina, Kansas, et al. v. United States of America, et al., Case No. 1 0-CV -2298 CM/DJW. The Court's Consent Decree approved the settlement among the parties. The current status is that the U.S. wire transferred $8,426,700 to the account of the City, and the City added the share of the Salina Public Entities in the amount of $936,300 to the account. The Remedial Investigation (RI) portion of the CAFO scope of work was completed on or about June 18, 2018. The Feasibility Study portion of the CAFO scope of work was completed on or about November 29, 2018. <DbKP$ C>&.* .#)&, 2+>>(A*#?( 8A*#+) D(A#$#+) \]28D^ W&$ %@/,#$"(C +) +> &/+@* 8%>#, Z; GHFI1 <DbK "(,C & public hearing for the final CAD on or about May 1, 2019. Final comments concerning thedraft final CAD were due on or about May 8, 2019. KDHE published a final CAD on or about July 29, 2019. The KDHE CAD details the scope of work and estimated cost for the cleanup of DoD-caused contamination at the former Schilling AFB. 61 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 5. OTHER INFORMATION (Continued) H.Environmental Matters (Continued) The Salina Public Entities participated in three mediation sessions with the U.S. Department of Justice (DOJ) and the U.S. Army Corps of Engineers (USACE) on November 19-21, 2019; December 10-11, 2019; and the final subsequent to year-end to determine payment by the United States in exchange for performance by the Salina Public Entities of the KDHE CAD. Special environmental legal counsel for the Salina Public Entities has negotiated with the DOJ for the completion of a Consent Decree that embodies the results of the three mediation sessions. The final draft of the Consent Decree will be considered by the Salina Public Entities in a joint meeting scheduled for June 24, 2020. Upon approval by the U.S. District Court for the District of Kansas, the CD will provide the Salina Public Entities funding from the United States for the Remedial Design (RD) and Remedial Action (RA) work detailed in the KDHE CAD. Although the claims and counterclaims in the lawsuit have been dismissed without prejudice, the City intends to vigorously pursue its claims that the U.S. should implement the Corrective Action Decision upon its entry by KDHE and its defenses against any claims brought against it. Based on presently known information, the City has determined that while a possible liability exists, at this time, no reasonable estimate of the possible liability can be made. Therefore, no liability related to that matter has been recorded. I.Other Postemployment Healthcare Benefits Plan Description. The City offers postemployment health insurance to retirement employees. The benefits are through a single employer defined benefit postemployment healthcare plan administered by the City. provided The Employee Benefit Plan (the Plan) provides medical and dental benefits to eligible early retirees and their spouses. KSA 12-5040 requires all local governmental entities in the state that provide a group health care plan to make participation available to all retirees and dependents until the retiree reaches the age of 65 years. No separate financial report is issued for the Plan. Funding Policy. The contribution requirements of plan participants and the City are established and amended by the City. The required contribution is based on projected pay-as-you-go financing requirements. In 2019, the City did not contribute to the plan. At December 31, 2019, the following employees were covered by the benefit terms: Active employees441 Retirees and covered spouses32 Total473 The total OPEB liability of $3,519,327was measured as of December 31, 2018and was determined by an actuarial valuation as of that date. The total OPEB liability in the December 31, 2017 actuarial valuation was determined using the following assumptions and other inputs, applied to all periods in the measurement, unless otherwise specified: Valuation dateDecember 31, 2017 Actuarial cost methodEntry age normal as a level percentage of payroll Inflation2.75% Salary increases3.50% Discount rate4.10% Medical & Pharmacy: 6.20% for 2018, decreasing 0.60% per year to an ultimate rate of Healthcare cost trend rates5% for 2030 and through 2040 Dental: 5.00% to 2020, then drop to 4.90% in 2030 then back to 5.00% in 2040 Retiree's share of benefit 100% of the premium related costs 62 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 5. OTHER INFORMATION (Continued) I.Other Postemployment Healthcare Benefits (Continued) The discount rate was based on an index rate for 20-year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher. Mortality rates were based on the RP 2014 Mortality Tables, with age setbacks and age set forwards as well as other adjustments based on different membership groups. Future mortality improvements are anticipated using Scale MP-2017. Changes in the total OPEB liability are as follows: Balance 1/1/20193,487,302$ Service cost249,957 Interest125,877 Benefit paid\[157,465\] Changes in assumptions\[186,344\] $ 3,519,327 Balance 12/31/2019 The following presents the total OPEB liability of the 2#*-; &$ W(,, &$ W"&* *"( 2#*-P$ *+*&, 5LKJ ,#&/#,#*- W+@,C be if it were calculated using a discount rate that is one percentage point lower (2.44%) or one percentage point higher (4.44%) than the current discount rate: 1% DecreaseDiscount Rate1% increase (3.10%)(4.10%)(5.10%) $ 3,805,079$ 3,519,327$3,253,600 Total OPEB Liability The following presents the total OPEB liability of the 2#*-; &$ W(,, &$ W"&* *"( 2#*-P$ *+*&, 5LKJ ,#&/#,#*- W+@,C be if it were calculated using healthcare cost trend rates that are one percentage point lower (5.8% decreasing to 3.1%) or one percentage point higher (7.8% decreasing to5.1%) than the current healthcare cost trend rate: Healthcare Cost 1% DecreaseTrend Rates1% increase $ 3,092,948$ 3,519,327$4,027,376 Total OPEB Liability For the year ended December 31, 2019, the City recognized OPEB expense of $364,903. Deferred Outflows of Resources and Deferred Inflows of Resources. At December 31, 2019, the City reported deferred outflows related to other postemployment benefits from the following sources: Deferred outflowsDeferred inflows of resourcesof resources $ 70,090$ \[164,999\] Changes of assumptions $ \[164,999\] Total70,090$ Amounts reported as deferred outflows of resources will be recognized in OPEB expense as follows: 63 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 5. OTHER INFORMATION (Continued) I.Other Postemployment Healthcare Benefits (Continued) Deferred Year ended\[Inflows\] Outflows June 30,Amount 2020$ \[10,931\] 2021\[10,931\] 2022\[10,931\] 2023\[10,931\] 2024\[10,931\] \[40,254\] 2025+ $ \[94,909\] Total J.Other Postemployment Benefits (KPERS) Plan Description. The Cityparticipates in a multiple-employer defined benefit other postemployment benefit (OPEB) plan (the Plan) which is administered by the Kansas Public Employees Retirement System (KPERS). The Plan provides long-term disability benefits and a life insurance benefit for disabled members to KPERS members, as provided by K.S.A. 74-04927. The Plan is administered through a trust held by KPERS *"&* #$ .@)C(C *+ %&- &))@&, /()(.#* %&-=()*$1 b+W(?(>; /(A&@$( *"(*>@$*P$ &$$(*$ &>( @$(C *+ %&-employee benefits other than OPEB, the trust does not meet the criteria in paragraph 4 of GASBStatement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other ThanPensions. Accordingly, the Plan is considered to be administered on a pay-as-you-go basis. Benefits. Benefits are established by statute and may be amended by the KPERS Board of Trustees. The Plan provides long-term disability benefits equal to 60 percent (prior to January 1, 2006, 66 2/3 percent) ofannual compensation, offset by other benefits. Members receiving long-term disability benefits alsoreceive credit KPERS retirement benefits and have their group life insurance coverage towards their continued under the waiver of premium provision. The monthly longN*(>= C#$&/#,#*- /()(.#* #$ XH %(>A()* +. *"( =(=/(>P$ =+)*",- A+=%()$&*#+); W#*" &=inimum of $100 and a maximum of $5,000. The monthly benefit is subject to reduction by deductiblesources of income, which include Social Security primary disability or retirement benefits, workerscompensation benefits, other disability of benefits from any other sources by reason of employment, andearnings from any form employment. If the disability begins before age 60, benefits are payablewhile the disability continues until the th =(=/(>P$ XT birthday or retirement date, whichever occursfirst. If the disabilitybegins after age 60, benefits are payable while the disability continues, for a periodof five years or until the member retires, whichever occurs Benefit payments for disabilities causedor contributed to by substance abuse or non- first. biologically based mental illnesses are limited to theshorter of the term of the disability or 24 months per lifetime. The death benefit paid tobeneficiaries of disabled members #$ FTHg +. *"( '>(&*(> +. F^ *"( =(=/(>P$annual rate of compensation at the time of disability, or 2) the members previous 12 months ofcompensation at the time of the last date on payroll. If the member has been disabled for five or moreyears, the annual compensation or salary rate at the time of death will be indexed using the consumerprice index, less one percentage point, to compute the death benefit. If a member is diagnosed asterminally ill with a life expectancy of 12 months or less, the member may be eligible to receive up to100% of the death benefit rather than having the benefit paid to the beneficiary. If a member retires ordisability benefits end, the member may convert the group life insurance coverage to an individualinsurance policy. Employees covered by benefit terms.At June 30, 2019, the valuation date, the following employees were covered by the benefit terms: 64 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 5. OTHER INFORMATION (Continued) J.Other Postemployment Benefits (KPERS) (Continued) Active employees282 Disabled members 2 Total284 Total OPEB Liability. The City and its component units reported atotal KPERS OPEB liability of $527,919as of December 31, 2019, was measured as of June 30, 2019, and was determined by an actuarial valuation as of December 31, 2018, which was rolled forward to June 30, 2019, using the following actuarial assumptions: Valuation dateDecember 31, 2018 Actuarial cost methodEntry age normal Inflation2.75% Salary increases3.00% Discount rate (based on 20 year municipal bond rate with an average rating of AA/Aa or better, obtained through the Bond Buyer General Obligation 20-Bond 3.50% Municipal Index) The discount rate was based on the bond buyer general obligation 20-bond municipal index. Mortality rates were based on the RP 2014 Mortality Tables, with age setbacks and age set forwards as well as other adjustments based on different membership groups. Future mortality improvements are anticipated using Scale MP-2019. The actuarial assumptions used in the December 31, 2018valuation were based on the results of an actuarial experience study for the period of January 1, 2013 through December 31, 2015. Other demographic assumptions are set to be consistent with the actuarial assumptions reflected in the December 31, 2018KPERS pension valuation. The changes in the total OPEB liability are as follows: Total KPERS OPEB Liability CityHousing AuthorityAirport AuthorityTotal Balance 1/1/2019$546,926$ 8,886$ 11,126$566,938 Service cost 52,8631,5072,84357,213 Interest 22,66737254123,580 Effect of economic/demographic gains or losses\[95,243\] \[2,512\]\[1,324\] \[99,079\] Changes in assumptions 7,614\[67\]152 7,699 Benefit payments \[28,432\]-- \[28,432\] $506,395 $ 8,186$ 13,338$527,919 Balance 12/31/2019 Sensitivity of the total KPERS OPEB liability to changes in the discount rate.The following presented the total <LKB7 5LKJ ,#&/#,#*- +. *"( 2#*-; &$ W(,, &$ W"&* *"( 2#*-P$ *+*&, <LKB7 5LKJ ,#&/#,#*- W+@,C /( #. #* W(>( calculated using a discount rate that is 1-percentage-point lower (2.87%) or 1-percentage-point higher (4.87%) than the current discount rate: 1% DecreaseDiscount Rate1% increase (2.50%)(3.50%)(4.50%) Total OPEB Liability - City $ 506,395526,498$ 485,611$ Total OPEB Liability - Housing Authority8,394$ 8,186$ 7,941$ Total OPEB Liability - Airport Authority13,693$ 13,338$ 12,901$ 65 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 5. OTHER INFORMATION (Continued) J.Other Postemployment Benefits (KPERS) (Continued) Sensitivity of the total KPERS OPEB liability to changes in the healthcare cost trend rates. The following presented the total KPERS OPEB liability of the City calculated using the current healthcare cost trend rates as total KPERS OPEB liability would be if it were calculated using trend rates that are 1 W(,, &$ W"&* *"( 2#*-P$ percentage point lower or 1 percentage point higher than the current trend rates. The reader should note that healthcare trend rates do not affect the liabilities related to the long-term disability benefits sponsored by KPERS, but this exhibit is provided as it is a required disclosure under GASB 75. Healthcare Cost 1% DecreaseTrend Rates1% increase Total OPEB Liability - City$ 506,395$ 506,395$ 506,395 $ 8,186$ 8,186$ 8,186 Total OPEB Liability - Housing Authority Total OPEB Liability - Airport Authority $ 11,395$ 1,126$ 10,800 For the year ended June 30, 2018, the Cityrecognized OPEB expense of $75,561. Deferred Outflows of Resources and Deferred Inflows of Resources. At December 31, 2019, the City reported deferred outflows and inflows related to other postemployment benefits from thefollowing sources: CityHousing AuthorityAirport Authority DeferredDeferredDeferredDeferredDeferred Outflows ofInflows ofInflows ofInflows ofInflows of Resources ResourcesResourcesResourcesResources Differences between expected and actual experience59,657$ 85,454$ 2,253$ -$ 4,521$ Changes of assumptions6,831 11,633223 136 173 $ 66,488 $ 97,087$ 2,476$ 136$ 4,694 Total $72,729and $4,294reported as deferred outflows of resources related to OPEB resulting from Cityand Airport Authoritycontributionssubsequent to the measurement date,respectively, will be recognized as a reduction of the OPEB liability in the year ended December 31, 2019. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in OPEBexpense as follows: Year EndedHousing Airport June 30,CityAuthorityAuthority 2020\[2,886\]$ \[287\]$ $ \[578\] 2021\[2,886\] \[287\]\[578\] 2022\[2,886\] \[287\]\[578\] 2023\[2,886\] \[287\]\[578\] 2024\[2,886\] \[287\]\[578\] Thereafter\[16,169\] \[1,041\] \[1,668\] $\[30,599\]$ \[2,476\]$ \[4,558\] Total 66 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 5. OTHER INFORMATION (Continued) K.Tax Abatements In 2019, the City of Salina participated in real property tax abatements for five local companies. Property tax abatements are authorized under Kansas state statutes K.S.A. 12-1740 et seq. and K.S.A. 79-201a and subject to City policy. The City provides property tax abatements to encourage existing industry to expand, assist new business start- ups, recruit new companies from out-of-state or internationally, encourage high technology and research based businesses, encourage training and development of Salina area employees, and encourage location and retention of businesses which are good "corporate citizens" that will add to the quality of life in the community through leadership and support of civic and philanthropic organizations. Property tax abatements reduce ad valorem property taxes. The percentage of reduction ranges from 40.5% to 100%, but in all cases, the maximum duration is for ten years as per state statute. To receive an abatement, applicants must submit an application, which undergoes due diligence and analysis before being considered by the City Commission. If the abatement is authorized,the applicant must sign a performance agreement that specifies annual compliance measures. Each year, the applicant submits a renewal application, along with compliance information, which is reviewed by City staff for conformance with agreement provisions. If compliance is not met, appeals can be made to the City Commission to determine the amount of incentives, if any, to be received by the property owner. The City of Salina negotiates property tax abatements on an individual basis. Ad Valorem Property Tax Abatements Abatement CompanyStartEnd%2019 Tax Abated Salina Vortex Corp (facility improvements)2015202475% $ 14,369 Great Plains Mfg (facility improvements)20142023100%2,744 Veris Technologies (facility addition/improvements)2015202440.5%1,755 Twin Oaks (facility addition/improvements)2015202455%2,565 Salina Field House (facility)20172026100%81,376 $ 102,808 Total Tax IncrementFinancing (TIF).TIFs are an economic development tool established by the Kansas TIF Act (K.S.A. 12-1770 et seq.) and subject to City policy to aid in financing projects for substantial public benefit. Public benefits can include creating jobs or retaining existing employment, eliminating blight, strengthening the employment and economic base of the City, increasing property values and tax revenues, reducing poverty, creating economic stability, upgrading older neighborhoods, facilitating economic self-sufficiency, promoting projects that are of community wide importance, or implementing the economic development goals of the City. The program works by reimbursing a portion of the incremental increase in property taxes resulting from improvements and a portion of local sales tax generated within the district to the property owner. The base value, or what the property was valued at prior to improvements, is shielded from the rebate. To receive a TIF, applicants must submit a detailed, written proposal to the City, which will undergo due diligence and analysis before being considered by the City Commission. The City Commission then determines if it will commence the statutory process to create a redevelopment district. If the TIF district is authorized, the City and applicant will enter into an agreement that specifies performance, certification, and reimbursement requirements. City Staff will work with the property owner to certify eligible expenses and compliance with agreement provisions. Once the project begins to generate TIF revenues (sales tax and/or property tax), City staff works with the distributing agency and property owner to generate and track reimbursements. Because reimbursements are not paid until after improvements are put in place, agreement compliance is met, eligible expenses are certified, and sales and/or property tax distributions are made to the City, there are no provisions for recapturing taxes. The City of Salina negotiates TIFs on an individual basis. 67 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 5. OTHER INFORMATION (Continued) K.Tax Abatements (Continued) TIF Project Plans 2019 Reimbursements DistrictPurposeBase YearExpiresSales TaxProperty Tax Construction of 10.79 acres of shopping center, including single and multi-tenant retail space, and related public and private Lambertzinfrastructure20072027$268,905 $215,999 Total$268,905$215,999 Community Improvement Districts (CID). CIDs are an economic development tool established by the Kansas CID Act (K.S.A. 12-6a26 et seq.) and subject to City policy to assist with the development of community improvements which can benefit a development and the public. In all CIDs, public improvements were financed initially by the developer and are reimbursed annually via a two percent (2%) transportation district sales tax on retail or taxable services occurring within the district. To establish a CID, the applicantfirst submits a CID petition which is signed by the owners of all of the land within the proposed district. The City Commission then considers the request to establish a CID. If the CID is authorized, the City and applicant will enter into an agreement that specifies performance, certification, and reimbursement requirements. City Staff will work with the property owner to certify eligible expenses and compliance with agreement provisions. Once the project begins to generate CID revenues, City Staff works with the distributing agency and property owner to make and track reimbursements. Because reimbursements are not paid until after improvements are put in place, agreement compliance is met, eligible expenses are certified, and CID sales tax distributions are made to the City, there are no provisions for recapturing taxes. The City of Salina negotiates CIDs on an individual basis. Community Improvement District (CID) 2019 Eligible Reimbursement NameRateStartExpiresPurposeAmount Assist with improvements to hotel South 9th Street2.00%3/1/201612/31/2037and conference center$251,052 Total$251,052 Neighborhood Revitalization Areas (NRA).NRAs are authorized under Kansas state statutes K.S.A. 12-117 and subject to City policy to spur investment andrevitalization of properties which can benefit a neighborhood and the public. The program works by rebating a portion of the incremental increase in property taxes resulting from improvements back to the property owner. The base value, or what the property was valued at prior to improvements, is shielded from the rebate. Participation in the program and percentage of rebate and duration are determined separately by the City, County, and School District. The current City of Salina adopted plan is a 4-yearplan running from 2015-2019. It allows for a 10-yearrebate and provides rebates from 25% to 100% depending on year in plan and type of improvement. To receive an NRA, taxpayers must submit an application, which undergoes due diligence and analysis before being approved by the City. If the NRA is approved, each year, the applicant must submit proof that property taxes have been paid in full. Because the rebate is not given until after improvements are put in place and property taxes paid, there are no provisions for recapturing taxes. The City of Salina approves NRAs on an individual basis. 68 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 5. OTHER INFORMATION (Continued) K.Tax Abatements (Continued) Neighborhood Revitalization Act (NRA) 2019 Property/Business NameAddressTypeRebate Paid Serio Guzman241 N. Front StreetRes111$ Christina Litwiller148 N. 12th StreetRes72 Jeremy Cessna219 N. Front StreetRes77 William & Mary Warhurst714 Park StreetRes15 Holly Fain204 Forest AvenueRes110 Arlene Cox200 Forest AvenueRes110 Gloria Williams903 N. 10th StreetRes80 Michelle Rogan240 S. Clark StreetRes96 Samuel A. Rock1329 N. 4th StreetRes16 Jessica A. Ziegler221 N. 2nd StreetRes109 Devin or Jessica Know207 N. PennRes156 157 N. Seventh, 203 W. Ash, 205 W. Ash, 207 W. Ravey Investments LLCAsh & 209 W. AshCom581 Lamont Outland1206 N. 7th StreetRes93 Michelle Bunch634 N. 8th StreetRes91 Jermaine and Tykea Polk226 N. 2nd StreetRes116 Mary Marshall937 N. 3rd StreetRes86 Angela Fishburn1219 N. 8th StreetRes87 Kress Building LLC134 S. Santa Fe AveCom411 Heritage at Hawthorne Partners, LL715 N. 9th Street Com1,527 Will & Mary Warhurst809 W. AshRes121 Donnie & Ramona Marrs2035 E. Iron #300RRes859 2035 E. Iron #213C/105R/302R/202R/205R/006R/301RA/301 TJTM, Inc.RB/001R/002R/003R/004R/005RRes5,359 Troy Valcil853 NavahoRes62 Michelle Malone815 N. 2nd StreetRes2 Timothy & Linda Rickman719 E. AshRes140 Yvette Gelinas1115 N. 8th StreetRes90 Charles H Carroll Jr Trust156-158 S. Santa FeCom4,149 Pestinger Enterprises LLC2035 E. Iron Avenue, Unit #306RRes1,300 Latisha Pierce705 N. 2nd StreetRes251 Tanya Shiehzadeh703 N. 2nd StreetRes208 Robert & Brenda Burns1205 N. 4th StreetRes160 Property Partners LLC116 & 118 N. Santa Fe (2nd Floor Loft Apartments)Com1,284 Phill Hemmer2035 E. Iron Avenue, Unit #203RRes1,615 AP Property Holdings, LLC201 E. Iron AvenueCom9,578 Gregory Davis156-158 N. 11th StreetRes519 Micheal Money2035 E. Iron Avenue, Unit #206RRes1,174 Traniesh Byrd701 N. 2nd StreetRes178 Mark Martin Living Trust2035 E. Iron #104RCom818 AKKJ, LLC2035 E Iron #304RRes835 Kevin & Rebecca Poland601 JohnstownRes36 Jana Endsley 1321 N. 3rd StreetRes177 Kanesha Samilton 214 W. Grand AvenueRes227 Maria E Padilla 810 N. 5th StreetRes280 Kansas Property Investors, LLC, 230 S. Broadway BlvdCom1,400 JK Webb Properties LLC120 S. Santa Fe AvenueCom1,981 Alan and Nancy Franzen1413 ArapahoeRes184 Brandon Sears900 N. 12th StreetRes22 Santa Fe Properties, LLC131 N. Santa Fe Avenue/128 S. Santa Fe AvenueCom2,231 Rusty A Leister Living Trust600 N. Santa Fe AvenueCom2,352 Heritage at Hawthorne Partners II, LLC.715 N. 9th Street, Phase IICom1,750 Christopher Helmer619 N. 5th StreetCom762 Christopher Helmer545 N. 12th Street Res203 Total $ 44,248 69 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2019 Note 5. OTHER INFORMATION (Continued) L.Subsequent Events On April 29,2020, the City issued Series 2020-A general obligation internal improvement bonds in the amounts of $5,210,000. Proceeds from the bonds will be used to provide long-term financing for a portion of the costs +. A(>*&#) %@/,#A #=%>+?