Loading...
Salina KS (GO Int Imp Bonds) 2022-A_600596-20227_MLWTRANSCRIPT OF PROCEEDINGS AUTHORIZING THE ISSUANCE OF $7,840,000 CITY OF SALINA, KANSAS Gilmore & Bell, P.C. 04/04/2022 GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2022-A Legal Opinion Gilmore & BeJJ, P.C. Kansas City, Missouri 600596.20227\CLOSING DOCS DATED APRIL 28, 2022 $7,840,000 CITY OF SALINA, KANSAS GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2022-A DATED APRIL 28, 2022 CLOSING LIST The transcript of proceedings will be prepared in electronic format unless otherwise noted, for the above referenced issue (the "Bonds"), and distributed as follows: 1. City of Salina, Kansas (the "Issuer") [Original+ electronic] 2. Greg Bengtson, Esq., Clark, Mize & Linville Chartered, Salina, Kansas ("Issuer's Counsel") 3. Attorney General of the State of Kansas [Original] 4. State Treasurer, Topeka, Kansas (the "Paying Agent") 5. Country Club Bank, Leawood, Kansas (the "Original Purchaser") 6. Stifel, Nicolaus & Company, Incorporated, Kansas City, Missouri (the "Municipal Advisor") 7. Gilmore & Bell, P.C., Kansas City, Missouri ("Bond Counsel") Document Number PROCEEDINGS AUTHORIZING THE IMPROVEMENTS 1. Magnolia Hills Estates No. 2 · Map of Improvement District · Petition · Minutes of the governing body meeting evidencing adoption of Resolution No. 19-7760 · Resolution No. 19-7760 authorizing improvements (recorded) · Affidavit of Publication of Resolution No. 19-7760 2. Stone Lake Phase 3a · Map of Improvement District · Petition · Minutes of the governing body meeting evidencing adoption of Resolution No. 19-7751 · Resolution No. 19-7751 authorizing improvements (recorded) · Affidavit of Publication of Resolution No. 19-7751 600596.20227\CWSING DOCS 3. Magnolia Hills Estates No. 2-Markley Road Trail • Map of Improvement District · Petition · Minutes of the governing body meeting evidencing adoption of Resolution No. 21-7957 · Resolution No. 21-7957 authorizing improvements (recorded) · Affidavit of Publication of Resolution No. 21-7957 4. North 9th Street Bridge · Minutes of the governing body meeting evidencing passage of Ordinance No. 02-10071 • Ordinance No. 02-10071 designating certain streets in the City as main trafficways • Affidavit of Publication of Ordinance No. 02-10071 · Minutes of the governing body meeting evidencing adoption of Resolution No. 19-7677 · Resolution No. 19-7677 authorizing main trafficway improvements 5. Smoky Hill River Renewal · Minutes of the governing body meeting evidencing passage of Ordinance No. 17-10885 • Ordinance No. 17-10885 authorizing capital improvements • Affidavit of Publication of Summary of Ordinance No. 17-10885 6. Automated Sanitation Trucks · Minutes of the governing body meeting evidencing passage of Resolution No. 20-7818 · Resolution No. 20-7818 authorizing municipal solid waste improvements · Affidavit of Publication of Resolution No. 20-7818 · Certificate of No Protest 7. Great Plains Manufacturing Center Convention Hall · Minutes of the governing body meeting evidencing passage of Resolution No. 21-7931 • Resolution No. 21-7931 authorizing capital improvements SPECIAL ASSESSMENT PROCEEDINGS 8. Assessment Proceedings related to Magnolia Hills Estates No. 2, Stone Lake Phase 3a and Magnolia Hills Estates No. 2 -Markley Road Trail Improvement Districts: · Statement of Final Costs · Assessment Roll Certification · Notice of Public Hearing · Form of Notice of Hearing and Statement of Cost Proposed to be Assessed · Form of Notice of Assessment · Affidavit of Publication -Notice of Public Hearing · Certificate of Mailing -Notice of Public Hearing · Excerpt of Minutes of the governing body meeting evidencing passage of Ordinance No. 22-11100 · Ordinance No. 22-11100 levying special assessments · Summary Ordinance • Affidavit of Publication of Summary Ordinance No. 22-11100 • Certificate of Mailing -Notice of Assessment • Certificate of Treasurer -Assessments Paid in Cash 600596.20227\CLOSING DOCS 11 PROCEEDINGS AUTHORIZING THE SALE AND ISSUANCE OF THE BONDS 9. Excerpt of Minutes of the governing body meeting evidencing adoption of Resolution No. 22-8029 10. Resolution No. 22-8029 authorizing the offering for sale of the Bonds 11. Notice of Bond Sale, Preliminary Official Statement and Certificate Deeming Preliminary Official Statement Final 12. Affidavit of publication of the Summary Notice of Bond Sale in the Salina Journal 13. Affidavit of publication of the Summary Notice of Bond Sale in the Kansas Register 14. Official Statement 15. Continuing Disclosure Undertaking 16. Excerpt of Minutes evidencing first reading of Ordinance No. 22-11102 17. Excerpt of Minutes of the governing body meeting evidencing opening of the bids, acceptance of the best bid of the Original Purchaser passage of Ordinance No. 22-11102 and adoption of Resolution No. 22-8041 18. Ordinance No. 22-11102 authorizing the issuance of the Bonds 19. Summary of Ordinance No. 22-11102 and Affidavit of publication of Summary of Ordinance No. 22-11102 20. Resolution No.22-8041 prescribing the form and details of the Bonds CLOSING DOCUMENTS 21. Transcript Certificate Exhibit A -Statement of Costs Exhibit B -Schedule of Outstanding General Obligation Indebtedness 22. Uniform Facsimile of Signature Certificates 23. Authorization of State Treasurer to use facsimile signature and seal 24. Specimen Bond and Bond Printer's Certificate 25. Agreement Between Issuer and Agent 26. DTC Blanket Letter of Representations 27. Rating Letter -Moody's 600596.20227\CLOSING DOCS iii 28. Closing Certificate 29. Federal Tax Certificate with attachments as follows: Exhibit A -Internal Revenue Service Form 8038-G and evidence of filing Exhibit B -Receipt for Purchase Price Exhibit C -Receipt and Representation Exhibit C-1 -Certificate of Municipal Advisor Exhibit D -Description of Property Comprising the Financed Improvements Exhibit E -Sample Annual Compliance Checklist Schedule I -Debt Service Schedule & Proof of Yield LEGAL OPINIONS 30. Approving legal opinion of Gilmore & Bell, P.C. 31. Approval letter of Attorney General MISCELLANEOUS DOCUMENTS 32. Closing Letter * * * * * 600596.20227\CLOSING DOCS iv .. ~~ ~....,..poo, 153.PNZUJ) e\.oc.._ f al 1 · 1 ~ "I I -=--=--=-c-=i-=-·=F1 i i".,, • .,.,.,_ I I I I --~i-,-.. I I I --, I~ i 1 ! . ~ I I _) 1~t :: ,_ .--I ~. I I ------I ·1-1 I I I ~ I I \ ___ ,:t:' NOfl"l)!£A5TCQINUl,MAaiOUAHW ACOnlON. 2" AllN~Ulil CN' ll'T'-'11,0, 'llll,ll(lN le CO." FOIJND IN ~ . I I I I I : I TOTAL AREA: 844,1BJ SOUARE RET Ul.3B ACRES dJRVE: 'tAm£ CUfM:JQOO 80,INCIOlOROtlblan-tll~rlPMIIJS SSSW'lrE s~1•c S 4nll'4"'E S.Slre'llll"f.: S.tr4S'st"C ,,.,..,, . 113'!S4'1t"W ,.., - ~ 111,n' I tl,1' ..,. i:Z1' ,,.,. 'IG.OO'jl58'27'of7" ...... ,. .. .,.,. ~,., ,11.0,J' LIIP" ;:;:-.... c 1~10- 117'45'21" IC I 1U3' I o::a.-I 2US' 1.-0'I' I 18'38'90" .. ..,,.., l"~T'"I '·" 1-1 "21'41'CI" .t .....,,. SU:t' Ol,21' .JIOIUII' urtz'lo" FINAL PLAT CF MAGNOLIA HILLS ESTATES #2 TO THE CITY OF SALINA, SALINE COUNTY, KANSAS A PORTION OF 1HE SOUTHEAST QUARTER Of SECTION 29. TOWNSHIP 14 SOUTH, RANGE 2 WEST or ThE 61Ji P.M .• AND A PORTION OF LOT 1, BLOCK 1, MAGNOLIA HlLlS ADDHlON TO SAUNA, SALINE COONTY, KANSAS -· llt.tN:IUAHUS, IIIC. OCEDll('IIU.l'G8Z2 Ur£ TASLE UME ll£AAJNG i.amN. U lilan(Sf"E IU)" LI 10'47"37"&: m.«/ l.J 11on:i-~·1 II0.00' alllDICCIIO,!iee:!9,l-14-$,R-2-111' \"',..._ 5/1" Rl:Blrill Ftll.Nl. OIIIICIN 111«- &a ~~ ii n $ .II .... t ' -,-->l-"1-"!3' ~NOT ro SCALE ) -1 ~ PRO.E:T LOCAllON ~-=~~NC. Will<D & ~~~ ociR~~SE~?io ORIGIN lMKNOl'IN, a s~· BAR FOUND, ORIGIN UNKNOWN 0 1/2• SAR f'OI..N>. ORIGIN lff<NOWN @ ~"'6:bl~~~ ClS-1115" CAI" roJND, • 1,12• X 24-REBAR W/ "KVE CUl-20-CAI" SET (P1) ~~T~ftHCE AS SHO\WII ON MAGNOI.JA (P2) ~TltD~~ .o.S 5HO'Jt{ ON MAGNOUA (D) 0£SCRIBEII DISTANCE f'ER RECOROED DEE> (M) ~ASUFlEO 8EARINC i5:: DISTANCE (C) CALCULATED MEASUREMENT -------llOUNDARY Of PLAT -------LOT UME --------"'"'" 1K -------EASDIDITu-1£ ----BUILDING SE'TllACK LINE -25' TYPICAL -------RESTRICTED :...cctss 1.4" Mln+"30"E IIUI' 1.5 M:zn.4.W" srr U. W«rMl'_.W SI.II' 1,7C'M'Z'3Cl"Em.tl' I.A NUV,r,: 11.40' Lt S!t'..e'l:t'W 11'1.91' 110R1H ur« r:,-,m: SOUffiE-'ST QIJA~IE!ll~ ~1'°"~-5H!'14~0U1H. ,.... --111..MA:lRRIMIOC.utOl ~ UO 11:l"lffl"W 51.,W sll'D'!,i-E J2.0J' Ul SIO"l5'W'E Sl.11' u, s,e~1 ,a.er "'" HllJES; 1-•~°':1~1~~ ..... (DUDIIC2'1'0,l'c:XMI) ·2 V;t; FINAL PLAT OF ""'''""'"'·'"'"'"· MAGNOLIA HILLS ESTATES #2 •·•';~'.:.:t'"...i'lii::: TO lHE OTY Of SAUNA, SALINE COUNTY, KANSAS ,_ PORl\ON Of lHE NORnctAST QUARTER Of SECTION 29, lO'lfr.ofSHP 14 SOI.ml. RANGE 2 't'IEST CF THE 61H P.M .. M19'V'l4"'a:f '1.19' 1, AU. lEMPORARY E"'SEIIENlS WITJ«i 11-«s Pl.AT &()UloltlAl?Y', SHM.l.. HEREBY BE VA:'.:AlEO. AHO A PORTJON Of lOT I, Bl.OCI( 1, MACHOUA HUS AOOITION TO SAUNA, SAl..liE. COUNTY, KANSAS 2. NO SlRtJCTI.JRE OF ,t,NY KIMD SHAU. BE Pu\CED I~ lHE 30' SANITARY $£"'°2 EASEMENT LOCAlEC IN BLOCKS 7 &; 8. KAW VALLEY ENGINEERING INC. 742 DUVALL AVENUE SAUNA, KANSAS 67401 PH. C78;J.~11~Jc1!' I ~.k~:.~!l-3411 DA.TE OF' PREPARATION: JULY 'D. 2018 PRO..tECT NO. E18SI~ SHEET 1 Of 2 City Clerk's Office Filed PETITION 4397 TO THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS: We, the undersigned, owners of record of property located within the City of Salina, Kansas (the "City") and being the owners of 100% of the area liable for assessment set forth below, do hereby respectively request that the Governing Body of the City create and designate an improvement district for the purpose of making certain improvements in the manner provided by K.S.A. 12-6a01, et seq. 1. The general nature of the proposed improvements are as follows: The curb, gutter, pavement, and grading for approximately 817 lineal feet of Ridgehill Drive, 648 lineal feet of Stonepost Lane, 520 lineal feet of Huntwood Drive, 171 lineal feet of Mustang Lane, 86 lineal feet of Ridgewood Court and 116 lineal feet of Stebe Court (the "Street Improvements"). The installation of approximately 2,929 lineal feet of storm sewer pipe, inlets, manholes and all appurtenances thereto (the "Storm Drainage Improvements"). The installation of approximately 233 lineal feet of six-inch water main, 2,094 lineal feet of eight-inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 1,939 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). The installation of approximately 1,257 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Line A' Improvements"). The installation of a detention basin and all appurtenances thereto (the "Detention Basin"). (collectively, the "Improvements"). 2. The estimated or probable cost of the Improvements is: One million five hundred seventy-five thousand two hundred thirty-nine dollars and seventy-six cents ($1,575,239.76). 3. The extent of the proposed improvement district to be assessed is: Magnolia Hills Estates # 2 1 Block 1, Lots 1 through 4, Block 2, Lots 1 through 4, Block 3, Lots 1 through 14, Block 4, Lot 1, Block 5, Lots 1 through 9, Block 6, Lots 1 through 3, Block 7, Lots 1 through 9, and Block 8, Lot 1, all in Magnolia Hills Estates # 2 to the City of Salina, Saline County, Kansas. And Tract 1 A TRACT OF LAND LOCATED IN THE SOUTHEAST QUARTER OF SECTION 29, TOWNSHIP 14 SOUTH, RANGE 2 WEST OF THE 6TH P.M. IN SALINE COUNTY, KANSAS, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SAID SOUTHEAST QUARTER; THENCE ON AS ASSUMED BEARING OF SOUTH 00°28'27" EAST ON THE EAST LINE OF SAID SOUTHEAST QUARTER, A DISTANCE OF 185.06 FEET TO THE SOUTHEAST CORNER OF A PARCEL RECORDED IN SALINE COUNTY REGISTER OF DEEDS, BOOK 270, PAGE 308, SAID POINT ALSO BEING THE POINT OF BEGINNING; THENCE SOUTH 89°36'54" WEST ON THE SOUTH LINE OF SAID PARCEL, A DISTANCE OF 699.25 FEET; THENCE SOUTH 00°24'52" EAST ON A LINE OF SAID PARCEL, A DISTANCE OF 65.10 FEET; THENCE SOUTH 89°29'31" WEST ON THE SOUTH LINE OF SAID PARCEL, A DISTANCE OF 260.23 FEET TO THE EAST CORNER OF LOT 4, BLOCK 2, MAGNOLIA HILLS ESTATES NO. 2 TO THE CITY OF SALINA, SALINE COUNTY, KANSAS; THENCE SOUTH 42°47'49" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 139.73 FEET; THENCE ON THE BOUNDARY OF SAID MAGNOLIA HILLS ESTATES NO. 2, ON A CURVE TO THE LEFT, WITH A CHORD DIRECTION OF SOUTH 55°07'38" EAST, A CHORD DISTANCE OF 69.97 FEET, AN ARC LENGTH OF 70.03 FEET, AND A RADIUS OF 500.00 FEET; THENCE SOUTH 30°51'38" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 60.00 FEET; THENCE ON THE BOUNDARY OF SAID MAGNOLIA HILLS ESTATES NO. 2, ON A CURVE TO THE RIGHT, WITH A CHORD DIRECTION OF NORTH 57°20' 13" WEST, A CHORD DISTANCE OF 35.23 FEET, AN ARC LENGTH OF 35.23 FEET AND A RADIUS OF 560.00 FEET; THENCE SOUTH 37°32'11" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 150.39 FEET; THENCE SOUTH 68°09'58" EAST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 99.34 FEET; THENCE SOUTH 21°50'02" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 145.00 FEET; 2 THENCE SOUTH 28°34'27" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 60.42 FEET; THENCE SOUTH 21°50'02" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 137.48 FEET; THENCE SOUTH 68°09'58" EAST ON THE EAST LINE OF SAID MAGNOLIA illLLS ESTATES NO. 2, A DISTANCE OF 89.60 FEET; THENCE SOUTH 21 °50'02" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 60.70 FEET; THENCE SOUTH 89°25'55" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 93.80 FEET; THENCE SOUTH 00°34'05" EAST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 180.00 FEET; THENCE SOUTH 89°25'55" WEST ON THE EAST LINE OF SAID MAGNOLIAIDLLS ESTATES NO. 2, A DISTANCE OF 19.75 FEET; THENCE SOUTH 00°34'05" EAST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 175.00 FEET TO THE SOUTHEAST CORNER OF LOT 1, BLOCK 8, OF SAID MAGNOLIA HILLS ESTATES NO. 2; THENCE NORTH 89°25'55" EAST, A DISTANCE OF 1249.34 FEET TO THE EAST LINE OF SAID SOUTHEAST QUARTER; THENCE NORTH 00°28'27" WEST ON THE EAST LINE OF SAID SOUTHEAST QUARTER, A DISTANCE OF 1152.04 FEET TO THE POINT OF BEGINNING. SAID TRACT CONTAINS 29.61 ACRES MORE OR LESS. Less Tract 1.2 (Drainage Easement) A TRACT OF LAND IN THE SOUTHEAST QUARTER OF SECTION 29, TOWNSHIP 14 SOUTH, RANGE 2 WEST OF THE 6TH PRINCIPAL MERIDIAN, SALINE COUNTY, KANSAS, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SAID SOUTHEAST QUARTER, THENCE ON AN ASSUMED BEARING OF SOUTH 00° 28' 27" EAST ON THE EAST LINE OF SAID SOUTHEAST QUARTER, A DISTANCE OF 185.06 FEET TO THE POINT OF BEGINNING; THENCE SOUTH 00° 28' 27" EAST ON THE EAST LINE OF SAID SOUTHEAST QUARTER, A DISTANCE OF 256.56 FEET; THENCE SOUTH 89° 36' 54" WEST, A DISTANCE OF 143.52 FEET; THENCE NORTH 57° 52' 17" WEST, A DISTANCE OF 179.64 FEET; THENCE SOUTH 89° 36' 54" WEST, A DISTANCE OF 425.00 FEET; THENCE NORTH 49° 48' 18" WEST, A DISTANCE OF 145.45 FEET TO THE SOUTH LINE OF A TRACT OF LAND DESCRIBED IN DEED BOOK 1173, PAGE 1374; THENCE NORTH 89° 29' 31" EAST ON SAID SOUTH LINE, A DISTANCE OF 130.85 FEET; 3 THENCE NORTH 00° 24' 52" WEST ON SAID SOUTH LINE, A DISTANCE OF 65.10 FEET; THENCE NORTH 89° 36' 54" EAST ON SAID SOUTH LINE, A DISTANCE OF 699.25 FEET TO THE POINT OF BEGINNING. SAID TRACT CONTAINS 3.22 ACRES MORE OR LESS. (collectively, the "Improvement District"). 4. The proposed method of assessment shall be: Each platted lot in the Improvement District shall be assessed equally per lot and Tract 1 shall be assessed on an equivalent residential unit (ERU) basis for costs of the various Improvements. The costs of the Improvements shall be more specifically apportioned to property within the Improvement District as follows: The Water System Improvements, Street Improvements, and Storm Drainage Improvements shall only be assessed to Block 1, Lots 1 through 4, Block 2, Lots 1 through 4, Block 3, Lots 1 through 14, Block 4, Lot 1, Block 5, Lots 1 through 5, and Block 6, Lot 1, all in Magnolia Hills Estates # 2 to the City of Salina, Saline County, Kansas. The Sanitary Sewer Improvements shall only be assessed to Block 1, Lots 1 through 4, Block 2, Lots 1 through 4, Block 3, Lots 1 through 14, Block 4, Lot 1, Block 5, Lots 1 through 5, and Block 6, Lots 1 and 2, all in Magnolia Hills Estates # 2 to the City of Salina, Saline County, Kansas. The Sanitary Sewer Line A' Improvements shall only be assessed to Block 1, Lots 1 through 4, Block 2, Lots 1 through 4, Block 3, Lots 1 through 14, Block 4, Lot 1, Block 5, Lots 1 through 5, and Block 6, Lots 1 and 2, all in Magnolia Hills Estates # 2 to the City of Salina, Saline County, Kansas; and to the following portion of Tract 1, described as Tract 1.1. Tract 1.1 (Portion of Tract 1 benefitted by Sanitary Sewer Line A') A TRACT OF LAND LOCATED IN THE SOUTHEAST QUARTER OF SECTION 29, TOWNSHIP 14 SOUTH, RANGE 2 WEST OF THE 6TH P.M. IN SALINE COUNTY, KANSAS, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE EAST CORNER OF LOT 4, BLOCK 2, MAGNOLIA HILLS ESTATES NO. 2 TO THE CITY OF SALINA, SALINE COUNTY, KANSAS; THENCE ON AN ASSUMED BEARING OF SOUTH 42°47'49" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 139.73 FEET; THENCE ON THE BOUNDARY OF SAID MAGNOLIA HILLS ESTATES NO. 2, ON A CURVE TO THE LEFT, WITH A CHORD DIRECTION OF SOUTH 55°07'38" EAST, A CHORD DISTANCE 4 OF 69.97 FEET, AN ARC LENGTH OF 70.03 FEET, AND A RADIUS OF 500.00 FEET; THENCE SOUTH 30°51'38" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 60.00 FEET; THENCE ON THE BOUNDARY OF SAID MAGNOLIA HILLS ESTATES NO. 2, ON A CURVE TO THE RIGHT, WITH A CHORD DIRECTION OF NORTH 57°20' 13" WEST, A CHORD DISTANCE OF 35.23 FEET, AN ARC LENGTH OF 35.23 FEET AND A RADIUS OF 560.00 FEET; THENCE SOUTH 37°32'11" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 150.39 FEET; THENCE SOUTH 68°09'58" EAST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 99.34 FEET; THENCE SOUTH 21 °50'02" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 145.00 FEET; THENCE SOUTH 28°34 '27" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 60.42 FEET; THENCE SOUTH 21°50'02" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 137.48 FEET; THENCE SOUTH 68°09'58" EAST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 89.60 FEET; THENCE SOUTH 21°50'02" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 60.70 FEET TO THE SOUTHEAST CORNER OF LOT 2, BLOCK 6, OF SAID MAGNOLIA HILLS ESTATES NO. 2; THENCE NORTH 89°25'55" EAST, A DISTANCE OF 221.45 FEET; THENCE NORTH 23°37'08" EAST, A DISTANCE OF 45.00 FEET; THENCE SOUTH 66°22'52" EAST, A DISTANCE OF 115.19 FEET; THENCE SOUTH 72°58' 51" EAST, A DISTANCE OF 60.92 FEET; THENCE SOUTH 64°09' 18" EAST, A DISTANCE OF 115.23 FEET; THENCE SOUTH 00°28'27" EAST, A DISTANCE OF 279.19 FEET; THENCE NORTH 89°25'55" EAST, A DISTANCE OF 280.10 FEET; THENCE NORTH 00°28'56" WEST, A DISTANCE OF 693.16 FEET; THENCE SOUTH 89°36'54" WEST, A DISTANCE OF 89.06 FEET; THENCE NORTH 23°56'08" WEST, A DISTANCE OF 120.00 FEET; THENCE NORTH 63°56'29" WEST, A DISTANCE OF 70.71 FEET; THENCE NORTH 00°23'06" WEST, A DISTANCE OF 158.50 FEET; THENCE SOUTH 89°36'54" WEST, A DISTANCE OF 170.00 FEET; THENCE NORTH 49°48'18" WEST, A DISTANCE OF 145.45 FEET; THENCE SOUTH 89°29'31" WEST, A DISTANCE OF 129.37 FEET TO THE POINT OF BEGINNING. SAID TRACT CONTAINS 12.88 ACRES MORE OR LESS. The Detention Basin shall be assessed to all property within the Improvement District. 5. The proposed apportionment of cost between the Improvement District and the City at Large is: 5 One hundred percent (100%) of the total cost of the Improvements shall be assessed to the Improvement District and no portion of costs shall be paid by the City at Large. 6. Request for Ag Deferral: Pursuant to K.S.A. 12-6,111, the owners ofunplatted and undeveloped Tract 1 hereby request that the City authorize and provide for a delay in the commencement of payment of special assessments related to Tract 1 for a period of not to exceed 15 years or until such property is platted or developed if the same occurs prior to the conclusion of the 15 year period. All such assessments shall be due and payable in fifteen (15) annual installments, beginning at the time such property is platted or developed or at the expiration of the 15 year deferral period. The signers of this Petition hereby request that the Improvements be made without notice and hearing as required by K.S.A. 12-6a04(a). NAMES MAY NOT BE WITHDRAWN FROM THE PETITION BY THE SIGNERS THEREOF AFTER THE GOVERNING BODY COMMENCES CONSIDERATION OF THE PETITION OR LATER THAN SEVEN (7) DAYS AFTER FILING OF THE PETITION WITH THE CITY CLERK, WHICHEVER OCCURS FIRST. Each signer of this Petition certifies1, under oath, that: (a) The petitioner and its principals do not have a financial interest in any real estate located in the city which is subject to delinquent special assessments or ad valorem taxes as of the date of the petition; (b) The petitioner and its principals do not have a financial interest in any real estate locnted in the State of Kansas on which special assessments or ad valorem taxes were delinquent for a period of more than one year during the five-year period immediately preceding the date of the petition; ( c) The petitioner and its principals are not in breach of any outstanding contractual obligations owed to the city as of the date of the petition; and ( d) The petitioner and its principals have not been convicted of a felony financial crime, including but not limited to fraud or embezzlement, during the five-year period immediately preceding the date of the petition. 1 These certifications are only required to be made by petitioners for special assessment financing in new developments. 6 ~c:-,~3 Stanley C. Byquist, Vice-President James D. Markle, Treasurer LEGAL DESCRIPTION OF PROPERTY OWNED WITHIN THE PROPOSED IMPROVEMENT DISTRICT: Block 1, Lots 1 through 4, Block 2, Lots 1 through 4, Block 3, Lots 1 through 14, Block 4, Lot 1, Block 5, Lots 1 through 9, Block 6, Lots 1 through 3, Block 7, Lots 1 through 9, and Block 8, Lot 1, all in Magnolia Hills Estates # 2 to the City of Salioa, Saline County, Kansas and Unplatted Tract 1 as described in Section 3 above. STATE OF KANSAS ) ) SALINE COUNTY ) I, the undersigned Notary Public, hereby certify that the signature appearing above is genuine and that this document was signed before me on this 't1 J;, day of t-lo~\,e:-, 2019. ~. DAN STACK ~ Notary Public -State of Kansas My Appt. Expires December '-'1 2,,I'! My appointment expires: Notaryt;;b ~ 7 I I I CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS November 4, 2019 4:00 p.m. The City Commission convened at 2:30 p.m. for EMS Deployment Study and at 3:45 p.m. for Citizens Forum at City-County Building, Room 107. Mayor Davis asked the Clerk for verification that notice had been sent for today's City Commission meeting. The Clerk replied yes. The Regular Meeting of the Board of Commissioners was called to order at 4:00 p.m. in Room 107, City-County Building. Roll call was taken followed by the Pledge of Allegiance and a moment of silence. Those present and comprising a quorum: Mayor Trent W. Davis, M.D. (presiding), Commissioners Joe Hay, Jr., ivlelissa Rose Hodges, Mike Hoppock, and Karl Ryan. Also present: Michael Schrage, City Manager; Jacob Wood, Deputy City Manager; Greg Bengtson, City Attorney; and Shandi Wicks, City Clerk. AWARDS AND PROCLAMATIONS (3.1) (3.2) The month of November, 2019 as "Native American Heritage Month" in the city of Salina. Evelyn Nelson, Community Relations Supervisor, introduces Travis Benoit as the reader of the proclamation. Mr. Benoit read the proclamation and announced associated events. The day of November 30, 2019 as "Small Business Saturday" in the city of Salina. Peggy DeBey, The Flower Nook, read the proclamation and announced associated activities. CITIZENS FORUM Jon Blanchard, 250 S. Ninth Street, mentioned that the street names of Arapahoe and Navaho were misspelled and encouraged the City Commission to get the street names changed during this month since the Governing Body proclaimed November as Native American Heritage Month. He continued to state the names should be Arapaho and Navajo. Mayor Davis asked staff hmv this would be handled. Michael Schrage, City Manager, stated he thought the appropriate department herd the request. Deborah Corrales, Salina, provided information to the City Commission regarding the first psychiatric service dog being a pit bull and provided additional information regarding the cost of pit bull bans and asked what the cost of our ban put on our city's finances. Tonya Greer, Salina, provided information on the breed of her dog, Capone and the character test of dogs. She continued to provide information regarding the court action on her dogs. She further provided her thoughts on the finances of the City of Salina. Norman lvfannel, Salina, stated neither the City Commission nor the County Commission meet next Monday due to a holiday (Veteran's Day) and the City Commission does not recognize that. PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME Page 1 I I I fu ., C 19-o$4 I ~ None. CONSEi'IT AGENDA (6.1) Approve the minutes of October 28, 2019. (6.2) Adopt Resolution No. 19-7756 authorizing the City Manager to permit the Salina VFW Post #1432 Auxiliary volunteers to solicit within the City's rights-of-way . Moved by Commissioner Hoppock, seconded by Commissioner Hay, to approve the consent agenda as presented. Aye: (5). Nay: (0). Motion carried. ADMINISTRATION (7.1) First reading Ordinance No. 19-11021 levying Salina Business Improvement District No. 1 service fees for 2020. Debbie Pack, Director of Finance & Administration, explained the district and fees. 19-0335 Moved by Commissioner Hodges, seconded by Commissioner Hay, to pass Ordinance No. 19- 11021 levying Salina Business Improvement District Number 1 service fees for 2020 on first reading. Aye: (5). Nay: (0). l\fotion carried. (7.2) Resolution No. 19-7745 authorizing the City :tvlanager to sign a Service Agreement \-vith OCCK, Inc. for 2020. Debbie Pack, Director of Finance & Administration, explained the agreement, fiscal impact and action options. Commissioner Hay asked if the resolution had anything to do with the signage that was discussed earlier. Ms. Pack stated the agreement mentions that a separate agreement would be developed to cover the signage in the future, if necessary. Commissioner Hodges asked if the KDOT grant had already been approved for 2020 for the maintenance building work. Ms. Pack stated yes. Commissioner Hodges asked if OCCK staff had received an email from a citizen and could respond appropriately. Michelle Griffin, OCCK, stated she would respond to the email. 19-0336 Moved by Commissioner Hay, seconded by Commissioner Hoppock, to adopt Resolution No. 19- 7745 authorizing the City Manager to sign a Service Agreement with OCCK, Inc. for 2020. Aye: (5). Nay: (0). Motion carried. (7.3) Approval of the project budget and resource allocation for the Smedley Family Surgical Center. (Continued from the October 14, 2019 meeting) Chris Cotten, Director of Parks & Recreation, explained the project budget and resource allocation for the request and action options. Commissioner Hodges thanked staff for following through ·with this step and the additional documentation. Commissioner Hoppock thanked staff also for providing the additional information. Commissioner Hay asked if there were any changes in the bids from the last meeting. Mr. Cotten stated the signage prices were different due to the original bidder dropping out. He continued to state that a couple other bidders increased their bids but the overall price was Page 2 I I "' "' z Q. L:.t " :::: '2 19-0337 E .'9 g 8 19-0338 I below the original amount. 1v1ichael Schrage, City Manager, stated the current purchasing policy was very vague and staff ·was currently \-Vorking on an updated policy to bring back to the City Commission for review. Commissioner Hay stated that he hoped we did not have to go through this again, he noted the bid amounts being made public and the bidding amounts changed. Moved by Commissioner Hodges, seconded by Commissioner Ryan, to authorize the project budget of $43,319.68 with a 5% construction contingency for a total of $45,485.66 with contracted portion of the project being awarded to Design Chief for the signage in the amount of 53,224, Kansas Glass for the store front in the amount of $4,334.48, City Plumbing for plumbing in the amount of 52,214.72 and Bruhl Electric for the electrical work in the amount of 56,250. Aye: (5). Nay: (0). Motion carried. (7.4) Resolution No. 19-7762 providing for the advisability and authorization of a special assessment district for street, sidewalk and drainage improvements for Markley Road from the north right-of-way line of Magnolia Road to a poirit north approximately 3,858 feet, as a direct assess perimeter street. Dan Stack, City Engineer, provided an updated agenda item to the City Commission, explained the district boundaries, proposed improvements, amendments to the documents, fiscal impact, action options. Michael Schrage, City Manager, provided additional information on the added language to the resolution regarding perimeter roads. Commissioner Hoppock asked if one of the tracts one the ,-vest decided to plat prio~ to :l\farkley Road being improved, it would be handled like we did today. Mr. Stack stated yes. He continued to ask if a tract was platted after Markley was improved, how that would be hand.led. Mr. Schrage stated the City of Salina would carry the cost of the KSA 12a-6a19 and the property owners could petition to be added to the benefit district or would have to make a lump sum payment for their share. Commissioner Hoppock stated that part of the properties were in the county and part in the City of Salina. Mr. Schrage stated yes. Mr. Stack mentioned a sanitary sewer project going on currently in the same area. Commissioner Ryan mentioned the debt financing and noted the sanitary sewer project. Mr. Schrage stated that we do not segregate special assessment financing, it was listed as a lump sum amount. r-..foved by Commissioner Hoppock, seconded by Commissioner Hay, to adopt Resolution No. 19- 7762 providing for the advisability and authorization of a special assessment district for street, idewalk and drainage improvements for Markley Road from the north right-of-way line of 1agnolia Road to a point north approximately 3,858 feet, as a direct assess perimeter street, as mended. Commissioner Hodges provided an explanation of why she would be voting against the agenda item. Mayor Davis called the question to adopt Resolution No. 19-7762, as amended. Aye: (4). Nay: (1). Hodges. Motion carried. Page 3 I I I (7.5} Resolution No. 19-7760 providing for the advisability and authorization of a special assessment district for water, sanitary sewer, street, and drainage improvements for Magnolia Hills Estates Addition No. 2 and authorization of the Mayor to execute an Improvement District Development Agreement behveen the City of Salina and Magnolia Hills Estates, Inc. Dan Stack, City Engineer, explained the district boundaries, proposed improvements, fiscal impact, action options. Michael Schrage, City .Manager, stated the agricultural deferral that i\1r. Stack was referring to was for the improvements necessary for the phase being developed and not complete buildout of the property eashvard toward Holmes Road. He continued to state it was an extension of sewer and storm detention. He further stated it was necessary to serve this phase but it ,vas not full buildout of the entire portion that would be agricultural deferred. Mr. Schrage continued to state that the Governing Body had asked staff to look into the property tax assessment as it related to vacant properties and staff felt this agenda item was the special assessment question that the information applied to the most. He continued to state that he provided a memo as part of the packet addressing that question. He further continued to clarify the action the Governing Body ··was asked to take on special assessment financing, the references of agricultural deferral of some of those assessments and the property taxation question was agricultural assessment of vacant properties. ]v1r. Schrage continued to explain the information provided in the staff memo pertaining to the agricultural assessment of vacant properties. He concluded by stating the more straight forward way to resolve this was a statutory amendment that would clarify it once and for all and we wouldn't find ourselves running up against the Board of Tax Appeals decisions and other courts decisions and revised legislation in response to those decisions. Commissioner Hodges provided her thoughts on the memo prepared by staff and asked if most subdivisions had covenants and restrictions on the use of the properties. She continued by stating she was pushing to see if this was something we could do because it was tax revenue for not only the City but for Saline County and the schools. She further stated if it was going to be too great of a challenge for us to take up, she asked if this was something the Governing Body would be willing to promote as we develop our list of things that we are concerned about for the next legislative session. She continued to provide her thoughts and asked if the remaining Governing Body members were in support of adding it to the list. Commissioner Hodges stated with all due respect, she would like the City to do their o,vn priorities list. She continued to stated there were times, the priorities overlapped but there could be some issues that were more important that don't represent the interest of the business' they represent. She went on to state it would be good to schedule some conversation time to discuss our legislative priorities. Mayor Davis suggested that we get our thoughts crystalized and if there was enough of a common voice on a topic. Commissioner Hoppock asked when the legislative agenda was put together. ?\fr. Schrage stated the Chamber of Commerce was working on it as we speak and they would be having conversations about it in the next couple weeks. He continued to state he had not identified a study session date but we could do that if the Governing Body would like. Page 4 I I I "' "' z C. w Commissioner Hodges stated it was a great idea to hold a study session and provided her thoughts on a priority list separate from the Chamber of Commerce. Commissioner Hoppock stated it was a good idea to have a study session, he had a couple ideas on his mind that may need to be included as priorities on the list to the State. He continued to ask if the legislature convened in January. Mr. Schrage stated yes and the Chamber of Commerce was trying to work ahead. Commissioner Hoppock asked how many lots were in Phase I and Phase II. Mr. Stack stated Phase I had 29 lots and Phase II had 16 lots. Mr. Stack noted that as part of the process, staff had to check the property owners for delinquent specials and stated when ·we talked about this in June, there \'\'ere no delinquent specials, when we talked about the Stone Lake special assessments a couple weeks ago, that developer was in this development as well, one of the developers (Kelly Dunn) had delinquent specials and stated Mr. Dunn no longer had the delinquent specials. He continued to state as of today, we did not have any delinquent special assessments on any of the developers in this development. Mr. Schrage stated that the City Commission may have seen on the agenda planner for November 18th. bringing back amendments to the development agreements relating to Stone Lake. He continued to state part of the conversation staff had with the developers, the current policy anticipated the City was going to oversee the construction contract so it required performance bonds, payment bonds, financial securities at the outset and the actual performance bond would be between the developer and the contractor and maintenance bond would be started with the developer and be transferred to the City when we accept the improvements and the financial security would be necessary at the point the developer turns in their own bills and were seeking reimbursement. He continued to state the item that was on November 18, 2019 agenda was to better speak to the scenario the developer was proposing which the developer would oversee the construction contract and staff's intention was to acknowledge the transition of the status of the delinquent property taxes as part of that resolution amendment. Commissioner Hodges asked for clarification on the number of pending lots. Lauren Driscoll, Director of Community & Development Services stated there \Vere 78 lots pending based on Wheatland Valley Phases I through III. 1vls. Driscoll stated there were various steps in the process; platted lots, lots with special assessments, and buildable lots and explained how that information could be provided to the City Commission in the future. Mr. Schrage stated that we may be able to add the number of lots sold to the list. Ms. Driscoll stated she had already created the spreadsheet but needed to verify some numbers with Dean Andrew, Director of Planning, and would then be able to get it sent out. Commissioner Hoppock asked how many lots were in Stone Lake Addition, Phase 2 and Phase 3a. 1\1r. Stack stated 17 lots in Phase 2 and 42 lots in Phase 3a. Commissioner Hoppock stated that Magnolia Hills Phase I had 29 lots and iviagnolia Hills first phase was completely sold out and River Trail Phase II had how many lots for sale. Mr. Stack stated River Trail Phase II had 15 lots remaining for sale this summer but the last number from the developer was 10 lots. Jon Blanchard, 250 S. Ninth Street, thanked staff for the memo prepared, thanked bond counsel provided his thoughts. He continued to state the seven (7) page memo appeared to Page 5 I :g I I be a legal brief and asked if legal counsel and concurred with the findings of the report regarding property tax assessments on agricultural deferrals. He further provided his thoughts on the scenarios listed in the memo. Greg Bengtson, City Attorney, asked what Mr. Blanchard would suggest was the ascertainable standard by which the objective would be achieved. Mr. Blanchard stated he \\'Ou.Id go with. scenario two but continued to provide his thoughts on the scenarios. He continued to provide his thoughts on the scenario options and the amount of money being lost by the agricultural deferrals. Commissioner Hodges asked if there was any interest by her fellow Governing Body members in taking a look at agricultural assessment of vacant properties, having staff take a deeper look into it and looking at revenues being left on the table. She continued to state that the City Commission owed it to staff to let them know whether or not \\.'e want to proceed. She further stated given some of Mr. Blanchard's comments in terms of scenario number 2 and also thought there were other communities in the State of Kansas that once infrastructure was in, do actually assess at a vacant lot value. She went on to state she felt there were a couple options; Option #1: wanted to look and see if it was something viable that we could do, Option #2: postpone this item until we can get a clear sense on going forward with this or Option #3: put it on the Legislative talking points to distribute to the legislators for the upcoming year. Mayor Davis stated it was a couple options that he did not think those people could do any time soon. Commissioner Hoppock stated that he did not think that Mr. Bengtson was able to provide a clear answer on the question asked by Mr. Blanchard earlier. Mr. Bengtson stated that the city manager, after receiving the indication from bond counsel and it not being a problem from a bond counsel standpoint, the City Manager consulted with legal counsel fully and legal counsel understood our task to objectively look at how one might address this phenomenon, in a way that would enable the Governing Body to determine, as a policy matter, identify a potential solution to the assessment question. He continued to state that as noted in the memo, for option one (1), we found ourselves trying to affect the judgement of the assessor (appraiser) as well as affecting the process, not making it prudent to go down that path. He further stated when you were dealing with the level of discretion the county assessor (appraiser) had, dealing with the breath of the definition of agricultural use and dealing with anything we had been able to see from the cases or any interpretive aspects from Board of Tax Appeals (BOT A), he did not know what they (a developer or owner) had to do to be absolutely sure the result of that use would assure that the county appraiser would assess it as vacant as opposed to agricultural. He continued to explain his initial response regarding the question. ri..fr. Blanchard stated there were 100 vacant lots scattered throughout the City of Salina and a majority of them have fescue grass and the assessor changed the assessed value from vacant to agriculture. He continued to state there was criteria that determined if a lot was agricultural or vacant. He further provided his thoughts on the need for a fair system and noted the fiscal note listed on the agenda item. Mr. Bengtson stated we did not raise nor discuss the full acceleration of the specials as a potential damage and asked if Ms. Riekhof had any experience or a thought on cities looking to any acceleration of specials being due on a failure to perform on a development agreement or not. Gina Riekhof, Gilmore & Bell, stated she had not drafted that into a development Page 6 I I I .... .... agreement and not aware of that being in a development agreement before where a violation of a provision of a development agreement would cause acceleration of the special assessment payments, and l'vlr. Bengtson was right, that was not something that was discussed last week as staff, bond counsel and legal counsel had explored the federal tax related issues with respect to these bonds. She continued state that we wanted to make sure we were not violating in the federal tax code a provision called the prohibition on private loans and also a private use restriction that ,vas also in the federal tax code both of which if you violate the rules, you are not able to issue tax exempt bonds, which lowers the cost of borrowing, which is what makes special assessments financing attractive. She further stated if the remedy is tied to the special assessments then that makes the tax analysis more difficult and was not prepared to give a definitive answer on the effects of the federal tax code and cause a problem on the tax exemption on the bonds but at the end of the day, we probably don't want the federal tax issues related to our bonds that drives the policy decision, if that is the direction the Governing Body ·wanted to go. She went on to state it would need to be something that we look into as far as challenges on a federal tax standpoint. Mr. Bengtson stated he did not think it was an easy one but with Ms. Riekhof here, he felt compelled to ask. r..fr Schrage stated that we had talked through most everything that was described with the exception of the special assessments coming due and payable, with the respect to examples of vacant lots that find themselves in this circumstance, without a doubt the Greeley Avenue property was a topic of conversation and if you look at the tall grass and weed exemptions, there is a very specific Salina unique exemption for property maintained for agricultural purposes for ad valorem assessment. He continued to explain the exemption and explained previous conversations with the county appraiser and their inspection process. Commissioner Hoppock personally thought we ·were getting into a lot of what ifs and it was up to our county appraiser to interpret what the lot was used for and thought other counties did that through their appraiser, the appraiser went out and made that decision. He continued to state that he would have to ask bond counsel if she knew of anyone that tried to do this through a development agreement. He further stated he did not think it was a conversation we wanted to get into and if you wanted to, send a letter to the county appraiser and tell them the concerns with the way things are being appraised. A conversation ensued between the City Commission and Mr. Schrage regarding agricultural assessments on vacant properties and creation of special assessment districts. Mr. Bengtson asked if it \Vas too early for a restroom break and he had a question to ask the City Manager regarding agricultural assessments on vacant properties. The City Commission recessed at 6:15 p.m. for a 10 minute break. The meeting resumed at 6:27p.m. Mr. Bengtson stated he had consulted with the City :rvianager and bond counsel regarding the options within the memo regarding agricultural assessments on vacant properties. He continued to state there could be a potential enforcement appeal by precluding the property owner from protesting a vacant determination. i\llr. Bengtson stated that Ms. Riekhof may be able to provide background information. She provided information on a development agreement on a TIF district and how that could be linked to use in a special Page 7 I I I 19-0339 z C. w assessment district development agreement. Mr. Schrage stated the prov1S10n or requirement would run with the land and not the property owner. ?\.1r. Bengtson stated that there was one piece left on what the remedy would be if the property 0\-vner would appeal. Moved by Commissioner Hay, seconded by Commissioner Hoppock, to adopt Resolution No. 19- 7760 providing for the advisability and authorization of a special assessment district for water, sanitary sewer, street, and drainage improvements for Magnolia Hills Estates Addition No. 2 and authorization of the Mayor to execute an Improvement District Development Agreement between the City of Salina and Magnolia Hills Estates, Inc. Mayor Davis stated under that scenario, we would not be asking the county assessor (appraiser) to be part of that scenario. Mr. Bengtson stated it would be to not try to affect the judgment of the county assessor (appraiser) of them doing their job. Commissioner Hoppock provided his thoughts on the scenario provided. Commissioner Hodges stated that we would not be having any further discussions on this topic or did I miss something. Mayor Davis provided his thoughts on the potential scenario, the current agenda item and what could be done in the future. Commissioner Hodges stated if this was a non-starter from the Governing Body then we do not need staff to look into it any further. Mayor Davis stated he thought we could get a consensus before the evening was over but did not think it should hold this agenda item up. Mayor Davis called the question to dopt Resolution No. 19-7760. Aye: (4). Nay: (1) Hodges. Motion carried. (7.6) Holmes Road Special Assessment Districts (7.6a) Resolution No. 19-7763 providing for the advisability and authorization of a special assessment district for the interim street, sidewalk, and drainage improvements for Holmes Road from Magnolia Road to a point approximately 2,640 feet north of Magnolia Road as a direct access perimeter street. (7.6b) Resolution No. 19-7764 providing for the advisability and authorization of a special assessment district for interim street, sidewalk and drainage improvements for Holmes Road from a point approximately 2,640 feet north of Magnolia Road to Cloud Street as a direct assess perimeter street. (7.6c} Resolution No. 19-7765 providing for the advisability and authorization of a special assessment district for the full standard street, sidewalk and drainage improvements for Holmes Road from Magnolia Road to a point approximately to Cloud Street as a direct access perimeter street to a full standard. Dan Stack, City Engineer, explained district boundaries, proposed improvements, fiscal impact, action options. Michael Schrage, City Manager, provided information regarding the KSA 12a-6a19 within the district. Commissioner Hoppock asked what the current traffic count was for Holmes Road. Mr. Stack stated ??0 cars. Commissioner Hodges asked if the cost would be recovered for this when the properties Page 8 I "' "' z Cl. w .. . s: ci "' ,!, g ., :Ii! ~ ls u 19-0340 19-0341 1 19-0342 I within the district connect up. Mr. Schrage stated yes. ~fayer Davis stated it was a little different than it was a couple months ago and was more based on traffic count. Mr. Schrage stated yes, knowing that the tracts would develop and the traffic count would grow. Mayor Davis asked \vhen Holmes Road would be improved. Mr. Schrage stated the platting could occur going west to east but that was why it was important to deal with creating the districts now. Mayor Davis asked if there was going to be connection to Markley Road and Holmes Road in the subdivisions. Mr. Stack stated yes. Mayor Davis asked if there was an expiration on the benefit district. Mr. Stack stated no. Moved by Commissioner Hoppock, seconded by Commissioner Hay, to adopt Resolution No. 19- 7763 providing for the advisability and authorization of a special assessment district for the interim street, sidewalk, and drainage improvements for Holmes Road from Magnolia Road to a point approximately 2,640 feet north of Magnolia Road as a direct access perimeter street, as amended. Aye: (4). Nay: (1) Hodges. Motion carried. Moved by Commissioner Hoppock, seconded by Commissioner Hay, to adopt Resolution No. 19- 7764 providing for the advisability and authorization of a special assessment district for interim street, sidewalk and drainage improvements for Holmes Road from a point approximately 2,640 feet north of Magnolia Road to Cloud Street as a direct assess perimeter street, as amended. Aye: (4). Nay: (1) Hodges. Motion carried. Moved by Commissioner Hoppock, seconded by Commissioner Hay, to adopt Resolution No. 19- 7765 providing for the advisability and authorization of a special assessment district for the full standard street, sidewalk and drainage improvements for Holmes Road from 1vlagnolia Road to a point approximately to Cloud Street as a direct access perimeter street to a full standard, as amended. Mayor Davis asked if the traffic count reached the high number Holmes Road would look like Markley Road. Mr. Schrage stated yes. Mayor Davis called the question. Aye: (4). Nay: (1) Hodges. Motion carried. DEVELOPMENT BUSINESS (8.1) Applications #Z19-7A and #P19-3/3a (filed by Jeremy Forshee) (8.1a) Amended Application #Z19-7 A, (filed by Jeremy Forshee on behalf of JLF Properties, LLC), requesting a change in zoning district classification from RS (Residential Suburban) to PC-6 (Planned Heavy Commercial) on a one- half acre unplatted tract of land located on the north side of Beverly Drive west of Broadway Boulevard, addressed as 1430 Beverly Drive. (8.laa) First reading Ordinance No. 19-11022. (8.lb) Consider acceptance of the offered utility easement dedication from JLF Properties, LLC to serve the Forshee Addition, a one lot plat of a 0.51 acre tract of land located on the north side of Beverly Drive west of Broadway Boulevard. Page 9 I z Q. w ., _;; oi "' 'C B = -~ 0 ~ u 19-0343 1 19-0344 Dean Andrew, Director of Planning, explained the rezoning, proposed easement dedication and action options. Mayor Davis asked if there were any plans for a lit sign or outside lighting. Mr. Andrew stated that the applicant indicated to the Planning Commission that he did not intend to place a sign on the property. He continued to state a site lighting plan and cut sheets would need to be submitted in the future for review so the outside lighting did not spill over to the neighboring properties. Mayor Davis asked how items like this had been reviewed and approved in the past. Mr. Andrew stated it would not be unusual for approval of both phases to occur up front since the applicant was very open with providing that information. Jeremy Forshee, Assaria, Kansas, stated he did not have any immediate need for phase two and provided information on the vagrants in the area and that he did not take tearing down the house lightly. Commissioner Hoppock thanked 1\1r. Forshee for developing in the area. Ivfoved by Commissioner Ryan, seconded by Commissioner Hay, to pass Ordinance No. 19-11022 changing the zoning district classification from RS (Residential Suburban) to PC-6 (Planned Heavy Commercial) on a one-half acre unplatted tract of land located on the north side of Beverly Drive west of Broadway Boulevard, addressed as 1430 Beverly Drive to allow construction of a storage building with a potential additional phase on first reading. Aye: (5). Nay: (0). ?vfotion carried. Mr. Andrew provided information on the plat request. Moved by Commissioner Hodges, seconded by Commissioner Hay, to accept the offered utility easement dedication from JLF Properties, LLC to serve the Forshee Addition, a one lot plat of a .51 acre unplatted tract of land and authorize the Mayor to sign the easement documents Aye: (5). Nay: (0). Motion carried. (8.2) Resolution No. 19-7766 expressing support for the nomination of the National Bank of America, 100 S. Santa Fe (UMB Bank) to the National Register of Historic Places and Register of Historic Kansas Places. Dean Andrew, Director of Planning, explained the request and action options. Commissioner Hodges thanked John Burger and Brenda Spencer for their hard work on the detailed nomination information. She also thanked Blue Beacon International and Lighthouse Properties III for saving the building. 19-0345 Moved by Commissioner Hoppock, seconded by Commissioner Hodges, to concur with the I recommendation of the Salina Heritage Commission finding that the National Bank of America uilding at 100 S. Santa Fe meets the applicable Criteria of Eligibility for nomination to the National Register of Historic Places and to direct staff to submit the attached Resolution of Support to the State Historic Preservation office. Aye: (5). Nay: (0). Motion carried. (8.3) Resolution No. 19-7767 authorizing the Mayor to execute a license agreement with Blue Beacon International, Inc. to allow an outward swinging exit door and associated handrail in the public alleyway on the south side of Iron Avenue east of Santa Fe A venue. Dean Andrew, Director of Planning, explained the request and action options. Page IO I I I "' "' z a. uJ .. .5. ci <I) l J 19-0346 Commissioner Hoppock asked if there was much traffic down the alley. Ivlr. Andrew stated that staff had discussed with the applicant about installing a bollard at the entrance of the alley to keep vehicular traffic from entering the alley. Guy Walker, Blue Beacon International, Inc., stated he ,vas in favor of installation of the bollard and stated they had the first and fourth floor of the building leased and had two floors to go. Mayor Davis asked how the alley was plowed of snow. Mr. Andrew stated the bollards would be lowed below ground and the equipment used ,vould fit down the alley to plow the snow. Commissioner Hodges asked what happened to the license agreement request at 104 N. Santa Fe. Mr. Andrew stated the license agreement was approved and a bollard would be installed 63 feet north of Iron Avenue to allow access to a portion of the alley by the Stromberg's for deliveries. Moved by Commissioner Hay, seconded by Commissioner Hoppock, to adopt Resolution No. 19- 7767 authorizing the Mayor to execute a license agreement with Blue Beacon International, Inc. to allow an outward swinging exit door and associated handrail in the public alleyv.1ay on the south side of Iron Avenue east of Santa Fe Avenue. Aye: (5). Nay: (0). Motion carried. (8.4) Resolution No. 19-7758 appointing members of the Planning Commission to serve on the Board of Zoning Appeals and the Heritage Commission. Dean Andrew, Director of Planning, explained the appointments and action options. Mayor Davis asked if there was any situation that there would be a conflict of interest for hearing the agenda item nvice. Mr. Andrew stated the Planning Commission helps to develop the ordinances and the Board of Zoning Appeals carries out those ordinances. 1\fr. Andre,v continued to provide examples of the role of the Planning Commission and the Board of Zoning Appeals. Lauren Driscoll, Director of Community & Development Services, provided additional information regarding the role of the Board of Zoning Appeals. Greg Bengtson, City Attorney, stated there would never be a time when a Board of Zoning Appeals member would act on an item in a quasi-judicial matter that the Planning Commission acted on. 19-0347 Moved by Commissioner Hodges, seconded by Commissioner Hoppock, to adopt Resolution No. 19-7758 appointing members of the Planning Commission to serve on the Board of Zoning Appeals and the Heritage Commission. Aye: (5). Nay: (0). Motion carried. 19-0348 OTHER BUSINESS Moved by Commissioner Hodges, seconded by Mayor Davis, to pursuing to evaluate the efficacy and evaluating the agricultural assessment of vacant properties in residential subdivisions in the city. Aye: (4). Nay: (1) Hodges. Motion carried. Commissioner Hoppock stated it would need to be discussed in order for him to be comfortable. Michael Schrage, City Manager, stated if there was direction for a discussion, there were talking points staff could work on. Page l l I I ... "' z 0.. w ~ :g Cl) i ., 11 s 19-0349 19-0350 I Commissioner Ryan stated this commission was short lived and it would be a matter for the new commission coming in. Mayor Davis called the question. Aye: (2). Nay: (3) Hay, Hoppock, Ryan. Motion failed . Commissioner Hay asked for a clarification on the number of bollards at the comers of the intersections dO\·vntown that have been hit. Michael Schrage, City 1\'lanager, stated staff had looked at the issues with the location of the bollards and the possibility of moving those back two feet. Jim Kowach, Director of Public Works, stated some intersections had been moved back and they have not been hit yet. Michael Schrage, City Manager, stated that staff had reached out to the City Commission on availability of Attorney General Presentation on open meetings and was asked if this was due to the request of the Attorney General's office or was proactive. He continued to state that staff thought of recording the presentation for use by board and commission board members. Commissioner Hodges stated that the League of Kansas Municipalities had an appointments project that was designed to recruit l-Vomen for public service and public boards. She continued to state she could forward that information to the City Manager. Greg Bengtson, City Attorney, stated Philip Michael, Assistant Attorney General, would be the person presenting the presentation and he had attended his presentation in the past. Mr. Schrage stated the presentation would be offered regionally but hosted by the City of Salina. Mayor Davis stated the plastic bag ban information was very helpful information and thanked staff for compiling it. Mayor Davis asked if early December would work to add it as an agenda discussion item. Moved by Commissioner Hay, seconded by Mayor Davis, to add as a discussion item on December 9, 2019 City Commission meeting for plastic bag discussion. Aye: (4). Nay: (1) Hodges. Motion carried. Michael Schrage, City Manager, provided an update on the Expo Center Lease agreement since the September 30. 2019 meeting. (9.1) Request for executive session (legal). 1 move the city commission recess into executive session for_ minutes to discuss the subject of negotiations with Saline County relating to the Expo Center Lease agreement with legal counsel based upon the need for consultation with an attorney for the public body which would be deemed privileged in the attorney-client relationship pursuant to KS.A. 45- 7319(b)(2) and for the reason that the public discussion of the matter would adversely affect the interests of the City. The open meeting will resume in this room at ___ p.m. Moved by Commissioner Hodges, seconded by Commissioner Hoppock, to recess into executive session for 30 minutes to discuss the subject of negotiations with Saline County relating to the Expo Center Lease agreement with legal counsel based upon the need for consultation with an attorney for the public body which would be deemed privileged in the attorney-client relationship pursuant to KS.A. 45-7319(b)(2) and for the reason that the public discussion of the matter would adversely affect the interests of the City. The open meeting will resume in this room at 8:45 p.m. allowing for a 5 minute break to precede. Aye: (5). Nay: (0). Motion carried. Page 12 I The City Commission recessed into executive session at 8:15 p.m. and reconvened at 8:45 p.m. No action was taken. Also present in executive session: Mike Schrage, City Manager; and Jacob Wood, Deputy City Manager, and Greg Bengtson, City Attorney. "' "' z Q. 19-03'51 .i l; i I Moved by Commissioner Hodges, seconded by Commissioner Hoppock, to recess into executive session for 10 minutes to discuss the subject of negotiations with Saline County relating to the Expo Center Lease agreement with legal counsel based upon the need for consultation with an attorney for the public body which ,vould be deemed privileged in the attorney-client relationship pursuant to KS.A. 45-7319(b)(2) and for the reason that the public discussion of the matter would adversely affect the interests of the City. The open meeting will resume in this room at 8:56 p.m. Aye: (5). Nay: (0). Motion carried. The City Commission recessed into executive session at 8:46 p.m . and reconvened at 8:56 p.m. 19-0352 i\foved by Commissioner Hoppock, seconded Commissioner Hodges, after reviewing the recent proposal from the Saline County Board of Commissioners we direct staff to request a Joint Meeting with the Saline County Board of Commissioners to discuss the Expo Center Lease. Aye: (5). Nay: (0). ?v1otion carried. ADJOUR.i~MENT 1 19-0353 Moved by Commissioner Hay, seconded by Commissioner Ryan, that the regular meeting of the Board of City Commissioners be adjourned. Aye: (5). Nay: (0). Ivlotion carried. The meeting adjourned at 9:00 p.m. I [SEAL] ATTEST: ., ~'U)(.Ql.A Shandi Wicks, CMC, City Clerk Page 13 ·· 111111111 mrnu m 1111111111 nmnrn1111111111111111111111111rn111111111111111 .--·-:~-, REBECCA SEEMAN {,;~:.:\;-~~~EGISTER OF DEEDS SALINE COUNTY KANSAS ~? .. :,·;:,).-JBook:1364 Page: 1276-1282 \~~~-... <VReceipt #: 126104 . I Recording Fee: so.oo _ ... -Pages Recorded: 7 CI" Date Recorded: 12/3/2019 9:33:35 AM Type of Document __ _rR~e~so~lgut!.!.!io.l!.n!.__ _________________ _ Total Recording Fees __ . $~0:l!-~00~-------------------- Return Address CITY OF SALINA ROOM 206 SHANDI L 2 0.. "' (Published in the Salina Journal on NO\Jemne.v I~ 1364 Page: 12n RESOLUTION NlJMBER 19-7760 A RESOLUTION SETTING FORTH FINDINGS AND DETERMINATIONS OF THE GOVERNING BODY OF THE CITI' OF SALINA, KANSAS ON THE ADVISABILITY OF AND AUTHORIZING THE CONSTRUCTION OF CERTAIN IMPROVEMENTS PURSUANT TO K.S.A. 12-6a01 et seq. WHEREAS, a petition was filed with the City Clerk for the City of Salina, Kansas (the "City") on November 4, 2019, proposing certain improvements pursuant to K.S.A. l2-6a01 et seq. (the "Petition"); and WHEREAS, the Petition sets forth: (a) the general nature of the proposed improvements; (b) the estimated or probable cost of the proposed improvements; (c) the extent of the proposed improvement district to be assessed for the cost of the proposed improvements; (d) the proposed method of assessment; (e) the proposed apportionment of the cost between the improvement district and the City at large; and {f) a request that such improvements be made without notice and hearing as required by K.S.A. I 2-6a04(a); and WHEREAS, the owners of record of I 00% the propeny liable to be assessed under the Petition have signed the Petition; and WHEREAS, no signatures have been withdrawn from the petition before the Governing Body began consideration of the Petition; and WHEREAS, K.S.A. 12-6a04 provides that the Governing Body may authorize and order public improvements without notice and hearing after a sufficient petition has been filed; and WHEREAS, the Governing Body has reviewed and considered the Preliminary Engineering Estimate and Feasibility Report prepared by the City Engineer and agrees with the conclusions set forth therein. NOW THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS, AS FOLLOWS: Section 1. The Governing Body hereby finds that the Petition is sufficient, and further finds and detennines that it is necessary and advisable to make the following improvements: (a) The nature of the improvements are as follows: The curb, gutter, pavement, and grading for approximately 817 lineal feet of Ridgehill Drive, 648 lineal feet of Stonepost Lane, 520 lineal feet of Huntwood Drive, 171 lineal feet of Mustang Lane, 86 lineal feet of Ridgewood Court and 116 lineal feet of Stebe Court (the "Street Improvements"). The installation of approximately 2,929 I ineal feet of storm sewer pipe, inlets, manholes and all appurtenances thereto (the "Storm Drainage Improvements"). '• The installation of approximately 233 lineal feet of six-inch water main, 2,094 lineal feet of eight-inch water main, fire hydrants, valves, finiz1gs, ervice connections for water lines and all appurtenances thereto (the "Water System Impro ements"). The installation of approximately 1,939 lineal fe of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"}. I I t. .•. "' "' (b) Boole 13&4 Page: 1278 The installation of approximately 1,257 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Line A' Improvements"). The installation of a detention basin and all appurtenances thereto (the "Detention Basin"). (collectively, the "Improvements"). The estimated cost of the Improvements is: One million five hundred seventy-five thousand two hundred thirty-nine dollars and seventy- six cents ($1,575,239.76). (c) The boundaries of the improvement district to be assessed are: Block 1, Lots l through 4,'Block 2, Lots l through 4,'Block 3, Lots 1 through 14,'BIOtk 4, Lot l Block 5, Lots 1 through 9f Block 6, Lots I through 3[ Block 7, Lots l through 9~ and Block 8, Lot I~ all in Magnolia Hills Estates No. 2 to the City of Salina, Saline County, Kansas. And Tract 1 /A TRACT OF LAND LOCATED IN THE SOUTHEAST QUARTER OF SECTION 29, TOWNSHIP 14 SOUTH, RANGE 2 WEST OF THE 6TH P.M. IN SALINE COUNTY, KANSAS, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SAID SOUTHEAST QUARTER; THENCE ON AS ASSUMED BEARING OF SOUTH 00°28'27" EAST ON THE EAST LINE OF SAID SOUTHEAST QUARTER. A DISTANCE OF 185.06 FEET TO THE SOUTHEAST CORNER OF A PARCEL RECORDED IN SALINE COUNTY REGISTER OF DEEDS, BOOK 270, PAGE 308, SAID POINT ALSO BEING THE POINT OF BEGIJl..1NING; THENCE SOUTH 89°36'54" WEST ON THE SOUTH LINE OF SAID PARCEL, A DISTANCE OF 699.25 FEET; THENCE SOUTH 00°24'52" EAST ON A LINE OF SAID PARCEL, A DISTANCE OF 65.10 FEET; THENCE SOUTH 89°29'3 l" WEST ON THE SOUTH LINE OF SAID PARCEL, A DISTANCE OF 260.23 FEET TO THE EAST CORNER OF LOT 4, BLOCK 2, MAGNOLIA HILLS EST A TES NO. 2 TO THE CITY OF SALINA, SALINE COUNTY, KANSAS; THENCE SOUTH 42°47'49" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 139.73 FEET; THENCE ON THE BOUNDARY OF SAID MAGNOLIA HILLS ESTATES NO. 2, ON A CURVE TO THE LEFT, WITH A CHORD DIRECTION OF SOUTH 55°07'38" EAST, A CHORD DISTANCE OF 69.97 FEET, AN ARC LENGTH OF 70.03 FEET, AND A RADIUS OF 500.00 FEET; THENCE SOUTH 30°51 '38" WEST ON THE EAST LINE OF SAID MAGNOLIA HU.LS ESTATES NO. 2, A DISTANCE OF 60.00 FEET; THENCE ON THE BOUNDARY OF SAID MAGNOLIA HILLS ESTATES NO. 2, ON A CURVE TO THE RIGHT, WITH A CHORD DIRECTION OF NORTH 57°20' 13" WEST, A CHORD DISTANCE OF 35.23 FEET, AN ARC LENGTH OF 35.23 FEET AND A RADIUS OF 560.00 FEET; THENCE SOUTH 37°32' 11" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 150.39 FEET; 2 z ll. l!t ~ 'E Ul t " ;;; g 0 tJ Boole 1364 Page: 1279 THENCE SOUTH 68°09'58" EAST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 99.34 FEET; THENCE SOUTH 21°50'02" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTA TES NO. 2, A DISTANCE OF 145.00 FEET; THENCE SOUTH 28°34'27" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 60.42 FEET; THENCE SOUTH 21°50'02" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 13 7.48 FEET; THENCE SOUTH 68°09'58" EAST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 89.60 FEET; THENCE SOUTH 21°50'02" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 60.70 FEET;. THENCE SOUTH 89°25'55" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 93.80 FEET; THENCE SOUTH 00°34 '05" EAST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 180.00 FEET; THENCE SOUTH 89°25'55" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 19.75 FEET; THENCE SOUTH 00°34'05" EAST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 175.00 FEET TO THE SOUTHEAST CORNER OF LOT I, BLOCK 8, OF SAID MAGNOLIA HILLS EST A TES NO. 2; THENCE NORTH 89°25'55" EAST, A DISTANCE OF 1249.34 FEET TO THE EAST LINE OF SAID SOUTHEAST QUARTER; THENCE NORTH 00°28'27" WEST ON THE EAST LINE OF SAID SOUTHEAST QUARTER, A DISTANCE OF 1152.04 FEET TO THE POINT OF BEGINNING. SAID TRACT CONTAINS 29.61 ACRES MORE OR LESS. Less Tract 1.2 (Drainage Easement) A TRACT OF LAND IN THE SOUTHEAST QUARTER OF SECTION 29, TOWNSHIP 14 SOUTH, RANGE 2 WEST OF THE 6TH PRINCIPAL MERIDIAN, SALINE COUNTY, KANSAS, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SAID SOUTHEAST QUARTER, THENCE ON AN ASSUMED BEARING OF SOUTH 00° 28' 27" EAST ON THE EAST UNE OF SAID SOUTHEAST QUARTER, A DISTANCE OF 185.06 FEET TO THE POINT OF BEGINNING; THENCE SOUTH 00° 28' 27" EAST ON THE EAST LINE OF SAID SOUTHEAST QUARTER, A DISTANCE OF 256.56 FEET; THENCE SOUTH 89° 36' 54" WEST, A DISTANCE OF 143.52 FEET; THENCE NORTH 57° 52' 17" WEST, A DISTANCE OF 179.64 FEET; THENCE SOUTH 89° 36' 54" WEST, A DISTANCE OF 425.00 FEET; THENCE NORTH 49° 48' 18'' WEST, A DISTANCE OF 145.45 FEET TO THE SOUTH LINE OF A TRACT OF LAND DESCRIBED IN DEED BOOK 1173, PAGE 1374; THENCE NORTH 89° 29' 3 I" EAST PN SAID SOUTH LINE, A DISTANCE OF 130.85 FEET; THENCE NORTH 00° 24' 52" WEST ON SAID SOUTH LINE, A DISTANCE OF 65.10 FEET; THENCE NORTH 89° 36' 54" EAST ON SAID SOUTH LINE, A .DISTANCE OF 699.25 FEET TO THE POINT OF BEGINNING. SAID TRACT CONTAINS 3.22 ACRES MORE OR LESS. (collectively, the "Improvement District"). 3 '• (d) ., ., z .. w .. (e) ~ .ii 'C .!! .. . 'I! ~ ~ Boole 1364 Page: 1280 The apportionment of cost between the Improvement District and the city at large is: One hundred percent (100%) of the total cost of the Improvements shall be assessed to the Improvement District and no portion of costs shall be paid by the City at Large. The method of assessment against property within the Improvement District shall be: Each platted lot in the Improvement District shall be assessed equaJly per lot and Tract l shall be assessed on an equivalent residential unit (ERU) basis for costs of the various Improvements. The costs of the Improvements shall be more specifically apportioned to property within the Improvement District as follows: The Water System Improvements, Street Improvements, and Stonn Drainage Improvements shall only be assessed to Block I, Lots 1 through 4, Block 2, Lots 1 through 4, Block 3, Lots I through 14, Block 4, Lot l, Block 5, Lots l through 5, and Block 6, Lot l, all in Magnolia Hills Estates No. 2 to the City of Salina, Saline County, Kansas. The Sanitary Sewer Improvements shall only be assessed to Block 1, ~ts l through 4, Block 2, Lots l through 4, Block 3, Lots l through 14, Block 4, Lot l, Block 5, Lots I through 5, and Block 6, Lots 1 and 2, all in Magnolia Hills Estates No. 2 to the City of Salina, Saline County, Kansas. The Sanitary Sewer Line A' Improvements shall only be assessed to Block I, Lots I through 4, Block 2, Lots l through 4, Block 3, Lots I through 14, Block 4, Lot I, Block 5, Lots 1 through 5, and Block 6, Lots l and 2, all in Magnolia Hills Estates No. 2 to the City of Salina, Saline County, Kansas; and to the following portion of Tract 1, described as Tract 1.1. Tract 1.1 (Portion of Tract I benefitted by Sanitan • Sewer Line A') A TRACT OF LAND LOCATED IN THE SOUTHEAST QUARTER OF SECTION 29, TOWNSHIP 14 SOUTH, RANGE 2 \VEST OF THE 6TH P.M. IN SALINE COUNTY, KANSAS, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGn,n~ING AT THE EAST CORNER OF LOT 4, BLOCK 2, MAGNOLIA HILLS ESTATES NO. 2 TO THE CITY OF SALINA, SALINE COUNTY, KANSAS; THENCE ON AN ASSUMED BEARING OF SOUTH 42°47'49" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 139.73 FEET; THENCE ON THE BOUNDARY OF SAID MAGNOLIA HILLS ESTATES NO. 2, ON A CURVE TO THE LEFT, WITH A CHORD DIRECTION OF SOUTH 55°07'38" EAST, A CHORD DISTANCE OF 69.97 FEET, AN ARC LENGTH OF 70.03 FEET, AND A RADIUS OF 500.00 FEET; THENCE SOUTH 30°51 '38" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS EST A TES NO. 2, A DISTANCE OF 60.00 FEET; THENCE ON THE BOUNDARY OF SAID MAGNOLIA HILLS ESTATES NO. 2, ON A CURVE TO THE RIGHT, WITH A CHORD DIRECTION OF NORTH 4 t ... z "-"' Boole 1364 Page: 1281 57°20' 13" WEST, A CHORD DISTANCE OF 35.23 FEET, AN ARC LENGTH OF 35.23 FEET AND A RADIUS OF 560.00 FEET; THENCE SOUTH 37°32'1 I" WEST ON THE EAST UNE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 150.39 FEET; THENCE SOUTH 68°09'58" EAST ON THE EAST UNE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 99.34 FEET; THENCE SOUTH 21 °50'02" WEST ON THE EAST UNE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 145.00 FEET; THENCE SOUTH 28°34'27" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS EST A TES NO. 2, A DISTANCE OF 60.42 FEET; THENCE SOUTH 21 °50'02" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 137.48 FEET; THENCE SOUTH 68°09'58" EAST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 89.60 FEET; THENCE SOUTH 21°50'02" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 60.70 FEET TO THE SOUTHEAST CORNER OF LOT 2, BLOCK 6, OF SAID MAGNOLIA HILLS ESTATES NO. 2; THENCE NORTH 89°25'55" EAST, A DISTANCE OF 221.45 FEET; THENCE NORTH 23°37'08" EAST, A DISTANCE OF 45.00 FEET; THENCE SOUTH 66°22'52" EAST, A DISTANCE OF 115.19 FEET; THENCE SOUTH 72°58'51" EAST, A DISTANCE OF 60.92 FEET; THENCE SOUTH 64°09'18" EAST, A DISTANCE OF 115.23 FEET; THENCE SOUTH 00°28'27" EAST, A DISTANCE OF 279.19 FEET; THENCE NORTH 89°25'55" EAST, A DISTANCE OF 280.10 FEET; THENCE NORTH 00°28'56" WEST, A DISTANCE OF 693.16 FEET; THENCE SOUTH 89°36'54" WEST, A DISTANCE OF 89.06 FEET; THENCE NORTH 23°56'08" WEST, A DISTANCE OF 120.00 FEET; THENCE NORTH 63°56'29" WEST, A DISTANCE OF 70.71 FEET; THENCE NORTH 00°23'06" WEST, A DISTANCE OF 158.50 FEET; THENCE SOUTH 89°36'54" WEST, A DISTANCE OF 170.00 FEET; THENCE NORTH 49°48'18" WEST, A DISTANCE OF 145.45 FEET; THENCE SOUTH 89°29'31" WEST, A DISTANCE OF 129.37 FEET TO THE POINT OF BEGrNNING. SAID TRACT CONTAINS 12.88 ACRES MORE OR LESS. The Detention Basin shall be assessed to all property within the Improvement District. Section 2. The Governing Body hereby declares that the Improvements described in this esolution are necessary, and authorizes them to be made in accordance with the Petition and the findings set onh in this Resolution, and further authorizes the lev)•ing of assessments and the issuance of bonds therefor upon the satisfaction of certain conditions set forth in the Development Agreement described in Section 5 of his Resolution), all in accordance with K.S.A. I 2-6a0 I et seq .. Section 3. Pursuant lO K.S.A. 12-6,111, the goveming body hereby authorizes and provides for a elay in the commencement of payment of special assessments related to the unplatted and undeveloped Tract I or a period of not to exceed IS years from the date assessments are first levied against the Improvement istrict or until such property is platted or developed if the same occurs prior to the conclusion of the 15 year eriod. All such assessments shall be due and payable in fifteen ( 15) annual installments, beginning at the time uch property is platted or developed or at the expiration of the 15 year deferral period. s L i' .... " L"> .., Boole 1364 Page: 1282 Section 4. The City expects to make capital expenditures from and after the date of this Resolution in connection with the Improvements described herein, and intends to reimburse itself for such expenditures with the proceeds of one or more series of general obi igation_ bonds and temporary notes of the City in the maximum principal amount of$l,57S,239.76. Section 5. That certain Improvement District Development Agreement by and between the City and Magnolia Hills, Inc. is hereby approved in substantially the fonn presented to the governing body on this date. The Mayor is authorized to execute the Development Agreement on behalf of the City, and the Mayor, Clerk and other City staff are authorized to take such further actions as necessary to carry out the transactions contemplated thereby. Notwithstanding the provisions of Section 9 of Resolution 18-7556 (the City's current policy for financing public improvements through the use of Improvement Districts under the Act), the Developer shall not be obligated to provide the Financial Guarantee prior to receipt of the Certificate of Completion delivered by the City pursuant to the Development Agreement. The Developer shall be obligated to provide the Financial Guarantee (in an amount equal to 20% of the total actual costs to be assessed against the Improvement District) prior to the date when the City begins marketing its general obligation bonds to permanently finance the costs of the Improvements and reimburse the Developer for the costs thereof. Section 6. The City Clerk shall file a certified copy of this Resolution with the Register of Deeds of Saline County, Kansas. Section 7. city newspaper. This Resolution shall rake effect after its passage and publication once in the official ADOPTED AND PASSED this 4th day of November, 2019 SEAL) ~· .lw~ handi L. Wicks, City Clerk l herebv certify that the above and foregoing is a true and co;rect copy of Resolution No. 19-7760 that was adopted by the Governing Body of the City of Salina at their regular meeting on November 4, 2019. Shandi Wicks City Clerk 6 Publisher's Affidavit I, __ _,_c..,h-.ciia<,;IY=fiu;n,.k~---, being duly sworn declare that I am a I egal Coordinator of THE SALINA JOURNAL, a daily newspaper published •I Salina, Saline County, Kansas, and of general circulation in said county, which newspaper has been admitted to the mails as second class matter in said county, and continuously and uninterruptedly published for live consecutive years prior to first publication of attached notice, and that the ______ R_•..:.•..:.o.:.lu:::.ti..:.·o:..n:::..:.19:..-..:.n:..60==.. __ _:_Notice has been correctly published in the entire issue of said newspaper one time, publicittion being given in the issue of November 10 2019 C,~,·:i) 11 c;;.;&:. Subscribed an<l sworn to before ':ne, this i J -fh Printer's Fee Sl,563.00 NOTARY PUBllC. Stat, ol Kal\siS WENDY CHROBAK MyAppl.f<P.. -2•'-" INlklod~lht~Jo'n -~ !Olli IIE801.U110NINIIBlfllt-TllO A RIIOlll110N mTIIIG IQA1lt ·-· !HD Oll-lOIII OJI THI OOYIRIIHQ BODY OJI TIii QTY Cf &11.INl, KAJISAI ON TIii ID'IIWILIT'f OF 1111) AUTIIOR~INO . TIii CONIT!lllffl>N OF CllllllN IIIPROVIIIMTIMIU!"'TO ~I.A. tMdl •wq. WH!IIW, I p,111,, .. llohti> .. CftyClo'd11111t C1!v ol 6111n• K""" I\IO 'CA1) 01-1 ◄,IOfl,pllflOlmg -~"''""''""'"' lo K.SA !HID! a IOI I"' ,._,,.., WIIIAW,lht_,, .. lol!I: (l)hlfllll"'"'"ol tl!tp--:1>1 twtlllMlltdorpmllbitCGlt oi itll ,,.. •~«11•,n•; ~, .. , ... clill'~ ~-•bo _lct .. ·CCllol'" ·"""""-"""(~"" __ .,_, (lllhtp(<ic,Nd-• '"""'"_ .. ~ -••U1tCt!•"-1t:.,.~ .,_ ..... _ t1t 1111Ct •J!1.ru no111:1 n -~11-ljUA l>ll!l'(l):1116 \!ltLIW, !ht-• d ::::dt~= 11Ma:o,odlhtl'llla,;"" Wtte:AW,no •W\ltwot tMbelnifllldcNllffll!t pn1o1 btll,, 1w o....,~ llod111<;,n ... -., .. l>lc!lo,:,N! ~~~~-~ ir,lfa:Atlo:imtttllll'd«p.;bllo --'"""'""''"" ·"""'9l!ftlr1oll ... po!""' ·J',;,N111~;111d . , WHEM,11. h -Ml Soffllto_rnl_ .c,,p-.,y.-ni -. .. ,..:.,_ -. .. 11111t cr,..-,n1 ..-lfllb~Ht ,.., __ NOW THmfOIIE, ~ W RESOlntJ!V 111!:GOV!RlflfG IIOO'IOFllll!CIIYOFllU.., KANSAl,All<!U.OWS: SlcHon 1, Thf GM'nlng Ekld~lw11by'li'ld1that1/'rtPt1~ lrd!E.ltldlutf'llfftndsl/ld clltll.'l!UlllS lhal: l ls nr:eary and llti'ISlblelOll'.alt!h~ -{a)Thflmrtollhe ~ .. ul:>tlws: "'Mo~-_ ... groq lllf IF;lfoin1aij 817 llnoailll!~H .. DIM,M!t.llelfof _,_53) ·nlllttloil~wood Orl'J!,l11hll!MlrJ '1btql.Mlt.8Eihal lfilolRldgowoodC"'1 IIM116Dlaalfedgj Stel»Ctll1(!hl'Srffl _,_ n,,-·· """""""~ ,.m IIMal teal cf &lllrm IIIWM -~a, ~lffl, .......... .a --:..:=,,o~ ... ,,. .... , ... "' ..-.233 hll 1111. c;I aA'flCtl ,__,ma:i.,.sthaf (Mld~bcbwa.lel' ..._ .. _ .. ,o\e,_ l!\firot, --larnttrileanhl ·~,_....,.. llht 'Wnt s,.,. _, .. ,. Th, ~1rJ' :=::11::. ::o:::t .-!'llltl~,Oltni'dH, Uldlll~il'll/1Ca !hmilo (tit "SnlJJ --·,. ™-. ~-~ ltl7 hll!Mdt~-m/1 .. ~ .. !IVI, .-..a::md>r!IQ' ■W lln&S.~ no••~ ..... !Ito '51,,wy Snlr lN I( -. Thf~ola dlllrillol'lblslllltldal app.nwncea lhelltO 1.,,,.....,!laoh1. ,~ .. ·lhtw-'J. (bl . ThtK1io!lsdco,t~ 'ntlmptD1'9/M1111~: 0-.111.b live~ IN~.fllt llol.'Ml!d NCIIMJt.tod!hlltf,ra dollJlllfld~I{ coo1111mm.i,1.· (~Thi._. .. ~ '"-""" OMIIIIIIH111: !loct1,i.mU .... <. illo(i: t t.o0 I fV"91UkdUn I 11vo., t~ lloolt ,, LO 1,81«1 ~ Los I •"'91 l,.&ooi ~ Lost~i,llloo< l,Lillllln4ll.lf!II 8bcll.La!l,ailll ~bHibE-No, 2. to ~ C~y of s.ruo, a.1111 eo.,y, -· WTJMtt A TIU.CT' Of LNffl LOCATED ™ 111E SCUTHtAST CUARliA OF SECTION 21, TC',\-'NSHIP14$0lllll. IW«if. 2 WEST Of 111! 8111 PJI. 1H -00\llffi, ~11,RE lllSC.R8Ell AS FWOWS: COMMENCl:«l;TTHE NOR1'H!.ISTCOFfJ!JO OF IWO SOUTN!AST ~;OH.AS ASSIJMEO .BfAIJOO OF 80t/TH 00'251T WT ON THE EAST UHE OF &Ill> SOOT\lWT CIUIRTIII, ~ tllSWICE Of '111.01 Fffi TO THE IOIJTliEASI COiMT! .Of A ,_,_ . RECOI\OO) ~ W.t COONTY liEGJllif\OfOEE>S. l!OC)l(ffll,l"&SO\ SAi> POOT AW EOO lHE fC!fr(f OF ,_,_ 6CUTH 11'!6it' WfSTONTHESOl/111 LL~EOFSAIOPAACEI., ADlSTAIICEOFBiUl mT,ll-E!CESOUT!t ll•fH~tASTONA UtiE.~SA!O~ A txStliHCEOf 65.'fO FEET;11181CESOIJIH 19'29'31' wm ON M SOUlH LIKE Of SAJD PARCa, A IBSTAIICt Of 2,0.13 Fm TO 111E EAST CORISI O'LCT ~ BI.OCI( l, M/llNOUA HW ESTATES NO. 2 TO 1HE QTY OF ~ SAi.WE =·"'~ ~IV WEST 00 THE Em UIE Of SAIC "'6NOllA HWESTATESNO. 2, A OISTNICE Of 139.73FEET;~CC OH TME ~RY OF BAIO MAG,«)UA HIU.8ESTAJ'E8NO.!, ON A CURYG TO'TitE LEFT. wmt ,._ <HJ[() OII.ECTfCHOFSOUfH S5"!l7'3r EAST, A OORD CISU1NCE OF 11.17 FEET. AN AllC lENGTll OF. 7D..03 FEET, ANO A IWXlJS .CS, 500.00 Fttl'; T~ SOUTH ··ar.sl'38"'i¥m ON THE EAST LttE OF SAJO IOO!QJA IUSES!ATESOO. l. A OISTA~ Of &l.00 Fm: TliE&'E CN DIE 8CN.INDNlY OF SNO li'.AOml.lA HIUS ESWES 110. ZOU<:UIYETO 1Hf.Al!lffT,W!THA CHOPD OllECOCI< OF NOR'IH i7'20' 13'WEST,•atoAO OISTAIICEOFS!.23 l<ET,A/iARCLBIGllt ·OFIWFW!m A R.!OIIJS OF 161)»0 fEET;THENCESOUlH ··aMrtr wesr oo . THE EAST LINE OF SAID '-1.AGNOUA !111.S ESTATE$ 7'0. a ACISMCEOFIS0-!9 FEU;ll-ENCESOUTH !1'0&'58' EAST · ON lrl £"51 LIE OF SAID M,'GNOL!A HllUESTIJUNC2, AD<&'TA.'«:ECF89".34 Fm:11tElaSOOIH tt'ID't.i2• ¥i=ST ON ;tLE EMT UH_E·OF SAlll MA<ll«)IJ.1. HIU.SESL\Wl NO.a AD!STAHCEOFWS.00 Fm:l'HlHCfSQUTH 28'34'!7 WEST ON !HE EAST LINE OF BllDMAGNOUA HUS EITATES NC. l ADIST-llf'0).42 •FEEr..THENCESOJlll U'fill'Oi' .WEST ON THE E,gr llNE Of S~D MABNOL~ Hlll&ESTAl!SNO.l ADISTANCEOF137Aa FEET~THE:aSOUTK lle'ts'St" WT PN IIIE !>Sf IRE o,, IIAIO MU'IOUA. HWIEST!IEIIIO.t• A OISWICE CF •.111, =~~i TKE El8r" UN£ OF , SAlllw.:l'IOUA' HllSl!STAIIIIIO.t A OSTIIICE OF IDJO FE!T: 111EHCE SOUIH lt'!Sll' WEST ON THE EAi!\' LINE OF IND IIAONOUA' l<US£5TAIESHO-l . AOl61N<CEOFU~ :~~~ENC~~• TH! ,AST UNE OF SAJOMAGHQLLI HIUS EST/,1'1S NC I, AO!STAHCEOFt-FEET;THe«:ESOUIH ""'nl" WEST OH THf EAST LINE OF 8/lll M!GNOUA HUS ES AliS NC. t A ~STIHCE OF 11.n FW:TIEMCESOUIH m◄W EAST a« TH£ EASI ~ OF 611D M.W«lU.I lfJ.SESTATeiNO. ~ A DIST!IICE.'.OF lliOO FEET TO 111E S00711EAS'/l»!INtA OF LOT t, BtDCK' OF 8,t,lO ~Cl.IA lfU.S Ei!Am IIO.. l; T!IEHCE NOATH li'2l'll' EAi!\', A DISTAliCE . Of llll.:W FEET ' TO THE EAST LIHE OF · BNO 601/T11!.\ST aJAJ!JSII: !HEl,tl, M:IATH tw7917• WE$T 0011£ EAST LM OF SfltO SWTHWT QU,WEI\ A CISTANCE OF 115l04 FEiT TO 11E FaHI Ofl!EG""""'-"'o TR!CT OOHIAINS 29.~ ..ates IIOflE 011 LESS. ..... Tnct u to--A TRACT Of LAND 1N1llE SOUTll!AGT OUMTE!IOFSECTIOH II, TQWll9HIP 14 SCUT~ RANGE l MST OF TKE 6TI-I PRlM;IPJ\l tmlDIJ•Ji. SAUNE CWIIY. KN<SAS, BBNG Y)nE PAATICLOIU.Y DESQllSEll AS FOLtCM~ COMMENC!P<GATTHE t+'.)A'JHEAST COJWER OF SA:o SOOTTlfAS1 QU/J!Ti!\Tl191C£ OO·AJl ASSI.NED Wi!IAG Of 90UTH oo-a• 2r £AST 00 TKE wr llNi Of SAJD SOUTl!EAST QUARTER. ! DlSTNaOi=1:15.06 FEET TO TliE POM OF BEGINKNG.; THete< 60U1H W '8 2r EAST 00 TM£ UM UNE OF SNO SOUTHEASf OIJ,liRTffi, • A CISTANCE Of 258.6' Fm: THENCE SOOTH 89' :Ill' 5'" WtST,A6'STANC£0F 1.asz FEEf: THlljC£ NCRTH sr 62' n· WEST, A DISTANCE. QF 179.54 FteT: THENCE , SOOTH a,-,.. sr llor WEST, A JJfSlNtC£ ~~.:Ji> '9"4l!frWEST,A 2 Db'"11.NCE OF 1'5A5 ◄ FE=, TO 1H5 9CU1H 1.r.EOFATIUCTOf tJ,>;C PiSCR~ IN OEED 800< 1173, I ::rn"'~~ ~: ' eAST"OHSNOSOOTH J LltE, A otSTNfCE Of 6 13USFEl:T;THENC£"" NORTH 00" 2,f 2' WESTONS~DSOIITH LINE, A DISTANCE Of &5.tO FEET: Tff.NCE -... NORTlf a,-36' sr elSTOHWJ!OOTH UNE; A DISTANC£ Of 11825 FEEi TC THE I POIKTOFBEOIINN/l. , SAID TRACT t C(Jfil"'4$ 122 ' f 11:J>lS MOOECII I LESS. I ',"=·~· I~ '!bl ..,."""""' • tost.~ Ill 1,.,.. __ , , i,d""o;<1•11f!t•: (ff·,..,.,;_ ...... [!OO"i of !ht .., od I ollh>ill!l-ih~l>e-»h . lmPJQMNTI. 01~1« andncpwtb\Dlcc:all. ""'b<pallbJ,,_CI, •WI'· ·"' (f►Tb• n~ d- Et<l1-fol~1" -0"11<t ..... ..-~r.=r: 111atMlltf•tt1ill ""'ioo,-I> CCU d ~ r&.'1!>1;1 -· Tilt cotll cl !he ltr,p!Mmtn'I Iha! tit fflOtl lpt;lll;Clrty "_ .. ,, .... rty wmnllitlmprov1m1nr O~rttullillowl." ··mr,nm~ ;-1,;·ea,,.;,,,;~.rlr: !1'!-lW' WEST OH ir.4-tlyAila~~-·•·•~WT~::.::. i:; .r~ IWSl'1,llf.3NO.t --,IIIJ<I--! ADIJTmCEOF1'5.<IO ~ h .; mT;lHtNCESOUIK p..W .. d -t «·• 23'141!" WIST .OH Ao1>\1l>o 11<111 (llt C!!(iil • -ltlE E!Sl U!E Of """'P<l<llot-.ip1118(! SAID IOONOUA t,p-•"""'lw'°'or; • Hl1BE.'IA1,SNO. t k!;loW,.. -llllu U. •. AIISTNaorlll.~ Ioli, lht DolflpO! nl no!!<'., Fili'T;Tll!NCEIIOUTII oCOgdod • p,,,'d, h Fftr<tl1. ll'lO'O!' W"8T OJl-lftl • ia·~ « TllE EASrl.lNE OFV. -d ~lllo< !lllD M!ONOW. _,.. bflho Cty ,_ Ii>.,: HLI.S ESTATES NO. !, 1-. °"'""'""~L lllf· A ~STAHCfOF 11u, Dffl1opt< w1 ·" ollJ;lllj • , FE£11111!11a!SOVIH pro,ld1111tF1,-Qu..,,.(ln\ 88'®'68' EIS! ON .,,..,,iqU11•10ldlht'°"I: TIIE EAST LIN! Of ,_COlll.bte,•1od,go"'1 a;IO MAGNOLIA l\t """'"'"" "°11:1) I"" ,':,;:. 61:: ~r\rtJ~~~ =:' ~ 1= -"• n, Fm;TIEMCE!IXl1ll -~-hlool\t 8tolm On!cOQt 21'!1l'tl' WEIT OH-dllOlq,i..-... hp-11!11,;jy TIIEOOUH<OF ....... ll>t°""""'l<ll>t 1:.-::::;~ ~ '81~:.-=·i. lhClyC_,.. r.• .... ot.--4. ..... --'-A.JliB!MICE -ll'-""'-11~.,ua.; -lLo!t\-111.lOF!l'IIOltll -•w\llh-~ 11,8lodt4,l.01,l!lodt SOOIHUS'IOORJl!ll Dto<lsd-CO<ny,1'6Ua. ~l'°'\-!,.., OFUl!2,!IDCI(' -f.11111-EbclrUoll.d~ OF 8'.~ llJl)ilOUA ohlllolo .... dorll-11<"°" ~ e.... HW mms ,.,_ ,,11,-..... ~11o-"°· I lo Ill Ctr cl , 2; 1IIEHCE NOMI rt/_, s,1ia. s.r:11t C)Wf. wa,,w o.st, A llnu D!STIHl:E OF 221.4$ ADDffiO AIII PAlfll) ThoSdl~SM! In X .,_, :ds:l~,~~ fu,;,t-Z ,.,,, ""'ft~- ' Lott \""""''· ~4.lot1,S',clr5, ,.,;,-~ ... .. , .... ,wz Ill kl Mlgn:i1 ~ "'~,-,:\illallll C~rofS11lit6,Sllirc! OOW:y, ~WlS; Md \Oll'Jlfoll01'!hg l)tl!11on 01 Tlld 1, dmtbtid 11 Tractl.1. 1\l<!tJIEA!llt:t..m In41""1dtltdby IIMYl'irfil:Ln !l F!ET; -li<lldo!cl-,1011 I/OATH 11'37'18' . EAST,AO~TANCiOf ~ .. W,...._ ~Fm:~~ ij,D,Mli,1 EAlT,AOISTI/ICEOf ($E.lli \\S.til'iET:Tll£NCE 6001\! 711&~' 111<"1l.-,CIIC"" EASr. A OISTIJ,C£ Of SU!FE£t!fElfr,f SOOTlt 04W\r EAST, A DISTAHCE OF 11S2afm;Tllflltf 60UII< ""'ffl' ~,'j~~~= NORnt 8''25'5$' WT,AOIST/oHCEOf !9l.10FEET: TIIENC! !<Ofl1H 00'2911' Wi:ST,AOS1'A.-a.Of· 68l.tll'EET;TMEHCE S0U1lf 81'31'!<' W'..$1, A DISTANCE OF 81.0i! FEET; TlltNCf ~ORTH fi'68'08' -~···~-WcST . .-DISTA.',IC£0F \IODOF!ET:11<£NC! NORTH H'!ia':19" WESf,AlllSTAftCEOF 10.11 FEET: lllENCE NORTII 00'23'06' WESUDISTMCfOF tSS.60 FEO; THENCE SOUTH &9"'3&'51;' o£ST.All!STANCfOF 110.00. FEET; THENCE "°'"" lr43'1r W.ST.AaSTIJICEOf 115.<ISFEEr.TIEllCf: SOU1H 99'79'JI' W.ST,ADlmliCEO' 129..37 F£ET TOM P<lNTOf-. 8'11> TP~CT CO>ITA!HS \UB M:IIIS UOAE OIi ll'SS. ll'IID1b11i:w1Baail s.'1111 lie antsHl1 ID .. _...,fl,\ .. .,,......,0.,,,ct 17 ~-o 16 15 20 I 19 4 3 2 PETITION 4400 TO THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS: City Clerk's Office Filed We, the undersigned, owners of record of property located within the City of Salina, Kansas (the "City") and being the owners of 100% of the area liable for assessment set forth below, do hereby respectively request that the Governing Body of the City create and designate an improvement district for the purpose of making certain improvements in the manner provided by K.S.A. 12-6a01, et seq. 1. The general nature of the proposed improvements are as follows: The curb, gutter, pavement, and grading for approximately 898 lineal feet of Shoreline Drive, 1,311 lineal feet of Wet Stone Drive, 230 lineal feet of Wet Stone Port and 120 lineal feet of Wet Stone Cove (the "Street Improvements"). The installation of approximately 1,025 lineal feet of storm sewer main, inlets and all appurtenances thereto (the "Storm Sewer Improvements"). The installation of approximately 2,113 lineal feet of eight-inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 2,546 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). (collectively, the "Improvements"). 2. The estimated or probable cost of the Improvements is: One million six hundred forty-seven thousand fifty-two dollars and fifty cents ($1,647,052.50). 3. The extent of the proposed improvement district to be assessed is: Stone Lake Addition Block 1, Lots 1 through 7 and Lots 22 through 26; Block 2, Lots 1 and 2 and Lots 12 through 24; and Block 3, Lots 2 through 19, all in Stone Lake Addition to the City of Salina, Saline County, Kansas. (the "Improvement District"). 4. The proposed method of assessment shall be: Equally per lot for costs of the various Improvements. 1 5. The proposed apportionment of cost between the Improvement District and the City at Large is: One hundred percent ( 100%) of the total cost of the Improvements shall be assessed to the Improvement District and no portion of costs shall be paid by the City at Large. The signers of this Petition hereby request that the Improvements be made without notice and hearing as required by K.S.A.12-6a04(a). The signers of this Petition are the owners of 100 % of the property proposed to be included in the Improvement District and further acknowledge that (A) this Petition is one submitted pursuant to subsection (c) of K.S.A. 12-6a04, and amendments thereto; and (B) the proposed Improvement District does not include all properties which may be deemed to benefit from the proposed Improvements. NAMES MAY NOT BE WITHDRAWN FROM THE PETITION BY THE SIGNERS THEREOF AFTER THE GOVERNING BODY COMMENCES CONSIDERATION OF THE PETITION OR LATER THAN SEVEN (7) DAYS AFTER FILING OF THE PETITION WITH THE CITY CLERK, WHICHEVER OCCURS FIRST. Each signer of this Petition certifies1, under oath, that: (a) The petitioner and its principals do not have a financial interest in any real estate located in the city which is subject to delinquent special assessments or ad valorem taxes as of the date of the petition; (b) The petitioner and its principals do not have a financial interest in any real estate located in the State of Kansas on which special assessments or ad valorem taxes were delinquent for a period of more than one year during the five-year period immediately preceding the date of the petition; (c) The petitioner and its principals are not in breach of any outstanding contractual obligations owed to the city as of the date of the petition; and ( d) The petitioner and its principals have not been convicted of a felony financial crime, including but not limited to fraud or embezzlement, during the five-year period immediately preceding the date of the petition. STONEj .Ui.KE DJ. lVELOPMENT, LL. C a. J . 7-MJJ!IJii_ 4 .. 1--- Ke11y R. Dunn Managing Member Craig A. Piercy Managing Member Tod R. Roberg Managing Member 1 These certifications are only required to be made by petitioners for special assessment financing in new developments. 2 LEGAL DESCRIPTION OF PROPERTY OWNED WITHIN THE PROPOSED lMPROVEMENT DISTRICT: Block 1, Lots 1 through 7 and Lots 22 through 26; Block 2, Lots 1 and 2 and Lots 12 through 24; and Block 3, Lots 2 through 19, all in Stone Lake Addition to the City of Salina, Saline County, Kansas. STATEOFKANSAS ) ) SALINE COUNTY ) \Leri~ Q..... Dvnf\ I, the undersigned Notary Public, hereby certify that the signature appearing above is genuine and that this document was signed before me on this \9tVlday of Cb-b,, be..C , 2019. My appointment expires: 3 LEGAL DESCRIPTION OF PROPERTY OWNED WITHIN THE PROPOSED IMPROVEMENT DISTRICT: Block 1, Lots 1 through 7 and Lots 22 through 26; Block 2, Lots 1 and 2 and Lots 12 through 24; and Block 3, Lots 2 through 19, all in Stone Lake Addition to the City of Salina, Saline County, Kansas. STATE OF KANSAS ) ) SALINE COUNTY ) C""'i~ A., f,'-e(c~ I, the undersigned Notary Public, hereby certify that the signature appearing above is genuine and that this document was signed before me on this \ ~h day of Oc.k.,'c y-, 2019. A. DAN STACK ~ Notary Public -State of Kansas My Appl. Expires December 231 2.0\' ' My appointment expires: 3 LEGAL DESCRIPTION OF PROPERTY OWNED WITHIN THE PROPOSED IMPROVEMENT DISTRICT: Block 1, Lots 1 through 7 and Lots 22 through 26; Block 2, Lots 1 and 2 and Lots 12 through 24; and Block 3, Lots 2 through 19, all in Stone Lake Addition to the City of Salina, SaJine County, Kansas. STATE OF KANSAS ) ) SALINE COUNTY ) Tod P. · ~1,~3 I, the undersigned Notary Public, hereby certify that the signature appearing above is genuine and that this document was signed before me on this 1 t S+-day of Oo-b, b<.e • 2019. A. DAN STACK ~ Notary Public -State of Kansas My Appl. Expires DecemberU • .toi, My appointment expires: Notary Public 3 I I I i Ul .. C ~ I 8 CITY OF SALINA, KA.i'JSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS October 21, 2019 4:00p.m. The City Commission convened at 2:30 p.m. for Financial Update and at 3:45 p.m. for Citizens Forum at City-County Building, Room 107 . The Regular Meeting of the Board of Commissioners was called to order at 4:00 p.m. in Room 107, City-County Building. Roll call was taken followed by the Pledge of Allegiance and a moment of silence. Those present and comprising a quorum: Mayor Trent W. Davis, M.D. (presiding), Commissioners Joe Hay, Jr., Melissa Rose Hodges, Mike Hoppock, and Karl Ryan. Also present Michael Schrage, City Manager; Jacob Wood, Deputy City Manager; Greg Bengtson, City Attorney; and Allison Hamm, Deputy City Clerk. Mayor Davis asked the Clerk for verification that notice had been sent for today's City Commission meeting. The Clerk replied yes. AWARDS Ai'\iD PROCLAMATIONS (3.1) (3.2) The day of October 26, 2019 as "Rolling Hills Zoo Day" in the city of Salina. Robert Jenkins, Rolling Hills Zoo Executive Director, read the proclamation and announced associated events. He added that the tiger cubs were on display today for the first time and will be on display for this Saturday's event. The week of October 20-26, 2019 as "Friends of the Library Week" in the city of Salina. Gretta Kontas, Vice President of the Friends of the Salina Public Library, read the proclamation and announced associated events. Melanie Hedgespeth, Salina Public Library Director, introduced herself and added that she is behind the Friends of the Library. CITIZENS FORUM Deborah Corrales explained a little about Michael Vick's pit bull fighting dogs and talked about the circumstances surrounding that case. She went on to explain the dogs that were left behind and used as therapy dogs. She explained the dogs that she has had as rescue dogs and added that these dogs are not inherently dangerous. She went on to explain the requirements that she had to follow in regard to her breed specific dog and her disagreement with the ban. Commissioner Hodges asked when they would be looking at the breed specific ban again. Mike Schrage, City Manager, stated they have a rough draft from Salina Animal Services staff and believes they are a couple more weeks or so out. Tonya Greer asked the mayor if he has received a letter from Anthony Mays with the Federal Housing Equal Opportunity Department. Mr. Schrage stated it was received, but it went to the Human Relations Commission who handles these situations. He added that it would be handled else,-vhere due to a conflict of interest. Tonya Greer went on to state it has been more than two weeks since it was sent, and they hadn't received a response on the investigation. Mr. Schrage stated it ,vas a conflict of Page I I I I interest for the City to investigate. Lauren Driscoll, Director of Community and Development Services, stated they have 30 days to respond and they responded within three (3) or four (4). She added that she explained the issue surrounding conflict of interest within the letter. PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME (5.1) Public hearing to consider adoption of Resolution No. 19-7752 declaring a certain structure located at 236 5. 4th Street to be unsafe and dangerous, directing that the structure shall be repaired or removed; and establishing a reasonable amount of time within which the repair or remova1 of such structure shall commence and be completed. Sean Pilcher, Building Official, explained the dangerous structure procedures, fiscal impact, funding available and the code sections that pertain to this matter. Mike Schrage, City Manager, stated that he mentioned it had occurred on Valentine's Day of 2018, but his report had dates from this year. Mr. Pilcher clarified that it was this year. Mr. Schrage acknmvledged he is pleased and optimistic on the progress made by Mr. Ratzlaff. He added that they had an ob]igation to conduct this public hearing due to it having been published already, but enforcement wouldn't be necessary it was just an opportunity to set a deadline and ensure repairs are made. Commissioner Hoppock asked if 60 days was long enough and if it could be extended later on if Mr. Ratzlaff needs more time to complete them all. Mr. Schrage stated they have amended resolutions in the past and they are reviewed on a case by case basis, but it can be extended if needed. Mayor Davis asked what the significance was on the fire proceeds. Mr. Pilcher stated it was a Kansas state statute that every time there is a fire, the City is sent a check for 10% of the insurance proceeds in the case that action is needed by the City. He added that the City has a deadline to return it to the policy holder unless the structure is declared dangerous. A conversation ensued between Commissioner Hoppock and Mr. Pilcher on the process of the insurance proceeds. Mr. Schrage stated that state statute provides for that 10% and Salina has opted in the program. He added that it is not required across the state. Commissioner Hodges asked if Item Nos. 5, 6 and 7 were included in the building permit. :Mr. Pilcher stated yes, Mr. Ratzlaff would not need to obtain any additional permits. Commissioner Hodges asked when the photos were taken .. Mr. Pilcher stated they were taken October 9, 2019. Commissioner Hodges asked if Mr. Ratzlaff was the property owner and stated that she ,vas not able to find that online. Mr. Pilcher stated that if she searched online, it may not show that as it takes some time to get updated. He added that if a person were to go into the County Treasurer's Office, they can see that he is the property owner. John Ratzlaff, 236 South Fourth Street, stated that he can have the structure secured by the end of this week. He added that it's taken more work to lift the house, but it was finished today and there are only a few more things he needs to do to secure the property. Mr. Schrage thanked him for taking the time to take on the project. Page 2 I I I z 19-0368 Mr. Ratzlaff stated he can be done with the major list within 60 days in order to remove it as a dangerous structure. Mayor Davis opened the public hearing. There being no further comments the public hearing was closed. Moved by Commissioner Hoppock, seconded by Commissioner Hodges, to adopt Resolution No. 19-7752 finding that the structure at 236 S. 4th Street is unsafe or dangerous; directing that the structure be repaired or removed and the premises made safe and secure; fixing a time of 60 days (on or before December 20, 2019) within which the repair or removal shall be completed; and authorized staff to proceed with the demolition or repair if the owner(s) fail to comply. Aye: (5). Nay: (0). Motion carried. CONSENT AGENDA (6.1) Approve the minutes of October 14, 2019. 19-0309 Moved by Commissioner Hoppock, seconded by Commissioner Hodges, to approve the consent agenda as presented. Aye: (5). Nay: (0). Motion carried. ADMINISTRATION (7.1) Resolution No. 19-7749 providing for the advisability and authorization of a special improvement district for water, sanitary sewer, street and drainage improvements in Nine South Addition and authorizing the Mayor to execute an Improvement District Development Agreement between the City of Salina and Nine South Development, LLC. Dan Stack, City Engineer, explained the district, improvements and agreement. Commissioner Hodges asked what point it would convert to Commercial zoning. Mr. Schrage stated that regardless of the zoning category, you can maintain an Agricultural assessment by demonstrating an Agricultural use. He then went on to explain the guidelines that determine if it's Agricultural or not. A conversation ensued between Commissioner Hodges and Mr. Schrage regarding the Agricultural rate. Commissioner Hodges then added that she would like to make sure properties are assessed for what they will be developed for and requests that to apply in the future as well. Mayor Davis asked if they were paid for by the city-at-large or the developers from a historical perspective. Mr. Stack stated it was the city-at-large. He added that this one has been in the works for quite a while. Dean Andrew, Director of Planning, stated that the section in front of Market Place Apartments was built by the city-at-large and the original portion north of Schilling Road was built by the developer of the Sam's Club development. He added that most of the frontage road in front of Walmart was constructed through special assessments. Mr. Schrage stated that the City offered to install the Market Place section, but the owner at the time turned it down. Mr. Andrew added that they offered for dedication of the right-of- way and would construct the remainder of the frontage road in front of the previous m-vner' s property at the City's expense, but he declined leaving it untouched. Page 3 1 19-0310 ill I I Moved by Commissioner Ryan, seconded by Commissioner Hay, to adopt Resolution No. 19-7749 providing for the advisability and authorization of a special improvement district for water, sanitary sewer, street and drainage improvements in Nine South Addition and authorizing the Mayor to execute an Improvement District Development Agreement between the City of Salina and Nine South Development, LLC. Aye: (5). Nay: (0). Motion carried. (7.2) · Resolution No. 19-7750 providing for the advisability and authorization of a special improvement district for water, sanitary sewer, street and drainage improvements in the Stone Lake Addition Phase 2 and authorize city staff to accept bids for the improvements. Dan Stack, City Engineer, explained the district, improvements and bids received. Mike Schrage, City Manager, stated that since 2010, 2 sections have been sold which contributes to the multiple applications. Mayor Davis asked if residents can use the emergency access road if they perceive an emergency. Mr. Stack stated that the emergency access would be a special key/lock type of approach and is typically not used by residents, but it is possible. He added that their intent was to prevent them from being used other than for emergencies. Mr. Schrage stated it would most likely be a gravel road for fire trucks and their equipment. He added that it was not intended for day-to-day use due to the lack of a paved road or curb and gutters. Commissioner Hodges asked how many lots remain available in Stone Lake Phase I. Dean Andrew, Director of Planning, stated all lots were spoken for. He added that every non-lake lot has a building on it, or is under way, and the lake lots are spoken for and purchased, but not yet built on. A conversation ensued behveen Commissioner Hodges and Mr. Stack regarding the receiving of values on the lots and the process. Mayor Davis asked what the impact of financing was and asked which part the debt is being paid out of. Debbie Pack, Director of Finance and Administration, stated that it comes into debt service fund and then comes out of debt service fund. She then went on to explain the process. Mr. Schrage added that as debt service expense goes up, the revenue should go up as well except for deferrals. He then went on to explain how deferrals work. Mayor Davis asked if they had deferrals on Stone Lake. Mr. Schrage explained they were delayed and not deferred. He then went on to explain the difference between the two. A conversation ensued between Mayor Davis and Mr. Schrage regarding the statutory debt limit and if they could recoup some of the administrative costs. Mayor Davis stated the list shows all special assessments, amounts, when they start and when they end. Ms. Pack stated they have a list of projects that were funded through special assessments and some were refunded. She added that this list can tell all of that information and can also see how much will drop off each year. She concluded with saying that $50,000 to $200,000 is in debt payment only. Mr. Schrage added clarification on what debt payment is. Page4 I I I z a. w Commissioner Hoppock asked what the statutory debt limit is currently for the City. Ms. Pack stated the City is at 47% of their limit, not including anything issued in 2019. Mayor Davis stated he would like to see a maximum amount they would spend on special assessments for housing and would like to be able to watch their statutory debt limit closer. Ms. Pack stated that currently only 14% of their statutory debt limit are special assessments. Commissioner Hodges asked if they have data that shows where other communities are at for comparison, or is there a recommended percentage they should be at as a city. Ms. Pack stated she wasn't sure if there is a recommended limit, but would look into it. She added th.at their bond rating mentions level of debt and it's something they need to keep an eye on, but they also had a lot of big projects in the last few years that added to that. A conversation ensued between Commissioner Hoppock and Mr. Schrage regarding other communities and issues they have had with special assessments. Commissioner Hoppock stated he would like to continue to monitor how many residential lots become available. He then asked what percentage of special assessments are residential and what is commercial as far as projects. Mr. Schrage explained the background of special assessments and the reason behind the Menard's Development and West Diamond Drive Development. Commissioner Hodges asked if it was possible to find out if they could improve their bond rating by reducing their debt limit. Mr. Schrage stated that bond counsel wouldn't give a definitive answer, but they could provide some direction. He added that if it's a priority, it can be done. A conversation ensued between Mayor Davis and Ms. Pack regarding the statutory limit and the process of changing it. Jon Blanchard, 250 South Ninth Street, stated that the commission is under significant budget constraints and will see an increased pressure on the housing market, so it's important to collect all sales tax available. He then expressed his concern with the special assessment process and the need to create an agreement if someone asks for special assessments. He then concluded by providing informatiol) on other communities and the legislature and how they approach special assessments. Mr. Schrage stated that staff had pursued the issue with the assessor on the Agricultural use issue and its statutory requirement. He added that bond counsel will let them know if it's permissible. Greg Bengtson, City Attorney, stated that bond counsel would be the primary person to consult with on this matter due to their experience. Mayor Davis asked if the City had the right to demand payment at that rate. Mr. Schrage stated he would need to confirm with bond counsel, but the County's approach is consistent with the state statute. He then went onto explain ·what is allowed with Agricultural use. Mayor Davis asked if the City can contest the County Assessor's opinion. Mr. Schrage stated he didn't know for sure, but he thought you could contest in general or weigh in on the Board of Tax Appeal's appeal. I\1r. Bengtson added that, depending on bond counsel's opinion, they are in a matter of contract law and implementation would require commitment on part of the owner to not utilize the property that triggers the qualification for Agricultural use. He concluded with stating that it would be best to check with bond counsel. Page 5 I f w I I Mayor Davis asked if any properties in Stone Lake are considered Agricultural. Mr. Andrew stated that assessed values on vacant lots are assessed as Agricultural value and not residential. Mr. Schrage added that water, sewer and street improvements doesn't change the status. Mr. Schrage stated that there is documentation to prove such assessment and went on to explain the standard that is used to determine if it is assessed as Agricultural. Mayor Davis stated they are not losing special assessments. Mr. Schrage stated that was correct. He then went on to explain the process. Commissioner Hodges stated that the obligation to pay off special assessments remains regardless, and the taxing entities can then capture value created by putting in the infrastructure at an earlier time not an earlier rate. Mayor Davis asked if the 15 years wouldn't start until the property is improved. Mr. Schrage explained the residential assessment and Agricultural assessment; and the entire process of determining what constitutes it a special assessment classification. Todd \·Velsh, 300 South Ninth Street, shared insight on the subdivision he completed and informed the commission the property was being charged extra because it was platted. He explained his frustration with the Agricultural use classification and the current process of determining whether special assessments begin or are deferred. He then requested that the commission look into implementing a policy on how it's determined. Mr. Welsh provided an update on his developments ¾rith River Trail having ten (10) lots to be built on; Stone Lake is completely sold out; Magnolia Hills has one lot available that is currently having slab a put in. He added that most of these additions are on the higher end, but they are now looking at building homes in the $240,000 and $320,000 range. Mr. Welsh concluded by expressing his concern with the emergency access roads and requested the commissioners look at this issue in the future. Commissioner Hodges stated that she agreed with Mr. Welsh and added that she would like to see a policy applied fairly and consistently among all projects so that everyone has the same expectations. Mr. Welsh requested that the developing policy have a start date listed in there of when it will go into effect so that he and other developers can work around it. A conversation ensued between Commissioner Hodges and Mr. Welsh regarding the changes in special assessments throughout the years. Mr. Welsh stated that putting this policy into place so quickly could cause problems for himself and other developers. Commissioner Ryan asked how long it would take for the market to adjust in terms of houses with specials and ones without. Mr. Welsh stated that it is easier to sell a house with specials, but he'd like to see special assessments be reduced. Mr. Schrage stated that a typical buyer would prefer the cheaper house with specials, but it ends up being a higher monthly cost to get into the home. He added that lenders couldn't approve a loan for a home with specials because of their inability to get an assessment on that house. He concluded by stating that they haven't been able to come up with a solution that would change the lending practice. Page6 I I z a. w Mr. Welsh stated that banks put specials into consideration when giving loans to prospective homeovn,ers. Mr. Schrage stated that the prior county assessor attempted to factor in the infrastructure of the specially assessed improvements into the assessed value which went to the State Board of Tax Appeals and was overruled. A conversation ensued between Mr. Schrage and Mr. Welsh regarding whether or not improvements can be factored into the assessment to raise the value of the homes. Commissioner Hoppock stated he bought his first house in 1980 and specials were being .used even at that time and seemed to have worked for our community since then. He added that these other issues that have been brought up can be looked at in the future, but as for today, there is a shortage of inventory of lots waiting to be built on and expressed the need to have lots available for individuals to move into our community. Commissioner Hodges thanked Mr. Welsh for serving as spokesman for the issue and being a good community partner as the commission works through some of these issues. 19-0311 Moved by Commissioner Hay, seconded by Commissioner Hoppock, to adopt Resolution No. 19- 7750 providing for the advisability and authorization of a special improvement district for water, sanitary sewer, street and drainage improvements in the Stone Lake Addition Phase 2 and authorize city staff to accept bids for the improvements. Aye: (4). Nay: (1) Hodges. Motion carried. (7.3) Resolution No. 19-7751 providing for the advisability and authorization of a special improvement district for water, sanitary sewer, street and drainage improvements in Stone Lake Addition Phase 3a and authorizing the Mayor to execute an Improvement District Development Agreement between the City of Salina and Stone Lake Development, LLC. Dan Stack, City Engineer, explained the district, improvements and agreement. Com.missioner Hoppock asked what the price range was for homes they were intending to develop in this phase. Kelly Dunn, Salina, stated their price range was beh-veen $180,000 and $250,000. He added that these would be smaller houses no larger than 1,200 square feet compared to the 1,600 square feet and up for Mr. Welsh's properties. Com.missioner Hoppock asked if they would have a combination of basement and slab options. Mr. Dunn stated they could choose either or. Jon Blanchard, 250 South Ninth Street, stated it was irresponsible to add a tax burden to taxpayers. He then asked if it was in the packet that you can't have outstanding property tax in Saline County. Mr. Schrage stated that it was part of the policy, but it's not in the packet. He then added that it would fall on the petitioners. 1 19-0312 Mr. Blanchard stated that the assessor places assessed value on the land and improvements if there is a house on it. He then went on to explain how infrastructures affect the assessments. He concluded by requesting the commission add that provision to the special assessment policy to allow them to start collecting on them as soon as possible. Moved by Commissioner Hoppock, seconded by Commissioner Hay, to adopt Resolution No. 19- 7751 providing for the advisability and authorization of a special improvement district for water, Page 7 I I I "' "' z ll. w ., C: 'E Cl) i, ., i;j 1, g 8 sanitary sewer, street and drainage improvements in Stone Lake Addition Phase 3a and authorizing the Mayor to execute an Improvement District Development Agreement between the City of Salina and Stone Lake Development, LLC. Aye: (4). Nay: (1) Hodges. Motion carried. The City Commission recessed at 6:14 p.m. for a 6-minute break. The meeting resumed at 6:20 p.m. Mayor Davis stated that very few policies are perfect when created. He added that this one for special assessments ,-vill need tb be h-veaked over the years in order to improve it. DEVELOPMENT BUSINESS (8.1) Amended Application #Z19-5A, (filed by the Salina City Planning Commission), requesting amendment of Sections 42-503(1) and 42-504 of Salina's Sign Regulations to clarify what types of signs are and are not allowed in the public right-of-way. (8.la) First reading Ordinance No. 19-11020. Dean Andrew, Director of Planning, explained the text amendments and action options. Commissioner Hoppock asked for clarification on advertisement locations. Mr. Andrew stated that the frame would be considered the shelter and other improvements to the bus stops in the future might create 3-sided shelters. He added that the idea was to have it open so advertisement could be placed on benches or shelters depending on the design at a location. Commissioner Hoppock asked if every bench faced the street. Mr. Andrew stated that they did for the most part. Commissioner Hoppock stated he objected to having advertisement on benches in residential areas. Mr. Andrew stated that other types of advertisements were currently not allowed in residential areas and they were trying to preserve those areas to keep them looking residential. Commissioner Hay asked if there were restrictions on what can be advertised. Mr. Andrew directed the commission to their packet which has the guidelines for the messaging that is allowed on the signs and added that they are reviewed by OCCK. Greg Bengtson, City Attorney, added that the criteria needs to be cleaned up and stated there was a need to include an appeal process to give citizens that opportunity should it arise. · A conversation ensued between Mayor Davis, Mr. Andrew and Mr. Schrage regarding the placement of signs in someone's yard and the regulation of content on advertisements. Mr. Andrew then clarified the distinction between non-commercial and commercial speech within residential•areas. A conversation ensued behNeen Mayor Davis and Mr. Schrage over possible scenarios v,there this issue vvith advertisements might be a problem or a conflict. Mr. Schrage stated that there are several bus stops, but only two currently have advertising on them. Commissioner Hay asked if signs for contractors were not allowed. Mr. Schrage stated that was correct. A conversation ensued between Commissioner Hoppock and Mr. Andrew on examples of residential areas where advertisements would not be allowed. Commissioner Hodges asked if there were any conversations of linking the classification of Page 8 I I I the street to whether advertising is allowed or not. Mr. Andrew stated that was an alternate way of looking at it, but it had not been investigated due to their primary concern being to identify how many bus stops there were and the locations of them in terms of adjacent properties. He then added that it was a policy decision for the commission to decide how they want to approach the issue. Commissioner Hoppock stated that putting advertisement on the benches as opposed to the shelter would be less intrusive and oriented to the street. Commissioner Hay asked if there was a loophole with the real estate signs. Lauren Driscoll, Director of Community and Development Services, stated that most real estate signs were temporary and the benches they were referring to in the right-of-,vay were more permanent. A conversation ensued beh-veen Commissioner Hodges and Mr. Schrage regarding the placement of real estate signs. Mr. Andrew explained the need for them to add wording in the code regarding the benches. Commissioner Hoppock asked representatives from OCCK what the financial impact this program has on them. Michelle Griffin, Transportation Director for OCCK, stated that this request regarding advertisement on benches ·was requested by the city commission in August of 2014 to help supplement their budget. She explained the background on the agreement, the current request and listed how many stops they currently have including which of those have advertisements and which ones are residential. She concluded by giving their recommendations moving fonvard. Commissioner Hoppock asked if they had met with the Planning Commission. Ms. Griffin stated they met with them on September 17, 2019 but it was last minute. Ms. Driscoll clarified the reason for this issue being brought to commission was because of the request from people wanting to advertise. She added that when they investigated it, they found they had to create a change in the code in order to set up guidelines for these requests. She concluded by saying there was no intent in leaving OCCK out of conversations. Commissioner Hay asked if there was a resolution. Mr. Schrage stated that the resolution predates the code section, but there will be an opportunity to bring it all together in the future. A conversation ensued between Commissioner Hay, Mr. Schrage and Ms. Driscoll regarding the code and the purpose of the resolution. Commissioner Ryan recommended that they send the item back to the Planning Commission so they can get the necessary input from OCCK. Commissioner Hodges asked how much revenue was generated from the advertisement. Ms. Griffin stated it wasn't much and amounted to about $400 per year for each contract. Commissioner Hoppock asked if the advertisements were inspected. Ms. Griffin stated yes, staff conducts inspections on them regularly. Commissioner Hoppock asked how many advertisements were out there right now. ?vis. Page 9 I I I "' "' 19-0313 Griffin stated that there were 15, but four (4) of those were their own. Commissioner Hodges stated that bench advertisements were very different from the framed advertisements and didn't see a problem using bench advertisements in residential areas. She added that she wouldn't want to see very large-scale advertisements in a residential area. Jon Blanchard, 250 South Ninth Street, concurred that it was the recommendation of the city commission to put this into place and that their main concern was the standards be put into place. He continued to state his concern with the content on the advertisements within residential areas. He concluded by saying that OCCK did a great job with keeping a tasteful approach to advertisements placed on the bus stops and recommended they move fonvard with approving. Commissioner Hoppock asked when the Planning Commission met again. Mr. Andrew stated their next scheduled meeting is Tuesday, November 5, 2019. Commissioner Hay stated he didn't see a problem ·with signs on the front of the bus stops. Commissioner Hoppock stated he respected the Planning Commission's decision and said he didn't have a problem with it if it's on a bench that faces the street. He added that he would still like to see OCCK have conversations with the Planning Commission. A conversation ensued between the commission on the proposed action options. Moved by Commissioner Hoppock, seconded by Hodges, to send the item back to the Planning Commission and direct them to take into consideration the comments made by the commission and work with staff on changes to the proposed code amendment. Greg provided a clarification on the motion. Commissioner Hodges asked if there was something specified in the ordinance or operating agreement with OCCK in terms of making it specific on restrictions. Ms. Driscoll clarified the request and the type of apparatus placed on the bench in the code. She then added that their agreement would reflect that. Mr. Bengtson stated yes, that's correct. Mayor Davis asked if this was referring to the benches placed in the right-of-way. Ms. Driscoll explah1ed what the guidelines would prevent and help. Ms. Griffin asked if postponing this item and sending it back to the Planning Commission would put a hold on their funding contract. Mayor Davis asked if the commissioners were in agreement to send it back to the Planning Commission. A conversation ensued between Ms. Driscoll, Ms. Griffin and Mr. Schrage regarding the location of advertisements, the amount of bus stops that would have them and whether or not they would be allowed in residential areas. A conversation ensued between Commissioner Hoppock and l\.1r. Schrage regarding the funding request. Ms. Driscoll stated that option 3 would be the best option. Mr. Schrage added that this was an ordinance and there would be a second reading, so any corrections to the wording can be made before second reading at the next meeting. Page IO I I 1 19-0314 Clare Mullen, Mobility Manager for OCCK, explained the reason for wanting to advertise on the benches. Commissioner Hoppock stated he did not like the idea of advertisements being placed on the shelter itself. Commissioner Hodges concurred and added that eventually vinyl wraps could end up covering the entire glass shelter. Mr. Andrew rephrased what the purpose of the text amendment was and explained his concern with the ordinance. A conversation ensued between Commissioner Ryan and Mr. Andrew regarding what is needed in order to make changes to the ordinance. Mayor Davis restated the motion. Aye: (3). Nay: (2) Davis, Hay. Motion carried. OTHER BUSINESS Commissioner Hay apologized to participants and citizens that were in attendance at the softball tournaments at Bill Burke Park. He explained that he had received several complaints via email regarding the restrooms and the lack of care for them. He concluded by stating that many teams pay good money to come to town to use our facilities and there is a need to care for those. Mike Schrage, City Manager, stated he had a conversation regarding this prior to the meeting starting, but hadn't had the opportunity to investigate the reason for the lack of upkeep of the facilities. He added he would investigate it further and get it taken care of. Mayor Davis stated there is action that can be taken to minimize the damage being done to our environment regarding the plastic bag issue. He then asked what the process is to have the Solid Waste Management Committee (SWMC) get the conversation going. A conversation ensued between Mayor Davis and Mr. Schrage regarding the request and the next steps. Mr. Schrage gave a brief background of the purpose of the SWMC and their role in the issue. He then stated he could bring the issue up as a staff report for a future commission meeting and action can then be taken at that time. Mayor Davis asked if it could be put on next week's agenda in the form of a conversation item. Jim Kowach, Director of Public Works, stated that it would be relatively easy to look into further due to the issue having been discussed in the past. Commissioner Hodges stated this was similar to the Centennial Park topic and the process taken to get that done and added she is open to having this conversation on plastic bags as well. Mr. Bengtson, City Attorney, clarified there would need to be a vote to add this to the agenda for next week's meeting. Moved by Mayor Davis, seconded by Commissioner Hay, to add the discussion on a policy relating to plastic bags to next week's agenda (October 28, 2019). Aye: (5). Nay: (0). Motion carried. Page 11 I "' "' z 11. .... li! 'jj; Cl) i, ., 19-0315 j 1 1\1-0316 19-0317 I (9.1) Request for executive session (legal). I move the city commission recess into executive session for_ minutes to discuss with legal counsel the subject of the status of the KDHE-issued Consent Agreement and Final Order (CAFO) pending mediation in the Schilling Environmental Matter based upon the need for consultation with an attorney for the public body which would be deemed privileged in the attorney-client relationship pursuant to K.S.A. 75-7319(b)(2). The open meeting will resume in this room at __ p.m. Moved by Commissioner Hodges, seconded by Commissioner Hoppock, to recess into executive session for 20 minutes to _discuss with legal counsel the subject of the status of the KDHE-issued Consent Agreement and Final Order (CAFO) pending mediation in the Schilling Environmental Matter based upon the need for consultation with an attorney for the public body which would be deemed privileged in the attorney-client relationship, pursuant to K.S.A. 75-7319(b)(2),. The open meeting will resume in this room at 7:44 p.m. Aye: (5). Nay: (0). Motion carried. The City Commission recessed into executive session at 7:24 p.m. and reconvened at 7:44 p.m. No action was taken. Also present in executive session: Mike Schrage, City Manager; and Jacob Wood, Deputy City Manager. Mike Schrage, City Manager, explained the background, request and action options. Moved by Commissioner Hodges, seconded by Commissioner Hoppock -concur with the request of the Salina public entities that the KDHE agree to amend its Consent Agreement and Final Order (CAFO) pending mediation with the United States and dissent to foregoing quarterly reporting requirements and holding KDHE oversight costs in abeyance until an amendment of the CAFO is negotiated and entered. Aye: (5). Nay: (0). Motion carried. ADJOURNMEl\'T Moved by Commissioner Hay, seconded by Commissioner Hodges, that the regular meeting of the Board of City Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. The meeting adjourned at 7:46 p.m. [SEAL] ATTEST: ~LOt~fk Shandi Wicks, CMC;-c:ity Clerk Trent W. Davis, M.D., Mayor Page 12 - - - (Published in the Salina Journal on oc.~o 'o e.'{ ?.:b 2019) RESOLUTION NUMBER 19-7751 A RESOLUTION SETTING FORTH FINDINGS AND DETERMINATIONS OF THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS ON THE ADVISABILITY OF AND AUTHORIZING THE CONSTRUCTION OF CERTAIN IMPROVEMENTS PURSUANT TO K.S.A. 12-6a01 et seq. WHEREAS, a petition was filed with the City Clerk for the City of Salina, Kansas (the "City") on October 21, 2019, proposing certain improvements pursuant to K.S.A. l 2-6a0 l et seq. (the "Petition"); and WHEREAS, the Petition sets forth: (a) the general nature of the proposed improvements; (b) the estimated or probable cost of the proposed improvements; ( c) the extent of the proposed improvement district to be assessed for the cost of the proposed improvements; (d) the proposed method of assessment; (e) the proposed apportionment of the cost between the improvement district and the City at large; (f) a request that such improvements be made without notice and hearing as required by K.S.A. 12-6a04(a); and (g) the statement that the Petition was submitted under subsection (c) of K.S.A. l2-6a04; and WHEREAS, the owners of record of I 00% the property liable to be assessed under the Petition have signed the Petition; and WHEREAS, no signatures have been withdrawn from the petition before the Governing Body began consideration of the Petition; and WHEREAS, K.S.A. l 2-6a04 provides that the Governing Body may authorize and order public improvements without notice and hearing after a sufficient petition has been filed; and WHEREAS, the Governing Body has reviewed and considered the Preliminary Engineering Estimate and Feasibility Report prepared by the City Engineer and agrees with the conclusions set forth therein. NOW THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS, AS FOLLOWS: Section 1. The Governing Body hereby finds that the Petition is sufficient, and fu11her finds and determines that it is necessary and advisable to make the following improvements: (a) The nature of the improvements are as follows: The curb, gutter, pavement, and grading for approximately 898 lineal feet of Shoreline Drive, 1,311 lineal feet of Wet Stone Drive, 230 lineal feet of Wet Stone Port and 120 lineal feet of Wet Stone Cove (the "Street Improvements"). The installation of approximately 1,025 lineal feet of storm sewer main, inlets and all appurtenances thereto (the "Storm Sewer Improvements"). The installation of approximately 2,113 lineal feet of eight-inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 2,546 lineal feet of eight-inch sanitary sewer main, service ~1~11~~~~~~:~1:;~).sewer lines, 1 LJi111~~liji~1i11,i11i1 1 1l1it11M1~im~1111i1i111tuirni1111~1t11m,·1i11il1{ 1 arv Sewer ., .... -~. REBECCA SEEMAN ,-<~.! .... ~.~~_.;.REGISTER OF DEEDS SALINE COUNTY KANSAS ;;;t.1,!'Tf,t•·~~ ;,::,.';;;;, l:)Book:1363 Page: 1446-1448 \'.,,";;.;·;·:\/Receipt #: 125689 Recording Fee: $0,00 '•-~ ... -Pages Recorded: 3 C.., rJ Date Recorded: 11/5/2019 11:48:39 AM - - - Book: 1363 Page: 1447 (collectively, the "Improvements"). (b) The estimated cost of the Improvements is: One million six hundred forty-seven thousand fifty-two dollars and fifty cents ($1,647,052.50). (c) The boundaries of the improvement district to be assessed are: /Block I, Lots I through 7 and Lots 22 through 26;1Uock 2, Lots l and 2 and Lots 12 through 24; and-Block 3, Lots 2 through 19, all in Stone Lake Addition to the City of Salina, Saline County, Kansas. ( collectively, the "Improvement District"). (d) The apportionment of cost between the Improvement District and the city at large is: One hundred percent (100%) of the total cost of the Improvements shall be assessed to the Improvement District and no portion of costs shall be paid by the City at Large. ( e) The method of assessment against property within the Improvement District shall be equally per lot against all lots within the Improvement District. Section 2. The Governing Body hereby declares that the Improvements described in this Resolution are necessary, and authorizes them to be made in accordance with the Petition and the findings set forth in this Resolution, and further authoriz.es the levying of assessments and the issuance of bonds therefor (upon the satisfaction of certain conditions set forth in the Development Agreement described in Section 4 of this Resolution), all in accordance with K.S.A. 12-6a01 et seq .. The governing body of the City acknowledges that the Petition was submitted under K.S.A. 12-6a04(c) and hereby finds that the Improvement District does not include all property which may be deemed to be benefitted by the construction of the Improvements and the persons who signed the Petition are willing to pay the costs of the Improvements as set forth in the Petition. Section 3. The City expects to make capital expenditures from and after the date of this Resolution in connection with the Improvements described herein, and intends to reimburse itself for such expenditures with the proceeds of one or more series of general obligation bonds and temporary notes of the City in the maximum principal amount of$1,647,052.50. Section 4. That ce1tain Improvement District Development Agreement by and between the City and Stone Lake Development, LLC is hereby approved in substantially the fonn presented to the governing body on this date. The Mayor is authorized to execute the Development Agreement on behalf of the City, and the Mayor, Clerk and other City staff are authorized to take such further actions as necessary to carry out the transactions contemplated thereby. Section 5. The City Clerk shall file a certified copy of this Resolution with the Register of Deeds of Saline County, Kansas. Section 6. city newspaper. This Resolution shall take effect after its passage and publication once in the official ADOPTED AND PASSED this 21"1 day of October, 2019. 2 - - - z ,. "' (SEAL) ..(WsonHamm, Deputy City Clerk I hereby certify that the above and foregoing is a true and correct copy of Resolution No. 19-7751 that was adopted by the Governing Body of the City of Salina at their regular meeting on October 21, 2019. ~ 1Y[) .. A., ~/V•/VV\_ Allison Hamm Deputy City Clerk 3 Book: 1363 Page: 1448 Publisher's Affidavit I, Chrisl:J( Fink , being duly sworn declare that I am a 1,egaJ Coordioator of THE SALINA JOURNAL, a daily newspaper published at Salina, Saline County, Kansas, and of general circulation in said county, which newspaper has been admitted to the mails as second class matter in said county, and continuously and uninterruptedly published for five consecutive years prior to first publication of attached notice, and that the Resolution 19-7751 Notice has ----------------- been correctly published in the entire issue of said newspaper one time, publication being given in the issue of \ Subscribed and sworn to before me, this day of o~-k> l:iur . J 'o/ A.D.20 --·-y\_q~ Printer's Fee $507.00 NOTARY PUBLIC • S. late ot Ka. n. aas. WENDY CHROBAK . MyAppt.ExpS.·ll•v;>l.O (PubliShed ll the~ Jooma1 ~28,2019) RESOll1TIOH NUMBER 19-7751 A RESOLUTIOII SETTlffG FOIITII flNOIMGS AND DETERIIINATIONS OF THE GOYEIUIIHG BODY OF '11\E CITY OF SAUNA, KANSAS ON THE ADVISABILITY OF AND AlffilORIZING THE CONSfflllCTION OF CERTAIN IIIPIIOVEIIElff PIIRSIWIT TO K.S.A. 12-9&01 et -i- WHEREAS, a pelliln was flied with the Clly Clet1< hlf the Cly ol Salina. KB/l$8S (the 'Clly") OIi October 21, 2019, JlfflllOSlllD certain ~ ptJISUlll'II to K.S.A. 12-6«01 ef seq. (Ille 'Petllion'l: and WHEREAS, lhe P8tition Sl1CS tor111: (a)1lvlgene,alnalw9of the proposed ~: (b) tte eslflldled or prollabl8 tl06I 01 lhe ~reposed inprcvemenlS; (C) the exl8rl of the pn!IJOSl)d im!)rowmeol dislrd ID be ~ for the !;OS( ol the proposed knprovernm: (d) !he proposed llllllhod of assas,ment; {e)lhe p!opose!I fllllO(llonmat of lhecostbelftalthe~ dislrlcl and lhe ay at 1arge; Ill a request lha!S\ICII irnpnMlrllenlSba madedhool nolleeand!1eam0as requiradb'jK.SA 12-6804(a);ancl (g) the statamllll that 1h11 Petllion was8lbrlMledunderSllbseatlorl (c)oll<.SA 12~;8/ld WHEREAS. the --ol reconl ol 1~ !he property llable to ba 8S88Sl8d under lhe PetMion l1aVe $ignedlhe Pelllion: and WHEREAS. no signalUM • have tieen willldllwl1 from the petition befole the Gcwenq Body beg8ll oonsidel8lion ol 1he Petl¥Jn; and WHEREAS, K.S.A. 12-6804 • proviles lhltl ll1e Gv,emr,J 1lody may alJlhooz9 and onler pmii;_ inproY8mm Tri1lloli notic& and hearilg alter • ~ petiiO<l has been ieo; Sid Th6 ~ ol eppl01imallli)' 1,02S lineal fNt ol litlJlm ~ 111811l, l1'els and al ~ thereto (lhe "Storm Sewvr~). et seq.. "The ~ bo<tf of the CMyadcnOwledge!lllalthal'aiboll -was IIIJbmitted ll1der K.S.A. 12-6&04(c\ Ind IWrel1i' &nds !hat ilhe lmp!Ml!lfl!d llistld doeS not ,klclude ell piopel1y which may be :deemed IO be benilhd by tne iconstruclbl al the lml)«>Yeltlem The lllSl8btiUI of Cid the Pffllll'4 wllO sqied the approxinat~ 2,113 -Petlllon are willilg 1o pay the costs lineal fell ol eight· o!the llfll!OY911im8SN!forthil i1Gll wa'8r main, In die Pefl!lon, tlydrlwU, Wllves, . ~. semce conneCllOOB for water hs and all ~ lhel8lo (the 'Walllf Sy$lam ~- The _. of approxinalely 2,546 halfeetcl~ sanlta!y 8Nel ll1UI, 881W)8<m18Cli(Jnsfor -hs. manholes, and all ~ tnereto (hi 'SanilBry Se.er kq)rMmelllS"}. sec1lon 3. The Cly tJl!)8ffl to l1lllke capital exper,-Mures from 11111 after !he dale Ill lhis Resolution kl comeclion wfh Ille ~ described h918il. and l1ends to rei!tu111e beU for such eicpendltffl wllh the l>r!Xill8dl of one or lllll!8 senes of genel8I obligation' bonds and llllrj)ol8ry noles o! lhe Cily In the maxm.rn pmlCl8I ll!IM ol $1,647,052.50. Secltol,4. l118I certai1 ~Oislrict~ Agf8elll9nll,vni~tlle City and Slorie Laile lle\'elopllert. llC is h8lelr/ iipprowd il subslanlially the tllm preeente(I Ill th& go¥llllflll llOdy on tbs dale. (b) The estinalUlooetoftie The Mayol 1s ~ 10 9IICle -·· lba~~l)!l 1""'·-·--·· beh!III ol hi Cly, and Iha l!tyol, One mllian 6tX rmted . Cielk and other Cly 8IBlf are ll!ly-sMl hlusand aiihorized 10 Ulllll 111:h fulllier fifty-two dale,s and fifty 'ldionS as neceswy to C8IIY oul cera($t.647.ll52.50). ~ ~ (c) ~ ~ U: · Section 5. _ The City Clerk • be ···-• -· 1'1811 lie a ll8lliied copy of this . -WY• ;Rasokllioo di lhe Regislel of Block 1, Lots 1 lh!oogh :o-isotSali'leComiy,Kansas. 7 am LOIS 22 ~ ' . 26· llkldl 2 Lois I and • Sdon 6• This ResllludlX1 2 ~ LOIS' 12 itvOl9l . !111111 lV8 effect altBr IS pasaage 24; ana BIOOk 3, lilts 2 IIVld pooicltion once II lhe oflael hOlql 19, al II Slooe icltynew&PIIIJII. I.NII Mliion IO the C1ly of Safi1a, San 'ADOPTBI ANO PASSEl>ltils21sl Court(, Kansas. dar al oetober, 2019. (collectffelY, the '1mprowmenl Olsl!lcf). {d) The apporllonrnelll of {SEAL) WHEREAS, lhe ~ ll(l(!yliesftll'i8WedandCO!ulered " lhe l'181rnalary Engn,emg Estinal9 and FeaalJillY Report I 1)191)811d by the City ~r an\l' • 8lJN6 wtlh lhe oooclullol1& $81° Jo~~ ~ ~ MlisonliPl.OepdtyClyClertl and tile city it 1a11Je it: I 11, Oi1e hll1d!ed p!ilcenl {100%) of~~ of tiii-~ ,tlll~lOh ~-~ and no po(IOli of 006ls shall be pild by Ille City atl.a!ge. NOWnteREfOR£.BEIT RESOLVED BY lllEGOVERNIIG • BODY Of TIIE CITY Of IWJNA, KANSAS, AS FOLLOWS: Secllon 1. The ~ Body heleliy 1i1ds Iha! the Pettion Is sufflcieffl. 81d lur1her finds 8/ld delamllr1l!S lllilil isMCSSBalY and admbletomeliathefolowlrlg inl!)!Dl'8fflll!U: (al The nalUle of lhe ~8191lS ~: The curb. gutter, pawmert. and grading for lljJpltlldmately 898 nal lee! of S'1omfine O!We. 1,311 hal faet o!WetSto!IIOrive,230 lilealieetolWttSlone I'll!! and 120 lr18al 1111 ol WIii Stool COWi (d,e 'Sll9et~)- le) The melhod Ill ~ agaillSI p!Ojl&rty will',ll !he Improvement ll!$trlct lhal be equdy P8( "31 against Ill! lalswihrtlhe ~OWlfflMlt Oi&trict Slcllon 2. The Cl<Mnlno Body hereby d&claies lha1 1116 lmprMrnBOS d8scrlJed il lhis ResoUion 811 llllC8ISlr)', and aulhorlns tl1lrn ID be made In 8COOldarw::e llih Ille Pelllio'1 9111 1he lind,lgs set f0!'lh 11 1t1tS ~andfunher ~ tie ~ ol 8SS8$Sl1lllft8 and the lssulrol of bondll l!terelol (upon the smisfadioo of certain candllioos 11111 101th in the J>M(opment,l,g4wllllntde6critled ~ S8dlln 4 of IIJs Resotutioo) all 118COO!dance wi111 K.S.A. 12-6a01 PETITION 4411 City Clerk's Office Flted TO THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS: We, the undersigned, owners of record of property located within the City of Salina, Kansas (the "City") and being the owners of 100% of the area liable for assessment set forth below, do hereby respectively request that the Governing Body of the City create and designate an improvement district for the purpose of making certain improvements in the manner provided by K.S.A. 12-6a01, et seq, specifically K.S.A. 12-6a04(c). 1. The general nature of the proposed improvements are as follows: The excavation, sidewalk ramps, pavement and grading for approximately 2,085 lineal feet of a ten foot wide concrete multi- modal trail along Markley Road (the "Improvements"). 2. The estimated or probable cost of the Improvementa is: One hundred sixty-five thousand five hundred sixty-eight dollars and ninety-five cents ($165,568.95). 3. The extent of the proposed improvement district to be useued is: Magnolia Hills Estates Addition No. 2 Block 1, Lots 1 through 4, Block 2, Lots 1 through 4, Block 3, Lots 1 through 14, Block 4, Lot 1, Block 5, Lots J through 9, Block 6, Lots I through 3, Block 7, Lots 1 through 9, Block 8, Lot 1, all in Magnolia Hills Estates Addition No. 2 to the City of Salina, Saline County, Kansas. 4. The proposed method of assessment shall be: Each platted lot in the Improvement District shall be assessed equally per lot for costs of the Improvements to be assessed to the Improvement District. S. The proposed apportionment of cost between the Improvement District and the City at Large ls: 16.1 % of the cost of the Improvements shall be assessed to the Improvement District and 83.9% of the cost of the Improvements shall be paid by the city at large. This Petition is submitted pursuant to K.S.A. 12-6a04(c). In accordance with such section, the signers of the Petition acknowledge the following: (a) The signers of this Petition are the owners of 100% of the property or properties proposed to be included in the Improvement District. (b) The proposed Improvement District does not include all properties which may be deemed to benefit from the Improvements. The signers of this Petition further request that the Improvements be made without notice and hearing as required by K.S.A. 12-6a04(a). NAMES MAY NOT BE WITHDRAWN FROM THE PETITION BY THE SIGNERS THEREOF AFTER THE GOVERNING BODY COMMENCES CONSIDERATION OF THE PETffiON OR LATER THAN SEVEN (7) DAYS AFTER Fll.JNG OF THE PETITION WITH THE CITY CLERK, WHICHEVER OCCURS FIRST. Each signer of this Petition further certifies', under oath, that: ( c) The petitioner and its principals do not have a financial interest in any real estate located in the city which is subject to delinquent special assessments or ad valorem taxes as of the date of the petition; ( d) The petitioner and its principals do not have a financial interest in any real estate located in the State of Kansas on which special assessments or ad valorem taxes were delinquent for a period of more than one year during the five-year period immediately preceding the date of the petition; ( e) The petitioner and its principals are not in breach of any outstanding contractual obligations owed to the city as of the date of the petition; and (f) The petitioner and its principals have not been convicted of a felony financial crime, including but not limited to fraud or embezzlement, during the five-year period immediately preceding the date of the petition. 1 These certifications are only requjred to be made by petitioners for special assessment financing in new developments. 2 Kelly R. Dunn, President LEGAL DESCRIPTION OF PROPERTY OWNED WITBJN THE PROPOSED IMPROVEMENT DISTRICT: Block 2, Lots 2 through 4; Block 3, Lots 4 through 6, 8 though 14; Block 5, Lots 2 through 9; Block 6, Lots 1 through 3; Block 7, Lots 1 through 9; Block 8, Lot 1, all in Magnolia mus Estates Addition No. 2 to the City of Salina, Saline County, Kansas. STATE OF KANSAS ) ) SALINE COUNTY ) ' ;, I, the undersigned Notary Public, hereby certify that the signature appearing above is genuine and that this document was signed before me on this to-t""day of )u "-e.. , 2021. IL DAN STACK ~ Notary Public -State of Kansas Mr Ap_ t. Expires Decamber Jdi-9 Notary Public \Xi n s:\-/l (.,\{ My appointment expires: ~ 3 LEGAL DESCRIPTION OF PROPERTY OWNED WITHIN THE PROPOSED IMPROVEMENT DISTRICT: Block 1, Lots 1 and 4; Block 3, Lots 3, 7, and 14; Block 4, Lot l; Block S, Lot 1, all in Magnolia Bills Estates Addition No. 2 to the City of Salina, Saline County, Kansas. STATE OF KANSAS ) ) SALINE COUNTY ) I, the undersigned Notary Public, hereby certify that the sig1,1ature appearing above is genuine and that this document was signed before me on this \otn day of ~ Ill\ ,e_ 1 2021, ~. DAN STACK ~ Nolaiy Public -State of Kansas My Appl. Expires DecemberJ!I, ,0:.) My appointment expires: Notary Public tn n Stael< 4 JC BUILDERS, INC. LEGAL DESCRIPTION OF PROPERTY OWNED WITHIN THE PROPOSED IMPROVEMENT DISTRICT: Block 1, Lots 2 and 3; Block 3, Lots 1 and 2, all in Magnolia fills Estates Addition No. 2 to the City of Salina, Saline County, Kansas. STATE OF KANSAS ) ) SALINE COUNTY ) I, the undersigned Notary Public, hereby certify that the signature appearing above is g~nuine and that this document was signed before me on this :Z day of J \>.ne.. . 2021. My appointment expires: 5 JEFFRY & LINDA RITIEL LEGAL DESCRIPTION OF PROPERTY OWNED WITHIN THE PROPOSED IMPROVEMENT DISTRICT: Block 2, Lot 1, Magnolia HiDs Estates Addition No. 2 to the Cify of Salina, Saline County, Kansas. STATE OF KANSAS ) ) SALINE COUNlY ) I, the undenigned Notary Public, hereby certify that tbe signature appearing above is genuine and that this document was signed before me on this I ft f1'day of )L\De , 2021 •..• ·,, . A. DANSTAOK E,lliP Notary Publ ·· My Appt. Expires D \~.~ i · My appointment expiresf !. .'J ,1. .. 7.. ~-ioi.?,\~:L {}; Notary Public \}l Y\ S-\-ac. K • ••••• , ...... -.JO 6 JEFFRY & LINDA RJTTEL Linda Rittel LEGAL DESCRIPTION OF PROPERTY OWNED WITHIN THE PROPOSED IMPROVEMENT DISTRICT: Block 2, Lot 1, Magnolia Hills Estates Addition No. 2 to the City of Salina, Saline County, Kansas. STATEOFKANSAS ) ) SALINE COUNTY ) I, the undersigned Notary Public, hereby certify that the signature appearing above. is genuine and that this document was signed before me on this eo"': day of ~ L ,2021. A • STEFANIE R. GOODMAN ~ Notary Publlc -State of Kansas My Appl. Expires u,•/S-l.'i' My appointment expires: ~-Ii -;lS' 6 2 a. w .. C t ;; J CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS June 14, 2021 4:00p.m. The City Commission convened at 2:00 p.m. in Room 107, City-County Building, for the study session which included the Lower Smoky Hill Water Supply Access District Meeting and a 2022 Budget Overview. Mayor Hodges asked the Clerk for verification that notice had been sent for today's City Commission meeting. The Clerk replied yes. The Regular Meeting of the Board of Commissioners was called to order at 4:00 p.m. in Room 107, City-County Building. Roll call was taken followed by recognition of Flag Day, the Pledge of Allegiance and a moment of silence. Those present and comprising a quorum: Mayor Melissa Rose Hodges (presiding), Commissioners Trent W. Davis, M.D., Michael L. Hoppock, Aaron Peck and Karl Ryan. Also present: Michael Schrage, City Manager; Jacob Wood, Deputy Oty Manager; Greg Bengtson, City Attorney; and, JoVonna A. Rutherford, City Clerk AWARDS AND PROCLAMATIONS None. CITIZENS FORUM Norman Mannel, Salina, Kansas, provided thoughts on the United States flag. Mike Mattek, Gypsum, Kansas, declared his support of Salina Media Connection and stated it was a great facility to produce content. Thad Beach, Salina, Kansas, also declared his support of Salina Media Connection, indicated it was a valuable resource that a lot of communities do not have and was hopeful it would be supported. Isaiah Marcotte, Salina, Kansas, an independent film maker, provided his thoughts in support of Salina Media Connection and noted he started out young as a volunteer and it served as a great educational experience for him. Lanay Meier, Salina, Kansas, voiced her support of Salina Media Connection, stated the importance it has served in her life and the need to have more information made available. Brenda Gutierrez, Salina Area United Way, voiced further support of Salina Media Connection and indicated it had provided her the opportunity to interview non-profit businesses in Salina and information had reached the community. Mayor Hodges thanked the citizens for their comments and suggested anticipation of a proposal to be received from Salina Media Connection. PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME None. Page 1 CONSENT AGENDA (6.1) Approve the minutes of June 7, 2021. (6.2) Authorize the City Manager to execu~e a Smoky Hill River Festival Sound Provider Agreement Moved by Com.missioner Hoppock, seconded by Com.missioner Ryan, to approve items 6.1 and 6.2 of the consent agenda as presented. Aye: (5) Nay: (0). Motion carried. ADMINISTRATION (7.1) Approve Resolution No. 21-7966 authorizing the City Manager to sign a Master Equity Lease Agreement and Service Agreement with Enterprise Fleet Management Jacob Wood, Deputy City Manager, explained the request, fiscal impact and action options. Mr. Wood stated a representative of Enterprise was present to answer any questions. A discussion ensued related to condition, insurance, warranty and routine maintenance of leased vehicles. 21-0155 Moved by Commissioner Ryan, seconded by Commissioner Davis, to approve Resolution No. 21- 7966 authorizing the City Manager to sign a Master Equity Lease Agreement and Service Agreement with Enterprise Fleet Management. Aye: (5) Nay: (0) Motion carried. (7.2) Approve Resolution No. 21-7964 relating to a special improvement district for water, sanitary sewer, street, and drainage improvements in Wheatland Valley Addition and authorize the City Manager to execute an Improvement District Development Agreement between the City of Salina and Wheatland Development Co., Inc. Dan Stack, City Engineer, explained the request, fiscal impact, and action options. Mr. Stack confirmed a change to the financial figures on the blue sheet only. Commissioner Hoppock requested information from the developer related to home type. Dan Daley, Dan Daley Construction, Salina, Kansas, the developer, provided basic information related to the development. Mr. Daley explained that homes were required to be a minimum of 1250 square feet and would be priced in the middle range. He further explained that there was an abundance of high end homes but no selection for the middle range home and that market was being targeted. Upon further inquiry, Mr. Daley confirmed the horn.es could be built on a slab or basement and the development would be open to all builders and/ or individuals that desired to purchase a lot. 21-0156 Moved by Commissioner Davis, seconded by Commissioner Ryan, to approve Resolution No. 21- 7964 relating to a special improvement district for water, sanitary sewer, street, and drainage improvements in Wheatland Valley Addition and authorize the City Manager to execute an Improvement District Development Agreement between the City of Salina and Wheatland Development Co., Inc. Aye: (5) Nay: (0). Motion carried. Page 2 21-0157 (7.3) Approve Rcso]ution No. 21~957 relating to an establishment of a special improvement district for trail improvements along the east side of Markley Road required as a condition of the Magnolia Hills Estates Addition No. 2 plat approval and authorize the City Manager to execute an Improvement District Development Agreement between the City of Salina and Magnolia Hill Estates, Inc. Dan Stack, City Engineer, explained the request, fiscal impact and action options. A discussion followed related to the existing trail and the utilization of the existing rock for the sidewalk project. Further discussion followed related to the development process from which the phased assessments originated and improvement of the same for future projects as well as continuation of a sidewalk to Magnolia Road and allocation of funding. Moved by Commissioner Davis, seconded by Commissioner Ryan, to approve No. 21-7957 relatirtg to an establishment of a special improvement district for trail improvements along the east side of Markley Road required as a condition of the Magnolia Hills Estates Addition No. 2 plat approval and authorize the City Manager to execute an Improvement District Development Agreement between the City of Salina and Magnolia Hill Estates, Inc. Aye: (5) Nay: (0). Motion carried. DEVELOPMENT BUSINESS None. OTHER BUSINESS None. ADJOURNMENT 21..;0158 Moved by Commissioner Ryan, seconded by Commissioner Peck, that the regular meeting of the Board of City Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. The meeting adjourned at 4:51 p.m. Melissa Rose Hodges, Mayor [SEAL] Page 3 I llllllll llll 111111111111111111111111111111111111111111111111111111111111111111111111 ,/._---~~~·. REBECCA SEEMAN 1.·~·•": .. <•;-.REGISTER OF DEEDS SALINE COUNTY KANSAS Tl,.t.' · Ttl! •~ .J: I ?,_.-;;;,);)Book:1395 Page: 1125-1127 '~J;.·,-:.';.-,.-Receipt #: 135577 /\ _ 1 Recording Fee: $0.00 '"----•--Pages Recorded: 3 \...4'J Date Recorded: 6/16/202111:04:15 AM Resolution No. 21-7957 City of Salina, Kansas June 14, 2021 I hereby certify that the above and foregoing is a true and correct copy of Resolution No. 21-7957 that was adopted by the Governing Body of the City of Salina at their regular mee · ~ e 14, 2021. i (Published in the Salina Journal on -;:::T.;' 4 Q , LB RESOLUTION NUMBER21-7957 Boak: 1395 Page: 1126 • 2021) A RESOLUTION SETTING FORTH FINDINGS AND DETERMINATIONS OF THE GOVERNING BODY OF fflE CITY OF SALINA, KANSAS ON THE ADVISABILITY OF AND AUTHORIZING THE CONSTRUCTION OF CERTAIN IMPROVEMENTS PURSUANT TO K.S.A. 12-6a01 et seq. WHEREAS, a petition was filed with the City Clerk for the City of Salina, Kansas (the "City") on June M_, 2021, proposing certain improvements pursuant to K.S.A. 12-6a01 et seq. (the "Petition"); and WHEREAS, the Petition sets forth: (a) the general nature of the proposed improvements; (b) the estimated or probable cost of the proposed improvements; {c) the extent of the proposed improvement district to be assessed for the cost of the proposed improvements; (d) the proposed method of assessment; ( e) the proposed apportionment of the cost between the improvement district and the City at large; (t) a request that such improvements be made without notice and hearing as required by KS.A. l 2-6a04(a); and (g) tile statement that the Petition was submitted under subsection (c) ofK.S.A. 12 .. 6804; and WHEREAS, the owners of record of I 00% the property liable to be assessed under the Petition have signed the Petition; and WHEREAS, no signatures have been withdrawn from the petition before the Governing Body began consideration of the Petition; and WHEREAS, K.S.A. J 2-6a04 provides that the Governing Body may authorize and order public improvements without notice and hearing after a sufficient petition has been filed; and WHEREAS, the Governing Body has reviewed and considered the Preliminary Engineering Estimate and Feasibility Report prepared by the City Engineer and agrees with the conclusions set forth therein. NOW fflEREFO:RE, BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS, AS FOLl.OWS: Section 1. The Governing Body hereby finds that the Petition is sufficient, and further finds and detennines that it is necessmy and advisable to make the following improvements: (a) The nature of the improvements are as follows: The excavation, sidewalk ramps, pavement and grading for approximately 2,085 lineal feet of a ten foot wide concrete multi-modal trail along Markley Road (the "Improvements"). (b) The estimated cost of the Improvements is: One hundred sixty-five thousand five hundred sixty-eight dollars and ninety-five cents ($165,568.95). Book: 1395 Pagie: 1127 (c) The boundaries of the improvement district to be assessed are: (d) Ma,e.nolia Hills Estates Addition .No. 2 Block I, Lots l through 4, Block 2, Lots J through 41 Block 3, Lots 1 through 14, Block 4, Lot I, Block 5, Lots I through 9, Block 6, Lots 1 through 3, Block 7, LQts 1 through 9, Block 8, Lot 1, all in Magnolia Hills Estates Addition No. 2 to the City of Salina, Saline County, Kansas. The apportionment of cost between the Improvement District and the city at large is: J 6.1 % of the cost of the Improvements shall be assessed to the Improvement District and 83.9% of the cost of the Improvements shall be paid by the city at large. ( e) The method of assessment against property within the Improvement District shall be: Each platted lot in the Improvement District shall be assessed equally per lot for costs of the Improvements to be assessed to the 1mprovement District. Section 2. The Governing Body hereby declares that the Improvements described in this Resolution are necessary, and authorizes them to be made in accordance with the Petition and the findings set forth in this Resolution, and further authori:res the levying of assessments and the issuance of bonds therefor (upon the satisfaction of certain conditions set forth in the Development Agreement described in Section S of this Resolution), all in accordance with K.S.A. 12"'6a01 et seq. and specifically K.S.A. l2•6a04(c). Section 3. The City expects to make capital expenditures from and after the date of th.is Resolution in connection with the Improvements described herein, and intends to reimburse itself for such expenditures with the proceeds of one or more series of general obligation bonds and temporary notes of the City in the maximum principal amount of$165,S68.9S. Section 4. That certain Improvement District Development Agreement by and between the City and Magnolia Hills, Inc. is hereby approved in substantially the form presented to the governing body on this date. The Mayor is authorix.ed to execute the Development Agreement on behalf of the City, and the Mayor, Clerk and other City staff are authorized to take such further actions as necessary to carry out the transactions contemplated thereby. Section 5. The City Clerk shall file a certified copy of this Resolution with the Register of Deeds of Saline County, Kansas. · Section 6, city newspaper. This Resolution shall take effect after its passage and publication once in the official \ ADOPTED AND PASSED this 14th day of June, 2021 2 Publisher's Affidavit I, -~D_e_b_b-i_e~N~e~ls~o .. n.._ ___ , being duly sworn declare that I am a 1 egal Coordinator of THE SAUNA JOURNAL, a daily newspaper published at Salina, Saline County, Kansas, and of general circulation in said county, which newspaper has been admitted to the mails as second class matter in said county, and continuously and uninterruptedly published for five consecutive years prior to first publication of attached notice, and that the Resolution No. 21-7957 Notice has been coJTectly published in the entire issue of said newspaper one time, publication being given in the issue of June 18, 2021 ~Q 'stv~Jo M'3;, ~ Subscribed and sworn to before me, this day of A.D.20 1.L Notary Public Printer's Fee $390.00 A. CHRISTY FINK ~ Notary Public • State of Kantu My Appt. Expires ~-;i -. . (Published itl lhe Sali/la Journal June 18, 2021) RESOWtlQNNUMllER I ) Th ' ' Sec~on ti. This Resolufloo c • e boumla~es ~I ttie !IIIR lake effed alter its passage , 21:Zill 1111f)!0',~8tncitobe .,.,, , ... ,.... ....., 1 ... ,.,..1 assesseo~rd' ., .. p .. ,.....,n .. -n ... o.,,.... A ReSOLUTION SETTitlG FORTH FINDINGS ANO , DETERMINATIONS OF THE GOVERNING BODY OF THE CITY OF SAUNA., KANSAS ON THE AOl'ISABILITY OF AND AUTHORIZING TIE CONSTRUCTION OF CEIITAIN IMPROVEMENT$ l'URSUANT TO K.S.A.12-$a01 el seq. ·, •• < .: tilt newspapgr ..• Magnolla. Hjlls Estll!il . : AbOPTED . ANO PASSED Alll!!tt2~ lh!s 141h,day of June, .2021 WHEREAS. a potiUon was tiled llilh the Oily Clerk for the Cay of Salina, Kansas (lhe 'City') on June 14, 2021. proposing certain improvements p111SU811t to K.S.A, 12-6801 el seq. {Ille 'Pelifion") and WHEREAS. lh6 Pelilion sels . 1611h. (a) the general natura ot the proposed improY911lentS; (b) • •ltA estimaled or probable GOS! of the proposed implO'lements, (c) Ille Ulenl ol lhe proposed improvement district to be asse63ed hr the cost ol the propoeed improvement,. (d) the proposed method of ,me$$ment; M lhe propnsed epportrOM1911f ~ the eos1 between thP Improvement d151ikl and lhe Cit; at large: IQ a raquesl tllal&UCh tmptovements be made'Mlhout nO!icaa11d hearing a& requireo!Jy K S.A.12•6a04(a); and (g) the statement that !he Petition was ellbnlitted unffl subsect~ Blook l, Lois 1 lllr~n 4, Bitlk 2, LOls 1 lhrougn 4, Block 3, I.els 1 through 14,Slock4, Lo11, 81ock5, t:Dl8 I lhrough 9, ~ 8, 1.o1s 1,l!mlugh 3. Block 7. l01s ; lhrough 9. Block 8, lOl 1. all ill Magnolia ¼Ills Estaies Addttion No t lo the Cily al Salina, Saline Coonly, Kansas. (d) ThP apportionment of cost between the trq,rovement Oistilct a1d the city at Jerge is 16.1% of tne cost of the lll"f)l'Ollel!l8nfs shall be assessed tc, the l1!"4lrovement Districi and 83 ~•,;, of the cost of the Improvements Sha~ be paid by the city atla,ge, 1e) Tne method of essessmen1 agamst prnperty Within lhe llfllrovement Oistricl shalt be: (C) of K,S.A. 12-6a04· Blld Eacll planed lot in !he WHEREAS, the ownelS QI I~ District reoord of 100% the property 1~ble snail be assessed to be 88$98.S&d under lhe Pel~lon equaHy per lot for costs have signed Ille PebtiOII; and of the lmpnl'/8menlS WHEREAS, no slgnalUlllS lo ba assessed to the tiSVI' been Mlhclrawn llom lhe 1!1'J(ovement Disl~ petition b8lore the G<we~ . · Body began consideration of Iha Se~tlon 2, The Govemrng Pe!ilion• and Body hernby declam lhat the WIIEREAS, K:S,A. 12·6804 l~ements d89Clibed in this provides !hat the GQvemin9 Body ~uon are necessary, &l1d may authorize and order public a,!lhonzes them IO be made m lmpwvements llittloul IJQ!IGe an(J . ,ordance lWllh tire PelHt()fJ hearing after a sufficient petillon lhe findlllgs srt fonh in 1his has been Hied· and ,;iutioo, arnJ further autt\Qrizas WHEREAS, !he Gavem1ng lewy!ng al assessments Bod)' has raviawsd and considered the l$$U8nce of bonds the l'leimlnary Engmring lfur (upoo Ille satisfilClfoll Eslimate and Feasibility Report certall! conditions $Ill fortl! preparM by the Giy Engines• and 1& Development Ag)~ agri;es lllt~ the conclusions set · ihed rn Seelron 5 cl this lonh1herain. ,· ""°'1). aM in acoordance NOW THEREFORE, BE IT , , •,.'.s;A. 12-6a01 et seq. and RESOLVEDBYTHSGOVlANING .:allyl<,S.A 12-6a04(c), BODY OF THE CITY OF SAUNA, ~n 3. The Crty expeals KANSAS, AS FOtLOWS: ·•,. llleke capilal expenditures Section I. The Goveming IIMn end aftel !he date of llils Body he111by finds Iha! 1he Petttioo ~sotuiion In connection with the JS suf!iciant. and turffler firm end l!Jpi1)'/111118flts deseribed herein, detemiines that tt Is nece~ and · • intends to reimll.urse ~ advisable lo make lhe follOlling ~ch erpendihrres wilh the rmprovem&nts; Ids al one or more series ieral otiRgstion bonds an~ ,11ary notes of !he Chy in lh& 100!11 principal alll0IJII d ··,568.95, (a) TlMi nature of the lmprovemenl$ arn as follows: The -•ation, siflewalk ramps, pavement and grading for appro~y 2,085 lineal feel ot a tan foot wide CQIIC!ete mul!l,moda! lrall aloog Markley Raed (the 'hnpromentsj. Section 4. Thal certain · ' ·rovtlMIJI Ols!rici Development •.,·· ·iement by and between Ille , ,uid Magnolia Hills, lnr.: I$ ',:.Wf apprlMKI in substaQ!iaay. ·lonn presented to th&. ,vemlnjj body on ~ date. Th,s • • is au!horized ll)tX&Qlla 1118 .;evel.;c•11c:•1 'greementonbelujff ol lhe s,11, ar.d the Mayor, G.8111' (b) Theestimatedcostofthe . ,andotlsjTCilyS!affareaU!llo~ lffl)f'OV811lMIS is· lo tSke slld1 funher agjollt One hunrlred sidy.five lhousand five hunared , slxty•Blght dollars and ninety.five eef!lS . {$165,588.95). a& noc8S$4ry 1o CSII)' out the lrwactlollS conterrpiated theflb)'. Seel/on 6. The City Clef,: shaff file a certified copy ol'lhls .Aesol~ Wilh the Regial\r al Deeds of S.att!l9 Cll\/llly, ~' Atte,t: Me11ssaRose Hodg&s, Mayor JoVoona A Rutherlord, Oily Clerk (11) Commission Action# CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS February 11, 2002 4:00p.m, The City Commission convened at 3:30 p.m. for a Citizen Open Forum. The Regular Meeting of the Board of Commissioners was called to order at 4:00 p.m. in Room 107, City-County Building. A roll call was taken followed by the Pledge of Allegiance and a moment of silence. There were present: Mayor Kristin M. Seaton, Chairman presiding Commissioner Deborah P. Divine Commissioner Don Heath Commissioner Alan E. Jilka Commissioner Monte D. Shadwick comprising a quorum of the Board, also present: Absent: Greg Bengtson, City Attorney Dennis M. Kissinger, City Manager Lieu Ann Nicola, City Clerk None. CITIZEN FORUM None. AW ARDS -PROCLAMATIONS ( 4.1) The week of February 17th through the 23rd as ''National Engineers Week" in the City of Salina. The proclamation was read by Rob Mahan, President of the Smoky Valley Chapter of Kansas Society of Professional Engineers and civil engineer with Bucher, Willis and Ratliff Corporation. PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME ( 5 .1) Public hearing on Application #CU0l -11, filed by Rusty Leister, requesting a Conditional Use Permit to allow a drinking establishment in the C-4 District on property addressed as 117 N. Santa Fe, legally described as the South half of Lot 100 on Santa Fe Avenue in the Original Town of Salina The public hearing was opened. Commissioner Shadwick excused himself from the meeting due to conflict of interest. Dean Andrew, Director of Planning and Community Development, explained the request, City Commission alternatives, events taken place to date, and the Planning Commission's recommendation. A discussion followed with Commissioner Divine, City Manager Dennis Kissinger, and Mr. Andrew regarding conditions placed on the property and safety concerns. Ken Wasserman, 213 S. Santa Fe, explained modifications made to the plans and requested the application be returned to the Planning Commission for further consideration. 02-3181 Moved by Commissioner Divine, seconded by Commissioner Heath, to return Application #CU0 1-11 to the Planning Commission for further consideration and to be more specific on conditions placed. Aye: (4). Nay: (0). Abstained: (1) Shadwick. Motion carried. Commission Action# Mr. Kissinger responded to Commissioner Jilka's question regarding the Conditional Use Permit process. Commissioner Shadwick returned to the meeting. CONSENT AGENDA (6.1) Approve the minutes ofFebruary 4, 2002. (6.2) Resolution No. 02-5812 authorizing the public sale of approximately $4,865,000 principal amount General Obligation Temporary Notes, Series 2002-1. (6.3) Approval of the 2002 Parks and Recreation Capital Improvement Program. Steve Snyder, Director of Parks and Recreation, summarized the Capital Improvement Program. 02-3182 Moved by Commissioner Divine, seconded by Commissioner Shadwick, to approve the consent agenda as presented. Aye: (5). Nay: (0). Motion carried. DEVELOPMENT BUSINESS None. ADMINISTRATION (8.1) Second reading Ordinance No. 02-10072 vacating Reserve "A" in the Riffel Addition. Mayor Seaton clarified that Ordinance No. 02-10072 was passed on first reading on February 4, 2002, no comments have been received, and the property owner signed and recorded an affidavit with the Register of Deeds acknowledging and consenting to the loss of the public street access. 02-3183 Moved by Commissioner Jilka, seconded by Commissioner Shadwick, to adopt Ordinance No. 02-10072 on second reading. A roll call vote was taken. Aye: ( 5) Divine, Heath, Jilka, Shadwick, Seaton. Nay: (0). Motion carried. (8 .2) First reading Ordinance No. 02-10071 designating certain streets as main traflicways and designating certain additional streets as trafficway connections. Dennis Kissinger, City Manager, summarized the ordinance and changes. Mr. Kissinger also responded to Commissioner Divine's question regarding the removal of Bishop and College Streets. 02-3184 Moved by Commissioner Shadwick, seconded by Commissioner Divine, fo pass Ordinance No. 01-10071 on first reading. Aye: (5). Nay: (0). Motion carried. (8.3) Resolution No. 02-5811 initiating proceedings for main trafficway and main trafficway connection improvements involving North Ohio Street and related streets. Rodney Franz, Director of Finance and Administration, explained the proceedings. -02-3185 Moved by Commissioner Heath, seconded by Commissioner Jilka, to adopt Resolution No. 02-5811. Aye: (5). Nay: (0). Motion carried. (8.4) City Commission direction to staff regarding the restaurant smoking ban issue. Dennis Kissinger, City Manager, summarized the request and City Commission options. He also responded to Commissioner Shadwick's question regarding smoking on public property. LOIIUillSSIOll Action# Commissioner Shadwick thanked the coalition for their work, but expressed opposition toward considering a smoke-free ordinance. Also thanking the coalition, each remaining Commissioner gave their reasons for staff's continued work on the matter. 02-3186 Moved by Commissioner Divine, seconded by Commissioner Heath, to direct City Staff to complete the legal and management research necessary to prepare an issues and options report and draft a smoke-free restaurant ordinance for further discussion and consideration. Aye: (4). Nay: (1) Shadwick. Motion carried. (8.5) Preliminary consideration of two separate property transactions involving surplus city property at Belmont and Ohio, and a parking lot property at Santa Fe and Ash in downtown Salina. Dennis Kissinger, City Manager, explained the transactions. Mr. Kissinger and Shawn O'Leary, Director of Engineering and General Services, responded to Commissioner Heath's and Commissioner Divine's questions regarding property ownership and estimated cost oflighting. 02-3187 Moved by Commissioner Divine, seconded by Commissioner Jilka, to approve both transactions in concept, and authorize the City Manager and City Attorney to negotiate appropriate agreements with Sunflower Bank and the Chamber of Commerce. (8.6) Approve the remaining 2002 Vehicle and Equipment, Phase 1 purchases. Jason Gage, Assistant City Manager, explained the purchases. 02-3188 Moved by Commissioner Shadwick, seconded by Commissioner Divine, to approve the purchase of the remaining 2002 Vehicle and Equipment, Phase 1 purchases. Aye: (5). Nay: (0). Motion carried. 02-3189 (8.7) Moved by Commissioner Heath, seconded by Commissioner Jilka, to recess into executive session for 30 minutes for preliminary discussion relating to the acquisition of real estate for the reason that public discussion of the matter could jeopardize the ability of the City to acquire the real estate; and reconvene at 5:32 p.m. Aye: (5). Nay: (0). Motion carried. The City Commission recessed into executive session at 5:02 p.m. and reconvened at 5:32 p.m. 02-3190 Moved by Commissioner Jilka, seconded by Commissioner Divine, that the City Commission reconvene into the current executive session for an additional 15 minutes. Aye: (5). Nay: (0). Motion carried. The City Commission recessed into executive session at 5:32 p.m. and reconvened at 5:47 p.m. No action was taken. OTHER BUSINESS None. ADJOURNMENT 02-3191 Moved by Commissioner Shadwick, seconded by Commissioner Heath, that the Regular Meeting of the Board of Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. The meeting adjourned at 5:47 p.m. [SEAL] ATTEST: Lieu Ann Nicola, City Clerk Commission Action# CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS February 25, 2002 4:00p.m. The City Commission convened at 3:30 p.m. for a Citizen Open Forum. The City Commission also met in a Study Session after the regular meeting for a City/USD 305 Programs Briefing. The Regular Meeting of the Board of Commissioners was called to order at 4:00 p.m. in Room 107, City-County Building. A roll call was taken followed by the Pledge of Allegiance and a moment of silence. There were present: Mayor Kristin M. Seaton, Chairman presiding Commissioner Deborah P. Divine Commissioner Don Heath Commissioner Alan E. Jilka Commissioner Monte D. Shadwick comprising a quorum of the Board, also present: Absent: Greg Bengtson, City Attorney Dennis M. Kissinger, City Manager Lieu Ann Nicola, City Clerk None. CITIZEN FORUM None. AW ARDS -PROCLAMATIONS (4.1) The day of March 1, 2002 as "Read Across America" day in the City of Salina. The proclamation was read by Pat Breckunitch, Principal of Sacred Heart Grade School. PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME None. CONSENT AGENDA (6.1) Approve the minutes of February 11, 2002. (6.2) Resolution No. 02-5813 authorizing a license agreement with DVACK for construction and maintenance improvements in the public right-of-way on Walnut and Santa Fe Avenue, allowing the covered walkway and a sign to be mounted to the walkway structure. 02-3192 Moved by Commissioner Jilka, seconded by Commissioner Divine, to approve the consent agenda as presented. Aye: (5). Nay: (0). Motion carried. DEVELOPMENT BUSINESS None. ADMINISTRATION (8.1) Second reading Ordinance No. 02-10071 designating certain streets as main trafficways and designating certain additional streets as trafficway connections. Commission Action# Mayor Seaton clarified that Ordinance No. 02-10071 was passed on first reading on February 11, 2002 and no comments have been received. 02-3193 Moved by Commissioner Shadwick, seconded by Commissioner Jilka, to adopt Ordiance No. 02-10071 on second reading. A roll call vote was taken. Aye: (5) Divine, Heath, Jilka, Shadwick, Seaton. Nay: (0). Motion carried. (8.2) First reading Ordinance No. 02-10070 amending Chapter 39, Article IV and V of the Salina Code pertaining to trees and shrubs. Steve Snyder, Director of Parks and Recreation, explained the proposed changes. He also responded to Mayor Seaton's question regarding public education. A discussion followed with Commissioner Heath, Mayor Seaton, City Manager Dennis Kissinger, and Mr. Snyder regarding required permits and employee staffing. 02-3194 Moved by Commissioner Divine, seconded by Commissioner Heath, to pass Ordinance No. 02-10070 on first reading. Aye: (5). Nay: (0). Motion carried. (8.3) Resolution No. 02-5810 authorizing an Extension Agreement and Amendment No. Three to a contract with Salina Community Access Television extending the agreement until February 3, 2007. Dennis Kissinger, City Manager, explained the existing agreement and prior amendments. Commissioner Divine complimented Salina Community Access on their efforts. 02-3195 Moved by Commissioner Heath, seconded by Commissioner Divine, to adopt Resolution No. 02-5810. Aye: (5). Nay: (0). Motion carried. (8.4) Resolution No. 02-5814 appointing members to various boards and commissions. Mayor Seaton read the appointments. 02-3196 Moved by Commissioner Shadwick, seconded by Commissioner Jilka, to adopt Resolution No. 02-5814. Aye: (5). Nay: (0). Motion carried. (8.5) Request from the North Salina Pastors Association (N.S.P.A.) for a waiver of the regular rental charges at the Bicentennial Center for a 24-hour Prayer Vigil sponsored by the N.S.P.A. Dennis Kissinger, City Manager, explained the request, the Bicentennial Center's intended use, and the rental agreement charge. Greg Bengtson, City Attorney, explained the legal issue raised by the request. Mr. Kissinger responded to Mayor Seaton's question regarding communications with the requestor. Jeanette Curtis, North Salina Pastors Association, explained reasons to grant the request. A discussion followed between Commissioner Shadwick and Mr. Kissinger regarding the waiver of fees for the city-wide event for honoring police officers and fire fighters. 02-3197 Moved by Commissioner Shadwick, seconded by Commissioner Jilka, to deny the fee waiver request for legal reasons. Aye: (5). Nay: (0). Motion carried. OTHER BUSINESS None. Commission Action# ADJOURNMENT 02-3198 Moved by Commissioner Jilka, seconded by Commissioner Divine, that the Regular Meeting of the Board of Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. The meeting adjourned at 4:32 p.m. [SEAL] ATTEST: Lieu Ann Nicola, City Clerk I: (Published in the Salina Ioumal on Febnwy , 2002) -~ ORDINANCE NUMBER. 0?-10071 I AN ORDINANCE DESIGNATING CERTAIN STREETS AS MAIN TRAFJICWAYS PVRSUANT TO K.S.4. 12-Q!S .AND DFSIGNATING CERTAIN , ADDMONAL S'i'REE'm AS TRIJ7FICWAY CONNECl1ONS PURSUANr TO K.S.A.12-686, I. AND REPEALING ORDINANCE NUMBER. 93-9562. i BE IT ORDAINED by the Govcming Body of the City of Salina, Kaosu: •· &sgtog J. The primmy fimction of the stn:ct5 dcscn"bcd in Ibis sed:ion is hc::m.,y found to 1-be the movement of lhrough traffic between arus of concentrated activity within the city or between 11 suc:h mas within the city end ltaffic facilities 011t1ide the c:ity pcrfmming the function of a major Ii trafficway, based upon the following: l I I A. B. C. D. E. ASH S'1REET lE a major collector Etn:cl nmnmJ cast from Broadway Boulev&rd IO Ohio Street and is a priacipal strcc:t cmyir,g e45t/wc.tt traffic through the CClltcr portion of the City. BELMONT BOUUN ARD is a major llfaial meet rumimg i:ovthwt:st from Ohio Stm:t to Ninth Street md is a principal meet cll:ITYiDg soulhwestfoonheut traffic through the southeast portion of lhe City. BROADWAY BOULEVARD is a major arterial s1rcet running west and soulh fi'om North NiJJth Skeet and Pacific Avenue and ia a principal £trcc:t cmying .northfmuth traffic on the west side oflbe City. CJINTENNIAL ROAD is a major aner:ial ~ runaiug north from Walerwell Road to West Cmvford Avenue and is a principal stn:ct wryingnoi1h/south tnifiic lhrougb 1he west pcntjon oflhe City. CLOUD snunrr is a major collector smct naming cast from Centennial Rozel to !hcl!ood levee ll)'st&m casl ofObio S~ 11.Dd b a principal ~ canying east/west tmflic through the soutb-«ntral portion ofche City, F. OOUNJ'RY CLUB ROAD is a major mtcria1 stxm nmni:og west m,m the cast city ltmll line to Marymo1m1 Road md ii a principal £trcc:t carrying east/west traffic through the east~ portion of'the City. G. CRAWFORD AVBNUB is a major 1111cria1 smet I\IDlllll8 cast hm one of the z.135 intcn:hanges info the City, lo the east City limits 1111d is a principal meet carrying c:ast/wesl traffic thmugh 'the cen!ral portion of the City, H. IRON AVENUE is e major mti:rlal ni:ct am,-iDg lndlic bctMco tbe CityG cc:n!ral and casmn comm.cn::ial districtG and .i! a principal stn:et can)'ing cast/w!:St traffic (llrough then~ portion oflbe City. L MAGNOUA ROAD is a major mtcru1 meet nnmiQg wt 1ivm the west city limits to the cast city limits and is a ptincipal meet canyinJ iWllM:st tramc 1hrougbthcsouth portion oft.he City. J. MA1UO.EY ROAD is a major collector street nnmh,g soulh from Crawfcml to Magnolia Road and is a priDcjpaJ stn:et cmying northfaouth traffic through the east portion of the CitY, K. MARYMOUNT ROAD is a major fll'tcrial ~ rumii:ng narth fR:im Cloud Sti=t lo Counlry Club Road and is a principal meet cmymg northfsouth traffic through the ea.,t portion oftbe City. L. NINTH STIU!ET is a major arterial smct from the noltb city limits, north of Intmtatc 70 lo the south city limita near WBlffl'n:11 Road I ---~r~ r ll II l 1 I I. jl --~ -~ . ..._ ... _ canying traffic bcnvtcn the City's nonh central and soulhcm comme:cial districts IIJd is a principal street cmyi:ag nonhlsouth traffic throuJh the CClltral portion of the City. M. NORm !rl'REEr is a major mterial clreetnmnmg Jrom 1hc west city limits to the east city limits and is a principal strffl caaying east/west traffic through the north.portion of the City. N. OHIO snunrr is a major artciaJ cttcct nmniog south fimn one of the Tntmtatc 70 int=dumges to the south city limits md is the principal meet canying north/south traffic on the east-central lido of the City, o. PACIFIC A VENUE is a major arterial street NllDfng east &om N'snlh SIRct to the east city lilnits end is a principal str=t C8!T)'iDg castlwl:st baffle through the north portion of the City. P. RBPUBUC A VENUB is a major collector street nmning east fiom Ccih:lmial Road to the east city limit near the flood lcvcc l)'Stffll and i1 a principal s1mt cmying cut/west tnffic through the muttl portimi oftbcCity. Q. SANTA FB A VENUE ia a major artaial llfrm rwming north 6om Claflin to Olis and .is a principal ctrm canying nonhl10ulh traffic through the centnl portion of the City. R. SCHILLING ROAD is a major ■rtcrial strm Nmling west from Ohio Street to Amold Avenue in the Airport Industrial Ala and is a principal 5treet canying cas1/wcst traffic through lhc south portion of the City. s. SOUI'H: STR.BIIT is a IDljor oo!Jector s1rel!t Nmllng east from Btoad\VayBoulewrd to Founh Street and is a principal ltlffl cmying east/west traffic through the central portion of the City, T. STAT.B ~ is a llllljorartcrial 111rcet fUIIDll38 cast from IDtcnta!c 135 to 1hc central bwinca district and is a pdncipaJ ltnd ainying east/west tmlic through the north portion of the City. U. WATHR. WELL ROAD is a major artmial street rwmiag we&t fiom N'm1h Slrcet through the 1oulh mt of a miuor inctastrial na to Airport Road, and is • principal sir= CC'l')'Ulg east and west traffic behVtcm I major lnduslrial commercial end Intmtlfl: J35 in~. I I' Sec:tlpp 2, That Ash SIRice, Belmont Boulmnf,. Bmadway BGJlffl:ld. Cmtcnmal Raad. f Cloud Street,. Co1.1111Jy Club Road, Oawfunl Avenue, Iran Avenue, Magnolia Road, Markley Road, f. MmymOIJllt Road, Ninth Street. North Street, Ohio Stred, Pedfic Avenue, Rq,ublic Avaiue, Sanla Fe f 'I , Avmue, Scl,illing Road,, South Slreaf, State Street. IIUd Wm:r Well Road lll'CI hmby dcslpatod and j established as "main trafficways"' pumumt to K.S.A. 12-6115. , j Sfftlon 3, To pn,vidl! adeqiwo C01111ectiom with the Ohio Slreetmaln Crafficway m on!er . to relieve lra.flic e.ongection and mitigale tnffic safety Issues n:Iatcd to the ccminu:tion oflhc North I' Ohio Rallmad Overpw and rel.a!ed improvements it is necessary ta est.ahlis:h tlio Collowiag u j trafficway comiectiom. ; . A. VAN HORNB STREET -At and near its connection wilh North Ohio Street. B. YORK snuml'-At and near its connection with North Ohio Stn:et. C. UNNAMED FRONTAGE ROAD -To bci mtablisbecl on former North Ohio Snet right-of-way to COIJDect area street, wilh rt:aligned Nonh Oblo SlreeL f SmJop 4. That Onfinanr:c Number 93-9562 i1 herr:by repealed. ' I I - - -7 ~~-:---_:.:::-::..~ __ .· 11 ll Seeefoa 5. That thir ordinmcc sh.al!~ in full f'o~ and effect hm and after its adoption .h and publication 011cc in the official dry neMpapcr • . , 11 ' Ii ;; {SEALJ (, ATI'Bff: ~ I, Lic:u Ann Nic:c:111, City Clerk i I' I jl i Introduced: Fcbnwy 11. 2002 Passed: February 2.5, 2002 ( -I . ,.. _, Affidavit of. Publication Onl. ND. OZ.-100'1l l;ollowlng J1a1rueandcomictcorirof __________________________ _ logelher 11/llh proof DI publlc1t1ciri Of lhe NIM. ... . AFFIDAVIT 1, Kim Ncmw=od=---,belnD durr awom, declare thal I am the Adwertl,lng Manage, of THE SALINA JOURNAL. a dally newepaper p11bll1hed 11 Salln•, publlc1111on of 1t11dlecl nonce, anti that the atlechtd __,, Onl. No. 02-10071 .. I I I "' "' z D.. w "' -~ oi "' 1 :2 g a u CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS March 4, 2019 4:00p.m. The City Commission convened at 2:30 p.m. for Fire Department Performance Analysis at Fire Station No. 3 at 2633 Behnont and at 3:45 p.m. for Citizens Forum at City-County Building, Room 107. The Regular Meeting of the Board of Commissioners was called to order at 4:00 p.m. in Room 107, City-County Building. Roll call was taken followed by the Pledge of Allegiance and a moment of silence. Those present and comprising a quorum: Mayor Trent W. Davis, M.D. (presiding), Commissioners Joe Hay, Jr., Melissa Rose Hodges, Mike Hoppock, and Karl Ryan. Also present: Michael Schrage, City Manager; Greg Bengtson, City Attorney; and Shandi Wicks, City Clerk. AWARDS AND PROCLAMATIONS None. CmZENS FORUM Lisa Graham, 1310 E. North Street, provided information regarding a case of unequal treatment by Brad Nelson, Police Chief and Christina Trocheck, City Prosecutor. Michael Schrage, City Manager, stated he had reviewed the incidents with Chief Nelson and the documentation provided by Ms. Graham. He continued to state that staff was not able to come to same the conclusion as Ms. Graham. lv1ayor Davis asked if there were certain remedies that could be suggested to Ms. Graham or further action that could be taken. Greg Bengtson, City Attorney, stated he was not aware of any offhand. Mr. Schrage agreed. Ms. Graham continued to provide information on the incidents. Mayor Davis asked if Ms. Graham talking with the city prosecutor was an option. ~fr. Schrage stated he could try to facilitate that conversation. Commissioner Hodges provided her thoughts on the matter. Mayor Davis thanked Ms. Graham for coming to the commission and stated that Mr. Schrage would be in contact with her. Norman Manne!, Salina, provided his thoughts on the conduct of law enforcement, the need for additional training of the officers and provided information on an article in the newspaper relating to law enforcement. Michael Schrage, City Manager, asked Mr. Manne! if he could provide him with information on the date of the artide in the newspaper. PuBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME None. CONSE.'