(=()*$ W#*"#) *"( 2#*- &)C *+ >(*#>( & %+>*#+) +. *"( 2#*-P$ +@*$*&)C#)' '()(>&, +/,#'&*#+) temporary notes. The City will make the first payment on the bonds on October1, 2021and the last payment on October 1, 2035. The interest rate on the bonds ranges from 2.00% to 3.00%. Alsoon April 29, 2020, the City issued Series 2020-1 temporary notes in the amounts of $7,050,000. Proceeds from the notes will be used to finance certain public improvements within the City. The maturity date of the temporary notes is May 1, 2021and the interest rate on the notes is 1.00%. 5) i&)@&>- EH; GHGH *"( \\+>,C b(&,*" 5>'&)#O&*#+) C(A,&>(C *"( 2+>+)&?#>@$ +@*/>(&0 &$ & kL@/,#A b(&,*" K=(>'()A- +. 3)*(>)&*#+)&, 2+)A(>)l &)C +) Q&>A"FF; GHGH; C(A,&>(C #* *+ /( & %&)C(=#A1 8A*#+)$ W(>( taken to help mitigate the spread of the virus, including social-distancing, quarantines and forced closures of certain types of public places and businesses. Management is unable to quantify the financial and other #=%&A*$ *+ *"( 2#*-P$ .#)&)A#&, %+$#*#+) /@* /(,#(?($ & =&*(>#&, #=%&A* #$ >(&$+)&/,- %+$$#/,(1 70 CITY OF SALINA, KANSAS REQUIRED SUPPLEMENTARY INFORMATION OTHER POSTEMPLOYMENT BENEFITS 7A"(C@,( +. 2"&)'($ #) *"( 2#*-P$ !+*&, 5LKJ 9#&/#,#*- &)C B(,&*(C B&*#+$ Last Ten Fiscal Years* Total OPEB liability20192018 Service cost $ 226,762249,957$ Interest125,877128,578 Benefit paid\[157,465\] \[265,000\] Changes in assumptions\[186,344\] 90,918 Net change in total OPEB liability32,025 181,258 Total OPEB liability - beginning3,487,302 3,306,044 $ 3,519,327$ 3,487,302 Total OPEB liability - ending $ 25,232,129$24,740,225 Covered payroll Total OPEB liability as a percentage of covered-employee payroll 13.95%14.10% $ 157,465$ 265,000 Actuarially determined contribution $ 157,465$ 265,000 Actual contribution Contributions as a percentage of covered payroll0.62%1.07% *- Data became available with the inception of GASB 75 during fiscal year 2018, therefore 10 years of data is unavailable. 71 CITY OF SALINA, KANSAS REQUIRED SUPPLEMENTARY INFORMATION(CONTINUED) OTHER POSTEMPLOYMENT BENEFITS -KPERS 7A"(C@,( +. 2"&)'($ #) *"( 2#*-P$ !+*&, 5LKJ 9#&/#,#*- &)C B(,&*(C B&*#+$ Last Ten Fiscal Years* Total OPEB liability20192018 Service cost $ 52,38052,863$ Interest22,667 17,061 Effect of economic/demographic gains or losses\[95,243\]75,173 Effect of assumptions changes or inputs7,614 \[6,574\] Benefit payments\[28,432\] \[30,368\] Net change in total OPEB liability\[40,531\]107,672 Total OPEB liability - beginning546,926 439,254 $ 506,395$ 546,926 Total OPEB liability - ending $ 13,991,543$13,652,194 Covered payroll Total OPEB liability as a percentage of covered-employee payroll 3.62%4.01% $ 147,114$ 109,466 Actuarially determined contribution $ 147,114$ 109,466 Actual contribution Contributions as a percentage of covered payroll1.05%0.80% 72 CITY OF SALINA, KANSAS REQUIRED SUPPLEMENTARY INFORMATION(CONTINUED) KPERS PENSION PLAN 7A"(C@,( +. *"( 2#*-P$ L>+%+>*#+)&*( 7"&>( +. *"( :(* L()$#+) 9#&/#,#*- Last Ten Fiscal Years* Police andPolice andPolice andPolice andPolice and LocalFiremenLocalFiremenLocalFiremenLocalFiremenLocalFiremen 12/31/15 12/31/1512/31/1612/31/1612/31/1712/31/1712/31/1812/31/1812/31/1912/31/19 City's proportion of the net pension liability0.764%2.258%0.761%2.180%0.811%2.191%0.790%2.081%0.796%2.074% City's proportionate share of the net pension liability10,027,679$16,395,794$11,770,699$20,251,512$11,753,246$20,546,882$11,014,328$20,019,473$11,123,112$20,993,820$ City's covered-employee payroll12,931,197$10,161,866$13,251,236$10,730,033$13,548,056$10,593,419$13,944,989$10,441,055$14,366,294$10,859,219$ City's proportionate share of the net pension liability as a percentage of its covered-employee payroll77.55%161.35%88.83%188.74%86.75%193.96%78.98%191.74%77.43%193.33% Plan fiduciary net position as a percentage of the total pension liability71.98%74.60%68.55%69.30%72.15%70.99%74.22%71.53%75.02%71.22% *The amounts presented for each fiscal year were determined as of 12/31. Data became available with the inception of GASB 68 during fiscal year 2015, therefore 10 years of data is unavailable. 7A"(C@,( +. *"( 2#*-P$ 2+)*>#/@*#+)$ Last Ten Fiscal Years* Police andPolice andPolice andPolice andPolice and LocalFiremenLocalFiremenLocalFiremenLocalFiremenLocalFiremen 12/31/1512/31/1512/31/1612/31/1612/31/1712/31/1712/31/1812/31/1812/31/1912/31/19 Contractually required contribution1,256,217$ 2,527,995$ 1,243,711$ 2,361,273$ 1,179,745$ 1,986,933$ 1,205,334$ 2,181,617$ 1,328,915$ 2,497,473$ Contributions in relation to the contractually required contribution1,256,217 2,527,995 1,243,711 2,361,273 1,179,745 1,986,933 1,205,334 2,181,617 1,328,915 2,497,473 Contribution deficiency \[excess\]-$ $ -$ -$ -$ -$ -$ -$ -$ -$ - City's covered-employee payroll13,251,236$10,730,033$13,548,056$10,593,419$13,944,989$10,441,055$14,366,294$10,859,219$14,948,415$11,285,465$ Contributions as a percentage of covered employee payroll9.48%23.56%9.18%22.29%8.46%19.03%8.39%20.09%8.89%22.13% *Data became available with the inception of GASB 68 during fiscal year 2015, therefore 10 years of data is unavailable. 73 CITY OF SALINA, KANSAS COMBINING STATEMENTS -NONMAJOR FUNDS Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. Bicentennial center fund -To account for the activities of the City's convention center. Business improvement districtfund -State law allows businesses within an area to voluntarily establish an improvement City. This fund is used to account for the assessments made on the District. All revenues are to be used within the Business Improvement District. Neighborhood park fund -To account for fees collected from new residential building projects in Salina. Expenditures are for acquisition or development of neighborhood parks in the growing areas of the community. Special parks and recreation fund -To account for liquor tax revenues, whichmust be used for park maintenance and improvements. Special alcohol fund -To account for liquor tax revenues, whichmust be used for programs, whichaddress prevention, education or intervention for drug and alcohol abuse. 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. Sales tax economic development fund -To account for2.34% of the .75cent sales tax designated for economic Development purposes. D+W)*+W) !36 D#$*>#A* oF .@)C d!+ &AA+@)* .+> >(?()@($ &)C (\[%()C#*@>($ >(,&*(C *+ *"( !&\[ 3)A>(=()* 6#)&)A#)' District that was formed as part of the Downtown Revitalization Project. th South 9CID fund -To account for incremental sales tax revenues received and disbursed back to the developer as part of the Community Improvement District formed in 2015. 7*&*( V>&)*$ .@)C d!+ &AA+@)* .+> '>&)* >(?()@( &)C (\[%()C#*@>($ >(A(#?(C .>+= *"( 7*&*( +. <&)$&$1 911 communicationsfund-To account for transitioning the receipt and administration of 911 fees to the City from the Kansas Departmentof Revenue and Saline County,as the City is now the public answering point. Monies will be used to pay for 911 related services. Kenwood cove capitalfund -To account for the Special Sales Tax proceeds to be used to provide for long-term capital maintenance activity at the facility. Special law enforcement fund -To account for revenues received from the sale of forfeited assets acquired during drug enforcement activities. Expenses are limited to capital items to be used for further drug enforcement activities. Police grants fund -To account for revenues from grants, whichare to be used for special police activities, including the D.A.R.E. program Federal grants fund -To account for grants received from the federal government to be used to monitor and mediate fair housing complaints. D.A.R.E. donations fund -To account for donations to the D.A.R.E. program. War memorial maintenance fund -To account for monies to be used for maintenance of the local war memorial. Arts & humanities fund-To account for revenues and expenses associated with arts and humanities activities. Federal CAREgrantfund-To account for revenue and expenses associated with the CAREGrant. Police Department federal forfeiture funds -To account for revenue and expenses associated with federal Equitable Sharing Program funds. 74 CITY OF SALINA, KANSAS COMBINING STATEMENTS -NONMAJOR FUNDS NONMAJOR SPECIAL REVENUE FUNDS -CONTINUED b+=(+W)(>$P &$$#$*&)A( .@)C N!+ >(A(#?( C+)&*#+)$ &)Cj+> +*"(> .@)C$ *+ &$$#$* ,+W &)C =+C(>&*( #)A+=( %(>$+)$ in improving their homes. L>#?&*( '>&)*$ .@)C d!+ &AA+@)* .+> >(?()@($ &)C (\[%()C#*@>($ >(,&*(C *+ '>&)*$ >(A(#?(C .>+= %>#?&*( ()*#*#($ W#*" specific purposes. 8)#=&, $"(,*(> C+)&*#+)$ .@)C d!+ &AA@=@,&*( C+)&*#+)$ &)C &AA+@)* .+> (\[%()$($ *+ /()(.#* *"( &)#=&, $"(,*(>1 NONMAJOR PERMANENT FUNDS Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not principal, =&- /( @$(C .+> %@>%+$($ *"&* $@%%+>* *"( >(%+>*#)' '+?(>)=()*P$ %>+'>&=$1 Cemetery endowment fund -To account for amounts expended for perpetual care of the City cemetery. Interest earnings are used for cemetery maintenance. Mausoleum endowment fund -To account for amounts charged for perpetual care of the City mausoleum. Interest earnings are used for mausoleum maintenance. Tricentennial commission fund -To account for donations to be used to celebrate the nation's tricentennialin the year 2076. 75 CITY OF SALINA, KANSAS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31, 2019 TotalTotalNonmajorTotal NonmajorNonmajorDebtNonmajor Special RevenuePermanentServiceGovernmental FundsFundsFundFunds ASSETS Cash and investments3,371,618$ 527,536$ 962,774$ 4,861,928$ Receivables 2,012-- 2,012 Accounts $ 3,373,630$ 527,536$ 962,774$ 4,863,940 Total assets LIABILITIES AND FUND BALANCES Liabilities: $ 170,244$-$ 23,179$ 193,423 Accounts payable 170,244-23,179 193,423 Total liabilities Fund balances: Restricted570,175-939,5951,509,770 Committed2,487,479527,536 -3,015,015 145,732--145,732 Assigned 3,203,386 527,536 939,595 4,670,517 Total fund balances $ 3,373,630$ 527,536$ 962,774$ 4,863,940 Total liabilities and fund balances See independent auditor's report on the financial statements. 76 CITY OF SALINA, KANSAS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2019 TotalTotalNonmajorTotal NonmajorNonmajorDebtNonmajor Special RevenuePermanentServiceGovernmental FundsFundsFundFunds REVENUES Taxes822,506$ -$ -$822,506$ Intergovernmental1,264,173 -523,3921,787,565 Charges for services486,443 8,027 -494,470 Licenses and permits4,500--4,500 Investment revenue9,2625,343 14,82829,433 Donations90,084--90,084 43,956--43,956 Miscellaneous 2,720,924 13,370538,2203,272,514 Total revenues EXPENDITURES Current Culture and recreation1,667,994 --1,667,994 Public safety256,444 --256,444 Public health and sanitation303,950 --303,950 Planning and development396,101 --396,101 Miscellaneous-35-35 Debt service Principal retirement--185,000185,000 Interest and other charges--47,27847,278 1,096,882--1,096,882 Capital outlay 3,721,371 35232,2783,953,684 Total expenditures Excess \[deficiency\] of revenues \[1,000,447\] 13,335305,942 \[681,170\] over \[under\] expenditures Other financing sources \[uses\] 1,472,014--1,472,014 Transfers in 1,472,014--1,472,014 Total other financing sources \[uses\] 471,567 13,335305,942790,844 Net change in fund balance Fund balance - Beginning of year2,713,491 514,201 633,6533,861,345 18,328--18,328 Prior period adjustment 2,731,819 514,201633,6533,879,673 Fund balance - Beginning of year, restated $ 3,203,386$ 527,536$ 939,595$ 4,670,517 Fund balance - End of year See independent auditor's report on the financial statements. 