\'T AGE.t~DA (6.1) Approve the minutes of February 25, 2019. Pagel I I I .,, "' z .. w 19-0059 (6.2) (6.3) Approve Resolution No. 19-7681 appointing members to the Accessibility Advisory Board, Community Art and Design Advisory Committee and Tree Advisory Board. Approve Resolution No. 19-7680 authorizing the Mayor to execute a Vault Closure Agreement allowing for closure of an underground vault in the public right-of-way located at 144, 146 and 148 S. Santa Fe Avenue with the Boyd E. Smith Trust. (6.4) Award contract for the 2019 Chip Seal, Project No. 90019, to Circle C Paving and Construction, LLC of Goddard, Kansas, in the amount of $130,649.05, with a $9,350.95 contingency (7.1 %). Moved by Commissioner Hodges, seconded by Commissioner Hoppock, to approve the consent agenda as presented. Aye: (5). Nay: (0). Motion carried. ADMINISTRATION (7.1) Resolution No. 19-7683 authorizing the acceptance of a grant award from the Federal Edward Byrne Memorial Justice Assistance Grant Program as a sub-grantee of the State of Kansas under the Kansas Governor's Grants Program for upgrade of the Computer Aided Dispatch (CAD); authorizing the use of 911 Funds to assist in the funding for any remaining costs associated with the upgrade; and approving an amendment to the City's current agreement ,-vith Tyler Technologies, Inc. for the CAD upgrade. Wayne Pruitt, Communications Supervisor, explained the grant program, grant award, the agreement, fiscal impact and action options . . Commissioner Hodges complemented staff on their negotiation skills. Commissioner Hodges asked if the fire and EMS sofhvare would work with the CAD program. Mr. Pruitt stated the software purchase included the necessary components to allow the programs to work together. Commissioner Hay asked if there was annual maintenance of the system. Mr. Pruitt stated the cost of the annual maintenance was split out between the city and the county. Commissioner Hay asked if the software upgrade would benefit the backup system. Mr. Pruitt stated the backup computers would be upgraded as well. Mayor Davis asked if this item and the anticipated upgrade to the community v.'ide radio system were tied together. Mr. Pruitt stated the radio system and the CAD system were two separate systems. Commissioner Hoppock asked what else was paid out of the 911 funds. Mr. Pruitt stated there was an annual maintenance fee for sofn-vare from the State of Kansas, CAD, mobile bills, 24-hour voice recorder, and copy machine to name a few. Moved by Commissioner Hay, seconded by Commissioner Hodges, to adopt Resolution No. 19- 7683 authorizing the acceptance of a grant award from the Federal Edward Byrne Memorial Justice Assistance Grant Program as a sub-grantee of the State of Kansas under the Kansas Govemor's Grants Program for upgrade of the Computer Aided Dispatch (CAD}; authorizing the use of 911 Funds to assist in the funding for any remaining costs associated with the upgrade; and approving an amendment to the City's current agreement with Tyler Technologies, Inc. for the CAD upgrade amending the use of 911 funds in the amount not to exceed $33,220 in Section 1 and the current Page 2 I I I "' "' z ... w = .5 Ji -g ii :;; l agreement with Tyler Technologies the amount not to exceed $106,600 in Section 2. Aye: (5). Nay: (0). Motion carried. (7.2) Resolution No. 19-7677 authorizing and providing for the removal and replacement of the North Ninth Street Bridge and authorizing the issuance of Temporary Notes and/ or General Obligation Bonds of the City to pay the costs thereof. Debbie Pack, Director of Finance & Administration, explained the project, request, fiscal impact and action options. Commissioner Hoppock asked if the project was for both sides of the bridge or one side. Ms. Pack stated one side. Commissioner Hoppock asked for information on the point scale of the bridges and when would the bridge be not drivable. Dan Stack, City Engineer, stated once a bridge was opened it was automatically a 7 and could continue to downgrade. He continued to state once a bridge was downgraded to a 2 or lower, the bridge could be closed. Jim Kowach, Directqr of Public Works, stated a bridge listed as a 4 on the point system was safe to the public but was posted at 20 tons. Commissioner Hodges asked if a 20 ton load ,-vas equal to most semis. Mr. Kowach stated the truckers were aware of how the ton limit affected them. Commissioner Hodges asked if we get many permits for an oversize load on a bridge. Mr. Stack stated staff gets a half a dozen or less a year for different areas in town. Commissioner Hodges asked if preventative maintenance was performed on bridges prior to the need for replacement and what the typical life span was on a bridge. Mr. Stack stated most bridges were built with less load limits requirements in the 1930's to 1950's than today. He continued to state there were options for rehabilitation but it depended on the structure of the bridge. Michael Schrage, City Manager, stated the inspection schedule was a proactive step and staff had worked to determine if replacement of the bridge was the best option. Commissioner Hodges asked if the authorization was required to bond the project. Ms. Pack stated due to the ordinance we were able to designate the area as a main trafficway. Norman Mannel, Salina, provided his thoughts on the amount of weight a truck can hold. 19-0060 Moved by Commissioner Ryan, seconded by Commissioner Hay, to adopt Resolution No. 19-7677 authorizing and providing for the removal and replacement of the North Ninth Street Bridge and authorizing the issuance of Temporary Notes and/ or General Obligation Bonds of the City to pay the costs thereof. Aye: (5). Nay: (0). Motion carried. (7.3) Approve 2019 Vehicles & Equipment Purchases. Debbie Pack, Director of Finance & Administration, explained the bids received, fiscal impact and action options. Commissioner Hodges asked what was included in the total of up to $1,037,040 on the 2019 Sub-CIP sheet. Ms. Pack stated the items highlighted in yellow were moving forward; the items highlighted in green were the three (3) one ton units to be bid on March 15th• She further stated the 5 Ton dump truck would be moved to 2020 and the 6 foot mower would be rebid and the 10 foot mower and 300 gallon turf sprayer were under further review. Page 3 I I "' ., z a. w .. C: ~ Ill 1 :.! ~ a 0 Commissioner Hodges stated the sales tax fund balances and asked if there was some concern with the fund balance being under $750,000. Michael Schrage, City Manager, stated staff was mindful of the target fund balance and the agenda items coming before the City Commission. Commissioner Hodges asked where the 1 % increase in the sales tax fund came from. Ms. Pack stated it was just being conservative on items moving forward. Mr. Schrage stated staff's intent was to look at the most recent information and provide the most updated information when items were presented to the commission. Commissioner Hay asked if we were required to take the low bid. :t,,.1s. Pack stated we typically take the low bid unless it does not meet our specifications. Mayor Davis asked if there was a small percentage amount could the bid be kept local. Mr. Schrage stated we have not adopted a local preference policy. He further provided information from the purchasing policy relating to the bid award. Mayor Davis asked if the bids matched penny for penny what would happen. 1'.1r. Schrage stated it would be up to the Governing Body to determine what the outcome would be. Mayor Davis asked if a low bid did not meet specifications at what point ·would the bid be rejected instead of listed as not meeting specifications. Mr. Schrage stated there was an obligation to report all bids. He further stated the bids probably do not need to be listed as IO\v bidder on the spreadsheet. Mr. Schrage asked staff to provide information on the entire process of specifications for bidding of vehicles and equipment. Jim Teutsch, Operations Manager, provide detailed information on the specification and bidding process. Commissioner Hay provided his thoughts on selecting a local bid for the purchase of the Half Ton 4x4 _Crew Cab pickup. Commissioner Hoppock provided his thoughts on the bid selection. A conversation ensued behveen the City Commission regarding local bidder's preference. Norman Mannel, Salina, provided his thoughts on a local bidder's preference. Mr. Schrage stated he was aware of the incident Mr. Manne! ,vas referring to and staff had prepared the documentation to show all information available to give the City Commission the ability to make the best decision. 19-0061 Moved by Commissioner Hodges, seconded by Commissioner Hoppock, to approve the 2019 Vehicles and Equipment Plan as recommended, authorize staff to proceed with purchases and authorize the City Manager to sign contracts with selected vendors. Aye: (3). Nay: (0). Motion carried. (7.4) Award contract to paint the exterior of five slides at Kenwood Cove Aquatic Park. Jeff Hammond, Recreation Supervisor, explained the project, bids received, fiscal impact and action options. 1 19-0062 Moved by Commissioner Hoppock, seconded by Commissioner Hodges, to a,vard contract to Dale Cooper LLC dba Safe Slide to paint the exterior of five Kenwood Cove Slides in the amount of $68,800. Aye: (5). Nay: (0). Motion carried. DEVELOPMENT BUSINESS Page4 I I z C. w :!! -~ Ill i " :g j s u 1 19-0063 OTHER BUSINESS Commissioner Hodges asked if she could have confirmation on the status of the joint tipping fee agreement. Greg Bengtson, City Attorney, stated the exhibits were finalized to reflect the descriptions of the roads and were approved by engineering staff for both the City of Salina and Saline County. He continued to state a joint statement of the City Attorney and County Counselor was submitted to Judge Elliott, upon receipt, he replied that he had retired fully as a district court judge and was unable to sign off on the matter. He further stated that the County Counselor had a conversation with Judge Hickman that would allow Judge Hickman to be reassigned to the case. He further stated that the revised order would be resubmitted to Judge Hickman to review. Commissioner Hodges asked if the revision made any changes of the documents approved by both the Salina City Commission and Saline County Commission. Mr. Bengtson stated there \.Vere no modifications to the text and the exhibits were created and approved by both city and county staff. Commissioner Hodges asked what the timetable was to have the matter completed and behind us. l'vlr. Bengtson stated the joint petition had been filed with the agreement attached. He continued to state once Judge Hickman was assigned to the case, staff would re-file the order. He further stated he hoped it would be completed in the next ten (10) days. Commissioner Hodges thanked staff and Great Plains Manufacturing on the partnership to provide the community opportunity to seed and plant the prairie restoration areas at Indian Rock Park. Commissioner Hodges asked if a parks tour could be scheduled. Michael Schrage, City Manager, stated staff was working to put together a tour schedule. J\1r. Schrage provided an update on the concrete of the fieldhouse floor, the downtown streetscape project, the Alley Entertainment Center, downtown hotel, the Police Training Center and the county expo center agreement. Commissioner Hoppock asked if we were still dealing with horizontal and no vertical cracks on the fieldhouse floor. Mr. Schrage stated correct and continued to state there was a need for additional testing on the floor. (9.1) Request for executive session (real estate). I move the city commission recess into executive session for_ minutes to discuss the potential acquisition of specific real estate, the identification of which would be contrary to the public interest, based upon the need for the preliminary discussion of the acquisition of real property pursuant to K.S.A. 75-4319(b)(6). The open meeting will resume in this room at __ p.m. Moved by Commissioner Hodges, seconded by Commissioner Hoppock, to recess into executive session for 20 minutes to discuss the potential acquisition of specific real estate, the identification of which would be contrary to the public interest, based upon the need for preliminary discussion Page 5 I I I "' "' z Q. w of the acquisition of real property, pursuant to K.S.A. 75-4319(b)(6). The open meeting will resume in this room at 6:05 p.m. Aye: (5). Nay: (0). Motion carried. The City Commission took a 2 minute break at 5:43 p.m. and recessed into executive session at 5:45 p.rn. and reconvened at 6:05 p.m. No action was taken. ADJOURNMENT Moved by Commissioner Hay, seconded by Commissioner Ryan, that the regular meeting of the Board of City Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. The meeting adjourned at 6:08 p.m. [SEAL] ATTEST: ~II.)~ Shandi Wicks, CMC, City Clerk ~~r'J Trent W. Davis, M.D., Mayor Page6 I I I RESOLUTION NO. 19-7677 A RESOLUTION INITIATING PROCEEDINGS BY THE GOVER..t'\1ING BODY FOR IMPROVEMENTS TO THEN. 9TH STREET BRIDGE IN THE CITY OF SALINA, KANSAS. \VHEREAS, by the adoption of Ordinance No. 02-10071 on February 25, 2002, the governing body of the City of Salina, Kansas (the "City"), designated Ninth Street as a main trafficway pursuant to K.S.A. 12-685 et seq. (the "Act"); and \VHEREAS, the governing body of the City has determined that it is necessary to improve or reimprove portions of said main trafficway as follows: Removal, replacement and reconstruction of the North 9th Street bridge, and all other related improvements including, but not limited to, right of way acquisition, design, engineering, construction, consultant inspection, drainage improvements and other related and necessary improvements; and (the "Improvements"); and \VHEREAS, reports, estimates and plans have been compiled and furnished to the governing body of the City to provide them with sufficient information in order to enable them to commence proceedings for the construction of the Improvements. NOW, THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS: Section 1. It is hereby deemed and declared to be necessary to make the Improvements under the authority of the Act, in accordance with plans and specifications therefore prepared or approved by the City Engineer. Section 2. The estimated cost of the Improvements is $2,000,000. The cost of the Improvements and the associated financing costs shall be payable from the proceeds of general obligation bonds and/or temporary notes of the City issued under the authority of the Act. Section 3. The City expects to make capital expenditures in connection with the Improvements and intends to reimburse itself for such expenditures with the proceeds of general obligation bonds and/or temporary notes in an amount not to exceed $2,000,000, plus associated financing costs and costs of issuance. Any general obligation bonds and/or temporary notes issued under the authority of this Resolution may be used to reimburse expenditures made on or after the date that is 60 days before the date ·of adoption of this Resolution pursuant to U.S. Treasury _ Regulation § l.150-2. Section 4. This Resolution shall take effect and be in full force immediately after its adoption by the governing body of the City. I I I z 0. w ADOPTED by the governing body of the City of Salina, Kansas, on March 4, 2019. (SEAL) .. .l, 1: i ATTEST: ., :51 ~ ~ 0 Shandi Wicks, CMC, City Clerk 2 I I I z C. w CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS June 5, 2017 4:00p.m. The City Commission convened at 2:00 for Budget: Prior Year & Year to Date Performance; Budget Process & Calendar Overview and Budget Goals; Continuation Discussion on Ethics Policy and at 3:45 p.m. for Citizens Forum. The Regular Meeting of the Board of Commissioners was called to order at 4:00 p.m. in Room 107, City-County Building. Roll call was taken followed by the Pledge of Allegiance and a moment of silence. Those present and comprising a quorum: Mayor Kaye J. Crawford (presiding), Commissioners Jon Blanchard, Trent Davis, Melissa Rose Hodges, and Karl Ryan. Also present: Jason Gage, City M~ager; Michael Schrage, Deputy City Manager; Greg Bengtson, City Attorney; and Shandi Wicks, City Oerk. AWARDS AND PROCLAMATIONS (3.1) The month of June, 2017 as "LGBT Pride Month" in the city of Salina. Clinton Walker, North Central Chapter of Equality Kansas Chair, read the proclamation and highlighted activities for the event. CmZENS FORUM Jonathan Dong, 352 W. Beloit, asked how the food service for the Salina Fieldhouse would be handled and provided information on the services he could provide. Jason Gage, City Manager, stated the initial plan was to keep the concession stand in house and encourage citizens to visit the local restaurants dmvntown. Commissioner Blanchard provided his thoughts on the proposal received via email from Mr. Dong on behalf of Bowhead Operations and Maintenance Solutions, LLC. Mr. Gage asked if the Commission would wish to have the topic placed on a future agenda for discussion. He continued to state that there could be regulations on how the operation of the concession stand could occur through the New Market Tax Credits and ST AR Bond financing, staff would need to look into that information before bringing it back to the Commission for discussion. Commissioner Blanchard asked if there was a full service prep kitchen in the facility. Michael Schrage, Deputy City Manager, stated there was not a full use prep kitchen in the facility just warming facilities. Commissioner Blanchard asked if there would be a possibility of using the facility for the summer lunch program. Mr. Schrage stated the facility could be used for the summer lunch program but stated the food was typically prepared off site and delivered to the facility. PuBUC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME None. CONSENT AGENDA Page I I I I (6.1) (6.2) (6.3) Approve the minutes of May 22, 2017. Approve the purchase of a MotoShot Elite AP-R robotic moving target system for use at the Salina Police Range in the amount of $12,226.87 utilizing The Salina Police Department Excellence Fund money. Authorize the Mayor to approve the Supplemental Agreement No. 5 for Consulting Services amending the Dragun Corporation costs from $7,023,000 to $7,073,000 and Specialty Contractors costs from $2,248,000 to $2,292,000 and Change Order No. 1 for Laboratory Services amending the Al.5 Environmental cost from $5,670 to $48,930. 17-0142 Moved by Commissioner Ryan, seconded by Commissioner Davis, to approve the consent agenda as presented. Aye: (5). Nay: (0). Motion carried. 17-0143 ADMINISTRATION (7.1) Second reading Ordinance No. 17-10883 designating certain streets as main trafficways. Mayor Crawford noted that Ordinance No. 17-10883 was passed on first reading on May 22, 2017 and since that time no comments have been received. Moved by Commissioner Hodges, seconded by Commissioner Ryan, to adopt Ordinance No. 17- 10883 on second reading. A roll call vote was taken. Aye: (5) Blanchard, Davis, Hodges, Ryan, Crawford. Nay: (0). Motion carried. (7.2} Resolution No. 17-7458 authorizing and providing for the design and construction of a Police Training Center/Range in the city of Salina, Kansas and providing for the payment of the costs thereof. Chief Brad Nelson explained the request, the project, fiscal impact and action options. Jason Gage, City Manager, stated the item was to request pre-authorization of the funding for the project. Com.missioner Blanchard asked if the project funding would be reclassified in the Capital Improvements Program (CIP). Mr. Gage stated the project was currently listed as a funded project in the CIP. 17-0144 Moved by Commissioner Blanchard, s~onded by Commissioner Hodges, to adopt Resolution No. 17-7458 authorizing and providing for the design and construction of a Police Training Center/ Range in the city of Salina, Kansas and providing for the payment of the costs thereof. Aye: (5). Nay: (0). Motion carried. (7.3) Resolution No. 17-7459 initiating proceedings by the Governing Body for street improvements in the City of Salina, Kansas. Dan Stack, City Engineer, explained the request, project, fiscal impact and action options. Commissioner Blanchard asked if the Federal Fund Exchange funds came through the Kansas Department of Transportation (KDOT). Jason Gage, City Manager, stated the Federal Fund Exchange funds were federal funds but were distributed through KDOT. He continued to state the continuation of the program and amount of money received would Page2 117-0145 depend on the outcome of the future federal budget. Moved by Commissioner Hodges, seconded by Commissioner Davis, to adopt Resolution No. 17- 7459 initiating proceedings by the Governing Body for street improvements in the City of Salina, Kansas. Aye: (5). Nay: (0). Motion carried. I z 0. w (7.4) First reading Ordinance No. 17-10888 authorizing and providing for the construction of certain street, waterline, and storm sewer improvements related to the Dmvntown Street project in the city; and authorizing the issuance of General Obligation Bonds and Utility System Revenue Bonds of the city to pay the costs thereof. Jim Kowach, Director of Public Works, explained the request, project, fiscal impact and action options. Jason Gage, City Manager, stated the request was a pre-authorization for the project and there would be a later agenda item today that would authorize the debt for all of the projects. Commissioner Blanchard stated he felt the City of Salina was ahead of the Salina 2020, Inc. group on the project. Mr. Gage stated the item was just for pre-authorization of the project allowing for the future funding of the project. Commissioner Blanchard asked for additional information on the Utility System Revenue bonds. Mr. Gage stated there was some utility work that was included in the project and the action would be for a pre-authorization to allow for future funding for the project in the future. Commissioner Blanchard asked when the clock would start ticking for the notice period for the Utility System Revenue Bonds. Mr. Gage stated the clock would begin when the notice was published. 17-0146 Moved by Commissioner Hodges, seconded by Commissioner Ryan, to pass Ordinance No. 17- 10888 authorizing and providing for the construction of certain street, waterline, and storm sewer improvements related to the Downtown Streetscape project in the city; and authorizing the issuance of General Obligation Bonds and Utility System Revenue Bonds of the city to pay the costs thereof on first reading. Aye: (5). Nay: (0). Motion carried. (7.5) First reading Ordinance No. 17-10885 authorizing and providing for the construction of certain improvements relating to the Smoky Hill River Renewal Project in the city and authorizing the issuance of General Obligation Bonds of the City to pay the costs thereof. Martha Tasker, Director of Utilities, explained the request, the project, fiscal impact and action options. Commissioner Hodges asked if the concrete channel would be included in the project. Ms. Tasker stated yes, there would still be a concrete channel. 117--0147 Moved by Commissioner Ryan, seconded by Commissioner Davis, to pass Ordinance No. 17-10885 authorizing and providing for the construction of certain improvements relating to the Smoky Hill River Renewal Project in the city and authorizing the issuance of General Obligation Bonds of the City to pay the costs thereof on first reading. Aye: (5). Nay: (0). Motion carried. Page 3 I I "' "' z "-w 17-0149 17-0150 I (7.6) General Obligation Notes and Bonds, Series 2017-A and 2017-1. (7.6a) Resolution No. 17-7457 authorizing the offering for public sale of general obligation temporary notes and bonds. (7.6b) First reading Ordinance No. 17-10886, authorizing the issuance and delivery of general obligation internal improvement bonds. Ben Hart, Interim Director of Finance & Administration, explained the issuances and projects to be funded. Moved by Commissioner Ryan, seconded by Commissioner Hodges, to adopt Resolution No. 17- 7457 authorizing the offering for public sale of general obligation temporary notes and bonds. Aye: (5). Nay; (0). Motion carried. Moved by Commissioner Ryan, seconded by Commissioner Davis, to pass Ordinance No. 17- 10886, authorizing the issuance and delivery of approximately $6,900,000 principal amount of general obligation internal improvement bonds, Series 2017-A on first reading. Commissioner Blanchard asked for the difference between temporary notes and general obligation bonds. Mr. Hart stated when a project began the City of Salina would issue a temporary note or loan and then the temporary note or loan would become general obligation bonds. A conversation ensued between Commissioner Blanchard, Mr. Hart and Jason Gage, City Manager, regarding the difference between temporary notes and general obligation bonds. Mayor Crawford restated the motion to pass Ordinance No. 17-10886, authorizing the issuance and delivery of approximately $6,900,000 principal amount of general obligation internal improvement bonds, Series 2017-A on first reading. Aye: (5). Nay: (0). Motion carried. DEVELOPMENT BUSINESS (8.1) First reading Ordinance No. 17-10884 changing the zoning district classification from R (Single-Family Residential) to 1-2 (Light Industrial) on property addressed as 1123-1127 Van Home. Dean Andrew, Director of Planning, explained the request, affected utilities, Planning Commission recommendation and action options. Commissioner Blanchard asked if there was any thought to rezoning all of the area to I-2. Mr. Andrew stated there had been past discussions of that option but would have to be initiated by either the Planning Commission or the City Commission. He continued to state that if all of the lots were rezoned to 1-2 the action could cause the residential lots to later request for rezoning if the property owner would need to apply for a home mortgage or loan as the property would then become non-conforming and loan institutions typically would not loan money on properties that were non-conforming. Moved by Commissioner Hodges, seconded by Commissioner Blanchard, to pass Ordinance No. 17-10884 changing the zoning district classification from R (Single-Family Residential} to I-2 (Light Industrial) on property addressed as 1123-1127 Van Home on first reading. Aye: (5). Nay: (0). Motion carried. Page4 I I I "' "' z Q. w ~ ~ Ill l J (8.2) First reading Ordinance No. 17-10887 amending the Future Land Use Map (Figure 2.1) of the Salina, Kansas Comprehensive Plan to change the future land use designation of the northwest comer of South Fifth Street and Prescott Avenue from future Urban Residential to future Hospital-Medical. Dean Andrew, Director of Planning, explained the request, Planning Commission recommendation and action options. Mayor Crawford asked if the neighbor was in favor of the change. Mr. Andrew stated the fence and trees between the parking lot and the house would remain as was and the request would not affect the property the house was located on. 17-0151 Moved by Commissioner Davis, seconded by Commissioner Hodges, to pass Ordinance No. 17- 10887 amending the Future Land Use Map (Figure 2.1) of the Salina, Kansas Comprehensive Plan to change the future land use designation of the northwest comer of South Fifth Street and Prescott Avenue from future Urban Residential to future Hospital-Medical on first reading. Aye: (5). Nay: (0). Motion carried. OTHER BUSINESS 17-0152 Moved by Commissioner Blanchard, seconded by Davis, to add Item 7.7 to the agenda for continuation of discussion of ethics policy. Aye: (5). Nay: (0). Motion carried. (7.7) Continuation Discussion of Ethics Policy. Greg Bengtson, City Attorney, stated there could be multiple topics to discuss regarding the policy and continued to explain the policy. Commissioner Davis asked if the Special Ethics Counsel had a final say or could the decision be further discussed. Mayor Crawford asked if there would be a need to appoint a Special Ethics Colln5el. Mr. Bengtson stated an entity could be established ahead of time or could be established at the time a situation arrived and would be needed. A conversation ensued benveen the Commission, Mr. Bengtson, and Jason Gage, City Manager, regarding the establishment of a Special Ethics Counsel. Commissioner Blanchard asked when the item could be on the agenda for approval. Mr. Gage stated the item could be added to an agenda in the next couple weeks. Commissioner Davis asked when the entrance for the Salina Community Economic Development Organization, Inc. office would be marked. Mr. Gage stated the organization was currently working on their branding and webpage but he would get with the organization on the question. Commissioner Hodges also asked about the requirement for the organization to have a separate enuance. Mr. Gage stated he would refresh himself on the agreement for the organization and contact the organization director to review the requirements. Commissioner Blanchard provided a shout out to Chief Nelson and his staff for their work putting together the Fishing with a Cop event and thanked the Parks & Recreation staff for their work on the event. Commissioner Blanchard also mentioned the 7th Annual North Salina Hog Roast and thanked Steve Rivers and the Community Relations staff for manning a booth for the event, thanked City Manager Jason Gage and his wife for attending and Commissioner Hodges for helping serve food for the event. Page 5 I I :ll z a. UI .. C ! I (9.1) Request for executive session (legal). Moved by Commissioner Davis, seconded by Commissioner Blanchard, to recess into executive session for 45 minutes to discuss with legal counsel matters subject to the attorney-client privilege for the reason that public discussion of those matters would waive the privilege and adversely affect the City's interest in the matters and reconvene at 6:15 p.m. Aye: (5). Nay: (0). Motion carried . Commissioner Hodges stated she read in the Kansas Government Journal regarding executive sessions and if a separate motion would be needed for each topic discussed. Greg Bengtson, City Attorney, stated if the topics were related in the same category one (1) motion would only be required. The City Commission recessed into executive session at 5:30 p.m. and reconvened at 6:15 p.m. No action was taken. 17-0154 Moved by Commissioner Blanchard, seconded by Commissioner Hodges, to extend the current executive session for an additional 60 minutes. Aye: (5). Nay: (0). Motion carried. 17-0155 The City Commission recessed into executive session at 6:15 p.m. and reconvened at 7:15 p.m. No action was taken. ADJOURNMENT Moved by Commissioner Blanchard, seconded by Commissioner Hodges, that the regular meeting of the Board of City Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. The meeting adjourned at 7:15 p.m. [SEAL] ATIEST: ~-t/J(_/_a Shandi Wicks, CMC, City Oerk Page 6 I I 17-0156 I CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS June 12, 2017 4:00p.m. The City Commission convened at 1:00 for the Expo Center Tour and at 3:45 p.m. for Citizens Forum. The Regular Meeting of the Board of Commissioners was called to order at 4:00 p.m. in Room 107, City-County Building. Roll call was taken followed by the Pledge of Allegiance and a moment of silence. Those present and comprising a quorum: Mayor Kaye J. Crawford (presiding), Commissioners Jon Blanchard, Trent Davis, Melissa Rose Hodges, and Karl Ryan. Also present: Jason Gage, City Manager; Michael Schrage, Deputy City Manager; Greg Bengtson, City Attorney; and Shandi Wicks, City Oerk. AWARDS AND PROCLAMATIONS (3.1) The month of June, 2017 as "Elder Abuse Awareness Month" in the city of Salina. (3.2) Courtney Train, Domestic Violence Association of Central Kansas (DV ACK) Community Outreach and Engagement Coordinator, read the proclamation and highlighted activities for the event. The day of June 18, 2017 as the "lO0th Anniversary of City Management Day" in the city of Salina. Rachel Hinde, Community Engagement Coordinator, read the proclamation. Mayor Crawford thanked the City of Salina management for all of their hard work. CmZENS FORUM None. PlJBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME (5.1) Public hearing and report on Petition No. 4386, (filed by Lewis Erickson, on behalf of Foley Equipment Company), requesting the vacation of KDOT acquired right-of- way west of the right-of-way line for North Ohio Street and vacation of the platted restricted access along the south side of the access road abutting Lot 1, Block 1 of the Replat of Foley Addition to the City of Salina, Saline County, Kansas. Dean Andrew, Director of Planning, stated due to the need for further analysis of the affected parties' property interests involved in the vacation request, staff would recommend that the public hearing be continued to the July 10, 2017 meeting. Mayor Crawford opened the public hearing. Moved by Commissioner Ryan, seconded by Commissioner Davis, to continue the public hearing requesting the vacation of KDOT acquired right-of-way west of the right-of-way line for North Ohio Street and vacation of the platted restricted access along the south side of the access road abutting Lot 1, Block 1 of the Replat of Foley Addition to the City of Salina, Saline County, Kansas to the July 10, 2017 meeting. Aye: (5). Nay: (0). Motion carried. Page 1 I I I "' "' 17-0157 17-0158 CONSENT AGENDA (6.1) Approve the minutes of June 5, 2017. (6.2) Authorize piping repair in three (3) aeration basins at the Wastewater Treatment Plant by Walters-Morgan Construction, Inc., Manhattan, Kansas in the amount of $42,450.00. (6.3) Authorize the Mayor to sign the agreement with Charles and Kathleen Elsea, 508 E. Country Club Road, for payment of cost to relocate landscape and related items on the Country Club Road Improvements, Project No. 63143, in the amount of $34,945.30. (6.4) Acceptance of public sidewalk easement dedications on the west side of Fairdale Road adjacent to Meadowlark Ridge Elementary School and on the south side of Pueblo A venue adjacent to Sunset Elementary School. Commissioner Blanchard requested that Item 6.3 be removed from the consent agenda. Moved by Commissioner Blanchard, seconded by Commissioner Hodges, to approve the consent agenda items 6.1, 6.2 and 6.4. Aye: (5). Nay: (0). Motion carried. (6.3) Authorize the Mayor to sign the agreement with Charles and Kathleen Elsea, 508 E. Country Oub Road, for payment of cost to relocate landscape and related items on the Country Club Road Improvements, Project No. 63143, in the amount of $34,945.30. Commissioner Blanchard provided his thoughts on the past practice of improvements in the right-of-way, asked how projects were typically handled and the bidding process. Dan Stack, City Engineer, stated the improvements to relocate the landscape and related items for 508 E. Country Oub Road were bid with the Country Club Road Improvements project but the property owner preferred to have the landscaping company they worked with to perform the work. He continued to state that there could be some savings on the project with the landscape company performing the work. Commissioner Blanchard asked if there was a waiver for improvements within the right-of- way. Mr. Stack stated that the addition of a waiver could be an option that staff could look into. Mayor Crawford asked if the landscape improvements did not meet the owner's wishes, what would happen. Mr. Stack stated the agreement was between the City of Salina and the property owner but the City of Salina would pay the contractor once the owner was satisfied with the landscape improvements. Commissioner Blanchard asked if these types of agreements would come to the City Commission in the future. Jason Gage, City Manager, stated the agreement came before the City Commission due to the agreement being with the property owner. He continued to state that the City of Salina typically would return the property back to its original condition after a project was completed. A conversation ensued between the Commission, Mr. Stack and Mr. Gage regarding the neighborly approach to returning property back to its original condition. Moved by Commissioner Blanchard, seconded by Commissioner Davis, to authorize the Mayor to sign the agreement with Charles and Kathleen Elsea, 508 E. Country Club Road, for payment of Page2 I 2 C. w "' ,!, " (I) '& '6 l1 8 a I) 17-0159 cost to relocate landscape and related items on the Country Club Road Improvements, Project No. 63143, in the amount of $34,945.30. Aye: (5). Nay: (0). Motion carried. ADMINISTRATION {7.1) Second reading Ordinance No. 17-10884 changing the zoning district classification from R (Single-Family Residential) to 1-2 (Light Industrial) on property addressed as 1123-1127 Van Home. Mayor Crawford noted that Ordinance No. 17-10884 was passed on first reading on June 5, 2017 and since that time no comments have been received. Moved by Commissioner Hodges, seconded by Commissioner Ryan, to adopt Ordinance No. 17- 10884 on second reading. A roll call vote was taken. Aye: (5) Blanchard, Davis, Hodges, Ryan, Crawford. Nay: (0). Motion carried. {7.2) Second reading Ordinance No. 17-10887 amending the Future Land Use Map (Figure 2.1) of the Salina, Kansas Comprehensive Plan to change the future land use designation of the northwest comer of South Fifth Street and Prescott_ Avenue from future Urban Residential to future Hospital-Medical. Mayor Crawford noted that Ordinance No. 17-10887 was passed on first reading on June 5, 2017 and since that time no comments have been received. 1 17-0160 Moved by Commissioner Davis, seconded by Commissioner Hodges, to adopt Ordinance No. 17- 10887 on second reading. A roll call vote was taken. Aye: (5) Blanchard, Davis, Hodges, Ryan, Crawford. Nay: (0). Motion carried. (7.3) Second reading Ordinance No. 17-10885 authorizing and providing for the construction of certain improvements relating to the Smoky Hill River Renewal Project in the city and authorizing the issuance of General Obligation Bonds of the City to pay the costs thereof. Mayor Crawford noted that Ordinance No. 17-10885 was passed on first reading on June 5, 2017 and since that time no comments have been received. 17-0161 Moved by Commissioner Ryan, seconded by Commissioner Hodges, to adopt Ordinance No. 17- 10885 on second reading. A roll call vote was taken. Aye: (5) Blanchard, Davis, Hodges, Ryan, Crawford. Nay: (0). Motion carried. 1 17-0162 (7.4) Second reading Ordinance No. 17-10888 authorizing and providing for the construction of certain street, waterline, and storm sewer improvements related to the Downtown Streetscape project in the city; and authorizing the issuance of General Obligation Bonds and Utility System Revenue Bonds of the city to pay the costs thereof. Mayor Crawford noted that Ordinance No. 17-10888 was passed on first reading on June 5, 2017 and since that time no comments have been received. Moved by Commissioner Hodges, seconded by Commissioner Ryan, to adopt Ordinance No. 17- 10888 on second reading. A roll call vote was taken. Aye: (5) Blanchard, Davis, Hodges, Ryan, Crawford. Nay: (0). Motion carried. Page 3 I I I 17-0163 (7.5) Resolution No. 17-7460 approving a contract for the design and engineering of the Police Training Center/Range facility. Chief Brad Nelson explained the project, contract, fiscal impact and action options. Commissioner Hodges asked for information on a potential public/private partnership. Jason Gage, City Manager, stated the new potential facility was still in the planning stages and the facility would not fully meet the requirements for a city training facility. Commissioner Hodges asked if there was a plan on what could be used while the facility was being constructed. Chief Nelson stated both the Kansas Highway Patrol and the United States Army have offered their facilities for use by the Salina Police Deparbnent during the construction of the new facility. Moved by Commissioner Davis, seconded by Commissioner Ryan, to adopt Resolution No. 17- 7460 approving a contract with Police Facility Design Group for design and engineering of the Police Training Center/Range facility. Aye: (5). Nay: (0). Motion carried. (7.6) Award the contract for 2017 Bridge Rail Painting, Project No. 70015. Dan Stack, City Engineer, explained the project, bids received, fiscal impact and action options. Commissioner Hodges asked for the life expectancy of the bridge and rails. Mr. Stack stated the bridge was six (6) years old and in good shape with good structural hand rails. He continued to state the bridge would be able to last through its twenty (20) year expectancy. Commissioner Hodges asked what the color of the bridge hand rails would be. Mr. Stack stated the hand rails would be painted black. Commissioner Blanchard asked if there was another option to take the project overage from instead of the pavement sealing. Jason Gage, City Manager, stated staff could look into the sales tax fund to cover the overage. Commissioner Blanchard asked if a project came in under budget could the remaining project budget amount be kept to use for overages on other projects. Mr. Gage stated staff could take that approach for future projects. 17-0164 Moved by Commissioner Hodges, seconded by Commissioner Blanchard, to award the contract for Project No. 70015, 2017 Bridge Painting to Thomas Industrial Coatings of Pevely, MO in the amount of $70,400.00 with a 10% construction contingency ($7,040.00). Aye: (5). Nay: (0). Motion carried. DEVELOPMENT BUSINESS None. OTHER BUSINESS Mayor Crawford thanked the staff and volunteers for their hard work on the Smoky Hill River Festival. Commissioner Blanchard asked for an update on the STAR Bond legislation. Jason Gage, City Manager, stated the Kansas House of Representatives and Kansas Senate approved a tax bill that was vetoed by the Governor but both the Kansas House of Representatives and Kansas Senate were able to come up with enough votes to pass through the tax bill. He Page4 I "' 17-0U,5 17-0166 17-0167 I I continued to state that the ST AR Bond legislation was approved therefore the City of Salina project would be able to move forward as planned. (9.1) Request for executive session (legal). Moved by Commissioner Davis, seconded by Commissioner Blanchard, to recess into executive session for 45 minutes to discuss legal counsel matters subject to the attorney-client privilege for the reason that public discussion of those matters would waive the privilege and adversely affect the City's interest in the matters and to discuss confidential data relating to the trade secrets of a business entity for the reason that public discussion of the information would competitively disadvantage the business entity and reconvene at 5:45 p.m. Aye: (5). Nay: (0). Motion carried. The City Commission recessed into executive session at 5:00 p.m. and reconvened at 5:45 p.m. No action was taken. Moved by Commissioner Ryan, seconded by Commissioner Hodges, to extend the current executive session for an additional 65 minutes. Aye: (5). Nay: (0). Motion carried. The City Commission recessed into executive session at 5:45 p.m. and reconvened at 6:50 p.m. No action was taken. ADJOURNMENT Moved by Commissioner Ryan, seconded by Commissioner Hodges, that the regular meeting of the Board of City Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. The meeting adjourned at 6:50 p.m. [SEAL) AITFST: ~UJW Shandi Wicks, CMC, City Clerk Page 5 Summary published in The Salina Journal on June J2_, 2017 Postcd.Jlll tbe Ciry11f:.Salina.wcbsi1e from Ju:ge_:l'b-1? 2012 ORDINANCENO.17-10885 AN ORDINANCE OF THE CITY OF SALINA, KANSAS, AUTHORIZING AND PROVIDING FOR TIIE CONSTRUCTION OF CERTAIN IMPROVEMENTS RELATING TO THE SMOKY HILL RIVER RENEWAL PROJECT IN THE CITY; AND AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS OF THE CITY TO PAY THE COSTS THEREOF. WHEREAS, K.S.A. 12-63h(a) et seq. (the "Act") provides, in pa11, that whenever the governing body of any city detennines it is necessa,y to construct stonn sewers, channels, retention basins or drains for the purpose of managing the stonn dminage areas of all or any portion of such city and in the unincorporated areas outside of but within three miles of the corporate limits of such city, the go\'eming body may authorize the construction of such stonn sewers, channels, retention basins or drains, such construction shall be authorized by ordinance; such ordinance shall designate where such stonn sewers, channels, retention basins or drains shall be located; and WHEREAS, Article 12, § 5 of the Constirution of the State of Kansas (the "Home Ruic Amendment") and K.S.A. 12•101 empowers cities to detenninc their local affairs and government and provides that such power and authority granted thereby to ci1ies shall be liberally construed for the purpose of gh•ing to cities the largest measure of self-government; and WHEREAS, the City of Salina, Kansas (the "City") is a city within the meaning of the I-Jome Ruic Amendment; and \\'HEREAS, the Project (as defined below) is located within the boundaries of the City, and there is no enactment of the Kansas legislature which authorizes the City to issue general obligation bonds to provide funds to finance the portion of the Project unrelated to stonn sewer and drainage improvements, or which· prohibits the City from issuing general obligation bond!: to provide funds to finance such portions of the Project; and WHEREAS, in order to provide for the general health, safety and welfare of the City and its citizens, the governing body of the City has considered the need to construct certain stonn sewer, river, trail, street and related impro,-ements within the Cit)• described as follows (the "Project"): ; and The design, construction, improvement, and restoration of approximately 6.8 miles of the Original Smol.-y Hill River alignment "ithin the City and adjacent property (beginning at the flood control levee-inlet structure and ending at the flood control levee-outlet strucrure), including any land acquisition necessary therefor, all pursuant to the Smoky Hill Ri\'er Renewal Master Plan, including, but not limited to: removal of sediment. dredging, filtration, channel cleaning, restoration of stream flow, installation of a conc~te channel and other various in-channel river impro\'cments, the construction of a multi-use hiking and biking trail, sidewalk construction and improvemenas, replacement of drainage pipes and other storm se,,•cr and drainage improvements, consuuction of bridges, various landscaping and aesthetic improvements, and all things necessary and appurtenant thereto WHEREAS, the governing body of the City hereby further finds and determines that it is necessary and advisable and in the inlcrest of the public health, safety and welfare of the Ciry to authorize the issuance of general obligation bonds of the City to provide funds to finance the Project. ;! f Ill f II . Now,-T~RE. B:: o::: BY THE GO~RNING BODY oF THE en: OF ~ .!SALINA, KANSAS: ! Section I. Public Benefil. The: go,·eming body of lhe City hereby finds and detennines that j~on~~ction of the Project is in the interest of the public health, safety and welfare of the City and 1 1ts citizens. Secrion 2. Financing Authorization; Reirnbursement. The costs of the Project, interest on l interim financing and associated fmancing costs are hereby authorized to be paid, in \\hole or in part, from the (proceeds of general obligation bonds of the City (the "Bonds"), which are hereby authorized to be issued for j such purposes pursuant to the collective authority of the Home Rule Amendment, K.S.A. 12-10 I and the Act. f'The total estimated costs of the Project arc S27,000,000, plus interest on any temporary financing and costs ! of issuance. The City expects to make expenditures related to the Project prior to the date of issuance of the Bonds, and hereby d«lares its intent to use proceeds of such Bonds to reimburse expenditures made on or !after the date which is 60 days before the date of this Resolution, pursuant to Treasury Regulation § l.lS0-2. J f Section 3. Further Authority. The officials of the City, the City's attorney, Gilmore & Bell, P.C., as bond counsel, and olher consul1ants are authorized to proceed with such planning and document I preparation as necessary in order to comply with the intent of this ordinance, subject lo final approval of such documents by the governing body. Section 4. Effecth·e Date. This Ordinance shall be effective from and after final passage by ! 1 the governing body, approval and signature by the Mayor and publication once in the official City newspaper ,'.• 1 by the following summary: I! I Ordinance No. 17-10885 Summary . l I I On June 12, 2017, the Go,•erning Body of the City of Salina, Kansas, adopted Ordinance No. I 7-1088S, authorizing and providing for certain improvements related to the Smoky Hill River Renewal Project and authorizing the issuance of general obligation bonds to pay the costs thereof. The complete text of this ordinance may be obtained or viewed ~e of charge at the office of the City Cleric, 300 West Ash Street, Salina, Kansas, or on the City's official website address, www.salina-ks.gov, where a reproduction of the original ordinance will be available for a minimum of one week following this summauy publication. (BALANCE OF THIS PAGE lNTENTlONALLY LEFT BLANK] 2 /1 ·======-======== =====n:==========================---,,-~-:::::-::;.;-;::;.:·::.:;·::::.-======::;-:::::=====;== II ~- f "' I 4 J B I PASSED b)' the governing body of the Ci1y of Salina, Kansas, on June I 2, 2017 and APPROVED AND IGNED by the Mayor. :SEAL) I r han i Wicks, CMC, City Clerk f l [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] (Signature Page 10 Ordinance) I I I I i PUBLICATION SUMMARY Of ORDINANCE NO. 17-10885, PASSED BY THE GOVERNING BODY OFTHECnYOFSAUNA, KANSAS ON THE 12mDAYOFruNE,2017 SUMMARY On June 12, 2017, the Go\'eming Body of the City of Salina, Kansas, adopted Ordinance No. 17-1088S, authorizing and providing for the construction of certain improvements relating the Smok)' Hill River Renewal Project in the City. The complete text of this ordinance may be obtained or viewed .free of charge at the office of the City Clerk, 300 West Ash Street, Salina, Kansas, or on the City's official website address, www.salina-ks.gov, where a reproduction of the original ordinance will be available for a minimum of one week following this summary pubHcation. ified this 121h day of June, 2017. Publish one time and return one Proof of Publication to the City Clerk and one to the City Attorney Publisher's Affidavit I, __ ...,(..,'h...,d .... sb-.· ... F .... in ... k ____ , being duly sworn declar~ that I am a l.egaJ Cnnrdinatm: of THF SALII\'.t\ }OUR~Al, a daily newspaper publtshed at Salina, Saline County, Kansas, and of general dr(Ulaiion in said county, wluch newspaper has bt.>cn adnuttcd to th1; mail""~ second class matter in said count\, and continuously and uninterruptedly published for five consecutive years prior to first publication of attached noticer and that the Ordinance 1%10885 Notice has been correctly published in the entire issue of said newspaper one time, publication being given in the issue of June 15, 2.01'7 Subscribed anci sworn to before me-, this / b e- Printer's h,.-e SS8.50 A.D.20_L2 IEJ3SA\WllHC1Z --·2fll0. I I I "' "' z "-w .. . 5 ~ -g E "O =g " 0 {J CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS February 24, 2020 4:00p.m. The City Commission convened at 2:00 p.m. for CIP Discussion and 2:30 p.m. for Downtown Arts & Entertainment Ordinance Overview and at 3:45 p.m. for Citizens Forum at City-County Building, Room 107B. Mayor Hoppock asked the Clerk for verification that notice had been sent for today's City Commission meeting. The Clerk replied yes. The Regular Meeting of the Board of Commissioners was called to order at 4:00 p.m. in Room 107, City-County Building. Roll call was taken followed by the Pledge of Allegiance and a moment of silence. Those present and comprising a quorum: I\fayor Ivlichael L. Hoppock (presiding), Commissioners Trent W. Davis, M.0., Rod Franz, Melissa Rose Hodges, and Karl Ryan. Also present: Michael Schrage, City Manager; Jacob Wood, Deputy City i\fanager; Greg Bengtson, City Attorney; and Shandi Wicks, City Clerk. AWARDS A.i'\'D PROCLAMATIONS (3.1) The week of February 9-15, 2020 as "VITA Volunteers Week" in the city of Salina. Brenda Gutierrez, Program Director for Salina Area United Way, spoke about the program, a couple of individuals that volunteer with the program introduced themselves. Ms. Gutierrez read the proclamation. Mayor Hoppock asked if there were multiple sites in town. Ms. Gutierrez mentioned the program was located at 145B S. Santa Fe Avenue and noted the hours of operation. CITIZENS FORUM Tyler Certain, 233 N. Kansas, thanked Commissioner Franz for his coffee with a citizen last Saturday and looked forward to another session. He also provided information regarding a pit bull ban that was lifted in Junction City, Kansas. Deborah Corrales, 124 E. Charlotte, provided information on fatalities and dogs in the United States, DNA testing of dogs at the Salina Animal Shelter and asked if one of these dogs was misidentified by the shelter and something would happen, would the City be responsible because they banned this breed but the missed identifying the dog. Michael Schrage, City :tvlanager, stated no, just as a general premise, the law recognized that it was a general attempt and there was no expectation of perfection. He continued to state with respect to the pit bull bases already taken to place, in the courts openly acknowledge that there was some subjectivity to the assessment of the traits of the dogs and there wasn't an expectation of perfection. A conversation ensued between Ms. Corrales and f\fr. Schrage regarding ON A testing and court cases. Norman Mannel, Salina, asked what accommodations the City of Salina provided for foreign language for open public meetings. Mr. Schrage stated there ,-vere staff members that were bilingual that could assist citizens. Commissioner Davis stated that there were conversations with Salina Media Connections regarding closed captioning once the meeting video was shown on the Salina Media Connection television page for viewing. Pagel I I I II) "' ~-Ir. Manne! also asked what the City of Salina was doing for the flu viruses in the community. Mr. Schrage stated that the City of Salina relied on the health department to handle those matters. Commissioner Davis provided information regarding the types of flu viruses and noted that personal hygiene was the most important. PUBUC HEARINGS AND ITEMS SCHEDULED FOR A CERTAlN TIME (5.1) Public hearing authorizing the completion of an application to the Kansas Department of Health and Environment (KDHE) regarding a loan from the Kansas Public \-\1ater Supply Loan Fund (KPWSLF) Project No. 2997. (5.1a) Resolution No. 20-7795. Mayor Hoppock opened the public hearing. Martha Tasker, Director of Utilities, explained the project, and fiscal impact. Commissioner Davis asked if the plan was to focus on the areas there were problems or to replace all of the mains. Ms. Tasker stated the focus was on the six (6) inch pipes and the problem areas. She continued to state all of the water mains may not be replaced. Commissioner Franz stated the older cast iron pipes were not having problems no matter the size. Ms. Tasker stated the older cast iron pipes no matter the size were better than the newer pipes installed. She continued to provide information on the problem areas and sizes. Commissioner Hodges stated we were looking at approximately 23 years to 40 years to get all of the six (6) inch pipes replaced. Ms. Tasker stated she thought the project could be completed in 15 to 20 years. Jvtichael Schrage, City Manager, provided information on the strategy staff used on looking at water line and water mains when street work was scheduled to be done in case it could be coordinated. A conversation ensued benveen the City Commission and Ms. Tasker regarding water main breaks. Mayor Hoppock stated the project was a $2 million dollar project. 1\•Is. Tasker stated it would actually be two (2) $2 million dollar projects. Mayor Hop pock asked from looking at the chart prepared by staff, he noticed in the 2014 to 2016 the state revolving fund was at 2.43% and asked if there was a pre-payment penalty or if the loan could be refinanced. Ms. Tasker stated you can pay those off but she was not had conversations ·with the Kansas Department of Health & Environment (KDHE) about refinancing a loan. She continued to state you could pay the loan off or do something different without penalties. Mr. Schrage stated staff have had refinancing conversations with bond counsel and can get back vdth bond counsel to continue that conversation. Norman Mannel, Salina, asked where \Ve were on the air base cleanup. 1\•1ichael Schrage, City Manager, stated we were currently in mediation with the federal government for the federal government to contribute the bulk of the cost. He continued to state the cleanup was estimated at S68 to $100 million dollars. There being no further comments the public hearing was closed. Ms. Tasker listed the action options for consideration. Page 2 1 20-0059 Moved by Commissioner Davis, seconded by Commissioner Hodges, to adopt Resolution No. 20- 7795 authorizing the completion of an application to the Kansas Department of Health and Environment (KDHE) regarding a loan from the Kansas Public Water Supply Loan Fund (KPWSLF) Project No. 2997. Aye: (5). Nay: (0). ~fotion carried. I I z a.. w .. C 'a "' j j 51 d CONSENT AGENDA (6.1) (6.2) Approve the minutes of February 10, 2020. Award contract for 2020 l\1icrosurfacing, Project No. 20014 to Vance Brothers, Inc. of Kansas City, Missouri, in the amount of $574,888.37 with a 525,111.63 (4.4%) construction contingency (5600,000 authorization). (6.3) Approve Resolution No. 20-7793 appointing members to various boards and commission. Commissioner Hodges requested that Item 6.2 and 6.3 be removed from the consent agenda. 20-0060 Moved by Commissioner Hodges, seconded by Commissioner Davis, to approve the minutes of February 10, 2020 as presented. Aye: (5). Nay: (0). Motion carried. (6.2) Award contract for 2020 Microsurfacing, Project No. 20014 to Vance Brothers, Inc. of Kansas City, Missouri, in the amount of $574,888.37 with a $25,111.63 (4.4%) construction contingency (5600,000 authorization). Commissioner Hodges wanted to confirm if the manholes would be adjusted as the project was occurring or as a separate project. Jim Kowach, Director of Public Works, stated the manhole adjustments would be done as part of the projects. He continued to state the manhole adjustment project coming soon would cover the projects from the last couple of years. 20-0061 l\•Ioved by Commissioner Hodges, seconded by Commissioner Davis, award to contract for 2020 Microsurfacing, Project No. 20014 to Vance Brothers, Inc. of Kansas City, Missouri, in the amount of $574,888.37 with a $25,111.63 {4.4%) construction contingency ($600,000 authorization). Aye: (5). Nay: (0). ~fotion carried. 20-0062 (6.3) Approve Resolution No. 20-7793 appointing members to various boards and commission. Commissioner Hodges felt it was important to disclose and recuse herself from voting for her mother-in-laws position with the Community Art & Design Committee appointment. iviayor Hoppock noted that an appointment was originally on the resolution for the Arts and Humanities Commission but was removed due to an opening listed in error. J\.foved by Commissioner Ryan, seconded by Commissioner Davis, to adopt Resolution No. 20- 7793 appointing members to various boards and commission. Aye: (4). Nay: (0). Abstained: (1) Hodges. Motion carried. DMINISTRA TION (7.1) Resolution No. 20-7801 setting the date for a public hearing to consider whether a dangerous structure at 320 E. Bond Street shall be condemned and ordered repaired or demolished. Page 3 1 2()..()063 "' "' z Q. w " .5 m a; -g ii :!i! ] 1 20--0064 I Sean Pilcher, Building Official, explained the dangerous structure process, property, fiscal impact and action options. Moved by Commissioner Ryan, seconded by Commissioner Franz, to adopt Resolution No. 20- 7801 setting the date for a public hearing to consider whether a dangerous structure at 320 E. Bond Street shall be condemned and ordered repaired or demolished setting April 6, 2020 as the public hearing date. Aye: (5). Nay: (0). 1'.fotion carried. (7.2) Resolution No. 20-7809 providing for the acquisition of fire-fighting equipment, providing for the issuance of general obligation bonds of the City of Salina to pay for such equipment and authorization to publish the Notice of Intent. Debbie Pack, Director of Finance & Administration, explained the acquisition, bond issuance, fiscal impact and action options. Commissioner Franz asked what the anticipated term ,-vas on the bonds. rvls. Pack stated 20 years and 15 years respectively. Commissioner Hodges stated the current unit would be in reserve for 5 years and asked what would then happen to that unit. l\tls. Pack stated her understanding was the current reserve unit would be sold and the current 2000 unit would be put into reserve until the next purchase. Commissioner Franz stated it was noted it was difficult to get parts for the current unit and asked if it made more sense to keep the currently reserved unit instead of the 2000 unit. ~·ls. Pack stated she could definitely discuss this with fire department staff. Moved by Commissioner Davis, seconded by Commissioner Hodges, to adopt Resolution No. 20- 7809 providing for the acquisition of fire-fighting equipment, providing for the issuance of general obligation bonds of the City of Salina to pay for such equipment and authorization to publish the Notice of Intent. Aye: (5). Nay: (0). Motion carried. (7.3) Resolution No. 20-7804 terminating the City of Salina subscription recycling program. Jim Teutsch, Operations Manager, explained the program, fiscal impact and action options. Commissioner Hodges asked what the net saving would look like with the reduction in staffing. Jvlr. Teutsch stated there •.vould be a 50 cent increase for 2020 and no increase in 2021. He continued to note the-truck purchase was $145,000 and a worker/driver position was approximately $45,000. Commissioner Franz asked how long a truck lasted. ~fr. Teutsch stated ten (10) years. Commissioner Franz stated that would be approximately 514,000 a year. Michael Schrage, City Manager, stated staff had estimated that the actual cost of providing the service was about $19.75 compared to charging 55.50. He continued to state if you look at that difference for 800 customers over 12 months, by his math was S137,000. ~fayor Hoppock stated that amount did not cover the additional costs such as the tipping fees. Jim Km-vach, Director of Public Works, stated the position that would be eliminated in the transition would be moved over into a similar position and there would not be any layoffs involved. Commissioner Davis provided his thoughts on the discontinuation of curbside recycling, other recycling options, and showed a video regarding recycling. Page 4 I I z Q. w .. "' ~ II> "& ii l! g C 8 1 20-0065 Commissioner Hodges provided her thoughts on recycling and asked if every participant in curbside recycling participated at a $10 level, then the program would pay for itself. Mr. Teutsch stated yes, shifting to 1,000 subscription recycling carts initially and charging each customer $10 a month. He continued to state from an operational standpoint we would be ab]e to expand the number of customers in the program to 2,000. He further stated the missing math piece was if there would be enough customers interested in paying the higher amount. Commissioner Davis asked if the question could be added to the upcoming survey. Mr. Teutsch stated he would prefer to have the question as a separate survey but could talk to the cart provider. Mr. Teutsch stated the program was closed and we had not actively advertised the program .. Mr. Kowach stated the program was closed as of the study session due to the intent of the commission. A conversation ensued between the City Commission, Mr. Kowach and lvlr. Teutsch regarding the curbside recycling program, the outlet for recycling and use of trucks. 1'-.fayor Hoppock asked what our life expectancy was for our landfill. Mr. Teutsch stated approximately 150 years. Commissioner Davis asked how much dirt we had to cover. Mr. Teutsch stated there was a shortfall in material but it would be at least 50 years before we would notice the shortfall. He continued to provide information on the process of landfill cell creation and ways to obtain the shortfall. Commissioner Franz provided his thoughts on recycling and asked how many participated in curbside recycling. Mr. Teutsch stated 798. Commissioner Franz stated that the remaining 19,200 were served by the recycling center. Mr. Teutsch stated yes. Commissioner Franz asked if the almost 800 additional households could be serviced at the drive-thru recycling center. Mr. Teutsch stated absolutely. Commissioner Franz asked if there was more than one private recycling company. lvlr. Teutsch stated not that he was aware of. Commissioner Franz asked if we could include in the letter the private recycling hauler. Mr. Schrage stated with it being one provider, he thought it could be included. l\fr. Teutsch stated then yes. Commissioner Franz continued to provide his thoughts on the current curbside recycling program and the drive-thru recycling center. Commissioner Davis asked how many participants utilized the drive-thru recycling center. Mr. Teutsch stated approximately 250 per day. I\.fayor Hoppock stated the drive-thru facility was currently not open every day and could maybe be expanded. Mr. Teutsch stated that staff had been keeping statistics daily with the intent to go to the city manager soon to discuss the hours of operation. Ken Reitz, 1314 Parkwood Drive, provided information on a recycling program that he ran. David Norlin, 608 E. Republic, provided his thoughts on recycling, the need to promote recycling and the house bill on plastic bags. Commissioner Ryan provided his thoughts on the program and the life of the landfill. Moved by Commissioner Ryan, seconded by Commissioner Franz, to adopt Resolution No. 20- 7804 terminating the City of Salina subscription recycling program. Page 5 I I I "' .,, Commissioner Hodges provided her thoughts on the curbside subscription recycling program. Commissioner Davis provided his thoughts on the current curbside subscription recycling program, and the amount of trash being produced. Commissioner Franz provided his thoughts on the current program, stated he was a current user of the program and his intended use of the drive-thru recycling center. Mayor Hoppock stated that education was a big part of it and provided his thoughts on the current curbside subscription recycling program. Mayor Hoppock called the question to adopt Resolution No. 20-7804 terminating the City of Salina subscription recycling program: Aye: (4). Nay: (1) Davis. Motion carried. (7.4) Resolution No. 20-7805 directing staff to provide the required 90-day notice and terminate the current agreement with Kanza Organics for processing yard waste for the City of Salina. Jim Teutsch, Operations Manager, explained the program, the agreement, fiscal impact and action options. Commissioner Davis asked what happened to the yard waste taken to the landfill. Mr. Teutsch stated yard waste v-..as considered grass trimmings and brush trimmings and that is not separated from other trash. He continued to state the tree trimmings or brown waste was free to take to the landfill for residential and half price was charged to commercial businesses. Commissioner Davis asked if brown waste was accepted as part of the yard waste program. Mr. Teutsch stated the restriction was lifted on the size of brown waste for the program some time ago and was accepted as part of the program. Commissioner Davis asked if there was a significant storm would the City be able to contract with Kanza Organics. Mr. Teutsch stated that there was a past significant ice storm that a temporary operation was setup on East Crawford Recreation Area to collect the limbs or brown waste and dispose of properly. Commissioner Hodges stated that the current leaf pickup time was not coinciding with the optimal leafs falling and did not know if the timing could be looked at. Mr. Teutsch stated that the program dates were intended to be done prior to the ·winter season starting. He also stated that staff was willing to look at the program dates and have encouraged citizens to call if a pickup was needed after the leaf pickup truck had been in the neighborhood. Ken Reitz, 1314 Parkwood, provided information on yard waste or brown waste. David Norlin, 608 E. Republic, asked staff if the seasonal nature of yard waste collection was part of the problem with the program. Mr. Teutsch stated the cost of the program was based on the number of tonnage you collect and the more tonnage you collect, the more the program was profitable. He continued to state best way for yard waste to be sustainable was for people to stop collecting it and repurpose it. Mr. Norlin continued to provide his thoughts on a user's point of view on yard \Vaste. Mr. Reitz suggested utilizing a chipper to mulch the limbs periodically and allow citizens to have the mulch. Page 6 I I I 20-00"66 z fu .. C 'a UJ i J! ii B 20-0067 Commissioner Hodges stated it was harder than recycling because we have a market for it and it would hasten the need for remediating the methane gas . .1\-lr. Teutsch stated in the next 5 to 10 years we will have to build a system for the methane gas. He continued to provide information on the collection of yard waste. !\•loved by Commissioner Ryan, seconded by Mayor Hoppock, to adopt Resolution No. 20-7805 directing staff to provide the required 90-day notice and terminate the current agreement with Kanza Organics for processing yard waste for the City of Salina. Aye: (3). Nay: (2) Davis, Hodges. Motion carried. (7.5) Resolution No. 20-7808 establishing sanitation refuse collection and Salina Drive- Thru Recycling Center (SDRC) rates effective as of the first billing cycle beginning April 1, 2020, not previously approved in the latest Comprehensive Fee Schedule of the City of Salina. Jim Teutsch, Operations Manager, explained the program, the agreement, fiscal impact and action options. Commissioner Hodges asked what the threshold would be for revisiting the transporting to Stutzman's and the types of recycling materials we are collecting. tvlr. Teutsch stated that staff would need to come before the City Commission again to discuss some other options. Commissioner Franz asked how many trips we make in a year to the material recovery facility (MRF). !\fr. Teutsch stated approximately 75 trips. Commissioner Franz asked how close we were to operating our own MRF . .!\'Ir. Teutsch stated not close, it would require at least 10,000 tons a year and it would not be feasible for us in the near future. Ken Reitz, 1314 Parkwood, provided his thoughts on recycling collection. Moved by Commissioner Ryan, seconded by Commissioner Davis, to adopt Resolution No. 20- 7808 establishing sanitation refuse collection and Salina Drive-Thru Recycling Center (SDRC} rates effective as of the first billing cycle beginning April 1, 2020, not previously approved in the latest Comprehensive Fee Schedule of the City of Salina. Aye: (5). Nay: (0). Motion carried. (7.6) Sanitation Trucks and Carts (7.6a) Resolution No. 20-7818 providing for the issuance of general obligation bonds to pay for six (6) fully automated refuse trucks and authorization to publish the Notice of Intent. (7.6b) Resolution No. 20-7806 authorizing the Mayor to sign an agreement to purchase six (6) fully automated refuse trucks. (7.6c) Resolution No. 20-7807 authorizing the t-.fayor to sign an agreement to purchase new 95-gallon refuse carts. Jim Teutsch, Operations !\fanager, explained the program, the agreement, fiscal impact and action options. Commissioner Davis asked what the material the seats were made out of . .r-.fr. Teutsch stated cloth and noted a staff error regarding the seat type in the bids documents. Adam Hlad, Summit Truck Group, asked if the City Commission had any questions regarding the chassis portion of the bids and provided information on additional options and value to the trucks that Summit Truck Group could provide. Page 7 I I I "' "' z C. UJ .. ,:: 'a 'JJ i :i;! g 5 u Ken Reitz, 1314 Parkwood, provided his thoughts on the trucks and amount of trash collected. Commissioner Davis asked if Mr. Hlad's point was a consideration in the bidding or a deficiency in the other trucks. Mr. Teutsch stated it was not something staff looked at but we welcome his input because it was an additional feature. He continued to state it was a feature that was used on landfill equipment now and it was a technology application that allows the technician to identify faults before the driver did and it allowed code revisions to the system, if necessary, and over time could help reduce the cost of maintenance. He further stated the program was not included in the specifications for the bid primarily because that company was the only one that offered the service and staff did not want to eliminate any potential bidders because of the program. Commissioner Hodges stated that she had forwarded an email regarding a small community that was looking at acquiring possibly 100 of our old carts to recycle for their own city and didn't know if staff had been able to connect ,vith that gentleman. Jim Kowach, Director of Public \-\'arks, stated that the way the bids were setup, the carts were not our property and were to be disposed of by the lm..v bidder. He continued to state that if the lower bidder didn't want to return the carts or recycling them as they were required to do, that another community would be interested in reusing them and reuse of the carts was acceptable to staff. Mr. Teutsch stated that staff would absolutely pass that information on to Schaffer. Commissioner Franz asked if an education program on the new trash program was developed. Mr. Teutsch stated that staff had drafted a staff position for an E3 coordinator that would need to go through the processes for establishing the position. Mayor Hoppock asked when staff expected delivery of the trucks and carts. Mr. Teutsch stated about a year but the general obligation bond protest period could move that timeframe. Commissioner Hodges asked if the specific type of truck would commit us to a single source collection. Mr. Teutsch stated the model of single stream collection was the market standard. Commissioner Davis asked if the carts being black would be hard to see. :r,.,1r. Teutsch stated that he had not known of a community that a black cart was not a problem. He continued to state the company that the City of Salina had used went out of business and the current new carts were black. Commissioner Davis asked which side of the road the driver would drive on. ~fr. Teutsch stated the trucks were equipped to allow the driver to sit on either the left or right side. 20-0068 Moved by Commissioner Ryan, seconded by Commissioner Davis, to adopt Resolution No. 20- 7818 providing for the issuance of general obligation bonds to pay for six (6) fully automated refuse trucks and authorization to publish the Notice of Intent. Aye: (5). Nay: (0). :t-.•lotion carried. 20-0069 i\•loved by Commissioner Ryan, seconded by Commissioner Franz, to adopt Resolution No. 20- 7806 rejecting the bids from Downing Sales and Service as they are considered non-responsive and authorizing the Mayor to sign an Agreement to purchase of six (6) fully automated side-load refuse trucks from Elliot Equipment Company for a total price of $1,553,584.00. Aye: (5). Nay: (0). Motion carried. Page 8 1 20-0070 ., ., z Q. w ., C: I 19 ! :e I 0 I 20-0071 1 20--0072 Moved by Commissioner Ryan, seconded by Commissioner Hodges, to adopt Resolution No. 20- 7807 rejecting the bids from Toter, LLC for not bidding to recycle the existing carts, rejecting the Bids from Otto Environmental Systems North America, Inc. for not meeting the specifications, and authorizing the :r,..-iayor to sign an agreement with Schaefer Systems International, Inc. to purc:;hase and deliver approximately 18,800 refuse carts at a unit cost of $46.77, collect and recycle approximately 22,000 existing carts at the unit price of $6.99, for a total of $1,033,056.00, with a 10% contingency of S103,305.60, (total authorization for $1,136,361.60). The number of new carts purchased and old carts collected may be adjusted higher or lower to account for the actual number of carts determined in the customer survey. Aye: (5). Nay: (0). i\fotion carried. The City Commission recessed at 6:57 p.m. for a 8 minute break. The meeting resumed at 7:05 p.m. (7.7) Resolution No. 20--7819 authorizing the Mayor to execute an agreement with Saline County addressing the prisoner housing, emergency dispatch and related services. :tviichael Schrage, City Manager, explained the agreement, staff working group, fiscal impact and action options. Commissioner Franz commended staff for trying to develop a better plan and hoped for a better outcome. Commissioner Davis asked if there was any reason why the county provided for routine health care and we covered the emergency services . .i\•Ir. Schrage stated there were statutory obligations that required the arrangement as it was. Moved by Commissioner Hodges, seconded by Commissioner Franz, to adopt Resolution No. 20- 7819 authorizing the .i\fayor to execute an agreement \vith Saline County addressing the prisoner housing, emergency dispatch and related services. Aye: (5). Nay: (0). Motion carried. DEVELOPMENT BUSINESS (8.1) Application #219-11, (filed by Lee Haworth Construction Co., Inc.) requesting a change in zoning district classification from A-1 (Agricultural) to R-1 (Single-Family Residential) on a 9.82 acre tract of land located on the north side of Cedar Ridge Drive between Grand Prairie Addition and the Briargate Addition south of the Salina Municipal Golf Course. (8.la) First reading Ordinance No. 20-11028. Dean Andrew, Director of Planning, explained the request, public utilities, Planning Commission recommendation and action options. Commissioner Franz asked what the average lot size was in the proposed development. Mr. Andrew stated 10 to 12 thousand square feet. He continued to state the lot sizes were less than Cedar Ridge Addition and Grand Prairie Addition. Bob Haworth, 913 Twin Oaks Drive, asked for the item to be considered for a zoning change and thought it was the best use of the area. Mayor Hoppock asked if it would be done in two (2) phases. Mr. Haworth stated possibly, he might try to do it in one (1} phase. Moved by Commissioner Davis, seconded by Commissioner Hodges, to pass Ordinance No. 20- 11028 on first reading changing the zoning district classification from A-1 (Agricultural) to R-1 Page 9 I I I :ll z 0.. w (Single-Family Residential} on a 9.82 acre tract of land located on the north side of Cedar Ridge Drive betv,•een Grand Prairie Addition and the Briargate Addition south of the Salina 1vlunicipal Golf Course. Aye: (3). Nay: (0). 1fotion carried. OTHER BUSINESS Commissioner Davis mentioned potholes on l'v1agnolia at the 1-135 overpass. Commissioner Hodges thanked Chief Nelson for responding to her questions regarding parking in the center lanes downtown. She also thanked Lauren Driscoll for her response. Commissioner Franz asked if delivery drivers could park in the center lane. Jim Kowach, Director of Public Works, stated yes. ADJOURNMENT 20-0073 Moved by Commissioner Ryan, seconded by Commissioner Davis, that the regular meeting of the Board of City Commissioners be adjourned. Aye: (5). Nay: (0). lvlotion carried. The meeting adjourned at7:32 p.m. ~/ ~ [SEAL} ATTEST: ~l,\)f.ui Shandi Wicks, CMC, City Clerk Michael L. Hopp ck, 1\fayor Page 10 L L L (Published in the Salina Journal on February 28, 2020 and March 6, 2020) RESOLUTION NUMBER 20-7818 A RESOLUTION PROVIDING FOR THE ISSUANCE OF TEMPORARY NOTES AND/OR GENERAL OBLIGATION BONDS OF THE CITY OF SALINA, KANSAS TO FINANCE EQUIPMENT NECESSARY FOR THE CITY'S MUNICIPAL SOLID WASTE SERVICES. WHEREAS, the City of Salina, Kansas (the "City"), collects and dispenses of solid waste as a municipal function under the laws of the State of Kansas, including K.S.A. 12-2101 et seq. (the "Act''); and WHEREAS, the Governing Body of the City hereby finds and determines that it is necessmy to acquire certain equipment necessary to the City's solid waste services, including six fully automated refuse trucks (the "Equipment") and that the City has insufficient funds to pay for the entire cost of the Equipment at the present time; and WHEREAS, the City hereby finds and determines that it is necessary for the City to issue its temporary notes and/or general obligation bonds (the ''Obligations") to pay the cost of the Equipment; NOW, THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS: Section 1. It is hereby deemed and declared to be necessary for the City to make improvements to the City's solid waste facility as described above. Section 2. It is necessary for the City to issue its Obligations to the pay the cost of the Equipment in the amount of $1,600,000 plus the costs of issuance and interest on any temporary financing under the authority of the Act and K.S.A. 10-101 et seq. Section 3. Before issuing the Obligations, this resolution shall be published once each week for two consecutive weeks in the official City newspaper. The Obligations may be issued unless a petition in opposition thereto, filed by not less than 5% of the electors of the City, is filed with the County Election Officer of Saline County within 30 days following the second publication of the resolution. If such petition is filed, the governing body of the City shall submit the question of the issuance of the Obligations for the Equipment to the electors of the City at an election called for such purpose as provided in the Act. If no sufficient petition is filed with the County Election Officer of Saline County within the period of time hereinbefore stated, then the governing body of the City shall proceed with the issuance of the Obligations for the Equipment. Section 4. The City has incurred preliminary expenditures and expects to make expenditures on and after the date of adoption of this resolution in connection with the Equipment, and intends to reimburse itself for such expenditures with the proceeds of the Obligations of the City which are expected to be issued in the maximum principal amount of $1,600,000 plus the costs of issuance and interest on any temporary financing. Section 5. This resolution shall be in full force and effect from and after its adoption. L L L ADOPTED by the Governing Body on February 24, 2020. (Seal) ATTEST: 8. awii uJ ttu2 Shandi Wicks, CMC, City Clerk Publisher's Affidavit I, Christy Fink , being duly sworn '------""'--------declare that lam a Leg a J Coordinator of THE SALINA JOURNAL, a daily newspaper published 11tSalina, Saline County, Kansas, and of general circulation in said county, wh-ich newspaper has been admitted to the mails as second class miltter in said county, and continuously and uninterruptedly published for five consecutive y~ars prior to first publication of attached notice, and that the attached Resolution #20-7818 notice has been correctly published in the entire issues of said newspaper ______ t_·w_o _______ l:inws, towit-once each week fo1_· ____ .......... ::.... _____ _ consecutive weeks, the first publication being given in the issue of febniary 28, Subscribed and sworn to before me, this Printer's Fee $441.00 2020 2-0 A.D.20 -- Notary Public ffimt Nl!ihta l'l 100 Sal-ne Jou,nal Foor~a1y U. 2020j RESOLUTION NUMB.ER 20•7818 A AESOlUTIO.~ PIIOVlOii-K: fOA THf:ISSUANCE" 0- iEMPOAAJ!Y IIOTESAND/ OR GENEP.Al OBI.IGATlON BONDS OF il£ C!iV OF SAUNA. KANSAS TO FlNANCE Wv!PMENT t.ECESS.\RY FOR THE CITY'S MUNICiPAl. SCUD l'/AS!E SERVICES. WHEREAS, the Oil)' ~f Sallla, Kansas t~ 'Cill'), ~ ano d,spens!iS o' sold ~e as a 111'.ri~pa: luootfo/1 un-jer Ille laws o! tn. SllllS ol Kansas. ifl('.udi,,g ~ S.A 1~-210' !!l SiQ. {Hie 'Acq: and WHEREAS, 'll! Gtt,em,ag· 8odv olllie Cily t.ere!i, ~rid, (,'IQ' de:e111:nes :1izt tt ~ r.-;y to ao::v1e caftat1 equ'pmsm ne-::!!S!SI)' to u-.; Crty's s~i•d ~ se,vi:es, "11;'.:>dl'ig si( luh1 a!/lometed re.'uss :a It.he ·~1PIMlll'/ and ttis: 1ne c~ 111!5 !n~\lffieier.t lu/llls lo pay ford•e elllire 11011 cl 'Ile EqlP?rne."I ril it-~ p,esenl lime; and WH~AEAS, me C~· ha,eby finds an~ !k~eml!lle, l!lll1 ,t IS n00f$S!!ry fer lh& 011) to issue hs tempOlll!Y n01es aMI or gBMral ollligat1ro bonds (Iha 'Ohligatlon5'l topaytlle OOSI o~thE . Equ,pnumi: NOW, THEREFORE, BE IT RESOLVEDBYTHE GOVERNING BODY OF THE CITY OF 6-LINA, KANSAS: Se1:lfan 1. lt is h~reby deemed and de<l.red to be l\flc,sse,y for tne tr.v 10 ma,ie 1mpro1-emani. IQ llla Cl!y's solid sie lacUitp•as dest1ibed above. ' -See11on 2. h 1; ne:essary fa, tho Croy to issue 1\$ Obligat,cns 10 u,e r:ei tli!l costottllB E~wpmer,t I~ tile amauot of $1600.000 p!us Iha ,os:s of issu.ro:e er.d mlerem Oil ~'i !•1npor..ry rna11C<19 1/l:!li>, lile 1Ulhor"y Of 1he Ml !l'lj KS A, 10· lOt ct~~~ r:--:Ci.:;:---;tiwi~.Oi:;-;lA:;:;:RY:;-;P::;-:!JB:::-L-:::-IC-. -~.,-t -,~~-f K-, ~-,. • ~ • ...ia L(J ans&::~ •'"~ .. ~·;·~ WENDYCHROBAK l --··-/,l)' twpl l'J:nJ1-~ ·2o~o -~-------·----~ -=:::::..t Secllon a. Befil!ll 13s111,g Ire Oil!,g3ll0'1s, IM ,e~?llhllll Sl15·1 De ou!l'ishcd 01 oe eaeh 11eet. lac tw, w,1;1:M,,.; ml\S in lhe otl..:,, C,l)' news;ia.">r The 0bt:}a1>0/'S m,v be issue-j un~S!> a peti11o11 ,i ~pas,1io~ u1ere10. t~ b; not li!ss 1ha,. 61, d ~ e/eclors ot the Gi!y. I!; flee w m Dill County E1"-1:t1011 omce o! Slll•ne Co.r~y wiUrn 30 dai-s bi!o'1tng me ~cOIIII pub!,;a!ion ol iii. rEGoMio!i. II su<:h t)EfillOi\ fs lilsd, lie goie111ir,,~ body ol l!>e Gil)' sha1, SJl;.T<! ltle q;,esl.;ri o! 1he i!slal!C!J o: tile Obl,i)al11>n! for Iha Eaui;laelll ID ?t .. &!&dots of lhe City i1 an elmlOI! cared fur s:ich pulJ)OSe as p:oooc,a lll !he A;t If no suff.:l~o! pe111»!1 ~ !,/e<J 1111h #111 CourlJ EIE<:l1G11 Of~r c• Saf,na Goontr '<::lr.n L'le J>ll'IOO OI '!!!)i! ,hereMv.iei_.~ S!~lf)O, 1001 the go~•r,g ~:fy ot tile Ctr s11a, proc.ed wi!h me ,ssu.mi ,/ th. Qbl,~Jo·11ieE'qt,p~rl. Setllon 4. 1he Ctty has inw~ed Otel1'1l,r.al'/ e,pen.:litureS and e~ lu mak5 e,r,;w.,,tures on and afti!! the d,:a or adopt-on of 11". !8SQtullon !n ~ with lhe ~er,:. ,rt! r.lends In re:m!w,s~ 11$e~ for s~ch ex!)!ndrruc~ wrth lh.l p~ o: !lie OeigaliN'.s of Ills vllY wlllal Sil! $1pected le be iss,md In the maximum !)lk1C~I a.11C11JJi Of S1,600;000 plus me OOSIS o; iEsO!llCe ar,G in1eres1 en all'f !emporaiyLnancing. Section 5, Th,s 1eSOf.J.!on shalbelllfull!nn;eaoo eller:t lrom and a lier riS lld'lpUon. ADOPTED b~ the Gcvemi,ig Bodylln Februa,v 24, 2020 (Sell) ATTEST Mi:t.aell HOppool<..Ma,o, SliandiW,clrs (:!IC,Cfty c·~•l, 121.PI CERTIFICATE OF NO PROTEST I, Jamie R. Doss, Com1ty Clerk and Election Officer of Saline County, Kansas (the "County"), do hereby certify that within 30 days following the date of the second publication of Resolution No. 20-7818 of the City of Salina, Kansas, which resolution authorized the issuance of general obligation bonds to pay the costs of certain solid waste equipment, no protest petition signed by 5% of the qualified electors of the City was filed with my office in accordance with the provisions ofK.S.A. 12-2101 et seq. Dated: January~ 2021 County Clerk and Election Officer CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS February 1, 2021 4:00p.m. The City Commission convened via Zoom meeting at 2:30 p.m. for the Live Salina Plan Update - 1 Demographics and Economic Incentives. l II Mayor Hodges asked the Clerk for verification that notice had been sent for today's City: 11 Commission meeting. The Clerk replied yes. !I The Regular Meeting of the Board of Commissioners was called to order at 4:00 p.m. via Zoom· meeting. Roll call was taken followed by a moment of silence. I 1, II ii Those present and comprising a quorum via the Zoom meeting: Mayor Melissa Rose Hodges (presiding}, Commissioners Trent W. Davis, M.D., Rod Franz, Michael L. Hoppock, and Karl Ryan. Also present via Zoom meeting: Michael Schrage, City Manager; Greg Bengtson, City Attorney; and Debbie Pack, Director of Finance and Administration. AWARDS AND PROCLAMATIONS (3.1) The month of February 2021 as "Black History Month" in the city of Salina. Sandra Beverly will read the proclamation. Mayor Hodges thanked Sandra Beverly, as well as grandchildren Scarlet and Gabriel for their virtual participation and presentation. Ms. Beverly announced associat~d events. (3.2) The month of February 2021 as "Teen Dating Violence Awareness Month" in the city of Salina. Caitlyn Butts will read the proclamation. Mayor Hodges thanked Ms. Butts for the presentation and asked about any associated events. Michael Schrage, City Manager provided updated numbers related to Covid-19 cases in Saline County. Lauren Driscoll, Director of Community & Development Services, and Brad Anderson, Director of Arts and Humanities were facilitators for the Zoom meeting. Ms. Driscoll provided procedural overview for public citizens' participation. Michael Schrage, City Manager provided information on how executive sessions are conducted during the Zoom meeting. CITIZENS FORUM I 11 None I I I II PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME None. CONSENT AGENDA (6.1) Approve the minutes of January 25, 2021. Page 1 = = ~ c-~ _) 21-0029 21-0030 21-0031 I! ll l 11 11 i (6.2) Resolution No. 21-7934 concluding the 2020 Evaluation of the City Manager's. (6.3) (6.4) Performance. Consider Resolutio No. 21-7931, authorizing and providing for the replacement of four (4) rooftop HVAC units in Great Plains Manufacturing Convention Hall and 1 relocation of HV AC controls for these units to connect to the main floor control system at Tony's Pizza Event Center and authorizing the issuance of Temporary Notes and/ or General Obligation Bonds of the City to pay the costs thereof. Consider Resolution No. 21-7932, authorizing and providing for the replacement of portable basketball floors at Tony's Pizza Event Center and authorizing the issuance of Temporary Notes and/ or General Obligation Bonds of the City to pay the costs thereof. Commissioner Davis requested that Item 6.2 be removed from the consent agenda. Moved by Commissioner Ryan, seconded by Commissioner Davis, to approve the consent agenda 11 items 6.1, 6.3, and item 6.4 as presented. A roll call vote was taken. Aye: (5) Davis, Franz, Hoppoek, Ryan, Hodges. Nay: (0). Motion carried. Mayor Hodges thanked Vice-Mayor Davis for removing item 6.2 frorrt the consent agenda and requested permission from fellow Commissioners, to explain and read Resolution No. 21-7934. ii Moved by Commissioner Hoppock, seconded by Commissioner Davis, to accept Resolution No. 21-7934 as presented. A roll call vote was taken. Aye: (5) Davis, Franz, Hoppock, Ryan, Hodges. I Nay: (0). Motion carried. II Michael Schrage, City Manager thanked the Commission for the recognition. I ADMINISTRATION II (7.1) Second reading Ordinance No. 21-11050 amending the Fuhtre Land Us,e Map of the Salina, Kansas Comprehensive Plan to change the future land use d~signation of property located on Cortland Circle south of Schilling Road and west of South Ohio Street from fuhtre Employment to future Neighborhood Center and amending the text of the narrative describing the Neighborhood Center land use category of the Salina Comprehensive Plan to add C-5 and PC-5 to the list of Poterttial Zoning Districts under the Neighborhood Center land use category. Mayor Hodges announced that Ordinance No. 21-11050 was passed on first reading on II January, 25, 2021 and since that ti.me no comments had been received. There were 110 public comments. j Moved by Commissioner Hoppock, seconded by Commissioner Ryan, to adopt Ordinance No. 21- , 11050 on second reading. A roll call vote was taken. Aye: (5) Davis, Franz, Hoppock, Ryan, 11 Hodges. Nay: (0). Motion carried. I I I ! ti II (7.2) Second reading Ordinance No. 21-11051 changing the zoning district classification from PC-6 (Planned Heavy Commercial) to PC-5 (Planned Service Corrtmercial) for the property that is legally described as Lots 1-5, Block 4 and Lots 1-4, Block 5 in the Page 2 n II !1 ! Corrected Plat of Liberty Addition No. 2, an addition to the City of Salina, Saline County, Kansas. Mayor Hodges announced that Ordinance No. 21-11051 was passed on first reading on 1 January, 25, 2021 and since that time no comments had been received. There were no public comments. 21-0(J32 I Moved by Commissioner Ryan, seconded by Commissioner Franz, to adopt Ordinance No. 21- 21-0033 1 11051 on second readirtg. A roll call vote was taken. Aye: (5) Davis, Franz, Hoppock, Ryan, 1 Hodges. Nay: (0). Motion carried. I I ,I 11 I) I• !l I 1[ (7.3) Resolution No. 21-7935 authorizing the Mayor to enter in to a lease with the Saline County Fair Association. Michael Schrage, City Manager, explained the lease agreement and stated there would be no direct fiscal expense to the City. Mr. Schrage discussed the amendments1 to the lease under Recitals; item D.; (c) continued use of the Arena Staging Area as a dog park, at the discretion of the SCF A; and ( d) removal of the SCF A's personal property froi;n the Arena Facilities after the 2021 Fair. Mr. Schrage further stated that (c) and (d) as depicted in Recitals; item D. is repeated in Section 4. SCFA Authorized Uses 4.1 (c) and (d). Commissioner Davis asked if there was a minimum notification requirement if the lease would need to be terminated prior to September 10, 2021. Mr. Schrage stated that the other entity, interested in development of the Kenwood Pool site and the Rodeo Arena area, stated they would be agreeable to start their project in phases that would allow for the Saline County Fair Board to utilize the Arena Facilities for the 2021 Fair. Commissioner Davis asked if there was a poirtt of contact with the Saline County Fair Board [SCFB], for citizens to contact, if the lease were approved. Mr. Schrage stated he has had conversations with an SCFB representative and can share that information with the citizens that have reached out, as it pertairts to reestablishment of a dog park, in the area within the proposed lease agreement. There were no public comments. I Moved by Commissioner Hoppock seconded by Commissioner Ryan, to adopt Resolution No. 21- 7935 with amendments as present by Michael Schrage, City Manager. A roll call vote was taken. ! Aye: (5) Davis, Franz, Hoppock, Ryan, Hodges. Nay: (0). Motion carried. DEVELOPMENT BUSINESS None '.! ;1 OTHER BUSINESS I I I I I II I 11 II (9.1) Request for executive session (legal). I move the City Commission recess into executive session for _ minutes to Jiscuss with legal counsel the subject of legal considerations relating to defense of the case of William Sheppard and Cornerstone Development Group, L.L.C. v. City of Salina and City of Salirta Planning Commission based upon the need for consultation with an attorney for the public body which would be deemed privileged in the attorney-client relationship pursuant to Page 3 .I KS.A. 75-4319(b)(2). The open meeting will resume via the same Zoom link and the City of Salina YouTube channel at __ p.m . (9.la) Possible action to follow. 21-Q034 l, Moved by Commissioner Davis, seconded by Commissioner Hoppock, to recess into executive session for 45 mi11utes to discuss with legal counsel the subject of legal considerations relating to defense of the case of William Sheppard and Cornerstone Development Group, L.L.C. v. City of Salina and City of Salina Pla1ming Commission based upon the need for consultation with an attorney for the public body which would be deemed privileged in the attorney-client relationship pursuant to KS.A. 75-4319(b)(2). The open meeting will resume via the same Zoom link and the City of Salina YouTube channel at 5:30 p.m. A roll call vote was taken. Aye: (5) Davis, Franz, Hoppock, Ryan, Hodges. Nay: (0). Motion carried. 