77 CITY OF SALINA, KANSAS COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31, 2019 BusinessSpecial ImprovementNeighborhoodParks &Special Bicentennial DistrictParkRecreationAlcohol Center ASSETS Cash and investments262,848$ 4,661$ 28,751$ 352,039$ 234$ Receivables -2,012--- Accounts $ 262,848$ 6,673$ 28,751$ 352,039$ 234 Total assets LIABILITIES AND FUND BALANCES Liabilities: $ 62,865$-$-$3,173$- Accounts payable 62,865--3,173- Total liabilities Fund balance: Restricted-6,673-348,866234 Committed199,983-28,751-- ----- Assigned 199,9836,67328,751348,866234 Total fund balance \[deficit\] $ 262,848$ 6,673$ 28,751$ 352,039$ 234 Total liabilities and fund balances CommunitySales TaxDowntown DevelopmentEconomicTIFSouthState911 RevolvingDevelopmentDistrict #19th CIDGrantsCommunications $ 714,710186,307$ 435,642$ 23,828$ 6,493$ 521,108$ ------ $ 186,307$ 714,710$ 435,642$ 23,828$ 6,493$ 521,108 $-$ 6,147$-$ 22,554$-$ 71,803 -6,147-22,554-71,803 -----186,307 -708,563 435,642 1,274 6,493 303,573 -----145,732 186,307 708,563 435,642 1,274 6,493 449,305 $ 186,307$ 714,710$ 435,642$ 23,828$ 6,493$ 521,108 See independent auditor's report on the financial statements. 7 CITY OF SALINA, KANSAS COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS (Continued) For the Year Ended December 31, 2019 KenwoodSpecial CoveLawPoliceFederalDARE CapitalEnforcementGrantsGrantsDonations ASSETS Cash and investments135,189$ 82$-$41,125$28,571$ Receivables ----- Accounts $ 135,189$82$-$41,125$ 28,571 Total assets LIABILITIES AND FUND BALANCES Liabilities: $-$-$-$-$ 458 Accounts payable ----458 Total liabilities Fund balance: Restricted----- Committed135,18982-41,12528,113 ----- Assigned 135,18982-41,12528,113 Total fund balance \[deficit\] $ 135,189$82$-$41,125$ 28,571 Total liabilities and fund balances Police WarFederalDepartmentAnimal MemorialArts &CAREFederalHomeowners'PrivateShelter MaintenanceHumanitiesGrantForfeiture FundsAssistanceGrantsDonationsTotals $ 50,14130,730$ 26,141$ 99$16,845$ 1,954$ 504,120$ 3,371,618$ ------- 2,012 $ 30,730$ 50,141$ 26,141$99$ 16,845$ 1,954$ 504,120$ 3,373,630 $-$377$ -$-$-$-$ 2,867$ 170,244 -377---- 2,867170,244 --26,141--1,954 -570,175 49,764-30,730 9916,845 -501,2532,487,479 -------145,732 30,73049,764 26,14199 16,845 1,954 501,2533,203,386 $ 30,730$ 50,141$ 26,141$99$ 16,845$ 1,954$ 504,120$ 3,373,630 See independent auditor's report on the financial statements. 7 CITY OF SALINA, KANSAS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31, 2019 BusinessSpecial BicentennialImprovementNeighborhoodParks &Special CenterDistrictParkRecreationAlcohol Revenues Taxes-$-$-$-$-$ Intergovernmental---227,304 227,304 Charges for services-83,916--- Licenses and permits--4,500-- Investment revenue----- Donations----- ---- Miscellaneous- -83,9164,500 227,304227,304 Total Revenues Expenditures Current Culture and recreation663,614 ---- Public safety----- Public health and sanitation----227,304 Planning and development-85,201--- --- 150,959- Capital outlay 663,614 85,201-150,959227,304 Total Expenditures Excess \[deficiency\] of revenues over \[663,614\] \[1,285\]4,500 76,345- \[under\] expenditures Other financing sources \[uses\] 765,916---- Transfers in Total other financing sources \[uses\]765,916 ---- 102,302 \[1,285\]4,500 76,345- Net change in fund balance Fund balance, beginning of year97,681 7,958 24,251272,521 234 ----- Prior period adjustment 97,681 7,95824,251 272,521234 Fund balance, beginning of year, restated $ 199,983$ 6,673$ 28,751$ 348,866$ 234 Fund balance, end of year CommunitySales TaxDowntown DevelopmentEconomicTIFSouthState911 RevolvingDevelopmentDistrict #19th CIDGrantsCommunications $344,976-$ 234,765$ 242,765$ -$-$ ----351,254344,954 ------ ------ --4,688 27-4,234 ------ --- 13,411-- -344,976 239,453 256,203 351,254 349,188 ------ -----256,444 ------ --41,767 256,176 -- -533,898-- 352,774- - 533,898 41,767 256,176 352,774 256,444 -\[188,922\] 197,68627 \[1,520\]92,744 ------ ------ -\[188,922\] 197,68627 \[1,520\]92,744 897,485186,307 237,956 1,247 8,013 356,561 ------ 186,307 897,485 237,956 1,247 8,013 356,561 $ 186,307$ 708,563$ 435,642$ 1,274$ 6,493$ 449,305 See independent auditor's report on the financial statements. CITY OF SALINA, KANSAS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS (Continued) For the Year Ended December 31, 2019 KenwoodSpecial CoveLawPoliceFederalDARE CapitalEnforcementGrantsGrantsDonations Revenues Taxes-$ -$-$-$-$ Intergovernmental--25,55737,800- Charges for services----- Licenses and permits----- Investment revenue----- Donations----- ----15,752 Miscellaneous --25,55737,80015,752 Total Revenues Expenditures Current Culture and recreation----- Public safety----- Public health and sanitation----- Planning and development----12,957 39,910-19,341-- Capital outlay 39,910-19,341-12,957 Total Expenditures Excess \[deficiency\] of revenues over \[39,910\]-6,21637,8002,795 \[under\] expenditures Other financing sources \[uses\] 68,350---- Transfers in Total other financing sources \[uses\]68,350 ---- 28,440-6,21637,8002,795 Net change in fund balance Fund balance, beginning of year106,749 82\[24,544\] 3,32525,318 --18,328-- Prior period adjustment 106,74982 \[6,216\]3,32525,318 Fund balance, beginning of year, restated $ 135,189$ 82$ -$ 41,125$ 28,113 Fund balance, end of year Police WarFederalDepartmentAnimal MemorialArts &CAREFederalHomeowners'PrivateShelter MaintenanceHumanitiesGrantForfeiture FundsAssistanceGrantsDonationsTotals $--$-$-$-$-$-$822,506$ ------50,000 1,264,173 -402,527-----486,443 -------4,500 313------9,262 ------90,084 90,084 -12,163-- 2,630--43,956 313414,690-- 2,630-140,084 2,720,924 -1,004,380-----1,667,994 -------256,444 ------76,646 303,950 -------396,101 -------1,096,882 -1,004,380---- 76,6463,721,371 313 \[589,690\]-- 2,630-63,438 \[1,000,447\] -637,748-----1,472,014 -637,748-----1,472,014 31348,058-- 2,630-63,438471,567 1,70626,1419914,21530,417 1,954 437,815 2,713,491 -------18,328 30,4171,70626,14199 14,215 1,954 437,8152,731,819 $ 30,730$ 49,764$ 26,141$99$ 16,845$ 1,954$501,253$3,203,386 See independent auditor's report on the financial statements. CITY OF SALINA, KANSAS COMBINING BALANCE SHEET NONMAJOR PERMANENT FUNDS December 31, 2019 CemeteryMausoleumTricentennial EndowmentEndowmentCommissionTotal ASSETS $ 527,536 $ 519,578$ 2,063$ 5,895 Cash and investments $ 519,578$ 2,063$ 5,895$ 527,536 Total assets LIABILITIES AND FUND BALANCES Liabilities $- $-$-$- Accounts payable ---- Total liabilities Fund balances 527,536 519,578 2,063 5,895 Committed $ 519,578$ 2,063$ 5,895$ 527,536 Total liabilities and fund balances See independent auditor's report on the financial statements. 82 CITY OF SALINA, KANSAS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR PERMANENT FUNDS For the Year Ended December 31, 2019 CemeteryMausoleumTricentennial EndowmentEndowmentCommissionTotal Revenues Charges for services8,027$ -$-$8,027$ 5,2622160 5,343 Investment revenue 13,2892160 13,370 Total revenues Expenditures 35--35 Miscellaneous 35--35 Total expenditures Net change in fund balance13,254 216013,335 506,324 2,042 5,835 514,201 Fund balances - beginning of year $ 519,578$ 2,063$ 5,895$ 527,536 Fund balances - end of year See independent auditor's report on the financial statements. 83 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) BICENTENNIAL CENTER FUND For the Year Ended December 31, 2019 Variance with Final Budget Budgeted Amounts Positive ActualOriginalFinal\[Negative\] Revenues $-$ 10,000$ 10,000$ (10,000) Investment revenue -10,000 10,000 (10,000) Total revenues Expenditures 663,614 725,000 725,000 61,386 Culture and recreation 663,614 725,000 725,000 61,386 Total expenditures Excess \[deficiency\] of revenues \[663,614\]\[715,000\]\[715,000\] 51,386 over \[under\] expenditures Other financing sources \[uses\] 765,916 754,496 754,496 11,420 Transfers in 765,916 754,496 754,496 11,420 Total other financing sources \[uses\] Excess \[deficiency\] of revenues and other sources over \[under\] expenditures and other \[uses\]102,302 39,496 39,496 62,806 97,681 27,647 27,647 70,034 Unreserved fund balance, January 1 Unreserved fund balance/GAAP fund balance $ 199,983$ 67,143$ 67,143$ 132,840 December 31 See independent auditor's report on the financial statements. 84 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) BUSINESS IMPROVEMENT DISTRICT FUND For the Year Ended December 31, 2019 Variance with Final Budget Budgeted Amounts Positive ActualOriginalFinal\[Negative\] Revenues Charges for services83,701$ 90,513$ 90,513$ \[6,812\]$ - 15 15 \[15\] Investment revenue 83,701 90,528 90,528 \[6,827\] Total revenues Expenditures 85,201 90,500 90,500 5,299 Planning and development 85,201 90,500 90,500 5,299 Total expenditures Excess \[deficiency\] of revenues over \[under\] expenditures\[1,500\] 28 28 \[1,528\] 6,161 13,303 13,303 \[7,142\] Unreserved fund balance, January 1 $ 13,331$ 13,331$ \[8,670\] Unreserved fund balance, December 314,661 Reconciliation to GAAP 2,012 Accounts receivable $ 6,673 GAAP Fund Balance, December 31 See independent auditor's report on the financial statements. 85 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) NEIGHBORHOOD PARK FUND For the Year Ended December 31, 2019 Variance with Final Budget Budgeted Amounts Positive ActualOriginalFinal\[Negative\] Revenues Licenses and permits4,500$ 5,500$ 5,500$ \[1,000\]$ -5050\[50\] Investment revenue 4,500 5,550 5,550\[1,050\] Total revenues Expenditures -10,000 10,000 10,000 Capital outlay -10,000 10,000 10,000 Total expenditures Excess \[deficiency\] of revenues over \[under\] expenditures4,500 \[4,450\]\[4,450\]8,950 24,251 32,099 32,099\[7,848\] Unreserved fund balance, January 1 Unreserved fund balance/GAAP fund balance $ 28,751$ 27,649$ 27,649$ 1,102 December 31 See independent auditor's report on the financial statements. 86 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) SPECIAL PARKS AND RECREATION FUND For the Year Ended December 31, 2019 Variance with Final Budget Budgeted Amounts Positive ActualOriginalFinal\[Negative\] Revenues Intergovernmental227,304$ 213,751$ 213,751$ 13,553$ -100100\[100\] Investment revenue 227,304 213,851 213,851 13,453 Total revenues Expenditures 885 259,000 259,000 258,115 Capital outlay 885 259,000 259,000 258,115 Total expenditures Excess \[deficiency\] of revenues over \[under\] expenditures226,419 \[45,149\]\[45,149\]271,568 Unreserved fund balance, January 1122,447 109,993 109,993 12,454 Unreserved fund balance/GAAP fund balance $ 348,866$ 64,844$ 64,844$ 284,022 December 31 See independent auditor's report on the financial statements. 87 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) SPECIAL ALCOHOL FUND For the Year Ended December 31, 2019 Variance with Final Budget Budgeted Amounts Positive ActualOriginalFinal\[Negative\] Revenues $ 227,304$ 213,751$ 250,000$ \[22,696\] Intergovernmental 227,304 213,751 250,000\[22,696\] Total revenues Expenditures 227,304 213,751 250,000 22,696 Public health and sanitation 227,304 213,751 250,000 22,696 Total expenditures Excess \[deficiency\] of revenues over \[under\] expenditures---- 234164234- Unreserved fund balance, January 1 Unreserved fund balance/GAAP fund balance $ 234$ 164$ 234$- December 31 See independent auditor's report on the financial statements. 88 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) SALES TAX ECONOMIC DEVELOPMENT FUND For the Year Ended December 31, 2019 Variance with Final Budget Budgeted Amounts Positive ActualOriginalFinal\[Negative\] Revenues Taxes344,976$ 354,987$ 354,987$ \[10,011\]$ -2,000 2,000\[2,000\] Investment revenue 344,976 356,987 356,987\[12,011\] Total revenues Expenditures 533,898 480,000 555,000 21,102 Capital outlay 533,898 480,000 555,000 21,102 Total expenditures Excess \[deficiency\] of revenues over \[under\] expenditures\[188,922\]\[123,013\]\[198,013\]9,091 897,485 878,081 897,485- Unreserved fund balance, January 1 Unreserved fund balance/GAAP fund balance $ 708,563$ 755,068$ 699,472$ 9,091 December 31 See independent auditor's report on the financial statements. 