21-0035 I Also present in executive session was Micl1ael Schrage, City Manager, Greg Bengtson, Jake Peterson, Lauren Driscoll, and Dean Andrew. The meeting reconvened at 5:30 p.m. No action was taken ADJOURNMENT Moved by Commissioner Hoppock, seconded by Commissioner Ryan, that the regular meeting of ii the Board of City Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. The meeting 11 adjourned at 5:31 p.m. II I I [SEAL] I ATTEST· I . · i&r/:ll ~k II I II MW'tr'1~v\~-- Me,lissa Rose Hodges, 1,Uror Page4 -RESOLUTION NO. 21-7931 A RESOLUTION AUTHORIZING AND PROVIDING FOR THE DESIGN, CONSTRUCTION AND IMPROVEMENT OF A PUBLIC BUILDING IN THE CITY OF SALINA, KANSAS AND PROVIDING FOR THE PAYMENT OF THE COSTS THEREOF. WHEREAS, the City of Salina (the "City") is authorized and empowered pursuant to K.S.A. 12-1736 et seq. (the "Act") to erect or construct, acquire a public building or buildings and procure any necessary site therefore and may alter, repair, reconstruct, remodel, replace or make additions to, furnish and equip a public building or buildings; and WHEREAS, the City is authorized and empowered pursuant to the Act to issue general 0bligation bonds for the purpose of financing the costs associated with the foregoing; and WHEREAS, the governing body of the City hereby finds and determines that it is necessary to authorize and provide for the improvement of certain public buildings in the City, as more fully described herein, and to provide for the payment of the costs thereof. NOW, THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OJ.l· SALINA, KANSAS, AS FOLLOWS: Section 1. Project Authorization. The governing body of the City hereby finds and determines that it is necessary to make the following improvements: The replacement of all four (4) HVAC units and relocation of HVAC controls for the Great Plains Manufacturing Convention Hall HVAC system to program units on the main floor at Tony's Pizza Event Center, and all other necessary improvements related thereto (the ''Improvement~·,). Se.ction 2. Project Financing. The estimated cost of the Improvements is$ I 60,426. The cost of the Improvements, plus the associated financing costs and interest on any temporary financing shall be payable from the proceeds of general obligation bonds of the City issued under the authority of the Act. Section 3. Reimbursement. The City expects to make capital expenditures in connection with the Improvements and intends to reimburse itself for such expenditures ,vith the proceeds of general obligation bonds and/or temporary notes in an amount not to exceed $ l 60,426, plus the associated financing costs and interest on any temporary financing. Any general obligation bonds and/or temporar} notes issued under the authority of this Resolution may be usl;!d to reimburse expenditures made on or after the date that is 60 days beforl! the date of adoption of this Resolution pursuant to U.S. Treasury Regulation § 1.150-2. Section 4. the governing body. This Resolution shall take effect and be in full force immediately after its adt,ption by ADOPTED AND APPROVED by the governing body of the City of Salina, Kansas, on February I. 2021. (SEAL) ATI'EST: 2 CITY OF SALINA, KANSAS STATEMENT OF FINAL COSTS MAGNOLIA HILLS ESTATES NO. 2 UTILITY, STREET, AND DRAINAGE IMPROVMENTS RESOLUTION NO.19-7760 CONSTRUCTION COST Construction Cost Engineering City Expenses (5%) Total ASSESSMENT AMOUNT Construction Costs to be Assessed Bonds Costs of Issuance Total Project Costs to be Assessed STONE LAKE ADDITION PHASE 3A WATER, SANITARY SEWER AND STREET IMPROVEMENTS RESOLUTION NO.19-7751 CONSTRUCTION COST Construction Cost Engineering City Expenses Total Construction Costs to be Assessed ASSESSMENT AMOUNT Construction Costs to be Assessed Bonds Costs of Issuance Total Project Costs to be Assessed $1,345,889.42 101,329.49 65,232.23 $1,512,451.14 $1,512,451.14 21.174.32 $1,533,625.46 $1,142,277.49 39,029.85 54,736.22 $1,236,043.56 $1,236,043.56 17,304.61 $1,253,348.17 MAGNOLIA HILLS ESTATES NO. 2 MARKLEY ROAD TRAIL IMPROVEMENTS RESOLUTION NO. 21-7957 CONSTRUCTION COST Construction Cost City Expenses ( 5 % ) Total ASSESSMENT AMOUNT Construction Costs to be Assessed Bonds Costs of Issuance Total Project Costs to be Assessed Project Costs to be Assessed to Property Owners Project Costs paid by the City at Large $151,171.65 5.291.01 $156,462.66 $156,462.66 2.270.53 $158,733.19 $25,556.04 $133,177.14 ASSESSMENT ROLL CERTIFICATION The undersigned having been designated by the City of Salina, Kansas (the "City"), to determine the amounts of the respective assessments and to prepare the proposed Assessment Roll therefor in connection with certain internal improvements previously authorized by the governing body hereby reports that each and all of the respective assessments have been determined to be as shown on Schedule I attached hereto and made a part hereof by reference as though fully set out herein. Dated: February 7, 2022. CITY OF SALINA, KANSAS ~ ~ By: SCHEDULE I MAGNOLIA IDLLS ESTATES NO. 2 UTILITY, STREET AND DRAINAGE IMPROVEMENTS RESOLUTION NO.19-7760 COLLECTED IN FIFTEEN (15) INSTALLMENTS Description of Property Lot 1, Block 1, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 1, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 3, Block 1, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 4, Block 1, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 2, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 2, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 3, Block 2, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 4, Block 2, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 3, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 4, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 5, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 6, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 7, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 8, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 9, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 10, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 11, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 12, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 13, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 14, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 4, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 3, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 4, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 5, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 6, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 7, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 8, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, S,aline County, Kansas Lot 9, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 1 Amount of Proposed Assessment $42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 2,935.45 2,935.45 2,935.45 2,935.45 Lot 1, Block 6, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 42,524.32 Lot 2, Block 6, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 13,131.70 Lot 3, Block 6, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Lot 1, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Lot 2, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Lot 3, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Lot 4, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Lot 5, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Lot 6, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Lot 7, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Lot 8, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Lot 9, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Lot 1, Block 8, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Tract 1 A 1RACT OF LAND LOCATED IN THE SOUTHEAST QUARTER OF SECTION 29, TOWNSHIP 14 SOUTH, RANGE 2 WEST OF THE 6TH P.M. IN SALINE COUNTY, KANSAS, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SAID SOUTHEAST QUARTER; THENCE ON AS ASSUMED BEARING OF SOUTH 00°28'27" EAST ON THE EAST LINE OF SAID SOUTHEAST QUARTER, A DISTANCE OF 185.06 FEET TO THE SOUTHEAST CORNER OF A PARCEL RECORDED IN SALINE COUNTY REGISTER OF DEEDS, BOOK 270, PAGE 308, SAID POINT ALSO BEING THE POINT OF BEGINNING; THENCE SOUTH 89°36'54" WEST ON THE SOUTH LINE OF SAID PARCEL, A DISTANCE OF 699.25 FEET; THENCE SOUTH 00°24'52" EAST ON A LINE OF SAID PARCEL, A DISTANCE OF 65.10 FEET; THENCE SOUTH 89°29'31" WEST ON THE SOUTH LINE OF SAID PARCEL, A DISTANCE OF 260.23 FEET TO THE EAST CORNER OF LOT 4, BLOCK 2, MAGNOLIA HILLS ESTATES NO. 2 TO THE CITY OF SALINA, SALINE COUNTY, KANSAS; THENCE SOUTH 42°47'49" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 139.73 FEET; THENCE ON THE BOUNDARY OF SAID MAGNOLIA HILLS ESTATES NO. 2, ON A CURVE TO THE LEFT, WITH A CHORD DIRECTION OF SOUTH 55°07'38" EAST, A CHORD DISTANCE OF 69.97 FEET, AN ARC LENGTH OF 70.03 FEET, AND A RADIUS OF 500.00 FEET; THENCE SOUTH 30°51'38" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 60.00 FEET; THENCE ON THE BOUNDARY OF SAID MAGNOLIA HILLS ESTATES NO. 2, ON A CURVE TO THE RIGHT, WITH A CHORD DIRECTION OF NORTH 57°20' 13" WEST, A CHORD DISTANCE OF 35.23 FEET, AN ARC LENGTH OF 35.23 FEET AND A RADIUS OF 560.00 FEET; THENCE SOUTH 37°32'11" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 150.39 FEET; THENCE SOUTH 68°09'58" EAST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 99.34 FEET; THENCE SOUTH 21 °50'02" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 145.00 FEET; THENCE SOUTH 28°34'27" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 60.42 FEET; THENCE SOUTH 21°50'02" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 137.48 FEET; THENCE SOUTH 68°09'58" EAST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 89 .60 FEET; THENCE SOUTH 21 °50'02" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 60.70 FEET; THENCE SOUTH 89°25'55" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 93.80 FEET; THENCE SOUTH 00°34'05" EAST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 180.00 FEET; THENCE SOUTH 89°25'55" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 19.75 FEET; THENCE SOUTH 00°34'05" EAST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 175.00 FEET TO THE SOUTHEAST CORNER OF LOT 1, BLOCK 8, OF SAID MAGNOLIA HILLS ESTATES NO. 2; THENCE NORTH 89°25'55" EAST, A DISTANCE OF 1249.34 FEET TO THE EAST LINE OF SAID SOUTHEAST QUARTER; THENCE NORTH 00°28'27" WEST ON THE EAST LINE OF SAID SOUTHEAST QUARTER, A DISTANCE OF 1152.04 FEET TO THE POINT OF BEGINNING. 243,256.73 2 SAID TRACT CONTAINS 29.61 ACRES MORE OR LESS. Less Tract 1.2 <Drainage Easement) A TRACT OF LAND IN THE SOUTHEAST QUARTER OF SECTION 29, TOWNSHIP 14 SOUTH, RANGE 2 WEST OF THE 6TH PRINCIPAL MERIDIAN, SALINE COUNTY, KANSAS, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SAID SOUTHEAST QUARTER, THENCE ON AN ASSUMED BEARING OF SOUTH 00° 28' 27" EAST ON THE EAST LINE OF SAID SOUTHEAST QUARTER, A DISTANCE OF 185.06 FEET TO THE POINT OF BEGINNING; THENCE SOUTH 00° 28' 27" EAST ON THE EAST LINE OF SAID SOUTHEAST QUARTER, A DISTANCE OF 256.56 FEET; THENCE SOUTH 89° 36' 54" WEST, A DISTANCE OF 143.52 FEET; THENCE NORTH 57° 52' 17'' WEST, A DISTANCE OF 179.64 FEET; THENCE SOUTH 89° 36' 54" WEST, A DISTANCE OF 425.00 FEET; THENCE NORTH 49° 48' 18" WEST, A DISTANCE OF 145.45 FEET TO THE SOUTH LINE OF A TRACT OF LAND DESCRIBED IN DEED BOOK 1173, PAGE 1374; THENCE NORTH 89° 29' 31" EAST ON SAID SOUTH LINE, A DISTANCE OF 130.85 FEET; THENCE NORTH 00° 24' 52" WEST ON SAID SOUTH LINE, A DISTANCE OF 65.10 FEET; THENCE NORTH 89° 36' 54" EAST ON SAID SOUTH LINE, A DISTANCE OF 699.25 FEET TO THE POINT OF BEGINNING. SAID TRACT CONTAINS 3.22 ACRES MORE OR LESS. Total Assessment $1,533,625.46 3 STONE LAKE ADDITION PHASE 3A WATER, SANITARY SEWER AND STREET IMPROVEMENTS RESOLUTION N0.19-7751 COLLECTED IN FIFTEEN (15) INSTALLMENTS Description of Property Lot 1, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 2, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 3, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 4, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 5, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 6, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 7, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 22, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 23, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 24, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 25, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 26, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 1, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 2, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 12, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 13, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 14, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 15, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 16, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 17, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 18, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 19, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 20, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 21, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 22, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 23, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 24, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 2, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 3, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 4, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 5, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 6, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 7, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 8, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 9, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 10, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 11, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 12, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 13, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 14, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 1 Amount of Proposed Assessment $29,381.57 29,381.57 29,381.57 29,381.57 29,381.57 29,381.57 6,440.80 6,440.80 29,381.57 29,381.57 29,381.57 29,381.57 29,381.57 6,440.80 29,381.57 29,381.57 29,381.57 29,381.57 29,381.57 29,381.57 29,381.57 29,381.57 29,381.57 29,381.57 29,381.57 29,381.57 29,381.57 29,381.57 29,381.56 29,381.56 29,381.56 29,381.56 29,381.56 29,381.56 29,381.56 29,381.56 29,381.56 29,381.56 29,381.56 29,381.56 Lot 15, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 16, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 17, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 18, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 19, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Total Assessment $1,253,348.17 2 MAGNOLIA HILLS ESTATES NO. 2 MARKLEY ROAD TRAIL IMPROVEMENTS RESOLUTION NO. 21-7957 COLLECTED IN FIFTEEN (15) INSTALLMENTS Description of Property Lot 1, Block 1, in the Mamolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 1, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 3, Block 1, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 4, Block 1, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 2, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 2, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 3, Block 2, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 4, Block 2, in the Ma!!llolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 3, in the Ma£molia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 3, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 4, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 5, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 6, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 7, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 8, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 9, Block 3, in the Mamolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 10, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 11, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 12, Block 3, in the Mal!Dolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 13, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 14, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 4, in the Ma_gnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 5, in the Maimolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 3, Block 5, in the Magn olia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 4, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 5, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 6, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 7, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 8, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 9, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 6, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 6, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 3, Block 6, in the Marnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 7, in the Marnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 3 Amount of Proposed Assessment $567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.92 Lot 3, Block 7, in the Marnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.92 Lot 4, Block 7, in the Mafillolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.92 Lot 5, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.92 Lot 6, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.92 Lot 7, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.92 Lot 8, Block 7, in the Maimolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.92 Lot 9, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.92 Lot 1, Block 8, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.92 Total Assessment $25,556.04 4 (Published in the Salina Journal on February 10, 2021 NOTICE OF PUBLIC HEARING TO: RESIDENTS OF THE CITY OF SALINA, KANSAS You and each of you are hereby notified that the governing body of the City of Salina, Kansas (the "City") will meet for the purpose of holding a public hearing, as provided by K.S.A. 12-6a01 et seq., in the City Commission chambers in the City-County Building, 300 W. Ash Street, Room 107, Salina, Kansas, on February 28, 2022, or as soon thereafter as may be heard, at 4:00 p.m. The public hearing is for the purpose of hearing any and all oral or written objections to proposed assessments in connection with the following described improvements: Magnolia Hills Estates No. 2 -Utility, Street, and Drainage Improvements Resolution No. 19-7760 The curb, gutter, pavement, and grading for approximately 817 lineal feet of Ridgehill Drive, 648 lineal feet of Stonepost Lane, 520 lineal feet of Huntwood Drive, 171 lineal feet of Mustang Lane, 86 lineal feet of Ridgewood Court and 116 lineal feet of Stebe Court (the "Street Improvements"). The installation of approximately 2,929 lineal feet of storm sewer pipe, inlets, manholes and all appurtenances thereto (the "Storm Drainage Improvements"). The installation of a detention basin and all appurtenances thereto (the "Detention Basin"). The installation of approximately 233 lineal feet of six-inch water main, 2,094 lineal feet of eight- inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 1,939 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). The installation of approximately 1,257 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Line A' Improvements"). (collectively, the "Improvements"), and all as more fully described in the detailed cost estimates attached to this Report. Property Description: See Exhibit A hereto (collectively, the "Improvement District"). Cost of Improvements: The total cost of the Improvements to be assessed against the property in the Improvement District is $1,533,625.46. 5 Apportionment of Cost One hundred percent ( 100%) of the total cost of improvements shall be assessed to the Improvement District and no portion of costs shall be paid by the City at Large. Stone Lake Addition, Phase 3A -Water, Sanitary Sewer, Storm Sewer and Street Improvements Resolution No. 19-7751 The curb, gutter, pavement, and grading for approximately 898 lineal feet of Shoreline Drive, 1,311 lineal feet of Wet Stone Drive, 230 lineal feet of Wet Stone Port and 120 lineal feet of Wet Stone Cove (the "Street Improvements"). The installation of approximately 1,025 lineal feet of storm sewer main, inlets and all appurtenances thereto (the "Storm Sewer Improvements"). The installation of approximately 2,113 lineal feet of eight-inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 2,546 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). (collectively, the "Improvements"). Property Description: Block 1, Lots 1 through 7, lots 22 through 26, Block 2, lots 1 through 2, lots 12 through 24, and Block 3, Lots through 19, all in Stone Lake Addition to the City of Salina, Saline County, Kansas. Cosf of Improvements: The total costs of the Improvements to be assessed against the property in the Improvement District is $1,253,348.17. Apportionment of Cost One hundred percent ( 100%) of the total cost of improvements shall be assessed to the lots in the Improvement District benefiting from such improvements and no portion of costs shall be paid by the City at Large. 6 MAGNOLIA HILLS ESTATES NO. 2 -Markley Road Trail Improvements Resolution No. 21-7957 The excavation, sidewalk ramps, pavement and grading for approximately 2,181 square yards of a ten-foot wide concrete multi-modal trail along Markley Road. (the "Improvements") Property Description: Magnolia Hills Estates # 2 Block 1, Lots 1 through 4, Block 2, Lots 1 through 4, Block 3, Lots 1 through 14, Block 4, Lot 1, Block 5, Lots 1 through 9, Block 6, Lots 1 through 3, Block 7, Lots 1 through 9, Block 8, Lot 1, all in Magnolia Hills Estates No. 2 to the City of Salina, Saline County, Kansas. Cost of Improvements: The total cost of the Improvements is $158,733.19. Apportionment of Cost 83.9% of the total cost of Improvements shall be shall be paid by the City at Large and 16.1 % of the total costs of the Improvements shall be assessed against the Improvement District. An Assessment Roll prepared in accordance with the referenced Resolution(s) approved by the governing body is on file in the Office of the City Clerk and may be examined by any interested party. At the conclusion of the public hearing, the governing body will consider an Ordinance levying such special assessments. DATED: February 7, 2022. ls/Debbie Pack, Director of Finance / Administration 7 EXHIBIT A MAGNOLIA IDLLS ESTATES NO. 2 UTILITY, STREET, AND DRAINAGE IMPROVEMENTS PROPERTY DESCRIPTION Description of Property Lot 1, Block 1, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 1, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 3, Block 1, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 4, Block 1, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 2, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 2, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 3, Block 2, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 4, Block 2, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 3, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 4, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 5, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 6, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, ~aline County, Kansas Lot 7, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 8, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 9, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 10, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 11, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 12, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 13, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 14, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 4, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 3, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 4, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 5, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 6, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 7, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 8, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 9, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 6, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 6, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 3, Block 6, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 3, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 4, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 5, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 6, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 7, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 8, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 9, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 8, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Tract 1 A TRACT OF LAND LOCATED IN THE SOUTHEAST QUARTER OF SECTION 29, TOWNSHIP 14 SOUTH, RANGE 2 WEST OF THE 6TH P.M. IN SALINE COUNTY, KANSAS, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SAID SOUTHEAST QUARTER; THENCE ON AS ASSUMED BEARING OF SOUTH 00°28'27" EAST ON THE EAST LINE OF SAID SOUTHEAST QUARTER, A DISTANCE OF 185.06 FEET TO THE SOUTHEAST CORNER OF A PARCEL RECORDED IN SALINE COUNTY REGISTER OF DEEDS, BOOK 270, PAGE 308, SAID POINT ALSO BEING THE POINT OF BEGINNING; THENCE SOUTH 89°36'54" WEST ON THE SOUTH LINE OF SAID PARCEL, A DISTANCE OF 699.25 FEET: THENCE SOUTH 00°24'52" EAST ON A LINE OF SAID PARCEL, A DISTANCE OF 65.10 FEET; THENCE SOUTH 89°29'31" WEST ON THE SOUTH LINE OF SAID PARCEL, A DISTANCE OF 260.23 FEET TO THE EAST CORNER OF LOT 4, BLOCK 2, MAGNOLIA HILLS ESTATES NO. 2 TO THE CITY OF SALINA, SALINE COUNTY, KANSAS; THENCE SOUTH 42°47'49" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 139.73 FEET; THENCE ON THE BOUNDARY OF SAID MAGNOLIA HILLS ESTATES NO. 2, ON A CURVE TO THE LEFT, WITH A CHORD DIRECTION OF SOUTH 55°07'38" EAST, A CHORD DISTANCE OF 69.97 FEET, AN ARC LENGTH OF 70.03 FEET, AND A RADIUS OF 500.00 FEET; THENCE SOUTH 30°51'38" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 60.00 FEET; THENCE ON THE BOUNDARY OF SAID MAGNOLIA HILLS ESTATES NO. 2, ON A CURVE TO THE RIGHT, WITH A CHORD DIRECTION OF NORTH 57°20' 13" WEST, A CHORD DISTANCE OF 35.23 FEET, AN ARC LENGTH OF 35.23 FEET AND A RADIUS OF 560.00 FEET; THENCE SOUTH 37°32'11" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 150.39 FEET; THENCE SOUTH 68°09'58" EAST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 99.34 FEET; THENCE SOUTH 21 °50'02" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 145.00 FEET; THENCE SOUTH 28°34'27" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 60.42 FEET; THENCE SOUTH 21°50'02" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 137.48 FEET; THENCE SOUTH 68°09'58" EAST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 89.60 FEET; THENCE SOUTH 21 °50'02" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 60.70 FEET; THENCE SOUTH 89°25'55" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 93.80 FEET; THENCE SOUTH 00°34'05" EAST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 180.00 FEET; THENCE SOUTH 89°25'55" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 19.75 FEET; THENCE SOUTH 00°34'05" EAST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 175.00 FEET TO THE SOUTHEAST CORNER OF LOT 1, BLOCK 8, OF SAID MAGNOLIA HILLS ESTATES NO. 2; THENCE NORTH 89°25'55" EAST, A DISTANCE OF 1249.34 FEET TO THE EAST LINE OF SAID SOUTHEAST QUARTER; THENCE NORTH 00°28'27" WEST ON THE EAST LINE OF SAID SOUTHEAST QUARTER, A DISTANCE OF 1152.04 FEET TO THE POINT OF BEGINNING. SAID TRACT CONTAINS 29.61 ACRES MORE OR LESS. Less Tract 1.2 (Drainage Easement) A TRACT OF LAND IN THE SOUTHEAST QUARTER OF SECTION 29, TOWNSHIP 14 SOUTH, RANGE 2 WEST OF THE 6TH PRINCIPAL MERIDIAN, SALINE COUNTY, KANSAS, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SAID SOUTHEAST QUARTER, THENCE ON AN ASSUMED BEARING OF SOUTH 00° 28' 27" EAST ON THE EAST LINE OF SAID SOUTHEAST QUARTER, A DISTANCE OF 185.06 FEET TO THE POINT OF BEGINNING; THENCE SOUTH 00° 28' 27" EAST ON THE EAST LINE OF SAID SOUTHEAST QUARTER, A DISTANCE OF 256.56 FEET; THENCE SOUTH 89° 36' 54" WEST, A DISTANCE OF 143.52 FEET; THENCE NORTH 57° 52' 17" WEST, A DISTANCE OF 179.64 FEET; THENCE SOUTH 89° 36' 54" WEST, A DISTANCE OF 425.00 FEET; THENCE NORTH 49° 48' 18" WEST, A DISTANCE OF 145.45 FEET TO THE SOUTH LINE OF A TRACT OF LAND DESCRIBED IN DEED BOOK 1173, PAGE 1374; THENCE NORTH 89° 29' 31" EAST ON SAID SOUTH LINE, A DISTANCE OF 130.85 FEET; THENCE NORTH 00° 24' 52" WEST ON SAID SOUTH LINE, A DISTANCE OF 65.10 FEET; THENCE NORTH 89° 36' 54" EAST ON SAID SOUTH LINE, A DISTANCE OF 699.25 FEET TO THE POINT OF BEGINNING. SAID TRACT CONTAINS 3.22 ACRES MORE OR LESS. February 8, 2022 Property Owner: NOTICE OF HEARING AND STATEMENT OF COST PROPOSED TO BE ASSESSED You are hereby notified, as owner of record of a portion of the property described below, that there is proposed to be assessed against the property, certain amounts for the costs of the following internal improvements (the "Improvements") previously authorized by the governing body of the City of Salina, Kansas (the "City"): Magnolia Hills Estates No. 2 -Utility, Street, and Drainage Improvements Resolution No. 19-7760 The curb, gutter, pavement, and grading for approximately 817 lineal feet of Ridgehill Drive, 648 lineal feet of Stonepost Lane, 520 lineal feet of Huntwood Drive, 171 lineal feet of Mustang Lane, 86 lineal feet of Ridgewood Court and 116 lineal feet of Stebe Court (the "Street Improvements"). The installation of approximately 2,929 lineal feet of storm sewer pipe, inlets, manholes and all appurtenances thereto (the "Storm Drainage Improvements"). The installation of a detention basin and all appurtenances thereto (the "Detention Basin"). The installation of approximately 233 lineal feet of six-inch water main, 2,094 lineal feet of eight- inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 1,939 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). The installation of approximately 1,257 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Line A' Improvements"). (collectively, the "Improvements"), and all as more fully described in the detailed cost estimates attached to this Report. Property Description: See Attachment 1 hereto Cost of Improvements: The total costs of the Improvements to be assessed against the property in the Improvement District is $1,533,625.46 Apportionment of Cost: 100% of the cost of the Improvements shall be assessed to the Improvement District and 0% of the cost of the Improvements shall be paid by the city at large. Method of Assessment: The proposed amount of assessment against each lot in this improvement district is attached as Attachment 2. You are hereby further notified that the governing body of the City will meet on February 28, 2022, at 4:00 p.m., in the City Commission chambers of the City-County Building, 300 W. Ash Street, Room 107, Salina, Kansas, for the purpose of considering the proposed assessments. The detailed State of Final Costs and proposed Assessment Roll is on file in my office for public inspection. WRITTEN OR ORAL OBJECTIONS TO THE PROPOSED ASSESSMENTS WILL BE CONSIDERED AT THE PUBLIC HEARING. At the conclusion of the public hearing, the governing body of the City will consider an ordinance levying such special assessments. A subsequent Notice of Assessment will be mailed to affected property owners at that time indicating that each property owner may pay the assessment in whole or in part within thirty (30) days from the date of such notice. Any amount not so paid within the time period prescribed will be collected in annual installments of fifteen years, together with interest thereon at the rate obtained by the City for its general obligation bonds issued to finance the costs of the Improvements. [Signature] ATTACHMENT 1 MAGNOLIA HILLS ESTATES NO. 2 UTILITY, STREET, AND DRAINAGE IMPROVEMENTS PROPERTY DESCRIPTION Description of Property Lot 1, Block 1, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 1, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 3, Block 1, in the Ma1molia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 4, Block 1, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 2, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 2, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 3, Block 2, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 4, Block 2, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 3, in the Ma1molia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 3, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 4, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 5, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 6, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 7, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 8, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 9, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 10, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 11, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 12, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 13, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 14, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 4, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 3, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 4, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 5, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 6, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 7, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 8, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 9, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 6, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 6, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 3, Block 6, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 3, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 4, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 5, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 6, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 7, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 8, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 9, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 8, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Tract 1 A TRACT OF LAND LOCATED IN THE SOUTHEAST QUARTER OF SECTION 29, TOWNSHIP 14 SOUTH, RANGE 2 WEST OF THE 6TH P.M. IN SALINE COUNTY, KANSAS, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SAID SOUTHEAST QUARTER; THENCE ON AS ASSUMED BEARING OF SOUTH 00°28'27" EAST ON THE EAST LINE OF SAID SOUTHEAST QUARTER, A DISTANCE OF 185.06 FEET TO THE SOUTHEAST CORNER OF A PARCEL RECORDED IN SALINE COUNTY REGISTER OF DEEDS, BOOK 270, PAGE 308, SAID POINT ALSO BEING THE POINT OF BEGINNING; THENCE SOUTH 89°36'54" WEST ON THE SOUTH LINE OF SAID PARCEL, A DISTANCE OF 699.25 FEET; THENCE SOUTH 00°24'52" EAST ON A LINE OF SAID PARCEL, A DISTANCE OF 65.10 FEET; THENCE SOUTH 89°29'31" WEST ON THE SOUTH LINE OF SAID PARCEL, A DISTANCE OF 260.23 FEET TO THE EAST CORNER OF LOT 4, BLOCK 2, MAGNOLIA HILLS ESTATES NO. 2 TO THE CITY OF SALINA, SALINE COUNTY, KANSAS; THENCE SOUTH 42°47'49" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 139.73 FEET; THENCE ON THE BOUNDARY OF SAID MAGNOLIA HILLS ESTATES NO. 2, ON A CURVE TO THE LEFT, WITH A CHORD DIRECTION OF SOUTH 55°07'38" EAST, A CHORD DISTANCE OF 69.97 FEET, AN ARC LENGTH OF 70.03 FEET, AND A RADIUS OF 500.00 FEET; THENCE SOUTH 30°51'38" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 60.00 FEET; THENCE ON THE BOUNDARY OF SAID MAGNOLIA HILLS ESTATES NO. 2, ON A CURVE TO THE RIGHT, WITH A CHORD DIRECTION OF NORTH 57°20' 13" WEST, A CHORD DISTANCE OF 35.23 FEET, AN ARC LENGTH OF 35.23 FEET AND A RADIUS OF 560.00 FEET; THENCE SOUTH 37°32'11" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 150.39 FEET; THENCE SOUTH 68°09'58" EAST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 99.34 FEET; THENCE SOUTH 21 °50'02" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 145.00 FEET; THENCE SOUTH 28°34'27" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 60.42 FEET; THENCE SOUTH 21 °50'02" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 137.48 FEET; THENCE SOUTH 68°09'58" EAST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 89.60 FEET; THENCE SOUTH 21°50'02" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 60.70 FEET; THENCE SOUTH 89°25'55" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 93.80 FEET; THENCE SOUTH 00°34'05" EAST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 180.00 FEET; THENCE SOUTH 89°25'55" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 19.75 FEET; THENCE SOUTH 00°34'05" EAST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 175.00 FEET TO THE SOUTHEAST CORNER OF LOT 1, BLOCK 8, OF SAID MAGNOLIA HILLS ESTATES NO. 2; THENCE NORTH 89°25'55" EAST, A DISTANCE OF 1249.34 FEET TO THE EAST LINE OF SAID SOUTHEAST QUARTER; THENCE NORTH 00°28'27" WEST ON THE EAST LINE OF SAID SOUTHEAST QUARTER, A DISTANCE OF 1152.04 FEET TO THE POINT OF BEGINNING. SAID TRACT CONTAINS 29.61 ACRES MORE OR LESS. Less Tract 1.2 (Drainage Easement) A TRACT OF LAND IN THE SOUTHEAST QUARTER OF SECTION 29, TOWNSHIP 14 SOUTH, RANGE 2 WEST OF THE 6TH PRINCWAL MERIDIAN, SALINE COUNTY, KANSAS, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SAID SOUTHEAST QUARTER, THENCE ON AN ASSUMED BEARING OF SOUTH 00° 28' 27" EAST ON THE EAST LINE OF SAID SOUTHEAST QUARTER, A DISTANCE OF 185.06 FEET TO THE POINT OF BEGINNING; THENCE SOUTH 00° 28' 27" EAST ON THE EAST LINE OF SAID SOUTHEAST QUARTER, A DISTANCE OF 256.56 FEET; THENCE SOUTH 89° 36' 54" WEST, A DISTANCE OF 143.52 FEET; THENCE NORTH 57° 52' 17'' WEST, A DISTANCE OF 179.64 FEET; THENCE SOUTH 89° 36' 54" WEST, A DISTANCE OF 425.00 FEET; THENCE NORTH 49° 48' 18" WEST, A DISTANCE OF 145.45 FEET TO THE SOUTH LINE OF A TRACT OF LAND DESCRIBED IN DEED BOOK 1173, PAGE 1374; THENCE NORTH 89° 29' 31" EAST ON SAID SOUTH LINE, A DISTANCE OF 130.85 FEET; THENCE NORTH 00° 24' 52" WEST ON SAID SOUTH LINE, A DISTANCE OF 65.10 FEET; THENCE NORTH 89° 36' 54" EAST ON SAID SOUTH LINE, A DISTANCE OF 699.25 FEET TO THE POINT OF BEGINNING. SAID TRACT CONTAINS 3.22 ACRES MORE OR LESS. ATTACHMENT 2 MAGNOLIA HILLS ESTATES NO. 2 UTILITY, STREET, AND DRAINAGE IMPROVEMENTS DISTRIBUTION OF ASSESSMENTS Description of Property Lot 1, Block 1, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 1, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 3, Block 1, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 4, Block 1, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 2, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 2, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 3, Block 2, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 4, Block 2, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 3, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 4, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 5, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 6, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 7, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 8, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 9, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 10, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 11, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 12, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 13, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 14, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 4, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 3, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 4, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 5, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 6, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 7, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 8, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 9, Block 5, in the Magnolia Hills·Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 6, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Amount of Proposed Assessment $42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 2,935.45 2,935.45 2,935.45 2,935.45 42,524.32 Lot 2, Block 6, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 13,131.70 Lot 3, Block 6, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Lot 1, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Lot 2, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Lot 3, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Lot 4, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Lot 5, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Lot 6, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Lot 7, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Lot 8, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Lot 9, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Lot 1, Block 8, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Tract 1 A TRACT OF LAND LOCATED IN THE SOUTHEAST QUARTER OF SECTION 29, TOWNSHIP 14 SOUTH, RANGE 2 WEST OF THE 6TH P.M. IN SALINE COUNTY, KANSAS, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SAID SOUTHEAST QUARTER; THENCE ON AS ASSUMED BEARING OF SOUTH 00°28'27" EAST ON THE EAST LINE OF SAID SOUTHEAST QUARTER, A DISTANCE OF 185.06 FEET TO THE SOUTHEAST CORNER OF A PARCEL RECORDED IN SALINE COUNTY REGISTER OF DEEDS, BOOK 270, PAGE 308, SAID POINT ALSO BEING THE POINT OF BEGINNING; THENCE SOUTH 89°36'54" WEST ON THE SOUTH LINE OF SAID PARCEL, A DISTANCE OF 699.25 FEET; THENCE SOUTH 00°24'52" EAST ON A LINE OF SAID PARCEL, A DISTANCE OF 65.10 FEET; THENCE SOUTH 89°29'31" WEST ON THE SOUTH LINE OF SAID PARCEL, A DISTANCE OF 260.23 FEET TO THE EAST CORNER OF LOT 4, BLOCK 2, MAGNOLIA HILLS ESTATES NO. 2 TO THE CITY OF SALINA, SALINE COUNTY, KANSAS; THENCE SOUTH 42°47'49" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 139.73 FEET; THENCE ON THE BOUNDARY OF SAID MAGNOLIA HILLS ESTATES NO. 2, ON A CURVE TO THE LEFT, WITH A CHORD DIRECTION OF SOUTH 55°07'38" EAST, A CHORD DISTANCE OF 69.97 FEET, AN ARC LENGTH OF 70.03 FEET, AND A RADIUS OF 500.00 FEET; THENCE SOUTH 30°51'38" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 60.00 FEET; THENCE ON THE BOUNDARY OF SAID MAGNOLIA HILLS ESTATES NO. 2, ON A CURVE TO THE RIGHT, WITH A CHORD DIRECTION OF NORTH 57°20' 13" WEST, A CHORD DISTANCE OF 35.23 FEET, AN ARC LENGTH OF 35.23 FEET AND A RADIUS OF 560.00 FEET; THENCE SOUTH 37°32'11" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 150.39 FEET; THENCE SOUTH 68°09'58" EAST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 99.34 FEET; THENCE SOUTH 21°50'02" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 145.00 FEET; THENCE SOUTH 28°34'27" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 60.42 FEET; THENCE SOUTH 21 °50'02" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 137.48 FEET; THENCE SOUTH 68°09'58" EAST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 89.60 FEET; THENCE SOUTH 21 °50'02" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTA TES NO. 2, A DISTANCE OF 60.70 FEET; THENCE SOUTH 89°25 '55" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 93.80 FEET; THENCE SOUTH 00°34'05" EAST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 180.00 FEET; THENCE SOUTH 89°25'55" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 19.75 FEET; THENCE SOUTH 00°34'05" EAST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 175.00 FEET TO THE SOUTHEAST CORNER OF LOT 1, BLOCK 8, OF SAID MAGNOLIA HILLS ESTATES NO. 2; THENCE NORTH 89°25'55" EAST, A DISTANCE OF 1249.34 FEET TO THE EAST LINE OF SAID SOUTHEAST QUARTER; THENCE NORTH 00°28'27" WEST ON THE EAST LINE OF SAID SOUTHEAST QUARTER, A DISTANCE OF 1152.04 FEET TO THE POINT OF BEGINNING. SAID TRACT CONTAINS 29.61 ACRES MORE OR LESS. 243,256.73 Less Tract 1.2 {Drainage Easement) A TRACT OF LAND IN THE SOUTHEAST QUARTER OF SECTION 29, TOWNSHIP 14 SOUTH, RANGE 2 WEST OF THE 6TH PRINCIPAL MERIDIAN, SALINE COUNTY, KANSAS, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SAID SOUTHEAST QUARTER, THENCE ON AN ASSUMED BEARING OF SOUTH 00° 28' 27" EAST ON THE EAST LINE OF SAID SOUTHEAST QUARTER, A DISTANCE OF 185.06 FEET TO THE POINT OF BEGINNING; THENCE SOUTH 00° 28' 27" EAST ON THE EAST LINE OF SAID SOUTHEAST QUARTER, A DISTANCE OF 256.56 FEET; THENCE SOUTH 89° 36' 54" WEST, A DISTANCE OF 143.52 FEET; THENCE NORTH 57° 52' 17" WEST, A DISTANCE OF 179.64 FEET; THENCE SOUTH 89° 36' 54" WEST, A DISTANCE OF 425.00 FEET; THENCE NORTH 49° 48' 18" WEST, A DISTANCE OF 145.45 FEET TO THE SOUTH LINE OF A TRACT OF LAND DESCRIBED IN DEED BOOK 1173, PAGE 1374; THENCE NORTH 89° 29' 31" EAST ON SAID SOUTH LINE, A DISTANCE OF 130.85 FEET; THENCE NORTH 00° 24' 52" WEST ON SAID SOUTH LINE, A DISTANCE OF 65.10 FEET; THENCE NORTH 89° 36' 54" EAST ON SAID SOUTH LINE, A DISTANCE OF 699.25 FEET TO THE POINT OF BEGINNING. SAID TRACT CONTAINS 3.22 ACRES MORE OR LESS. Total Assessment $1,533,625.46 February 8, 2022 Property Owner: NOTICE OF HEARING AND STATEMENT OF COST PROPOSED TO BE ASSESSED You are hereby notified, as owner of record of a portion of the property described below, that there is proposed to be assessed against the property, certain amounts for the costs of the following internal improvements (the "Improvements") previously authorized by the governing body of the City of Salina, Kansas (the "City"): Stone Lake Addition, Phase 3a-Water, Sanitary Sewer and Street Improvements Resolution No. 19-7751 The curb, gutter, pavement, and grading for approximately 898 lineal feet of Shoreline Drive, 1,311 lineal feet of Wet Stone Drive, 230 lineal feet of Wet Stone Port and 120 lineal feet of Wet Stone Cove (the "Street Improvements"). The installation of approximately 1,025 lineal feet of storm sewer main, inlets and all appurtenances thereto (the "Storm Sewer Improvements"). The installation of approximately 2,113 lineal feet of eight-inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 2,546 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). (collectively, the "Improvements"). Property Description: Block 1, Lots 1 through 7, lots 22 through 26, Block 2, lots 1 through 2, lots 12 through 24, and Block 3, Lots through 19, all in Stone Lake Addition to the City of Salina, Saline County, Kansas. Apportionment of Cost: 100% of the cost of the Improvements shall be assessed to the Improvement District and 0% of the cost of the Improvements shall be paid by the city at large. The proposed amount of assessment against each lot in this improvement district is as follows: Description of Property Amount of Proposed Assessment Lot 1, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas $29,381.57 Lot 2, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 3, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 4, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 5, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 6, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 7, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 6,440.80 Lot 22, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 6,440.80 Lot 23, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline Countv, Kansas 29,381.57 Lot 24, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 25, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 26, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 1, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 2, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 6,440.80 Lot 12, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 13, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 14, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 15, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 16, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 17, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 18, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 19, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 20, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 21, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 22, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 23, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 24, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 2, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 3, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 4, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 5, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 6, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 7, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 8, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 9, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 10, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 11, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 12, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 13, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 14, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 15, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 16, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline Countv, Kansas 29,381.56 Lot 17, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 18, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 19, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline Countv, Kansas 29,381.56 Total Assessment $1.253,348.17 NOTICE OF HEARING AND STATEMENT OF COST PROPOSED TO BE ASSESSED February 8, 2022 Property Owner: You are hereby notified, as owner of record of a portion of the property described below, that there is proposed to be assessed against the property, certain amounts for the costs of the following internal improvements (the "Improvements") previously authorized by the governing body of the City of Salina, Kansas (the "City"): MAGNOLIA HILLS EST A TES NO. 2 -Markley Road Trail Improvements Resolution No. The excavation, sidewalk ramps, pavement and grading for approximately 2,181 square yards of a ten foot wide concrete multi-modal trail along Markley Road. (the "Improvements") Property Description Magnolia Hills Estates # 2 Block 1, Lots 1 through 4, Block 2, Lots 1 through 4, Block 3, Lots 1 through 14, Block 4, Lot 1, Block 5, Lots 1 through 9, Block 6, Lots 1 through 3, Block 7, Lots 1 through 9, Block 8, Lot 1, all in Magnolia Hills Estates No. 2 to the City of Salina, Saline County, Kansas. (the "Improvement District"). Cost of Improvements: The total cost of the Improvements is $158,733.19. Apportionment of Cost: 16.1 % of the cost of the Improvements shall be assessed to the Improvement District on an equal per lot basis and 83.9% of the cost of the Improvements shall be paid by the city at large. " Th e propose d t f amoun o assessmen aeams eac om IS Improvemen t ' t h I t' th' ' s nc Is as o tdit't' fi II ows: Amount of Description of Property Proposed Assessment Lot 1, Block 1, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas $567.91 Lot 2, Block 1, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 3, Block 1, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 4, Block 1, in the Magnolia Hills Estates No. 2, City of Salina, Saline Countv, Kansas 567.91 Lot 1, Block 2, in the Maimolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 2, Block 2, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 3, Block 2, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 4, Block 2, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 1, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 2, Block 3, in the Magn olia Hills Estates No. 2, City of Salina, Saline Countv, Kansas 567.91 Lot 3, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 4, Block 3, in the Ma!molia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 5, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 6, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 7, Block 3, in the Mrumolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 8, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 9, Block 3, in the Ma!molia Hills Estates No. 2, City of Salina, Saline Countv, Kansas 567.91 Lot 10, Block 3, in the Magn olia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 11, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 12, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 13, Block 3, in the Ma!molia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 14, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 1, Block 4, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 1, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 2, Block 5, in the Maimolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 3, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 4, Block 5, in the Ma.irnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 5, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 6, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 7, Block 5, in the Mam olia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 8, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 9, Block 5, in the Magnolia Hills Estates No. 2, Citv of Salina, Saline County, Kansas 567.91 Lot 1, Block 6, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 2, Block 6, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 3, Block 6, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 1, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 2, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline Countv, Kansas 567.92 Lot 3, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.92 Lot 4, Block 7, in the Marnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.92 Lot 5, Block 7, in the Marnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.92 Lot 6, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.92 Lot 7, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.92 Lot 8, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.92 Lot 9, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.92 Lot 1, Block 8, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.92 Total Assessments = $25,556.04 You are hereby further notified that the governing body of the City will meet on February 28, 2022, at 4:00 p.m., in the City Commission chambers of the City-County Building, 300 W. Ash Street, Room 107, Salina, Kansas, for the purpose of considering the proposed assessments. The detailed State of Final Costs and proposed Assessment Roll is on file in my office for public inspection. WRITTEN OR ORAL OBJECTIONS TO THE PROPOSED ASSESSMENTS WILL BE CONSIDERED AT THE PUBLIC HEARING. At the conclusion of the public hearing, the governing body of the City will consider an ordinance levying such special assessments. A subsequent Notice of Assessment will be mailed to affected property owners at that time indicating that each property owner may pay the assessment in whole or in part within thirty (30) days from the date of such notice. Any amount not so paid within the time period prescribed will be collected in annual installments of fifteen years, together with interest thereon at the rate obtained by the City for its general obligation bonds issued to finance the costs of the Improvements. [signature] NOTICE OF ASSESSMENT March _, 2021 Property Owner: You are hereby notified, as owner of record of the following property: [insert property description] that according to the notice mailed to you on February _, 2022 concerning an assessment against the above-described property for the public improvements previously authorized by the governing body of the City and following the meeting held on February 28, 2022 to hear objections to the proposed assessment, the City Commission has adopted Ordinance No. 22-levying assessments in the amount of$ ____ against this property. You may pay this assessment in whole or in part to the City Treasurer on or before April 1, 2022. If any amounts remain unpaid after April 1, 2022, the City will issue bonds to finance the assessments. The balance of any unpaid assessment will be collected as an assessment against the above-described property, in annual installments levied over fifteen years, together with interest on such amounts at a rate not exceeding that permitted by law. The interest rate is expected to be equal to the rate on bonds originally issued by the City to finance the assessments. Debbie Pack, Director of Finance/Administration LOCALIQ The Garden City Telegram The Hays Dally News I Salina Journal The Hutchinson News I The Ottawa Herald PROOF OF PUBLICATION City of Salina City Clerk Po Box 736 Salina KS 67402-0736 STATE OF WISCONSIN, COUNTY OF BROWN The Salina Journal, a dally newspaper published at Salina, Saline County, Kansas, and of general circulation in said county, and continuously and uninterruptedly published for five consecutive years prior to first publication of attached notice. That the attachment hereto contains a true and correct copy of what was actually published in said newspaper in the issue dated: 02/11/2022 Sworn to and subscribed before on 02/11/2022 My commision expires Publication Cost $19.72 Order No: 6911036 Customer No: 594307 PO#: # of Copies: -1 THIS IS NOT AN INVOICE! Please do not use this form for payment re111ittc111ce. VICKY FELTY Notary Public State of Wisconsin "--------·- PO Box 631367 Cincinnati, OH 45263-1367 Page 1 of 1 !)Alm: Fobnwy 7, 2022 ~flod,.t)i,eQQl'r/flnanoli/Atlmln!Jlr~ El<Hll'1A MflGtlOUA HILU EST"Te&NO, 2 VTUTY, Gmm, AfilD DRAINME'. IMPROVl!:ll!llf;NT.S ""ONRn'DEsOAlf'TION ,-------~-------== ==--~-------, ,.. "' Ji'.L~J:tUlt---------__ _ CERTIFICATE OF MAILING STATE OF KANSAS ) ) ss: COUNTY OF SALINE ) The undersigned, Director of Finance/Administration of the City of Salina, Kansas (the "City"), does hereby certify that on February 8, 2022, I caused to be mailed to each and all of the owners of property affected thereby, at their last known post office address, a Notice of Public Hearing and Statement of the Cost Proposed to be Assessed in connection with certain improvements in the City. A sample copy of the form of such Notice of Hearing and Statement of Cost Proposed to be Assessed is attached hereto. -WITNESS my,hand and seal as of Fi JQ/dNf g , 2022. Debbie Pack, Director of Finance/Administration [attach sample copy of form] February 8, 2022 Property Owner: NOTICE OF HEARING AND STATEMENT OF COST PROPOSED TO BE ASSESSED You are hereby notified, as owner of record of a portion of the property described below, that there is proposed to be assessed against the property, certain amounts for the costs of the following internal improvements (the "Improvements") previously authorized by the governing body of the City of Salina, Kansas (the "City"): Stone Lake Addition, Phase 3a-Water, Sanitary Sewer and Street Improvements Resolution No.19-7751 The curb, gutter, pavement, and grading for approximately 898 lineal feet of Shoreline Drive, 1,311 lineal feet of Wet Stone Drive, 230 lineal feet of Wet Stone Port and 120 lineal feet of Wet Stone Cove (the "Street Improvements"). The installation of approximately 1,025 lineal feet of storm sewer main, inlets and all appurtenances thereto (the "Storm Sewer Improvements"). The installation of approximately 2,113 lineal feet of eight-inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 2,546 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). (collectively, the "Improvements"). Property Description: Block 1, Lots 1 through 7, lots 22 through 26, Block 2, lots 1 through 2, lots 12 through 24, and Block 3, Lots through 19, all in Stone Lake Addition to the City of Salina, Saline County, Kansas. Apportionment of Cost: 100% of the cost of the Improvements shall be assessed to the Improvement District and 0% of the cost of the Improvements shall be paid by the city at large. The proposed amount of assessment against each lot in this improvement district is as follows: Description of Property Amount of Proposed Assessment Lot 1, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas $29,381.57 Lot 2, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 3, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 4, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 5, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 6, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 7, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 6,440.80 Lot 22, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 6,440.80 Lot 23, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 24, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 25, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 26, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 1, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 2, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 6,440.80 Lot 12, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 13, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 14, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 15, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 16, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 17, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 18, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 19, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 20, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 21, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 22, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 23, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 24, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 2, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.57 Lot 3, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 4, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 5, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 6, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 7, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 8, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 9, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 10, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 11, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 12, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 13, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 14, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 15, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 16, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 17, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 18, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Lot 19, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas 29,381.56 Total Assessment $1,253,348.17 EXCERPT OF MINUTES OF A MEETING OF THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS HELD ON FEBRUARY 7, 2022 The governing body met in regular session at the usual meeting place in the City at 4:00 p.m., the following members being present and participating, to-wit: Present: Mayor TRENT W. DA VIS, M.D., Commissioners MICHAEL L. HOPPOCK, GREG LENKIEWICZ, BILL LONGBINE and KARL RY AN Absent: None. The Mayor declared that a quorum was present and called the meeting to order. ************** (Other Proceedings) Thereupon, there was presented for first reading an Ordinance entitled: AN ORDINANCE LEVYING SPECIAL ASSESSMENTS ON CERTAIN PROPERTY TO PAY THE COSTS OF INTERNAL IMPROVEMENTS IN THE CITY OF SALINA, KANSAS; AND PROVIDING FOR THE COLLECTION OF SUCH SPECIAL ASSESSMENTS. Thereupon, Commissioner KARL RY AN moved that said Ordinance be approved on first reading. The motion was seconded by Commissioner BILL LONGBINE. The Ordinance was duly read and considered, and upon being put, the motion for approval was carried by the vote of the governing body as follows: Yea: TRENT W. DAVIS, M.D., MICHAEL L. HOPPOCK, GREG LENKIEWICZ, BILL LONGBINE, KARL RY AN. Nay: None. ************** (Other Proceedings) [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] CERTIFICATE I hereby certify that the foregoing Excerpt of Minutes is a true and correct excerpt of the proceedings of the govemi11g .l?ody. pf JP~. City of Salina, Kansas held on the date stated therein, and that the official minutes of such proceeding~are on file in my office. (SEAL) JoVo (Signature page to Excerpt of Minutes) EXCERPT OF MINUTES OF A MEETING OF THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS HELD ON FEBRUARY 28, 2022 The governing body met in regular session at the usual meeting place in the City at 4:00 p.m., the following members being present and participating, to-wit: Present: Mayor TRENT W. DA VIS, M.D., Commissioners MICHAEL L. HOPPOCK, GREG LENKIEWICZ, BILL LONGBINE and KARL RY AN Absent: None. Commissioner MICHAEL L. HOPPOCK recused himself from the meeting. The Mayor declared that a quorum was present and called the meeting to order. ************** (Other Proceedings) The Mayor opened a public hearing for the purpose of receiving written or oral objections and considering proposed assessments for the costs of certain internal improvements previously authorized by the governing body of the City. It was determined by the governing body that notice of the public hearing was duly published and mailed in accordance with K.S.A. 12-6a01 et seq. Thereafter, the Mayor adjourned the public hearing. Thereupon, there was presented for second reading an Ordinance entitled: AN ORDINANCE LEVYING SPECIAL ASSESSMENTS ON CERTAIN PROPERTY TO PAY THE COSTS OF INTERNAL IMPROVEMENTS IN THE CITY OF SALINA, KANSAS; AND PROVIDING FOR THE COLLECTION OF SUCH SPECIAL ASSESSMENTS. Thereupon, Commissioner KARL RYAN moved that the Ordinance be passed. The motion was seconded by Commissioner GREG LENKIEWICZ. The Ordinance, having been approved by a first reading on February 7, 2022, was duly read and considered, and upon being put, the motion for the passage of said Ordinance was carried by the vote of the governing body as follows: Yea: TRENT W. DAVIS, M.D., GREG LENKIEWICZ, BILL LONGBINE, KARL RY AN. Nay: None. Thereupon, a majority of the members of the governing body having voted in favor of the passage of the Ordinance, it was given No. 22-11100, was approved and signed by the Mayor and attested by the City Clerk, and the City Clerk was ordered to cause the Ordinance or a summary thereof to be published one time in the official City newspaper as required by law, and to cause to be mailed a Notice of Assessment to each and all of the known property owners affected thereby on the same date that the Ordinance or summary thereof is published. CERTIFICATE I hereby certify that the foregoing Excerpt of Minutes is a true and correct excerpt of the proceedings of the governing body of the City of Salina, Kansas held on the date stated therein, and that the official minutes of such proceedings are on file in my office. ,.. . (SEAL) J i (Signature page to Excerpt of Minutes) ORDINANCE NO. 22-11100 AN ORDINANCE LEVYING SPECIAL ASSESSMENTS ON CERTAIN PROPERTY TO PAY THE COSTS OF INTERNAL IMPROVEMENTS IN THE CITY OF SALINA, KANSAS; AND PROVIDING FOR THE COLLECTION OF SUCH SPECIAL ASSESSMENTS. WHEREAS, the governing body of the City of Salina, Kansas (the "City") has previously authorized certain internal improvements (the "Improvements") to be constructed pursuant to K.S.A. 12- 6a01 et seq. (the "Act"); and WHEREAS, the governing body on this date has conducted a public hearing in accordance with the Act related to the improvement districts further described below, and desires to levy assessments on certain property benefited by the construction of such Improvements. NOW, THEREFORE, BE IT ORDAINED BY fflE GOVERNING BODY OF THE CITY OF SALINA, KANSAS: Section 1. provide as follows: Amendment. Section l(e) of Resolution No. 19-7751 is hereby amended to The method of assessment against property within the Improvement District shall be equally per lot for all lots within the Improvement District benefiting from the respective Improvements. Section 2. Levy of Assessments. For the purpose of paying the costs of the following described Improvements: Magnolia Hills Estates No. 2-Utility, Street, and Drainage Improvements Resolution No. 19-7760 The curb, gutter, pavement, and grading for approximately 817 lineal feet of Ridgehill Drive, 648 lineal feet of Stonepost Lane, 520 lineal feet of Huntwood Drive, 171 lineal feet of Mustang Lane, 86 lineal feet of Ridgewood Court and 116 lineal feet of Stebe Court (the "Street Improvements"). The installation of approximately 2,929 lineal feet of storm sewer pipe, inlets, manholes and all appurtenances thereto (the "Storm Drainage Improvements"). The installation of a detention basin and all appurtenances thereto (the "Detention Basin"). The installation of approximately 233 lineal feet of six-inch water main, 2,094 lineal feet of eight- inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 1,939 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). The installation of approximately 1,257 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Line A' Improvements"). (collectively, the "Improvements"), and all as more fully described in the detailed cost estimates attached to this Report. Stone Lake Addition, Phase 3a-Water, Sanitary Sewer and Street hnprovements Resolution No. 19-7751 The curb, gutter, pavement, and grading for approximately 898 lineal feet of Shoreline Drive, 1,311 lineal feet of Wet Stone Drive, 230 lineal feet of Wet Stone Port and 120 lineal feet of Wet Stone Cove (the "Street Improvements"). The installation of approximately 1,025 lineal feet of storm sewer main, inlets and all appurtenances thereto (the "Storm Sewer Improvements"). The installation of approximately 2,113 lineal feet of eight-inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 2,546 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). (collectively, the "Improvements"). MAGNOLIA HILLS ESTATES NO. 2-Markley Road Trail Improvements Resolution No. 21-7957 The excavation, sidewalk ramps, pavement and grading for approximately 2,181 square yards of a ten foot wide concrete multi-modal trail along Markley Road. (the "Improvements"), there are hereby levied and assessed the amounts (with such clerical or administrative amendments thereto as may be approved by the City Attorney) against the property described on Exhibit A attached hereto. Section 3. Payment of Assessments. The amounts so levied and assessed in Section 2 hereof shall be due and payable from and after the date of publication of this Ordinance. Such amounts may be paid in whole or in part within thirty (30) days from the date of publication of this Ordinance; provided, however, that the owner of the unplatted Tract 1 described in Resolution 19-7760 has requested a deferral of the special assessments levied on said tract hereunder; said tract qualifies under K.S.A. 12- 6,110 et seq. for a deferral of special assessments; and the City hereby grants a deferral of the special assessments levied hereunder on said tract for a period of 15 years or until such property is platted or developed, whichever occurs first. 2 Section 4. Notification. The City Clerk shall notify the owners of the properties described in Exhibit A attached hereto (insofar as known to the City Clerk) of the amounts of their respective assessments. The notice shall also state that unless such assessments are paid within thirty (30) days from the date of publication of this Ordinance, bonds will be issued therefor, and the amount of such assessment will be collected in installments with interest. Section 5. Certification. Any amount of special assessments not paid within the time prescribed in Section 2 hereof shall be certified by the City Clerk to the Clerk of Saline County, Kansas, in the same manner and at the same time as other taxes are certified and will be collected in annual installments over fifteen (15) years, together with interest on such amounts at a rate not exceeding the maximum rate therefor as prescribed by the Act. Interest on the assessed amount remaining unpaid between the effective date of this Ordinance and the date the first installment is payable, but not less than the amount of interest due during the coming year on any outstanding bonds issued to finance the Improvements, shall be added to the first installment. The interest for one year on all unpaid installments shall be added to each subsequent installment until paid. Section 6. Effective Date. This Ordinance shall take effect and be in force from and after its passage, approval and publication of the Ordinance or a summary thereof once in the official City newspaper. 3 .-, PASSEl),.~_,goveming-body of the City on February 28, 2022 and signed and APPROVED AND SIGNED by the Mayor. (SEAL) EXHIBIT A MAGNOLIA HILLS ESTATES NO. 2 UTILITY, STREET AND DRAINAGE IMPROVEMENTS RESOLUTION NO. 19-7760 COLLECTED IN FIFTEEN (15) INSTALLMENTS Description of Property Lot 1, Block 1, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 1, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 3, Block 1, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 4, Block 1, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 2, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 2, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 3, Block 2, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 4, Block 2, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 3, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 4, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 5, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 6, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 7, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 8, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 9, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 10, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 11, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 12, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 13, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 14, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 4, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 3, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 4, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 5, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 6, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 7, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 8, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Assessment $42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 42,524.32 2,935.45 2,935.45 2,935.45 Lot 9, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Lot 1, Block 6, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 42,524.32 Lot 2, Block 6, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 13,131.70 Lot 3, Block 6, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Lot 1, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Lot 2, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Lot 3, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Lot 4, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Lot 5, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Lot 6, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Lot 7, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Lot 8, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Lot 9, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Lot 1, Block 8, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 2,935.45 Tract 1 A TRACT OF LAND LOCATED IN THE SOUTHEAST QUARTER OF SECTION 29, TOWNSHIP 14 SOUTH, RANGE 2 WEST OF THE 6TH P.M. IN SALINE COUNfY, KANSAS, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SAID SOUTHEAST QUARTER; THENCE ON AS ASSUMED BEARING OF SOUTH 00°28'27" EAST ON THE EAST LINE OF SAID SOUTHEAST QUARTER, A DISTANCE OF 185.06 FEET TO THE SOUTHEAST CORNER OF A PARCEL RECORDED IN SALINE COUNfY REGISTER OF DEEDS, BOOK 270, PAGE 308, SAID POINT ALSO BEING THE POINT OF BEGINNING; THENCE SOUTH 89°36'54" WEST ON THE SOUTH LINE OF SAID PARCEL, A DISTANCE OF 699.25 FEET; THENCE SOUTH 00°24'52" EAST ON A LINE OF SAID PARCEL, A DISTANCE OF 65.10 FEET; THENCE SOUTH 89°29'31" WEST ON THE SOUTH LINE OF SAID PARCEL, A DISTANCE OF 260.23 FEET TO THE EAST CORNER OF LOT 4, BLOCK 2, MAGNOLIA HILLS ESTATES NO. 2 TO THE CITY OF SALINA, SALINE COUNTY, KANSAS; THENCE SOUTH 42°47'49" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 139.73 FEET; THENCE ON THE BOUNDARY OF SAID MAGNOLIA HILLS ESTATES NO. 2, ON A CURVE TO THE LEFT, WITH A CHORD DIRECTION OF SOUTH 55°07'38" EAST, A CHORD DISTANCE OF 69.97 FEET, AN ARC LENGTH OF 70.03 FEET, AND A RADIUS OF 500.00 FEET; THENCE SOUTH 30°51 '38" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 60.00 FEET; THENCE ON THE BOUNDARY OF SAID MAGNOLIA HILLS ESTATES NO. 2, ON A CURVE TO THE RIGHT, WITH A CHORD DIRECTION OF NORTH 57°20' 13" WEST, A CHORD DISTANCE OF 35.23 FEET, AN ARC LENGTH OF 35.23 FEET AND A RADIUS OF 560.00 FEET; THENCE SOUTH 37°32'11" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 150.39 FEET; THENCE SOUTH 68°09'58" EAST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 99.34 FEET; THENCE SOUTH 21°50'02" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 145.00 FEET; THENCE SOUTH 28°34'27" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 60.42 FEET; THENCE SOUTH 21°50'02" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 137.48 FEET; THENCE SOUTH 68°09'58" EAST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 89.60 FEET; THENCE SOUTH 21°50'02" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 60.70 FEET; THENCE SOUTH 89°25'55" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 93.80 FEET; THENCE SOUTH 00°34'05" EAST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 180.00 FEET; THENCE SOUTH 89°25'55" WEST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 19.75 FEET; THENCE SOUTH 00°34'05" EAST ON THE EAST LINE OF SAID MAGNOLIA HILLS ESTATES NO. 2, A DISTANCE OF 175.00 FEET TO THE SOUTHEAST CORNER OF LOT 1, BLOCK 8, OF SAID MAGNOLIA HILLS ESTATES NO. 2; THENCE NORTH 89°25'55" EAST, A DISTANCE OF 1249.34 FEET TO THE EAST LINE OF SAID SOUTHEAST QUARTER; THENCE NORTH 00°28'27" WEST ON THE EAST LINE OF SAID SOUTHEAST QUARTER, A 243,256.73 DISTANCE OF 1152.04 FEET TO THE POINT OF BEGINNING. SAID TRACT CONTAINS 29.61 ACRES MORE OR LESS. Less Tract 1.2 {Drainage Easement) A TRACT OF LAND IN IBE SOUIBEAST QUARTER OF SECTION 29, TOWNSHIP 14 SOUTH, RANGE 2 WEST OF THE 6TH PRINCIPAL MERIDIAN, SALINE COUNTY, KANSAS, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SAID SOUIBEAST QUARTER, IBENCE ON AN ASSUMED BEARING OF SOUIB 00° 28' 27" EAST ON THE EAST LINE OF SAID SOUTHEAST QUARTER, A DISTANCE OF 185.06 FEET TO IBE POINT OF BEGINNING; THENCE SOUTH 00° 28' 27" EAST ON IBE EAST LINE OF SAID SOUIBEAST QUARTER, A DISTANCE OF 256.56 FEET; IBENCE SOUIB 89° 36' 54" WEST, A DISTANCE OF 143.52 FEET; THENCE NORTH 57° 52' 17" WEST, A DISTANCE OF 179.64 FEET; THENCE SOUIB 89° 36' 54" WEST, A DISTANCE OF 425.00 FEET; THENCE NORTH 49° 48' 18" WEST, A DISTANCE OF 145.45 FEET TO IBE SOUIB LINE OF A TRACT OF LAND DESCRIBED IN DEED BOOK 1173, PAGE 1374; THENCE NORTH 89° 29' 31" EAST ON SAID SOUIB LINE, A DISTANCE OF 130.85 FEET; THENCE NORTH 00° 24' 52" WEST ON SAID SOUTH LINE, A DISTANCE OF 65.10 FEET; THENCE NORTH 89° 36' 54" EAST ON SAID SOUTH LINE, A DISTANCE OF 699.25 FEET TO THE POINT OF BEGINNING. SAID TRACT CONTAINS 3.22 ACRES MORE OR LESS. Total Assessment $1,533.625.46 STONE LAKE ADDITION, PHASE 3A WATER, SANITARY SEWER AND STREET IMPROVEMENTS RESOLUTION NO.19-7751 COLLECTED IN FIFTEEN (15) INSTALLMENTS Description of Property Lot 1, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 2, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 3, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 4, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 5, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 6, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 7, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 22, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 23, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 24, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 25, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 26, Block 1, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 1, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 2, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 12, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 13, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 14, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 15, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 16, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 17, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Lot 18, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, Kansas Assessment $29,381.57 29,381.57 29,381.57 29,381.57 29,381.57 29,381.57 6,440.80 6,440.80 29,381.57 29,381.57 29,381.57 29,381.57 29,381.57 6,440.80 29,381.57 29,381.57 29,381.57 29,381.57 29,381.57 29,381.57 29,381.57 Lot 19, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, 29,381.57 Kansas Lot 20, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, 29,381.57 Kansas Lot 21, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, 29,381.57 Kansas Lot 22, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, 29,381.57 Kansas Lot 23, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, 29,381.57 Kansas Lot 24, Block 2, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, 29,381.57 Kansas Lot 2, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, 29,381.57 Kansas Lot 3, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, 29,381.56 Kansas Lot 4, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, 29,381.56 Kansas Lot 5, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, 29,381.56 Kansas Lot 6, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, 29,381.56 Kansas Lot 7, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, 29,381.56 Kansas Lot 8, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, 29,381.56 Kansas Lot 9, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, 29,381.56 Kansas Lot 10, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, 29,381.56 Kansas Lot 11, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, 29,381.56 Kansas Lot 12, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, 29,381.56 Kansas Lot 13, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, 29,381.56 Kansas Lot 14, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, 29,381.56 Kansas Lot 15, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, 29,381.56 Kansas Lot 16, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, 29,381.56 Kansas Lot 17, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, 29,381.56 Kansas Lot 18, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, 29,381.56 Kansas Lot 19, Block 3, in the Stone Lake Addition, Phase 3, City of Salina, Saline County, 29,381.56 Kansas Total Assessment $1,253,348.17 MAGNOLIA HILLS ESTATES NO. 2 RESOLUTION NO. 21-7957 COLLECTED IN FIFTEEN (15) INSTALLMENTS Description of Property Lot 1, Block 1, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 1, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 3, Block 1, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 4, Block 1, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 2, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 2, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 3, Block 2, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 4, Block 2, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 1, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 2, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 3, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 4, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 5, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 6, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 7, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 8, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 9, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 10, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 11, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 12, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Lot 13, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas Assessment $567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 567.91 Lot 14, Block 3, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 1, Block 4, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 1, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 2, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 3, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 4, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 5, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 6, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 7, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 8, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 9, Block 5, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 1, Block 6, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 2, Block 6, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 3, Block 6, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 1, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.91 Lot 2, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.92 Lot 3, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.92 Lot 4, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.92 Lot 5, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.92 Lot 6, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.92 Lot 7, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.92 Lot 8, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.92 Lot 9, Block 7, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.92 Lot 1, Block 8, in the Magnolia Hills Estates No. 2, City of Salina, Saline County, Kansas 567.92 Total Assessment $25,556.04 SUMMARY OF ORDINANCE NO. 22-11100 On February 28, 2022, the governing body of the City of Salina, Kansas, passed an ordinance entitled: AN ORDINANCE LEVYING SPECIAL ASSESSMENTS ON CERTAIN PROPERTY TO PAY THE COSTS OF INTERNAL IMPROVEMENTS IN THE CITY OF SALINA, KANSAS; AND PROVIDING FOR THE COLLECTION OF SUCH SPECIAL ASSESSMENTS. The Ordinance levies special assessments on certain property located in Magnolia Hills Estates No. 2, Stone Lake Addition, and an unplatted tract within the City which have been benefitted from certain internal improvements constructed pursuant to K.S.A. 12-6a01 et seq. and provides an opportunity for prepayment, in whole or in part, of the special assessments. A schedule of the amounts of the special assessments and the property benefitted are attached to the Ordinance. Any amount of special assessments not paid within the time prescribed in the Ordinance shall be certified by the City Clerk to the Clerk of Saline County, Kansas, in the same manner and at the same time as other taxes are certified and will be collected in annual installments, together with interest on such amounts at a rate not exceeding the maximum rate therefor as prescribed by law. A complete text of the Ordinance may be obtained or viewed free of charge at the office of the City Clerk, 300 W. Ash Street, Room 107, Salina, Kansas. A reproduction of the Ordinance is available for not less than 7 days following the publication date of this Summary at www.SM:iftftti9tl.eem. s"-1\nQ.-ks. 80". This Summary is hereby certified to be legally accurate and sufficient pursuant to the laws of the State of Kansas. DATED: February 28, 2022. LOCALiQ The Garden City Telegram PO Box 631367 Cincinnati, OH 45263-1367 The Hays Dally News I Salina Journal The Hutchinson News I The Ottawa Herald PROOF OF PUBLICATION City Clerk'S Office City of Salina City Clerk Po Box 736 Salina KS 67402-0736 STATE OF WISCONSIN, COUNTY OF BROWN The Salina Journal, a daily newspaper published at Salina, Saline County, Kansas, and of general circulation in said county, and continuously and uninterruptedly published for five consecutive years prior to first publication of attached notice. That the attachment hereto contains a true and correct copy of what was actually published in said newspaper in the issue dated: 03/02/2022 Sworn to and subscribed before on 03/02/2022 WI, County of Brown i-7~ My commi,ion expires Publication Cost: $144.72 Order No: Customer No: PO#: 6981893 594307 #of Copies: 1 Tl!JS IS NOT AN INVOICE! Please do 1w1 u,·e this Form /i,r JHll'JJH.~111 remillance KATHLEEN ALLEN Notary Public State of Wisconsin '-----~--_.,,._, ____ _ (Published in !he Solina Journal Morch 3, 2022) SUMMARY OF ORDINANCE NO. 22-11100 On rebruorv 28, 2022, !he governing body of the City of Salina, Kansas, possed on ordinance entitled: AN ORDINANCE LEVYING SPECIAL ASSESSMENTS ON CERTAIN PROPERTY TO PAY THE COSTS OF INTERNAL IMPROVE- MENTS IN THE CITY OF SALINA, KANSAS; AND PROVIDING FOR THE COLLECTION OF SUCH SPECIAL ASSESSMENTS. The Ordinance levies special ossessmen1s on c:ertai n prop- erty located in Magnolia Hills Estotes No. 2, Stene Lake Addition, and on unplolled tract within 1he City which hove been bene• fitted from certain internal improvements constructed pursuant to K.S.A, 12-6001 et seq. and provides on oppor- lunity for prepayment, in whole or In part, of the spectol assessments. A schedule of the amounts of the special ossessmenls and the property benefitted ore oltoched to me Ordinance. Any amount of speciol assessments not paid within the time pre5cribed in the Ordinance sholl be certified by the City Clerk to the CI erk of Saline County, Konsos, in the same manner and at the- same trrne as other Taxes ore certified and wi 11 be collected in onnuol instal I-ments, together with interest on such amounts at a rate not exceeding the maximum rate therefor as prescribed by low. A complete lest of the Ordinance may be obtarned or viewed free of charge ct the orfice of the City Clerk, 300 w. Ash Street, Room 107, Solina, Kansas. A reproducHon of Jhe Ordinance ;s available for not less than 7 days following · the PUbllco1ion date of 1his Sum mory at www .Sallnausa.com,; This Summary is hereby cerlifled ro be legol lY OCCU· rate and sufficient pursuant lo the laws al lhe Stale of Kansas. DATEO: February 28, 2022 Greg Bengtson, City Attorney 6981893 J/312022 ll Page 1 of i CERTIFICATE OF MAILING STATE OF KANSAS ) ) ss: COUNTY OF SALINE ) The undersigned, Director of Finance/Administration of the City of Salina, Kansas, does hereby certify that on February 28, 2022, the date on which Ordinance No. 22-11100 (the "Ordinance") of the City was published, I caused to be mailed to the owners of the properties liable for the assessments set out in the Ordinance, at their last known post office addresses, a Notice of Assessment showing the respective assessments levied against their properties and stating the manner in which the assessments will be collected. (Seal) A sample copy of the fonn of such Notice of Assessment is attached hereto. WITNESS my hand at1d seal as of March L 2022. ~19~ Debbie Pack, Director of Finance/ Administration [attach sample copy offonn] NOTICE OF ASSESSMENT March _, 2021 Property Owner: You are hereby notified, as owner of record of the following property: [insert property description] that according to the notice mailed to you on February _, 2022 concerning an assessment against the above-described property for the public improvements previously authorized by the governing body of the City and following the meeting held on February 28, 2022 to hear objections to the proposed assessment, the City Commission has adopted Ordinance No. 22-levying assessments in the amount of $ ____ against this property. You may pay this assessment in whole or in part to the City Treasurer on or before April 1, 2022. If any amounts remain unpaid after April 1, 2022, the City will issue bonds to finance the assessments. The balance of any unpaid assessment will be collected as an assessment against the above-described property, in annual installments levied over fifteen years, together with interest on such amounts at a rate not exceeding that permitted by law. The interest rate is expected to be equal to the rate on bonds originally issued by the City to finance the assessments. Debbie Pack, Director of Finance/ Administration CERTIFICATE OF CITY TREASURER STATE OF KANSAS ) ) ss: COUNTY OF SALINE ) The undersigned, City Treasurer of the City of Salina, Kansas (the "City"), does hereby certify that within the time allowed by Ordinance No. 22-11100 of the City for the payment of special assessments in cash, property owners specially assessed for the costs of certain internal improvements previously authorized by the governing body of the City, paid in cash the amounts set forth below: Resolution No. District Property Amount 19-7760 Magnolia Hills Estates No. 2 19-7751 Stone Lake Addition 21-7957 Magnolia Hills Estates No. 2 (Markley Trail Improvements) S29, Tl4, R2 Block 1, Lot 3 $567.91 WITNESS my hand on ~• / 4 , 2022. City Treasurer EXCERPT OF MINUTES OF A MEETING OF THE CITY COMMISSION OF THE CITY OF SALINA, KANSAS HELD ON MARCH 21, 2022 Gilmore & Bell, P.C. 03/09/2022 The City Commission (the "Governing Body") met in regular session at the usual meeting place in the City at 4:00 P.M., the following members being present and participating, to-wit: Mayor TRENT W. DAVIS, M.D., Commissioners MICHAEL L. HOPPOCK, GREG LENKIEWICZ, BILL LONGBINE and KARL RYAN Absent: None The Mayor declared that a quorum was present and called the meeting to order. ************** (Other Proceedings) The matter of providing for the offering for sale of General Obigation Internal Improvment Bonds, Series 2022-A, came on for consideration and was discussed. Commissioner MICHAEL L. HOPPOCK presented and moved the adoption of a Resolution entitled: A RESOLUTION AUTHORIZING THE OFFERING FOR SALE OF GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS, SERIES 2022-A, OF THE CITY OF SALINA, KANSAS. Commissioner KARL RYAN seconded the motion to adopt the Resolution. Thereupon, the Resolution was read and considered, and, the question being put to a roll call vote, the vote thereon was as follows: Aye: TRENT W. DAVIS, M.D., MICHAEL L. HOPPOCK, GREG LENKIEWICZ, BILL LONGBINE and KARL RYAN. Nay: NONE. The Mayor declared the Resolution duly adopted by the Governing Body and the Clerk designated the same Resolution No. 22-8029 ************** (Other Proceedings) [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20227\SALEDOCS CERTIFICATE I hereby certify that the foregoing Excerpt of Minutes is a true and correct excerpt of the proceedings of the Governing Body of the City of Salina, Kansas, held on the date stated therein, and that the official minutes of such proceedings are on file in my office. ---- (SEAL) Jo 600596.20227\SALEDOCS (Signature Page to Excerpt of Minutes) Gilmore & Bell, P.C. 03/09/2022 RESOLUTION NO. 22-8029 A RESOLUTION AUTHORIZING THE OFFERING FOR SALE OF GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS, SERIES 2022-A, OF THE CITY OF SALINA, KANSAS. WHEREAS, the City of Salina, Kansas (the "Issuer'') has previously authorized certain improvements described as follows (collectively the "Improvements"): Project Description North 9th Street Bridge Smoky Hill River Renewal Automated Sanitation Trucks Great Plains Manufacturing Center Convention Hall HV AC Tony's Pizza Event Center Magnolia Hills Estates No. 2 Stone Lake Phase 3a Magnolia Hills Estates No. 2 -Markley Road Trail Total: *Excludes costs of issuance. Ord./Res. No. Ord. 02-10071; Res No. 19- 7677 Ord. 17-10885 Res. 20-7818 Res. 21-7931 Res. 19-7760 Res. 19-7751 Res. 21 -7957 Authority (K.S.A.) K.S.A. 12-685 et seq. Kan. Const. Article 12, §5 K.S.A. 12-2104 K.S.A. 12-1736 et seq. K.S.A. 12-6a01 et seq. K.S.A. 12-6a01 et seq. K.S.A. 12-6a01 et seq. Estimated Improvement Fund Deposit* $1,917,141.87 1,658,443.62 1,592,503.73 167,091.89 1,512,451.14 1,236,043.56 25.190.49 $8,109,136.30 WHEREAS, the Issuer desires to issue its general obligation bonds in order to permanently finance the costs of such Improvements and to retire the following temporary notes of the Issuer, which were issued to temporarily finance a portion of the costs of the Improvements (the "Refunded Notes"): Series 2021-1 Dated Date 04/29/2021 Maturity Date 05/01/2022 Original Amount $5,230,000 Outstanding Amount $5,230,000 WHEREAS, the Issuer proposes to issue its general obligation bonds to pay a portion of the costs of the Improvements and to retire the Refunded Notes; and WHEREAS, the Issuer has selected the firm of Stifel, Nicolaus & Company, Incorporated, Kansas City, Missouri ("Municipal Advisor"), as municipal advisor for one or more series of municipal temporary notes and one or more series of general obligation bonds of the Is suer, to be issued in order to provide funds to pay the costs of the Improvements; and WHEREAS, the Issuer desires to authorize the Municipal Advisor to proceed with the offering for sale of said general obligation bonds and related activities; and 600596.20227\SALEDOCS WHEREAS, one of the duties and responsibilities of the Issuer is to prepare and distribute a preliminary official statement relating to said general obligation bonds; and WHEREAS, the Issuer desires to authorize the Municipal Advisor and Gilmore & Bell, P.C., Kansas City, Missouri, the Issuer's bond counsel ("Bond Counsel"), in conjunction with the Clerk, and other officers and representatives of the Issuer to proceed with the preparation and distribution of a preliminary official statement and notice of sale and to authorize the distribution thereof and all other preliminary action necessary to sell said general obligation bonds and general obligation temporary notes. BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF SALINA, KANSAS, AS FOLLOWS: Section 1. There is hereby authorized to be offered for sale the Issuer's General Obigation Internal Improvment Bonds, Series 2022-A (the "Bonds") described in the Notice of Bond Sale, which is hereby approved in substantially the form presented to the Governing Body this date (the "Notice of Bond Sale"). All proposals for the purchase of the Bonds shall be delivered to the Governing Body at its meeting to be held on the sale date referenced in the Notice of Bond Sale, at which meeting the Governing Body shall review such bids and award the sale of the Bonds or reject all proposals. Section 2. The Mayor, Clerk and Director of Finance in conjunction with the Municipal Advisor and Bond Counsel are hereby authorized to cause to be prepared a Preliminary Official Statement relating to the Bonds (the "Preliminary Official Statement"), and such officials and other representatives of the Issuer are hereby authorized to use such document in connection with the sale of the Bonds. Section 3. The Clerk, in conjunction with the Municipal Advisor and Bond Counsel, is hereby authorized and directed to give notice of said bond sale by publishing a summary of the Notice of Bond Sale not less than 6 days before the date of the bond sale in a newspaper of general circulation in Saline County, Kansas, and the Kansas Register and by distributing copies of the Notice of Bond Sale and Preliminary Official Statement to prospective purchasers of the Bonds. Proposals for the purchase of the Bonds shall be submitted upon the terms and conditions set forth in the Notice of Bond Sale, and awarded or rejected in the manner set forth in the Notice of Bond Sale. Section 4. For the purpose of enabling the purchaser of the Bonds (the "Purchaser") to comply with the requirements of Rule 15c2-12 of the Securities and Exchange Commission (the "Rule"), the Mayor, Clerk, City Manager, Director of Finance or other appropriate officers of the Issuer are hereby authorized: (a) to approve the form of the Preliminary Official Statement and to execute the "Certificate Deeming Preliminary Official Statement Final" in substantially the form attached hereto as Exhibit A as approval of the Preliminary Official Statement, such official's signature thereon being conclusive evidence of such official's and the Issuer's approval thereof; (b) covenant to provide continuous secondary market disclosure by annually transmitting certain financial information and operating data and other information necessary to comply with the Rule to the Municipal Securities Rulemaking Board; and ( c) take such other actions or execute such other documents as such officers in their reasonable judgment deem necessary to enable the Purchaser to comply with the requirement of the Rule. Section 5. The Issuer agrees to provide to the Purchaser within seven business days of the date of the sale of Bonds or within sufficient time to accompany any confirmation that requests payment from any customer of the Purchaser, whichever is earlier, sufficient copies of the final Official Statement to enable the Purchaser to comply with the requirements of the Rule and with the requirements of Rule G- 32 of the Municipal Securities Rulemaking Board. 600596.20227\SALEDOCS 2 Section 6. The Mayor, Clerk, City Manager, Director of Finance and the other officers and representatives of the Issuer, the Municipal Advisor and Bond Counsel, are hereby authorized and directed to take such other action as may be necessary to carry out the sale of the Bonds, including making provision for payment and/or redemption of the Refunded Notes. Any sale of the Bonds shall be subject to further approval by the governing body. The transactions described in this Resolution may be conducted, and documents related to the Obligations may be sent, received, executed, and stored, by electronic means or transmissions. Copies, telecopies, electronic files and other reproductions of original executed documents ( or documents executed by electronic means or transmissions) shall be deemed to be authentic and valid counterparts of such documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. Section 7. This Resolution shall be in full force and effect from and after its adoption by the governing body. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20227\SALEDOCS 3 r I I [_ ' u ADOPTED by the City Commission on March 21, 2022. ·--~-~ ... ~~~'( OF ~-1( ~ "-. l ~,: f'hP {SEAL) -/~ •••••••• .. •••••••••~ I ,r~ VV 03.:) / ;:::-l o~GANIZfl) -._r D M ~ u.. ; 1 ,::: , Trent W. Davis, M. ., ayor 5\ 1870 j~ ~ \ -.-l,k' ~ .... ..••• r..,,,,,: .s> •••••••••• -J I hereby certify that the above and foregoing is a true and correct copy of Resolution No. 22-8029 that was adopted by the Governing Body of the City of Salina at their re~ul r meef ~ ., , 2022. EXHIBIT A CERTIFICATE DEEMING PRELIMINARY OFFICIAL STATEMENT FINAL March 21, 2022 Re: City of Salina, Kansas, General Obigation Internal Improvment Bonds, Series 2022-A The undersigned is the duly acting Director of Finance of the City of Salina, Kansas (the "Issuer"), and are authorized to deliver this Certificate to the purchaser (the "Purchaser") of the above- referenced bonds (the "Bonds") on behalf of the Issuer. The Issuer has previously caused to be delivered to the Purchaser copies of the Preliminary Official Statement (the "Preliminary Official Statement") relating to the Bonds. For the purpose of enabling the Purchaser to comply with the requirements of Rule 15c2-12(b)(l) of the Securities and Exchange Commission (the "Rule"), the Issuer hereby deems the information regarding the Issuer contained in the Preliminary Official Statement to be final as of its date, except for the omission of such information as is permitted by the Rule, such as offering prices, interest rates, selling compensation, aggregate principal amount, principal per maturity, delivery dates, ratings, identity of the underwriters and other terms of the Bonds depending on such matters. 600596.20227\SALEDOCS CITY OF SALINA, KANSAS By: ----------- Title Director of Finance NOTICE OF BOND SALE $8,195,000* CITY OF SALINA, KANSAS GENERAL OBLIGATION BONDS SERIES 2022-A (GENERAL OBLIGATION BONDS PAYABLE FROM UNLTh1ITED AD VALOREM TAXES) Gilmore & Bell, P.C. 03/09/2022 Bids. Bids for the purchase of the above-referenced bonds (the "Bonds") of the City of Salina, Kansas (the "Issuer") herein described will be received on behalf of the Issuer by the Issuer's Municipal Advisor, until 12:00 P.M. applicable Central Time (the "Submittal Hour"), on APRIL 4, 2022 (THE "SALE DATE") Bids may only be submitted via PARITY® or via email to the Municipal Advisor at arteberrvd@stifel.com. Facsimile bids and hand-delivered written bids will not be accepted. All bids will be publicly evaluated at said time and place and the award of the Bonds to the successful bidder (the "Successful Bidder") will be acted upon by the City Commission of the Issuer (the "Governing Body") at its meeting to be held at 4:00 p.m. on the Sale Date. No oral or auction bids will be considered. Any qualified bidder may bid on the Bonds. Capitalized terms not otherwise defined herein shall have the meanings set forth in the hereinafter referenced Preliminary Official Statement relating to the Bonds. Terms of the Bonds. The Bonds will consist of fully registered bonds in the denomination of $5,000 or any integral multiple thereof (or such amount added to $5,000 or any integral multiple thereof) (the "Authorized Denomination"). The Bonds will be dated April 28, 2022 (the "Dated Date"), and will become due in principal installments on October 1 in the years as follows: Principal Principal Year Amount* Year Amount* 2023 $485,000 2033 $430,000 2024 585,000 2034 440,000 2025 595,000 2035 450,000 2026 620,000 2036 465,000 2027 630,000 2037 330,000 2028 650,000 2038 110,000 2029 650,000 2039 115,000 2030 420,000 2040 115,000 2031 430,000 2041 120,000 2032 430,000 2042 125,000 600596.20227\SALEDOCS The Bonds will bear interest from the Dated Date at rates to be determined when the Bonds are sold as hereinafter provided, which interest will be payable semiannually on April 1 and October 1 in each year, beginning on April 1, 2023 (the "Interest Payment Dates"). * Adjustment of Issue Size. The Issuer reserves the right to increase or decrease the total principal amount of the Bonds or the schedule of principal payments described above, depending on the purchase price and interest rates bid and the offering prices specified by the Successful. The Successful Bidder may not withdraw its bid or change the interest rates bid as a result of any changes made to the principal amount of the Bonds or the schedule of principal payments as described herein. If there is an increase or decrease in the final aggregate principal amount of the Bonds or the schedule of principal payments as described above, the Issuer will notify the Successful Bidder by means of telephone or facsimile transmission, subsequently confirmed in writing, no later than 2:00 p.m. applicable Central Time, on the Sale Date. The actual purchase price for the Bonds shall be calculated by applying the percentage of par value bid by the Successful Bidder against the final aggregate principal amount of the Bonds, as adjusted, plus accrued interest from the Dated Date to the Closing Date (as hereinafter defined). Place of Payment. The principal of and interest on the Bonds will be payable in lawful money of the United States of America by check or draft of the Treasurer of the State of Kansas, Topeka, Kansas (the "Paying Agent" and "Bond Registrar"). The principal of each Bond will be payable at maturity or earlier redemption to the owner thereof whose name is on the registration books (the "Bond Register") of the Bond Registrar (the "Registered Owner") upon presentation and surrender at the principal office of the Paying Agent. Interest on each Bond will be payable to the Registered Owner of such Bond as of the fifteenth day (whether or not a business day) of the calendar month next preceding each Interest Payment Date (the "Record Date") (a) mailed by the Paying Agent to the address of such Registered Owner as shown on the Bond Register or at such other address as is furnished to the Paying Agent in writing by such Registered Owner; or (b) in the case of an interest payment to Cede & Co. or any Owner of $500,000 or more in aggregate principal amount of Bonds, by wire transfer to such Registered Owner upon written notice given to the Paying Agent by such Registered Owner, not less than 15 days prior to the Record Date for such interest, containing the wire transfer address to which such Registered Owner wishes to have such wire directed. Bond Registration. The Bonds will be registered pursuant to a plan of registration approved by the Issuer and the Attorney General of the State of Kansas (the "State"). The Issuer will pay for the fees of the Bond Registrar for registration and transfer of the Bonds and will also pay for printing a reasonable supply of registered bond blanks. Any additional costs or fees that might be incurred in the secondary market, other than fees of the Bond Registrar, will be the responsibility of the Owners. Book-Entry-Only System. The Depository Trust Company, New York, New York ("DTC"), will act as securities depository for the Bonds. The Bonds will initially be issued exclusively in "book entry" form and shall be initially registered in the name of Cede & Co., as the nominee of DTC and no beneficial owner will receive certificates representing their interests in the Bonds. During the term of the Bonds, so long as the book-entry-only system is continued, the Issuer will make payments of principal of, premium, if any, and interest on the Bonds to DTC or its nominee as the Registered Owner of the Bonds. DTC will make book-entry-only transfers among its participants and receive and transmit payment of principal of, premium, if any, and interest on the Bonds to its participants who shall be responsible for transmitting payments to beneficial owners of the Bonds in accordance with agreements between such participants and the beneficial owners. The Issuer will not be responsible for maintaining, supervising or reviewing the records maintained by DTC, its participants or persons acting through such participants. In the event that: (a) DTC determines not to continue to act as securities depository for the Bonds, or (b) the Issuer determines that continuation of the book-entry-only form of evidence and transfer of ownership of the Bonds would adversely affect the interests of the beneficial owners of the Bonds, the Issuer will 600596.20227\SAI,EDOCS 2 discontinue the book-entry-only form of registration with DTC. If the Issuer fails to identify another qualified securities depository to replace DTC, the Issuer will cause to be authenticated and delivered to the beneficial owners replacement Bonds in the form of fully registered certificates. Reference is made to the Official Statement for further information regarding the book-entry-only system of registration of the Bonds and DTC. Redemption of Bonds Prior to Maturity. General. Whenever the Issuer is to select Bonds for the purpose of redemption, it will, in the case of Bonds in denominations greater than the minimum Authorized Denomination, if less than all of the Bonds then outstanding are to be called for redemption, treat each minimum Authorized Denomination of face value of each such fully registered Bond as though it were a separate Bond in the minimum Authorized Denomination. Optional Redemption. At the option of the Issuer, Bonds maturing on October 1 in the years 2030, and thereafter, will be subject to redemption and payment prior to maturity on October 1, 2029, and thereafter, as a whole or in part (selection of maturities and the amount of Bonds of each maturity to be redeemed to be determined by the Issuer in such equitable manner as it may determine) at any time, at the redemption price of 100% (expressed as a percentage of the principal amount), plus accrued interest to the date of redemption. Mandatory Redemption. A bidder may elect to have all or a portion of the Bonds scheduled to mature in consecutive years issued as term bonds (the "Term Bonds") scheduled to mature in the latest of said consecutive years and subject to mandatory redemption requirements consistent with the schedule of serial maturities set forth above, subject to the following conditions: (a) not less than all Bonds of the same serial maturity shall be converted to Term Bonds with mandatory redemption requirements; and (b) a bidder shall make such an election by completing the applicable paragraph on the Official Bid Form or completing the applicable information on PARITY®. Notice and Effect of Call for Redemption. Unless waived by any owner of Bonds to be redeemed, if the Issuer shall call any Bonds for redemption and payment prior to the maturity thereof, the Issuer shall give written notice of its intention to call and pay said Bonds to the Bond Registrar, any provider of municipal bond insurance and the Successful Bidder. In addition, the Issuer shall cause the Bond Registrar to give written notice of redemption to the registered owners of said Bonds. Each of said written notices shall be deposited in United States first class mail not less than 30 days prior to the Redemption Date. All notices of redemption shall state the Redemption Date, the redemption price, the Bonds to be redeemed, the place of surrender of Bonds so called for redemption and a statement of the effect of the redemption. The Issuer shall also give such additional notice as may be required by State law or regulation of the Securities and Exchange Commission in effect as of the date of such notice. If any Bond be called for redemption and payment as aforesaid, all interest on such Bond shall cease from and after the Redemption Date, provided funds are available for its payment at the price hereinbefore specified. Authority, Purpose and Security. The Bonds are being issued pursuant to Art. 12 § 5 of the Consitution of the State of Kansas, K.S.A. 12-6a01 et seq., K.S.A. 12-685 et seq., K.S.A. 12-1736 et seq., KS.A. 12-2104, as amended, and an ordinance and a resolution adopted by the Governing Body (collectively the "Bond Resolution") for the purpose of paying a portion of the cost of certain public improvements (the "Improvements"). The Bonds shall be general obligations of the Issuer payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of the Improvements, and if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the 600596.20227\SALEDOCS 3 territorial limits of the Issuer. The full faith, credit and resources of the Issuer are irrevocably pledged for the prompt payment of the principal and interest on the Bonds as the same become due. Submission of Bids. Email bids shall be marked "Proposal for General Obigation Internal lmprovment Bonds, Series 2022-A" and may be submitted to the Municipal Advisor at arteberryd@Stifel.com. Electronic bids via PARITY® must be submitted in accordance with its Rules of Participation, as well as the provisions of this Notice of Bond Sale. Any bid submitted shall include the initial offering prices to the public for each maturity of the Bonds. If provisions of this Notice of Bond Sale conflict with those of PARITY®, this Notice of Bond Sale shall control. Bids must be received prior to the Submittal Hour on the Sale Date accompanied by the Deposit (as hereinafter defined), which may be submitted separately. The Issuer and Municipal Advisor shall not be responsible for failure of transmission of facsimile or delivery by mail or in person of any bid. Any bidder desiring to have the Municipal Advisor assist in the delivery of such bidder's bid should provide pertinent bidding information to the Municipal Advisor not later than 30 minutes prior to the Submittal Hour on the Sale Date. PARITY®. Information about the electronic bidding services of PARITY® may be obtained from i-Deal LLC at 1359 Broadway, 2nd Floor, New York, New York 10018, Phone No. (212) 849-5023 and from the following website: www.newissuehome.i-deal.com. Conditions of Bids. Proposals will be received on the Bonds bearing such rate or rates of interest as may be specified by the bidders, subject to the following conditions: (a) the same rate shall apply to all Bonds of the same maturity year; (b) no interest rate may exceed a rate equal to the daily yield for the 10- year Treasury Bond published by THE BOND BUYER, in New York, New York, on the Monday next preceding the day on which the Bonds are sold, plus 3%; (c) no supplemental interest payments will be considered; (d) each interest rate specified shall be a multiple of 1/8 or 1/20 of 1 %; and (e) no zero percent (0%) interest rates will be permitted. No bid for less than 100% of the principal amount of the Bonds and accrued interest thereon to the date of delivery will be considered. Each bid shall specify the total interest cost (expressed in dollars) during the term of the Bonds on the basis of such bid, the premium, if any, offered by the bidder, the net interest cost (expressed in dollars) on the basis of such bid, and an estimate of the TIC (as hereinafter defined) on the basis of such bid. Each bidder shall certify to the Issuer the correctness of the information contained on the Official Bid Form; the Issuer will be entitled to rely on such certification. Each bidder agrees that, if it is awarded the Bonds, it will provide the certification described under the caption "Establishment of Issue Price" in this Notice. Good Faith Deposit. The Successful Bidder must supply a good faith deposit (the "Deposit") in the amount of 2.00% of the principal amount of the Bonds as indicated on the first page of this Notice payable to the order of the Issuer to secure the Issuer from any loss resulting from the failure of the Successful Bidder to comply with the terms of its bid. The Deposit must be received by the Issuer by 3:00 p.m. Central Time on the Sale Date. The Deposit shall be submitted by wire transfer in Federal Reserve funds, immediately available for use by the Issuer. No interest on the Deposit will be paid by the Issuer. The Deposit will be held by the Issuer until the Successful Bidder have complied with all of the terms and conditions of this Notice at which time the amount of said Deposit shall be returned to the Successful Bidder or deducted from the purchase price at the option of the Issuer. If a bid is accepted, but the Issuer fails to deliver the Obligations to the Successful Bidder in accordance with the terms and conditions of this Notice, said Deposit, or the proceeds thereof, will be returned to the Successful Bidder. If the Successful Bidder default in the performance of any of the terms and conditions of this Notice, the proceeds of such Deposit will be retained by the Issuer as and for liquidated damages. 600596.20227\SALEDOCS 4 Basis of Award. Subject to the timely receipt of the Deposit set forth above, the award of the Bonds will be made on the basis of the lowest true interest cost ("TIC"), which will be determined as follows: the TIC is the discount rate (expressed as a per annum percentage rate) which, when used in computing the present value of all payments of principal and interest to be paid on the Bonds, from the payment dates to the Dated Date, produces an amount equal to the price bid, including any adjustments for premium if any. Present value will be computed on the basis of semiannual compounding and a 360- day year of twelve 30-day months. Bidders are requested to provide a calculation of the TIC for the Bonds on the Official Bid Form, computed as specified herein on the basis of their respective bids, which shall be considered as informative only and not binding on either the Issuer or the bidder. The Municipal Advisor will verify the TIC based on such bids. If there is any discrepancy between the TIC specified and the bid price and interest rates specified, the specified bid price and interest rates shall govern and the TIC specified in the bid shall be adjusted accordingly. If two or more proper bids providing for identical amounts for the lowest TIC are received, the Governing Body will determine which bid, if any, will be accepted, and its determination is final. The Issuer reserves the right to reject any and/or all bids and to waive any irregularities in a submitted bid. Any bid received after the Submittal Hour on the Sale Date will not be considered. Any disputes arising hereunder shall be governed by the laws of the State, and any party submitting a bid agrees to be subject to jurisdiction and venue of the federal and state courts within the State with regard to such dispute. The Issuer's acceptance of the Successful Bidder's proposal for the purchase of the Bonds in accordance with this Notice of Bond Sale shall constitute a bond purchase agreement between the Issuer and the Successful Bidder for purposes of the laws of the State and a contract between the Issuer and the Successful Bidder for the purposes of Rule 15c2-12 of the Securities and Exchange Commission (the "Rule") and Rule G-32 of the Municipal Securities Rulemak:ing Board ("Rule G-32"). The method of acceptance shall be determined solely by the Governing Body. Bond Ratings. The outstanding general obligation bonds of the Issuer are rated "Aa3" by Moody's Investors Service. The Issuer has applied to Moody's Investors Service for ratings on the Bonds herein offered for sale. Such application and ratings are further described in the Preliminary Official Statement, hereinafter described. Optional Bond Insurance. The Issuer has not applied for any policy of municipal bond insurance with respect to the Bonds. If the Bonds qualify for municipal bond insurance, and any bidder desires to purchase such policy, such indication and the name of the desired insurer must be set forth on the bidder's Official Bid Form. The Issuer specifically reserves the right to reject any bid specifying municipal bond insurance, even though such bid may result in the lowest TIC to the Issuer. If the Successful Bidder elects to purchase the Bonds with municipal bond insurance, certain rating agencies will assign their ratings to the Bonds with the understanding that upon delivery of the Bonds, a policy insuring the payment when due of the principal of and interest on the Bonds will be issued by such bond insurer. All costs associated with the purchase and issuance of such municipal bond insurance policy and associated ratings and expenses ( other than any independent rating requested by the Issuer) shall be paid by the Successful Bidder. Failure of the municipal bond insurer to issue the policy after the award of the Bonds shall not constitute cause for failure or refusal by the Successful Bidder to accept delivery of the Bonds. CUSIP Numbers. CUSIP identification numbers will be assigned and printed on the Bonds, but neither the failure to print such number on any Bond nor any error with respect thereto shall constitute 600596.20227\SALEDOCS 5 cause for failure or refusal by the purchaser thereof to accept delivery of and pay for the Bonds in accordance with the terms of this Notice. The Municipal Advisor will apply for CUSIP numbers pursuant to Rule G-34 implemented by the Municipal Securities Rulemaking Board. All expenses in relation to the assignment and printing of CUSIP numbers on the Bonds will be paid by the Issuer. Delivery and Payment. The Issuer will pay for preparation of the Bonds and will deliver the Bonds properly prepared, executed and registered without cost on or about APRIL 28, 2022 (the "Closing Date"), to DTC for the account of the Successful Bidder. The Successful Bidder will be furnished with a certified transcript of the proceedings evidencing the authorization and issuance of the Bonds and the usual closing documents, including a certificate that there is no litigation pending or threatened at the time of delivery of the Bonds affecting their validity and a certificate regarding the completeness and accuracy of the Official Statement. Payment for the Bonds shall be made in federal reserve funds, immediately available for use by the Issuer. The Issuer will deliver one Bond of each maturity registered in the nominee name of DTC. Establishment of Issue Price. (a) In order to provide the Issuer with information necessary for compliance with Section 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated thereunder (collectively, the "Code"), the Successful Bidder will be required to assist the Issuer in establishing the "issue price" of the Bonds and complete, execute and deliver to the Issuer prior to the Closing Date, a written certification in a form acceptable to the Successful Bidder, the Issuer and Bond Counsel (the "Issue Price Certificate") containing the following for each maturity of the Bonds: (1) the interest rate; (2) the reasonably expected initial offering price to the "public" (as said term is used in Treasury Regulation Section 1.148-l(t) (the "Regulation")) or the sale price; and (3) pricing wires or equivalent communications supporting such offering or sale price. However, such Issue Price Certificate may indicate that the Successful Bidder has purchased the Bonds for its own account in a capacity other than as an underwriter or wholesaler, and currently has no intent to reoffer the Bonds for sale to the public. Any action to be taken or documentation to be received by the Issuer pursuant hereto may be taken or received by the Municipal Advisor or Bond Counsel on behalf of the Issuer. (b) The Issuer intends that the sale of the Bonds pursuant to this Notice shall constitute a "competitive sale" as defined in the Regulation. In support thereof: (1) the Issuer shall cause this Notice to be disseminated to potential bidders in a manner reasonably designed to reach potential bidders; (2) all bidders shall have an equal opportunity to submit a bid; (3) the Issuer reasonably expects that it will receive bids from at least three bidders that have established industry reputations for underwriting municipal bonds such as the Bonds; and (4) the Issuer anticipates awarding the sale of the Bonds to the bidder that provides a bid with the lowest TIC in accordance with the section hereof entitled "Basis of Award." (c) Any bid submitted pursuant to this Notice shall be considered a firm offer for the purchase of the Bonds as specified therein. The Successful Bidder shall constitute an "underwriter" as said term is defined in the Regulation. By submitting its bid, the Successful Bidder confirms that it shall require any agreement among underwriters, a selling group agreement or other agreement to which it is a party relating to the initial sale of the Bonds, to include provisions requiring compliance with provisions of the Code and the Regulation regarding the initial sale of the Bonds. (d) If all of the requirements of a "competitive sale" are not satisfied, the Issuer shall advise the Successful Bidder of such fact at the time of award of the sale of the Bonds to the Successful Bidder and the following provisions shall apply to the Bonds. In such event, any bid submitted will not be subject to cancellation or withdrawal. Within twenty-four (24) hours of the notice of award of the sale 600596.20227\SALEDOCS 6 of the Bonds, the Successful Bidder shall advise the Issuer if a "substantial amount" (as defined in the Regulation (10%)) of any maturity of the Bonds has been sold to the public and the price at which such substantial amount was sold. The Issuer will treat such sale price as the "issue price" for such maturity, applied on a maturity-by-maturity basis. The Issuer will not require the Successful Bidder to comply with that portion of the Regulation commonly described as the "hold-the-offering-price" requirement for the remaining maturities, but the Successful Bidder may elect such option. If the Successful Bidder exercises such option, the Issuer will apply the initial offering price to the public provided in the bid as the issue price for such maturities. If the Successful Bidder does not exercise that option, it shall thereafter promptly provide the Issuer the prices at which a substantial amount of such maturities are sold to the public. Any change in the issue price of any of the Bonds after the Submittal Hour will not affect the purchase price for the Bonds submitted in the bid of the Successful Bidder. (e) This agreement by the Successful Bidder to provide such information will continue to apply after the Closing Time if: (a) the Issuer requests the information in connection with an audit or inquiry by the Internal Revenue Service (the "IRS") or the Securities and Exchange Commission (the "SEC") or (b) the information is required to be retained by the Issuer pursuant to future regulation or similar guidance from the IRS, the SEC or other federal or state regulatory authority. Preliminary Official Statement and Official Statement. The Issuer has prepared a Preliminary Official Statement relating to the Bonds "deemed final" by the Issuer except for the omission of certain information as provided in the Rule, copies of which may be obtained from the Municipal Advisor. Upon the sale of the Bonds, the Issuer will adopt the final Official Statement and will furnish the Successful Bidder, without cost, within seven business days of the acceptance of the Successful Bidder's proposal, with a sufficient number of copies thereof, which may be in electronic format, in order for the Successful Bidder to comply with the requirements of the Rule and Rule G-32. Additional copies may be ordered by the Successful Bidder at its expense. Continuing Disclosure. In the Bond Resolution, the Issuer has covenanted to provide annually certain financial information and operating data and other information necessary to comply with the Rule, and to transmit the same to the Municipal Securities Rulemaking Board. This covenant is for the benefit of and is enforceable by any Registered Owner of the Bonds. For further information, reference is made to the caption "CONTINUING DISCLOSURE" in the Preliminary Official Statement. Assessed Valuation and Indebtedness. The total assessed valuation of the taxable tangible property within the Issuer for the year 2021 is as follows: Equalized Assessed Valuation of Taxable Tangible Property.............................................................. $462,937,221 Tangible Valuation of Motor Vehicles .. .. .. .. .. .. .. .. .. .. .. .. . . .. .. .. . ... .. ... .. .. .... 56.545 .812 Equalized Assessed Tangible Valuation for Computation of Bonded Debt Limitations .............................. .. $519,483,033 The total general obligation indebtedness of the Issuer as of the Dated Date, including the Bonds being sold, is $80,885,000. Temporary notes in the principal amount of $5,230,000 will be retired out of proceeds of the Bonds and other available funds, which will reduce the outstanding general obligation indebtedness of the Issuer to $75,655,000. Legal Opinion. The Bonds will be sold subject to the approving legal opinion of GILMORE & BELL, P.C., KANSAS CITY, MISSOURI, Bond Counsel to the Issuer, which opinion will be furnished 600596.20227\SALEDOCS 7 and paid for by the Issuer, will be printed on the Bonds, if the Bonds are printed, and will be delivered to the Successful Bidder when the Bonds are delivered. Said opinion will also include the opinion of Bond Counsel relating to the interest on the Bonds being excludable from gross income for federal income tax purposes and exempt from income taxation by the State. Reference is made to the Preliminary Official Statement for further discussion of federal and State income tax matters relating to the interest on the Bonds. Electronic Transactions. The transactions described herein may be conducted and related documents may be sent, received and stored by electronic means or transmissions. All bid documents, closing documents, certificates, ordinances, resolutions and related instruments may be executed by electronic means or transmissions. Copies, telecopies, electronic files and other reproductions of original executed documents (or documents executed by electronic means or transmissions) shall be deemed to be authentic and valid counterparts of such documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. Additional Inf onnation. Additional information regarding the Bonds may be obtained from the undersigned or from the Municipal Advisor at the addresses set forth below: DATED: March 21, 2022. Issuer -Good Faith Deposit Delivery Address: Debbie Pack, Director of Finance and Administration City of Salina, Kansas 300 West Ash Street, Room 206 Salina, Kansas 67402 Phone No.: (785) 309-5735 Fax No.: (785) 309-5711 Email: debbie.pack@salina.on1 Municipal Advisor -Email Bid Delivery Address: Stifel Nicolaus & Company, Incorporated 4801 Main Street, Suite 530 Kansas City, Missouri 64112 Attn: David Arteberry Phone No.: (816) 203-8773 Fax No.: (816) 283-5326 Email: artebe1n d@stifel.com 600596.20227\SALEDOCS 8 CITY OF SALINA, KANSAS By: JoVonna Rutherford, City Clerk PRELIMINARY OFFICIAL STATEMENT DATED MARCH 28, 2022 C: >--~ 1g New Issue o.E Moody's Rating: "Aa3" g = Bank Qualified ~£ '"' "' Book-Entry Only ~~ In the opinion of Gilmore & Bell, P. C., Bond Counsel to the City, under existing law and assuming continued compliance with certain requirements of the Internal Revenue Code of 1986, as amended (the "Code'J: (1) the interest on the Bonds [(including any original issue discount properly allocable to an owner thereof)] is excludable from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax, (2) the interest on the Bonds is exempt from income taxation by the State of Kansas, (3) the Bonds are designated as "qualified tax-exempt obligations" within the meaning of Code Section 265(b)(3). See TAX MATTERS in this Official Statement. )'of ~ $8, 195,000* CITY OF SALINA, KANSAS GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2022-A Dated: Date of Delivery (the "Dated Date") Due: As Shown Herein The General Obligation Internal Improvement Bonds, Series 2022-A Bonds (the "Bonds") will be issued by the Issuer, as fully registered bonds, without coupons. Purchases of the Bonds will be made in book-entry only form in the denomination of $5,000 or any integral multiple thereof (the "Authorized Denomination"). Principal on the Bonds will be payable annually on October 1 in the years shown herein. Interest on the Bonds will be payable semiannually on April 1 and October 1 of each year until maturity or earlier redemption, commencing on April 1, 2023 (the "Bond Interest Payment Date"). The Treasurer of the State of Kansas will be designated as paying agent and registrar or the Bonds (the "Paying Agent" and "Bond Registrar"). The Bonds are subject to redemption at the option of the City as further described herein. See THE BONDS -"Redemption Provisions" herein. MATURITY SCHEDULE (see inside front cover) The full faith, credit, and resources of the City are irrevocably pledged for the prompt payment of the principal and interest on the Bonds as the same becomes due. See THE BONDS -"Security" herein. The Bonds are offered when, as and if issued by the City and received by the Underwriter subject to the approval of legality by Gilmore & Bell, P.C., Kansas City, Missouri, Bond Counsel to the City. It is expected that the Bonds will be available for delivery through the facilities of OTC, in New York, New York, on or about April 28, 2022. BIDS FOR THE PURCHASE OF THE BONDS WILL BE RECEIVED PURSUANT TO THE NOTICE OF SALE: On or before 12:00 p.m., Central Daylight Time On Monday, April 4, 2022 THIS COVER PAGE CONTAINS INFORMATION FOR QUICK REFERENCE ONLY. IT IS NOT A SUMMARY OF THE ISSUE. INVESTORS MUST READ THE ENTIRE OFFICIAL STATEMENT TO OBTAIN INFORMATION ESSENTIAL TO THE MAKING OF AN INFORMED INVESTMENT DECISION. *Preliminary; subject to change MATURITY SCHEDULE $8,195,QOQ(ll GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2022-A Maturity 10-01-23 10-01-24 10-01-25 10-01-26 10-01-27 10-01-28 10-01-29 10-01-30131 10-01-31(3) 10-01-3213) 10-01-33131 10-01-34(3) 10-01-35(3) 10-01-3613) 10-01-3713) 10-01-3813) 10-01-3913) 10-01-4013) 10-01-41(3) 10-01-42(3) !1lPreliminary; subject to change Amount $485,000 585,000 595,000 620,000 630,000 650,000 650,000 420,000 430,000 430,000 430,000 440,000 450,000 465,000 330,000 110,000 115,000 115,000 120,000 125,000 Serial Bonds Base cus1p121 794744 !Zl CUSIP numbers have been assigned to this issue by CUSIP Global Services, which is managed on behalf of the American Bankers Association by S&P Capital IQ, a subsidiary of The McGraw-Hill Companies, Inc., and are included solely for the convenience of the Owners of the Bonds. Neither the City nor the Underwriters shall be responsible for the selection or correctness of the CUSIP numbers set forth above. !31 At the option of the City, Bonds maturing on October 1, 2030 and thereafter, will be subject to redemption and payment prior to their Stated Maturity on October 1, 2029, and at any time thereafter, as a whole or in part (selection of maturities and the amount of Bonds of each maturity to be redeemed to be determined by the City in such equitable manner as it may determine), at the Redemption Price of 100% (expressed as a percentage of the principal amount), plus accrued interest to the Redemption Date. See THE BONDS -"Redemption Provisions" herein. IN CONNECTION WITH THIS OFFERING, THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICES OF THE BONDS AT LEVELS ABOVE THOSE WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE BONDS HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THE BONDS ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE SECURITIES AND EXCHANGE COMMISSION. THE REGISTRATION, QUALIFICATION OR EXEMPTION OF THE BONDS IN ACCORDANCE WITH THE APPLICABLE SECURITIES LAW PROVISIONS OF THE JURISDICTIONS IN WHICH THESE BONDS HAVE BEEN REGISTERED, QUALIFIED OR EXEMPTED SHOULD NOT BE REGARDED AS A RECOMMENDATION THEREOF. NEITHER THESE JURISDICTIONS NOR ANY OF THEIR AGENCIES HAVE GUARANTEED OR PASSED UPON THE SAFETY OF THE BONDS AS AN INVESTMENT, UPON THE PROBABILITY OF ANY EARNINGS THEREON OR UPON THE ACCURACY OR ADEQUACY OF THIS OFFICIAL STATEMENT. ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE. THIS OFFICIAL STATEMENT CONTAINS STATEMENTS THAT ARE "FORWARD-LOOKING STATEMENTS" AS DEFINED IN THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. WHEN USED IN THIS OFFICIAL STATEMENT, THE WORDS "ESTIMATE," "INTEND," "EXPECT" AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS. SUCH STATEMENTS ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATER/ALLY FROM THOSE CONTEMPLATED IN SUCH FORWARD- LOOKING STATEMENTS. READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD- LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE HEREOF. THIS PRELIMINARY OFFICIAL STATEMENT IS DEEMED TO BE FINAL (EXCEPT FOR PERMITTED OMISSIONS) BY THE ISSUER FOR PURPOSES OF COMPLYING WITH RULE 15c2-12 OF THE SECURITIES AND EXCHANGE COMMISSION. IN MAKING AN INVESTMENT DECISION INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE ISSUER AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. CITY OF SALINA, KANSAS City/County Building -Room 206 300WestAsh P. 0. Box736 Salina, Kansas 67402-0736 CITY COMMISSION Trent W. Davis, M.D., Mayor Karl F. Ryan, Vice Mayor Mike Hoppock, Commissioner Greg Lenkiewicz, Commissioner Bill Longbine, Commissioner CITY STAFF Mike Schrage, City Manager Debbie Pack, Finance Director JoVonna Rutherford, City Clerk CITY ATTORNEY Greg Bengtson Clark, Mize & Linville, Chartered Salina, Kansas BOND COUNSEL Gilmore & Bell, P.C. Kansas City, Missouri MUNICIPAL ADVISOR Stifel, Nicolaus & Company, Incorporated Kansas City, Missouri No dealer, broker, salesman or other person has been authorized by the City or the Underwriter to give any information or to make any representations with respect to the Bonds, other than those contained in this Official Statement, and if given or made, such other information or representations must not be relied upon as having been authorized by the foregoing. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The information set forth herein concerning the Issuer has been furnished by the Issuer and other sources which are believed to be reliable, but such information is not guaranteed as to accuracy or completeness. The Underwriter has reviewed the information in this Official Statement in accordance with, and as a part of, its responsibilities to investors under the Federal Securities Laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. The information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the Issuer since the date hereof. This Official Statement does not constitute a contract between the Issuer or the Underwriters and any one or more of the purchasers, Owners or Beneficial Owners of the Bonds. All financial and other information presented herein, except for information expressly attributed to other sources, has been provided by the City from its records and is intended to show recent historic information. Such information is not guaranteed as to accuracy or completeness. All descriptions of laws and documents contained herein are only summaries and are qualified in their entirety by reference to such laws and documents. TABLE OF CONTENTS Page INTRODUCTORY STATEMENT............................................................................................................. 1 THE BONDS......................................................................................................................................... 2 THE DEPOSITORY TRUST COMPANY................................................................................................... 7 THE FINANCING PLAN......................................................................................................................... 9 SOURCES AND USES OF FUNDS .......................................................................................................... 9 RISK FACTORS AND INVESTMENT CONSIDERATIONS......................................................................... 9 LEGAL MATTERS................................................................................................................................. 12 TAX MATTERS..................................................................................................................................... 13 RATINGS.............................................................................................................................................. 14 MUNICIPAL ADVISOR.......................................................................................................................... 14 UNDERWRITING ................................................................................................................................. 15 ABSENCE OF MATERIAL LITIGATION................................................................................................... 15 CONTINUING DISCLOSURE................................................................................................................. 15 CERTIFICATION OF OFFICIAL STATEMENT.......................................................................................... 15 APPENDIX A: INFORMATION CONCERNING THE CITY FINANCIAL OVERVIEW OF THE CITY.............................................................................................. A-1 GENERAL INFORMATION CONCERNING THE CITY........................................................................ A-2 ECONOMIC INFORMATION CONCERNING THE CITY..................................................................... A-6 DEBT SUMMARY OF THE CITY....................................................................................................... A-9 FINANCIAL INFORMATION CONCERNING THE CITY...................................................................... A-13 APPENDIX B: FORM OF CONTINUING DISCLOSURE UNDERTAKING APPENDIX C: AUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR ENDING DECEMBER 31, 2020 APPENDIX D: UNAUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR ENDING DECEMBER 31, 2021 [THIS PAGE INTENTIONALLY LEFf BLANK] General OFFICIAL STATEMENT CITY OF SALINA, KANSAS $8,195,000* GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2022-A INTRODUCTORY STATEMENT The purpose of this Official Statement is to present certain information concerning the City of Salina, Kansas (the "Issuer" or "City"), and the offering of its $8,195,000* General Obligation Internal Improvement Bonds, Series 2022-A (the "Bonds"). The Bonds are being issued to provide funds to permanently finance certain public improvements with the City and to retire certain outstanding temporary notes of the City. See THE FINANCING PLAN herein. The full faith, credit, and resources of the City are irrevocably pledged for the prompt payment of the principal and interest on the Bonds as the same becomes due. See THE BONDS -"Security" herein. The Appendices are an integral part of this Official Statement and should be read in their entirety. All financial and other information presented herein has been provided by the City and other sources deemed to be reliable. The presentation of information herein is intended to show recent historic information and is not intended to indicate future or continuing trends in the financial position or other affairs of the City. Stifel, Nicolaus & Company, the Municipal Advisor, has assisted the Issuer with the preparation of this Official Statement, but has not independently verified the factual and financial information contained herein. Gilmore & Bell, P.C., Kansas City, Missouri, Bond Counsel to the City, has not assisted in the preparation of nor reviewed this Official Statement, except to the extent described under the sections captioned LEGAL MA TIERS and, accordingly, expresses no opinion as to the accuracy or sufficiency of any other information contained herein. Definitions Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the ordinance and resolution of the governing body of the City authorizing the Bonds (collectively, the "Bond Resolution"), as applicable. Copies of the Bond Resolution are available upon request to the City or the Municipal Advisor. Additional Information Additional information regarding the City or the Bonds may be obtained from Stifel, Nicolaus & Company, Incorporated, 4801 Main Street, Suite 530, Kansas City, Missouri 64112, telephone 816-203-8728. *Preliminary; subject to change 1 THE BONDS Authority The Bonds are being issued pursuant to and in full compliance with the Constitution, particulary Art. 12 § 5 thereof, and statutes of the State of Kansas, including without limitation K.S.A. 12-6a01, et seq., K.S.A. 12-685 et seq., K.S.A. 12-1736 et seq., and K.S.A. 12-2104, all as amended and supplemented from time to time, and an Ordinance passed by the governing body of the City and the Bond Resolution. Security The Bonds shall be general obligations of the City, payable as to both principal and interest in part from special assessments levied upon the property benefitted by the construction of certain public improvements, and if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The balance of the principal and interest on the Bonds is payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The full faith, credit and resources of the City are hereby irrevocably pledged for the prompt payment of the principal of and interest on the Bonds as the same become due. Levv and Collection of Annual Tax. Transfer to Debt Service Account The governing body of the Issuer shall annually make provision for the payment of principal of, premium, if any, and interest on the Bonds as the same become due by, to the extent necessary, levying and collecting the necessary taxes and/or assessments upon all of the taxable tangible property within the Issuer in the manner provided by law. Such taxes and/or assessments shall be extended upon the tax rolls in each of the several years, respectively, and shall be levied and collected at the same time and in the same manner as the other ad valorem taxes of the Issuer are levied and collected. The proceeds derived from said taxes shall be deposited in the Bond and Interest Fund, shall be kept separate and apart from all other funds of the Issuer, shall thereafter be transferred to the Debt Service Account and shall be used solely for the payment of the principal of and interest on the Bonds as and when the same become due, taking into account any scheduled mandatory redemptions, and the fees and expenses of the Paying Agent. Description The Bonds shall consist of fully registered book-entry-only bonds in an Authorized Denomination and shall be numbered in such manner as the Bond Registrar shall determine. All of the Bonds will be dated as of the Dated Date, shall become due in the amounts, on the Stated Maturities, subject to redemption and payment prior to their Stated Maturities, and shall bear interest at the rates per annum set forth on the inside cover page of this Official Statement. The Bonds shall bear interest (computed on the basis of twelve 30-day months) from the later of the Dated Date or the most recent Bond Interest Payment Date to which interest has been paid, on the Bond Interest Payment Dates in the manner hereinafter set forth. Redemption Provisions Optional Redemption. At the option of the Issuer, Bonds maturing on October 1 in the years 2030, and thereafter, will be subject to redemption and payment prior to their Stated Maturity on October 1, 2029, and thereafter, as a whole or in part (selection of maturities and the amount of Bonds of each maturity to be redeemed to be determined by the Issuer in such equitable manner as it may determine) at any time, at the Redemption Price of 100% (expressed as a percentage of the principal amount), plus accrued interest to the Redemption Date. 2 (Mandatory Redemption. The Bonds maturing on October 1, [_] (the "Term Bonds") shall be subject to mandatory redemption and payment prior to their Stated Maturity pursuant to the mandatory redemption requirements hereinafter set forth, at a Redemption Price equal to 100% of the principal amount thereof, plus accrued interest to the Redemption Date. The payments which are to be deposited into the Debt Service Account shall be sufficient to redeem, and the Issuer shall redeem on October 1 in each year the following principal amounts of such Term Bonds: *Final maturity) Principal Amount * Selection of Bonds to be Redeemed. Bonds shall be redeemed only in an Authorized Denomination. When less than all of the Bonds are to be redeemed and paid prior to their Stated Maturity, such Bonds shall be redeemed in such manner as the City shall determine, Bonds of less than a full Stated Maturity shall be selected by the Bond Registrar in minimum Authorized Denomination in such equitable manner as the Bond Registrar may determine. In the case of a partial redemption of Bonds by lot when Bonds of denominations greater than a minimum Authorized Denomination are then Outstanding, then for all purposes in connection with such redemption each minimum Authorized Denomination of face value shall be treated as though it were a separate Bond of a minimum Authorized Denomination. If it is determined that one or more, but not all, of the minimum Authorized Denomination value represented by any Bond is selected for redemption, then upon notice of intention to redeem such minimum Authorized Denomination, the Owner or the Owner's duly authorized agent shall forthwith present and surrender such Bond to the Bond Registrar: (1) for payment of the Redemption Price and interest to the Redemption Date of such minimum Authorized Denomination value called for redemption, and (2) for exchange, without charge to the Owner thereof, for a new Bond or Bonds of the aggregate principal amount of the unredeemed portion of the principal amount of such Bond. If the Owner of any such Bond fails to present such Bond to the Paying Agent for payment and exchange as aforesaid, such Bond shall, nevertheless, become due and payable on the redemption date to the extent of the minimum Authorized Denomination value called for redemption (and to that extent only). Notice and Effect of Call for Redemption. Unless waived by any Owner of Bonds to be redeemed, if the City shall call any Bonds for redemption and payment prior to the Stated Maturity thereof, the City shall give written notice of its intention to call and pay said Bonds to the Bond Registrar. In addition, the City shall cause the Bond Registrar to give written notice of redemption to the Owners of said Bonds. Each of said written notices shall be deposited in the United States first class mail not less than 30 days prior to the Redemption Date. All official notices of redemption shall be dated and shall contain the following information: (a) the Redemption Date; (b) the Redemption Price; (c) if less than all Outstanding Bonds are to be redeemed, the identification (and, in the case of partial redemption of any Bonds, the respective principal amounts) of the Bonds to be redeemed; (d) a statement that on the Redemption Date the Redemption Price will become due and payable upon each such Bond or portion thereof called for redemption and that interest thereon shall cease to accrue from and after the Redemption Date; and (e) the place where such Bonds are to be surrendered for payment of the Redemption Price, which shall be the principal office of the Paying Agent. The failure of any Owner to receive notice given as heretofore provided or an immaterial defect therein shall not invalidate any redemption. Prior to any Redemption Date, the City shall deposit with the Paying Agent an amount of money sufficient to pay the Redemption Price of all the Bonds or portions of Bonds that are to be redeemed on such Redemption Date. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds to be redeemed shall become due and payable on the Redemption Date, at the Redemption Price therein specified, and from and after the Redemption Date (unless the City defaults in the payment of the Redemption Price) such Bonds or portion of Bonds shall cease to bear interest. For so long as the Securities Depository is effecting book-entry transfers of the Bonds, the Bond Registrar shall provide the notices specified to the Securities Depository. It is expected that the Securities Depository shall, in turn, notify its Participants and that the Participants, in turn, will notify or cause to be notified the Beneficial Owners. Any failure on the part of the Securities Depository or a Participant, or failure on the part of a nominee of a Beneficial Owner 3 of a Bond (having been mailed notice from the Bond Registrar, the Securities Depository, a Participant or otherwise) to notify the Beneficial Owner of the Bond so affected, shall not affect the validity of the redemption of such Bond. In addition to the foregoing notice, the City shall provide such notices of redemption as are required by the Disclosure Undertaking. The Paying Agent is also directed to comply with any mandatory or voluntary standards then in effect for processing redemptions of municipal securities established by the State or the Securities and Exchange Commission. Failure to comply with such standards shall not affect or invalidate the redemption of any Bond. Designation of Paying Agent and Bond Registrar The City will at all times maintain a paying agent and bond registrar meeting the qualifications set forth in the Bond Resolution. The City reserves the right to appoint a successor paying agent or bond registrar. No resignation or removal of the paying agent or bond registrar shall become effective until a successor has been appointed and has accepted the duties of paying agent or bond registrar. Every paying agent or bond registrar appointed by the City shall at all times meet the requirements of Kansas law. The Treasurer of the State of Kansas, Topeka, Kansas (the "Bond Registrar" and "Paying Agent") has been designated by the City as paying agent for the payment of principal of and interest on the Bonds and bond registrar with respect to the registration, transfer and exchange of Bonds. Registration, Transfer and Exchange of Bonds As long as any of the Bonds remain Outstanding, each Bond when issued shall be registered in the name of the Owner thereof on the Bond Register. Bonds may be transferred and exchanged only on the Bond Register as hereinafter provided. Upon surrender of any Bond at the principal office of the Bond Registrar, the Bond Registrar shall transfer or exchange such Bond for a new Bond or Bonds in any authorized denomination of the same Stated Maturity and in the same aggregate principal amount as the Bond that was presented for transfer or exchange. Bonds presented for transfer or exchange shall be accompanied by a written instrument or instruments of transfer or authorization for exchange, in a form and with guarantee of signature satisfactory to the Bond Registrar, duly executed by the Owner thereof or by the Owner's duly authorized agent. In all cases in which the privilege of transferring or exchanging Bonds is exercised, the Bond Registrar shall authenticate and deliver Bonds in accordance with the provisions of the Bond Resolution. The City shall pay the fees and expenses of the Bond Registrar for the registration, transfer and exchange of Bonds. Any additional costs or fees that might be incurred in the secondary market, other than fees of the Bond Registrar, are the responsibility of the Owners of the Bonds. In the event any Owner fails to provide a correct taxpayer identification number to the Paying Agent, the Paying Agent may make a charge against such Owner sufficient to pay any governmental charge required to be paid as a result of such failure. The City and the Bond Registrar shall not be required (a) to register the transfer or exchange of any Bond that has been called for redemption after notice of such redemption has been mailed by the Paying Agent and during the period of 15 days next preceding the date of mailing of such notice of redemption; or (b) to register the transfer or exchange of any Bond during a period beginning at the opening of business on the day after receiving written notice from the City of its intent to pay Defaulted Interest and ending at the close of business on the date fixed for the payment of Defaulted Interest. Method and Place of Payment of the Bonds The principal of, or Redemption Price, and interest on the Bonds shall be payable in any coin or currency which, on the respective dates of payment thereof, is legal tender for the payment of public and private debts. The principal or Redemption Price of each Bond shall be paid at Maturity to the Person in whose name such Bond is registered on the Bond Register at the Maturity thereof, upon presentation and surrender of such Bond at the principal office of the Paying Agent. 4 The interest payable on each Bond on any Bond Interest Payment Date shall be paid to the Owner of such Bond as shown on the Bond Register at the close of business on the Record Date for such interest (a) by check or draft mailed by the Paying Agent to the address of such Owner shown on the Bond Register or at such other address as is furnished to the Paying Agent in writing by such Owner; or (b) in the case of an interest payment to Cede & Co. or any Owner of $500,000 or more in aggregate principal amount of Bonds, by electronic transfer to such Owner upon written notice given to the Bond Registrar by such Owner, not less than 15 days prior to the Record Date for such interest, containing the electronic transfer instructions including the bank, ABA routing number and account number to which such Owner wishes to have such transfer directed. "Record Date" means, for the interest payable on any Bond Interest Payment Date, the fifteenth day (whether or not a Business Day) of the calendar month next preceding such Bond Interest Payment Date. Notwithstanding the foregoing, any Defaulted Interest with respect to any Bond shall cease to be payable to the Owner of such Bond on the relevant Record Date and shall be payable to the Owner in whose name such Bond is registered at the close of business on the Special Record Date for the payment of such Defaulted Interest, which Special Record Date shall be fixed as hereinafter specified. The City shall notify the Paying Agent in writing of the amount of Defaulted Interest proposed to be paid on each Bond and the date of the proposed payment (which date shall be at least 30 days after receipt of such notice by the Paying Agent) and shall deposit with the Paying Agent an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest. Following receipt of such funds the Paying Agent shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 nor less than 10 days prior to the date of the proposed payment. The Paying Agent shall notify the City of such Special Record Date and shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, by first class mail, postage prepaid, to each Owner of a Bond entitled to such notice not less than 10 days prior to such Special Record Date. SO LONG AS CEDE & CO., REMAINS THE REGISTERED OWNER OF THE BONDS, THE BOND PAVING AGENT SHALL TRANSMIT PAYMENTS TO THE SECURITIES DEPOSITORY, WHICH SHALL REMIT SUCH PAYMENTS IN ACCORDANCE WITH ITS NORMAL PROCEDURES. See ''THE BONDS -Book-Entry Bonds; Securities Depository." Mutilated, Lost, Stolen or Destroyed Bonds If (a) any mutilated Bond is surrendered to the Bond Registrar or the Bond Registrar receives evidence to its satisfaction of the destruction, loss or theft of any Bond, and (b) there is delivered to the Issuer and the Bond Registrar such security or indemnity as may be required by each of them, then, in the absence of notice to the Issuer or the Bond Registrar that such Bond has been acquired by a bona fide purchaser, the Issuer shall execute and, upon the Issuer's request, the Bond Registrar shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Bond, a new Bond of the same Stated Maturity and of like tenor and principal amount. If any such mutilated, destroyed, lost or stolen Bond has become or is about to become due and payable, the Issuer, in its discretion, may pay such Bond instead of issuing a new Bond. Upon the issuance of any new Bond, the Issuer may require the payment by the Owner of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Paying Agent) connected therewith. Nonpresentment of Bonds If any Bond is not presented for payment when the principal thereof becomes due at Maturity, if funds sufficient to pay such Bond have been made available to the Paying Agent all liability of the Issuer to the Owner thereof for the payment of such Bond shall forthwith cease, determine and be completely discharged, and thereupon it shall be the duty of the Paying Agent to hold such funds, without liability for interest thereon, for the benefit of the Owner of such Bond, who shall thereafter be restricted exclusively to such funds for any claim of whatever nature on his part under this Bond Resolution or on, or with respect to, said Bond. If any Bond is not presented for payment within four (4) years following the date when such Bond becomes due at Maturity, the Paying Agent shall repay to the Issuer the funds theretofore held by it for payment of such Bond, and such Bond shall, subject to the defense of any applicable statute of limitation, thereafter be an unsecured obligation of the Issuer, and the Owner thereof shall 5 be entitled to look only to the Issuer for payment, and then only to the extent of the amount so repaid to it by the Paying Agent, and the Issuer shall not be liable for any interest thereon and shall not be regarded as a trustee of such money. Payments Due on Saturdays, Sundays and Holidays In any case where a Bond Payment Date is not a Business Day, then payment of principal, Redemption Price or interest need not be made on such Bond Payment Date but may be made on the next succeeding Business Day with the same force and effect as if made on such Bond Payment Date, and no interest shall accrue for the period after such Bond Payment Date. Book-Entry Bonds; Securities Depository The Bonds shall initially be registered to Cede & Co., the nominee for the Securities Depository, and no Beneficial Owner will receive certificates representing their respective interests in the Bonds, except in the event the Bond Registrar issues Replacement Bonds. It is anticipated that during the term of the Bonds, the Securities Depository will make book-entry transfers among its Participants and receive and transmit payment of principal of, premium, if any, and interest on, the Bonds to the Participants until and unless the Bond Registrar authenticates and delivers Replacement Bonds to the Beneficial Owners as described in the following paragraphs. The City may decide, subject to the requirements of the Operational Arrangements of OTC (or a successor Securities Depository), and the following provisions of this section to discontinue use of the system of book-entry transfers through DTC (or a successor Securities Depository): (a) If the City determines (1) that the Securities Depository is unable to properly discharge its responsibilities, or (2) that the Securities Depository is no longer qualified to act as a securities depository and registered clearing agency under the Securities and Exchange Act of 1934, as amended, or (3) that the continuation of a book-entry system to the exclusion of any Bonds being issued to any Owner other than Cede & Co. is no longer in the best interests of the Beneficial Owners of the Bonds; or (b) if the Bond Registrar receives written notice from Participants having interest in not less than 50% of the Bonds Outstanding, as shown on the records of the Securities Depository (and certified to such effect by the Securities Depository), that the continuation of a book-entry system to the exclusion of any Bonds being issued to any Owner other than Cede & Co. is no longer in the best interests of the Beneficial Owners of the Bonds, then the Bond Registrar shall notify the Owners of such determination or such notice and of the availability of certificates to owners requesting the same, and the Bond Registrar shall register in the name of and authenticate and deliver Replacement Bonds to the Beneficial Owners or their nominees in principal amounts representing the interest of each, making such adjustments as it may find necessary or appropriate as to accrued interest and previous calls for redemption; provided, that in the case of a determination under (a)(l) or (a)(2) of this paragraph, the City, with the consent of the Bond Registrar, may select a successor securities depository in accordance with the following paragraph to effect book-entry transfers. In such event, all references to the Securities Depository herein shall relate to the period of time when the Securities Depository has possession of at least one Bond. Upon the issuance of Replacement Bonds, all references herein to obligations imposed upon or to be performed by the Securities Depository shall be deemed to be imposed upon and performed by the Bond Registrar, to the extent applicable with respect to such Replacement Bonds. If the Securities Depository resigns and the City, the Bond Registrar or Owners are unable to locate a qualified successor of the Securities Depository, then the Bond Registrar shall authenticate and cause delivery of Replacement Bonds to Owners, as provided herein. The Bond Registrar may rely on information from the Securities Depository and its Participants as to the names of the Beneficial Owners of the Bonds. The cost of printing, registration, authentication, and delivery of Replacement Bonds shall be paid for by the City. 6 In the event the Securities Depository resigns, is unable to properly discharge its responsibilities, or is no longer qualified to act as a securities depository and registered clearing agency under the Securities and Exchange Act of 1934, as amended, the City may appoint a successor Securities Depository provided the Bond Registrar receives written evidence satisfactory to the Bond Registrar with respect to the ability of the successor Securities Depository to discharge its responsibilities. Any such successor Securities Depository shall be a securities depository which is a registered clearing agency under the Securities and Exchange Act of 1934, as amended, or other applicable statute or regulation that operates a securities depository upon reasonable and customary terms. The Bond Registrar upon its receipt of a Bond or Bonds for cancellation shall cause the delivery of the Bonds to the successor Securities Depository in appropriate denominations and form as provided in the Bond Resolution. THE DEPOSITORY TRUST COMPANY 1. The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for the Bonds. The Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully- registered bond will be issued for each scheduled maturity of the Bonds, and will be deposited with DTC. 2. DTC, the world's largest depository, is a limited-purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17 A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.6 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments from over 100 countries that DTC's participants ("Direct Participants") deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants Include U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). DTC has a Standard & Poor's rating of "AA+". The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. 3. Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Security ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Bonds, except in the event that use of the book-entry system for the Bonds is discontinued. 4. To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. 7 5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. 6. Redemption notices shall be sent to DTC. If less than all of the Bonds within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. 7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the Bonds unless authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the Issuer as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). 8. Redemption proceeds, distributions, and dividend payments on the Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the Issuer or Paying Agent, on the payment date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC nor its nominee, the Paying Agent, or the Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Issuer or Paying Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. 9. A Beneficial Owner shall give notice to elect to have its Bonds purchased or tendered, through its Participant, to the Paying Agent, and shall effect delivery of such Bonds by causing the Direct Participant to transfer the Participant's interest in the Bonds, on DTC's records, to the Paying Agent. The requirement for physical delivery of the Bonds in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Bonds are transferred by Direct Participants on DTC's records and followed by a book-entry credit of tendered Bonds to the Paying Agent's DTC account. 10. DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to the Issuer or Paying Agent. Under such circumstances, in the event that a successor securities depository is not obtained, certificates are required to be printed and delivered. 11. The Issuer may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, certificates will be printed and delivered to DTC. 12. The information in this section concerning DTC and DTC's book-entry system has been obtained from sources that the Issuer believes to be reliable, but the Issuer takes no responsibility for the accuracy thereof. 8 THE FINANCING PLAN Proceeds from the sale of the Bonds will be used to provide long term financing for a portion of the costs of certain public improvements within the City (collectively, the "Bond Projects"), retire a portion of the City's outstanding general obligation temporary notes and to pay the costs associated with the issuance of the Bonds. The Bond Projects are as follows: Project Descri ption 9th Street Bridge Smoky Hill River Renewal Final Design Sanitation Trucks Heritage Hall HVAC Magnolia Hills Estate No. 2 (SBD) Stone Lake Phase 3A (SBD) Markey Road Trail (SBD) Ordinance/ Resolution Ord. 02-10074; Res. 19-7677 Ord. 17-10885 Res. 20-7818 Res. 21-7931 Res. 19-7760 Res. 19-7751 Res. 21-7957 Authority K.S.A. 12-685 et seq. Kan Cents. Art 12, § 5 K.S.A. 12-2104 K.S.A. 12-1736 K.S.A. 12-6a01 et seq. K.S.A. 12-6a01 et seq. K.S.A. 12-6a01 et seq. Total: SOURCES AND USES OF FUNDS Principal Amount $1,935,000 1,680,000 1,610,000 165,000 1,530,000 1,250,000 25.000 $8,195,000 Funds to be used in the Financing Plan will be provided and applied approximately as follows, exclusive of accrued interest. Sources of Funds: Principal Amount Available Funds of the Issuer Net Original Issue Premium Total Sources of Funds Uses of Funds: Deposit to Current Improvement Fund Costs of Issuance Underwriter's Discount Total Application REMAINDER OF THIS PAGE LEFT BLANK INTENTIONALLY 9 RISK FACTORS AND INVESTMENT CONSIDERATIONS A PROSPECTIVE PURCHASER OF THE BONDS DESCRIBED HEREIN SHOULD BE AWARE THAT THERE ARE CERTAIN RISKS ASSOCIATED WITH THE BONDS WHICH MUST BE RECOGNIZED. THE FOLLOWING STATEMENTS REGARDING CERTAIN RISKS ASSOCIATED WITH THE OFFERING SHOULD NOT BE CONSIDERED AS A COMPLETE DESCRIPTION OF ALL RISKS TO BE CONSIDERED IN THE DECISION TO PURCHASE THE BONDS. PROSPECTIVE PURCHASERS OF THE BONDS SHOULD ANALYZE CAREFULLY THE INFORMATION CONTAINED IN THIS OFFICIAL STATEMENT AND ADDITIONAL INFORMATION IN THE FORM OF THE COMPLETE DOCUMENTS SUMMARIZED HEREIN, COPIES OF WHICH ARE AVAILABLE AND MAY BE OBTAINED FROM THE CITY OR THE UNDERWRITERS. Legal Matters Various state and federal laws, regulations and constitutional provisions apply to the obligations created by the Bonds. There is no assurance that there will not be any change in, interpretation of, or addition to such applicable laws, provisions and regulations which would have a material effect, either directly or indirectly, on the City or the taxing authority of the City. Limitations on Remedies Available to Owners of Bonds The enforceability of the rights and remedies of the owners of Bonds, and the obligations incurred by the City in issuing the Bonds, are subject to the following: the federal Bankruptcy Code and applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or affecting the enforcement of creditors' rights generally, now or hereafter in effect; usual equity principles which may limit the specific enforcement under state law of certain remedies; the exercise by the United States of America of the powers delegated to it by the United States Constitution; and the reasonable and necessary exercise, in certain unusual situations, of the police power inherent in the State of Kansas and its governmental subdivisions in the interest of serving a legitimate and significant public purpose. Bankruptcy proceedings, or the exercise of powers by the federal or state government, if initiated, could subject the owners of the Bonds to judicial discretion and interpretation of their rights in bankruptcy and otherwise, and consequently may involve risks of delay, limitation or modification of their rights. Debt Service Source; Issuer's Tax Revenues The Bonds are general obligations of the Issuer payable as to both principal and interest, if necessary, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The Legislature may from time to time adopt changes in the property tax system or method of imposing and collecting property and/or sales taxes within the State. The effects of such legislative changes could affect the Issuer's property tax and sales tax collections, and the impact could be material. Other future events, such as the loss of a major taxpayer, reductions in assessed value, increases in property tax rates of overlapping taxing units, or a decrease in sales tax revenues could increase effective property tax rates and the resulting increase could be material. Taxpayers may also challenge the value of property assigned by the county appraiser. If a taxpayer valuation challenge is successful, the liability of the Issuer to refund property taxes previously paid under protest may have a material adverse effect on the Issuer's financial situation. See "APPENDIX A-FINANCIAL INFORMATION CONCERNING THE CITY -Appraisal and Assessment Procedures." Kansas Public Employees Retirement System As described in "APPENDIX A-GENERAL INFORMATION CONCERNING THE CITY-Pension and Employee Retirement Plans," the Issuer participates in the Kansas Public Employees Retirement System ("KPERS"), as an instrumentality of the State to provide retirement and related benefits to public employees in Kansas. KPERS administers three statewide defined benefit retirement plans for public employees which are separate and distinct with different membership groups, actuarial assumptions, experience, contribution rates and benefit options. The Issuer participates in the Police and Firemen's Retirement System ("KP&F") and the Public Employees Retirement 10 S'ystem -Local Group (the "Plan"). Under existing law, employees make contributions and the Issuer makes all employer contributions to the Plan; neither the employees nor the Issuer are directly responsible for any unfunded accrued actuarial liability ("UAAL"). However, the Plan contribution rates may be adjusted by legislative action over time to address any UAAL. According to KPERS' Valuation Report, the Local Group had an UAAL of approximately $1.419 billion in calendar year 2020 and KP&F had an UAAL of approximately $918 million. Taxation of Interest on the Bonds An opinion of Bond Counsel will be obtained to the effect that interest earned on the Bonds is excludable from gross income for federal income tax purposes under current provisions of the Internal Revenue Code of 1986, as amended (the "Code"), and applicable rulings and regulations under the Code; however, an application for a ruling has not been made and an opinion of counsel is not binding upon the Internal Revenue Service. There can be no assurance that the present provisions of the Code, or the rules and regulations thereunder, will not be adversely amended or modified, thereby rendering the interest earned on the Bonds includable in gross income for federal income tax purposes. The City has covenanted in the Bond Resolution and in other documents and certificates to be delivered in connection with the issuance of the Bonds to comply with the provisions of the Code, including those which require the City to take or omit to take certain actions after the issuance of the Bonds. Because the existence and continuation of the excludabllity of the interest on the Bonds depends upon events occurring after the date of issuance of the Bonds, the opinion of Bond Counsel described under "TAX MATTERS" assumes the compliance by the City with the provisions of the Code described above and the regulations relating thereto. No opinion is expressed by Bond Counsel with respect to the excludability of the interest on the Bonds in the event of noncompliance with such provisions. The failure of the City to comply with the provisions described above may cause the interest on the Bonds to become includable in gross income as of the date of issuance. Premium on the Bonds [The initial offering prices of certain maturities of the Bonds that are subject to optional redemption may be in excess of the respective principal amounts thereof.] Any person who purchases such a Security in excess of its principal amount, whether during the initial offering or in a secondary market transaction, should consider that the Bonds are subject to redemption at par under the various circumstances described under THE BONDS-"Redemption Provisions." No Additional Interest or Mandatory Redemption upon Event of Taxability The Bond Resolution does not provide for the payment of additional interest or penalty on the Bonds or the mandatory redemption thereof if the interest thereon becomes includable in gross income for federal income tax purposes. Likewise, the Bond Resolution does not provide for the payment of any additional interest or penalty on the Bonds if the interest thereon becomes subject to income taxation by the State of Kansas. Suitability of Investment The tax exempt feature of the Bonds is more valuable to high tax bracket investors than to investors who are in low tax brackets, and so the value of the interest compensation to any particular investor will vary with individual tax rates. Each prospective investor should carefully examine this Official Statement, including the Appendices hereto, and its own financial condition to make a judgment as to its ability to bear the economic risk of such an investment, and whether or not the Bonds are an appropriate investment. 11 Market for the Bonds Ratings. The Bonds have been assigned the financial ratings set forth in the section hereof titled RATINGS. There is no assurance that a particular rating will remain in effect for any given period of time or that it will not be revised, either downward or upward, or withdrawn entirely, if in the judgment of the agency originally establishing such rating, circumstances so warrant. Any downward revision or withdrawal of any rating may have an adverse affect on the market price of the Bonds. Secondary Market. There is no assurance that a secondary market will develop for the purchase and sale of the Bonds. Prices of Bonds traded in the secondary market, though, are subject to adjustment upward and downward in response to changes in the credit markets. From time to time it may be necessary to suspend indefinitely secondary market trading in the Bonds as a result of financial condition or market position of broker- dealers, prevailing market conditions, lack of adequate current financial information about the City, or a material adverse change in the financial condition of the City, whether or not the Bonds are in default as to principal and interest payments, and other factors which may give rise to uncertainty concerning prudent secondary market practices. Recent Legislative Proposals Congress and the President periodically work on various proposals to increase income taxes and to reduce tax deductions and expenditures. These discussions have made it clear that the tax exemption of municipal bonds is considered a tax expenditure and as such there is no guaranty that the tax exempt status on municipal bonds will remain unchanged as a result of these discussions. If a legislative change is enacted which results in all, or a portion, of the interest on the Bonds being subjected to Federal income taxes, such legislation or proposals could affect the value or marketability of the Bonds. Prospective purchasers of the Bonds should consult their own tax advisers regarding the impact of any change in law on the Bonds. COVID-19 On March 11, 2020, the World Health Organization proclaimed the Coronavirus (COVID-19) to be a pandemic. In an effort to lessen the risk of transmission of COVID-19, the United States government, state and local governments and private industries have taken measures to limit social interactions in an effort to limit the spread of COVID-19, affecting business activities and impacting global, state and local commerce and financial markets. State and local governmental authorities continue efforts to contain and limit the spread of COVID-19. As of the date hereof, the Issuer has not experienced material adverse changes relative to its adopted budget with regard to expenditures or receipt of revenues. However, future revenue collections, including property tax collections that are essential to repayment of the Bonds, may deviate from historical or anticipated levels. The emergence of COVID-19 and the spread thereof continues to be an emerging and evolving issue. The Issuer is not able to predict and makes no representations as to the long term economic impact of the COVID-19 pandemic on the Issuer. LEGAL MATTERS All matters incident to the authorization and issuance of the Bonds by the City are subject to the approval of Gilmore & Bell, P.C., Kansas City, Missouri, Bond Counsel to the City. The factual and financial information appearing herein has been supplied or reviewed by certain officials of the City and its certified public accountants, as referred to herein. Bond Counsel has participated in the preparation of the matters appearing in the sections of this Official Statement captioned THE BONDS, LEGAL MATTERS, TAX MATTERS, and APPENDIX B -FORM OF CONTINUING DISCLOSURE UNDERTAKING. 12 TAX MATTERS General The following is a summary of the material federal and State of Kansas income tax consequences of holding and disposing of the Bonds. This summary is based upon laws, regulations, rulings and judicial decisions now in effect, all of which are subject to change (possibly on a retroactive basis). This summary does not discuss all aspects of federal income taxation that may be relevant to investors in light of their personal investment circumstances or describe the tax consequences to certain types of holders subject to special treatment under the federal income tax laws (for example, dealers in securities or other persons who do not hold the Bonds as a capital asset, tax-exempt organizations, individual retirement accounts and other tax deferred accounts, and foreign taxpayers), and, except for the income tax laws of the State of Kansas, does not discuss the consequences to an owner under state, local or foreign tax laws. The summary does not deal with the tax treatment of persons who purchase the Bonds in the secondary market. Prospective investors are advised to consult their own tax advisors regarding federal, state, local and other tax considerations of holding and disposing of the Bonds. Opinion of Bond Counsel In the opinion of Bond Counsel, under the law existing as of the issue date of the Bonds: Federal Tax Exemption: The interest on the Bonds [(including any original issue discount properly allocable to an owner thereof)) is excludable from gross income for federal income tax purposes. Alternative Minimum Tax. Interest on the Bonds is not an item of tax preference for purposes of computing the federal alternative minimum tax. Bank Qualification -The Bonds. The Bonds are "qualified tax-exempt obligations" within the meaning of Code§ 265(b)(3). Kansas Tax Exemption. The interest on the Bonds is exempt from income taxation by the State of Kansas. No Other Opinions. Bond Counsel's opinions are provided as of the date of the original issue of the Bonds, subject to the condition that the City comply with all requirements of the Code that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excludable from gross income for federal income tax purposes. The City has covenanted to comply with all such requirements. Failure to comply with certain of such requirements may cause the inclusion of interest on the Bonds in gross income for federal income tax purposes retroactive to the date of issuance of the Bonds. Bond Counsel is expressing no opinion regarding other federal, state or local tax consequences arising with respect to the Bonds. Other Tax Consequences Original Issue Discount. For federal income tax purposes, original issue discount is the excess of the stated redemption price at maturity of a Bond over its issue price. The stated redemption price at maturity of a Bond is the sum of all payments on the Bond other than "qualified stated interest" (i.e., interest unconditionally payable at least annually at a single fixed rate). The issue price of a Bond is generally the first price at which a substantial amount of the Bonds of that maturity have been sold to the public. Under Code § 1288, original issue discount on tax-exempt obligations accrues on a compound basis. The amount of original issue discount that accrues to an owner of a Bond during any accrual period generally equals (1) the issue price of that Bond, plus the amount of original issue discount accrued in all prior accrual periods, multiplied by (2) the yield to maturity on that Bond (determined on the basis of compounding at the close of each accrual period and properly adjusted for the length of the accrual period), minus (3) any interest payable on that Bond during that accrual period. The amount of original issue discount accrued in a particular accrual period will be considered to be received ratably on each day of the accrual period, will be excludable from gross income for federal income tax purposes, and will increase the owner's tax basis in that Bond. 13 Prospective investors should consult their own tax advisors concerning the calculation and accrual of original issue discount.] Original Issue Premium. For federal income tax purposes, premium is the excess of the issue price of a Bond over its stated redemption price at maturity. The stated redemption price at maturity of a Bond is the sum of all payments on the Bond other than "qualified stated interest" (i.e., interest unconditionally payable at least annually at a single fixed rate). The issue price of a Bond is generally the first price at which a substantial amount of the Bonds of that maturity have been sold to the public. Under Code§ 171, premium on tax-exempt obligations amortizes over the term of the Bond using constant yield principles, based on the purchaser's yield to maturity. As premium is amortized, the owner's basis in the Bond and the amount of tax-exempt interest received will be reduced by the amount of amortizable premium properly allocable to the owner, which will result in an increase in the gain (or decrease in the loss) to be recognized for federal income tax purposes on sale or disposition of the Bond prior to its maturity. Even though the owner's basis is reduced, no federal income tax deduction is allowed. Prospective investors should consult their own tax advisors concerning the calculation and accrual of premium.] Sale, Exchange or Retirement of Bonds. Upon the sale, exchange or retirement (including redemption) of a Bond, an owner of the Bond generally will recognize gain or loss in an amount equal to the difference between the amount of cash and the fair market value of any property received on the sale, exchange or retirement of the Bond (other than in respect of accrued and unpaid interest) and such owner's adjusted tax basis in the Bond. To the extent the Bonds are held as a capital asset, such gain or loss will be capital gain or loss and will be long-term capital gain or loss if the Bond has been held for more than 12 months at the time of sale, exchange or retirement. Reporting Requirements. In general, information reporting requirements will apply to certain payments of principal, interest and premium paid on Bonds, and to the proceeds paid on the sale of Bonds, other than certain exempt recipients (such as corporations and foreign entities). A backup withholding tax will apply to such payments if the owner fails to provide a taxpayer identification number or certification of foreign or other exempt status or fails to report in full dividend and interest income. The amount of any backup withholding from a payment to an owner will be allowed as a credit against the owner's federal income tax liability. Collateral Federal Income Tax Consequences. Prospective purchasers of the Bonds should be aware that ownership of the Bonds may result in collateral federal income tax consequences to certain taxpayers, including, without limitation, financial institutions, property and casualty insurance companies, individual recipients of Social Security or Railroad Retirement benefits, certain S corporations with "excess net passive income," foreign corporations subject to the branch profits tax, life insurance companies, and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry or have paid or incurred certain expenses allocable to the Bonds. Bond Counsel expresses no opinion regarding these tax consequences. Purchasers of Bonds should consult their tax advisors as to the applicability of these tax consequences and other federal income tax consequences of the purchase, ownership and disposition of the Bonds, including the possible application of state, local, foreign and other tax laws. RATING Moody's Investors Service, has assigned a rating of "Aa3" to the Bonds. Any explanation of the significance of such rating may be obtained only from said rating agency. There is no assurance that the rating will remain for any given period of time or that they may not be lowered or withdrawn entirely by the rating service if, in their judgment, circumstances so warrant. Any such downward change in or withdrawal of the rating may have an adverse effect on the market price of the Bonds. MUNICIPAL ADVISOR Stifel, Nicolaus & Company, Incorporated, Kansas City, Missouri, has acted as Municipal Advisor to the City in connection with the sale of the Bonds. The Municipal Advisor has assisted the Issuer with the preparation of this Official Statement, but has not independently verified the factual and financial information contained herein. The Municipal 14 Advisor has also assisted the City with other matters relating to the issuance of the Securities. The fees of the Municipal Advisor are contingent upon the issuance of the Bonds. UNDERWRITING The Bonds were purchased at public sale by ~[ --~l (the "Underwriter") at a price equal to the par amount of the Bonds, plus a net [premium/discount] of$[ ], less an underwriting discount of$._ ___ ]. ABSENCE OF MATERIAL LITIGATION The City, in the ordinary course of business, is a party to various legal proceedings. In the opinion of management of the City, any Judgment rendered against the City in such proceedings would not materially adversely affect the financial position of the City. The Transcript of Proceedings will contain a certificate of non-litigation dated as of the closing date and executed by the City to the effect that, except as disclosed in the Official Statement, there is no controversy, suit, or proceeding of any kind pending or, to the knowledge of the City, threatened wherein or whereby any question is raised, or may be raised, questioning, disputing, or affecting in any way the legal organization of the City or its boundaries or the legality of any official act shown to have been done regarding the issuance of the Bonds or the constitutionality or validity of the obligation represented by the Bonds or the means provided for the payment of the Bonds. CONTINUING DISCLOSURE The Securities and Exchange Commission (the "SEC") has promulgated amendments to Rule 15c2-12 (the "Rule"), requiring continuous secondary market disclosure. In connection with the issuance of the Securities, the Issuer will enter into a continuing disclosure undertaking (the "Disclosure Undertaking") wherein the Issuer covenants to annually provide certain financial information and operating data (collectively, the "Annual Report") and other information necessary to comply with the Rule, and to transmit the same to the Municipal Securities Rulemaking Board. Pursuant to the Disclosure Undertaking, this Issuer shall, not later than the first day of the seventh month after the end of the Issuer's Fiscal Year, commencing with the year ending December 31, 2021. In the Bond Resolution, the Issuer covenants with the Underwriter and the Beneficial Owners to apply the provisions of the Disclosure Undertaking to the Bonds. This covenant is for the benefit of and is enforceable by the Beneficial Owners of the Bonds. For more information regarding the Disclosure Undertaking, see "APPENDIX B - FORM OF CONTINUING DISCLOSURE UNDERTAKING." The Issuer believes it has complied during the past five years with its prior undertakings under the Rule, except as follows: On September 28, 2020, the Issuer entered into a Loan Agreement with the Kansas Department of Health and Environment to finance improvements to the City's water distribution system. The Ordinance authorizing the Issuer's execution of the Loan Agreement was published on October 1, 2020. On October 16, 2020, the Issuer filed an event notice related to such Loan Agreement. The Issuer's audited financial statements for each of the last five fiscal years were not completed by the filing deadlines primarily because of challenges with financial software conversion (which has since been completed), staff turnover and delayed receipt of component unit audits. In compliance with the Issuer's prior disclosure undertakings, the Issuer timely filed unaudited financial statements and promptly filed audited financial statements when they became available. 