89 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) ARTS & HUMANITIES FUND For the Year Ended December 31, 2019 Variance with Final Budget Budgeted Amounts Positive ActualOriginalFinal\[Negative\] Revenues Charges for services402,527$ 320,400$ 320,400$ 82,127$ 12,163 99,800 99,800\[87,637\] Miscellaneous 414,690 420,200 420,200\[5,510\] Total revenues Expenditures 1,004,380 1,066,349 1,066,349 61,969 Culture and recreation 1,004,380 1,066,349 1,066,349 61,969 Total expenditures Excess \[deficiency\] of revenues \[589,690\]\[646,149\]\[646,149\] 56,459 over \[under\] expenditures Other financing sources \[uses\] 637,748 665,000 665,000\[27,252\] Transfers in 637,748 665,000 665,000\[27,252\] Total other financing sources \[uses\] Excess \[deficiency\] of revenues and other sources over \[under\] expenditures and other \[uses\]48,058 18,851 18,851 29,207 1,706 63,793 63,793\[62,087\] Unreserved fund balance, January 1 Unreserved fund balance/GAAP fund balance $ 49,764$ 82,644$ 82,644$ \[32,880\] December 31 See independent auditor's report on the financial statements. 90 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) DEBT SERVICE FUND For the Year Ended December 31, 2019 Variance with Final Budget Budgeted Amounts Positive ActualOriginalFinal\[Negative\] Revenues Taxes Real estate taxes2,620,653$ 2,850,000$ 2,850,000$ \[229,347\]$ Delinquent taxes43,289 55,000 55,000 \[11,711\] Motor vehicle taxes305,502 287,142287,14218,360 Special assessments1,540,2851,710,0001,710,000\[169,715\] Investment revenue-2,5002,500 \[2,500\] 94,519-- 94,519 Miscellaneous 4,604,2484,904,6424,904,642 \[300,394\] Total revenues Expenditures Debt Service Principal retirement5,413,0155,729,3655,729,365316,350 1,536,8341,589,8551,589,855 53,021 Interest and other charges 6,949,8497,319,2207,319,220369,371 Total expenditures Excess \[deficiency\] of revenues \[2,345,601\] \[2,414,578\] \[2,414,578\] 68,977 over \[under\] expenditures Other financing sources \[uses\] 1,632,9582,000,0002,000,000 \[367,042\] Transfers in 1,632,9582,000,0002,000,000 \[367,042\] Total other financing sources \[uses\] Excess \[deficiency\] of revenues and other sources over \[under\] expenditures and other \[uses\]\[712,643\] \[414,578\] \[414,578\] \[298,065\] 1,801,968942,248942,248859,720 Unreserved fund balance, January 1 $ 527,670$ 527,670$ 561,655 Unreserved fund balance, December 311,089,325 Reconciliation to GAAP Taxes receivable3,105,131 \[3,052,038\] Deferred revenue $ 1,142,418 GAAP Fund Balance, December 31 See independent auditor's report on the financial statements. CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL (NON - GAAP BASIS) SOLID WASTE DISPOSAL FUND For the Year Ended December 31, 2019 Variance with Final Budget Budgeted Amounts Positive ActualOriginalFinal\[Negative\] Revenues Charges for services3,073,363$ 2,369,000$ 2,369,000$ 704,363$ Investment revenue-4,0004,000 \[4,000\] 416,369 32,000 32,000 384,369 Miscellaneous 3,489,732 2,405,000 2,405,000 1,084,732 Total revenues Expenditures 2,405,461 2,471,998 2,471,998 66,537 Public works 2,405,461 2,471,998 2,471,998 66,537 Total expenditures Excess \[deficiency\] of revenues 1,084,271 \[66,998\]\[66,998\] 1,151,269 over \[under\] expenditures Other financing sources \[uses\] \[640,000\] \[125,000\]\[125,000\]\[515,000\] Transfers \[out\] \[640,000\] \[125,000\]\[125,000\]\[515,000\] Total other financing sources \[uses\] Excess \[deficiency\] of revenues and other sources over \[under\] expenditures and other \[uses\]444,271 \[191,998\] \[191,998\]636,269 4,004,416 3,858,116 3,858,116 146,300 Unreserved fund balance, January 1 $ 4,448,687$ 3,666,118$ 3,666,118$ 782,569 Unreserved fund balance, December 31 See independent auditor's report on the financial statements. 92 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL (NON - GAAP BASIS) WATER AND SEWER FUND For the Year Ended December 31, 2019 Variance with Final Budget Budgeted Amounts Positive ActualOriginalFinal\[Negative\] Revenues Charges for services20,135,245$ 20,950,319$ 20,950,319$ \[815,074\]$ Investment revenue-25,000 25,000 \[25,000\] 4,880 10,000 10,000\[5,120\] Miscellaneous 20,140,125 20,985,319 20,985,319\[845,194\] Total revenues Expenditures 10,990,480 15,007,493 15,007,493 4,017,013 Public works 10,990,480 15,007,493 15,007,493 4,017,013 Total expenditures Excess \[deficiency\] of revenues 9,149,645 5,977,826 5,977,826 3,171,819 over \[under\] expenditures Other financing sources \[uses\] Transfers in-122,200122,200 \[122,200\] \[7,790,425\]\[6,800,000\]\[6,800,000\]\[990,425\] Transfers \[out\] \[7,790,425\]\[6,677,800\]\[6,677,800\]\[1,112,625\] Total other financing sources \[uses\] Excess \[deficiency\] of revenues and other sources over \[under\] expenditures and other \[uses\]1,359,220 \[699,974\]\[699,974\]2,059,194 12,283,191 10,134,124 10,134,124 2,149,067 Unreserved fund balances, January 1 $ 13,642,411$ 9,434,150$ 9,434,150$ 4,208,261 Unreserved fund balances, December 31 See independent auditor's report on the financial statements. 93 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL (NON - GAAP BASIS) SANITATION FUND For the Year Ended December 31, 2019 Variance with Final Budget Budgeted Amounts Positive ActualOriginalFinal\[Negative\] Revenues Charges for services3,228,431$ 3,450,000$ 3,450,000$ \[221,569\]$ -3,500 3,500\[3,500\] Investment revenue 3,228,431 3,453,500 3,453,500\[225,069\] Total revenues Expenditures 2,479,468 3,136,223 3,136,223 656,755 Public works 2,479,468 3,136,223 3,136,223 656,755 Total expenditures Excess \[deficiency\] of revenues 748,963 317,277 317,277 431,686 over \[under\] expenditures Other financing sources \[uses\] \[491,500\]\[411,500\]\[411,500\]\[80,000\] Transfers \[out\] \[491,500\]\[411,500\]\[411,500\]\[80,000\] Total other financing sources \[uses\] Excess \[deficiency\] of revenues and other sources over \[under\] expenditures and other \[uses\]257,463 \[94,223\]\[94,223\]351,686 1,468,134 1,695,957 1,695,957\[227,823\] Unreserved fund balance, January 1 $ 1,725,597$ 1,601,734$ 1,601,734$ 123,863 Unreserved fund balances, December 31 See independent auditor's report on the financial statements. 94 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL (NON - GAAP BASIS) GOLF COURSE FUND For the Year Ended December 31, 2019 Variance with Final Budget Budgeted Amounts Positive ActualOriginalFinal\[Negative\] Revenues Charges for services809,636$ 845,997$ 845,997$ \[36,361\]$ Investment revenue-350350\[350\] 97,562120,000 120,000\[22,438\] Miscellaneous 907,198 966,347 966,347\[59,149\] Total revenues Expenditures 935,700 955,806 955,806 20,106 Recreation 935,700 955,806 955,806 20,106 Total expenditures Excess \[deficiency\] of revenues \[28,502\] 10,541 10,541\[39,043\] over \[under\] expenditures Other financing sources \[uses\] ---- Transfers \[out\] ---- Total other financing sources \[uses\] Excess \[deficiency\] of revenues and other sources over \[under\] expenditures and other \[uses\]\[28,502\]10,541 10,541 \[39,043\] 50,211 128,476 128,476\[78,265\] Unreserved fund balance, January 1 $ 21,709$ 139,017$ 139,017$ \[117,308\] Unreserved fund balances, December 31 See independent auditor's report on the financial statements. 95 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) WORKERS' COMPENSATION RESERVE FUND For the Year Ended December 31, 2019 Variance with Final Budget Budgeted Amounts Positive ActualOriginalFinal\[Negative\] Revenues Charges for services312,852$ 312,933$ 312,933$ \[81\]$ Investment revenue-2,5002,500 \[2,500\] 1093,000 3,000\[2,891\] Miscellaneous 312,961 318,433 318,433\[5,472\] Total revenues Expenditures 336,880 430,418 430,418 93,538 General government 336,880 430,418 430,418 93,538 Total expenditures Excess \[deficiency\] of revenues over \[under\] expenditures\[23,919\]\[111,985\]\[111,985\]88,066 1,086,849 761,583 761,583 325,266 Unreserved fund balance, January 1 $ 1,062,930$ 649,598$ 649,598$ 413,332 Unreserved fund balances, December 31 See independent auditor's report on the financial statements. 96 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) HEALTH INSURANCE FUND For the Year Ended December 31, 2019 Variance with Final Budget Budgeted Amounts Positive ActualOriginalFinal\[Negative\] Revenues Charges for services6,055,450$ 7,523,584$ 6,200,000$ \[144,550\]$ Investment revenue-5,000- - 49,52625,000-49,526 Miscellaneous 6,104,976 7,553,584 6,200,000\[95,024\] Total revenues Expenditures 7,028,930 6,747,554 7,050,550 21,620 General government 7,028,930 6,747,554 7,050,550 21,620 Total expenditures Excess \[deficiency\] of revenues over \[under\] expenditures\[923,954\]806,030 \[850,550\]\[73,404\] 3,112,407 761,583 3,112,407- Unreserved fund balance, January 1 $ 2,188,453$ 1,567,613$ 2,261,857$ \[73,404\] Unreserved fund balances, December 31 See independent auditor's report on the financial statements. 97 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) CENTRAL GARAGE FUND For the Year Ended December 31, 2019 Variance with Final Budget Budgeted Amounts Positive ActualOriginalFinal\[Negative\] Revenues Charges for services1,430,533$ -$-$1,430,533$ Investment revenue-4040\[40\] 3,9977,500 7,500\[3,503\] Miscellaneous 1,434,530 7,540 7,540 1,426,990 Total revenues Expenditures 1,474,000 1,564,012 1,564,012 90,012 General government 1,474,000 1,564,012 1,564,012 90,012 Total expenditures Excess \[deficiency\] of revenues \[39,470\]\[1,556,472\]\[1,556,472\] 1,517,002 over \[under\] expenditures Other financing sources \[uses\] 140,000 1,633,644 1,633,644\[1,493,644\] Transfers in 140,000 1,633,644 1,633,644\[1,493,644\] Total other financing sources \[uses\] Excess \[deficiency\] of revenues and other sources over \[under\] expenditures and other \[uses\]100,530 77,172 77,172 23,358 54,128 1,130,194 1,130,194\[1,076,066\] Unreserved fund balance, January 1 $ 154,658$ 1,207,366$ 1,207,366$ \[1,052,708\] Unreserved fund balance, December 31 See independent auditor's report on the financial statements. 98 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. 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 for costs associated with the City's centralized vehicle repair shop. 99 CITY OF SALINA, KANSAS COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS December 31, 2019 Total Workers'Internal CompensationHealthCentralService ReserveInsuranceGarageFunds ASSETS Current assets: Cash and investments1,063,855$ 2,188,454$200,144$3,452,453$ --127,892 127,892 Inventory and prepaid supplies 1,063,8552,188,454 328,0363,580,345 Total current assets Capital assets: Capital assets--168,234168,234 - -153,601 153,601 Less: accumulated depreciation --14,633 14,633 Total capital assets 1,063,8552,188,454 342,6693,594,978 Total assets Deferred outflows of resources: KPERS OPEB deferred outflows of resources--2,8322,832 - -22,769 22,769 Pension deferred outflows of resources --25,601 25,601 Total deferred outflows of resources $ 1,063,855$2,188,454$368,270$3,620,579 Total assets and deferred outflows of resources Liabilities: Current liabilities (payable from current assets): Accounts payable925$ -$45,485$ 46,410$ Current portion of compensated absences payable--22,91722,917 159,754 489,418-649,172 Current portion of accrued claims payable 160,679 489,41868,402 718,499 Total current liabilities (payable from current assets) Noncurrent liabilities: Compensated absences payable--8,5298,529 Accrued claims payable151,818 --151,818 Net KPERS OPEB obligation--10,12810,128 --156,268 156,268 Net pension liability 151,818-174,925 326,743 Total noncurrent liabilities 312,497 489,418 243,3271,045,242 Total liabilities Deferred inflows of resources KPERS OPEB deferred inflows of resources--1,9421,942 --7,667 7,667 Pension deferred inflows of resources --9,609 9,609 Total deferred inflows of resources $ 312,497$ 489,418$252,936$1,054,851 Total liabilities and deferred inflows of resources Net Position Invested in capital assets, net of related debt-$-$14,633$ 14,633$ 751,3581,699,036 100,7012,551,095 Unrestricted $ 751,358$1,699,036$115,334$2,565,728 Total net position See independent auditor's report on the financial statements. 