15 CERTIFICATION OF THIS OFFICIAL STATEMENT The preparation and distribution of this Official Statement has been authorized by the City. This Official Statement is hereby duly approved by the governing body of the City as of the date on the cover page hereof. CITY OF SALINA, KANSAS 16 APPENDIX A FINANCIAL OVERVIEW OF THE CITY 2021 Estimated Actual Valuation (1) 2021 Assessed Valuation Outstanding General Obligation Bonds (2) Population (2020 U.S. Census Bureau Estimate) General Obligation Debt Per Capita Ratio of General Obligation Debt to Estimated Actual Valuation Ratio of General Obligation Debt to Estimated Assessed Valuation Outstanding Temporary Notes Outstanding State Loans (3) Outstanding Lease Purchase Obligations Outstanding Utility System Revenue Bonds Outstanding Special Obligation Revenue Bonds Overlapping General Obligation Debt (4) Direct and Overlapping General Obligation Debt (5) Direct and Overlapping General Obligation Debt Per Capita Ratio of Direct and Overlapping Debt to Estimated Actual Valuation Ratio of Direct and Overlapping Debt to Estimated Assessed Valuation $ 3,392,138,959 $ 519,483,033 $ 75,450,000 $ $ $ $ $ $ $ $ $ 46,889 1,609 2.22% 14.52% 0 76,466,427 495,898 8,865,000 22,295,000 168,168,440 320,084,867 6,867 9.44% 61.62% (1) For a further description of how Estimated Actual Valuation is calculated and additional historical figures see the section titled FINANCIAL INFORMATION CONCERNING THE CITY -"Estimated Actual Valuation". (2) Includes the Bonds. (3) The City intends to repay such loans from the net revenues of its municipal water and sewer system. However, such loans are ultimately secured by the City's full faith and credit. See DEBT SUMMARY OF THE CITY -"Current Indebtedness -State Loans". (4) For a more detailed explanation of the overlapping debt of the other jurisdictions, see DEBT SUMMARY OF THE CITY -"Overlapping Debt." Includes general obligation bonds issued by Saline County which are anticipated to be repaid by a dedicated sales tax. (5) Includes outstanding general obligation bonds, temporary notes and state loans of the City and general obligation bonds of overlapping jurisdictions. A-1 GENERAL INFORMATION CONCERNING THE CITY Location and Size The City of Salina is located in north central Kansas, near the geographic center of the contiguous United States. It is the seventh largest city in Kansas, with a 2020 U.S. Census Bureau estimate of 46,889. The City is the county seat for Saline County which had an estimated 2020 U.S. Census Bureau population of 54,303. Situated at the intersection of Interstate Highways 70 and 135, the City of Salina serves as the industrial, medical, retail, trade and service hub for north central Kansas. Kansas City, Kansas, and Wichita, Kansas, are 175 and 95 miles away, respectively, via the direct access of these two major highways. The City encompasses a total area of approximately 23 square miles. Government The Town of Salina was organized in 1858 under the Town and Village Act in the State of Kansas. The City has had a Commission-City Manager form of government since 1921. The Commission comprises five members elected at-large. Each year the Commission chooses one member to act as Mayor. The City Manager is appointed by the Governing Body and acts as its primary agent in accordance with state statute. Other city officers and employees are appointed by the City Manager. The Governing Body is responsible for the policy determination, and the City Manager is responsible for the administration of the municipal government. Salina became a City of the first class on July 9, 1920. There are no organized city employee unions. The present elected officials of the City, along with the expiration of their current terms of office, are as follows: Population Name Trent Davis, M.D. Karl F. Ryan Mike Hoppock Greg Lenkiewicz Bill Longbine Title Mayor Commissioner Commissioner Commissioner Commissioner Term Expires 2024 2024 2024 2026 2026 The City of Salina has a population that is approaching metropolitan area status. This is defined by the U.S. Census Bureau as cities with 50,000 inhabitants or more. The following table and graph show the population for the City for selected years as provided by the U.S. Census Bureau. Year 2020 2019 2018 2017 2016 2015 A-2 U.S. Census Bureau Population 46,889 46,550 46,716 46,994 47,336 47,813 Police and Fire Protection The City of Salina provides police and fire protection services to residents of the City and surrounding areas. The two departments employ 187 full-time employees for out of the 428 total employed by the City. Firefighting services are provided from four stations located throughout the City with 87 full-time firefighters. The fire department operates 31 vehicles and provides emergency medical services. The Department was recently upgraded to an Insurance Services Office rating of 2. The police department employs 97 personnel, of which 77 are sworn positions. The Department operates 45 police vehicles, including patrol vehicles, motorcycles, and scooters. Both Departments are accredited by their respective professional organizations. Educational Facilities The City of Salina has a very complete and diverse educational system from the primary level up to its higher educational institutions. Unified School District No. 305 provides public education through its eight elementary, two middle, and two senior high schools. The District also operates alternative education, vocational-technical, and special education schools. Current enrollment is over 7,000. Additionally, there are a number of parochial institutions that operate two grade schools, two junior high schools, and one senior high school. The City is home to five regional or private upper-level specialty schools. The Kansas Highway Patrol has a training academy located in Salina. Kansas State University Salina Aerospace and Technology Campus. The University offers a variety of two- and four-year aviation and technology degree programs. Areas of emphasis include civil, electrical and mechanical engineering technologies, aeronautical studies, and avionics. The campus is located entirely within the boundaries of the Salina Airport Industrial Center. Approximately 642 students are currently enrolled in the school. Kansas Wesleyan University. Kansas Wesleyan University was founded in 1886 and is located within the City. Currently, Kansas Wesleyan maintains an enrollment of approximately 716 students, the majority from Kansas and surrounding states. The school, based on a liberal arts foundation, offers more than 50 major programs, including graduate studies. Evening degree completion programs for adults are also available. Kansas Wesleyan is a member of the Associated Colleges of Central Kansas, a consortium of six academic institutions within 70 miles of the University through which students may enroll in courses and utilize resources. The University of Kansas School of Medicine and School of Nursing have a campus in Salina. This campus is aimed at students with a strong desire to practice medicine in rural areas. The School of Medicine has 32 students and the School of Nursing has 48 students. The Kansas Center for Rural Health, started in 2022, is also located on the campus. The Kansas Center for Rural Health is focused on improving health disparities and outcomes in rural Kansas through research, education and service. Transportation In addition to 1-70 and 1-135, US-81 and US-40 also intersect Salina. Several freight companies provide motor freight service in Salina with direct and connecting schedules to all cities in the United States. Bus service is available at regular intervals during each day in all directions. Union Pacific gives the City rail service in four directions out of the City and provides daily package-car service in and out of Salina. There are approximately 8 daily freights stopping in the City. Existing terminals have adequate capacity to handle present and greatly increased future capacity. Approximately 30 miles of storage tracks are available. A-3 The City is served by the Salina Regional Airport and scheduled air service is provided by means of an U.S. Department of Transportation (USDOT) Essential Air Service (EAS) Program subsidy. The current EAS Program provider is SkyWest Airlines operating as United Express. EAS Program subsidy contracts are rebid by eligible air carriers every two to three years. The USDOT is currently accepting proposals from eligible air carriers for a new EAS Program subsidy contract at Salina. Utilities and Infrastructure Evergy, Inc. supplies electricity and Kansas Gas Service provides natural gas to the City. The City owns its own water and sewage system. Additionally, the City is responsible for street maintenance and police and fire protection for the Airport. SBC provides telephone service. Two cellular phone companies provide service to the City. Health Facilities The City is served by Salina Regional Health Center ("SRHC"), a 394-bed (223 staffed) regional facility. SRHC is an acute care facility for the diagnosis and treatment of all types of diseases and conditions, and includes a cancer treatment center and two medical office buildings. The institution is also a 50% partner in a separate surgical hospital adjacent to the Asbury campus of SRHC. Several other facilities providing mental health services, counseling, and alcohol and drug dependency treatment programs are located in the City. Financial Institutions Four banks are headquartered in the City and reported combined deposits in excess of $1.139 billion as of Spring, 2021. A savings bank has a branch office in the City. There are several credit unions available in the city. Source: Kansas Bank Directory Pension and Employee Retirement Plans The Issuer participates in the Kansas Public Employees Retirement System ("KPERS") established in 1962, as an instrumentality of the State, pursuant to K.S.A. 74-4901 et seq., to provide retirement and related benefits to public employees in Kansas. KPERS is governed by a board of trustees consisting of nine members each of whom serve four-year terms. The board of trustees appoints an executive director to serve as the managing officer of KPERS and manage a staff to carry out daily operations of the system. As of December 31, 2020, KPERS serves approximately 326,000 members and approximately 1,500 participating employers, including the State, school districts, counties, cities, public libraries, hospitals and other governmental units. KPERS administers the following three statewide, defined benefit retirement plans for public employees: (a) Kansas Public Employees Retirement System; (b) Kansas Police and Firemen's Retirement System; and (c) Kansas Retirement System for Judges. These three plans are separate and distinct with different membership groups, actuarial assumptions, experience, contribution rates and benefit options. The Kansas Public Employees Retirement System is the largest A-4 of the three plans, accounting for approximately 95% of the members. The Kansas Public Employees Retirement System is further divided into two separate groups, as follows: (a) State/School Group -includes members employed by the State, school districts, community colleges, vocational-technical schools and educational cooperatives. The State of Kansas makes all employer contributions for this group, the majority of which comes from the State General Fund. (b) Local Group -all participating cities, counties, library boards, water districts and political subdivisions are included in this group. Local employers contribute at a different rate than the State/School Group rate. KPERS is currently a qualified, governmental, § 401(a) defined benefit pension plan, and has received IRS determination letters attesting to the plan's qualified status dated October 14, 1999 and March 5, 2001. KPERS is also a "contributory" defined benefit plan, meaning that employees make contributions to the plan. This contrasts it from noncontributory pension plans, which are funded solely by employer contributions. The Issuer's employees currently annually contribute 6% of their gross salary to the plan if such employees are KPERS Tier 1 members (covered employment prior to July 1, 2009), KPERS Tier 2 members (covered employment on or after July 1, 2009), or KPERS Tier 3 members (covered employment on or after January 1, 2015). In 2021, the Legislature authorized the issuance of revenue bonds to provide net proceeds of up to $500 million (the "Revenue Bonds") the proceeds of which must be applied to the unfunded actuarial pension liability as directed by KPERS. The Revenue Bonds in the principal amount of $504,535,000 were issued August 26, 2021. The repayment of the Revenue Bonds shall be subject to legislative annual appropriation, shall not be an obligation of the KPERS system, and the full faith and credit or taxing power of the State shall not be pledged to the repayment of the Revenue Bonds. Due to the authorization of the Revenue Bonds, the Legislature changed the State/School employer contribution rate from 14.09% to 13.33% for fiscal year 2022 and from 13.86% to 13.11% for fiscal year 2023. The Issuer's contribution varies from year to year based upon the annual actuarial valuation and appraisal made by KPERS, subject to legislative caps on percentage increases. The Issuer's contribution ls 8.87% of the employee's gross salary for calendar year 2021. The Issuer's contribution is projected to change to 8.90% of gross compensation for calendar year 2022. In addition, the Issuer contributes 1% of the employee's gross salary for Death and Disability Insurance for covered employees; provided that starting July 1, 2021, there will be a moratorium on the Death and Disability Insurance rate, and the Issuer will contribute 0% of the employee's gross salary for Death and Disability Insurance for covered employees after such date. According to the Valuation Report as of December 31, 2020 (the "2020 Valuation Report") the KPERS Local Group, of which the Issuer is a member, carried an unfunded accrued actuarial liability ("UAAL") of approximately $1.419 billion at the end of 2020. The amount of the UML in 2020 changed from the previous year's amount due to the factors discussed in the 2020 Valuation Report; such report also includes additional information relating to the funded status of the KPERS Local Group, including recent trends in the funded status of the KPERS Local Group. A copy of the 2020 Valuation Report is available on the KPERS website at kpers.org/about/reports.html. The Issuer has no means to independently verify any of the information set forth on the KPERS website or in the 2020 Valuation Report, which is the most recent financial and actuarial information available on the KPERS website relating to the funded status of the KPERS Local Group. The 2020 Valuation Report sets the employer contribution rate for the period beginning January 1, 2023, for the KPERS Local Group, and KPERS' actuaries identified that an employer contribution rate of 8.43% of covered payroll would be necessary, in addition to statutory contributions by covered employees, to eliminate the UML by the end of the actuarial period set forth in the 2020 Valuation Report. The statutory contribution rate of employers currently equals the 2020 Valuation Report's actuarial rate. As a result, members of the Local Group are adequately funding their projected actuarial liabilities and the UML can be expected to diminish over time. The required employer contribution rate may increase up to the maximum statutorily allowed rate, which is 1.2% in fiscal year 2017 and thereafter. A-5 The Issuer has established membership in the Kansas Police and Fire Retirement System ("KP&F") for its police and fire personnel. KP&F is a division of and is administered by KPERS. Annual contributions are adjusted annually based on actuarial studies, subject to legislative caps on percentage increases. According to the 2020 Valuation Report, KP&F carried an UAAL of approximately $918 million at the end of 2020. For KP&F, the Issuer's employees currently annually contribute 7.15% of their gross salary to the plan. For the year beginning January 1, 2021, the Issuer contributes 22.80% of employees' gross compensation. Beginning January 1, 2022, the Issuer's contribution is projected to change to 22.99% of gross compensation for calendar year 2022. The Issuer is required to implement GASB 68 -Accounting and Financial Reporting for Pensions. KPERS produces a Schedule of Employer and Non employer Allocations and Schedules of Pension Amounts by Employer and Nonemployer (the "GASB 68 Report") which provides the net pension liability allocated to each KPERS participant, including the Issuer. The GASB 68 Report is available on the KPERS website at kpers.org/about/reports.html. The Issuer has no means to independently verify any of the information set forth on the KPERS website or in the GASB 68 Report. It is important to note that under existing State law, the Issuer has no legal obligation for the UAAL or the net pension liability calculated by KPERS, and such figures are for informational purposes only. Other Information Public recreation facilities available to city residents include 27 parks, a public golf course, baseball/softball fields, the Kenwood Cove Aquatic Park, the Stifel Theatre for the Performing Arts, the Salina Community Theater, two museums and tennis courts. Two private clubs provide additional recreational opportunities for residents of the City. The Tony's Pizza Events Center (formerly the Bicentennial Center), a 7,500-seat facility, with over 40,000 square feet of exhibit space, nicknamed "Mid-America's Meeting Place", provides a venue for the region's numerous concerts, exhibitions, conventions, and other events are also held in the Center. There are several radio stations in the City. Five standard television stations from Wichita serve the Salina area. Additionally, Cox Communications provides cable television and broadband internet service to subscribing customers. One public library with over 230,000 volumes, two college libraries, a medical library, and a law library are located within the City. ECONOMIC INFORMATION CONCERNING THE CITY The City of Salina 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 City. Such companies include Schwan's Global Supply Chain, Inc., Salina Vortex, GeoProbe, Bergkamp, Kasa Industrial Controls, Premier Pneumatics, Great Plains Manufacturing, PKM Steel, Crestwood Cabinets, McShares, Inc., Pepsi Cola, Rev Group, Exide Battery, Advance Auto Parts Distribution Center, and Signify. Currently, manufacturing, retail trade, and service industries rank as the three primary employers in the City. No single industry is dominant. The government sector and wholesale trade industries make up the second tier of Salina employers. The City serves as a 24-county regional trade center for north central Kansas. Many individuals and businesses within a 70-mile radius travel to the City to purchase consumer goods and services. This designation as a regional trade center is supported by the fact that the City had the second highest "trade pull factor'' of all Kansas first class cities in 2021 according to Kansas Department of Revenue. City trade pull factor is computed by dividing the per capita sales tax of a city by the statewide per capita sales tax. A-6 According to the Economic Impact Report, from December 31, 2020 prepared by the Docking Institute of Public Affairs at Fort Hays State University and published in April 2021, businesses and organizations at the Salina Regional Airport and Airport Industrial Center employed 7,005 employees with a total level economic activity for 2020 of approximately $1,297,934,889. The report also cited that the Airport/Airport Industrial Center accounted for 13.0% of the employment in Saline County and 35% of the total economic activity in a seven-county area. The Kansas Department of Labor estimated the civilian labor force in the City of Salina for the year 2021 to be 24,962 persons. The estimated median household income for the City in 2019 was $50,490, and owner-occupied housing rates in the City were 63.4%. Salina is a city centered more on industry than agriculture. Currently, there are approximately 100 manufacturing and processing companies located in the City. The City, Saline County, the Chamber of Commerce, and the Salina Airport Authority have developed several economic incentives which can be offered as inducements to opening industrial facilities. These include property tax abatement for basic industry, the waiving of building permit and inspection fees, refunding of sales tax paid on machinery and equipment, and providing training for employees through the Salina Area Technical College and the Kansas State University at Salina. Additionally, a "build- to-suit-tenant" agreement is available on sites in the Airport Industrial Center that can provide 100% financing for land and building costs. In recent years, Dillon Companies, Inc., a subsidiary of Kroger Company, recently opened a 77,000 square foot facility. Schwan's Company is building a new 400,000 square foot expansion at the existing manufacturing facility. The project is expected to bring 225 new jobs by 2023. Great Plains Manufacturing announced an expansion in Salina in late 2020. Dick's Sporting Goods and Marshalls clothing store opened in a building formerly occupied by Sutherland Lumber Company. In addition, several new restaurants have opened or expanded, including Ya Vas Bistro, Old Chicago Pizza and Barillo Grille. The Salina Airport Authoritv The Salina Airport Authority (the "Authority") is a body corporate and politic. The Authority was created by the City of Salina in April 1965 pursuant to the authority granted to the City by the surplus property and public airport authority act of the State of Kansas. The Authority was created for the purpose of accepting as surplus property portions of the former Schilling Air Force Base, which was closed by the United States Department of Defense in June 1965. By quitclaim deed the Authority received over 2,900 acres of land and numerous buildings for the purpose of operating and developing the Salina Regional Airport and the Salina Airport Industrial Center. The Authority is managed and controlled by a five-member Board of Directors appointed by the Salina City Commission. The Salina Regional Airport (the "Airport") is the only commercial service airport serving Salina/Saline County and the 24-county area, which comprises North Central Kansas. The Airport also services the corporate, business, private aviation and flight training needs of industry, business and individuals in the area. The Airport is also used by Kansas State University Salina Aerospace and Technology Campus. (K-State Salina) The K-State Salina campus is located adjacent to the Airport. K-State Salina offers degrees in professional flight training, airframe and power plant maintenance, UAS, airport management and avionics technology. K-State Salina's fleet of training aircraft use the Airport daily. Other significant activity includes the Airport's role as an Airport of Embarkation/Debarkation for Fort Riley, Kansas located 60 miles to the east of Salina on 1-70. The Airport accommodates a wide variety of aircraft including business jets, military, flight training and general aviation aircraft. During calendar year 2021, the Salina Air Traffic Control Tower logged over 80,000 aircraft operations serving the needs of numerous business jets, the professional pilot training department at Kansas State Salina, general aviation, and military aircraft. The Airport's fixed base operator, Avflight Salina, delivered over 2.096 million gallons of fuel to the wide variety of aircraft utilizing the Airport during calendar year 2021. A-7 The Airport and Airport Industrial Center is home for over 125 businesses and organizations. One of the primary functions of the Authority is to facilitate the continued growth of jobs and payroll at the Airport and Airport Industrial Center. The Authority works in partnership with the City of Salina, Saline County, Salina Community Economic Development Organization, the Salina Area Chamber of Commerce, and the Kansas Department of Commerce for the retention of existing business and industry and the recruitment of new business and industry. A 2021 summary report prepared by the Docking Institute of Public Affairs at Fort Hays State University cited the business and organizations located at the Salina Regional Airport and Airport Industrial Center contributed approximately 42% of the total economic activity in Saline County during 2021." Airport and Airport Industrial Center businesses and organization account for 17% of the total employment for Saline County. Major Employers Industrial development during the past ten years has established a broad, industrial base in and around the City. A list of the major employers is as follows. All figures represent total full-time employment excluding seasonal and part-time employees. Name Salina Regional Health Center Unified School District No. 305 Schwan's Global Supply Chain, Inc. Great Plains Manufacturing Exide Technologies City of Salina Salina Vortex Saline County Walmart REV Group Source: Salina Chamber of Commerce Product/Business Healthcare School System Manufacturing Agricultural & Landscaping Equipment Battery Manufacturer City Government Manufacturing Local Government Discount Retail Manufacturing Estimated Employment 1,875 1,500 1,200 1,200 700 425 385 325 250 175 The following table shows the per capita personal income for residents of Saline County and the State during the years indicated: Year 2020 2019 2018 2017 2016 201S Source: Kansas Statistical Abstract Saline County N/A $50,820 49,983 47,831 46,084 44,542 A-8 State of Kansas $56,073 53,453 51,474 48,869 47,510 47,386 Labor Force The following tables show the labor force figures for the City of Salina and the State of Kansas. City of Salina: Total Unemployment Year Labor Force Emplo11ed Unemplo11ed Rate 2021 (Dec) 24,962 24,391 571 2.3% 2020 25,105 23,673 1,432 5.7 2019 25,643 24,847 796 3.1 2018 25,685 24,784 781 3.1 2017 26,055 25,198 857 3.3 2016 26,194 25,170 1,024 3.9 State of Kansas: Total Unemployment Year Labor Force Emplo11ed UnemPIO)led Rate 2021 (Dec) 1,500,738 1,450,942 49,796 3.3% 2020 1,497,003 1,408,995 88,008 5.9 2019 1,486,620 1,439,563 47,057 3.2 2018 1,491,587 1,445,819 45,768 3.1 2017 1,478,783 1,425,216 53,567 3.6 2016 1,484,001 1,422,122 61,879 4.2 Source: Kansas Department of Labor DEBT SUMMARY OF THE CITY Current Indebtedness The following is an overview of the City's outstanding indebtedness by classification as of the dated date of the Bonds. Figures do not include bonds for which payment has been provided through the creation of designated escrow accounts. General Obligation Bonds: Date Issued 02-15-13 07-29-15 07-27-16 07-27-16 07-27-17 11-27-18 04-24-19 04-29-20 11-30-20 04-29-21 09-08-21 04-28-22 Total Series 2013-A 2015-A 2016-A 2016-B 2017-A 2018-A 2019-A 2020-A 2020-B 2021-A 2021-B 2022-A Purpose Taxable Improvements Revenue and Internal Imp. Internal Improvements Refunding Improvements Improvements Improvements Improvements Refunding Improvements Refunding Improvements *Preliminary; subject to change. A-9 Amount of Issue $1,360,000 6,825,000 6,570,000 13,750,000 9,310,000 2,090,000 11,090,000 5,210,000 8,450,000 7,645,000 6,220,000 8,195,000* Final Maturify 10-01-28 10-01-35 10-01-36 10-01-31 10-01-37 10-01-33 10-01-39 10-01-35 10-01-36 10-01-41 10-01-34 10-01-42 Amount Outstanding $725,000 4,795,000 5,220,000 10,190,000 7,940,000 1,750,000 10,440,000 4,715,000 7,615,000 7,645,000 6,220,000 8,195,000* $75,450,000 A portion of the City's outstanding general obligation bonds are payable from special assessments levied upon properties benefited by certain internal improvement projects, local option sales tax and transfers from enterprise funds of the City. If such payments are not provided in a timely manner, the principal of and interest on the bonds must then be paid from the City's ability to levy unlimited ad valorem taxes. See FINANCIAL INFORMATION -"Special Assessments" for a further description of special assessment financing. Temporary Notes: Series 2021-1 Date Issued 04-29-21 Final Maturity Date 05-01-22 Original Note Amount 5,230,000 Amount Outstanding $OU) 11'To be redeemed with the proceeds from the sale of the Bonds and other available funds. Utility System Revenue Bonds: Revenue bonds are payable solely from the net revenues derived by the City from the operation of its combined water and sewage system. Revenue bonds do not represent a general obligation indebtedness of the City for which the City's taxing ability has been pledged. Date Pledged Amount Final Amount Issued Revenue Series of Issue Maturitli'. Outstanding 09-11-19 Water and Sewer System 2019 $10,330,000 10-01-31 $8,865,000 Lease Obligations (as of December 31, 2021): Year Original Final Amount Item Issued Amount Year Outstanding HVAC System 2012 $1,100,000 2027 $495,898 Special Obligation Revenue Bonds: The following special obligation revenue bonds are payable solely from sales tax collected within certain special districts in the City. Revenue bonds do not represent a general obligation indebtedness of the City for which the City's taxing ability has been pledged. Date Pledged Amount Final Amount Issued Revenue Series of Issue Maturi~ Outstanding 12-21-18 Sales Tax Revenue 2018-A $18,250,000 12-01-38 $17,975,000 12-21-18 Sales Tax Revenue 2018-B 4,320,000 12-01-38 4,320,000 Total: $22,295,000 A-10 State Loans The following is a list of outstanding loans the City has taken out through the Kansas Department of Health and Environment ("KDHE") revolving loan fund program. KDHE loans are typically repaid by net revenues from municipal water or sewer systems. Regardless of the intended source of repayment, the loans are ultimately secured by the City's ability to levy unlimited ad valorem property taxes. Project Year Final Original Amount Number Purpose Originated Pal£ment Date Amount Outstanding KDHE 2629 Water 2014 08-01-34 $8,562,911 $5,478,622 KDHE 2917 Water 2019 02-01-40 32,000,000 29,425,065 KDHE 2957 Water 2019 02-01-40 4,250,000 3,908,016 KDHE 2998 Water 2019 02-01-40 4,250,000 4,157,844 KDHE 2050 Sewer 2020 03-01-35 2,250,000 1,996,880 KDHE 2049* Sewer 2021 09-01-42 31,500,000 31,500,000 $76,466,427 *Design on this project is in progress. Construction is expected to begin in 2023. Principal amount shown is maximum authorized loan amount which is subject to change. Overlapping Debt According to the Saline County Clerk's office and bond offering documents, the following table shows the overlapping general obligation indebtedness of the City. The percent of an overlapping jurisdiction's debt that is applicable to the City is calculated by dividing the assessed valuation of that portion of the jurisdiction's boundaries which overlap those of the City by the total assessed valuation of such jurisdiction. Jurisdiction Salina Airport Authority Saline County Unified School District No. 305 (llAs of the closing date of the Bonds. Amount Outstanding<1> $ 19,615,000 75,523,554(2) 99,700,000 Estimated Share of the City Amount Percentage $ 19,615,000 100.00% 55,732,387 73.79 92,821.053 93.10 $168,168,440 (2l1ncludes $74,900,000 of bonds issued by Saline County that have a pledge of both property taxes and a dedicated 0.50% retailers' sales tax of the county. However, based on historical collections, the County anticipates that such bonds will be repaid entirely from the sales tax. A-11 Annual Debt Payments The following is a list of annual debt service requirements for the City's currently outstanding general obligation bonded indebtedness. All amounts are rounded to the nearest whole dollar. Existing Bonds Series 2022-A Bonds Year Princi(!al Interest Princi(!al Interest Total 2022 $5,950,000 $2,006,849 2023 5,915,000 1,693,861 2024 5,740,000 1,475,341 2025 5,450,000 1,319,166 2026 4,750,000 1,167,246 2027 4,530,000 1,031,789 2028 4,250,000 905,754 2029 3,990,000 785,646 2030 3,525,000 688,196 2031 3,445,000 598,669 2032 3,370,000 510,449 2033 3,350,000 425,498 2034 3,200,000 339,701 2035 3,035,000 258,613 2036 2,335,000 178,688 2037 1,570,000 117,475 2038 1,060,000 71,650 2039 1,085,000 43,200 2040 350,000 14,100 2041 350,000 7,100 $67,255,000 $13,638,991 *Excludes payments made prior to the closing date of the Bonds. Historical Debt Information The following table shows historical balances of outstanding general obligation bonds for the City during the most recent five-year period. Bonds Debt to Debt to U.S. Debt Outstanding Assessed Estimated Actual Census Per Year December31 Valuation Valuation Po(!ulation Ca(!ita 2020 $65,330,000 12.79% 1.96% 46,550 $1,403.44 2019 58,170,000 11.53 1.78 46,550 $1,261.22 2018 54,885,000 11.25 1.74 46,716 1,174.87 2017 59,985,000 12.46 1.94 46,994 1,276.44 2016 56,875,000 12.03 1.87 47,336 1,201.52 2015 57,535,000 12.43 1.94 47,813 1,203.33 A-12 Future Indebtedness The City annually prepares and adopts a five-year capital improvements plan. This plan identifies and prioritizes potential capital improvement projects within the City and includes the respective funding sources. Over the next two years the City anticipates issuing general obligation bonds to retire its outstanding general obligation notes as well as providing general obligation note and/or bond funding for approximately $8,000,000 of improvements. Borrowing amounts described above do not include future subdivision improvement projects financed with general obligation bonds payable as to both principal and interest in part from special assessments levied upon the benefitted property. The City typically undertakes such projects after receiving and reviewing a valid petition from property owners. See FINANCIAL INFORMATION -"Special Assessments". Debt Payment Record The City has always met principal and interest payments on all outstanding bonds and temporary notes when due and payable. Legal Debt Limits Cities within Kansas are permitted to issue bonds in an aggregate amount not to exceed 30% of the total assessed valuation of the city. Bonds issued for the purpose of improving, acquiring, enlarging, or extending municipal utilities, including storm and sanitary sewer systems; bonds issued to pay the cost of improvements to intersections and streets in front of city or school district property; bonds for bridges as authorized by a vote of the electors of a city; bonds issued to refund outstanding bonds; and bonds payable from revenue sources other than the general taxing authority of the city are not included in total aggregate debt for purposes of computing a city's debt limitation. FINANCIAL INFORMATION CONCERNING THE CITY Accounting, Budgeting and Auditing Procedures The City follows a modified accrual basis of accounting for all tax supported funds of the City, including the General Fund. An annual budget of estimated receipts and disbursements for the coming calendar year is required by statute to be prepared for all funds (unless specifically exempted). The budget is prepared utilizing the modified accrual basis which is further modified by the encumbrance method of accounting. For example, commitments such as purchase orders and contracts, in addition to disbursements and accounts payable, are recorded as expenditures. The budget lists estimated receipts by funds and sources and estimated disbursements by funds and purposes. The proposed budget is presented to the governing body of the City prior to August 1, with a public hearing required to be held prior to August 15, with the final budget to be adopted by a majority vote of the governing body of the City prior to August 25 of each year (or September 20 if the City must conduct a public hearing to levy taxes in excess of its revenue neutral rate described below). Budgets may be amended upon action of the governing body after notice and public hearing, provided that no additional tax revenues may be raised after the original budget is adopted. The City may levy taxes in accordance with the requirements of its adopted budget. Property tax levies are based on the adopted budget of the City and the assessed valuations provided by the County appraiser. In 2021, the Kansas Legislature passed legislation (the "Revenue Neutral Tax Act") that repeals the "tax lid" (formerly K.S.A. 79-2925c) and provides that, beginning January 1, 2021, a taxing subdivision (which includes any political subdivision of the State that levies an ad valorem property tax, including the City) is not authorized to levy a property tax rate in excess of its revenue neutral rate without first providing notice, holding a public hearing, and authorizing such property tax rate by majority vote of its governing body. The revenue neutral rate means the tax rate for the A-13 current tax year that would generate the same property tax revenue as levied the previous tax year using the current tax year's total assessed valuation. The Revenue Neutral Tax Act provides that by June 15 of every year, each county clerk shall calculate the revenue neutral rate for each taxing subdivision in their respective county. If a taxing subdivision desires to levy a tax rate in excess of its revenue neutral rate, it must first publish notice of a public hearing and notify the county clerk of the taxing subdivision's intent to exceed the revenue neutral rate. The county clerk is required to provide notice of the public hearing to each taxpayer with property in the taxing subdivision, along with following information concerning the taxing subdivision: (1) the revenue neutral rate, (2) the proposed property tax revenue needed to fund the proposed budget, (3) the proposed tax rate based on the proposed budget, (4) the tax rate and property tax of each taxing subdivision on the taxpayer's property from the previous year's tax statement, (5) the appraised value and assessed value of the taxpayer's property, (6) estimates of the tax for the current tax year on the taxpayer's property based on the revenue neutral rate of each taxing subdivision and any proposed tax rates that exceed the revenue neutral rates, (7) the difference between the estimates of tax based on the proposed tax rate and the revenue neutral rate. The public hearing regarding exceeding the revenue neutral rate is to he held between August 10 and September 10, and can be held in conjunction with the taxing subdivision's budget hearing. If multiple taxing subdivisions within the county are required to hold a public hearing, the notices to the taxpayer can be combined into a single notice. After the public hearing, the taxing subdivision can approve exceeding the revenue neutral rate by a majority vote of its governing body, and the amount of tax to be levied must be certified to the county clerk by September 20. The taxing subdivision's adopted budget shall not result in a tax rate in excess of its proposed rate stated in the notice provided to the taxpayers. If a taxing subdivision fails to comply with the requirements of the Revenue Neutral Tax Act, it shall refund to the taxpayers any property taxes over collected based on the amount of the levy that was in excess of the revenue neutral rate. The City cannot predict the impact of the Revenue Neutral Tax Act on the ratings on the Securities, or the general rating of the City. A change in the rating on the Securities or a change in the general rating of the City may adversely impact the market price of the Securities in the secondary market. Kansas law prohibits governmental units from creating indebtedness unless there are funds on hand in the proper accounts and unencumbered by previous action with which to pay such indebtedness. An exception to this cash-basis operation is made where provision has been made for payment of obligations by bonds or other specific debt obligations authorized by law. The financial records of the City are audited annually by a firm of independent certified public accountants in accordance with generally accepted auditing standards. In recent years, the annual audit has been performed by Gordon Certified Public Accountants, Lawrence, Kansas. Copies of the audit reports for the past five (5) years are on file in the Clerk's office and are available for review. The audit for the Fiscal Year ended December 31, 2020 is attached hereto as APPENDIX C. There can be no guarantee that the information included in such unaudited financial statements will not materially change when subject to audit. The City has historically prepared a Comprehensive Annual Financial Report, which includes audited financial statements and other pertinent credit information. Appropriate periodic credit information necessary for maintaining the ratings on the Bonds will be provided by the City to the rating agencies rating the Bonds. The Governmental Accounting Standards Board (GASB) issued Statement No. 34, Basic Financial Statements-and Management's Discussion and Analysis-for State and Local Governments in June 1999 ("Statement 34"), which established new requirements for the annual financial reports of state and local governments. Among the major changes embodied in Statement 34, governments will now be required to: (a) report on the overall state of the government's financial health, not just its overall "funds" in a newly required Management's Discussion and Analysis (MD&A), (b) provide the most complete information available about the cost of delivering services to their citizens in the annual report which will now also include financial statements prepared using full accrual accounting for all of the government's activities, (c) include information about the government's public infrastructure assets - such as bridges, roads and storm sewers, and (d) prepare an introductory narrative section analyzing the government's financial performance. The City has implemented Statement No. 34 in its financial statements. A-14 The financial information contained in the Appendices to this Official Statement are an integral part of this document and are intended to be read in conjunction herewith. Financial Statement Summary The following is a summary of the combined revenues, expenditures, and fund balances for the City's General Fund for the most recent years as shown in the City's Comprehensive Annual Financial Reports. This summary has not been prepared or reviewed by the City's auditor. Audited Audited Audited Audited Revenues: 2017 2018 2019 2020 Property Taxes $10,115,784 $9,743,497 $10,801,226 $11,497,684 Sales Tax 12,906,032 32,900 13,418,742 13,697,179 Other Taxes 5,215,264 5,444,880 5,086,492 4,925,381 Intergovernmental 1,133,310 1,144,717 1,351,967 2,453,021 Charges for Services 6,153,450 6,366,094 5,816,485 4,942,217 Investment Revenue 3,336 45,477 613,249 256,515 Miscellaneous 1,709,491 452.916 609,676 981.845 Total Revenues $37,236,667 $36,490,207 $37,778,837 $38,753,842 Expenditures: General Government $5,423,241 $5,648,579 $4,581,505 $5,505,967 Public Safety 21,628,730 22,952,925 23,692,445 22,435,061 Public Works 5,328,315 5,350,056 5,473,414 5,101,204 Public Health and Sanitation 749,656 793,780 816,636 682,439 Culture and Recreation 4,424,221 4,494,713 4,379,441 3,037,594 Planning and Development 752,825 766,471 836,690 673,564 Capital Outlay 896.026 860.115 985.861 608,460 Total Expenditures $39,203,014 $40,866,639 $40,765,992 $38,044,289 Revenues Over (Under) $(1,966,347) $(4,376,432) $(2,987,155) $709,553 Other Sources (Uses) 3,816,500 4,236,500 5,551,752 4,929,300 Net Change in Fund Balance 1,850,153 $(139,932) 2,564,597 $5,638,853 Fund Balance January 1 $5,032,356 $6,882,509 $6,742,577 $9,503,410 Restatement of Prior Year Balance 0 0 0 0 Fund Balance December 31 $6,882,509 $6,742,577 $9,307,174 $15,142,263 Assessed Valuation According to the Saline County Clerk's Office, the following table gives the November 1 assessed valuation of the City, unless otherwise noted, in the years indicated. State Total Real Personal Assessed Motor Assessed Year Estate Pro~ert~(2} Utilities Vehicle Valuation 2021(1) $427,732,694 $11,229,345 $23,975,182 $56,545,812 $519,483,033 2020 423,573,121 9,353,057 23,436,340 54,589,132 510,951,650 2019 421,108,311 11,245,813 22,113,195 54,687,311 509,154,630 2018 403,835,383 10,130,718 20,485,144 53,336,677 487,787,922 2017 399,918,216 10,900,308 19,671,685 50,970,796 481,461,005 2016 389,872,825 11,653,719 19,323,055 51,833,505 472,683,104 2015 381,087,426 12,607,815 18,984,453 50,350,566 463,030,260 (1) Preliminary figures provided by the Saline County Clerk's office and used for budgeting purposes. (2) Personal property valuations began to decline in 2006 as a result of legislative action that started the process of removing significant portions of industrial machinery and equipment from the property tax rolls. A-15 Estimated Actual Valuation Based on assessment percentages provided by Kansas Statutes, real estate equalization ratios provided by the Kansas Department of Revenue (see FINANCIAL INFORMATION CONCERNING THE CITY -"Property Assessment Rates"), and estimated actual valuation figures provided by the Saline County Appraiser's Office, the following table provides November 1 estimated actual valuations for the City in the years indicated. Vear 2021 2020 2019 2018 2017 2016 2015 Special Assessments Residential Real Estate Equalization Ratio N/A 10.79% 11.44 11.17 11.04 11.36 11.28 Estimated Actual Value $3,392,138,959 3,325,193,918 3,292,557,745 3,150,409,123 3,097,885,103 3,046,949,034 2,968,008,193 The City has pursued a policy of utilizing special benefit districts to assign the cost of certain internal improvement projects to the property that directly benefits from the construction. Kansas statutes allow for the creation of special benefit districts to pay for the cost of a variety of improvements including street construction, storm water drains, sanitary sewer system improvements, street lighting, water system improvements, recreational facilities, flood control projects, bridges, and parking facilities. The City has typically utilized special benefit districts to pay for the costs associated with constructing streets, sidewalks, curbs, gutters, and lighting in new residential developments within the City. When a developer requests the use of Special Assessments to finance public improvements, the City requires that they pay 20% of the estimated cost of the project in cash, or file a letter of credit equivalent to 35% of the estimated cost of the project. The letter of credit is released when Certificates of Occupancy have been issued for 35% of the lots in the development. Special benefit districts have also been created to pay for the cost of improvements to streets and sidewalks in the City's downtown area. The creation of special benefit districts, the determination of property benefited, and the method of allocating the cost of the improvement is at the discretion of the City. Property owners have the ability to suggest improvements through a petition process and to comment on the final amount of their assessment. The City may or may not be included as part of the special benefit district. All property owners have the option to pay their portion of the improvement cost with a one-time payment during a 30-day assessment prepayment period or pay in annual installments with interest over a certain number of years. Upon completion of the special benefit district improvement projects and a 30-day prepayment period, the City issues general obligation bonds to provide for permanent project financing. The payment of the principal of and interest on such bonds is paid from the special assessments levied annually on the benefited property. Special assessments are paid at the same time and in the same manner as ad valorem property taxes. If at any time the special assessments received from the property owners are insufficient to provide for the payment of the principal of and interest on the bonds, the City is obligated to provide for the balance of such payments through its ability to levy unlimited ad valorem property taxes. A-16 Tax Collections Tax statements are mailed November 1 each year and may be paid in full or one-half on or before December 20 with the remaining one-half due on or before May 10 of the following year. Taxes that are unpaid on the due dates are penalized at a statutorily prescribed rate until paid or until the property is sold for taxes. Real estate bearing unpaid taxes is advertised for sale in July of each year and is sold by the County for taxes and all legal charges on the first Tuesday in September. Properties that are sold and not redeemed within two years after the tax sale are subject to foreclosure sale, except homestead properties which are subject to foreclosure sale after three years. Personal property taxes are assessed, due and may be paid in the same manner as real estate taxes. Motor vehicle property taxes are based on valuations provided by the Kansas Department of Revenue and the county average tax rate for the county in which the vehicle is registered. Motor vehicle taxes are payable to the county treasurer at the time of the vehicle's annual registration. Vehicle registration dates are assigned by the State in a manner such as to equal registration over a twelve-month period. Motor vehicle taxes are distributed by the county to the state, city and other taxing jurisdictions based on their proportionate tax levies. Delinquent personal and motor vehicle taxes are penalized at the same rate as delinquent real property taxes. The following is a summary of tax collections for the years shown. Levy Tax Taxes Year Rate Levied 2021* 30.452 $15,407,789 2020 30.650 15,226,084 2019 29.720 14,949,484 2018 28.394 13,780,643 2017 26.129 12,728,983 2016 27.603 11,564,876 2015 27.311 11,209,245 *Represents collections through January 2022 Tax Levies City of Salina Salina Library State Education & Other Unified School District No. 305 Airport Authority Central Kansas Extension District Saline County Total Nov 2017 ~ 26.129 5.989 1.500 56.501 4.225 1.475 37.321 133.140 Current Tax Collections Amount .2i $8,856,516 57.5% 15,028,646 98.7 14,538,092 97.2 13,427,810 97.4 12,381,334 97.3 11,320,197 97.9 10,984,630 98.0 Nov 2018 ~ 28.394 6.014 1.500 57.522 4.998 1.476 38.437 Nov 2019 ~ 29.720 5.913 1.500 55.508 4.447 1.198 41.097 Nov 2020 ~ 30.650 5.880 1.500 55.454 5.037 1.206 40.606 138.341 139.383 140.333 A-17 Current and Delinquent Tax Collections Amount I $8,856,516 15,045,546 14,732,831 13,590,888 12,602,044 11,524,101 11,169,600 Nov 2021 ~ 23.693 6.028 1.500 54.903 4.838 1.196 41.282 138.699 .2i 57.5% 98.8 98.6 98.6 99.0 99.6 99.6 Largest Taxpayers According to the Saline County Clerk's Office, the following table lists the largest taxpayers in the City, their November 2021 assessed valuations, and the percentage each taxpayer comprised of the total assessed valuation of the City. Company Evergy, Inc. SFC Global Supply Chain Inc Kansas Gas Service Walmart/Sam's Real Estate Business RAF Salina LLC Lighthouse Properties Ill Inc. S&B Motels Individual Salina Regional Health Properties Inc. Menard Inc. Total Building Permits Issued Type of Business Utility Manufacturing Utility Retail Shopping Center Retail Shopping Center Hotel Motel Apartments Hospital Retail Shopping Center %of Assessed Total Valuation Valuation $15,630,615 3.01% 6,540,230 1.26 4,844,333 0.93 4,665,958 0.90 4,000,001 0.77 3,880,224 0.75 2,712,177 0.52 2,339,471 0.45 2,274,633 0.44 2,255,335 0.43 $49,142,977 9.46% Building permits issued by the City currently maintain steady levels. This table reflects both private developments as well as the expansion to the educational facilities in the community. The five-year history of the total value of permits issued is: Year Value 2021 $46,129,644 2020 27,706,623 2019 20,544,765 2018 71,862,718 2017 59,975,197 2016 97,910,328 Sales Tax Sales tax collections are the responsibility of the Kansas Department of Revenue. The Department of Revenue distributes the local option countywide and citywide sales taxes on a monthly basis. Except as set forth below, Countywide sales taxes are distributed between the levying county and the cities located within the county based on population and relative tax levies. Citywide local option sales taxes are distributed solely to the levying city. Statewide sales taxes are retained entirely by the state. In 1982 the voters of Saline County approved a 1% countywide local option sales tax. In 1992 voters of the City approved a local option .50% citywide sales tax for purposes of helping fund general operations expenditures of the City. Both of these taxes were approved in perpetuity. In May of 2016, voters approved a . 75% citywide retailers sales tax that will be in existence for 20 years and will be used for capital improvements and economic development (the "2016 Sales Tax"). The 2016 sales tax replaced an existing sales tax of .40%. In November of 2020, the voters of Saline County approved an additional 0.5% countywide local option sales tax, the revenues derived from which are dedicated to paying the costs of a new Criminal Justice Complex, such A-18 sales tax shall terminate when all costs associated with the Criminal Justice Complex project have been paid, including the retirement of any bonds issued therefor (the "2020 Sales Tax"). No portion of the revenues derived from the 2020 Sales Tax will be distributed to the City. The total sales tax for goods and services in the City is 9.25%, which consists of 6.5% imposed by the State, 1.5% countywide local option sales tax, and 1.25% citywide local option sales tax. The following table lists the local- option sales tax receipts of the City of Salina in the years indicated. Ill As of January 2022 Vear 202211) 2021 2020 2019 2018 2017 2016 2015 Citywide Local Option Sales & Use Tax Receipts $1,395,788 16,971,338 15,160,656 14,922,405 14,632,584 14,404,702 10,458,630 10,372,573 City's Portion of 1% Countywide Local Option Sales & Use Tax Receipts $728,807 8,798,402 7,756,909 7,608,604 7,415,804 7,368,869 7,312,618 7,376,708 Ill Collections prior to October 1, 2016 represent taxes attributable to a .40% sales tax that was replaced with the . 75% 2016 sales tax. Prior to October 1, 2016 the citywide aggregate sales and use tax rate was .90%. The aggregate rate was increased to 1.25% as a result of the approval of the 2016 sales tax discussed above. Source: Kansas Department of Revenue Appraisal and Assessment Procedures The determination of appraised and assessed valuation and the collection of property taxes for all political subdivisions in the State of Kansas are the responsibility of the various counties. The Saline County appraiser annually determines the appraised valuation of property located in the City. The appraiser's determination is based on a number of criteria established by Kansas's statute. All property, with the exception of agricultural land, Is appraised based on estimated fair market value. Agricultural property is appraised based on productivity value. Kansas statutes require that each parcel of real property be reviewed and inspected by the county appraiser once every four years for taxation purposes. Once appraised valuations have been determined, they are multiplied by the applicable statutory assessment rates to arrive at the assessed valuations. The total assessed valuation is then used to establish property tax rates. Property Valuation Challenges. Taxpayers may challenge the appraised value of their property by paying property taxes under protest. Such challenges are subject to administrative and judicial review. Taxes paid under protest are distributed to taxing jurisdictions in the same manner as all other property tax collections. If a taxpayer's challenge to the appraiser's valuation is successful, the county is liable to refund the amount of property taxes attributable to the protested value that was previously paid under protest. The county will then withhold from future property tax distributions to other taxing jurisdictions an amount equal to the jurisdiction's pro rata share of such refund. Any such withholdings from future property tax distributions may have a material adverse effect on the City's financial situation. A-19 Property Assessment Rates In order to determine the assessed valuation of a parcel of property for taxation purposes, the county appraiser multiplies the appraised value of the parcel by the applicable assessment rate. Current property assessment rates were established in 1986, effective in 1989, and slightly modified in 1992. The most significant 1992 modifications involved lowering the assessment rate on commercial and industrial real property from 30% to 25% and on residential property from 12% to 11.5%. The following table shows the current assessment rates for the different classes of taxable tangible property within the State of Kansas. Real Property: Residential Commercial and Industrial- Real Property Agricultural Land (1) Agricultural Improvements Vacant Lots Not-for-Profit (2) All Other Personal Property: (3) Mobile Homes Mineral Leaseholds (large) Mineral Leaseholds (small) Commercial & Industrial Machinery & Equipment All Other Utilities: Railroads All Other Public Utilities Motor Vehicles: Property Exempt: 11.5% 25.0 30.0 25.0 12.0 12.0 30.0 11.5% 30.0 25.0 25.0 30.0 federally mandated rate 33.0% 20.0% Property used for the following purposes, or portions thereof, are exempt from taxation provided certain statutory requirements are met: religious, educational, literary, scientific, benevolent, alumni associations, veterans' organizations, or charitable purposes, including parsonages and community service organizations providing humanitarian services. (1) Agricultural land is valued based on the productivity value of the property and not estimated market valuation. (2) A bill passed by the Kansas Legislature in 1994 clarified this class of property to include all property owned and operated by not-for-profit organizations not subject to federal income taxation pursuant to paragraphs (2), (3), (4), (7), (8), or (10) of Subsection C of Section 501 of the federal internal revenue code. This bill specifically established that private, not-for-profit country clubs would be assessed at 12% for all land that does not accommodate buildings or improvements. (3) The 2006 Kansas Legislature exempted from all property or ad valorem property taxes levied under the laws of the State, all commercial, industrial, telecommunications, and railroad machinery and equipment acquired by qualified purchase or lease after June 30, 2006 or transported into the State after June 30, 2006 for the purpose of expanding an existing business or creation of a new business. A-20 Equalization Ratios Annually, the Property Valuation Division of the Kansas Department of Revenue conducts a study to compare the assessed valuation of real property to estimated market value based on property sale prices. The study derives an equalization ratio which, when divided into assessed valuation, provides a means to approximate actual market value. According to the 2020 Preliminary Kansas Appraisal/Sales Ratio Study, the equalization ratio for residential real property in Saline County was 10.79%, and commercial and industrial property was 26.68%. A-21 [THIS PAGE INTENTIONALLY LEFr BLANK] APPENDIXB Form of Continuing Dlsclosure Undertaking [THIS PAGE lNTENTIONALL Y LEFT BLANK] CONTINUING DISCLOSURE UNDERTAKING CITY OF SALINA, KANSAS Gilmore & Bell, P.C. 03/22/2022 GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2022-A DATED APRIL 29, 2021 This CONTINUING DISCLOSURE UNDERTAKING dated as of April 28, 2022 (the "Continuing Disclosure Undertaking"), is executed and delivered by the City of Salina, Kansas (the "Issuer"). RECITALS 1. This Continuing Disclosure Undertaking is executed and delivered by the Issuer in connection with the issuance of the above-described bonds (the "Obligations") which are being issued simultaneously herewith as of April 28, 2022, pursuant to the Bond Resolution (the "Resolution") adopted by the governing body of the Issuer. 2. The Issuer is entering into this Continuing Disclosure Undertaking for the benefit of the Beneficial Owners of the Obligations and in order to assist the Participating Underwriter in complying with Rule l 5c2-12 of the Securities and Exchange Commission under the Securities Exchange Act of 1934 (the "Rule"). The Issuer is the only "obligated person" with responsibility for continuing disclosure hereunder. The Issuer covenants and agrees as follows: Section 1. Definitions. In addition to the definitions set forth in the Resolution, which apply to any capitalized term used in this Continuing Disclosure Undertaking unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Annual Report" means any Annual Report provided by the Issuer pursuant to, and as described in, Section 2 of this Continuing Disclosure Undertaking, which may include the Issuer's Comprehensive Financial Report, so long as the Comprehensive Financial Report contains the financial information and operating data described in Section 2(a)(l) and (2). "Beneficial Owner" means any registered owner of any Obligations and any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Obligations (including persons holding Obligations through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Obligations for federal income tax purposes. "Business Day" means a day other than ( a) a Saturday, Sunday or legal holiday, (b) a day on which banks located in any city in which the principal office or designated payment office of the paying agent or the Dissemination Agent is located are required or authorized by law to remain closed, or ( c) a day on which the Securities Depository or the New York Stock Exchange is closed. B-1 "Comprehensive Financial Report" means the Issuer's Comprehensive Annual Financial Report, if any. "Dissemination Agent" means any entity designated in writing by the Issuer to serve as dissemination agent pursuant to this Continuing Disclosure Undertaking and which has filed with the Issuer a written acceptance of such designation. "EMMA" means the Electronic Municipal Market Access system for municipal securities disclosures established and maintained by the MSRB, which can be accessed at www.emma.msrb.org. "Financial Obligation" means a (a) debt obligation; (b) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (c) guarantee of (a) or (b) in this definition; provided however, the term Financial Obligation shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule. "Fiscal Year" means the 12-month period beginning on January 1 and ending on December 31 or any other 12-month period selected by the Issuer as the Fiscal Year of the Issuer for financial reporting purposes. "Material Events" means any of the events listed in Section 3 of this Continuing Disclosure Undertaking. "MSRB" means the Municipal Securities Rulemaking Board, or any successor repository designated as such by the Securities and Exchange Commission in accordance with the Rule. "Participating Underwriter" means any of the original underwriter(s) of the Obligations required to comply with the Rule in connection with the offering of the Obligations. Section 2. Provision of Annual Reports. (a) The Issuer shall, not later than 180 days after the end of the Issuer's Fiscal Year, commencing with the Fiscal Year ending December 31, 2021, file with the MSRB, through EMMA, the following financial information and operating data (the "Annual Report"): (1) The audited financial statements of the Issuer for the prior Fiscal Year, prepared on a modified accrual basis of accounting other than GAAP. A more detailed explanation of the accounting basis is contained in the Official Statement related to the Obligations. If audited financial statements are not available by the time the Annual Report is required to be provided pursuant to this Section, the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the final Official Statement relating to the Obligations, and the audited financial statements shall be provided in the same manner as the Annual Report promptly after they become available. (2) Updates as of the end of the Fiscal Year of certain financial information and operating data contained in the final Official Statement related to the Obligations, as described in Exhibit A, in substantially the same format contained in the final B-2 Official Statement with such adjustments to formatting or presentation determined to be reasonable by the Issuer. Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues with respect to which the Issuer is an "obligated person" (as defined by the Rule), which have been provided to the MSRB and are available through EMMA or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from the MSRB on EMMA. The Issuer shall clearly identify each such other document so included by reference. In each case, the Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross-reference other information as provided in this Section; provided that the audited financial statements of the Issuer may be submitted separately from the balance of the Annual Report and later than the date required above for the filing of the Annual Report if they are not available by that date. If the Issuer's Fiscal Year changes, it shall give notice of such change in the same manner as for a Material Event under Section 3, and the Annual Report deadline provided above shall automatically become 180 days after the end of the Issuer's new Fiscal Year. (b) [Reserved] ( c) The Annual Report shall be filed with the MSRB in such manner and format as is prescribed by the MSRB. Section 3. Reporting of Material Events. Not later than 10 Business Days after the occurrence of any of the following events, the Issuer shall give, or cause to be given to the MSRB, through EMMA, notice of the occurrence of any of the following events with respect to the Obligations ("Material Events"): (I) principal and interest payment delinquencies; (2) non-payment related defaults, if material; (3) unscheduled draws on debt service reserves reflecting financial difficulties; (4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Obligations, or other material events affecting the tax status of the Obligations; (7) modifications to rights of bondholders, if material; (8) bond calls, if material, and tender offers; (9) defeasances; (10) release, substitution or sale of property securing repayment of the Obligations, if material; (11) rating changes; (12) bankruptcy, insolvency, receivership or similar event of the obligated person; ( 13) the consummation of a merger, consolidation, or acquisition involving the obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; B-3 (14) appointment of a successor or additional trustee or the change of name of the trustee, if material; (15) incurrence of a Financial Obligation of the obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the obligated person, any of which affect security holders, if material; and (16) default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation of the obligated person, any of which reflect :financial difficulties. Except as provided in Section 2(b) hereof, if the Issuer has not submitted the Annual Report to the MSRB by the date required in Section 2(a), the Issuer shalJ send a notice to the MSRB of the failure of the Issuer to file on a timely basis the Annual Report, which notice shall be given by the Issuer in accordance with this Section 3. Section 4. Termination of Reporting Obligation. The Issuer's obligations under this Continuing Disclosure Undertaking shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Obligations. If the Issuer's obligations under this Continuing Disclosure Undertaking are assumed in full by some other entity, such person shall be responsible for compliance with this Continuing Disclosure Undertaking in the same manner as if it were the Issuer, and the Issuer shall have no further responsibility hereunder. If such termination or substitution occurs prior to the final maturity of the Obligations, the Issuer shall give notice of such termination or substitution in the same manner as for a Material Event under Section 3. Section 5. Dissemination Agents. The Issuer may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Continuing Disclosure Undertaking, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. Any Dissemination Agent may resign as dissemination agent hereunder at any time upon 30 days prior written notice to the Issuer. The Dissemination Agent shall not be responsible in any manner for the content of any notice or report (including without limitation the Annual Report) prepared by the Issuer pursuant to this Continuing Disclosure Undertaking. Section 6. Amendment; Waiver. Notwithstanding any other provision of this Continuing Disclosure Undertaking, the Issuer may amend this Continuing Disclosure Undertaking and any provision of this Continuing Disclosure Undertaking may be waived, provided that Bond Counsel or other counsel experienced in federal securities law matters provides the Issuer with its written opinion that the undertaking of the Issuer contained herein, as so amended or after giving effect to such waiver, is in compliance with the Rule and all current amendments thereto and interpretations thereof that are applicable to this Continuing Disclosure Undertaking. In the event of any amendment or waiver of a provision of this Continuing Disclosure Undertaking, the Issuer shall describe such amendment or waiver in the next Annual Report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type ( or, in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the Issuer. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (1) notice of such change shall be given in the same manner as for a Material Event under Section 3, and (2) the Annual Report for the year in which the change is made should present a comparison (in narrative form and also, if feasible, in quantitative form) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. B-4 Section 7. Additional Information. Nothing in this Continuing Disclosure Undertaking shall be deemed to prevent the Issuer from disseminating any other information, using the means of dissemination set forth in this Continuing Disclosure Undertaking or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Material Event, in addition to that required by this Continuing Disclosure Undertaking. If the Issuer chooses to include any information in any Annual Report or notice of occurrence of a Material Event, in addition to that specifically required by this Continuing Disclosure Undertaking, the Issuer shall have no obligation under this Continuing Disclosure Undertaking to update such information or include it in any future Annual Report or notice of occurrence of a Material Event. Section 8. Default. If the Issuer fails to comply with any provision of this Continuing Disclosure Undertaking, any Participating Underwriter or any Beneficial Owner of the Obligations may take such actions as may be necessary and appropriate, including seeking mandamus or specific performance by court order, to cause the Issuer to comply with its obligations under this Continuing Disclosure Undertaking. A default under this Continuing Disclosure Undertaking shall not be deemed an event of default under the Resolution or the Obligations, and the sole remedy under this Continuing Disclosure Undertaking in the event of any failure of the Issuer to comply with this Continuing Disclosure Undertaking shall be an action to compel performance. Section 9. Beneficiaries. This Continuing Disclosure Undertaking shall inure solely to the benefit of the Issuer, the Participating Underwriter, and the Beneficial Owners from time to time of the Obligations, and shall create no rights in any other person or entity. Section 10. Severability. If any provision in this Continuing Disclosure Undertaking, the Resolution or the Obligations shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. Section 11. Electronic Transactions. The arrangement described herein may be conducted and related documents may be sent, received, or stored by electronic means. Copies, telecopies, facsimiles, electronic files and other reproductions of original documents shall be deemed to be authentic and valid counterparts of such original documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. Section 12. Governing Law. This Continuing Disclosure Undertaking shall be governed by and construed in accordance with the laws of the State of Kansas. [Remainder of Page Intentionally Left Blank.} B-5 IN WITNESS WHEREOF, the Issuer has caused this Continuing Disclosure Undertaking to be executed as of the day and year first above written. CITY OF SALINA, KANSAS (SEAL) Mayor City Clerk B-6 EXHIBIT A TO CONTINUING DISCLOSURE UNDERTAKING FINANCIAL INFORMATION AND OPERATING DATA TO BE INCLUDED IN ANNUAL REPORT The financial information and operating data contained in the following sections and tables contained in Appendix A of the final Official Statement (with such modifications to the formatting and general presentation thereof as deemed appropriate by the Issuer) relating to the Obligations: • Financial Overview of the City • FINANCIAL INFORMATION CONCERNING THE CITY -Assessed Valuation • FINANCIAL INFORMATION CONCERNING THE CITY -Estimated Actual Valuation • FINANCIAL INFORMATION CONCERNING THE CITY -Tax Collections • FINANCIAL INFORMATION CONCERNING THE CITY -Tax Levies • FINANCIAL INFORMATION CONCERNING THE CITY -Largest Taxpayers B-7 l THIS PAGE INTENTIONALLY LEFT BLANK] APPENDIXC December 31, 2020 Comprehensive Annual Financial Report The following is the Comprehensive Annual Financial Report for the City of Salina, Kansas for the fiscal year ended December 31, 2020, including financial statements as audited by the firm of Gordon Certified Public Accountants, Lawrence, Kansas. [fHJS PAGE INTENTIONALLY LEFf BLANK} 300 West Ash Street P.O. Box 736 Salina, KS 67402-0736 City of Salina COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended December 31, 2020 Prepared by Department of Finance and Administration of the City of Salina, Kansas COMPREHENSIVE ANNUAL FINANCIAL REPORT OF CITY OF SALINA, KANSAS 300 West Ash Street P.O. Box736 Salina, Kansas 67 402-0736 For the Fiscal Year Ended December 31, 2020 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, 2020 Letter of Transmittal Organizational Chart List of Principal Officials Independent Auditor's Report Management's Discussion and Analysis Basic Financial Statements: Government-wide Financial Statements Statement of Net Position Statement of Activities Fund Financial Statements Balance Sheet -Governmental Funds TABLE OF CONTENTS INTRODUCTORY SECTION FINANCIAL SECTION Reconciliation of the Total Governmental Fund Balance to Net Position of Governmental Activities Statement of Revenues, Expenditures, and Changes in Fund Balance -Governmental Funds Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance with the Government-Wide Statement of Activities Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual (Non-GAAP Basis) General Fund Tourism and Convention Fund Special Gas Fund Sales Tax Capital Fund Statement of Net Position -Proprietary Funds Statement of Revenues, Expenses, and Changes in Net Position -Proprietary Funds Statement of Cash Flows -Proprietary Funds Statement of Fiduciary Net Position -Fiduciary Funds Statement of Changes in Fiduciary Net Position -Fiduciary Funds i -iv V vi 1-3 4 -15 16 17 18 19 20 21 22 23 24 25 26 27 28-29 30 31 CITY OF SALINA, KANSAS Comprehensive Annual Financial Report For the year ended December 31, 2020 TABLE OF CONTENTS-CONTINUED FINANCIAL SECTION -CONTINUED Notes to the Basic Financial Statements Required Supplementary Information Other Postemployment Benefits Schedule of Changes in the City's Total OPEB Liability and Related Ratios Other Postemployment Benefits -KPERS Schedule of Changes in the City's Total OPEB Liability and Related Ratios KPERS Pension Plan Schedule of City's Proportionate Share of the Net Pension Liability Schedule of City Contributions Combining Statements and Individual Fund Schedules Combining Statements -Nonmajor Funds Fund Descriptions Combining Balance Sheet -Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances -Nonmajor Governmental Funds Combining Balance Sheet -Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances -Nonmajor Special Revenue Funds Combining Balance Sheet -Nonmajor Permanent Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances -Nonmajor Permanent Funds Individual Fund Schedules of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual (Non-GAAP Basis): Bicentennial Center Fund Business Improvement District Fund Neighborhood Park Fund Special Parks and Recreation Fund Special Alcohol Fund Sales Tax Economic Development Fund Arts & Humanities Fund Debt Service Fund Solid Waste Disposal Fund Water and Sewer Fund Sanitation Fund Golf Course Fund Workers' Compensation Reserve Fund Health Insurance Fund Central Garage Fund 32-70 71 72 73 73 74-75 76 77 78-79 80-81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 Internal Service Fund Descriptions CITY OF SALINA, KANSAS Comprehensive Annual Financial Report For the year ended December 31, 2020 TABLE OF CONTENTS -CONTINUED FINANCIAL SECTION -CONTINUED Combining Statement of Net Position -Internal Service Funds Combining Statement of Revenues, Expenses, and Changes in Net Position -Internal Service Funds Combining Statement of Cash Flows -Internal Service Funds STATISTICAL SECTION Net Position by Component-Last Ten Fiscal Years Changes in Net Position -Last Ten Fiscal Years Fund Balances, Governmental Fund -Last Ten Fiscal Years Changes in Fund Balances, Governmental Funds -Last Ten Fiscal Years Tax Revenues by Source, Governmental Funds -Last Ten Fiscal Years Assessed and Estimated Actual Value of Taxable Property-Last Ten Fiscal Years Direct and Overlapping Property Tax Rates -Last Ten Fiscal Years Principal Property Taxpayers Property Tax Levies and Distributions Direct Sales Rate by Taxing Entity Water Sales by Class of Customer Ratio of Outstanding Debt by Type Ratio of Net General Bonded Debt Outstanding Direct and Overlapping Governmental Activities Debt Legal Debt Margin Pledged Revenue Coverage Demographic and Economic Statistics Principal Employers 99 100 101 102-103 Schedule 1 104 2 105 3 106 4 107 5 108 6 109 7 110 8 111 9 112 10 113 11 114 12 115 13 116 14 117 15 118 16 119 17 120 18 121 CITY OF SALINA, KANSAS Comprehensive Annual Financial Report For the year ended December 31, 2020 TABLE OF CONTENTS -CONTINUED GOVERNMENTAL AUDIT SECTION Schedule of Expenditures of Federal Awards Notes to Schedule of Expenditures of Federal Awards Schedule of Findings and Questioned Costs Independent Auditor's Report on Internal Control over Financial Reporting And on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Independent Auditor's Report on Compliance for Each Major Federal Program and Internal Control Over Compliance Required by the Uniform Guidance 122 123 124 -125 126-127 128 -129 INTRODUCTORY SECTION DEPARTMENT OF FINANCE AND ADMINISTRATION 300 West Ash, P.O. Box 736 Salina, Kansas 67 402-0736 July 23, 2021 Cityof Salina To the Citizens of the City of Salina, Kansas: TELEPHONE (785) 309-5735 FAX (785) 309-5738 TDD (785) 309-5747 Website: www.salina-ks.gov The Comprehensive Annual Financial Report of the City of Salina, Kansas (the "City") for the year ended December 31, 2020, is hereby submitted. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of all various funds and account groups of the City. 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 explanation of the City's accounting system and budgetary controls, and a brief discussion of the City's economic condition and outlook. The City's organizational chart is also included to assist the reader in understanding the organizational structure of the City. The financial section includes the Independent auditor's report, Management's discussion & analysis, Government wide financial statements, Fund financial statements, 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 Management's Discussion and Analysis (MD&A) which immediately follows the independent auditor's report. MD&A provides a narrative explanation and overview of significant features and trends reflected by data in the financial statements. Accounting Systems and Internal Controls A critical part of the control system is the City's comprehensive Budgetary and Financial Policies, which establish guidelines for budgetary and financial practices. The budgetary procedures are reviewed by the City Commission 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, 2020 in the general fund and the special revenue funds. Various internal compliance procedures are implemented to ensure proper 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 records and transactions of all administrative departments of the City by independent certified public accountants selected by the City Commission. This requirement has been complied with and the auditor's opinion has been included in this report. Profile of the Community 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 serve as Mayor. The City Manager is appointed by the Commission, and acts as its primary 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 City anticipates results of the 2020 decennial census during 3rd quarter 2021. The reporting entity includes the City of Salina as well as two discretely presented component units, both proprietary fund types. The Salina Airport Authority 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 which is the 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 core of the city of Salina. In addition, the City of Salina participates in a joint venture with Saline County, the City-County Building Authority for the ownership, operation and maintenance of the City-County Building. 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 programming; 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 Company, EIDorado National, and Schwan's Global Supply Chain. Manufacturing, retail trade, and service industries rank as the three primary employers in the City. No single industry is dominant. The City of Salina retains its position near the top of a list of first class cities with respect to "trade pull factor." According to the Kansas Department of Revenue's Annual City Trade Pull Factor report, Salina had a pull of factor of 1.48 in 2020. 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 retail trade beyond the expected activity attributable to just the residents of that community. It is apparent from this that Salina continues to serve as a regional economic hub in 2020. Two Salina area company's announced major expansions in the second half of 2020. Schwan's Company announced expansion of its pizza production facility, adding approximately 225 jobs to the Salina area. Kubota announced a new plant for the production of compact track loaders, adding approximately 120 jobs to the Salina area. Major Initiatives In April, 2016, voters elected to replace the .40 cent capital 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. ii In 2018, the City of Salina issued $22,570,000 in STAR bonds which funded several projects in the City's downtown corridor. In 2020 Homewood Suites opened for business and the majority of the City's Downtown Streetscape project was completed. Other major projects that were on going included gutter and paving on North 9th Street, South Well Field improvements, continued improvements to the water distribution system and preliminary design on the Smoky Hill River Renewal and construction of the Police Training Center project. The City continues to address fiduciary pressures generated by a recessionary economy and 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 2020. The City offered no merit increases in 2020. Capital Improvement Planning The City's Capital Improvement Plan (CIP) consists of two components. One component consists of "routine" capital-including vehicle and equipment replacement, technology replacement, building repair and improvement, routine pavement maintenance activity, utility system enhancements and similar items. The amount of funding 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. Increases in 2020 and 2021 are a result of the anticipated beginning of the construction of the Smoky Hill River Renewal Project, Ninth Street Bridge Construction and Wastewater Treatment Plant respectively. Due to uncertain Sales Tax recovery post Covid-19, the River Renewal project has been delayed. Few major projects have been planned for 2022 and 2023 until financial resources for those years could be 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. Ensure the safety of cash and near cash resources (timely collection of Accounts Receivable, etc.). iii Acknowledgments The preparation of the Comprehensive Annual Financial Report was made possible by the dedicated Finance staff of the City of Salina and the professional advice and efforts of the GordonCPA auditing team. Finally. preparation of this report would not have been possible without the support of the City Commission. Sincerely, Michael D. Schrage City Manager iv ( City of Salina ) Municipal Court Risk Management Development Services Lauren Driscoll Building Services Neighborhood Services Planning & Zoning Community Relations Parks & Recreation Chris Cotten Parks Division Recreation Division Golf Course Facility Maintenance Animal Services Bicentennial Center Fire Kevin Royse Fire Administration Fire Suppression Fire Prevention EMS Public Works Jim Telltsclz "ngineering Public Services Streets Traffic Control Flood Control Sanitation Solid Waste Central Garage Computer Technology Rita Stevenson CITIZENS CITY COMMISSION Melissa Rose Hodges, Mayor Trent Davis Karl Ryan Mike Hoppock Rod Franz City Manager Michael Schrage Legal Services Clark Mize & Linville Chartered* Greg Bengtson Deputy City Manager Jacob Wood Human Resources Natalie Fischer * Contract Position V Continuous Process Improvement Scott Gardner Utilities Martha Tasker Water Plant Division Wastewater Plant Division Utility Division Water Distribution Wastewater Collection Arts & Humanities Brad Anderson ( Smoky Hill Museum ] Police Brad Nelson Administration Patrol Division Support Division Investigative Division Finance/ Administration Debbie Pack City Clerk Water Customer Accounting Finance City of Salina, Kansas List of Principal Officials City Commission Melissa Rose Hodges, Mayor Dr. Trent Davis, Vice-Mayor Karl Ryan, Commissioner Mike Hoppock, 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 Rita Stevenson, Director of Computer Technology Natalie Fischer, Director of Human Resources Greg Bengtson, City Attorney Brad Nelson, Chief of Police Kevin Royse, Fire Chief Jim Teutsch, Director of Public Works Martha Tasker, Director of Utilities Chris Cotten, Director of Parks & Recreation Brad Anderson, Director of Arts & Humanities Scott Gardner, Director of Continuous Process Improvement vi FINANCIAL SECTION GORDON AUDITING ACCOUNTING CONSULTING Mayor and City Commissioners City of Salina, Kansas Report on the Financial Statements 2500 W 31st St Ste G-1B Lawrence, KS 66047 INDEPENDENT AUDITOR'S REPORT (785) 371-4847 cpagordon.com 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 , 2020, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements 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. Auditor's Responsibility 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, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of 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 3% 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 $46,156,436 as of December 31, 2020 and total revenues of 2,652,346 for the year then ended, and the Housing Authority of the City of Salina, which statements reflect total assets and deferred outflows of resources of $7,540,021 as of June 30, 2020 and total revenues of $2,957,322 for 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. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. 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 City of Salina, Kansas, as of December 31, 2020, 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 Funds for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the City implemented GASB Statement No. 84, Fiduciary Activities that reclassified ten of the City's funds that had been previously classified as agency funds. As a result of that implementation, certain fund balances as of January 1, 2020, were restated. Our opinion is not modified with respect to this matter. Prior Period Restatement As discussed in Note 3 to the financial statements, certain errors in amounts previously reported as of December 31, 2019, were discovered by management of the City during the current year. Accordingly, these amounts have been restated in the December 31, 2020, 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. 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 4 through 15, the other postemployment benefit schedules on page 71 and 72, the schedule of the City's proportionate share of the net pension liability on page 73, and the schedule of City contributions on page 73 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for 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 the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during 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 City's financial statements as a whole. The introductory section, combining and individual nonmajor fund financial 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 schedule of expenditures of federal awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards, and is also not a required part of the basic financial statements. The combining and individual non major fund financial statements and 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. 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. 2 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated July 23, 2021, on our consideration of the City's internal control over financial reporting and our tests of its compliance with certain provisions, of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in compliance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. Certified Public Accountant Lawrence, Kansas July 23, 2021 3 CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2020 Management Discussion and Analysis This section of the report contains an overview and analysis of the City of Salina's financial statements for the fiscal year ended December 31, 2020. The information contained here, as well as the information contained in the letter of transmittal, are intended to provide the reader of the financial statements with a well-rounded picture of the City's financial condition. Financial Highlights ♦ On an accrual basis, the City's government-wide net position increased $2.6 million from current operations with net position change of $5.7 million and $(3.1) million in governmental activities and business-type activities, respectively. ♦ At the close of 2020, the City's governmental funds reported combined ending fund balances of $31.3 million, an increase of $15.5 million from the prior year. The Capital Projects expenditures decreased $3.6 million from prior year. The General Fund balance, Sales Tax Capital Fund balance and Other Governmental Funds increased $5.8 million, $2.8 million and 2.3 million, respectively, over the prior year. ♦ At the close of 2020, the City's enterprise funds reported a combined ending Net Position of $96.6 million, an increase of $3.0 million over prior year. Positive performance was shared by the Water and Sewer Fund, the Sanitation Fund, Solid Waste Disposal and the Golf Fund. ♦ Revenues from governmental activities increased by $6.6 million from the prior year and revenues from business type activities decreased $1.3 million from the prior year. Other miscellaneous revenue increased $6.8 million due to fund transfers and bond proceeds. ♦ Revenues from investments continue to be minimal due to low interest rates. 