100 CITY OF SALINA, KANSAS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION INTERNAL SERVICE FUND For the Year Ended December 31, 2019 Total Workers'Internal CompensationHealthCentralService ReserveInsuranceGarageFunds Operating revenues Charges for services312,852$ 6,055,450$ 1,430,533$ 7,798,835$ 109 49,526 10,668 60,303 Miscellaneous 312,961 6,104,976 1,441,201 7,859,138 Total operating revenues Operating expenses General government409,674 7,137,367 1,435,2908,982,331 -- 7,699 7,699 Depreciation 409,674 7,137,367 1,442,989 8,990,030 Total operating expenses \[96,713\]\[1,032,391\] \[1,788\] \[1,130,892\] Operating income \[loss\] Nonoperating revenues \[expenses\] - - - - Investment revenue - - - - Total other operating revenues \[expenses\] \[96,713\]\[1,032,391\] \[1,788\] \[1,130,892\] Income \[loss\] before transfers Transfers from \[to\] other funds - - 140,000 140,000 Transfers in -- 140,000 140,000 Total transfers Change in net position \[96,713\] \[1,032,391\] 138,212 \[990,892\] 848,071 2,731,427 \[22,878\] 3,556,620 Net position, January 1 $ 751,358$ 1,699,036$ 115,334$ 2,565,728 Net position, December 31 See independent auditor's report on the financial statements. 101 CITY OF SALINA, KANSAS COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended December 31, 2019 Total Workers'Internal CompensationHealthCentralService ReserveInsuranceGarageFunds Cash flows from operating activities Cash received from customers and users385,646$ 6,163,888$1,430,533$7,980,067$ Cash paid to suppliers of goods or services\[409,516\] \[7,137,367\] \[1,187,563\] \[8,734,446\] Cash paid to employees --\[288,556\] \[288,556\] 10949,52610,66860,303 Other operating receipts \[23,761\] \[923,953\] \[34,918\] \[982,632\] Net cash provided by \[used in\] operating activities Cash flows from investing activities - --- Interest received Cash flows from noncapital financing activities - -140,000140,000 Transfers in --140,000140,000 Net cash provided by \[used in\] noncapital financing activities Net increase \[decrease\] in cash and cash equivalents\[23,761\] \[923,953\] 105,082\[842,632\] 1,087,6163,112,40795,0624,295,085 Cash and cash equivalents, January 1 $ 1,063,855$2,188,454$ 200,144$3,452,453 Cash and cash equivalents, December 31 See independent auditor's report on the financial statements. CITY OF SALINA, KANSAS COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS (Continued) For the Year Ended December 31, 2019 Total Workers'Internal CompensationHealthCentralService ReserveInsuranceGarageFunds Reconciliation of operating \[loss\] income to net cash provided by \[used in\] operating activities Operating income \[loss\]\[96,713\]$ \[1,032,391\]$ \[1,788\]$ \[1,130,892\]$ Adjustments to reconcile operating income \[loss\] to net cash provided by \[used in\] operating activities Depreciation expense--7,699 7,699 \[Increase\] decrease in inventory--\[16,406\] \[16,406\] \[Increase\] decrease in deferred outflows--1,085 1,085 Increase \[decrease\] in accounts payable158-\[2,120\]\[1,962\] Increase \[decrease\] in accrued compensated absences--\[27,942\]\[27,942\] Increase \[decrease\] in net pension liability--1,719 1,719 Increase \[decrease\] in KPERS OPEB liability--4,659 4,659 Increase \[decrease\] in claims payable72,794 108,438 -181,232 -- \[1,824\]\[1,824\] Increase \[decrease\] in deferred inflows $ \[23,761\]$ \[923,953\]$ \[34,918\]$ \[982,632\] Net cash provided by \[used in\] operating activities See independent auditor's report on the financial statements. 103 CITY OF SALINA, KANSAS AGENCY FUNDS 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. Special assessment escrow agency fund -To account for property owners' prepayment on outstanding special assessments. Fire insurance proceeds agency fund -To account for insurance proceeds received for severely damaged buildings theinsurance proceeds, plus interest, are returned to the property owners when the buildings are repaired or demolished. 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 andrestitution remitted to the court and awaiting court orders for distribution. Policeinvestigation account agency fund -To account for monies held by the police department for use in investigations. Citizenship agency fund -To account for donations received and used for the citizenship fund. Section 125 plan agency fund -To account for monies held for the Section 125 plan. D!6 .(C(>&, .+>.(#*@>( .@)C d!+ &AA+@)* .+> >(?()@($ &)C (\[%()C#*@>($ >(,&*(C *+ *"( $&,( +. &$$(*$ &A_@#>(C C@>#)' drug enforcement activities as they related to federal cases. Expenses are limited to equipment and training for the Drug Task Force. D!6 ,+A&, .@)C d!+ &AA+@)* .+> >(?()@($ &)C (\[%()C#*@>($ >(,&*(C *+ *"( $&,( +. &$$(*$ &A_@#>(C C@>#)' C>@' enforcement activities as they relate to local cases. Expenses are limited to equipment and training for the Drug Task Force. D!6 >($(>?( .@)Cd!+ &AA+@)* .+> >(?()@($ &)C (\[%()C#*@>($ >(,&*(C *+ 7*&*( +. <&)$&$ D>@' !&\[ D#$*>#/@*#+)$1 Expenses are limited to equipment and training for the Drug Task Force. Beechcraft remediation settlement fund -To account for revenues and expenditures relatedto the bankruptcy of Beechcraft and the former Schilling Airforce Base remediation case. J&#, /+)C ($A>+W .@)C d!+ &AA+@)* .+> .@)C$ /(#)' "(,C #) ($A>+W .+> /+)C$ #$$@(C /- Q@)#A#%&, 2+@>*1 104 CITY OF SALINA, KANSAS COMBINING BALANCE SHEET AGENCY FUNDS December 31, 2019 SpecialFireCourtPoliceSectionBeechcraftBail AssessmentInsurancePayrollBond andInvestigation125DTFDTFRemediationBond EscrowProceedsClearingRestitutionAccountCitizenshipPlanLocalReserveSettlementEscrowTotals ASSETS: $ 116,682$ \[1,012\]$ \[356,434\]$ 22,527$ 3,383$ 28,827$197,372$30,068$46,313$ 181,235$1,135$270,096 Cash and investments $ 116,682$ \[1,012\]$ \[356,434\]$ 22,527$ 3,383$ 28,827$197,372$30,068$46,313$ 181,235$1,135$270,096 Total assets LIABILITIES: $ 116,682$ \[1,012\]$ \[356,434\]$ 22,527$ 3,383$ 28,827$197,372$30,068$46,313$ 181,235$1,135$270,096 Accounts payable $ 116,682$ \[1,012\]$ \[356,434\]$ 22,527$ 3,383$ 28,827$197,372$30,068$46,313$ 181,235$1,135$270,096 Total liabilities See independent auditor's report on the financial statements. CITY OF SALINA, KANSAS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS For the Year Ended December 31, 2019 BalanceBalance December 31,December 31, 2018AdditionsDeductions2019 Cash and investments Special Assessment Escrow108,806$ 7,876$ -$116,682$ Fire Insurance Proceeds18,967 35,627 55,606 \[1,012\] Payroll Clearing\[339,790\]-16,644\[356,434\] Court Bond and Restitution18,811 3,716 -22,527 Police Investigation Account3,381 2-3,383 Citizenship Trust30,797 18,116 20,086 28,827 Section 125 Plan Fund215,857 348,820 367,305 197,372 DTF Local41,240 14,89626,068 30,068 DTF Reserve33,475 17,9865,14846,313 Beechcraft Remediation Settlement179,386 1,849 -181,235 1,135-- 1,135 Bail Bond Escrow $ 312,065$ 448,888$ 490,857$ 270,096 Total Assets Accounts Payable Special Assessment Escrow108,806$ 7,876$ -$116,682$ Fire Insurance Proceeds18,967 35,627 55,606 \[1,012\] Payroll Clearing\[339,790\]-16,644\[356,434\] Court Bond and Restitution18,811 3,716 -22,527 Police Investigation Account3,381 2-3,383 Citizenship Trust30,797 18,116 20,086 28,827 Section 125 Plan Fund215,857 348,820 367,305 197,372 DTF Local41,240 14,896 26,068 30,068 DTF Reserve33,475 17,986 5,148 46,313 Beechcraft Remediation Settlement179,386 1,849 -181,235 1,135-- 1,135 Bail Bond Escrow $ 312,065$ 448,888$ 490,857$ 270,096 Total liabilities See independent auditor's report on the financial statements. 106 6% 100%100%100% 2019 $ 68%$ 93% 1% $ 110% 1% -11%$ $ $ 100%138,358100%93,552100%231,910 2018 $ 109%151,527$ $ 69%63,301$ $ 93%214,828$ 8%12,7446%14,044 -7%(13,759)-10%(14,839) 27%26,50329%28,88331% 100%133,453100%90,383100%223,835 2017 2%2,3662%1,670$ 71%62,368 2%1,5122%1,3681%$91%207,213 2%3,8782%3,038 $105%144,846 $ $ $ 6%16,023 -9%(8,232) 27%24,255 100%123,701100%89,083100%212,784 2016 $108%129,921 1%2,012 $$ 71%63,316 2%1,512 $ $92%193,237 2%3,524 $ -5%13,116 18%23,621 -23%(10,505) 100%115,868100%87,560100%203,428 2015 $ 122%124,635 1%1,738 $ $ 80%62,427 2%1,512 $ $ 103%187,062 1%3,250 $ 9%(24,922) 24%15,61015%(9,312) 100%106,703100%85,229100%191,932 Fiscal Year (in 000's) Schedule 1 2014 Last Ten Fiscal Years City of Salina, Kansas Net Position by Component (accrual basis of accounting) $ 90%130,401 1%1,224 $ $ 75%68,107 2%1,512 $ $ 84%198,508 1%2,736 $ 9%11,413 23%19,54514%30,959 100%127,878100%82,778100%210,658 2013 $90%115,589 1%876 $$ 75%61,721 2%1,512 $ $84%177,311 1%2,388 $ 5%11,628 29%17,79414%29,422 100%129,423100%76,450100%205,873 2012 $94%116,585 1%1,210 $$ 69%57,103 2%1,553 $ $85%173,688 1%2,763 $ 5%5,511 35%21,45016%26,961 100%119,522100%73,860100%193,382 2011 $93%112,929 1%1,082 $$ 63%50,857 2%1,553 $ $82%163,786 2%2,635 $ 3%6,333 22%24,52810%30,867 100%117,334100%70,308100%187,599 3,808 14,30618,115 63,937 2010 117,797181,736 Amount%Amount%Amount%Amount%Amount%Amount%Amount%Amount%Amount%Amount% $96%109,289 1%1,712 $$ 75%44,227 2%1,553 $ $89%153,516 1%3,216 $ UnrestrictedRestricted1,553UnrestrictedRestricted2,541Unrestricted Net investment in capital assets113,001Restricted988Net investment in capital assets48,078Total business-type activities net positionNet investment in capital assets161,080Total primary government net position Governmental activities Total governmental activities net positionBusiness-type activitiesPrimary governmentSource: City of Salina Comprehensive Annual Financial Reports, 2010 - 2019 Schedule 2 City of Salina, Kansas Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) (in 000's) Fiscal Year 2010201120122013201420152016201720182019 !"#$%&$& Governmental activities: General government10,845$ 13,614$ 11,278$ 10,978$ 12,175$ 10,743$ 9,188$ 9,780$ 12,013$ 10,866$ Public safety18,592 18,579 19,066 19,649 20,208 21,084 22,232 23,120 23,892 25,358 Public works9,782 9,858 10,957 11,064 11,401 9,049 9,773 10,345 10,458 10,529 Public health and sanitation1,365 1,368 1,383 1,369 347 995 1,095 1,126 1,256 1,156 Culture and recreation8,572 6,693 5,338 4,809 5,156 6,517 6,612 6,880 7,040 6,879 Planning and development 3,4503,716 3,362 3,399 3,236 1,915 2,047 1,835 2,369 2,522 2,256 1,650 1,914 1,953 1,817 1,774 2,971 1,725 2,117 2,169 Interest on long term debt 55,128 55,212 53,298 53,221 54,340 52,077 53,918 54,811 59,145 59,479 Total governmental activities expenses Business-type activities: Solid waste disposal 2,9453,010 2,067 3,532 1,867 1,766 2,335 2,365 2,382 2,871 Water and sewer 13,59714,050 14,897 15,418 14,938 11,712 14,807 15,650 15,190 14,294 Sanitation 2,2612,261 2,441 2,237 2,399 1,909 2,043 2,178 2,419 2,266 817 825 723 768 837 821 792 852 926 888 Golf course 20,138 19,628 20,128 21,955 20,041 16,208 19,977 21,045 20,917 20,319 Total business-type activities expenses Total primary government expenses $ 75,266$ 74,840$ 73,426$ 75,176$ 74,381$ 68,285$ 73,895$ 75,856$ 80,062$ 79,798 '()*(+, -$.$%/$& Governmental activities: Charges for services General government5,143$ 6,106$ 6,328$ 5,548$ 5,662$ 3,151$ 3,134$ 3,470$ 3,569$ 3,401$ Public safety3,969 3,766 4,290 4,656 4,222 4,600 4,891 4,601 4,815 4,357 Public works198 262 306 277 255 193 238 348 285 309 Public health and sanitation37 43 46 34 46 46 44 50 47 46 Culture and recreation2,817 3,140 1,728 1,466 1,533 1,501 1,638 1,541 1,545 1,514 Planning and development144 153 158 161 167 73 140 91 150 104 Operating grants and contibutions3,415 2,907 4,495 4,200 4,015 3,394 4,332 4,541 4,299 4,540 - - - - - - 733 - - - Capital grants and contributions 15,723 16,377 17,351 16,342 15,900 12,958 15,150 14,642 14,710 14,271 Total governmental activities program revenues Business-type activities: Charges for services Solid waste disposal2,853 2,904 3,137 3,138 3,024 2,519 2,795 3,165 3,097 3,082 Water and sewer16,520 17,904 19,099 17,938 18,742 19,059 19,322 19,855 20,202 20,255 Sanitation2,310 2,334 2,462 2,514 2,553 2,529 2,751 2,885 3,006 3,276 Golf course736 636 783 719 811 820 789 798 756 810 -202- - - - - - - - Operating grants and contributions -3,804274-115--- -- Capital grants and contributions 22,419 27,784 25,755 24,309 25,245 24,927 25,657 26,703 27,061 27,423 Total business-type activities program revenues $ 38,142$ 44,161$ 43,106$ 40,651$ 41,145$ 37,885$ 40,807$ 41,345$ 41,771$ 41,694 Total primary government program revenues 0$1 2!"#$%&$3 -$.$%/$ Governmental activities$ (38,835)(39,405)$ (35,947)$ (36,879)$ (38,440)$ (39,119)$ (38,768)$ (40,169)$(39,800)$(45,208)$ 2,281 8,156 5,627 2,354 5,204 8,719 5,680 5,658 6,143 7,103 Business-type activities Total primary government net expense $ (37,124)$ (30,679)$ (30,320)$ (34,525)$ (33,236)$ (30,400)$ (33,088)$(34,511)$(33,657)$(38,105) 4$%$(+5 -$.$%/$& +%6 718$( 98+%*$& :% 0$1 ')&:1:)% Governmental activities: Taxes Property taxes, general purpose7,803$ 7,783$ 8,272$ 8,031$ 8,315$ 8,242$ 8,196$ 9,101$ 8,623$ 9,708$ Property taxes, debt service2,230 2,779 2,439 2,362 2,578 2,766 3,022 2,487 2,457 2,664 Motor vehicle taxes1,145 1,150 1,153 1,200 1,250 1,312 1,370 1,372 1,428 1,403 Sales tax, general purpose11,118 11,767 12,165 12,260 12,689 12,931 12,781 12,906 13,292 13,419 Selective sales tax4,108 4,080 4,210 4,281 4,461 4,558 4,901 8,832 8,917 9,323 Other taxes6,298 6,390 6,486 6,630 7,231 7,363 7,991 6,900 7,241 6,975 Investment revenues81 77 66 67 98 86 148 92 183 670 Miscellaneous565 872 660 9,918 1,160 2,371 5,842 2,003 1,062 1,168 Transfers, net92 199 30 999 787 3,819 3,600 4,309 4,831 4,781 Total governmental activities33,440 35,097 35,481 45,748 38,569 43,448 47,851 48,002 48,034 50,111 Business-type activities: Investment revenues67 84 79 49 51 56 78 129 233 - Miscellaneous341 330 434 279 97 - - 103 153 846 Reimbursements 132180 79 - Transfers, net(92)(199)(30)(950)-(3,781) (3,581) (4,367) (4,831) (4,781) Total business-type activities316 215 483(622)328 (3,593) (3,424) (4,135) (4,445) (3,935) Total primary government33,756$ $ 35,312$ 35,964$ 45,126$ 38,897$ 39,855$ 44,427$ 43,867$ 43,589$ 46,176 98+%*$ :% 0$1 ')&:1:)% Governmental activities(5,965)$ (3,738)$ (466)$ 8,869$ 129$ 4,329$ 9,083$ 7,833$ 8,233 4,902 Business-type activities2,597 8,371 6,110 1,732 5,532 5,126 2,256 1,523 1,698 3,169 Total primary government(3,368)$ $ 4,633$ 5,644$ 10,601$ 5,661$ 9,455$ 11,339$ 9,356$ 9,931$ 8,071 Source: City of Salina Comprehensive Annual Financial Reports, 2010 - 2019 Schedule 3 City of Salina, Kansas Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (in 000's) Fiscal Year 2011 (Note 1) 201020122013201420152016201720182019 General Fund Reserved99$ -$ -$-$-$-$-$-$-$-$ Nonspendable-9011681107111131153152212 Restricted----- -- --- Committed----- -- --- Assigned-293540331 239 199136 214340274 Unreserved/unassigned 3,5183,454 3,172 3,138 3,908 4,530 4,765 6,516 6,251 8,821 Total general fund 3,617$ 3,837$ 3,828$ 3,550$ 4,254$ 4,840$ 5,032$ 6,883$ 6,743$ 9,307 Restatement 156 Restated fund balance$ 3,773 All other governmental funds Reserved6,413$ -$ -$-$-$-$-$-$-$-$ Nonspendable- -- -- -- --- Restricted-3,6113,319 3,446 2,910 2,793 3,142 4,191 4,648 5,224 Committed-127(516)7,4869,886 8,695 14,284 10,072 7,325 8,086 Assigned-4,3234,087 3,146 1,280 619 1,043 6411,227963 Unreserved/unassigned (1,130) - - - - (10,537) (6,823)(28)(852) (7,804) Total all other governmental funds5,283$ $ 8,061$ 6,890$ 14,078$ 14,076$ 1,570$ 11,646$ 14,876$ 12,348$ 6,469 Note 1: Prior year amounts have not been restated for the implementation of GASB Statement 54 in fiscal year 2011. Source: City of Salina Comprehensive Annual Financial Reports, 2010-2019 Schedule 4 City of Salina, Kansas Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (in 000's) Fiscal Year 2010201120122013201420152016201720182019 -$.$%/$& Taxes (see Schedule 5)32,702$ 33,949$ 34,724$ 34,764$ 36,523$ 37,171$ 38,261$ 41,597$ 41,958$ 43,492$ Intergovernmental3,404 2,901 4,487 4,192 4,008 3,385 4,325 4,536 4,297 4,573 Special assessments1,385 1,535 2,315 1,706 1,810 1,679 1,669 1,539 1,546 1,596 Licenses and permits11 6897107634 Charges for services8,934 9,730 8,484 8,536 8,276 6,416 6,953 6,880 7,338 6,804 Investment revenue64 69 47 40 594714279157 670 Reimbursements70 32 36 9,015 123 491 1,406 -- - Donations 83141111238241 90 448 599 537 810 799 1,853 4,315 1,851 Miscellaneous8841545 51,135 57,219 56,599 56,421 58,774 47,01848,82150,638 59,072 51,846 Total revenues !"#$%6:1/($& General government3,549 3,461 3,574 4,269 3,986 5,342 5,422 5,423 5,649 4,582 Public safety18,229 18,118 18,564 19,155 19,559 21,268 21,664 21,629 22,953 23,692 Public works6,634 6,569 7,004 7,220 7,443 5,333 5,778 6,048 6,162 6,136 Public health and sanitation1,332 1,330 1,343 1,344 319 982 1,078 1,097 1,236 1,121 Culture and recreation5,777 5,900 4,449 3,939 4,292 5,659 5,817 6,143 6,255 6,047 Planning and development3,609 3,344 3,256 3,293 3,232 1,910 2,042 1,801 2,185 2,311 Miscellaneous32 - - - - - --- - Capital outlay18,603 9,847 7,327 13,047 11,009 25,527 24,001 18,281 16,344 21,913 Debt service Principal5,959 4,411 8,592 5,038 5,261 6,250 17,902 5,088 14,243 10,324 Interest2,258 2,084 2,103 1,867 1,864 1,833 3,152 1,771 2,192 2,136 107-92------- Deposit to escrow 66,08955,06456,304 59,172 56,965 74,104 86,856 67,281 77,219 78,262 Total expenditures 718$( ;:%+%<:%* &)/(<$& 2/&$&3 Bonds and notes issued7,034 6,565 6,150 5,690 5,365 6,825 34,892 11,490 8,090 11,090 Bond and note premium47 23 60 185 302 369 1,503 9570443 Transfers in5,076 7,994 3,488 4,907 3,001 7,642 7,065 8,339 13,462 9,714 Transfers out(4,984) (5,692) (3,458) (3,907) (2,999) (3,913) (3,555) (4,160) (4,186) (5,073) Issuance costs- - - - - --- - -156 - - - --- - - Other Total other financing 7,1739,046 6,240 6,875 5,669 10,923 39,905 15,764 17,436 16,174 sources (uses) Net change in fund balance(11,898)$$ 2,803$ 574$ 6,775$ 550$ (12,046)$ 10,268$ 5,082$ (3,362)$ (3,314) Debt service as a percentage of non-capital expenditures 21%17%28%18%18%20%50%16%37%28% Source: City of Salina Comprehensive Annual Financial Reports, 2010 - 2019 Schedule 5 City of Salina, Kansas Tax Revenues by Source, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (in 000's) Fiscal Year 2010201120122013201420152016201720182019 Real estate9,756$ 10,288$ 10,466$ 10,145$ 10,657$ 10,729$ 10,972$ 11,377$ 10,804$ 12,182$ Delinquent278 274 245 248 235 279 246 210 276 190 Motor vehicle1,145 1,150 1,153 1,200 1,250 1,312 1,370 1,372 1,428 1,403 General sales11,117 11,767 12,165 12,260 12,689 12,931 12,781 12,906 13,293 13,419 Selective sales4,108 4,080 4,210 4,281 4,461 4,558 4,901 8,832 8,917 9,323 Other taxes6,298 6,390 6,485 6,630 7,231 7,362 7,991 6,900 7,240 6,975 Total taxes32,702$ $ 33,949$ 34,724$ 34,764$ 36,523$ 37,171$ 38,261$ 41,597$ 41,958$ 43,492 Source: City of Salina Comprehensive Annual Financial Reports, 2010 - 2019 Assessed Value to Est. Market Value (Note 2) Market Value Estimated Total $15.48$15.67$15.65$15.71$15.64$15.66$15.51$15.54$15.48$15.45 . able for those properties. However, state hare of that based on tax effort. Total, Taxable Assessed Value $ 2,893,359,541$ 2,869,531,746$ 2,884,188,981$ 2,889,385,914$ 2,917,267,724$ 2,957,531,741$ 3,046,949,034$ 3,097,885,103$ 3,150,409,123$ 3,294,115,685 (Note 1) $ 447,800,878$ 449,760,638$ 451,404,026$ 453,989,887$ 456,320,278$ 463,030,260$ 472,683,104$ 481,461,005$ 487,787,922$ 509,082,680 Motor Vehicle 50,330,252 47,406,062 47,553,744 48,882,411 48,865,900 50,350,566 51,833,505 50,970,796 53,336,677 54,687,311 112 Schedule 6 Last Ten Fiscal Years City of Salina, Kansas Motor VehiclesTax Rate $ 25.855$ 26.022$ 26.272$ 26.927$ 27.080$ 27.311$ 27.603$ 27.311$ 26.129$ 28.394 Total, Excluding Assessed Value Assessed and Estimated Actual Value of Taxable Property $ 397,470,626$ 402,354,576$ 403,850,282$ 405,107,476$ 407,454,378$ 412,679,694$ 420,849,599$ 430,490,209$ 434,451,245$ 454,395,369 $ 13,730,609$ 14,685,585$ 15,779,466$ 16,948,264$ 17,670,147$ 18,984,453$ 19,323,055$ 19,671,685$ 20,485,144$ 22,113,195 369,416,422370,390,092376,131,346381,087,426389,872,825399,918,216403,835,383421,108,311 $ 24,760,806$ 19,918,188$ 18,654,394$ 17,769,120$ 13,652,885$ 12,607,815$ 11,653,719$ 10,900,308$ 10,130,718$ 11,173,863 YearReal EstatePersonal PropertyState Assessed 2010358,979,2112011367,750,80320122013201420152016201720182019 Fiscal (Budget) Note 1: The tax rate for motor vehicles is set based on the average countywide tax rate. The City of Salina then receives a sNote 2: The estimated market value excludes the value of the State assessed properties. Market value information is not availassessed property is generally assessed at 33% of market value, except for railroads, which are assessed at 15% of market valueNote 3: The Direct rate is expressed in dollars per thousand dollars of assessed value.Source: Saline County Clerk Total USD Total MillageOther Debt Millage Service Millage 13.15558.49612.401128.055 13.09558.91312.131128.498 11.69358.82011.989129.657 11.51658.64912.135131.797 11.51758.11612.941135.879 11.51755.60513.305134.037 11.65556.12013.293134.999 11.67455.74313.299134.153 11.37156.50113.189133.140 10.74657.52213.988138.341 Operating Total County Millage 45.341 45.818 47.127 47.133 46.599 44.088 44.465 44.069 45.130 46.776 yUSD 305 (2)Other (1) Schedule 7 Debt Millage Service Last Ten Fiscal Years City of Salina, Kansas !"#$% &%" '()*** +, #--%--%. /#01%2 Millage 31.303 31.432 32.576 34.823 37.895 38.047 38.275 37.508 37.321 38.437 Operating Direct and Overlapping Property Tax Rates City Total Millage Debt Millage Service 25.85531.303 26.02231.432 26.27232.576 26.19034.823 26.92737.895 27.08038.047 27.31138.275 27.60337.508 26.12937.321 28.39438.437 City of SalinaSaline Count Millage Operating Year201020.0825.773201119.2366.786201220.3265.946201320.2425.948201420.5396.388201520.6926.388201619.9507.361201721.6945.909201820.3395.790201922.2856.109 Fiscal (Budget) Source: Saline County Treasurer(1)The "Other" column includes the State of Kansas, the Salina Airport Authority, the Salina Public Library and Kansas StateExtension District #3.(2)A small portion of Salina is covered by USD 306, USD 307, or USD 400. Total Tax Rates are different in the areas covered bythese jurisdictions. ValuationRank % of Total Valuation Assessed 0.63%6 0.57%7 0.54%8 0.54%9 0.50%10$ $ $ 3.01%1 1.51%2 0.97%3 0.95%4 0.83%5 Rank - % of Total 14.70%10.05% 335,262,182 2010 (2009 Assessed Value)2019 (2018 Assessed Value) $ 1.55%413,682,027 3.03%16,855,966$ 45,656,091$ 454,395,369 Schedule 8 City of Salina, Kansas Principal Property Taxpayers Current Year and Ten Years Ago Regional Shopping Center-2,868,321 TaxpayerType of BusinessAssessed Valuation Gateway PropertiesShopping Mall (Midstate)3,556,0091.06%6 IndividualResidential-2,440,724Sams Real Estate Business Trust/WalmartDiscount Retail Stores-2,286,508Wal-mart Real Estate Business TrustDiscount Retail Stores3,913,8551.17%5-Great Plains ManufacturingManufacturing2,526,9840.75%10-Southwestern BellTelephone Utility3,455,4191.03%8- Evergy (Westar Energy (Western Resources)Utility5,191,056SFC Global Supply Chain, Inc. (Schwan's)Pizza Manufacturing10,144,446Kansas Gas ServiceUtility3,449,8761.03%74,415,353RAF Salina LLCRetail Shopping Mall8,704,2502.60%24,296,499S&B MotelsMotel-3,774,927Central Mall Realty Holding LLC Union PacificRailroad-2,570,668Menard Inc.Home Improvement-2,465,098Sunflower BankBanking Institution2,749,2000.82%9-Salina Regional Health CenterHospital and Medical Offices5,584,4611.67%3-Combined Valuation of the Ten Largest Taxpayers49,275,556City ValuationPercent of Total City Assessed ValuationSource: Saline County Clerk's Office or recent OS Schedule 9 City of Salina, Kansas Property Tax Levies and Distributions Last Ten Fiscal Years Current Year Tax DistributionsTotal Tax Distributions Fiscal Taxes Levied (Budget) for the fiscal Delinquent Percentage YearyearAmountPercentageCollections (1)Amountof levy 201010,276,905$ 9,704,937$ 94.4%278,656$ 9,983,593$ 97.1% 201110,415,491$ 10,287,770$ 98.8%273,843$ 10,561,613$101.4% 201210,570,420$ 10,411,299$ 98.5%245,086$ 10,656,385$100.8% 201310,576,448$ 10,145,404$ 95.9%248,184$ 10,393,588$98.3% 201410,908,147$ 10,776,688$ 98.8%398,820$ 11,175,508$102.5% 201511,316,065$ 10,460,246$ 92.4%617,496$ 11,077,742$97.9% 201611,740,993$ 10,972,299$ 93.5%245,577$ 11,217,876$95.5% 201711,254,398$ 11,239,051$ 99.9%209,950$ 11,449,001$101.7% 201811,260,358$ 10,803,591$ 95.9%276,340$ 11,079,931$98.4% 201912,201,319$ 12,028,761$ 98.6%376,578$ 12,405,339$101.7% (1)Delinquent collections are reported in the aggregate for all previous years. Data is not currently available for "collected in subsequent years" Source: Saline County Treasurer's Office 6. Fiscal Year Schedule 10 Last Ten Fiscal Years City of Salina, Kansas Direct Sales Rate by Taxing Entity 1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00% 61.58%63.34%61.72%60.86%60.23%60.28%60.28%60.28%59.85%60.33% 2010201120122013201420152016201720182019 In May, 2016, the voters approved an increase in the Special Purpose Tax rate from .40% to .75%, to be effective October 1, 201 General0.50%0.50%0.50%0.50%0.50%0.50%0.50%0.50%0.50%0.50%Special purpose0.40%0.40%0.40%0.40%0.40%0.40%0.40%0.75%0.75%0.75%Portion of County-wide tax allocated to City (July Percentage) !"#$ %"&'(# )*+ ,*#'!-./#$01"2' )*+ ,*#'In addition to the direct tax, the City receives a portion of the Countywide sales tax, based on a formula distribution. The formula is based on property tax effort and population, and is adjusted in January and July of each year. Source: Kansas Department of Revenue 864,810 352,051 196,229 41,911 62,127 31,839 6,974 21,663 29,892 2,780 3,835 2,676 1,542 1,180 2,219 124 1,621,853 97 157 79 - - 7 1 9 35 - - 7 1 4 3 3 1 20182019 963,38718,155 340,9601,607 211,84344 35,932 71,559 30,810 - 6,966 22,345 31,856 4,458 - 4,471 2,331 2,190 2,829 2,107 56 18,130 1,614 44 98 157 81 - 7 1 9 36 - 7 1 4 3 3 1 988,572 345,250 193,503 41,552 58,378 36,039 - 9,652 25,624 35,132 4,749 - 4,772 3,347 2,917 1,790 1,962 104 1,753,34320,1961,734,09820,210 18,124 1,606 44 99 163 83 - 8 1 9 36 - 7 1 4 3 3 1 2016 950,697 345,232 191,236 45,136 57,039 41,176 - 9,580 23,384 33,728 5,224 - 4,573 3,921 3,129 1,727 1,930 54 1,717,76620,192 18,125 1,603 44 99 163 85 - 9 1 9 36 - 7 1 4 3 3 1 350,767 202,407 41,928 61,400 45,545 - 17,338 21,915 31,858 4,986 - 4,807 3,167 3,900 - 2,388 53 1,600 44 97 164 85 - 12 1 9 37 - 8 1 5 - 3 1 353,675 193,233 45,346 60,865 45,328 - 19,264 22,993 32,184 4,973 - 5,095 3,561 6,850 1,474 3,588 48 Schedule 11 e the consumption rate Last Ten Fiscal Yearsumption. City of Salina, Kansas Water Sales by Class of Customer 18,0421,003,10018,086987,540 1,599 42 97 166 84 - 12 1 10 37 - 8 1 6 2 3 1 BilledSoldBilledSoldBilledSoldBilledSoldBilledSoldBilledSold Billed Sold 348,968 182,529 46,484 67,155 44,187 20,439 18,665 21,530 26,482 4,810 - 6,822 3,495 5,972 1,922 4,417 107 1,579 40 99 168 84 1 12 1 9 37 - 8 2 6 3 3 1 2012 38,547 174,595 54,618 70,263 57,027 40,448 19,266 25,930 17,896 5,399 - 6,104 6,118 5,726 2,533 3,543 83 1,565 42 99 169 81 1 12 1 10 38 - 8 2 8 4 3 1 201120142017 372,499 180,277 55,910 72,562 53,679 44,051 22,728 28,621 15,674 5,690 699 3,754 4,827 5,454 1,389 3,260 56 1,574 44 97 168 85 1 13 1 10 38 - 7 2 8 3 3 1$ $4.60$4.74$4.88$5.03$5.20$5.36$5.52$5.74$5.94$ $3.77$3.88$4.04$4.24$4.45$4.48$4.77$4.96$5.13$ $7.54$7.76$8.08$8.48$8.90$9.16$9.54$9.92$10.26$ $6.57$6.77$6.97$7.11$7.22$7.36$7.51$7.81$8.08$ $4.48$4.61$4.79$4.94$5.01$5.19$5 .29$5.51$5.70 201020132015 19,8871,970,20219,9542,065,75919,9371,754,02720,0181,793,77120,1111,801,57720,1531,779,99920,193 # AcctsWater# AcctsWater# AcctsWater# AcctsWater# AcctsWater# AcctsWater# AcctsWater# AcctsWater# AcctsWater# AcctsWater 350,633 183,166 42,714 71,121 46,386 44,457 32,604 23,854 18,503 5,569 - 5,266 5,494 5,851 2,424 4,083 213 Rate ClassBilledSoldBilledSoldBilledSold 0 - 2000 gal.2.552001 - 10,000 galOver 10,000 gal.Excess use charge5.10Monthly base charge6.42Unit cost (per 000 gal.):3.08 Monthly meter charge (5/8")4.51Commodity charge (per 000 gal.): Residential17,8381,127,86417,8991,194,62917,8931,225,93117,966989,788 Commercial1,568Industrial44Government85Apartment172Schools85Industrial special1Consumed in production17Rural water1Hospitals12Religious/non profit39Other taxable deductions-Engineering studies8Providing taxable service2Sale of component parts8Fire hydrant3Industrial consumed in production3Sales of farm equipment1 Water Rate Schedule:Wastewater Rate Schedule:Water sold is expressed in thousands of gallons.Number of Accounts billed is the annual number of billings for each class divided by 12.Monthly meter charge increases with the size of the meter.Residential Wastewater is calculated based on Winter Quarter water consumption. Other accounts are based on monthly water cons2008 Water Consumption Rate Structure changed from a decreasing tier structure to one rate and Excess Use Charge which is doublSource: City of Salina Water Customer Accounting Office. $ $ $ $ $ $ $ $ $ $ IncomePer Capita of Personal Percentage Government Total Primary $ 3.8%1,425.20$ 4.3%1,723.80$ 3.8%1,583.07$ 3.7%1,613.05$ 4.1%1,788.25$ 4.1%1,789.42$ 5.0%2,200.39$ 4.9%2,194.43$ 4.9%2,342.64$ 6.0%2,979.81 Notes Temporary $ 65,815,528$ 82,237,502$ 76,058,729$ 77,178,128$ 85,598,079$ 85,557,530$ 104,157,548$ 103,124,995$ 110,089,848$ 139,204,852 $ -$ -$ -$ -$ -$ -$ -$ -$ -$ - Water BondsLoans Payable Revenue $ -$-$-$-$6,208,102$5,753,620$7,432,024$8,862,810$10,632,351$46,354,852 Schedule 12 Bonds General City of Salina, KansasLast Ten Fiscal Years Obligation $ 1,580,000$ 16,193,925$ 15,850,228$ 15,226,532$ 14,592,836$ 13,949,139$ 13,285,443$ 12,606,747$ 11,898,051$ 10,330,000 Ratio of Outstanding Debt by Type $ 8,614,576$ 7,417,907$ 9,613,926$ 8,519,799$ 9,587,351$ 8,539,773$ 7,640,381$ 6,520,433$ 5,282,578$ 4,102,298 $2,500,000$3,400,000$1,485,000$3,800,000$ 5,000,000$ 5,995,000$ 11,505,000$ 6,811,742$ 18,123,505$ 11,170,000 $-$-$-$-$176,235$479,366$ 321,174$ 157,868$ -$ - Governmental ActivitiesBusiness-Type Activities BondsLoans PayableCapital LeaseTemporary Notes General Obligation $-$-$-$-$-$-$12,157,127$12,171,090$12,185,053$12,640,000 201053,120,952201155,225,670201249,109,575201349,631,797201450,033,555201550,840,632201651,816,399201755,994,305201851,968,310201954,607,702 Fiscal Year Source: City of Salina Comprehensive Annual Financial Reports, 2010 - 2019 $$$$$$$$$$ Value of PropertyPer Capita Percentage of Actual Taxable Net General $14.2%1,378.60$14.4%1,354.26$13.2%1,241.05$13.5%1,280.02$14.1%1,345.17$14.1%1,361.75$14.8%1,479.51$14.1%1,446.45$15.1%1,564.52$13.4%1,456.22 Bonded Debt Less Debt $ 63,663,655$ 64,607,551$ 59,626,089$ 61,243,833$ 64,389,277$ 65,109,432$ 70,034,040$ 67,974,485$ 73,523,035$ 68,028,642 Service Fund Schedule 13 $571,873$1,236,026$582,412$707,763$407,864$745,339$1,248,914$1,509,863$1,851,358$1,851,358 Last Ten Fiscal Years City of Salina, Kansas NotesTotal Temporary $ 64,235,528$ 65,843,577$ 60,208,501$ 61,951,596$ 64,797,141$ 65,854,771$71,282,954$ 69,484,348$75,374,393$69,880,000 Ratio of Net General Bonded Debt Outstanding General Bonded Debt Outstanding $ 2,500,000$ 3,400,000$ 1,485,000$ 3,800,000$ 5,000,000$ 5,995,000$ 11,505,000$ 6,811,742$ 18,123,505$ 11,170,000 BondsCapital Lease General Obligation $-$-$-$-$176,235$479,366$321,174$157,868$-$- 201061,735,528201162,443,577201258,723,501201358,151,596201459,620,906201559,380,405201659,456,780201762,514,738201857,250,888201958,710,000 Fiscal Year Source: City of Salina Comprehensive Annual Financial Reports, 2010 - 2019 Schedule 14 City of Salina, Kansas Direct and Overlapping Governmental Activities Debt As of December 31, 2019 Net General Amount Obligation Percentage Applicable to Bonded Debt Applicable to the City of OutstandingCity of SalinaSalina Jurisdiction Direct: $ 73,523,035$ 73,523,035 City of Salina100.00% Overlapping: Salina Airport Authority20,175,000 100.00%20,175,000 Saline County220,693 73.98%163,268 109,280,000 101,854,179 USD 305 93.20% 129,675,693 122,192,447 Total Overlapping Debt Total Direct and Overlapping Debt203,198,728$ $ 195,715,482 Per Capita Direct and Overlapping debt4,093.35$ Percentage of debt applicable to the City of Salina is based on the proportion that the assessed valuation of the City of Salina bears to the assessed valuation of the overlapping entity. Source: Saline County Clerk 2019 85,059,351 $$ 2018 68,240,45778,095,920 $67,665,453$ 2017 61,296,18480,704,353 146,336,377152,724,804 $ 2016 62,072,48579,732,446 142,000,537 $ 56,090,29382,818,785 2015 141,804,931 $ Fiscal Year 54,625,69182,270,392 2014 138,909,078 $ 2013 52,724,03483,472,932 $ 136,896,083 $ Schedule 15 Legal Debt Margin Last Ten Fiscal Years City of Salina, Kansas 2012 49,309,44586,111,763 $ 136,196,966 $ 2011 57,747,03277,181,159 $ 135,421,208 $ 43%43%36%39%40%40%44%43%47%44% 2010 $ $ $ $ $ 134,928,191 $ Legal Debt Margin Calculation for 2019 Total Bonded Debt118,785,263Less GO Debt Attributable to Exempt Purposes(4,116,514)Less Revenue Bonds(11,122,175)Less Capital Leases-Less Loans Payable(34,738,703)Less Fund Balance designated for Debt Service(1,142,418)Debt Limit134,340,263Total net debt applicable to limit58,411,185Legal debt margin75,929,078 Assessed Valuation509,082,680Debt Limit (30% of Assessed Value)152,724,804Debt applicable to limit:Total Debt Applicable to Limitation67,665,453Legal debt margin85,059,351Total net debt applicable to the limit as a percentage of debt limit Schedule 16 City of Salina, Kansas Pledged Revenue Coverage Last Ten Fiscal Years Water/Sewer Revenue Bonds Debt Utility ServiceLess OperatingNet AvailableService Debt Service ChargesExpensesRevenuePrincipalInterestCoverage Fiscal Year 201016,565,880$11,803,594$ 4,762,286$ 740,000$ 91,450$ 5.73 201117,976,508$11,905,114$ 6,071,394$ 1,580,000$496,760$2.92 201219,163,426$12,222,431$ 6,940,995$ 340,000$ 596,992$7.41 201317,974,089$13,373,088$ 4,601,001$ 620,000$ 590,191$3.80 201418,964,164$12,112,288$ 6,851,876$ 630,000$ 577,791$5.67 201519,139,612$9,859,974$ 9,279,638$ 640,000$ 565,191$7.70 201619,389,348$11,800,473$ 7,588,875$ 660,000$ 549,191$6.28 201719,958,862$13,148,035$ 6,810,827$ 675,000$ 529,391$5.65 201820,382,469$12,973,621$ 7,408,848$ 705,000$ 509,141$6.10 201920,842,606$13,269,741$ 7,572,865$ 725,000$ 487,991$6.24 Source: City of Salina Comprehensive Annual Financial Reports, 2010 - 2019 City of Salina Debt Service Schedules income personal As a % of per capita Tax cent sales $ 0.275%$ 0.263%$ 0.261%$ 0.258%$ 0.265%$ 0.269%$ 0.274%$ 0.274%$ 0.256%$ 0.256% Per Capita .5 ning of school year, eg 2018- sales tax $118.59$120.99$122.48$122.79$127.77 City .5 cent $104.02$106.42$109.09$111.33$116.06 Lunch Free and Reduced Percentage Increase in per capita Sales Tax (10 years)22.8% USD 305 57.8%4,803,553 58.7%5,076,751 59.1%5,241,205 60.7%5,326,723 61.3%5,555,601 61.8%5,670,040 68.7%5,727,260 62.1%5,755,869 61.7%5,770,174 59.2%5,968,961 Headcount 7,346 7,289 7,305 7,305 7,388 7,369 7,386 7,176 7,180 7,245 Labor Force, City of Salina Schedule 17 Last Ten Fiscal Years City of Salina, Kansas Rate Demographic and Economic Statistics Unemployment Salina (interpolated) $ 6.7%26,379$ 6.7%26,258$ 6.3%26,185$ 5.1%26,441$ 5.3%26,303$ 3.9%26,170$ 3.3%27,684$ 2.7%27,684$ 3.3%30,174$ 2.9%30,094 Personal Income, Income Personal Per Capita $ 1,932,705,984$ 2,006,455,290$ 2,061,109,988$ 2,093,511,112$ 2,106,879,845$ 2,093,647,612$ 2,102,135,608$ 2,253,127,330$ 2,335,005,828 $ 1,749,298,400 (Saline County) 37,880 40,512 41,762 43,078 43,736 44,065 44,230 44,732 47,945 49,983 201046,180201147,707201248,045201347,846201447,867201547,813201647,336201746,994201846,994201946,716 Fiscal YearPopulation Sources:Population: Kansas Division of the Budget.Increase in per capita Personal Income32.0%Employment: Kansas Department of LaborPersonal income for Salina is derived from the population and per capita personal income for Saline CountyPer Capita Personal income as reported by the Bureau of Economic Analysis2019 Per Capita Personal Income staff projection2010-2019 Employment City of SalinaUSD305 headcount and free and reduced lunch data derived from Kansas Department of Education./USD 305 Budget DocumentFree and Reduced Lunch percentage is an average of the percentages for each building reported. School Data is reported at begin2019 school year is reported as 2018. Force of Labor Percentage 16.2% 25.6% 35.0% 43.7% 52.0% 61.4% 71.2% 81.0% 90.8% 100.6% 27.6% Labor ForceEmployeesRank Percentage of 20102019 8,296 Schedule 18 27.9%1,875 17.0%1,700 31.4%8,315 Principal Employers City of Salina, Kansas Current Year and Nine Years Ago EmployerType of BusinessEmployeesRank Schwan's Global Supply ChainFrozen Pizza Manufacturing1,850Unified School District No 305Public School System93533.5%1,500Great Plains ManufacturingAgricultrual & Landscaping Equipment65052.5%1,100Ex ide TechnologiesAutomotive Battery Manufacturer80043.0%600City of SalinaCity Government49371.9%425Salina VortexManufacturing-375REV GroupManufacturing-300WalmartRetail-250SignifyFluorescent Lamps60062.3%190Raytheon AircraftAircraft Manufacturing35781.4%-Eldorado NationalBusses/Recreational Vehicle25591.0%-OCCKDisability Services263101.0%-TotalSource: Salina Chamber of Commerce Salina Regional Health CenterHealth Care2,093