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 reader's understanding of the financial statements. Other 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 results of the City's operations using the accrual basis of 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. The Statement of Net Position reports all of the City's assets and liabilities. Net position, the difference between assets and deferred outflows of resources and liabilities, are an important measure of the City's overall financial health. Net position represents the total accumulated and unused resources available to the City for the purpose of providing services. Over time, the increases and decreases in net position can be monitored to determine if the City's financial position is improving or deteriorating. The Statement of Activities shows how net position has changed 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, 4 CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2020 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 City and 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 provides a 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 term debt 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 non-major governmental funds are aggregated into an "Other Governmental Funds" column. A combining statement 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 Waste Disposal, 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 three internal service funds. Two of these are for self-insurance activity: Workers Compensation Reserve, and Health Insurance. The remaining accounts for 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 is no net position. The City of Salina operates twelve agency 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 additional information necessary for gaining a complete understanding of the City's financial statements. 5 Other Information CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2020 In addition to the basic financial statements and the notes described above, this report also presents the general fund and major special revenue fund's budgetary statements as required supplementary information directly following the notes to the basic financial statements. The combining statements for the non-major funds are shown after the required supplementary information. Finally, the statistical section includes selected statistical data about the City's operations and economy. The City as a Whole This section will identify, discuss, and analyze significant differences and trends that will enhance the reader's understanding of the City's financial position. Tax Base and Economy The City of Salina relies on three major groups of revenues to support its operations. 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. Charges for services account for about 37% ($34.9 million) of the City's revenue stream. Charges for service 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 decreased slightly in 2020, largely due to the 2020 COVID pandemic as most services were paused temporarily. This was offset by lower expenses. Sales taxes are the next largest component of the revenue mix, providing 25% ($23.4 million) of the total revenues. The City receives a 1.25% City-wide sales tax, and also a portion of the County-wide 1.5% 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 is affected 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. As the portion of the overlapping levy attributable to the City of Salina changes so does the City's allocated portion of the County-wide sales tax. This change is recognized bi-annually and can affect the overall allocation of the City's portion of the County-wide sales tax. In 2020, this allocation decreased slightly which did not have a significant impact on the tax revenues. In 2008, Salina voters approved an increase of the special purpose .25% tax to a .40% tax. The extended tax is 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, 2017 for twenty years. Property taxes are the third major component of the revenue mix, accounting for 16% ($14.9 million) 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 taxes which are established by a countywide average tax rate and the assessed value of the vehicle. Real estate assessed value increased by 4.1%. The total City mill levy increased by 8.7%. The overlapping levy increased in 2019 by 0.8%. 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 $11.2 million from its peak of $39.7 million in 2007. 6 CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2020 Motor vehicle value increased 2.5%. Motor vehicle taxes are distributed based on a formula using prior year's tax effort (similar to the Countywide Sales Tax Distribution). The following table summarizes the comparative property assessed values and tax levy rates: Co~rative Property Values and Tax Levy Rates Fiscal (Budget) Year 2020 2019 ~ Real Estate and Personal Property Assessed Valuation $ 454,467,319 $ 434,451,245 $ 20,016,074 City MIi Levy($ per $1,000) Operating (General Fund) 22.285 20.339 1.946 Debt Service 6.109 5.790 0.319 Total City Rate 28.394 26.129 2.265 Total Overlapping Levy 138.341 133.140 5.201 Percent Total Taxes Collected 97.2% 97.4% (0.002) Ratio of Total Taxes (including delinquent collections) to taxes levied 98.6% 98.6% 11/btor Vehicle Valuation $ 54,687,311 $ 53,336,677 $ 1,350,634 The unemployment rate in Salina increased slightly from 3.1% at the end of 2019 to 3.5% at the end of 2020, reflecting general economic conditions. This is still slightly below the statewide and significantly below the national unemployment rate. The total labor force decreased to 25,446 from 25,643 in 2019. In 2020, the top ten property taxpayers accounted for 10.00% of total assessed value. Statement of Net Position Net position may, over time, provide an indicator of a government's financial position. In the case of the City of Salina, assets and deferred outflows of resources exceeded liabilities by $234.4 million at December 31, 2020. This represents an increase in net assets of $2.6 million over 2019. A comparative Condensed Statement of Net Position at December 31 , 2020 and 2019: 7 CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2020 Condensed Statement of Net Position As of December 31 lin $0001 Governmental Adivities Business-Type Activities Total Primary Government JO 01 ,001 LOLO L01J 2020 2019 2020 2019 2020 Total 2019 Total change Cash and investments 42,246 $ 31,406 $38,876 $ 34,957 $81,122 19% $66,363 15% $ 14,759 Other current assets 16,910 17,201 2,082 2,512 18,992 4% 19,713 4% (721) Noncurrent (capital) assets 215,438 222,258 119,118 101,079 334,556 77% 323,337 81% 11,219 ----Total assets 274,594 270,865 160,076 138,548 434,670 100% 409,413 100% 25,257 Total deferred outflows of 8,761 5,073 1,117 546 9,878 100% 5,619 100% 4,259 resources Total assets and deferred outflows of resources 283,355 275,938 161,192 139,094 444,547 415,033 29,514 Current liabilities 17,230 23,971 3,964 3,579 21,194 11% 27,550 11% (6,356) Noncurrent liabilities 106,651 98,696 60,379 41,765 167,030 89% 140,461 89% 26,569 Total liabilities 123,881 122,667 64,343 45,344 188,224 100% 168,011 100% 20,213 Total deferred inflows of resources 15,392 14,913 240 198 15,632 15,112 520 Net position: Net investment in capital assets 143,559 151,527 62,368 63,301 205,927 88% 214,828 91% (8,901) Restricted for permanent funds 543 528 543 0% 528 0% 15 Restricted for debt service 1,724 1,142 1,512 1,368 3,236 1% 2,510 1% 726 Unrestricted (1,744) (14,839) 26,503 28,883 24,759 11% 14,044 8% 10,715 Total net position 144,082 138,358 90,383 93,552 234,465 100% 231,910 100% 2,555 Percent oftotal net position 61% 60% 39% 40% 100% 100% Cash and investments as a percentage of current liabilities 245% 131% 981% 977% 383% 241% The largest segment of the City's net position reflects its investment in capital assets (land, buildings, streets and 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 future taxes or user charges. A small portion of net position is restricted for debt service and permanent funds. The remainder (unrestricted) of net position may be used to meet the City's obligations to citizens and creditors. 8 CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2020 In 2020, the amount of net investment in capital assets decreased by $8.9 million. Amount restricted for debt service increased by $726 thousand. Unrestricted increased by $10.7 million. Outside of these changes, 2020 resulted in a $2.6 million increase to the net position. Total liabilities increased in governmental activities and slightly decreased in business-type activities. In governmental activities, current liabilities increased and non-current liabilities decreased primarily due to an increase in temporary notes and a decrease in general obligation bonds. Statement of Activities A Condensed Statement of Activities is shown below. Program Revenues: Charges for Services Operating Grants and Contributions General Revenues: Property Taxes Sales Taxes Other Taxes Investment Revenue Other Miscellaneous Total Revenues: Expenses: General Government Public Safety Public Works Public Health and Sanitation Culture and Recreation Planning and Development Solid Waste Disposal Water and Sewer Sanitation Golf Course Interest on Long Term Debt Total Expenses Increase in net assets before transfers Transfers and other extraordinary items Change in Net Position Net Position January 1 Prior Period Adjustment Net Position January 1 restated Net Position December 31 Condensed Statement of Activities For the Year Ended December 31 (in $000) Governmental Business-Type Activities Activities 2020 2019 2020 2019 8,400 9,730 26,513 27,423 4,714 4,540 14,887 13,774 23,448 22,742 6,117 6,975 286 670 4 8,328 1,168 447 846 66,180 59,599 26,964 28,269 10,395 10,866 24,672 25,358 10,511 10,528 1,323 1,156 5,034 6,879 2,004 2,523 2,056 2,871 13,386 14,294 2,526 2,266 805 888 2,350 2,169 56,289 59,479 18,773 20,319 9,891 121 8,191 7,950 5,133 4,782 (5,133) (4,782) 15,024 4,902 3,058 3,169 138,359 133,452 93,552 90,383 (9,303) 4 129,056 133,456 93,552 90,383 $144,081 $138,359 $96,610 $93,552 9 Total Primary Government 2020-2019 2020 ~ 2019 ~ Change 34,913 37% 37,153 42% (2,240) 4,714 5% 4,540 5% 174 14,887 16% 13,774 16% 1,113 23,448 25% 22,742 26% 706 6,117 7% 6,975 8% (858) 290 0% 670 1% (380) 8,775 9% 2,014 2% 6,761 93,144 100% 87,868 100% 5,276 10,395 14% 10,866 14% -471 24,672 33% 25,358 32% -686 10,511 14% 10,528 13% -17 1,323 2% 1,156 1% 167 5,034 7% 6,879 9% -1,845 2,004 3% 2,523 3% -519 2,056 3% 2,871 4% -815 13,386 18% 14,294 18% -908 2,526 3% 2,266 3% 260 805 1% 888 1% -83 2,350 3% 2,169 3% 181 75,062 100% 79,798 100% -4,736 18,082 9,414 8,668 (58) 58 18,082 9,356 8,726 231,911 203,428 28,483 (9,303) -9,303 222,608 203,428 19,180 $240,690 $212,784 $ 27,906 CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31 , 2020 Governmental Activities. Charges for services attributable to governmental activities totaled $8.4 million, as operating grants for those purposes were $4. 7 million. Charges for services decreased and operating grants increased slightly from the prior year due to the 2020 COVID pandemic as most services were paused temporarily. The balance was funded by general revenues. Sales taxes accounted for $23.4 million of general revenues, with property taxes providing $14.9 million. The net position increased by $5.7 million 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, 2020 were $56.3 million compared to $59.5 million in 2020. Governmental activities represent 75% of the City's total expenses. The largest element of governmental activity expense was public safety, accounting for 33% of the total expenses. Business Type Activities. Business-type activities are primarily supported by user charges. Total expenses for business-type activities for the year were $18.8 million, or 25% of the City's total expenses. The majority of this expense ($13.4 million) is attributable to water and sewer operations, with the other activities costing a combined total of $5.4 million. Net position increased by $3.1 million. This increase was primarily related to an overall decrease in business-type activity expenses due to the 2020 COVID pandemic. Fund Financial Analysis Governmental Funds Fund Balances: The table below shows the Governmental Fund balances for major funds as of December 31, 2020 and December 31 ,2019. Governmental Fund Balances as of December 31, (in 0OO's) Fund 2020 2019 General $ 15,142 $ 9,307 Tourism and Convention 327 451 Special Gas 2,866 2,191 Sales Tax Capital 5,209 2,406 Schilling Capital Improvement 1,494 1,949 Debt Service 1,724 1,142 Capital Projects (4,028} (7,652) SFH QalicB 1,561 1,310 Other Governmental Funds 6,989 4,671 $ 31,284 $ 15,775 Change $ 5,835 {124) 675 2,803 (455) 582 3,624 251 2,318 $ 15,509 Total governmental fund balances increased by $15.5 million. The reasons for these changes are varied, including lower expenses during the 2020 COVID pandemic. 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 decrease as the City uses funds previously distributed. The Capital Projects Fund decrease was largely the result of the use of funds to fund capital outlays on projects. The SFH QalicB fund was created to account for funds for the Salina Field House. 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, 2020 and 2019. 10 CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2020 Consolidated Statement of Revenues and Expenditures for Major Governmental Funds For the years ended December 31 Modified Accrual Basis (in 000's) Fund 2020 2019 Change Revenues (including Other Financing Sources) General $ 44,560 $ 44,228 $ 332 Tourism and Convention 1,192 1,889 (697) Special Gas 2,209 2,027 182 Sales Tax Capital 8,871 8,501 370 Schilling Capital Improvement 7 21 (14) Debt Service 7,740 6,241 1,499 Capital Projects 8,598 11,871 (3,273) SFH QalicB 494 499 (5) Other Governmental Funds 7,757 4,745 3,012 Total Revenues 81,428 80,022 1,406 Less Other Sources (18,515) (21,247) 2,732 Revenues, net of other sources $ 62,913 $ 58,775 $ 4,138 Expenditures (including Other Financing Uses) General $ 38,921 $ 41,664 $ (2,743) Tourism and Convention 1,316 1,896 (580) Special Gas 1,534 1,368 166 Sales Tax Capital 6,067 8,060 (1,993) Schilling Capital Improvement 462 208 254 Debt Service 7,155 6,950 205 Capital Projects 4,974 18,830 (13,856) SFH QalicB 244 407 (163) Other Governmental Funds 5,865 3,954 1,911 Total Expenditures 66,538 83,337 (16,799) Less Other Uses (4,271) (5,073) 802 Expenditures, net of other uses $ 62,267 $ 78,264 $ (15,997) Total revenues, including other sources, were up $4.1 million compared to 2019, with Other Governmental Funds showing the largest increase between the two years, which was $3.0 million. Total expenditures decreased $16.0 million over 2019. The majority of that decrease, $13.9 million was in the Capital Projects Fund as a result of decreased spending on projects due to the 2020 COVID pandemic. Proprietary Funds The City of Salina operates four enterprise funds as well as five internal service funds. A summarized comparative Statement of Net Position follows for each enterprise fund: 11 CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2020 Comparative Summary Statement of Net Position as of December 31 (in $OOO's) Solid Waste Disposal Water and Sewer 2020 2019 Change 2020 2019 Change Current Assets $ 8,075 $ 7,073 $ 1,002 $ 30,396 $ 28,307 $ 2,089 Capital Assets 3,335 1,497 1,838 114,104 97,956 16,148 Deferred Outflows 137 67 70 706 371 335 Total Assets and deferred outflows $ 11,547 $ 8,637 $ 2,910 $145,206 $ 126,634 $ 18,572 Current Liabilities $ 448 $ 103 $ 345 $ 3,394 $ 3,273 $ 121 Noncurrent Liabilities 4,929 2,865 2,064 54,285 38,016 16,269 Deferred Inflows 33 28 5 151 126 25 Total Liabilities $ 5,410 $ 2,996 $ 2,414 $ 57,830 $ 41,415 $ 16,415 Net investment in capital assets $ 910 $ 1,107 $ (197) $ 61,154 $ 60,568 $ 586 Restricted 1,175 1,368 (193) Unrestricted 5,227 4,534 693 25,046 23,283 1,763 Total Net Position $ 6,137 $ 5,641 $ 496 $ 87,375 $ 85,219 $ 2,156 Current Assets as percentage of current liabilities 1802% 6867% 896% 865% Sanitation Golf Course 2020 2019 Change 2020 2019 Change Current Assets $ 2,395 $ 2,012 $ 383 $ 91 $ 77 $ 14 Ca pita I Assets 1003 1165 $ (162) 675 462 $ 213 Deferred Outflows 164 84 $ 80 110 25 $ 85 Total Assets and deferred outflows $ 3,562 $ 3,261 $ 301 $ 876 $ 564 $ 312 Current Liabilities $ 97 $ 137 $ (40) $ 25 $ 66 $ (41) Noncurrent Liabilities 833 668 $ 165 330 215 $ 115 Deferred Inflows $ 41 35 $ 6 $ 15 $ 10 $ 5 Total Liabilities $ 971 $ 840 $ 131 $ 370 $ 291 $ 79 Net investment in capital assets $ 1,003 $ 1,165 $ (162) $ 675 $ 462 $ 213 Restricted Unrestricted 1588 1256 $ 332 {169) $ (187) $ 18 Total Net Position $ 2,591 $ 2,421 $ 170 $ 506 $ 275 $ 231 Current Assets as percentage of current liabilities 2469% 1469% 364% 117% 12 CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2020 Revenues, Expenses, and Changes in Net Position All enterprise funds show healthy results, with all funds reflecting increases in net position. Comparative Summary of Revenue, Expenses and Changes in Net Position for the Year Ended December 31 (In 000's) Solid Waste Disposal Water and Sewer 2020 2019 Change 2020 2019 Change Operating Revenues $ 3,322 $ 3,499 $ (177) $19,504 $20,588 $ (1,084} Operating Expenses 2,011 2,849 (838} 12,460 13,013 (553} Operating Income 1,311 650 661 7,044 7,575 (531} Non-operating revenues (expenses} (45) (22) (23) (922) (1281) 359 Income (Loss) before Transfers 1,266 627 639 6,122 6294 {172) Transfers in (out) (2,729) {640} (2,089) (2,006) (3,650} 1,644 Change in Net Position (1,463) (13) (1,450) 4,116 2644 1,472 Net Position January 1 5,640 5,653 (13) 85,219 82,580 2,639 Restatement 1,960 1,960 (1,960) (5) (1,960) Net Position January 1, restated 7,600 5,653 1,947 83,259 82,575 684 Net Position December 31 $ 6,137 $ 5,640 $ 497 $87,375 $85,219 $ 2,156 Sanitation Golf Course 2020 2019 Change 2020 2019 Change Operating Revenues $ 3,194 $ 3,276 $ (82} $ 939 $ 907 $ 32 Operating Expenses 2,526 2,266 260 805 888 (83) Operating Income 668 1,010 (342) 134 19 115 Non-operating revenues (expenses) 0 Income (Loss} before Transfers 668 1010 {342} 134 19 115 Transfers in (out) (497) (492) (5) 100 Change in Net Position 171 519 (348) 234 19 215 Net Position January 1 2,421 1,897 524 272 253 19 Restatement 5 Net Position January 1, restated 2,421 1,902 519 272 253 19 Net Position December 31 $ 2,592 $ 2,421 $ 171 $ 506 $ 272 $ 234 13 Budgetary Highlights CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2020 The objective of budgetary controls is to ensure compliance with legal prov1s1ons 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 order$ are reported as reservations of budgetary basis fund balances at December 31, 2020. 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. Budgets may 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, 2020 was $334,555,753 net of accumulated depreciation. The following table illustrates the Capital Asset balance by various classes of assets at December 31, 2020 and 2019: Capital Assets Balances Net of Depreciation as of December 31 (In $000's) Governmental Activitk'. Business-Tyee Activity 2020 2019 2020 2019 Equipment, Furniture and Fixtures $ 2,309 $ 2,352 $ 1,280 $ 1,536 Vehicles 2,676 2,854 1,079 1,288 Buildings and Improvements 29,218 30,556 8,103 8,519 Land 24,224 24,224 2,386 2,386 Leased land under capital leases 423 423 Infrastructure 130,010 116,264 78,294 79,823 Leasehold Improvements 357 357 Construction in Progress 26,221 35,302 27,976 7,527 Total $ 215,438 $ 212,332 $ 119,118 $ 101,079 Changes to capital assets may be summarized as follows: Additions Retirements Depreciation Net Additions Changes to Capital Assets, 2020 (in $000's) Governmenta I Business-Type Activity Activity 27,118 23,416 (18,281) (1,558) (5,731) (3,819) $ 3,106 $ 18,039 14 Total 2020 2019 $ 3,589 $ 3,888 3,755 4,142 37,321 39,075 26,610 26,610 423 208,304 196,087 357 54,197 42,829 $ 334,556 $ 312,631 Total 50,534 (19,839) (9,550) $ 21,145 CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2020 Additional information on the City's capital assets can be found in Note 4,D. of the notes to the basic financial statements. Debt Management The City's general policy for general obligation bonds is to 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 bonds for governmental activities at December 31, 2020 totaled $68,438,971 . In addition, there were temporary notes outstanding in the amount of $7,050,000, as well as a financing operating lease in the amount of $583,725. Business-type activities had $10,341,160 in revenue bonds outstanding, as well as $9,107,990 in general obligation bonds. Revenues generated by user fees are pledged to retire all ofthe bonds issued by business-type activities. In addition, a loan payable is outstanding in the amount of $6,044,214. The City engaged in the following debt transactions during 2020: • On April 29th, the City issued 2020-1, $7,050,000 of temporary notes. The proceeds were used to finance construction to Pheasant Ridge Addition 3, Police Training Facility, and Stone Lake 2. • On April 29th, the City issued 2020A, $5,450,610 in General Obligation Bonds to finance construction costs for Landfill Cell, the Police Parking Lot, Golf Irrigation and 9th Street Bridge Design, as well as to finance the Smoky Hill River Design. • On November 19th, the City issued 20208, $9,043,333 in General Obligation Bonds to finance construction costs for the Radio Project, Quint, SCBA, as well as to finance the 2012A Refunding -Magnolia. Additional information on the City's debt can be found in Note 4, E. of the notes to the basic financial statements. Requests for Information This financial report is intended to give the reader a general overview of the City's finances. Questions about information in this report or requests for additional information should be directed to the Director of Finance, Room 206, 300 West Ash Street, Salina, Kansas, 67401 . 15 BASIC FINANCIAL STATEMENTS CITY OF SALINA, KANSAS STATEMENT OF NET POSITION December 31 , 2020 Prima!i: Government Total Total Governmental Business-type AetiYllies Activffies ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Current assets: cash and investments Receivables (net of allowance for uncoUectiblos) Accounts Taxes Interest Inventory Restricted cash and inveslmenls Prepaid expenses Total current assets Noncurrent assets: Capital assets, nondepreciable Construction in progress Land Capital assets, depreciable Less: Acx:umulated depreciation Total noncurrent assets Total assets Deferred outflows of resources: KPERS OPEB deferred outflows of resources OPES deferred outflows of resources Pension deferred outflows of resources Deferred charge on bond issuance Total deferred outflows of resources Total assets end deferred outflows of resources Liabilities: Current liabilities: Accounts payable Retain•g~ payable Accrued liabilities Aecn.ied interest payable Deposits payable current portion of compensated absences Current portion of temporary notes payable currant portion of loans payable Current portion of revenue bonds payable Current portion of special assessment debt payable current portion of general obligation bonds payable Total current liabiities Noncurrenl liabiities: Accrued liabilities Compensated absences Security deposits returnable OPEB obligation KPERS OPEB obligalion Nol pension liabi61y Loans payable Revenue bonds payable Special assessment debl payable General obligation bonds payable Landfill post-closure care labilities Total noncurrent liabilities Total llalllitios Deferred inflows of resources: Unavailable revenue -property taxes KPERS OPEB deferred inflows of rosouncas OPES deferred intlows of resources Pension deferred inflows of resources Total deferred inflows of resources Total liabilities and deferred inflows of resources Net Position Net investment in capital aSHts Reslricted for: Permanent funds: Expendable Debt service Unrestricted Total net position $ 42,248,017 $ 38,875,629 1,916,733 1,664,390 14,362,079 10,392 16 284,987 417,947 335,497 59,155,705 40 957 982 26,221,157 27,975,936 24,646,334 2,386,334 297,446,919 163,770,396 132,876,276 75,015,049 215,438,134 119117619 274,593,839 160,075,601 135,741 55,982 148,419 24,797 8,471,181 1,035,819 5,990 8,761,331 1,116,598 $ 283,355,170 $161,192,199 $ 1,718,179 $ 562,153 1,687,819 211,528 788,446 61,875 447,048 285,259 1,224,971 273,001 7,050,000 375,071 750,000 4,699,145 1,060,100 17,230,435 3964160 263,049 1,472,035 321,310 3,097,540 517,514 402,677 194,767 34,571,390 3,854,606 12,212,979 35,550,958 8,865,000 54,631,836 8,774,050 2,300,353 106,651,506 60,378,558 123,681,941 64,342,718 13,876,740 57,734 27,926 273,521 45,698 1183831 165 880 15,391,826 239 504 $ 139,273,167 $ 64,582,222 $ 143,558,677 $ 63,742,440 542,755 1,724,117 1,175,378 [1744148) 31,692,159 $ 144,081,403 $ 96,609,977 The notes to the basic financial statements are an Integral part of this statement. 16 Com~nent Units Total Salina Salina Primary Housing Airport Government Authori~ Authorily $ 81,121,646 $ 2,047,865 s 2,255,880 3,581,123 25,280 390,970 14,362,079 10,408 702,934 31,898 335,497 110,640 15700 100,113,687 2,215 683 2,682,550 54,197,095 136,666 205,592 27,032,668 1,557,554 9,874,567 461,217,315 8,934,888 82,625,316 207,691,325 5,362,214 50 444 301 334,555,753 5~66,894 42,261,174 434669440 7,482,577 44,923,724 191,723 4,727 173,216 9,507,000 57,444 214,164 5990 1,013,821 9,877,929 57,444 1232712 § 444,547,369 ! 7,540,021 $ 46,158,436 $ 2,280,332 $ 45,583 $ 125,641 1,899,347 788,446 52,903 146,669 508,923 211,244 285,259 93,237 1,497,972 3,068 51,799 7,050,000 375,071 39,942 750,000 2,455 5,759,245 3,730,000 21,194,595 194 791 4 307 750 263,049 65,926 1,793,345 27,617 83,989 3,615,054 13,924 597,444 7,657 38,425,996 319,900 715,870 47,783,937 420,058 8,865,000 63,405,886 19,351,436 2,300,353 167,030,064 421,100 20,585,077 188,224,659 615891 24,892,827 13,876,740 53,442 85,660 319,219 7,961 1349711 25447 58485 15,631,330 78,889 66,426 $ 203,855,889 $ 894,780 $ 24,959,253 $207,301,117 $ 5,266,894 $ 18,717,283 542,755 100,183 2,899,495 29,948,013 1478164 2,479,900 $ 240,691,380 $ 6,845,241 $ 21,197,183 Governmental activities: General government Public safety Public works Public health and sanitation Culture and recreation Planning and development Interest on long-term debt Total governmental activities Business-type activities: Solid Waste Disposal Water and Sewer Sanitation Golf Course Total business-type activities Total primary government Component units: Salina Housing Authority Salina Airport Authority Total component units CITY OF SALINA, KANSAS STATEMENT OF ACTIVITIES For the Year Ended December 31, 2020 Net [Expenses] Revenue and Changes in Net Position Program Revenues Operating Capital Charges for Grants and Grants and Expenses Servicas Contributions Contributions $ 10,394,607 $ 3,338,860 $ 1,201,206 $ 24,671,916 4,325,391 1,477,850 10,510,841 294,108 1,334,047 1,322,698 49,388 221,982 5,033,513 279,296 294,037 2,004,435 113,262 185,227 2,349,539 5612871M9 8,400,305 4,714,349 2,055,825 3,289,539 13,386,267 19,448,780 2,526,129 3,193,904 804,973 581,232 18,773,194 26,513,455 $ 75,060,743 $34,913,760 $ 4,714,349 $ $ 2,889,339 $ 8,700,408 393,634 $ 2,319,183 $ 2,652,346 113,963 2,100,818 $ 11589747 $ 3,045,980 $ 2,319,183 $ 2,214,781 General Revenues: Property taxes levied for General purposes Debt service Motor vehicle tax General purposes Sales tax General purposes Selective purposes Other taxes General purposes Investment revenues Miscellaneous Transfers, net Subtotal general revenues Change in net position Net position -beginning Prior period adjustment Net position -beginning, restated Primary Government Total Governmental Activities $ [5,8M,M1] [18,868,675] [8,882,686] [1,051,328] [4,460,180) [1,705,946) [2,349,539) [43,172,895) [43,172,895] 10,308,086 3,058,231 1,520,297 13,697,179 9,751,294 6,117,168 285,623 8,328,452 5,132,726 58,199,056 15.026,161 138,358,514 [9,303,272) 129.055.242 Total Business-type Activities $ 1,233,714 6,062,513 667,775 [223,7411 7,740,261 7,740,261 4,144 446,477 [5,132,726) [4,682,105) 3,058,156 93,551,821 93,551,821 Total Primary Government $ [5,854,M1] [18,868,675] (8,882,686] [1,051,328] [4,460, 180] [1,705,946] [2,349,539) [43,172,895) 1,233,714 6,062,513 667,775 [223,741) 7,740,261 [35,432,634) 10,308,086 3,058,231 1,520,297 13,697,179 9,751 ,294 6,117,168 289,767 8,774,929 53,516,951 18,084,317 231,910,335 [9,303,2721 222.607 063 Component Units Salina Salina Housing Airport Authority Autholity $ $ [62,559] [3,947,244] [62,559) [3,947,244) 2,639,481 22,125 2,161 108,417 130,542 ~ [1,305,602] 6,777,258 22,502,785 6,777,258 22,502,785 Net position -ending $144,081,403 $ 96,609,977 $240,691,380 $6,845,241 $21,197,183 The notes to the basic financial statements are an integral part of this statement. 17 [fHIS PAGE INTENTIONALLY LEFr BLANK] CITY OF SALINA, KANSAS BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2020 Tourism and Special Sales Tax General Convention Gas Capital ASSETS Cash and investments $ 13,353,397 $ 854 $ 2,580,212 $ 6,534,049 Restricted cash Receivables (net) Accounts 1,587,438 326,008 Taxes 10,934,927 305,807 Interest 10,392 Inventory 183,768 Due from other funds 31,989 Total assets $ 26,101,911 $ 326,862 $ 2,886,019 $ 6,534,049 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable $ 145,736 $ -$ 20,116 $ 24,791 Retainage payable 1,299,766 Temporary notes payable Due to other funds Total liabilities 145 736 20,116 1,324,557 Deferred inflows of resources Unavailable revenue -property taxes 10,737,173 Unavailable revenue -other 76,739 Total deferred inflows of resources 10,813,912 Fund balance: Nonspendable 183,768 Restricted 326,862 2,233,811 Committed 4,065,778 Assigned 244,434 632,092 1,143,714 Unassigned 14 714,061 Total fund balances 15,142,263 326,862 2,865,903 5,209,492 Total liabilities, deferred inflows of resources and fund balances $ 26,101,911 $ 326,862 $ 2,886,019 $ 6,534,049 $ $ $ $ Schilling Other Total Capital Debt Capital SFH Governmental Governmental Improvement Service Projects QalicB Funds Funds 1,493,977 $ 1,665,599 $ 4,656,684 $ 3,918 $ 7,239,668 $ 37,528,358 335,497 335,497 1,235,034 3,287 3,151,767 3,121 ,345 14,362,079 10,392 183,768 31,989 1,493,977 $ 4,786,944 $ 4,656,684 $ 1,574,449 $ 7,242,955 $ 55,603,850 -$ -$ 1,260,261 $ -$ 221,525 $ 1,672,429 374,230 13,823 1,687,819 7,050,000 7,050,000 31 ,989 31,989 8,684,491 13,823 253,514 10,442,237 3,062,827 13,800,000 76,739 3,062,827 13,876,739 183,768 1,724,117 695,513 4,980,303 1,493,977 1,560,626 6,104,669 13,225,050 189,259 2,209,499 [4,027,807] 10,686,254 1,493,977 1,724,117 [4,027,807] 1,560,626 6,989,441 31,284,874 1,493,977 $ 4,786,944 $ 4,656,684 $ 1,574,449 $ 7,242,955 $ 55,603,850 The notes to the basic financial statements are an integral part of this statement. 18 CITY OF SALINA, KANSAS RECONCILIATION OF THE TOTAL GOVERNMENTAL FUND BALANCE TO NET POSITION OF GOVERNMENTAL ACTIVITIES December 31, 2020 Total Governmental Fund Balances 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 costs Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds The cost of capital assets is Accumulated depreciation is 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. 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. Certain intrafund transactions have been eliminated between the City's primary funds and the QALICB blended component unit. 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. 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 absences Net OPEB obligation Net pension liability Bonds payable Loans payable Accrued interest on the bonds Net Position of Governmental Activities 348,146,176 132,722,313 2,666,706 3,491,494 34,383,483 59,330,981 12,212,979 61,875 The notes to the basic financial statements are an integral part of this statement. 19 $ 31,284,874 5,990 215,423,863 8,705,364 [1,505,440] [1,235,034] 3,549,304 [112,147,518] $ 144,081,403 [THIS PAGE INfENTIONALL Y LEFT BLANK] CITY OF SALINA, KANSAS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS For the Year Ended December 31, 2020 Tourism and Special Sales Tax General COnlle□liQ□ Gas Capital REVENUES: Taxes Real estate taxes $ 10,139,044 $ -$ -$ Delinquent taxes 169,042 Motor vehide taxes 1,189,598 General sales taxes 13,697,179 Selective sales taxes 8,624,465 Other taxes 4,925,381 1,191,787 Intergovernmental 2,453,021 1,328,977 Special assessments Licenses and permits Charges for services 4,942,217 Investment revenue 256,515 Donations Miscellaneous 981,845 720,243 246,159 Total revenues 38,753,842 1,191 ,787 2,049,220 8,870,624 EXPENDITURES: Current General government 5,505,967 Public safety 22,435,061 Public works 5,101,204 355,565 Public health and sanitation 682,439 Culture and recreation 3,037,594 Planning and development 673,564 726,743 Miscellaneous Capital outlay 608,460 1,178,730 3,262,657 Debt service Principal retirement Interest and other charges Total expenditures 38,044,289 726,743 1,534,295 3,262,657 Excess [deficiency] of revenue and other sources over [under] expenditures and other [uses] 709,553 465,044 514,925 5,607,967 OTHER FINANCING SOURCES [USES] Issuance of bonds Bond premium Transfers in 5,806,300 160,000 Transfers [out] [877,000) [589,252) [2,804,350} Total other financing sources [uses] 4,929,300 [589,252) 160,000 [2,804,350) Net change in fund balance 5,638,853 (124,208) 674,925 2,803,617 Fund balance -Beginning of year 9,307,174 451,070 2,190,978 2,405,875 Prior period adjustment 196,236 Fund balance -Beginning of year, restated 9,503,410 451,070 2,190,978 2,405,875 Fund balance -End of year $ 15,142,263 $ 3261862 $ 2,8651903 $ 5,209,492 Schilling Other Total Capital Debt Capital SFH Governmental Governmental Improvement Service Projects QalicB Funds Funds $ $ -$ 3,010,914 $ -$ -$ -$ 13,149,958 47,317 216,359 330,699 1,520,297 13,697,179 1,126,829 9,751,294 6,117,168 1,535,238 5,317,236 1,511,279 1,511,279 5,070 5,070 492,917 121,417 5,556,551 7,005 967 21,136 285,623 129,193 129,193 130,108 3,577,577 5,655,932 7,005 4,900,209 130,108 493,884 6,516,460 62,913,139 5,505,967 22,435,061 625,362 6,082,131 597,804 1,280,243 1,207,431 4,245,025 16,652 376,545 1,793,504 53,301 1,300,661 1,353,962 462,374 4,760,797 26,983 1,741,294 12,041,295 5,163,995 5,163,995 1,937,284 213,299 200,044 15,496 2,366,123 462,374 7,154,580 4,974,096 243,679 5,864,593 62,267,306 [455,369} [2,254,371] [4,843,988] 250,205 651,867 645,833 1,206,882 7,513,405 8,720,287 468,404 468,404 1,629,188 486,426 1,241,413 9,323,327 (4,270,602) 2,836,070 8,468,235 1,241,413 14,241,416 [455,369) 581 ,699 3,624,247 250,205 1,893,280 14,887,249 1,949,346 1,142,418 [7,652,054] 1,310,421 4,670,517 15,775,745 425,644 621,880 1,949,346 1,142,418 [7,652,054) 1,310,421 5,096,161 16,397,625 1,493,977 $ 1,724,117 $ [4,027,807) $ 1,560,626 $ 6,989,441 $ 31,2841874 The notes to the basic financial statements are an integral part of this statement. 20 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, 2020 Total Net Change In Fund Balances -Governmental Funds 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 Capital outlays Depreciation expense 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. 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 funds are reported with governmental activities. Certain intrafund transactions have been eliminated between the City's primary funds and the QALICB blended component unit. 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. Pension payments are reported as expenditures in the governmental funds and do not affect the statement of net activities. 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. Repayment of bond principal and bond issuance costs is an expenditure in the governmental funds, but it reduces long-term liabilities in the statement of net position and does not affect the statement of activities. Changes In Net Position of Governmental Activities [34,933] 9,188,324 [5,881 ,296] The notes to the basic financial statements are an integral part of this statement. 21 $ 14,887,249 3,272,095 16,584 983,576 [712,617] 168,922 [1,817,189] [8,982,222] 7,209,763 $ 15,026,161 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, 2020 Budgei§ld Amounts fil1Yfil Original Revenues Taxes Real estate taxes $ 10,139,044 $ 10,269,618 Delinquent taxes 189,042 180,000 Motor vehicle taxes 1,183,360 1,148,859 General sales tax 13,697,179 13,119,090 Other taxes 4,925,381 7,200,990 Intergovernmental 2,453,021 1,155,255 Charges for services 3,710,836 5,931,339 Investment revenue 254,767 140,000 Miscellaneous 981,842 513,496 Total revenues 37,514,472 39,638,647 Expenditures General government 4,336,448 5,627,624 Public safety 22,434,733 22,669,448 Public works 5,044,769 4,552,934 Public health and sanitation 682,439 Culture and recreation 3,050,289 7,911,847 Planning and development 553,972 3,099,280 Capital outlay 608,460 4,746,430 Total expenditures 36,711 ,110 48,607,563 Excess [deficiency) of revenues over [under] expenditures 803,362 (8,968,916) Other financing sources [uses] Transfers in 5,806,300 4,366,550 Transfers [out] [877,000) [905,500) Total other financing sources [uses] 4,929,300 3,461,050 Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses] 5,732,662 [5,507,866] Unreserved fund balance, January 1, restated 7,185,815 5,507,866 Unreserved fund balance, December 31 Reconciliation to GAAP Interest receivable Accounts receivable Taxes receivable Inventory Deferred revenue Current year encumbrances GAAP Fund Balance, December 31 12,918,477 $ 10,392 1,587,438 10,934,927 183,768 [10,737,173] 244,434 $ 15,142,263 See independent auditor's report on the financial statements. 22 Final $ 10,269,618 160,000 1,148,859 13,119,090 7,200,990 1,155,255 5,931,339 140,000 513 496 39,638,647 5,627,624 22,669,448 4,552,934 7,911,847 3,099,280 4,746430 48,607,563 [8,968,916) 4,366,550 (905,500) 3,461,050 (5,507,866] 5,507,866 $ - Variance with Final Budget Positive [Negative] $ [130,574) 9,042 34,501 578,089 [2,275,609) 1,297,766 [2,220,503] 114,767 468,346 [2,124,175] 1,291,176 234,715 [491 ,835) [682,439] 4,861,558 2,545,308 4,137,970 11,896,453 9,772,278 1,439,750 28,500 1,468,250 11,240,528 1 677,949 $ 12 918,477 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 , 2020 Budgeted Amounts Original Final Variance with Final Budget Positive [Negative) Revenues Other taxes $ 1,315,996 $ 1,900,000 $ 1,900,000 $ [584,004] Total revenues Expenditures Planning and development Total expenditures Excess [deficiency] of revenues 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] Unreserved fund balance, January 1 1,315,996 726,743 726,743 589,253 [589,252] [589,252] 853 1,900,000 1,900,000 [584,004] 1,045,000 1,045,000 318,257 1,045,000 1,045,000 318,257 855,000 855,000 [265,747] [855,000] [855,000} 265,748 [855,000] [855,000} 265,748 1 853 853 Unreserved fund balance, December 31 Reconciliation to GAAP 854 $ 853 $ 853 _$ ____ 1 Accounts receivable 326,008 GAAP Fund Balance, December 31 $ 326,862 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, 2020 Budgeted Amounts Actual Original Final Revenues Intergovernmental $ 1,351,092 $ 1,330,760 $ 1,330,760 Miscellaneous 720,243 Investment revenue 3,000 3,000 Total revenues 2,071,335 1,333,760 1,333,760 Expenditures Public works 355,565 486,950 486,950 Capital outlay 1,740,235 1,181,243 1,181,243 Total expenditures 2,095,800 1,668,193 1,668,193 Excess [deficiency] of revenues over [under] expenditures [24,465] [334,433] [334,433] Other financing sources [uses] Transfers in 160,000 160,000 160,000 Total other financing sources [uses] 160,000 160,000 160,000 Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses] 135,535 [174,433] [174,433] Unreserved fund balance, January 1 1,792,469 1,867,816 1,867,816 Unreserved fund balance, December 31 1,928,004 $ 1,693,383 $ 1,693,383 Reconciliation to GAAP Taxes receivable 305,807 Current year encumbrances 632,092 GAAP Fund Balance, December 31 $ 2,865,903 See independent auditor's report on the financial statements. 24 Variance with Final Budget Positive [Negative] $ 20,332 720,243 [3,000] 737,575 131,385 [558,992] [427,607] 309,968 309,968 [75,347] $ 234,621 Revenues Taxes 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, 2020 Budgeted Amounts Original Final Variance with Final Budget Positive [Negative) Selective sales taxes Miscellaneous $ 8,624,465 $ 8,332,539 $ 8,332,539 $ 246,159 291,926 246,159 Total revenues Expenditures Capital outlay Total expenditures Excess [deficiency] of revenues 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] Unreserved fund balance, January 1 8,870,624 3,666,919 3,666,919 5,203,705 [2,804,350} [2,804,350] 2,399,355 1,666,423 8,332,539 5,050,000 5,050,000 3,282,539 [3,169,350} [3,169,350) 113,189 1,882,941 8,332,539 5,050,000 5,050,000 3,282,539 [3,169,350] [3,169,350] 113,189 1,882,941 538,085 1,383,081 1,383,081 1,921 ,166 365,000 365,000 2,286,166 [216,518} Unreserved fund balance, December 31 Reconciliation to GAAP 4,065,778 $ 1,996,130 $ 1,996,130 $ 2,069,648 Current year encumbrances 1,143,714 GAAP Fund Balance, December 31 $ 5,209,492 See independent auditor's report on the financial statements. 25 CITY OF SALINA, KANSAS STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31, 2020 Business-Type Activities: Ent":!21:ise Funds Total Solid Waste Water and Enterprise Assets and deferred outflows of resources: Diseosal Sewer Sanitation Golf Course Funds Current assets: Cash and investments $ 7,876,671 $ 28,759,645 $2,175,043 $ 64,270 $ 38,875,629 Receivables (net of allowance for uncolleclibles) Accounts 198,287 1,246,160 219,943 1,664,390 Interest 16 16 Inventory and prepaid supplies 390729 ~ 417,947 Total current assets 8 074 974 30,396534 2,394,986 ~ 40.957 982 Capital assets: Nondepreciable capital assets: Construction in progress 1,991,469 25,727,684 256,785 27,975,938 Land 682,000 1,689,334 15,000 2,386,334 Depreciable capital assets: Capital assets 11,313,026 148,639,879 2,564,420 1,253,071 163,770,396 Less: accumulated depreciation 10,651,410 61,953,107 1,560,935 849,597 75,015,049 Total capital assets 3,335,085 114103,790 \003,485 675259 119117,619 Total assets 11,410,059 144,500,324 3,398,471 766,747 160,075,601 Deferred outflows of resources: KPERS OPEB deferred outflows of resources 6,749 33,434 7,745 8,054 55,982 OPEB deferred outflows of resources 2,758 16,409 4,635 995 24,797 Pension deferred outflows of resources 127,859 655,717 151,656 100,587 1,035.819 Total deferred outflows of resources 137 366 705,560 164,036 109,636 1,116,598 Total assets and deferred outflows of resources $11,547,425 $ 145,205,884 $3,562,507 $ 876,383 $161,192,199 Liabilities and deferred inflows of resources: Current liabilities Accounts payable $ 19,524 $ 509,657 $ 25,449 $ 7,523 $ 562,153 Retainage payable 211,528 211,528 Interest payable 38,747 408,301 447,048 Meter deposits payable 285,259 285,259 Current portion of compensated absences payable 19,825 164,516 71,543 17,117 273,001 Current portion of accrued claims payable Current portion of loans payable 375,071 375,071 Current portion of general obligation bonds payable 370,000 690,100 1,060,100 Current portion of revenue bonds payable 750,000 750 000 Total current liabilities 448,096 3,394,432 96,992 24640 3,964160 Noncurrent liabilities: Compensated absences payable 23,333 193,628 84,202 20,147 321,310 Accrued claims payable OPEB obligation 57,567 342,458 96,728 20,761 517,514 KPERS OPEB obligation 23,480 116,322 26,945 28,020 194,767 Net pension liability 469,022 2,498,445 625,434 261,705 3,854,606 Payable from restricted assets Loans payable 35,550,958 35,550,958 General obligation bonds payable 2,055,388 6,718,662 8,774,050 Revenue bonds payable 8,865,000 8,865,000 Landfill post-closure care liabilities 2,300,353 ----2,300,353 Total noncurrent liabilities 4,929,143 54,285,473 833,309 330,633 60,378,558 Total liabilities 5,377,239 57,679,905 930,301 355,273 64342 718 Deferred inflows of resources KPERS OPEB deferred inflows of resources 3,366 16,678 3,864 4,018 27,926 OPEB deferred inflows of resources 5,084 30,240 8,541 1,833 45,698 Pension deferred inflows of resources 24429 103,622 28575 ~ 165,880 Total deferred inflows of resources 32 879 150 540 40980 ~ 239,504 Total liabilities and deferred inflows of resources $ 5,410,118 $ 57,830,445 $ 971,281 $ 370,378 $ 64,582,222 Net position Net investment in capital assets $ 909,697 $ 61,153,999 $1,003,485 $ 675,259 $ 63,742,440 Restricted Restricted for bond retirement 1,175,378 1,175,378 Unrestricted 5,227,610 25,046,062 1,587,741 [169,254) 31,692,159 Total net position $ 6,137,307 $ 87,375,439 $2,591,226 $ 506,005 $ 96,609,977 The notes to the basic financial statements are an integral part of this statement. 26 Internal Service Funds $4,717,659 101,219 4 818 878 168,234 153,963 14271 4,833,149 2,507 47,470 49,977 $4,883,126 $ 45,750 13,919 788,446 848115 16,382 263,049 8,723 187,907 476 061 1,324,176 1,251 8395 9646 $1,333,822 $ 14,271 3,535,033 $3,549,304 CITY OF SALINA, KANSAS STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUNDS For the Year Ended December 31 , 2020 Business-Type Activities: Entererise Funds Solid Waste Water and Dise2sal Sewer Sanitation Golf Course Operating revenues Charges for services $ 3,289,539 $19,448,780 $3,193,904 $ 581,232 Miscellaneous 32,720 55 774 49 357,934 Total operating revenues 3,322,259 19,504,554 3,193,953 939,166 Operating expenses General government Public works 1,858,197 8,916,947 2,364,751 Recreation 761 ,739 Depreciation 152,926 3,543,387 161,378 43 234 Total operating expenses 2,011,123 12,460,334 2,526,129 804,973 Operating income [loss] 1,311,136 7,044,220 667,824 134,193 Nonoperating revenues (expenses] Investment revenue 4,144 Interest expense [44,702] [1,005,565] Accretion of bond premium 89,557 Amortization of bond issuance costs [9,925) Total nonoperating revenues [expenses] [44,702) [921 ,789) Income [loss] before transfers 1,266,434 6,122,431 667,824 134,193 Transfers from [to] other funds Transfers in 100,000 Transfers (out] [2,729,588) 12,005,788) [497,350) Total transfers [2.729,588) [2,005,788) [497,350) 100 000 Change in net position (1,463,154) 4,116,643 170,474 234,193 Net position, January 1 5,640,478 85,218,779 2,420,752 271,812 Prior period adjustment 1,959,983 (1 ,959,983) Net position, January 1, restated 7,600 461 83,258,796 2,420,752 271 ,812 Net position, December 31 $ 6,137,307 $87,375,439 $2,591 ,226 $ 506,005 The notes to the basic financial statements are an integral part of this statement. 27 Total Internal Enterprise Service Funds Funds $ 26,513,455 $ 8,253,233 446 477 42179 26,959,932 8,295,412 7,391,474 13,139,895 761,739 3,900,925 362 17,802,559 7,391 ,836 9,157,373 903,576 4,144 [1,050,267] 89,557 [9,925) 1966,491] 8,190,882 903,576 100,000 80,000 [5,232,726) [5,132,726] 80,000 3,058,156 983 576 93,551 ,821 2,565,728 93,551 ,821 2,565,728 $ 96,609,977 $ 3,549,304 Cash flows from operating activities Cash received from customers and users Cash paid to suppliers of goods or services Cash paid to employees Other operating receipts Net cash provided by (used in] operating activities Cash flows from capital and related financing activities Purchase and construction of capital assets Proceeds from bonds Proceeds from loans Principal payments -loans Principal payments -general obligation bonds Principal payments -revenue bonds Interest paid Net cash provided by (used in] capital and related financing activities Cash flows from investing activities Interest received Cash flows from noncapital financing activities Transfers in Transfers (out) CITY OF SALINA, KANSAS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended December 31 , 2020 Business-Type Activities: Enterense Funds Solid Waste Water and Dise2sal Sewer Sanitation Golf Course $3,289,574 $19,836,614 $3,231 ,339 $ 581,232 [894,526] [4,593,856] [1,412,277] [288,026] [688,626] [3,908,975) [901,478] (468,228] 32,720 55,774 49 357,934 1,739,142 11 ,389,557 917,633 182,912 [31 ,486] [21,561 ,398] [256,785] 2,070,388 4,370,151 18,475,072 (5,088,730] (35,000] [1,414,063) [781 ,015) [11 ,217) [917,878) 1,992,685 [6,917,861} [256,785] 4,144 100,000 [2,729,588) [2,005,788] [497,350) Net cash provided by (used in] noncapital financing activities [2,729,588) 12,005,788) [497,350) 100,000 Net increase [decrease] in cash and cash equivalents 1,002,239 2,470,052 420,283 26,127 Cash and cash equivalents, January 1 6,874,432 26,289,593 1,754 760 38,143 Cash and cash equivalents, December 31 $7,876,671 $28,759,645 $2,175,043 $ 641270 The notes to the basic financial statements are an integral part of this statement. 28 Total Internal Enterprise Service Funds Funds $26,938,759 $8,503,738 [7,188,685] [7,085,946] [5,967,307] [274,765] 446,477 42179 14,229,244 1,185,206 [21 ,849,669] 6,440,539 18,475,072 [5,088,730) [1,449,063) [781,015] [929,095) [5,181 ,961 ] 4,144 100,000 80,000 [5,232,726) [5,1 32,726] 80,000 3,918,701 1,265,206 34,956,928 3,452,453 $ 38,875,629 $4,717,659 CITY OF SALINA, KANSAS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS (Continued) For the Year Ended December 31, 2020 Business-Type Activities: Enterprise Funds Solid Waste Water and Total Internal Enterprise Disposal Sewer Sanitation Golf Course Funds Service Funds Reconciliation of operating [loss] income to net cash provided by [used in] operating activities Operating income [loss] $1,311,136 $ 7,044,220 $ 667,624 $ 134,193 Adjustments to reconcile operating income [loss] to net cash provided by [used in] operating activities Depreciation expense 152,926 3,543,387 161,378 43,234 [Increase] decrease in accounts receivable 35 332,022 37,435 [Increase] decrease in inventory 48,494 11,203 [Increase] decrease in deferred outflows [70,780] [344,505] [80,102] [85,115] Increase [decrease] in accounts payable [6,918] 121,544 [3,711] 3,044 Increase [decrease] in retainage payable 58,119 Increase [decrease] in accrued compensated absences [6,276] [17,252] 7,760 [46,560] Increase [decrease] in claims payable Increase (decrease] in net pension liability 85,168 421,937 97,737 101,638 Increase [decrease] in net KPERS OPEB obligation 8,288 9,979 1,625 17,892 Increase [decrease] in net OPEB obligation 8,891 91 ,333 21,418 [1,808] Increase [decrease] in meter deposits payable 55,812 Increase [decrease] in deferred inflows 5 215 24467 6,269 5,191 Net cash provided by [used in] operating activities $ 1,739,142 $ 11 ,389,557 $ 917,633 $ 182,912 The notes to the basic financial statements are an integral part of this statement. 29 $ 9,157,373 $ 903,576 3,900,925 362 369,492 59,697 26,673 [580,502] [24,376] 113,959 [660] 58,119 [62,328] [1,145] 250,505 706,480 31 ,639 37,784 [1 ,405] 119,834 55,812 41 ,142 37 $14,229,244 $ 1,185,206 ASSETS CITY OF SALINA, KANSAS STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS December 31, 2020 Cash and investments Total assets LIABILITIES AND NET POSITION Liabilities Accounts payable Total liabilities NET POSITION Restricted for individuals, organizations and other governments The notes to the basic financial statements are an integral part of this statement. 30 $ $ Custodial Fund 751 751 751 ADDITIONS Miscellaneous Total additions DEDUCTIONS Contractual services Total deductions Change in net position CITY OF SALINA, KANSAS STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS December 31 , 2020 Net position, January 1 Net position, December 31 The notes to the basic financial statements are an integral part of this statement. 31 $ $ Custodial Fund 7 314 7,314 5,551 5,551 1,763 [1,012} 751 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 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 a five-member commission. These financial statements present the City and its component units, entities for which the government is considered to be financially accountable. Each discretely presented component unit is 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 Defense in June 1965. One of the primary functions of the Airport Authority is to facilitate the continued growth of jobs and payroll at the Airport Industrial Center. The Airport Authority is managed and controlled by a five- member Board of Directors appointed by the Salina City Commission. Any director may be removed by a majority vote of the Salina City Commission. The Airport Authority's basic mill levy (up to 3 mills) requires the approval of the City Commission. 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 the Housing Authority is essentially supported by the operating and debt service subsidies received under 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, 2020. Blended Component Unit Salina Field House Qualified Active Low-Income Community Business, Inc. (SFH QalicB) -SFH QalicB was created to function as 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 tournaments with the anticipation of becoming a regional destination for youth athletics. This mix of participation is expected to provide the most consistent visitation and tourism for the downtown district. The SFH QalicB is managed and controlled by a five-member Board of Directors appointed by the Salina City Commission. The field house is staffed by City of Salina employees. SFH QalicB has a December 31 fiscal year end. SFH QalicB is a not-for-profit organization exempt from income tax under Section 50l(c)(3) of the 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 entity's administrative offices. Salina Airport Authority 3237 Arnold Ave. Salina, KS Joint Ventures Housing Authority of the City of Salina 469S. 5th Salina, KS Salina Field House QALICB, Inc. 300 W. Ast St. Salina, KS 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 the joint venture. Separate financial statements are available from the governing board of the joint venture. 32 CITY OF SAUNA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) A. Reporting Entity (Continued) Joint Ventures (Continued) Total unencumbered cash, December 31, 2020 Total change in unencumbered cash, year ended December 31, 2020 Total cash receipts, year ended December 31, 2020 Total cash receipts from City of Salina (Kansas Regulatory Basis) Building Authority (Audited) $ 1,928,199 331,741 1,636,400 502,042 Complete financial statements for the joint venture may be obtained at the entity's administrative office. Salina County-City Building Authority 300 West Ash Street Salina, KS B. Government-wide and fund financial statements The statement of net position and 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 between the City's 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 supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially 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 reported as separate columns in the fund financial statements. Nonmajor funds are aggregated and presented 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 are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. 33 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 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 and the modified accrual basis of accounting. Revenues are recognized as soon as they 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 a liability 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 revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria are met. Expenditure- driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met. 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 fund's ongoing operations. The principal operating revenues of the City's proprietary funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost ofsales and services, administrative expenses, and depreciation on capital assets. All revenue and expenses not meeting this definition are reported as nonoperating revenues and expenses. The internal service funds account for risk management, worker's compensation, health insurance, central garage and information services that are provided to other departments or agencies of the government, or to other governments, on a cost-reimbursement basis. The fiduciary funds are used by the City to accounts for resources held by the City for the benefit of a third part. Because the resources of these funds are not available for the City's operations, they are not presented in the government-wide financial statements. The City's lone fiduciary fund is reported as a custodial fund. The City reports the following major governmental funds: General Fund -To account for resources traditionally associated with government, which are not required legally, or by sound financial management, to be accounted for in another fund. 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 1.25 cent 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. 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. 34 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued) 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 the following 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. Additionally, the City reports the following as a fiduciary fund: Fire insurance proceeds fund -To account for insurance proceeds received for severely damaged buildings the insurance proceeds, plus interest, are returned to the property owners when the buildings are repaired or demolished. 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 fund type's portion of this pool is displayed in the financial statements as "Cash and Investments." The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. Investments in the Kansas Municipal Pool are carried at 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 of the year are referred to as either "interfund receivables/payables" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Accounts Receivable. The City records revenues when services are provided. All receivables are shown net of an allowance for 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 2021. 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. 35 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 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 10 of 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 draws down all available funds from the County Treasurer's office in two-month intervals. Taxes remaining 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. Capital Assets Capital assets, 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. Capital assets 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. Capital assets used in governmental fund types of the City are recorded at cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at their estimated fair value at the 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: Assets Buildings Other equipment Vehicles Infrastructure 36 Years 50 5-15 6 -10 30-50 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31 , 2020 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Fund Balance, and Net Position (Continued) 5. Compensated Absences It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All employees of the City, except temporary and part time employees, may accumulate sick leave at a rate of 8 or 11 hours per month depending on their work duty schedule. There is no limit on the amount of sick leave 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 and an employee's maximum accrued vacation leave balance cannot exceed 250 hours (or 350 hours for employees working 24-hour shifts). Employees are paid for all accumulated vacation leave at their current wage scale upon termination of employment. Vested or accumulated vacation leave that is expected to be liquidated with expendable available financial resources is reported as an expenditure and a fund liability in the 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 are recorded as an expense and 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 ofbonds 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 premium or 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. 37 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Fund Balance, and Net Position (Continued) 8. Fund Balances 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 either not 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, granters, 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 management's intent to be used for specific purposes but are neither restricted nor committed. Unassigned 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. 'M'len an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available restricted amounts are considered to be spent first. 'M'len 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: Fund Balances: Nonspendable for: lmentor; Restricted for: Public works Public health and sanitation Culture and recreation Planning and de.elopment Debt payments Committed for: Public safety CultLre and recreation Planr'ing and de1elopment Cemetety Capital impro;ements Assigned for: General g01emment Public safety Public works Culture and recreation Capital impro.ements Unassigned: Total Fllld Balances $ General 183,768 20,863 37,672 12,695 Tourism and Comention $ $ 326,862 M~r Go\elTYllental Funds Schilling Special Sales Tax Capita! Gas ~ rnprOleffient $ $ 2,233,811 4,005,778 1,493,977 173,204 632,092 1,143,714 Debt Ser.ice $ 1,724,117 14,714,061 -------------- $15,142,263 $326,862 $2,865,003 ~ $1,493,977 $1,724,117 38 Other Total Capital SFH Go\elTYllental Go.emmental Projects QalicB Funds $ $ $ 234 465,773 228,706 800 214,419 734,724 1,560,626 364,668 536,838 4,254,020 176,649 12,610 [4,027,807] $(4,027,807] ~ $ 6,989,441 Funds $ 183,768 2,233,811 234 465,773 555,568 1,724,917 214,419 734,724 1,925,294 536,838 9,813,775 20,863 214,321 25,305 1,949,010 10,686,254 $31,284,874 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 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 that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City reports a deferred charge on bond issuance reported in the government-wide statement of net position. A deferred charge on bond issuance results 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 addition to 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. Unavailable revenue-properly taxes 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 liability and OPEB plan proportion are reported as deferred inflows. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. 1 O. 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 position represents the difference between assets and liabilities. Net investment in capital assets consists 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 position is reported 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. 39 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 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 budget must be published in the local newspaper. At least ten days after publication the hearing may be held and the governing body may amend the budget at that time. The 2020 budget was amended for the Business Improvement District, Bicentennial Center and Sanitation 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 are prepared using the statutory basis of accounting, in which, revenues are recognized when cash is received, and expenditures include disbursements, accounts payable, and encumbrances. Encumbrances are commitments by the municipality for future payments and are supported by a document evidencing the commitment, such as a purchase order or contract. All unencumbered appropriations (legal budget expenditure authority) lapse at year end. A legal operating budget is not required for capital projects funds, the SFH QalicB fund, non-major debt service funds, trust funds, permanent funds, and the following special revenue funds: Community Development Revolving, Downtown TIF District #1, South 9th CID, Downtown CID, Alley CID, Downtown Hotel CID, STAR Bonds Subprojects, State Grants, 911 Communications, Kenwood Cove Capital, Special Law Enforcement, Police Grants, Federal Grants, DARE Donations, War Memorial Maintenance, Federal CARE Grant, Police Department Federal Forfeiture, Homeowners' Assistance, Private Grants, Animal Shelter Donations, Special Assessments Escrow, Court Bond and Restitution, Police Investigation Account, Citizenship, DTF Local, DTF Reserve, Beechcraft Remediation Settlement and Bail Bond Escrow funds. A legal operating budget is not required for Internal Service Funds, however, actual to budget comparisons for these funds that present budgets to the Commissioners are shown strictly for informational purposes. Spending in funds, which are not subject to the legal annual operating budget requirements are controlled by federal regulations, other statutes, or by the use of internal spending limits established by the governing body. 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 and special assessment bonds) the city may have outstanding to 30 percent of the assessed value of all tangible taxable property within the city, as certified to the county clerk on the proceeding August 25. At December 31, 2020, the statutory limit for the City was $152,746,389, providing a debt margin of $86,997,826. 40 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 3. RESTATEMENT OF EQUITY Note 4. A. During the year ended December 31, 2020, the City implemented GASS Statement No. 84, Fiduciary Activities. The principal objective of this Statement is to enhance the consistency and comparability of fiduciary activity reporting by state and local governments. This Statement is also intended to improve the usefulness of fiduciary activity information primarily for assessing the accountability of governments in their roles as fiduciaries. As a result of the implementation, ten of the City's fiduciary funds combined with the General Fund or were reclassified as special revenue funds and their fund balances as of January 1, 2019, were restated. Also during the year ended December 31, 2020, 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: Other Solid Gowrnmental Gowrnmental Waste Water and Activities General Funds Diseosal Sewer Net Position/Fund Balance, $138,358,514 $9,307,174 $ 4,670,517 $5,640,478 $85,218,779 December 31 , 2019 Prior Period Adjustment [9,303,272] 196,236 425,644 1,959,983 [1,959,983] Net Position/Fund Balance, December 31, 2019, Restated $129,055,242 $9,503,410 $ 5,096,161 $7,600,461 $83,258,796 DETAILED NOTES ON ALL FUNDS Deposits and Investments The City's cash is considered to be active funds by management and is invested according to KSA 9-1401. 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 its idle funds in only temporary 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 notes or the Municipal Investment Pool (KMIP). Maturities of the above investments may not exceed two years by statute. Some of the City's investments are of bond proceeds invested pursuant to KSA 10-131 . This statute allows 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 in either of the three highest rating categories by Moody's investors service or Standard and Poor's corporation, and various other investments as specified in KSA 10-131. At December 31, 2020, the City has the following investments: Investment Type Kansas Municipal lmestment Pool Total fair value 41 Fair Value Rating $ 318,077 S&P AAAf/S1+ $ 318,077 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) A Deposits and Investments (Continued) 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. The City's investment policy provides direction on concentration risk. The City policy states that funds shall be diversified to reduce the extent of losses due to having an unbalanced portfolio in terms of maturities, instrument type, and issuers. Therefore, portfolio maturities shall be staggered to 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 are adequately 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 recognizes that 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. Custodial credit risk is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The City's deposit policy for custodial credit risk require that the depository banks will maintain 100% security in the form of FDIC coverage and pledged collateral according to KSA 9-1402. As of December 31 , 2020 the City's deposits were considered fully secured. Restricted cash is comprised of a construction account, an interest reserve account (the "Interest Reserve"), and an expense reserve account (the "Operating Reserve") related to the SFH QalicB blended component unit. The Interest Reserve and the Operating Reserve accounts are available as part of the loans payable financing (see Note 4E). As of December 31 , 2020, the balance of the construction account, Interest Reserve, and Operating Reserve was $0, $208,864, and $126,633, respectively. 42 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 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: Primary Go-.emment Receivables: Accounts Taxes Interest General $ 7,642,984 10,934,927 10,391 18,588,302 Tourism and Special Con-.ention Gas $ 326,008 $ - 305,807 326,008 305,807 Debt SFH Other Ser.ice QalicB Go1emmental Subtotal $ -$1,235,034 $ 11,365 $ 9,215,391 3,121,345 14,362,079 10,391 3,121,345 1,235,034 11,365 23,587,861 Gross receivables Less: allowance for uncollectibles Total [6,055,545] ----[8,078] [6,063,623) $12,532,757 $ 326,008 $305,807 $3,121,345 $1,235,034 _s ____ 3,_2B_7 $17,524,238 Primary Government Receivables: Accounts Taxes Interest Gross receivables Less: allowance for uncolleclibles Total Component Units Salina Airport Authority Accounts Grants Less: allowance for uncollectibles Total Salina Airport Authority Salina Housing Authority Accounts Less: allowance for uncollectibles Total Salina Housing Authority Total C. lnterfund Receivables and Payables Solid Waste Disposal Water and Sewer Sanitation Total $ 198,287 $2,146,899 $ 368,051 $11,928,628 14,362,079 ___ 1_6 ---------10,407 198,303 2, 146,899 368,051 26,301,114 [900,739) (148, 108) (7,112,470) $ 198,303 $1,246,160 $ 219,943 $19,188,644 $ 99,749 750,000 (1,500) 848,249 27,872 [2,592) 25,280 $ 873,529 The composition of interfund balances as of December 31, 2020, is as follows: Fund Types Due From Due To General Fund $ 31,989 $ Other Go\ernmental Funds 31,989 $ 31,989 $ 31,989 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. 43 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) D. Capital Assets Capital asset activity for the year ended December 31 , 2020, was as follows: Balance .Adj. Bal. 12/31/2019 Adjustments 12/31/2019 Additions City governmental activities : Governmental actil<ities: Capital assets, not being depreciated Construction in progress $ 45,227,729 $ [9,925,152] $ 35,302,577 $ 8,686,394 Land 24,223,535 24,223,535 Leased land under capital lease 422,799 422,799 Capital assets, being depreciated Infrastructure 208,508,810 208,508,810 17,767,814 Buildings and improvements 53,158,946 53,158,946 Vehicles 10,224,294 10,224,294 453,480 Equipment, furniture and fildures 7,279,276 7,279,276 210,441 Leasehold improvements 357,383 357,383 Total capital assets 349,402,772 [9,925,152] 339,477,620 27,118,129 Less accumulated depreciation for: Infrastructure 92,244,865 92,244,865 4,021,671 Buildings and improvements 22,602,874 22,602,874 1,337,773 Vehicles 7,370,391 7,370,391 597,748 Equipment, furniture and fildures 4,926,799 4,926,799 252,747 Total accumulated depreciation 127,144,929 127,144,929 6,209,939 Governmental actil<ities capital assets, net $ 222,257,843 $ [9,925,152) $212,332,691 $20,908,190 Business-type actil<ities : Capital assets, not being depreciated Construction in progress $ 7,526,968 $ -$ 7,526,968 $21,925,306 Land 2,386,334 2,386,334 Capital assets, being depreciated Infrastructure 130,167,335 130,167,335 1,476,335 Buildings and improvements 22,579,936 22,579,936 Vehicles 3,863,039 3,863,039 Equipment, furniture and fil<lures 5,751 ,603 5,751,603 13,921 Total capital assets 172,275,215 172,275,215 23,415,562 Less accumulated depreciation for: Infrastructure 50,343,716 50,343,716 3,006,824 Buildings and improvements 14,060,793 14,060,793 415,804 Vehicles 2,575,294 2,575,294 208,311 Equipment, furniture and fil<lures 4,216,095 4,216,095 269,983 Total accumulated depreciation 71,195,898 71 ,195,898 3,900,922 Business-type actil<ities capital assets, net $101,079,317 $ -$101,079,317 $19,514,640 44 Balance Retirements 12/31/2020 $17,767,814 $ 26,221,157 24,223,535 422,799 226,276,624 53,158,946 508,250 10,169,524 5,275 7,484,442 357,383 18,281,339 348,314,410 96,266,536 23,940,647 474,017 7,494,122 4,575 5,174,971 478,592 132,876,276 $17,802,747 $215,438,134 $ 1,476,335 $ 27,975,939 2,386,334 131,643,670 22,579,936 81 ,772 3,781 ,267 5,765,524 1,558,107 194,132,670 53,350,540 14,476,597 81,772 2,701,833 4,486,078 81,772 75,015,048 $ 1,476,335 $119,117,622 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) D. Capital Assets (Continued) The City's depreciation expense was charged to governmental functions as follows: E. Long-Term Debt · Go1emmental Acthnties: General go1ernment $ 59,708 596,885 4,391,637 31,110 797,125 333,474 Public safety Public works Public health Culture and recreation Planning and development Total depreciation $ --===== 6,209,939 Business-type Actil,ities: Solid Waste Disposal $ 152,926 Water and Sewer 3,543,385 Sanitation 161,378 Golf Course Division 43,233 Total depreciation $ 3,900,922 ---------- Following is a summary of changes in long-term debt for fiscal year 2020: Balance January 1, 2020 Additions Deletions Governrnental activities: General obligation bonds $ 57,623,908 $ 8,053,404 $ 6,346,331 Loans payable 12,199,016 13,963 OPEB liability 3,121 ,647 437,137 461,244 KPERS OPEB liability 349,412 54,788 1,523 Net pension liability 28,968,806 5,602,584 Accrued corrpensation 2,786,077 1,149,819 1,238,890 Terrporary notes 11,170,000 7,050,000 11,170,000 Total $116,218,866 $22,361,695 $19,217,988 Business-type activities: General obligation bonds $ 4,116,515 $ 6,440,539 $ 1,449,064 Revenue bonds 11,122,175 781,015 Loans payable 22,539,686 18,475,071 5,088,730 OPEB liability 397,680 179,164 59,330 KPERS OPEB liability 156,983 38,520 736 Net pension liability 3,148,126 706,480 Accrued corrpensation 656,639 210,673 273,001 Total $ 42,137,804 $26,050,447 $ 7,651,876 Corrponent Units: General obligation bonds $ 22,425,000 $ 2,100,000 $ 1,425,000 Less unam:Jrtized discount [17,703] [861] Lease purchase agreement 460,000 Special assessment debt 4 ,805 2,350 KPERS OPEB obligation 13,338 586 Net pension liability 632,856 82,814 Total corrponent units $ 23,058,296 $ 2,643,400 $ 1,426,489 45 Balance Decerrtler 31, 2020 $ 59,330,981 12,212,979 3,097,540 402,677 34,571,390 2,697,006 7,050,000 $119,362,573 $ 9,107,990 10,341,160 35,926,027 517,514 194,767 3,854,606 594,311 $ 60,536,375 $ 23,100,000 [18,564] [18,564] 2,455 13,924 715,670 $ 23,794,921 Arn>unts D.Je Within One Year $ 4,699,145 1,238,890 7,050,000 $12,988,035 $ 1,118,207 816,015 375,071 273,001 $ 2,582,294 $ 3,730,000 39,942 2,455 $ 3,772,397 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31 , 2020 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) E. Long-Term Debt (Continued) The following is a detailed listing of the City's long-term debt induding general obligation bonds, revenue bonds, temporary notes and loans payable: Primary Government Original Interest Bonds General Obligation Bonds Issue Rates Outstanding Internal lmpro\ements 2011A, due 10/1/2031 $ 6,587,985 2.00% to 5.00% $ 376,151 Internal lmpro\ements 2013A, due 10/1/28 1,369,380 3.00% to 4.00% 820,005 Internal lmpro\ements 20138, due 10/1/33 4,485,073 0.60% to 3.65% 2,760,796 Internal lmpro\ements 2014A, due 10/1/34 7,839,050 2. 50% to 3. 75% 4,493,337 lmpro\ement and Refunding 2015A, due 10/1/35 7,157,688 2.00% to 4.00% 5,409,518 Internal lmpro\elllents 2016A, due 10/1/36 6,681,766 2. 00% to 3. 00% 5,594,414 Refunding 20168, due 10/1/2031 15,141,004 2.00% to 5.00% 12,877,933 Internal lmpro-..ements 2017A, due 10/1/37 9,388,370 3. 00% to 3. 375% 8,416,616 Internal lmpro-..ements 2018A, due 10/1/33 2,090,000 3.15% to 4.00% 1,925,524 Internal lmpro\ements 2019A, due 10/1/39 11,090,000 3.00% to 4.00% 11,270,734 Internal lmpro\ements 2020A, due 10/1/35 5,450,610 2.00% to 3.00% 5,450,610 Internal lmpro\ements 20208, due 10/1/36 9,043,333 2.00% to 3.00% 9,043,333 Total general obligation bonds $ 68,438,971 Re-.enue Bonds Re-.enue & Refunding 2019, due 10/1/31 $11,122,175 3.00% $ 10,341,160 Total re-.enue bonds $10,341,160 Temporary Notes Series 2020-1, due 5/1/21 $ 7,050,000 1.00% $ 7,050,000 Total temporary notes $ 7,050,000 Loans Payable Kansas Public Water Supply, due 8/1/34 $ 9,330,000 2.12% $ 6,044,214 Kansas Public Water Supply, due 2/1/40 32,000,000 2.33% 25,397,675 Kansas Public Water Supply, due 2/1/40 4,250,000 2.33% 3,387,022 Kansas Water Pollution Control, due 3/1/35 2,250,000 2.54% 1,097,118 Dakotas & CNMC Notes, due 12/10/50 12,640,000 1.58% 12,212,979 Total loans payable $48,139,008 46 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) E. Long-Term Debt (Continued) Component Unit Salina Airport Authority General Obligation Debt General Obligation 2015A, due 2025 General Obligation 2017A, due 2030 General Obligation 20178, due 2025 General Obligation 2019A, due 2029 General Obligation 20198, due 2023 General Obligation Temporary Notes 2019-1, due 2021 General Obligation Temporary Notes 2020-1, due 2023 Less unamortized bond premium Less unamortized bond discount Total general obligation bonds Taxable Lease Purchase Agreement Bldg. 824 Capital Lease, due 2030 Total taxable lease purchase agreement Special Assessment Debt Hangar 600 Sanitary Sewer, due 2021 Total special assessment debt Total Original Issue $3,075,000 10,255,000 4,835,000 675,000 3,455,000 2,250,000 2,100,000 27,599 Interest Rates 2.67% 3.04% 3.02% 2.78% 2.92% 2.50% 0.48% 4.47% Bonds Outstanding $ 600,000 10,010,000 4,760,000 615,000 2,765,000 2,250,000 2,100,000 23,116 [41,680] 23,081,436 460,000 460,000 2,455 2,455 $23,543,891 Annual debt service requirements to maturity for general obligation bonds to be paid with tax levies: General Obligation -Primary Government Bonds Interest Year Outstanding Due Total 2021 $ 5,809,970 $ 2,023,189 $ 7,833,159 2022 5,968,819 1,803,571 7,772,390 2023 5,838,819 1,589,204 7,428,023 2024 5,643,103 1,379,557 7,022,660 2025 5,338,103 1,233,432 6,571 ,535 2026-2030 20,230,297 4,273,047 24,503,344 2031-2035 14,929,360 1,876,027 16,805,387 2036-2039 4,680,500 285,393 4,965,893 47 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) E. Long-Term Debt (Continued) General Obligation -Component Units Bonds Interest Year Outstanding Due Total 2021 $ 3,730,000 $ 615,917 $ 4,345,917 2022 1,525,000 518,748 2,043,748 2023 3,665,000 478,020 4,143,020 2024 1,615,000 424,235 2,039,235 2025 1,660,000 381,540 2,041,540 2026 -2030 8,995,000 1,145,810 10,140,810 2031 1,910,000 57,300 1,967,300 Total $ 23,100,000 $ 3,621,570 $ 26,721,570 Annual debt service requirements to maturity for revenue bonds to be paid with utility revenues: Rewnue Bonds -Primary Government Bonds Interest Year Outstanding Due Total 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 911,015 194,250 1,105,265 2026-2030 4,955,071 575,400 5,530,471 2031 1,071,014 30,150 1,101,164 Annual debt service requirements to maturity for temporary notes -to be paid through the issuance of general obligation bonds: Year 2021 Temporary Notes -Primary GO\,ernment Notes Interest Outstanding Due Total $ 7,050,000 $ 70,892 $ 7,120,892 ----- 48 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 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 G01.ernment Loans Interest Year Outstanding Due Total 2021 $ 375,071 $ 126,159 501,230 2022 383,064 118,166 501,230 2023 391,228 110,002 501 ,230 2024 399,566 101,664 501 ,230 2025 408,082 93,148 501,230 2026-2030 2,174,635 331,515 2,506,150 2031-2034 1,912,568 92,358 2,004,926 Total $ 6,044,214 $ 973,012 $ 7,017,226 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, was provided to SFH QalicB by Dakotas XX.II, LLC. Interest accrues on the unpaid principal balance at an interest rate of 1.582625% with annual interest-only payments due, partially in arrears and partially in advance, on the tenth day of each December 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, 2016, and continuing through the maturity date, annual payments of principal and interest in an amount equal to $293,276 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 , 2020, 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, was provided to the SFH QalicB by Dakotas XX.II, LLC. Interest accrues on the unpaid principal balance at an interest rate of 1.582625% with annual interest-only payments due, partially in arrears and partially in advance, on the tenth day of each December 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, 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, 2020, the note balance was $2,623,500. 49 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) E. Long-Term Debt (Continued) CNMC Note A -On July 27, 2016, a $2,674,000 promissory note with a maturity date of December 10, 2050, was provided to the SFH QalicB by 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 and partially in advance, on the tenth day of each December 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, 2026, and continuing through the 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 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, 2020, the note balance was $2,674,000. CNMC Note B-On July 27, 2016, a $1 ,326,000 promissory note with a maturity date of December 10, 2050, was provided to the SFH QalicB by 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 and partially in advance, on the tenth day of each December 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, 2026, and continuing through the maturity date, annual payments of principal and interest in an amount equal to $64,636 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, 2020, the note balance was $1,326,000. As of December 31 , 2020, the principal balance of these four loans, net of $427,021 of unamortized debt issuance costs, was $12,212,979 Annual debt service requirement to maturity for Special Assessment Debt to be paid from rental revenue: Special Assessment Debt -Component Units Assessment Interest Year Outstanding Due Total 2020 $ 2,455 $ 110 $ 2,565 Total $ 2,455 $ 110 $ 2,565 50 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) E. Long-Term Debt (Continued) Special assessments. As provided by Kansas statutes, projects financed in part by special assessments are financed through general obligation bonds of the City and are retired from the debt service fund. Special assessments paid prior to the issuance of bonds are recorded as revenue in the appropriate project. Special assessments received after the issuance of bonds are recorded as revenue in the debt service fund. The special assessments 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. Premises lease. On July 27, 2016, SFH QalicB entered into a lease agreement 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 Net Lease agreement. For the year ended December 31, 2020, SFH QalicB earned $492,917 of rental income under the terms of the Net Lease. As of December 31, 2020, rental income of $94,825 remained receivable from the City. 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, 2020: Premises Leases between QalicB anc 2021 $ 130,000 2022 130, 000 2023 162, 500 2024 227,500 2025 227,500 Thereafter 13,325,000 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 tax and Revenue (STAR) Bonds. ST AR 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 ST AR bond projects constructed within a ST AR bond project district. To implement STAR bond financing, a local government must adopt a resolution that specifies a proposed STAR bond project district's boundary and describes the overall district plan, hold a public hearing on 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 ST AR bond district. In accordance with the ST AR 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 ST AR bonds. 51 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 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 proportionally by the City of Salina and the State of Kansas, based on each entity's 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 Ordinance 16-10856 adopting the STAR Bond Project Plan. On December 1, 2018, the City of Salina issued $18,250,000 in Senior Special Obligation Revenue Bonds (Series 2018-A) and $4,320,000 in Subordinate Special Obligation Revenue Bonds (Series 2018-8). As of December 31, 2020, 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 City and Saline County jointly entered into a non-cancelable lease to finance a $2,750,000 heating, ventilation and air conditioning (HVAC) upgrade at the Saline County-City Building Authority. The City's share of the lease agreement is 40% and will pay 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 $93,926 for the year ended December 31, 2020. The future minimum lease payments for the lease are as follows: G. lnterfund Transfers Year 2021 2022 2023 2024 2025 2026-2027 Total principal and interest Less: interest Amount $ 93,926 93,926 93,926 93,926 93,926 187,853 657,483 [73,758) Total principal $ 583,725 A reconciliation of interfund transfers follows: Transfer In Transfer Out Major Funds: General $ 4,366,550 $ 877,000 Tourism and Com,ention 589,251 Special Gas 160,000 Sales Tax Capital 2,804,350 Debt Service 1,629,188 Capital Projects 20,845,460 Other governmental funds 1,241,413 Solid Waste Disposal 2,729,588 Water and Sewer 4,126,717 25,051 ,789 Sanitation 497,350 Golf Course 100,000 Central Garage 80,000 Total transfers $32,549,328 $32,549,328 The City uses interfund transfers to share administrative costs between funds. 52 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 5. OTHER INFORMATION A. Defined Benefit Pension Plan Description of Pension Plan. The City participates 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: o State/School employees o 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 City are included in the Local employees group 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 credited service, or whenever a member's combined age and 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 as established by K.S.A. 74- 4922. Members choose one of seven payment options for their monthly retirement benefits. At retirement a member may receive a lumirsum payment of up to 50% of the actuarial present value of the member's lifetime benefit. 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. 53 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 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. 7 4-4921. 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 the fiscal year ended June 30, 2020. The actuarially determined employer contribution rates (not including the 1.00% contribution rate for the Death and Disability Program) and the statutory contribution rate was 8.61 % for KPERS and 21.93% for KP&F for the year ended December 31, 2020. Member contribution rates as a percentage of eligible compensation for the fiscal year 2020 are 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. The allocation percentages for the City's share of the collective pension amounts as of December 31, 2020, are based 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, 2020. The contributions used exclude contributions made for prior service, excess benefits and irregular payments. At June 30, 2020, the City's proportion for the Local employees group was 0.767%, which was a decrease of .003% from its proportion measured at June 30, 2019. At June 30, 2020, the City's proportion for the Police and Firemen group was 2.038%, which was a decrease of .036% from its proportion measured at June 30, 2019. Net Pension Liability. At December 31 , 2020 and 2019, the City and its component units reported a liability of $39,533,871 and $32,116,932, respectively, for its total proportionate share of the net pension liability for the Local and Police and Firemen groups. 54 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 5. OTHER INFORMATION (Continued) A. Defined Benefit Pension Plan (Continued) Actuarial Assumptions. The total pension liability was determined by an actuarial valuation as of December 31, 2019, which was rolled forward to June 30, 2020, using the following actuarial assumptions: Assumptions Rate Price inflation 2. 75% Wage inflation 3.25% Salary increases, including wage increases 3.25% to 11. 75% including inflation Long-term rate of return, net of im.estment expense, and including price inflation 7.50% 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-2016. The actuarial assumptions used in the December 31 , 2019 valuation were based on the results of an actuarial experience study conducted for the period of January 1, 2016, through December 31, 2018. The experience study is dated January 7, 2020. 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 for each major asset class included in the pension plan's target asset allocation as of June 30, 2020 are summarized in the following table: Asset US Equities Non-US Equities Private Equity Private Real Estate Yield Dri\en Real Return Fixed Income Short Tenn ln-.estments Long-Tenn Expected Long-Tem1 Allocation Real Rate of Return 23.50% 23.50% 8.00% 11.00% 8.00% 11.00% 11.00% 4.00% 100.00% 5.20% 6.40% 9.50% 4.45% 4.70% 3.25% 1.55% 0.25% Discount Rate. The discount rate used to measure the total pension liability was 7.50%. 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 by the System's Board of Trustees for these groups may not increase by more than the statutory cap. The 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 pension plan's fiduciary net position was projected to be available to make all projected future benefit 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. 55 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS D~cember 31, 2020 Note 5. OTHER INFORMATION (Continued) A Defined Benefit Pension Plan (Continued) Sensitivity of the City's proportionate share of the net pension liability to changes in the discount rate. The following presents the City's proportionate share of the net pension liability calculated using the discount rate of 7.50%, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower (6.50%) or 1-percentage point higher (8.50%) than the current rate: Local Police & Firemen Total 1% Decrease (6.50%) $ 20,189,679 34,403,134 Discount Rate (7.50%) 1% Increase (8.50%) $ 14,325,796 $ 9,396,471 251135, 770 17,396,196 $ 54,592,813 $ 39,461,566 $ 26,792,667 ====--==== Pension Expense. For the year ended December 31, 2020, the City recognized Local pension expense of $1,156,925 and Police and Firemen pension expense of $2,405,832, 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 Authority's and Salina Airport Authority's portion of the Local pension expense were $35,958 and $89,795, respectively. Deferred Outflows of Resources and Deferred Inflows of Resources. At December 31, 2020, the City and its component units reported deferred outflows of resources and deferred inflows of resources related to pensions for Local and Police and Firemen groups from the following sources: 56 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 5. OTHER INFORMATION (Continued) A. Defined Benefit Pension Plan (Continued) Local Differences between actual and expected experience Net differences between projected and actual earnings on im.estments Changes in assumptions Changes in proportion Total Police & Firemen Differences between actual and expected experience Net differences between projected and actual earnings on im.estments Changes in assumptions Changes in proportion Total Deferred outflows of resources $ 221,907 1,550,639 800,513 232,177 $ 2,805,236 Deferred outflows of resources $ 734,702 2,442,541 1,739,968 21,294 $ 4,938,505 Deferred inflows of resources $ 170,863 449,541 $ 620,404 Deferred inflows of resources $ 729,307 $ 729,307 Housing Authority Deferred outflows Deferred inflows Local Differences between actual and expected experience Net differences between projected and actual earnings on investments Changes in assumptions Changes in proportion $ of resources 700 7,527 s,m 484 of resources $ 8,056 648 12,327 Total $ 18,488 $ 21,031 Local Differences between actual and expected experience Net differences between projected and actual earnings on investments Changes in assumptions Changes in proportion Total -===~-- Airport Authority Deferred outflows Deferred inflows of resources of resources $ 11,950 $ 9,201 83,501 43,107 40,138 49,264 $ 178,696 $ 58,465 $1,763,259 reported 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, 2021 . Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Yearended December 31 , 2021 2022 2023 2024 2025 Total Local Deferred Police & Firemen Deferred [Inflows] Outflows [Inflows] Outflows $ $ Amount 498,387 $ 586,306 578,511 507,037 14,591 2,184,832 $ 57 Amount 1,058,828 $ 1,155,904 1,086,067 877,263 31,136 4,209,198 $ Total 1,557,215 1,742,210 1,664,578 1,384,300 45,727 6,394,030 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 5. OTHER INFORMATION (Continued) A. Defined Benefit Pension Plan (Continued) $38,910 and $35,467 reported as deferred outflows of resources related to pensions resulting from Salina Housing Authority 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 , 2021. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Housing Authority Deferred Airport Authority Deferred Year ended [Inflows) Outflows [Inflows] Outflows December 31 , 2021 2022 2023 2024 2025 Total B. Deferred Compensation Plan $ $ Amount 5,237 $ [6,228) (879) (366) (307] [2,543] $ Amount 30,148 $ 38,269 30,520 21 ,279 15 120,231 $ Total 35,385 32,041 29,641 20,913 (292) 117,688 The City offers its employees a deferred compensation plan ("Plan") created in accordance with Internal Revenue Code Section 457. The Plan, available to all City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. Plan assets are 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.RC. Section 125) The City Commission has adopted by resolution a salary reduction flexible benefit plan ("Plan") under Section 125 of the Internal Revenue Code. All City employees working more than 20 hours per week are eligible to participate in the Plan beginning after two full months of employment. Each participant may elect to reduce his or her salary to purchase benefits offered through the Plan. Benefits offered through the Plan include various insurance and disability benefits. D. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; natural disasters and other events for which the City carries commercial insurance. No 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. The City has established a limited risk management program for workers' compensation. The program covers all City employees. Premiums are paid into the Workers' Compensation Reserve Fund by all other funds and are available to pay claims, claim reserves and administrative costs of the program. An excess coverage insurance policy covers individual claims in excess of $250,000 ($350,000 for claims involving employees classified as policemen or firemen). Incurred claims, including incurred but not reported claims, have been accrued based primarily upon subsequent payments. Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and amounts of payouts and other economic and social factors. The liability for claims and judgments is reported in the Workers' Compensation Reserve Fund because it is expected to be liquidated with expendable available financial resources. Of the liability, $183,446 is considered to be due within one year. 58 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 5. OTHER INFORMATION (Continued) D. Risk Management (Continued) Changes in the balances of claims liabilities during the past two years are as follows: 2020 2019 Unpaid claims, January 1 $ 311,572 $ 238,778 Incurred claims (including IBNRs) 917,229 726,271 Claim payments [782,306) [653,477] Unpaid claims, December 31 $ 446,495 $ 311,572 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: E. Contingent Liabilities Unpaid claims, January 1 Incurred claims (including IBNRs) Claim payments Unpaid claims, December 31 2020 2019 $ 489,418 $ 380,980 3,056,323 4,466,044 [2,940,741] (4,357,606] $ 605,000 $ 489,418 The City receives significant financial assistance from numerous federal and state governmental agencies in the form of grants and state pass-through aid. The disbursement of funds received under these programs generally requires compliance with terms and conditions specified in the grant agreements and is subject to audit. Any disallowed claims resulting from such audits could become a liability of the General Fund or other applicable funds. However, in the opinion of management, any such disallowed claims would not have a material effect on any of the financial statements of the City at December 31 , 2020. 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 $2,300,353 reported as landfill closure and postclosure care liability at December 31 , 2020, represents the cumulative amount reported to date based on the use of 28.8% of the estimated capacity of the landfill. 59 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 5. OTHER INFORMATION (Continued) F. Municipal Solid Waste Landfill (Continued) The City's solid waste fund will recognize the remaining estimated cost of closure and postclosure care of $5,680,356 as the remaining estimated capacity is filled over the remaining life expectancy of 147 years. These amounts are based on what it would cost to perform all closure and postclosure care in 2020. Actual cost may be higher due to inflation, changes, in technology or changes in regulations. The City is required by State and Federal laws and regulations to provide assurances of financial responsibility for closure and post- closure care. The City has elected to utilize the Local Government Financial test promulgated by the 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. G. 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. Since 2010, the City has been involved with civil litigation concerning environmental contamination in certain areas in the vicinity of the Salina Regional Airport and the Salina Airport Industrial Center. The contamination was caused by military activity that occurred between 1942 and 1966 when the site was operated as the Schilling Air Force Base. The City, the Salina Airport Authority, Unified School District No. 305 and Kansas State University (the "Salina Public Entities") sued the United States seeking federal funds to clean up the contamination. A remedial investigation and feasibility study (RI/FS) were completed in 2019 to determine the extent and severity of the contamination and to determine the best method of remediation. Based on the RI/FS, the Kansas Department of Health and Environment (KDHE) issued a Corrective Action Decision (CAD) on July 29, 2019. The Salina Public Entities and the U.S. Department of Justice (DOJ) reached a settlement of the litigation ultimately documented in the form of a Consent Decree filed in U.S. District Court on November 23, 2020. Pursuant to the Consent Decree, the Salina Public Entities assumed responsibility for the Response Action in the CAD in exchange for a $69.5 million lump sum payment by the United States to the Salina Public Entities. The settlement payment was not received by the City or the Salina Public Entities as of December 31, 2020. 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. 60 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 5. OTHER INFORMATION (Continued) H. 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, 2020. Project Authorization Ex~enditures Markley-Magnolia W Sewer $ 5,150,000 $ 1,314,305 North Lime Drying Lagoon Yearly Maintenance 120,000 37,260 Rebuild High Service Pump P-203 24,187 13,688 2017 Country Club Road Improvements 1,200,000 1,089,063 River Trail 2 956,072 11,312 Downtown Streetscape 12,165,000 11,669,107 Smoky Hill River Renewal 27,000,000 3,595,670 Water Mains 4,250,000 3,649,443 Downtown Santa Fe Water Main Replacement 1,351 ,100 1,415,997 Police Training Facility 4,900,000 5,936,845 Rehab Pump St 28,29/Repl 28 Face Main 550,000 Northbound 9th Street Bridge 103,768 95,358 Landfill Cell #20 Design 2,200,000 1,991,469 Railroad Crossing Improvements 45,000 2018 Park Improvements 194,000 87,000 Pheasant Ridge Addition #3 Phase 2 509,233 509,878 Community Theater HVAC Replacement 46,000 207 Stom, Sewer Mulberry Street 22,709 26,151 N. 9th Street Bridge 2,000,000 4,273 Golf Course Irrigation 1,488,414 1,499,452 9th South Addition 1,180,313 2,976 Smoky Hill Greenway Trail 435,637 61,934 Chorine Bluilding 2 Roof Replacement 35,000 2019 Water Main Replacement 4,000,000 Magnolia Hills Estates II 1,575,240 11,285 Stone Lake Phase 2 670,166 335,794 Stone Lake Phase 3A 1,647,053 3,368 Smedley Surgical Center 45,486 36,501 Sound Garden Oakdale Park 10,046 10,046 Wheatland Valley -Specials 5,474,790 6,500 Park Shelter Roof Replacement 93,816 LED Lighting replacement -Parks 18,223 Mulberry Stem, Sewer Repairs 461 ,556 417,398 Chip Seal 210,623 194,940 Microsurfacing 574,888 306 Mill & Inlay 494,196 375,247 Price Property Culvert Replacement 6,600 59,625 Waterline for SWTP 912,982 812,319 Joe Milbradt Pavillion 133,100 256,785 Fire Equipment 860,795 484,487 WWTP Owners Rep 896,790 93,595 WWTP Improvement PH I 879,193 Public Safety Communication System 2,361,323 139,986 TPEC Improvements 270,426 61 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 5. OTHER INFORMATION (Continued) I. Other Postemployment Healthcare Benefits Plan Description. The City offers postemployment health insurance to retirement employees. The benefits are provided through a single employer defined benefit postemployment healthcare plan administered by the City. 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 2020, the City did not contribute to the plan. At December 31 , 2020, the following employees were covered by the benefit terms: Actiw employees Retirees and cowred spouses Total 440 29 469 The total OPEB liability of $3,615,054 was measured as of December 31, 2019 and was determined by an actuarial valuation as of that date. The total OPEB liability in the December 31, 2019 actuarial valuation was determined using the following assumptions and other inputs, applied to all periods in the measurement, unless otherwise specified: Valuation date Actuarial cost method Inflation Salary increases Discount rate Healthcare cost trend rates Retiree's share of benefit related costs December 31, 2019 Entry age normal as a lewl percentage of payroll 2.75% 3.50% 2.74% Medical: 6.40% for 2020, decreasing 0.50% per year to an ultimate rate of 3. 7% for 2074 Dental: 5.00% to 2022, then decreasing to an ultimate rate of 3. 70% in 2074 100% of the premium 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 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 1/1/2020 Sen.ice cost Interest Benefit paid Economic/demographic gains/losses Changes in assumptions Balance 12/31/2020 62 $ 3,519,327 231,391 150,552 [159,018] [255,426] 128,228 $ 3,615,054 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 5. OTHER INFORMATION (Continued) I. Other Postemployment Healthcare Benefits (Continued) The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (1.74%) or one percentage point higher (3.74%) than the current discount rate: 1 % Decrease Discount Rate 1 % increase (1.74%) (2.74%) (3.74%) Total OPEB Liability $ 3,971,843 $ 3,615,054 $ 3,289,912 The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than the current healthcare cost trend rate: Healthcare Cost 1% Decrease Trend Rates 1% increase Total OPEB Liability $ 3,166,500 $ 3,615,054 $4,152,174 For the year ended December 31, 2020, the City recognized OPEB expense of $356,442. Deferred Outflows of Resources and Deferred Inflows of Resources. At December 31, 2020, the City reported deferred outflows related to other postemployment benefits from the following sources: Deferred outflows Deferred inflows of resources of resources Changes of assumptions $ 173,216 $ [143,654] Differences between expected and actual experience [226,168] Total $ 173,216 $ [369,822] Amounts reported as deferred outflows of resources will be recognized in OPEB expense as follows: Year ended Deferred [Inflows] June 301 Outflows Amount 2021 $ [25,501] 2022 [25,501] 2023 [25,501) 2024 [25,501) 2025 [25,501) 2026+ [69,101] Total $ [196,606] J. Other Postemployment Benefits (KPERS) Plan Description. The City participates in a multiple-employer defined benefit other postemployment benefit (OPEB) plan (the Plan) which is administered by 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 that is funded to pay annual benefit payments. However, because the trust's assets are used to pay employee benefits other than OPEB, the trust does not meet the criteria in paragraph 4 of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. Accordingly, the Plan is considered to be administered on a pay-as-you-go basis. 63 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 5. OTHER INFORMATION (Continued) J. Other Postemployment Benefits (KPERS) (Continued) 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) of annual compensation, offset by other benefits. Members receiving long-term disability benefits also receive credit towards their KPERS retirement benefits and have their group life insurance coverage continued under the waiver of premium provision. The monthly long-term disability benefit is 60 percent of the member's monthly compensation, with a minimum of $100 and a maximum of $5,000. The monthly benefit is subject to reduction by deductible sources of income, which include Social Security primary disability or retirement benefits, workers compensation benefits, other disability benefits from any other sources by reason of employment, and earnings from any form of employment. If the disability begins before age 60, benefits are payable while the disability continues until the member's 65th birthday or retirement date, whichever occurs first. If the disability begins after age 60, benefits are payable while the disability continues, for a period of five years or until the member retires, whichever occurs first. Benefit payments for disabilities caused or contributed to by substance abuse or non-biologically based mental illnesses are limited to the shorter of the term of the disability or 24 months per lifetime. The death benefit paid to beneficiaries of disabled members is 150% of the greater of 1) the member's annual rate of compensation at the time of disability, or 2) the members previous 12 months of compensation at the time of the last date on payroll. If the member has been disabled for five or more years, the annual compensation or salary rate at the time of death will be indexed using the consumer price index, less one percentage point, to compute the death benefit. If a member is diagnosed as terminally ill with a life expectancy of 12 months or less, the member may be eligible to receive up to 100% of the death benefit rather than having the benefit paid to the beneficiary. If a member retires or disability benefits end, the member may convert the group life insurance coverage to an individual insurance policy. Employees covered by benefit terms. At June 30, 2020, the valuation date, the following employees were covered by the benefit terms: Active employees Disabled members Total 281 3 284 Total OPEB Uability. The City and its component units reported a total KPERS OPEB liability of $597,444 as of December 31, 2020, was measured as of June 30, 2020, and was determined by an actuarial valuation as of December 31, 2019, which was rolled forward to June 30, 2020, using the following actuarial assumptions: Valuation date December 31, 2019 Actuarial cost method Entry age normal Inflation 2. 75% Salary increases 3.00% 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 Municipal Index) 2.21% The discount rate was based on the bond buyer general obligation 20-bond municipal index. 64 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 5. OTHER INFORMATION (Continued) J. Other Postemployment Benefits (KPERS) (Continued) 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, 2019, valuation were based on the results of an actuarial experience study for the period of January 1, 2016 through December 31 , 2018. Other demographic assumptions are set to be consistent with the actuarial assumptions reflected in the December 31 , 2019, KPERS pension valuation. The changes in the total OPEB liability are as follows: Total KPERS OPEB Liability City Housing Authority AirQOrt Authority Total Balance 1/1/2020 $506,395 $ 8,186 $ 13,338 $527,919 Service cost 57,185 1,529 3,430 62,144 Interest 19,037 376 587 20,000 Effect of economic/demographic gains or losses 17,086 [2,482] 14,604 Changes in assumptions 37,368 49 [4,295] 33,122 Benefit payments [39,627] 864 [38,763] Balance 12/31/2020 $597,444 $ 7,658 $ 13,924 $619,026 Sensitivity of the total KPERS OPEB liability to changes in the discount rate. The following presented the total KPERS OPEB liability of the City, as well as what the City's total KPERS OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (1.21 %) or 1-percentage-point higher (3.21 %) than the current discount rate: 1% Decrease Discount Rate 1% increase (1.21%} (2.21%} (3.21%} Total OPEB Liability -City $ 618,840 $ 597,444 $ 575,090 Total OPEB Liability -Housing Authority $ 7,745 $ 7,658 $ 7,511 Total OPEB Liability -Airport Authority $ 14,114 $ 13,924 $ 13,610 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 well as what the City's total KPERS OPEB liability would be if it were calculated using trend rates that are 1 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% Decrease Trend Rates 1% increase Total OPEB Liability -City $ 597,444 $ 597,444 $ 597,444 Total OPEB Liability -Housing Authority $ 7,658 $ 7,658 $ 7,658 Total OPEB Liability -Airport Authority $ 13,924 $ 13,924 $ 13,924 For the year ended June 30, 2020, the City recognized OPEB expense of $78,842. 65 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 5. OTHER INFORMATION (Continued) J. Other Postemployment Benefits (KPERS) (Continued) Deferred Outflows of Resources and Deferred Inflows of Resources. At December 31, 2020, the City reported deferred outflows and inflows related to other postemployment benefits from the following sources: City Housing Authority Airport Authority Deferred Deferred Deferred Deferred Deferred Deferred Outflows of Inflows of Outflows of Inflows of Outflows of Inflows of Resources Resources Resources Resources Resources Resources Differences between expected and actual experience $ 67,257 $ 75,665 $ -$ 4,221 $ 7,813 $ Changes of assumptions 39,638 9,995 44 195 148 897 Total $ 106,895 $ 85,660 $ 44 $ 4,416 $ 7,961 $ 897 $64,827 and $3,830 reported as deferred outflows of resources related to OPEB resulting from City and Airport Authority contributions subsequent to the measurement date, respectively, will be recognized as a reduction of the OPEB liability in the year ended December 31, 2021. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in OPEB expense as follows: Year Ended Housing Airport June 30, 9!Y. Authority Authority 2021 $ 2,620 $ [537] $ [925) 2022 2,620 [537] [925) 2023 2,620 [537] [925] 2024 2,620 [537] [925] 2025 2,620 [537] [925] Thereafter 8,135 [1,687] [2,439] Total $ 21,235 $ [4,372] $ [7,064] K. Tax Abatements In 2020, 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. 66 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 5. OTHER INFORMATION (Continued) K. Tax Abatements (Continued) Ad Valorem Property Tax Abatements Abatement Company Salina Vortex Corp (facility improvements) Great Plains Mfg (facility improvements) Veris Technologies (facility addition/improvements) Twin Oaks (facility addition/improvements) Total Start End 2015 2024 2014 2015 2015 2023 2024 2024 % 2020 Tax Abated 37.5% $ 5,522 50% 20.3% 27.5% $ 4,073 505 688 10,789 Tax Increment Financing (T/F). 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. llF Project Plans 2020 Reimbursements District Purpose Base Year Expires Sales Tax Property Tax Construction of 10.79 acres of shopping center, including single and multi-tenant retail space, and related public and private Lambertz infrastructure 2007 2027 $29,304 $178,680 Total $29,304 $178,680 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. 67 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 5. OTHER INFORMATION (Continued) K. Tax Abatements (Continued) To establish a CID, the applicant first 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) 2020 El igible Reimbursement Name Rate Start Expires Purpose Amount Assist with improvements to hotel South 9th Street 2.00% 3/1/2016 12/31/2037 and conference center $251,052 Assist with building of family Alley 1.00% 10/1/2019 9/30/2041 entertainment facility in downtown $13,454 Assist with Rellitilization of Downtown 1.00% 7/1/2019 6/30/2041 Downtown Corridor $14,487 Assist with building of downtown Downtown Hotel 1.00% 10/1/2019 9/30/2041 hotel - Total $278,993 Neighborhood Revitalization Amas (NRA). NRAs are authorized under Kansas state statutes K.S.A. 12-117 and subject to City policy to spur investment and revitalization 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-year plan running from 2015-2019. It allows for a 10-year rebate 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, 2020 Note 5. OTHER INFORMATION (Continued) K. Tax Abatements (Continued) Property/Business Name Serio Guzman William & Mary Warhurst Holly Fain Arlene Cox Gloria Williams Michelle Rogan Samuel A. Rock Jessica A. Ziegler Ryan Murphy Ravey lm.estments LLC Lamont Outland Michelle Bunch Jermaine and Tykea Polk Mary Marshall Angela Fishburn Heritage at Hawthorne Partners, LLC Will & Mary Warhurst Donnie & Ramona Marrs TJlM, Inc. Troy Valcil Michelle Malone Timothy & Linda Rickman Y1.ette Gelinas Charles H Carroll Jr Trust Pestinger Enterprises LLC Latisha Pierce Tanya Shiehzadeh Robert & Brenda Bums Property Partners LLC AP Property Holdings, LLC Gregory Dal.is Micheal Money Traniesh Byrd Mark Martin Liloing Trust Matthew Snyder Doyle & Maureen Comfort Trust Jana Endsley Kanesha Samilton Maria E Padilla JK Webb Properties LLC Alan and Nancy Franzen Santa Fe Properties, LLC Rusty A Leister Liloing Trust Heritage at Hawthorne Partners II, LLC. Christopher Helm Christopher Helm Laurie Donmyer E-.e Wright Foley Equipment Co. Mark Ritter Angelica Farris Christopher Vogel Christopher Helm Neighborhood Reloitalizetion Act (NRA) Address 241 N. Front Street 1009 N. 8th Street 219 N. Front Street 1101 N. 10th Street 714 Park Street 204 Forest A1.enue 200 Forest A1.enue 1329 N. 4th Street 303 S. Santa Fe A1.enue 227 S. Santa Fe A1.enue 221 N. 2nd Street 207 N. Penn 157 N. Se1.enth, 203 W. Ash, 205 W. Ash, 207 W. Ash & 209 W. Ash 1206 N. 7th Street 1219 N. 8th Street 937 N. 3rd Street 1219 N. 8th Street 134 S. Santa Fe Ave 2035 E. Iron #213C/105R/302R/202R/205R/006R/301RA/301 RB/001 R/002R/003R/004R/005R 853 Na10ho 815 N. 2nd Street 719 E. Ash 1115 N. 8th Street 156-158 S. Santa Fe 2035 E. Iron A1.enue, Unit #306R 705 N. 2nd Street 703 N. 2nd Street 1205 N. 4th Street 116 & 118 N. Santa Fe (2nd Floor Loft Apartments) 201 E. Iron A1.enue 156-158 N. 11th Street 2035 E. Iron A1.enue, Unit #206R 701 N. 2nd Street 2035 E. Iron #104R 2035 E Iron #304R 2035 E Iron #304R 1321 N. 3rd Street 214 W. Grand A1.enue 810 N. 5th Street 120 S. Santa Fe A1.enue 1413 Arapahoe 131 N. Santa Fe Avenue/128 S. Santa Fe A1.enue 600 N. Santa Fe A1.enue 715 N. 9th Street, Phase II 608 N. 11th Street 752 N. Broadway 255 N. Columbia 1200 N. 8th 2225 N. Ohio St 2035 E. Iron #108R 846 Choctaw A1.e 2035 E. Iron #209R 619 N. 5th Street 69 2020 ~ Rebate Paid Res $ 32 Res 10 Res 49 Res 61 Res 44 Res 59 Res 15 Res 62 Res 83 Com 713 Res 105 Res 113 Res 128 Res 108 Res 108 Com 1,842 Res 165 Res 936 Res 6,461 Res 79 Res 4 Res 71 Res 116 Com 2,125 Res 1,565 Res 133 Res 129 Res 84 Com 818 Com 5,359 Res 280 Res 946 Res 165 Com 797 Res 529 Res 1,166 Res 229 Res 269 Res 307 Com 2,867 Res 202 Com 3,830 Com 2,137 Com 2,150 Res 152 Com 6,306 Res 186 Res 278 Com 16,750 Res 1,621 Res 311 Res 909 Com 806 $ 64,770 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 5. OTHER INFORMATION (Continued) K. Subsequent Events On April 12, 2021, the City issued Series 2021-A general obligation internal improvement bonds in the amounts of $5,230,000. Proceeds from the bonds will be used to provide long-term financing for a portion of the costs of certain public improvements within the City and to retire a portion of the City's outstanding general obligation temporary notes. The City will make the first payment on the bonds on October 1, 2022 the last payment on October 1, 2041 . The interest rate on the bonds ranges from 2.00% to 4.50%. Also on April 12, 2021, the City issued Series 2021-1 temporary notes in the amounts of $5,230,000. Proceeds from the notes will be used to provide interim construction financing of certain public improvements within the City. The maturity date of the temporary notes is May 1, 2022 and the interest rate on the notes is 2.00%. On January 30, 2020 the World Health Organization declared the Coronavirus outbreak as a "Public Health Emergency of International Concern" and on March 11, 2020, declared it to be a pandemic. Actions were taken to help mitigate the spread of the virus, including social-distancing, quarantines and forced closures of certain types of public places and businesses. The coronavirus and actions taken to mitigate the spread of it have had and are expected to have an adverse impact on the economies and financial markets of many countries, including the geographical area in which the City operates. It is unknown how long the adverse conditions associated with the pandemic will last and what the complete financial effect will be to the City. Management cannot quantify the financial and other impacts to the City's financial position but believes a material impact is reasonably possible. 70 REQUIRED SUPPLEMENTARY INFORMATION CITY OF SALINA, KANSAS REQUIRED SUPPLEMENTARY INFORMATION OTHER POSTEMPLOYMENT BENEFITS Schedule of Changes in the City's Total OPEB Liability and Related Ratios Last Ten Fiscal Years* Total OPEB liability 2020 2019 2018 Service cost $ 231,391 $ 249,957 $ 226,762 Interest 150,552 125,877 128,578 Benefit paid [159,018] [157,465] [265,000] Economic/demographic gains/losses [255,426] Changes in assumptions 128,228 [186,344] 90,918 Net change in total OPES liability 95,727 32,025 181,258 Total OPES liability -beginning 3,519,327 3,487,302 3,306,044 Total OPEB liability -ending $ 3,615,054 $ 3,519,327 $ 3,487,302 Covered payroll $25,163,639 $25,232,129 $24,740,225 Total OPEB liability as a percentage of 14.37% 13.95% 14.10% covered-employee payroll Actuarially determined contribution $ 159,018 $ 157,465 $ 265,000 Actual contribution $ 159,018 $ 157,465 $ 265,000 Contributions as a percentage of covered payroll 0.63% 0.62% 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 Schedule of Changes in the City's Total OPEB Liability and Related Ratios Last Ten Fiscal Years* Total OPEB liability 2020 2019 2018 Sen.ice cost $ 57,185 $ 52,863 $ 52,380 Interest 19,037 22,667 17,061 Effect of economic/demographic gains or losses 17,086 [95,243] 75,173 Effect of assumptions changes or inputs 37,368 7,614 [6,574) Benefit payments [39,627) [28,432] [30,368] Net change in total OPEB liability 91,049 [40,531] 107,672 Total OPEB liability -beginning 506,395 546,926 439,254 Total OPEB liability -ending $ 597,444 $ 506,395 $ 546,926 Covered payroll $ 14,338,983 $ 13,991,543 $13,652,194 Total OPEB liability as a percentage of 4.17% 3.62% 4.01% covered-employee payroll Actuarially determined contribution $ 144,746 $ 144,746 $ 109,466 Actual contribution $ 144,746 $ 144,746 $ 109,466 Contributions as a percentage of covered payroll 1.01% 1.03% 0.80% *data became available with the inception of GASB 75 during fiscal year 2018, therefore 10 years of data is unavailable. 72 CITY OF SALINA, KANSAS REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED) KPERS PENSION PLAN Schedule of the City's Proportionate Share of the Net Pension Liability Last Ten Fiscal Years* 2015 2016 2017 ,fQj§ 2019 2020 City's proportion of the net pension liability Local 0.764% 0.761% 0.811% 0.790% 0.796% 0.766% Police & Fire 2.258% 2.180% 2.191% 2.081% 2.074% 2.038% City's proportionate share of the net pension liability Local $10,027,679 $11,770,699 $11,753,246 $11,014,328 $11,123,112 $13,290,226 Police & Fire $16,395,794 $20,251 ,512 $20,546,882 $20,019,473 $20,993,820 $25,135,770 City's co\A9red-employee payroll Local $12,931,197 $13,251,236 $13,548,056 $13,944,989 $14,366,294 $14,948,415 Police & Fire $10,161,866 $10,730,033 $10,593,419 $10,441 ,055 $10,859,219 $11,285,465 City's proportionate share of the net pension liability as a percentage of its its cowred-employee payroll Local 77.55% 88.83% 86.75% 78.98% 77.43% 88.91% Police & Fire 161 .35% 188.74% 193.96% 191 .74% 193.33% 222.73% Plan fiduciary net position as a percentage of the total pension liability Local 71.98% 68.55% 72.15% 74.22% 75.02% 70.77% Police & Fire 74.60% 69.30% 70.99% 71.53% 71 .22% 66.81% *The amounts presented for each fiscal year were determined as of 12/31. Data became available with the inception of GASS 68 during fiscal year 2015, therefore 10 years of data is unavailable. Schedule of the City's Contributions Last Ten Fiscal Years* 2015 2016 2017 2018 2019 2020 Contractually required contribution Local $ 1,256,217 $ 1,243,711 $ 1,179,745 $ 1,205,334 $ 1,328,915 $ 1,156,925 Police & Fire $ 2,527,995 $ 2,361,273 $ 1,986,933 $ 2,181,617 $ 2,497,473 $ 2,405,832 Contributions in relation to the contractually required contribution Local 1,256,217 1,243,711 1,179,745 1,205,334 1,328,915 1,156,925 Police & Fire 2,527,995 2,361 ,273 1,986,933 2,181,617 2,497,473 2,405,832 Contribution deficiency [excess] $ -$ -$ $ -$ -$ City's co\A9red-employee payroll Local $13,251,236 $13,548,056 $13,944,989 $14,366,294 $14,948,415 $13,436,992 Police & Fire $10,730,033 $10,593,419 $10,441,055 $10,859,219 $11,285,465 $10,970,505 Contributions as a percentage of co\A9red employee payroll Local 9.48% 9.18% 8.46% 8.39% 8.89% 8.61% Police & Fire 23.56% 22.29% 19.03% 20.09% 22.13% 21 .93% *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 NONMAJOR SPECIAL REVENUE 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 district fund -State law allows businesses within an area to voluntarily establish an improvement district. This fund is used to account for the assessments made on the District. All revenues are to be used within the Business Improvement District. 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, which must be used for park maintenance and improvements. Special alcohol fund -To account for liquor tax revenues, which must be used for programs, which address prevention, education or intervention for drug and alcohol abuse. 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 for 2.34% of the .75 cent sales tax designated for economic Development purposes. Downtown TIF District #1 fund -To account for revenues and expenditures related to the Tax Increment Financing District that was formed as part of the Downtown Revitalization Project. South 9th CID fund -To account for incremental sales tax revenues received and disbursed to the developers as part of the Community Improvement District formed in 2015. Downtown CID fund -To account for incremental sales tax revenues received and disbursed to the developers as part of the Community Improvement District formed in 2017. Alley CID fund -To account for incremental sales tax revenues received and disbursed to the developers as part of the Community Improvement District formed in 2016. Downtown Hotel CID fund -To account for incremental sales tax revenues received and disbursed to the developers as part of the Community Improvement District formed in 2017. STAR Bonds Subproject fund -To track disbursements and reimbursements associated with the Stiefel Theatre's STAR Bond State Grants fund -To account for grant revenue and expenditures received from the State of Kansas. 911 communications fund -To account for transitioning the receipt and administration of 911 fees to the City from the Kansas Department of 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 capital fund -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, which are 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. 74 CITY OF SALINA, KANSAS COMBINING STATEMENTS -NONMAJOR FUNDS NONMAJOR SPECIAL REVENUE FUNDS -CONTINUED 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. Special assessments escrow fund -To account for property owners' prepayment on outstanding special assessments. Court bond and restitution fund -To account for bonds and restitution remitted to the court and awaiting court orders for distribution. Police investigation account fund -To account for monies held by the police department for use in investigations. Citizenship fund -To account for donations received and used for the citizenship fund. DTF local fund -To account for revenues and expenditures related to the sale of assets acquired during drug enforcement activities as they relate to local cases. Expenses are limited to equipment and training for the Drug Task Force. DTF reserve fund -To account for revenues and expenditures related to the sale of assets acquired during drug enforcement activities as they related to federal cases placed in a reserve for future use. Beechcraft remediation settlement fund -To account for revenues and expenditures related to the bankruptcy of Beechcraft and the former Schilling Airforce Base remediation case. Bail bond escrow fund -To account for funds being held in escrow for bonds issued by Municipal Court. Federal CARE grant fund -To account for revenue and expenses associated with the CARE Grant. Police Department federal forfeiture funds -To account for revenue and expenses associated with federal Equitable Sharing Program funds. Homeowners' assistance fund -To receive donations and/or other funds to assist low and moderate income persons in improving their homes. Private grants fund -To account for revenues and expenditures related to grants received from private entities with specific purposes. Animal shelter donations fund -To accumulate donations and account for expenses to benefit the animal shelter. NONMAJOR PERMANENT FUNDS Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not principal, may be used for purposes that support the reporting government's programs. 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 tricentennial in the year 2076. 75 CITY OF SALINA, KANSAS COMBINING BALANCE SHEET NONMAJOR GOVERNMENT AL FUNDS December 31, 2020 Total Total Nonmajor Nonmajor Nonmajor Debt Special Revenue Permanent Service Funds Funds Fund ASSETS Cash and investments $ 6,696,113 $ 542,755 $ 800 Receivables Accounts 3,287 Total assets $ 6,699,400 $ 542,755 $ 800 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 221,525 $ -$ - Due to other funds 31,989 Total liabilities 253,514 Fund balances: Restricted 694,713 800 Committed 5,561,914 542,755 Assigned 189,259 Total fund balances 6,445,886 542,755 800 Total liabilities and fund balances $ 6,699,400 $ 542,755 $ 800 See independent auditor's report on the financial statements. 76 Total Nonmajor Governmental Funds $ 7,239,668 3,287 $ 7,242,955 $ 221 ,525 31,989 253,514 695,513 6,104,669 189,259 6,989,441 $ 7,242,955 CITY OF SALINA, KANSAS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2020 Total Total Nonmajor Total Nonmajor Nonmajor Debt Nonmajor Special Revenue Permanent Service Governmental Funds Funds Fund Funds REVENUES Taxes $ 1,126,829 $ -$ -$ 1,126,829 Intergovernmental 1,219,866 315,372 1,535,238 Charges for services 108,135 13,282 121,417 Licenses and permits 5,070 5,070 Investment revenue 16,764 1,972 2,400 21,136 Donations 129,193 129,193 Miscellaneous 3,518,022 59,555 3,577,577 Total revenues 6,123,879 15,254 377,327 6,516,460 EXPENDITURES Current Culture and recreation 1,207,431 1,207,431 Public safety 625,362 625,362 Public health and sanitation 597,804 597,804 Planning and development 376,545 376,545 Miscellaneous 35 1,300,626 1,300,661 Debt service Interest and other charges 15,496 15,496 Capital outlay 1,741,294 1,741,294 Total expenditures 4,548,436 35 1,316,122 5,864,593 Excess [deficiency] of revenues over [under] expenditures 1,575,443 15,219 [938,795] 651,867 Other financing sources [uses] Transfers in 1,241,413 1,241,413 Total other financing sources [uses] 1,241,413 1,241,413 Net change in fund balance 2,816,856 15,219 [938,795] 1,893,280 Fund balance -Beginning of year 3,203,386 527,536 939,595 4,670,517 Prior period adjustment 425,644 425,644 Fund balance -Beginning of year, restated 3,629,030 527,536 939,595 5,096,161 Fund balance -End of year $ 61445,886 $ 542,755 $ 800 $ 6,989,441 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, 2020 Business Special Communily Sales Tax Downtown Bicentennial Improvement Neighborhood Par1<s& Special Development Economic TIF Cegter llillli.! ffil!I &.!lili2n 8l!m!I ~ C!!i!~!i!ISU2W!D1 District#1 ASSETS Cash and investments $ 406,690 $ 11,017 33,821 $ 478,383 $ 234 186,307 $ 720,798 $ 709,533 Receivables Accounts 3287 Total assets $ 406 690 $ 14 304 $ 33,821 $ 478,383 234 $ 186 307 720 798 $ 709,533 LIABILITIES AND FUND BALANCES LlablHties: Accounts payable $ 89,049 $ $ $ $ 5,1 12 $ Due to other funds Total liabilities 89 049 5112 Fund balance: Restricted 14,304 465,773 234 186,307 Committed 317,641 33,821 715,686 709,533 Assigned 12610 Total lund balance (deficit) 317 641 14 304 33821 478 383 234 186 307 715 686 709 533 Total liabililies and fund balances $ 406 690 14 304 33,821 $ 478,383 $ 234 $ 186 307 $ 720 798 $ 709,533 South Downlown 2111.m g,Q $ 22,388 $ 286,564 $ 22,388 $ 286.564 $ 20,691 $ $ 20,691 1,697 286,564 1697 286 564 $ 22 388 $ 286,564 $ KenvYOOd Alley Downlown STAR Bonds State 911 Cove CID Hotel CID ~ QWll! CoOYnunications QiW! 3,742 $ 18,719 $ 2,000,000 6,493 421,418 195,961 3 742 $ 18 719 2,000.000 $ 6493 $ 421,418 $ 195,961 $ $ $ $ 79,426 $ 3,571 79.426 3 571 3,742 18,719 2,000,000 6,493 165,343 192,390 176 649 3 742 18 719 2 000.000 6.493 341 992 192,390 3.742 18.719 2,000,000 $ 6,493 421 .418 195 961 See independent auditor's report on the financial statements. 78 Special Law Police ~ Granls $ 82 $ 3,479 $ 82 $ 3,479 $ $ 82 3,479 82 3 479 $ 82 $ 3 479 CITY OF SALINA, KANSAS COMBINING BALANCE SHEET NONM.AJOR SPECIAL REVENUE FUNDS (Continued) For the Year Ended December 31, 2020 Police War Federal Department Federal DARE Memorial Arts& CARE Federal Homeowners' Private ~ ~ Maintenance lil!m!!!ilill lawll Eolfeitum Ei.iag; ~ liclnl1 ASSETS Cash and investments $ $ 14,031 $ 30,B43 $ 103,587 $ 26,141 $ 99 $ 19,041 $ 1,954 Receivables Accounts Total assets $ $ 14031 30 B43 $ 103 567 $ 26141 $ 99 $ 19 041 $ 1954 LIABILITIES AND FUND BALANCES Liabi6ties: Accounts payable $ 16,440 825 $ $ 3,521 $ $ $ Due to other funds 31 989 Total llabll~ies 4B429 B25 3 521 Fund balance: Restricted 26,141 1,954 Committed (48,429] 13,206 30,B43 100,066 99 19,041 Assigned Total fund balance (deficit) [4B,429) 13,206 30 B43 100 066 26141 99 19041 1 954 Total liabifities and fund balances $ $ 14 031 $ 30843 $ 103 587 $ 26141 ! 99 $ 19041 $ 1 954 Animal Special Shetter Assessments ~ ~ $ 560,731 116,682 $ 560,731 116 682 $ 1,590 $ s 1,590 559,141 116,682 559 141 116 682 $ 560 731 s 116682 $ Coort PoUce Beechcraft Bond and Investigation DTF DTF Remediation Restitution ~ Citizenship Local Reserve ~ 31,394 $ 3,384 $ 39,757 $ 10,076 41,663 189,966 31.394 $ 3,384 $ 39757 $ 10,016 $ 41,663 $ 189.966 $ $ 1,000 $ 300 $ 1 000 300 31,394 3,384 38,757 9,776 41,663 189,966 31394 3,384 38.757 9 776 41 .663 189.966 31 394 3384 $ 39 757 10,076 i 41,663 $ 189 966 See independent auditor's report on the financial statements. 79 Bail Bond Escroyy Totals $ 1,135 $ 6,696,113 3 287 $ 1135 $ 6,699AOO $ 221,525 31,989 253 514 694,713 1,135 5,561,914 189 259 1,135 6445,886 U35 6,699,400 CITY OF SALINA, KANSAS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNOS For the Year Ended December 31, 2020 Business Special Community Sales Tax Downtown Bicentennial Improvement Neighborhood Parks & Special Development Economic TIF Center District Park ~ Alcohol Revolving Develor2me□t District#1 Revenues Taxes $ $ $ $ $ $ $ 350,004 $ 291,557 lntergovemrnental 171,982 171,982 Charges for services 80,807 Licenses and permits 5,070 Investment revenue 2,443 Donations Miscellaneous 175,000 1833 ---Total Revenues 175,000 80,807 5070 171982 171,982 351,837 294,000 Expenditures Curren! Culture and recreation 713,405 Public safety Public health and sanitation 171,982 Planning and development 73,176 20,109 Capital outlay 42465 344,714 Total Expenditures 713,405 73,176 42465 171,982 344,714 20,109 Excess [deficiency] of revenues over (under) expenditures [538,405) 7 631 5070 129,517 7123 273,891 Other financing sources [uses] Transfers in 656 063 Total other financing sources [uses] 656 063 ---------- Net change in fund balance 117,658 7 631 5070 129,517 7123 273,891 Fund balance, beginning of year 199,983 6,673 28,751 348,866 234 186,307 708,563 435,642 Prior period adjustment Fund balance, beginning of year, restated 199,983 6673 28751 348,866 234 186 307 708,563 435,642 Fund balance, end of year $ 317,641 $ 14,304 $ 33,821 $478,383 ~ $ 186,307 $ 715,686 $ 709533 South Downtown 9th CID .Q!Q. $ 216,895 $ 232,549 $ 33 685 11732 67 817 228,660 301051 228,237 14,487 228,237 14487 423 286564 423 286 564 1,274 1274 $ 1697 $ 286,564 $ Kenwood Special Alley Downtown STAR Bonds State 911 Cove Law CID ~ Subgrojects Grants Communications Ca0tal Enforcem~□I 17176 $ 18,648 $ $ $ -$ $ 122,055 477,372 20 71 1,646 3,219,786 17196 18719 3,219,786 122,055 479018 586,331 13,454 1,219,786 122,055 11,149 13,454 1,219,786 122,055 586 331 11,149 3742 18719 2,000,000 (107,313] (11,149! 68,350 68350 3 742 18 719 ~000,000 [107,313) 57201 6,493 449,305 135,189 6493 449 305 135189 3,742 $ 18719 $ 2,000,000 $ 6,493 $ 341,992 $ 192,390 $ See independent auditor's report on the financial statements. 80 82 82 82 Police Grants $ 3,479 3479 3479 3479 $ 3,479 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, 2020 Police War Federal Department Federal DARE Memorial Arts& CARE Federal Homeowners' Private Grants Donations Main!!!nance Humanities Grant Fgf11:i!ur1: EY□!ls ~ Grants Revenues Taxes $ $ $ $ $ $ $ $ Intergovernmental 222,996 Charges for services 27,328 Licenses and pennils Investment revenue 113 Donations Miscellaneous 12,175 2196 Total Revenues 222,996 12175 113 27,328 2196 Expenditures Current Culture and recreation 494,026 Public safety Public health and sanitation 312,550 Planning and development 27,082 Capital outlay Tolal Expenditures 312,550 27,082 494026 Excess {deficiency] of revenues over {under] expenditures (89,554] [14,907] 113 [468,698] 2196 Other financing sources {uses] Transfers in 517 000 Tola! other financing sources {uses] -------517 QOQ ---- Net change in fund balance (89,554] [14,907] 113 50302 2196 Fund balance, beginning of year 41,125 28,113 30,730 49,764 26,141 99 16,845 1,954 Prior period adjustment ---- Fund balance, beginning of year, restated ~ 28,113 30,730 49764 ~ 99 16845 1 954 Fund balance, end of year $ [48,429] ~ $ 30,843 $ 100 066 $ 26,141 $ 99 $ 19,041 $ 1,954 Animal Special Shelter Assessments Donations Escrow $ $ $ 50,000 121,160 171,160 113,272 113,272 57888 57,888 501,253 116682 501,253 116682 $ 559,141 $ 116,682 $ Court Police Beechcrafl Bail Bond and Investigation DTF DTF Remediation Bond Restitution Account Citizenship Local Reserve Settlement Escrow $ $ $ $ $ $ 11,055 698 8,033 8,867 13,265 5,350 8 867 11 055 13265 5350 8731 29,031 10,000 1,125 1125 29031 10000 8867 9930 115.7661 [4,650) 8731 8867 9,930 [15,766) [4,650) 8,731 22527 3383 28827 25542 46,313 181235 1,135 22,527 3383 28827 25542 46313 181 235 1135 31,394 $ 3,384 $ 38,757 $ 9,776 $ 41,663 $ 189,966 $ 1135 See independent auditor's report on the financial statements. 81 Totals $ 1,126,829 1,219,866 108,135 5,070 16,764 129,193 3,518,022 6123,879 1,207,431 625,362 597,804 376,545 1,741,294 4,548,436 1,575 443 1,241,413 1.241.413 2.816,856 3,203,386 425,644 3,629,030 $ 6,445,886 ASSETS Cash and investments Total assets LIABILITIES AND FUND BALANCES Liabilities Accounts payable Total liabilities Fund balances Committed Total liabilities and fund balances CITY OF SALINA, KANSAS COMBINING BALANCE SHEET NONMAJOR PERMANENT FUNDS December 31, 2020 Cemetery Mausoleum Tricentennial Endowment Endowment Commission Total $ 534,767 $ 2,071 ~$ _ __;5::..,.,9::...;1;..:_7 $ 542,755 $ 534,767 $ 2,071 .;:;.$ _ ____;5;;.i.,9;..;1~7 $ 542,755 .;:;.$ ____ -.;:;.$ ____ -.;:;.$ ____ -.;:;.$ ___ _ 534,767 2,071 5 917 542,755 $ 534,767 $ 2,071 ,;:;..$ _ ____;5;,.:.;,9;..;1~7 $ 542,755 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, 2020 Cemetery Mausoleum Tricentennial Endowment Endowment Commission Revenues Charges for services $ 13,282 $ -$ Investment revenue 1,942 8 Total revenues 15,224 8 Expenditures Miscellaneous 35 Total expenditures 35 Net change in fund balance 15,189 8 Fund balances -beginning of year 519,578 2,063 Fund balances -end of year $ 534,767 $ 2,071 $ See independent auditor's report on the financial statements. 83 - 22 22 22 5,895 5,917 Total $ 13,282 1,972 15,254 35 35 15,219 527,536 $ 542,755 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, 2020 Budgeted Amounts Actual Original Revenues Miscellaneous $ 175,000 $ -$ Total revenues 175,000 Expenditures Culture and recreation 713,405 Total expenditures 713,405 Excess [deficiency] of revenues over [under] expenditures [538,405] Other financing sources [uses] Transfers in 656,063 Total other financing sources [uses] 656,063 Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses] 117,658 Unreserved fund balance, January 1 199,983 Unreserved fund balance/GAAP fund balance December 31 $ 317,641 $ -$ See independent auditor's report on the financial statements. 84 Final - 740,000 740,000 [740,000] 830,000 830,000 90,000 137,177 2271177 Variance with Final Budget Positive [Negative] $ 175,000 175,000 26,595 26,595 201,595 [173,937} [173,937} 27,658 62,806 $ 90,464 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, 2020 Budgeted Amounts Actual Original Revenues Charges for services $ 79,532 $ 90,500 $ Total revenues 79,532 90,500 Expenditures Planning and development 73,176 90,500 Total expenditures 73,176 90,500 Excess [deficiency] of revenues over [under] expenditures 6,356 Unreserved fund balance, January 1 4,661 4,461 Unreserved fund balance, December 31 11,017 $ 4,461 $ Reconciliation to GAAP Accounts receivable 3,287 GAAP Fund Balance, December 31 $ 14,304 See independent auditor's report on the financial statements. 85 Final 90,500 90,500 90,500 90,500 4,461 4,461 Variance with Final Budget Positive [Negative] $ [10,968] [10,968] 17,324 17,324 6,356 200 $ 6,556 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, 2020 Budgeted Amounts Actual Original Revenues Licenses and permits $ 5,070 $ 3,000 $ Total revenues 5,070 3,000 Expenditures Capital outlay 10,000 Total expenditures 10,000 Excess [deficiency) of revenues over [under] expenditures 5,070 [7,000] Unreserved fund balance, January 1 28,751 28,751 Unreserved fund balance/GAAP fund balance December 31 $ 33,821 $ 21,751 $ See independent auditor's report on the financial statements. 86 Final 3,000 3,000 10,000 10,000 [7,000] 28,751 21,751 Variance with Final Budget Positive [Negative] $ 2,070 2,070 10,000 10,000 12,070 $ 12,070 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, 2020 Budgeted Amounts Actual Original Revenues Intergovernmental $ 171,982 $ 197,740 $ Investment revenue 100 Total revenues 171 ,982 197,840 Expenditures Capital outlay 55,075 194,000 Total expenditures 55,075 194,000 Excess [deficiency] of revenues over [under] expenditures 116,907 3,840 Unreserved fund balance, January 1 348,866 348,866 Unreserved fund balance, December 31 465,773 $ 352,706 $ Reconciliation to GAAP Current year encumbrances 12,610 GAAP Fund Balance, December 31 $ 478,383 See independent auditor's report on the financial statements. 87 Final 197,740 100 197,840 194,000 194,000 3,840 348,866 352,706 Variance with Final Budget Positive [Negative] $ [25,758] [100] [25,858] 138,925 138,925 113,067 $ 113,067 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, 2020 Budgeted Amounts Actual Original Revenues Intergovernmental $ 171,982 $ 197,740 $ Total revenues 171 ,982 197,740 Expenditures Public health and sanitation 171,982 197 740 Total expenditures 171 ,982 197,740 Excess [deficiency) of revenues over [under] expenditures Unreserved fund balance, January 1 234 234 Unreserved fund balance/GAAP fund balance December 31 $ 234 $ 234 $ See independent auditor's report on the financial statements. 88 Final 197,740 197,740 197,740 197 740 234 234 Variance with Final Budget Positive [Negative] $ (25,758] (25,758] 25,758 25,758 $ Revenues Taxes Miscellaneous Total revenues Expenditures Capital outlay Total expenditures 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, 2020 Budgeted Amounts Actual Original Final $ 350,004 $ 338,228 $ 338,228 1,833 2,000 2,000 351,837 340,228 340,228 344,714 375,000 375,000 344,714 375,000 375,000 Excess [deficiency] of revenues over [under] expenditures 7,123 [34,772] Unreserved fund balance, January 1 708,563 708,563 Unreserved fund balance/GAAP fund balance December 31 $ 715,686 $ 673,791 $ See independent auditor's report on the financial statements. 89 (34,772] 708,563 673,791 Variance with Final Budget Positive [Negative] $ 11,776 [167] 11 ,609 30,286 30,286 41,895 $ 41,895 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 , 2020 B!Jggeted Amounts Actual Original Revenues Charges for services $ 27,328 $ 320,400 $ Miscellaneous 78,000 Total revenues 27,328 398,400 Expenditures Culture and recreation 494,026 1,064,364 Total expenditures 494,026 1,064,364 Excess [deficiency] of revenues over [under] expenditures [466,698) [665,964] Other financing sources [uses] Transfers in 517,000 645,500 Total other financing sources [uses] 517,000 645,500 Excess [deficiency) of revenues and other sources over [under] expenditures and other [uses] 50,302 [20,464] Unreserved fund balance, January 1 49764 49,764 Unreserved fund balance/GAAP fund balance December 31 $ 1001066 $ 291300 $ See independent auditor's report on the financial statements. 90 Final 320,400 78,000 398,400 1,064,364 1,064,364 [665,964] 645,500 645,500 [20,464] 49764 291300 Variance with Final Budget Positive [Negative] $ [293,072] [78,000] [371 ,072] 570,338 570,338 199,266 [128,500] [128,500] 70,766 $ 70,766 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, 2020 Budgeted Amounts Actual Original Revenues Taxes Real estate taxes $ 3,010,914 $ 3,337,038 Delinquent taxes 47,317 55,000 Motor vehicle taxes 325,274 314,918 Special assessments 1,511 ,279 1,546,000 Miscellaneous 1,744,792 Total revenues 4,894,784 6,997,748 Expenditures Debt Service Principal retirement 5,163,995 3,196,000 Interest and other charges 1,937,284 1,327,000 Special assessments 1,437,000 Miscellaneous 53,301 Total expenditures 7,154,580 5,960,000 Excess [deficiency) of revenues over [under] expenditures [2,259,796) 1,037,748 Other financing sources [uses] Transfers in 1,629,188 2,000,000 Bond proceeds 1,206,882 Total other financing sources [uses] 2,836,070 2,000,000 Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses] 576,274 3,037,748 Unreserved fund balance, January 1 1,089,325 1,089,325 Unreserved fund balance, December 31 1,665,599 $ 4,127,073 Reconciliation to GAAP Taxes receivable 3,121,345 Deferred revenue [3,062,827) GAAP Fund Balance, December 31 $ 1 i7241117 See independent auditor's report on the financial statements. 91 Final $ 3,337,038 55,000 314,918 1,546,000 1,744,792 6,997,748 3,196,000 1,327,000 1,437,000 5,960,000 1,037,748 2,000,000 2,000,000 3,037,748 1,089,325 $ 4,127,073 Variance with Final Budget Positive [N§9ative) $ [326,124] [7,683] 10,356 [34,721] [1,744,792) [2,102,964) [1,967,995] [610,284] 1,437,000 [53,301) [1,194,580) [3,297,544) [370,812] 1,206,882 836,070 [2,461,474] $ [2,461,474] 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, 2020 Budgeted Amounts Actual Original Revenues Charges for services $ 3,289,574 $ 3,450,000 Miscellaneous 32,720 Total revenues 3,322,294 3,450,000 Expenditures Public works 2,520,556 3,109,733 Total expenditures 2,520,556 3,109,733 Excess [deficiency] of revenues over [under] expenditures 801,738 340,267 Other financing sources [uses] Transfers [out] [659,200] [417,350] Total other financing sources [uses] [659,200] [417,350] Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses] 142,538 [77,083] Unreserved fund balance, January 1 4,448,687 4,512,595 Unreserved fund balance, December 31 $ 4,591,225 $ 414351512 See independent auditor's report on the financial statements. 92 Final $ 3,450,000 3,450,000 3,109,733 3,109,733 340,267 [417,350) [417,350) [77,083] 4,512,595 $ 4,435,512 Variance with Final Budget Positive [Negative] $ [160,426] 32,720 (127,706] 589,177 589,177 461 471 [241,850) [241 ,850) 219,621 [63,908) $ 155,713 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, 2020 Budgeted Amounts Actual Original Revenues Charges for services $ 20,071,807 $ 21,976,800 Investment revenue 90,000 Miscellaneous 8,714 5,000 Total revenues 20,080,521 22,071,800 Expenditures Public works 10,463,369 17,112,294 Total expenditures 10,463,369 17,112,294 Excess [deficiency] of revenues over (under) expenditures 9,617,152 4,959,506 Other financing sources [uses] Transfers [out] [6,576,717] [3,889,750] Total other financing sources [uses] [6,576,717] [3,889,750] Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses] 3,040,435 1,069,756 Unreserved fund balances, January 1 13,642,411 12,603,880 Unreserved fund balances, December 31 $ 16,682,846 $ 1316731636 See independent auditor's report on the financial statements. 93 Final $ 21,976,800 90,000 5,000 22,071 ,800 17,112,294 17,112,294 4,959,506 [3,889,750] [3,889,750] 1,069,756 12,603,880 $ 13,673,636 Variance with Final Budget Positive [N§9ative] $ [1,904,993] [90,000] 3 714 [1,991 ,279] 6,648,925 6,648,925 4,657,646 [2,686,967] [2,686,967] 1,970,679 1,038,531 $ 3,009,210 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET ASSETS -BUDGET AND ACTUAL (NON -GMP BASIS) SANITATION FUND For the Year Ended December 31, 2020 Budgeted Amounts Actual Original Final Revenues Charges for services $ 3,292,501 $ -$ 3,450,000 Miscellaneous 49 Total revenues 3,292,550 3,450,000 Expenditures Public works 2,371,205 3,356,138 Total expenditures 2,371,205 3,356,138 Excess [deficiency] of revenues over [under] expenditures 921,345 93,862 Other financing sources [uses] Transfers [out] [497,350] [417,350} Total other financing sources [uses] [497,350} [417,350] Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses] 423,995 [323,488] Unreserved fund balance, January 1 1,725,597 1,373,911 Unreserved fund balances, December 31 $ 2,149,592 $ -$ 1,0501423 See independent auditor's report on the financial statements. 94 Variance with Final Budget Positive [Negative] $ [157,499] 49 [157,450] 984,933 984,933 827,483 [80,000] [80,000] 747,483 351 ,686 $ 1,099,169 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, 2020 Budgeted Amounts Actual Original Revenues Charges for services $ 581,233 $ 928,400 $ Investment revenue 350 Miscellaneous 101,149 Total revenues 682,382 928,750 Expenditures Recreation 756,004 916,971 Total expenditures 756,004 916,971 Excess [deficiency) of revenues over [under] expenditures [73,622] 11 ,779 Other financing sources [uses] Transfers in 100,000 Total other financing sources [uses] 100,000 Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses] 26,378 11,779 Unreserved fund balance, January 1 21,709 21,709 Unreserved fund balances, December 31 $ 48,087 $ 33,488 $ See independent auditor's report on the financial statements. 95 Final 928,400 350 928,750 916,971 916,971 11,779 11,779 21,709 33,488 Variance with Final Budget Positive [Negative] $ [347,167] [350) 101,149 [246,368] 160,967 160,967 [85,401] 100,000 100,000 14,599 $ 14,599 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, 2020 Budgeted Amounts Actual Original Revenues Charges for services $ 449,926 $ 449,926 $ Investment revenue 2,500 Miscellaneous 3,000 Total revenues 449,926 455,426 Expenditures General government 370,837 430,418 Total expenditures 370,837 430,418 Excess (deficiency) of revenues over [under] expenditures 79,089 25,008 Unreserved fund balance, January 1 1,062,930 933,944 Unreserved fund balances, December 31 $ 1,142,019 $ 9581952 $ See independent auditor's report on the financial statements. 96 Final 449,926 2,500 3,000 455,426 430,418 430,418 25,008 933,944 958,952 Variance with Final Budget Positive [Negative] $ [2,500) [3,000] [5,500] 59,581 59,581 54,081 128,986 $ 183,067 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL (NON -GAAP BASIS) HEAL TH INSURANCE FUND For the Year Ended December 31, 2020 Budgeted Amounts Actual Original Final Revenues Charges for services $ 6,535,830 $ 7,523,584 $ 7,523,584 Investment revenue 5,000 5,000 Miscellaneous 36,427 25,000 25,000 Total revenues 6,572,257 7,553,584 7,553,584 Expenditures General government 5,544,560 6,820,010 6,820,010 Total expenditures 5,544,560 6,820,010 6,820,010 Excess [deficiency] of revenues over [under] expenditures 1,027,697 733,574 733,574 Unreserved fund balance, January 1 2,188,453 2,188,453 2,188,453 Unreserved fund balances, December 31 $ 3,216,150 $ 2,922,027 $ 2,922,027 See independent auditor's report on the financial statements. 97 Variance with Final Budget Positive [Negative] $ [987,754] [5,000] 11,427 [981 ,327) 1,275,450 1,275,450 294,123 $ 294,123 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, 2020 Budgeted Amounts Actual Original Final Revenues Charges for services $ 1,267,477 $ 1,498,644 $ 1,498,644 Investment revenue 40 40 Miscellaneous 5,753 2,500 2,500 Total revenues 1,273,230 1,501,184 1,501 ,184 Expenditures General government 1,194,150 1,546,186 1,546,186 Total expenditures 1,194,150 1,546,186 1,546,186 Excess [deficiency] of revenues over [under] expenditures 79,080 [45,002] [45,002] Other financing sources [uses] Transfers in 80,000 80,000 80,000 Total other financing sources [uses] 80,000 80,000 80,000 Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses] 159,080 34,998 34,998 Unreserved fund balance, January 1 154,658 154,658 154,658 Unreserved fund balance, December 31 $ 313/38 $ 189,656 $ 189,656 See independent auditor's report on the financial statements. 98 Variance with Final Budget Positive [Negative] $ [231,167] [40] 3,253 [227,954] 352,036 352,036 124,082 124,082 $ 1241082 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 , 2020 Workers' Compensation Health ASSETS Reserve Insurance Current assets: Cash and investments $ 1,142,019 $3,216,251 Inventory and prepaid supplies Total current assets 1,142,019 3,216,251 Capital assets: Capital assets Less: accumulated depreciation Total capital assets Total assets 1,142,019 3,216,251 Deferred outflows of resources: KPERS OPEB deferred outflows of resources Pension deferred outflows of resources Total deferred outflows of resources Total assets and deferred outflows of resources $ 1,142,019 $3,216,251 Liabilities: Current liabilities (payable from current assets): Accounts payable $ -$ 100 Current portion of compensated absences payable Current portion of accrued claims payable 183 446 605,000 Total current liabilities (payable from current assets) 183 446 605,100 Noncurrent liabilities: Compensated absences payable Accrued claims payable 263,049 Net KPERS OPEB obligation Net pension liability Total noncurrent liabilities 263,049 Total liabilities 446 495 605,100 Deferred inflows of resources KPERS OPEB deferred inflows of resources Pension deferred inflows of resources Total deferred inflows of resources Total liabilities and deferred inflows of resources $ 446,495 $ 605,100 Net Position Invested in capital assets, net of related debt $ -$ - Unrestricted 695,524 2,611,151 Total net position $ 695,524 $2,611,151 See independent auditor's report on the financial statements. 100 Total Internal Central Service Garage Funds $359,389 $4,717,659 101,219 101 ,219 460,608 4,818,878 168,234 168,234 153,963 153,963 14,271 14 271 474,879 4,833,149 2,507 2,507 47,470 47,470 49,977 49,977 $524,856 $4,883,126 $ 45,650 $ 45,750 13,919 13,919 788,446 59,569 848,115 16,382 16,382 263,049 8,723 8,723 187,907 187,907 213,012 476,061 272,581 1,324,176 1,251 1,251 8,395 8,395 9,646 9,646 $282,227 $1,333,822 $ 14,271 $ 14,271 228,358 3,535,033 $242,629 $3,549,304 CITY OF SALINA, KANSAS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION INTERNAL SERVICE FUND For the Year Ended December 31, 2020 Workers' Compensation Health Central Reserve Insurance Garage Operating revenues Charges for services $ 449,926 $ 6,535,830 $ 1,267,477 Miscellaneous 36,427 5,752 Total operating revenues 449,926 6,572,257 1,273,229 Operating expenses General government 505,760 5,660,142 1,225,572 Depreciation 362 Total operating expenses 505,760 5,660,142 1,225,934 Operating income [loss] [55,834] 912,115 47,295 Nonoperating revenues [expenses] Investment revenue Total other operating revenues [expenses] Income [loss] before transfers [55,834] 912,115 47,295 Transfers from [to] other funds Transfers in 80,000 Total transfers 80,000 Change in net position [55,834] 912,115 127,295 Net position, January 1 751,358 1,699,036 115,334 Net position, December 31 $ 695,524 $ 2,611,151 $ 242,629 See independent auditor's report on the financial statements. 101 Total Internal Service Funds $ 8,253,233 42,179 8,295,412 7,391,474 362 7,391,836 903,576 903,576 80,000 80,000 983,576 2,565,728 $ 3,549,304 CITY OF SALINA, KANSAS COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended December 31, 2020 Workers' Compensation Health Reserve Insurance Cash flows from operating activities Cash received from customers and users $ 584,849 $6,651,412 Cash paid to suppliers of goods or services [506,685] [5,660,042] Cash paid to employees Other operating receipts 36,427 Net cash provided by [used in] operating activities 78164 1,027,797 Cash flows from investing activities Interest received Cash flows from noncapital financing activities Transfers in Net cash provided by [used in] noncapital financing activities Net increase [decrease] in cash and cash equivalents 78,164 1,027,797 Cash and cash equivalents, January 1 1,063,855 2,188,454 Cash and cash equivalents, December 31 $ 111421019 $3,216,251 See independent auditor's report on the financial statements. 102 Total Internal Central Service Garage Funds $1,267,477 $8,503,738 [919,219] [7,085,946] [274,765] [274,765] 5?52 42,179 79,245 1,185,206 80,000 80,000 80,000 80,000 159,245 1,265,206 200,144 3,452,453 $ 359,389 $4?171659 CITY OF SALINA, KANSAS COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS (Continued) For the Year Ended December 31, 2020 Reconciliation of operating [loss] income to net cash provided by [used in] operating activities Workers' Compensation Health Reserve Insurance Central Garage Total Internal Service Funds Operating income [loss] $ [55,834] $ 912,115 $ 47,295 $ 903,576 Adjustments to reconcile operating income [loss] to net cash provided by [used in] operating activities Depreciation expense [Increase] decrease in inventory [Increase] decrease in deferred outflows Increase [decrease] in accounts payable Increase [decrease] in accrued compensated absences Increase [decrease] in net pension liability Increase [decrease] in KPERS OPEB liability Increase [decrease] in claims payable Increase [decrease] in deferred inflows [925] 134,923 100 115,582 362 26,673 [24,376] 165 [1,145] 31,639 [1,405] 37 362 26,673 [24,376] [660] [1,145) 31,639 [1,405] 250,505 37 Net cash provided by [used in] operating activities $ 78,164 $ 1,027,797 $ 79,245 $ 1,185,206 See independent auditor's report on the financial statements. 103 STATISTICAL SECTION Sd>odule1 Cltyt>f'Salin1,Kan•s Net Position by CompoNinl Last Ten Fiscal Yoar& (accrual basia of 1ocounling) (inOOO's) Fiscal Year = = = ;.gJ.i = = = = = = Amount " Amount " Amount " Amount % Amount .. Amount .. Amo,m .. Amo,mt " Amount " Amount " Governmental activities Net inv■stmant In Cllilpitlil.l Htetll $109,289 93% $112,929 .... $116,585 90% $115,589 90% $ 130,.01 12211 $ 124,1535 108'6 $129,921 100% $144,846 109% $151,527 110% $ 143,559 100II Restricted 1,712 1'6 1,082 1% 1,210 '" 876 '" 1,224 ,,. 1,738 ,,, 2,012 2% 2,366 2% 1,670 ,,, 2,267 2% Uore'itrictlld ~ ... ___Mil 5% 11628 "" ~ "" (24 822) ·'-3% ~ .... ~ -7" ~ ·10'l6 (14,839) -11% ~ -111 Total governmental ■clivities n■t potition $117334 1()()'6. 511952:Z ,oc.m ~ 100'II $127 878 100CM, S 106703 100'II S 110868 100% $123701 100% $133453 100% S 138358 100'6 $ 144081 100'6 &..in""VP& actiYitin t'Mt lnvNtmetlt ln cepitlll _,. $ 44,227 ""' S 50,857 ""' S 67,103 75" $ 81,721 75" $ 88,107 ,.,,. $ 82.-427 71% $ 63,316 "" $62.360 .... S 83,301 .... 83,742 .. ,. ·-1,553 2" 1,553 2% 1,553 211 1,512 2" 1,512 2" 1,512 2" 1,512 ,.,. 1,512 "" 1,368 1'6 1,175 '" u..-, ~ 35" 21450 -17784 23'6 19545 24% ~ , ... 23,821 27'6 24255 27'6 ~ -2",883 3111 ~ 33% Total busfnua-type acti'ililiH 100% ·-S 76450 100% ~ '""" ~ 100'6 ~ 100'6 ~ 100!I S 90383 100% net position $ 70,306 $ 73860 ~ 10011 $ 96610 100% Primary go,..emment Net lrweltrnent in capital assets $153,516 62'6 $163,766 .... $173,688 8411 $177,311 .... $ 198,508 10311 $ 187,082 92% $193,237 ., .. $207,213 93" $214,828 .... • 207,301 .. .. RHlrictod 3,216 2" 2,636 ,., 2,763 111 2,388 '" 2,736 '" 3,250 2% 3,524 2% 3,878 2% 3,038 ,,, 3.442 111 Unreslrictad 30,867 ,.,. 28981 14% 29422 14% 30959 15% ~ -611 ~ ... 16,023 6'6 ~ ... 14044 "" ~ 12" Totalprlmarygo,..emmantnet po&ltion $187599 100'HI $193 382 100% $205873 100'6 $210658 100% $ 191 932 100% S 203428 100,S $212764 100% $223835 100% $ 231 Q10 100% $ 240,691 100II Souroa: City of Sa~na Comprahansivll Annual Financial Ra ports, 2011 • 2020 104 Expenses Govemmental activities: General government Public safety Public works Public health and sanilation Culture and recreation Planning and development Interest on long tenn debt Total governmental activities expenses Business-type activities: Solid waste disposal Water and sewer Sanitation Golf course Tolal business-type activities expenses Total primal)' government expenses Program Revenues Govemmenlal activities: Charges for services General government Public safety Public works Public health and sanilation Culture and recreation Planning and development Operating grants and contibutions Capita! grants and contributions Total govemmental activities program revenues Business-type activities: Charges for services Solid waste disposal Water and sewer Sanitation Gotf course Operating grants and contributions Capital grants and contributions Total business-type activities program revenues Total primary government program revenues Net (Expense) Revenue Governmental activities Business-type adivities Total primary government net expense Schedule2 City of Salina, Kansas Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) (in OOO's) Fiscal Year 2011 2012 2013 ~ 2015 ~ 2017 2018 2019 2020 s 13,614 $ 11,278 $ 10,978 $ 12,175 $ 10,743 $ 9,188 $ 9,780 $12,013 $10,866 $10,395 16,579 19,066 19,649 20,206 21,064 22,232 23,120 23,892 25,356 24,672 9,858 10,957 11,064 11,401 9,049 9,773 10,345 10,456 10,529 10,511 1,368 1,383 1,369 347 995 1,095 1,126 1,256 1,156 1,323 6,693 5,338 4,809 5,156 6,517 6,612 6,880 7,040 6,879 5,034 3,450 3,362 3,399 3,236 1,915 2,047 1,835 2,369 2,522 2,004 __.lMQ_ --1..fili ~ ______!_&11 ____Lill_ ~ -----1..ill. ---2.lll ~ 2,350 55,212 53,298 53,221 54,340 52,077 53,918 54811 59,145 59479 56,288 2,945 2,067 3,532 1,867 1,768 2,335 2,365 2,362 2,671 2,056 13,597 14,897 15,418 14,938 11,712 14,807 15,650 15,190 14,551 13,386 2,261 2,441 2,237 2,399 1,909 2,043 2,178 2,419 2,313 2,526 ~ __m __.1§§_ ___fil ~ ~ 852 ~ ____J!fil!. ______!!Q§. 19,628 20,128 21,955 20,041 16,208 19 977 21,045 20,917 20,623 18773 $ 74,840 $ 73,426 $ 75,176 $ 74,381 S 66,285 $ 73,895 $ 75,856 $ 80,062 $ 80,102 $75,061 $ 6,106 $ 6,326 $ 5,548 $ 5,662 $ 3,151 $ 3,134 $ 3,470 $ 3,569 $ 3,401 $ 3,339 3,786 4,290 4,656 4.222 4.600 4,691 4,601 4,815 4,357 4,325 262 306 277 255 193 238 348 285 309 294 43 46 34 46 46 44 50 47 46 49 3,140 1,728 1,466 1,533 1,501 1,638 1,541 1,545 1,514 279 153 156 161 167 73 140 91 150 104 113 2,907 4,495 4,200 4,015 3,394 4,332 4,541 4,299 4,540 4,714 ~ 16,377 17,351 16,342 15,900 12,958 --1fil22. 14642 14 710 14271 -1.1.ill. 2,904 3,137 3,138 3,024 2,519 2,795 3,165 3,097 3,082 3,290 17,904 19,099 17,938 18,742 19,059 19,322 19,855 20,202 20,510 19,449 2,334 2,462 2,514 2,553 2,529 2,751 2,885 3,006 3,325 3,194 636 783 719 811 820 789 798 756 810 581 202 ____MQi _.lli __ 11_5 ---27784 25,755 24,309 25,245 24,927 25,657 26,703 27,061 27,727 26,513 $ 44,161 ~ $ 40,651 $ 41,145 $ 37,885 $ 40,807 $ 41,345 $41,771 $ 41,998 $39,628 $ (38,835) $ (35,947) $ (36,879) $ (38,440) $ (39,119) $ (38,768) $ (40,169) $(39,600) $(45,208) $(43,173) ~ _.Mll. ~ ~ ~ ~ ~ _§J_il ~ -----1.W. $ (30,679) $ (30,320) $ (34,525) $ (33,236) $ (30,400) $ (33,088) $ (34,511) $(33,657) $(38,105) $(35,433) General Revenues and Other Changes In Net Position Governmental activities: Taxes Property taxes, general purpose $ 7,783 $ 6,272 $ 8,031 $ 6,315 s 6,242 $ 8,196 $ 9,101 $ 8,623 $ 9,708 $10,308 Property taxes, debt service 2,779 2,439 2,362 2,578 2,766 3,022 2,487 2,457 2,664 3,058 Motor vehicle taxes 1,150 1,153 1,200 1,250 1,312 1,370 1,372 1,428 1,403 1,520 Sales tax, general purpose 11,767 12,165 12,260 12,669 12,931 12,781 12,906 13,292 13,419 13,697 Selective sales tax 4,080 4,210 4,281 4,461 4,558 4,901 8,832 8,917 9,323 9,751 Other taxes 6,390 6,486 6,630 7,231 7,363 7,991 6,900 7,241 6,975 6,117 Investment revenues 77 66 67 98 86 148 92 163 670 286 Miscellaneous 872 660 9,918 1,160 2,371 5,842 2,003 1,062 1,168 8,328 Transfers, net -----1.!!!!. __ 3_0 ~ _.ill ~ ~ ~ ~ ___!l!!1, ~ Total governmental activities 35,097 35,481 45 748 38,569 43,448 47,851 48,002 48,034 -2!!.1.11 56,199 Business-type activities: Investment revenues 84 79 49 51 56 78 129 233 4 Miscellaneous 330 434 279 97 103 153 646 446 Reimbursements 180 132 79 Transfers, net ~ _JW ~ ~ __@,W ___fil§Z) _J1&ll) ~ ~ Total business-type activities ___lli ~ ~ ~ ~ ___Q,fil) ~ ~ ~ ~ Total primary government $ 35,312 ~ $ 45,126 $ 38,897 $ 39,855 $ 44427 $ 43,867 $ 43,589 $46,176 ~ Change In Net Position Governmental activities $ (3,738) $ (466) $ 8,869 $ 129 $ 4,329 $ 9,083 $ 7,833 8,233 4,902 15,026 Business-type activities ___Jill! ~ ______i,m_ ~ ~ ~ ----1fil ~ ~ 3,058 Total primal)' government S 4,633 $ 5 644 $ 10,601 $ 5,861 $ 9,455 $ 11,339 $ 9,356 $ 9931 S 8,071 $18,084 Source: City of Salina Comprehensive Annual Financial Reports, 2011 -2020 105 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) 2012 ~ 2014 ~ 2016 2017 2018 £!ill! 2020 !Note 2l General Fund Nonspendable $ 90 $ 116 $ 81 $ 107 $ 111 $ 131 $ 153 $ 152 $ 212 $ 184 Restricted Committed Assigned 293 540 331 239 199 136 214 340 274 244 Unreserved/unassigned ~ -----2,ill. ~ ~ ~ ~ 6 516 6,251 8,821 14 714 Total general fund $ 3,837 $ 3,828 $ 3,550 $ 4,254 $ 4,640 $ 5,032 $ 6,883 $ 6,743 $ 9,307 $ 15,142 Restatement Restated fund balance All other governmental funds Nonspendable $ $ $ $ $ $ $ $ $ $ Restricted 3,611 3,319 3,446 2,910 2,793 3,142 4,191 4,648 5,224 4,980 Committed 127 (516) 7,486 9,886 8,695 14,284 10,072 7,325 8,086 13,225 Assigned 4,323 4,087 3,146 1,280 619 1,043 641 1,227 963 1,965 U nreserved/u nassig ned .....ilQ2W ~ (28) (852) (Z,804) (4,028) Total all other governmental funds $ 8,061 $ 6,890 $ 14 078 $ 14,076 $ 1,570 $ 11,646 $ 14,876 $ 12,348 $ 6,469 $ 16,143 Note 1: Prior year amounts have not been restated for the implementation of GASB Statement 54 in fiscal year 2011. Note 2: Committed fund balance Increased due to changes from the implementation of GASB Statement 84 in fiscal year 2020. Source: City of Salina Comprehensive Annual Financial Reports, 2011 -2020 106 Schedule 4 City of Salina, Kansas Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (in OOO's) Fiscal Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Revenues Taxes (see Schedule 5) $ 33,949 $ 34,724 $ 34,764 $ 36,523 $ 37,171 $ 38,261 $ 41 ,597 $ 41 ,958 $ 43,492 $44,452 Intergovernmental 2,901 4,487 4,192 4,008 3,385 4,325 4,536 4,297 4,573 5,317 Special assessments 1,535 2,315 1,706 1,810 1,679 1,669 1,539 1,546 1,596 1,511 Licenses and permits 6 8 9 7 10 7 6 3 4 5 Charges for services 9,730 8,484 8,536 8,276 6,416 6,953 6,880 7,338 6,804 5,557 Investment revenue 69 47 40 59 47' 142 79 157 670 286 Reimbursements 32 36 9,015 123 491 1,406 Donations 241 83 141 111 238 90 129 Miscellaneous 599 537 810 799 1,853 4,315 1 851 884 1,545 5,656 Total revenues 48,821 501638 59,072 ~ 51,135 57,219 56 599 56,421 58 774 62,913 Expenditures General government 3,461 3,574 4,269 3,986 5,342 5,422 5,423 5,649 4,582 5,506 Public safety 18,118 18,564 19,155 19,559 21,268 21,664 21,629 22,953 23,692 22,435 Public works 6,569 7,004 7,220 7,443 5,333 5,778 6,048 6,162 6,136 6,082 Public health and sanitation 1,330 1,343 1,344 319 982 1,078 1,097 1,236 1,121 1,280 Culture and recreation 5,900 4,449 3,939 4,292 5,659 5,817 6,143 6,255 6,047 4,245 Planning and development 3,344 3,256 3,293 3,232 1,910 2,042 1,801 2,185 2,311 1,794 Miscellaneous 1,354 Capital outlay 9,847 7,327 13,047 11,009 25,527 24,001 18,281 16,344 21,913 12,041 Debt service Principal 4,411 8,592 5,038 5,261 6,250 17,902 5,088 14,243 10,324 5,164 Interest 2,084 2,103 1,867 1,864 1,833 3,152 1,771 2,192 2,136 2,366 Deposit to escrow __ 9_2 Total expenditures 55,064 56,304 59,172 56,965 74104 86,856 67 281 77,219 78,262 62,267 Other financing sources (uses) Bonds and notes issued 6,565 6,150 5,690 5,365 6,825 34,892 11,490 8,090 11,090 8,720 Bond and note premium 23 60 185 302 369 1,503 95 70 443 468 Transfers in 7,994 3,488 4,907 3,001 7,642 7,065 8,339 13,462 9,714 9,323 Transfers out (5,692) (3,458) (3,907) (2,999) (3,913) (3,555) (4,160) (4,186) (5,073) (4,271) Issuance costs Other 156 Total other financing sources (uses) ~ ~ ~ ~ 10,923 39,905 15 764 17 436 16,174 14,241 Net change in fund balance $ 2,803 !...__fil $ 6,775 ~ $ (12,046) $ 10,268 $ 5,082 $ (3,362} $ (3,314) $ 141887 Debi service as a percentage of non-capital expenditures 17% 28% 18% 18% 20% 50% 16% 37% 28% 18% Source: City of Salina Comprehensive Annual Financial Reports, 2011 -2020 107 Schedule 5 City of Salina, Kansas Tax Revenues by Source, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (in OOO's) Fiscal Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Real estate $ 10,288 $ 10,466 $ 10,145 $ 10,657 $ 10,729 $ 10,972 $ 11,377 $ 10,804 $ 12,182 $ 13,150 Delinquent 274 245 248 235 279 246 210 276 190 216 Motor vehicle 1,150 1,153 1,200 1,250 1,312 1,370 1,372 1,428 1,403 1,520 General sales 11,767 12,165 12,260 12,689 12,931 12,781 12,906 13,293 13,419 13,697 Selective sales 4,080 4,210 4,281 4,461 4,558 4,901 8,832 8,917 9,323 9,751 Other taxes 6 390 6485 6 630 7 231 7 362 7,991 6 900 ~ 6,975 6,117 Total taxes $ 33,949 $ 34,724 $ 34,764 $ 36,523 $ 37171 $ 38,261 $ 41 597 ~ $ 43,492 $ 44 452 Source: City of Salina Comprehensive Annual Financial Reports, 2011 -2020 108 Schedule 6 City of Salina, Kansas Assessed and Estimated Actual Value of Taxable Property last Ten Fiscal Years Assessed Value Ratio of Fiscal Estimated Total Assessed (Budget) Personal Total, Excluding Motor Vehicle Total, Taxable Market Value Value to Est. Year Real Estate Proe!:!!i°: State Assessed Motor Vehicles Tax Rate {Note 1) Assessed Value (Note2! Market Value 2011 $ 367,750,803 $ 19,918,188 $ 14,685,585 $ 402,354,576 26.022 $ 50,330,252 $ 452,684,828 $2,884,188,981 15.70 2012 $ 369,416,422 $ 18,654,394 $ 15,TT9,466 $ 403,850,282 26.272 $ 47,553,744 $ 451 ,404,026 $2,889,385,914 15.62 2013 $ 370,390,092 $ 17,769,120 $ 16,948,264 $ 405,107,476 26.927 $ 48,882,411 $ 453,989,887 $2,917,267,724 15.56 2014 $ 376,131,346 $ 13,652,885 $ 17,670,147 $ 407,454,378 27.080 $ 48,865,900 $ 456,320,278 $2,957,531,741 15.43 2015 $ 381,087,426 $ 12,607,815 $ 18,984,453 $ 412,679,694 27.311 $ 50,350,566 $ 463,030,260 $2,957,531,741 15.66 2016 $ 389,872,825 $ 11,653,719 $ 19,323,055 $ 420,849,599 27.603 $ 51,833,505 $ 472,683,104 $2,964,464,111 15.94 2017 $ 399,918,216 $ 10,900,308 $ 19,671,685 $ 430,490,209 26.129 $ 50,970,796 $ 481,461,005 $3,097,885,103 15.54 2018 $ 403,835,383 $ 10,130,718 $ 20,485,144 $ 434,451,245 28.394 $ 53,336,6TT $ 487,787,922 $3,150,409,123 15.48 2019 $ 421,108,311 $ 11 ,245,813 $ 22,113,195 $ 454,467,319 29.720 $ 54,687,311 $ 509,154,630 $3,294,115,685 15.46 2020 $ 423,573,121 $ 9,353,057 $ 23,436,340 $ 456,362,518 30.650 $ 54,589,132 $ 510,951,650 $3,326,521,997 15.36 Note 1: The tax rate for motor vehicles is set based on the average countywide tax rate. The City of Salina then receives a share of that based on tax effort. Note 2: The estimated market value excludes the value of the State assessed properties. Market value information is not available for those properties. However, state assessed property is generally assessed at 33% Of market value, except for railroads, which are assessed at 15% of market value. Note 3: The Direct rate is expressed in dollars per thousand dollars of assessed value. Source: Saline County Clerk 109 Citv of Salina Fiscal Debt Total (Budget) Operating Service City Year Millage Millage Millage 2011 19.236 6.786 26.022 2012 20.326 5.946 26.272 2013 20.242 5.948 26.190 2014 20.539 6.388 26.927 2015 20.692 6.388 27.080 2016 19.950 7.361 27.311 2017 21.694 5.909 27.603 2018 20.339 5.790 26.129 2019 22.285 6.109 28.394 2020 22.908 6.812 29.720 Source: Saline County Treasurer Schedule 7 City of Salina, Kansas Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (rate per $1,000 of assessed value) Saline Countv Debt Total Operating Service County Operating Millage Millage Millage Millage 31 .432 31 .432 45.818 32.576 32.576 47.127 34.823 34.823 47.133 37.895 37.895 46.599 38.047 38.047 44.088 38.275 38.275 44.465 37.508 37.508 44.069 37.321 37.321 45.130 38.437 38.437 46.776 41.097 41 .097 44.761 USD 305 (2) Other /1) Debt Total Service USD Millage Millage Other Total 13.095 58.913 12.131 128.498 11.693 58.820 11.989 129.657 11.516 58.649 12.135 131.797 11 .517 58.116 12.941 135.879 11 .517 55.605 13.305 134.037 11.655 56.120 13.293 134.999 11.674 55.743 13.299 134.153 11 .371 56.501 13.189 133.140 10.746 57.522 13.988 138.341 10.747 55.508 13.983 140.308 (1) The "Other" column includes the State of Kansas, the Salina Airport Authority, the Salina Public Library and Kansas State Extension District #3. (2) A small portion of Salina is covered by USD 306, USO 307, or USD 400. Total Tax Rates are different in the areas covered by these jurisdictions. 110 Taxpayer Evergy (Westar Energy (Westem Resources) SFC Global Supply Chain, Inc. (Schwan's) Kansas Gas Service RAF Salina LLC S&B Motels Central Mall Realty Holding LLC Union Pacific Menard Inc. Individual Sams Real Estate Business TrusWValmart Wal-mart Real Estate Business Trust Great Plains Manufacturing Gateway Properties Southwestern Bell Sunflower Senk Salina Regional Health Center Combined Valuation of the Ten Largest Taxpayers City Valuation Percent ofTotal City Assessed Valuation Source: Saline County Cler1<'s Office or recent OS Type of Business Utility P'IZZa Manufacturing Utility Retail Shopping Mall Motel Regional Shopping Center Railroad Home Improvement Residential Discount Retail Stores Discount Retail Stores Manufacturing Shopping Mall (Midstate) Telephone Utility Banking Institution Schedule B City of Salina, Kansas Principal Property Taxpayers Current Year and Ten Years Ago 2011 (2010 Assessed Value] Assessed % of Total Valuation Valuation Rank $ 5,575,032 1.39% 8,589,167 2.15% 3,622,225 0.90% 6,254,013 1.56% N/A 3,587,574 N/A 0.00% N/A N/A 2,247,083 NIA NIA 3,468,733 0.87% 2,879,602 0.72% 0.00% 3,107,097 0.78% 0.00% Hospital and Medical Offices 5,589,420 1.40% $ 44 919 946 $ 400,248,283 11.22% 111 2020 !2019 Assessed Value! Assessed % of Total Valuation Valuation Rank 4 $ 13,682,027 #OIV/0! 1 1 6,855,966 #DIV/0! 2 7 4,415,353 #DIV/0! 3 2 4,296,499 #DIV/0! 4 3,774,927 #DIV/0! 5 2,868,321 #DIV/0! 6 2,570,668 #DIV/0! 7 2,465,098 #DIV/0! 8 2,440,724 #DIV/0! 9 2,286,508 #DIV/0! 10 5 10 6 8 9 3 $ 45,656,091 $ #DIV/0! Schedule 9 City of Salina, Kansas Property Tax Levies and Distributions Last Ten Fiscal Years Current Year Tax Distributions Total Tax Distributions Fiscal (Budget) Taxes Levied for Delinquent Percentage Year the fiscal lear Amount Percentaae Collections (1) Amount of levy 2011 $ 10,415,491 $ 10,287,770 98.8% $ 273,843 $10,561,613 101.4% 2012 $ 10,570,420 $ 10,411,299 98.5% $ 245,086 $10,656,385 100.8% 2013 $ 10,550,730 $ 10,145,404 96.2% $ 354,845 $10,500,249 99.5% 2014 $ 10,868,225 $ 10,776,688 99.2% $ 62,432 $10,839,120 99.7% 2015 $ 10,991,959 $ 10,460,246 95.2% $ 372,726 $10,832,972 98.6% 2016 $ 11,209,245 $ 10,984,630 98.0% $ 184,970 $11,169,600 99.6% 2017 $ 11,564,876 $11,320,197 97.9% $ 203,904 $11,524,101 99.6% 2018 $ 11,248,278 $ 10,938,457 97.2% $ 276,340 $11,214,797 99.7% 2019 $ 12,335,808 $ 12,097,740 98.1% $ 189,587 $12,287,327 99.6% 2020 $ 13,506,590 $ 13,203, 183 97.8% $ 216,358 $13,419,541 99.4% (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 112 City Direct Tax Rate General Special purpose County-wide Tax Rate Portion of County-wide tax allocated to City (July Percentage) 2011 0.50% 0.40% 1.00% 63.34% Schedule 10 City of Salina, Kansas Direct Sales Rate by Taxing Entity Last Ten Fiscal Years Fiscal Year 2012 2013 2014 2015 2016 0.50% 0.50% 0.50% 0.50% 0.50% 0.40% 0.40% 0.40% 0.40% 0.40% 1.00% 1.00% 1.00% 1.00% 1.00% 61.72% 60.86% 60.23% 60.28% 60.28% 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. 2017 2018 0.50% 0.50% 0.75% 0.75% 1.00% 1.00% 60.28% 59.85% In May, 2016, the voters approved an increase in the Special Purpose Tax rate from .40% to .75%, to be effective October 1, 2016. Source: Kansas Department of Revenue 113 2019 2020 0.50% 0.50% 0.75% 0.75% 1.00% 1.00% 60.33% 60.17% Schedule11 City of Selina, Kansas water Sali,s by Cli:iss of Customer Last Ten Fiscal Years 2012 2013 2014 2015 2016 2017 2018 2019 2020 #Accls wa1o, #Accls Water #Accts Water ·-Water #Acc:ts w,,., #Acds Water ·-Water ·-Waler #Aods wa,., Rate Class Billed Sold Billed Sold Billed Sold B"lled Sold B~led Sold B~led Sold Billed Sold Billed Sold BUled Sold Residential 17,893 1,225,931 17.968 989,788 18,042 1,003,100 1B,086 sa7,540 18,125 950,697 18,124 988,572 18,130 963,387 18,155 864,810 18,238 965,782 Commercial 1,565 38,547 1,579 348,968 1,599 353,675 1,600 350,767 1,603 345,232 1,606 345,250 1,614 340,960 1,607 352,051 1,612 319,080 Industrial 42 174,595 40 182,529 42 193,233 44 202,407 44 191,236 44 193,503 44 211,643 44 196,229 43 164,768 Government 99 54,618 99 46,484 97 45,346 97 41.928 99 45,136 99 41,552 98 35,932 97 41,911 94 28,200 Apartment 189 70,263 168 67,155 \06 60,865 164 61,400 183 57,039 163 58,378 157 71,559 157 62,127 158 58,651 Schools 81 57,027 84 44,187 84 45,328 85 45,545 85 41,176 63 36,039 81 30,610 79 31,839 78 24,518 Industrial special 1 40,448 1 20,439 Consumed in production 12 19,266 12 18,685 12 19,264 12 17,338 9 9,580 8 9,852 7 6,966 7 6,974 7 4,109 Rural water 1 25,930 1 21,530 22,993 1 21,915 1 23,384 1 25,624 1 22,345 1 21,663 1 31,776 Hospitals 10 17,896 9 26,482 10 32,184 9 31,858 9 33,726 ' 35,132 9 31,858 9 29,892 9 29,463 Religious/nonprofit 38 5,399 37 4,810 37 4,973 37 4,986 36 5,224 36 4,749 36 4,456 35 2,780 35 2,215 other laxable deductions Engineering studies 6,104 6 6,822 B 5,095 4,807 7 4,573 4,n2 7 4,471 3,835 2,553 Providing lalCable service 6,118 2 3,495 1 3,561 3,167 1 3,921 1 3,347 1 2,331 2,676 1,909 Sale of component parts 5,726 B 5,972 B 6,850 3,900 4 3,129 4 2,917 4 2,190 1,542 1,310 Firehydranl 2,533 3 1,922 2 1,474 3 1,727 3 1,790 3 2,829 1,1B0 2,106 Industrial consumed in produdlon 3 3,543 3 4,417 3 3,sas 3 2,366 3 1,930 3 1,962 3 2,107 2,219 3 1,946 Sales of farm equipment 1 B3 1 107 1 48 1 63 1 54 1 104 1 SB 124 1 109 19937 1 754,027 20018 1793771 20111 1801 577 20163 1 779999 20193 1.717766 20192 1,753 343 20 196 1 7341098 20 2:10 1,621,853 20 ~9~ 1638511 Weier Rate Schedule: Monthly meter charge (5/8~) $4.74 $4.88 $5.0J $5.20 55.36 $5.52 $5.74 $5.94 $6,15 Commodity charge {per 000 gal.): 0-2000gal. $3.88 $4.04 $4.24 $4.45 $4.48 $4.77 $4.96 $5.13 $5.31 2001 -10,000 gal 0Yllr10,000gal. Excess use charge $7.76 $8.08 $8.48 $8.00 $9.16 $9.54 $9.92 $10.26 $10.62 Wastewater Rate Sctiedule: Monthly base charge $6,77 $6,97 $7.11 $7.22 $7.36 $7.51 $7.81 $8.08 $8.36 Unit cost (per 000 gal.): $4.61 $4.79 $4.94 $5.01 $5.19 $5.29 $5.51 $5.70 $5.90 Water sold Is expressed In thousands or gallons. Number of Accounts billed is the annual number of billings for each class divided by 12. Monthly meter charge increases with the size oft:,e meler. Residential wastewater is calculated based on Winier Quarter water oonSJmption. other accounts are based on monthly water consumplion. 2008 Water Consumption Rate Structure changed from a decreesl~g tier structure to one rate and Excess Use Charge which Is double the consumption rale Source: City of Sanna Weter Customer Accounting omoe. 114 Governmental Activities General Obligation Fiscal Year Bonds Loans Palable Cae!tal Lease Temeora!}: Notes 2011 S 55,225,670 $ $ $ 3,400,000 2012 $49,109,575 $ $ $ 1,465,000 2013 $49,631,797 $ $ $ 3,800,000 2014 $50,033,555 $ $ 176,235 $ 5,000,000 2015 $50,840,632 $ $ 479,366 $ 5,995,000 2016 $51,816,399 $ 12,157,127 $ 321,174 $ 11,505,000 2017 $55,994,305 $ 12,171,090 $ 157,868 $ 6,811,742 2018 $51,968,310 $ 12,185,053 $ $ 18,123,505 2019 $54,607,702 $ 12,640,000 $ $ 11,170,000 2020 $56,587,549 $ 12,640,000 $ $ 7,050,000 Source: City of Salina Comprehensive Annual Financial Reports, 2011 -2020 Schedule 12 City of Salina, Kansas Ratio of Outstanding Debt by Type Last Ten Fiscal Years Business-T)'.Ee Activities General Water Obligation Revenue Bonds Bonds Loans Paiable $ 7,417,907 $16,193,925 $ $ 9,613,926 $ 15,850,228 $ $ 8,519,799 $15,226,532 $ $ 9,587,351 $14,592,836 $ 6,208,102 $ 8,539,773 $13,949,139 $ 5,753,620 $ 7,640,381 $13,285,443 $ 7,432,024 $ 6,520,433 $12,606,747 $ 8,862,810 $ 5,282,578 $11,898,051 $ 10,632,351 $ 4,102,298 $10,330,000 $ 46,354,852 $ 8,742,451 $ 9,615,000 $ 35,926,029 115 Percentage Temporary Total Primary of Personal Notes Government Income $ $ 82,237,502 4.3% $ $ 76,058,729 3.8% $ $ 77,178,128 3.7% $ $ 85,598,079 4.1% $ $ 85,557,530 4.1% $ $ 104,157,548 5.0% $ $ 103, 124,995 4.9% $ $ 110,089,848 4.9% $ $ 139,204,852 6.0% $ $ 130,561,029 5.5% General Obligation Fiscal Year Bonds 2011 $ 62,443,577 2012 $ 58,723,501 2013 $58,151,596 2014 $ 59,620,906 2015 $ 59,380,405 2016 $59,456,780 2017 $62,514,738 2018 $57,250,888 2019 $58,710,000 2020 $ 65,330,000 Schedule 13 City of Salina, Kansas Ratio of Net General Bonded Debt Outstanding Last Ten Fiscal Years General Bonded Debt Outstandin9 Temporary Less: Debt Net General Caeital Lease Notes Total Service Fund Bonded Debt $ 3,400,000 $ 65,843,577 $ 1,236,026 $64,607,551 $ $ 1,485,000 $ 60,208,501 $ 582,412 $ 59,626,089 $ $ 3,800,000 $61,951,596 $ 707,763 $ 61,243,833 $ 176,235 $ 5,000,000 $64,797,141 $ 407,864 $ 64,389,277 $ 479,366 $ 5,995,000 $65,854,771 $ 745,339 $65,109,432 $ 321,174 $ 11,505,000 $ 71 ,282,954 $ 1,248,914 $ 70,034,040 $ 157,868 $ 6,811,742 $ 69,484,348 $ 1,509,863 $67,974,485 $ $ 18,123,505 $75,374,393 $ 1,851,358 $ 73,523,035 $ $ 11,170,000 $ 69,880,000 $ 1,142,418 $68,737,582 $ $ 7,050,000 $ 72,380,000 $ 1,724,117 $ 70,655,883 Source: City of Salina Comprehensive Annual Financial Reports, 2011 -2020 116 Percentage of Actual Taxable Value of PerCaeita 14.3% $1 ,354.26 13.1% $1,241.05 13.4% $1,280.02 13.9% $1,345.17 13.8% $1,361.75 14.5% $1,479.51 13.9% $1,446.45 14.4% $1,564.52 13.5% $1,471.39 #DIV/0! $1,517.85 Schedule 14 City of Salina, Kansas Direct and Overlapping Governmental Activities Debt As of December 31, 2020 Net General Obligation Percentage Bonded Debt Applicable to Jurisdiction Outstandin!;J Ci!X of Salina Direct: City of Salina $ 70,655,883 100.00% Overlapping: Salina Airport Authority 20,175,000 100.00% Saline County 216,812 73.88% USO 305 104,270,000 93.07% Total Overlapping Debt 124,661,812 Total Direct and Overlapping Debt $195,317,695 Per Capita Direct and Overlapping debt Amount Applicable to the City of Salina $ 70,655,883 20,175,000 163,268 101,854,179 122,192,447 $ 192,848,330 $ 4,033.39 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 117 Legal Debt Margin Cak:utation for 2020 Assessed Valuation Debi Limit (30% of Assessed Value) Debt applicable to limit: Total Bonded Debt Less GO Debt Attributable to exempt Purposes Less Revenue Bonds Less Loans Payable Less Fund Balance designated for Debi 8eNlce Total Oebt AppUcable to Limitation Legal debt margin Debt Limit Total net debt applicable to limit Legal debt margin To1al net debt applcable to the limit as a percentage of debt limit 134,396, 160 (8,742,451) (9,615,000) (48,566,029) 11,724,117) $ 65,748,563 $ (65,745,5631 ~ 134,928,191 57,747 032 1111e111se 43% l!ll1 135,421,208 49,309,445 86,111,783 36% Schedule 15 City of Salina, Kansas Legal Debt Margin Last Ten Fiscal Years w.A ~ 136, 196,966 136,896,083 52,724,034 54,625,691 83,472,932 82,270,392 39% 40% 118 Fiscal Year 2015 ,21§ ~ ~ ~ ~ 138,909,078 141,804,931 142,000,537 146,336,377 152,724,804 56,090,293 62,072,485 61,296,184 $68,240,457 S 66,232,649 $ 65,748,563 82,818,785 $ 79,732,446 $80,704,353 $78,095,920 s 86,492,155 s (85,746,563) 40% 44% 43% 47% 43% #DIV/01 Utility Service Fiscal Year Char1;1es 2011 $17,976,508 2012 $19,163,426 2013 $17,974,089 2014 $18,964,164 2015 $19,139,612 2016 $ 19,389,348 2017 $19,958,862 2018 $ 20,382,469 2019 $ 20,842,606 2020 $19,448,780 Schedule 16 City of Salina, Kansas Pledged Revenue Coverage Last Ten Fiscal Years Water/Sewer Revenue Bonds Less Operating Net Available Debt Service Expenses Revenue Princieal Interest $ 11,905,114 $ 6,071,394 $1,580,000 $ 496,760 $ 12,222,431 $ 6,940,995 $ 340,000 $ 596,992 $ 13,373,088 $ 4,601,001 $ 620,000 $ 590,191 $ 12,112,288 $ 6,851,876 $ 630,000 $ 577,791 $ 9,859,974 $ 9,279,638 $ 640,000 $ 565,191 $ 11,800,473 $ 7,588,875 $ 660,000 $ 549,191 $ 13,148,035 $ 6,810,827 $ 675,000 $ 529,391 $ 12,973,621 $ 7,408,848 $ 705,000 $ 509,141 $ 13,269,741 $ 7,572,865 $ 725,000 $ 487,991 $ 12,460,334 $ 6,988,446 $ 715,000 $ 327,117 Source: City of Salina Comprehensive Annual Financial Reports, 2011 -2020 City of Salina Debt Service Schedules 119 Debt Service Coverage 2.92 7.41 3.80 5.67 7.70 6.28 5.65 6.10 6.24 6.71 Per Capita Personal Personal Income, Income Salina Fiscal Year Poeulation (Saline Coun~) (intereolated) 2010 46,180 $ 37,880 $ 1,749,298,400 2011 47,707 $ 40,512 $ 1,932,705,984 2012 48,045 $ 41,762 $ 2,006,455,290 2013 47,846 $ 43,078 $ 2,061,109,988 2014 47,867 $ 43,736 $ 2,093,511,112 2015 47,813 $ 44,065 $ 2, 106,879,845 2016 47,336 $ 44,230 $ 2,093,647,612 2017 46,994 $ 44,732 $ 2,102,135,608 2018 46,994 $ 47,945 $ 2,253,127,330 2019 46,716 $ 49,983 $ 2,335,005,828 2020 46,550 $ 50,820 $ 2,365,671,000 Schedule 17 City of Salina, Kansas Demographic and Economic Statistics Last Ten Fiscal Years Unemployment Labor Force, USO 305 Rate Ci!):'. of Salina Headcount 6.7% 26,379 7,346 6.7% 26,258 7,289 6.3% 26,185 7,305 5.1% 26,441 7,305 5.3% 26,303 7,388 3.9% 26,170 7,369 3.3% 27,684 7,386 2.7% 27,684 7,176 3.3% 30,174 7,180 2.9% 30,094 7,245 3.4% 30,094 7,156 Percentage Free and Per Capita .5 Reduced City .5 cent cent sales Lunch sales tax Tax 57.8% $4,803,553 $ 104.02 58.7% $5,076,751 $ 106.42 59.1% $5,241,205 $ 109.09 60.7% $5,326,723 $ 111.33 61 .3% $5,555,601 $ 116.06 61.8% $5,670,040 $ 118.59 68.7% $5,727,260 $ 120.99 62.1% $5,755,869 $ 122.48 61.7% $5,770,174 $ 122.79 59.2% $5,968,961 $ 127.77 59.0% $5,998,424 $ 128.86 Sources: Increase in per capita Sales Tax (10 years) Population: Kansas Division of the Budget. Increase in per capita Personal Income Employment: Kansas Department of Labor Personal income for Salina is derived from the population and per capita personal income for Saline County Per Capita Personal income as reported by the Bureau of Economic Analysis 2017 Per Capita Personal Income staff projection 2010 -2020 Employment City of Salina USD305 headcount and free and reduced lunch data derived from Kansas Department of Education./USD 305 Budget Document Asao/oof per capita personal income 0.275% 0.263% 0.261% 0.258% 0.265% 0.269% 0.274% 0.274% 0.256% 0.256% 0.254% 22.8% 32.0% Free and Reduced Lunch percentage is an average of the percentages for each building reported. School Data is reported at beginning of school year, eg 2017- 2018 school year is reported as 2017. 120 Emelo~er Salina Regional Health Center Unified School District No 305 Schwan's Global Supply Chain Great Plains Manufacturing Exide Technologies/Stryten Manufacturing City of Salina Salina Vortex Saline County Walmart REV Group Signify Eldorado National Raytheon Aircraft Total Source: Salina Chamber of Commerce Schedule 18 Ctty of Salina, Kansas Principal Employers Current Year and Nine Years Ago T~e!! of Business Emelo~ees Health Care 1082 Public School System 935 Frozen Pizza Manufacturing 1850 Agricultrual & Landscaping Equipment 650 Automotive Battery Manufacturer 800 City Government 493 Manufacturing County Government 277 Retail Manufacturing Fluorescent Lamps 600 Susses/Recreational Vehicle 255 Aircraft Manufacturing 6,942 121 2011 2020 Percentage of Percentage of Rank Labor Force Emelo)'ees Rank Labor Force 2 4.1% 1,875 6.2% 3 3.5% 1,500 2 5.0% 1 7.0% 1,200 3 4.0% 5 2.5% 1,200 4 4.0% 4 3.0% 700 5 2.3% 7 1.9% 425 6 1.4% 385 7 1.3% 8 325 8 1.1% 250 9 0.8% 175 10 0.6% 6 2.3% 9 1.0% 10 0.0% 26.4% 8035 26.7% GOVERNMENTAL AUDIT SECTION CITY OF SALINA, KANSAS SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31, 2020 Federal Grantor/Pass-Through Grantor/Proqram Title U.S. Department of Housing and Urban Development Fair Housing Assistance Program Passed Through the Kansas Department of Commerce: Community Development Block Grants/Entitlement Grants Cluster: Community Development Block Grants/Entitlement Grants Total Community Development Block Grants/Entitlement Grants Cluster Passed Through the Kansas Housing Resources Corporation: Emergency Solutions Grant Total U.S. Department of Housing and Urban Development U.S. Department of Justice Edward Byrne Memorial Justice Assistance Grant Total U.S. Department of Justice U.S. Department of the Treasury Passed Through Saline County: Coronavirus Relief Fund Total U.S. Department of the Treasury U.S. Department of Homeland Security Passed Through Kansas Adjutant General: Disaster Grants -Public Assistance (Presidentially Declared Disasters) Total U.S. Department of Homeland Security U.S. Department of Transportation Passed Through Kansas Department of Transporation: Highway Safety Cluster: State and Community Highway Safety National Priority Safety Programs Total Highway Safety Cluster Total U.S. Department of Transportation Total Expenditures of Federal Awards Federal CFDA Number 14.401 14.218 14.231 16.738 21.019 97.036 20.600 20.616 See independent auditor's report on the financial statements. 122 Expenditures $ 91,100 122,055 122,055 177.407 390,562 52,713 52,713 1,218,475 1,218,475 42,885 42,885 3,284 2,262 5,546 5,546 $ 1,710,181 CITY OF SALINA, KANSAS NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31, 2020 1. Organization The City of Salina, Kansas (the City), is the recipient of several federal awards. All federal awards received directly from federal agencies as well as those awards that are passed through other government agencies, are included on the Schedule of Expenditures of Federal Awards. 2. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City and is presented on the modified accrual basis of accounting, which is described in Note 1 to the City's basic financial statements. The information presented in this schedule is in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. The City elected not to use the 10% de minimis indirect cost rate. 3. Local Government Contributions Local cost sharing is required by certain federal grants. The amount of cost sharing varies with each program. Only the federal share of expenditures is presented in the Schedule of Expenditures of Federal Awards. 4. Additional Audits Grantor agencies reserve the right to conduct additional audits of the City's grant programs for economy and efficiency and program results that may result in disallowed costs to the City. However, management does not believe such audits would result in any disallowed costs that would be material to the City's financial position at December 31, 2020. 5. Outstanding Loans The City did not have any outstanding loans under any federal grants at December 31, 2020. 6. Pass Through Numbers Pass through numbers have not been assigned to pass through grants on the Schedule of Expenditures of Federal Awards. 123 CITY OF SALINA, KANSAS SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2020 Section I -Summary of Auditor's Results Financial Statements Type of auditor's report issued: Internal control over financial reporting: Material weakness(es) identified? ---- Significant deficiency{ies) identified that are not considered to be material weaknesses? Noncompliance material to financial statements noted? Federal Awards Internal control over major programs: Material weakness{es) identified? ---- ---- ---- Significant deficiency(ies) identified that are not considered to be material weaknesses? Type of auditor's report issued on compliance for major programs: Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Uniform Guidance? Identification of major programs: ---- ---- Unmodified Yes _ __,.;.X-'--_No Yes __ X __ Nonereported Yes X No ---- Yes __ x __ No Yes _.......;.X-'--_Nonereported Unmodified Yes __ x __ No CFDA Number(s) Name of Federal Program or Cluster 21.019 Dollar threshold used to distinguish between type A and type B programs: Auditee qualified as low-risk auditee? Coronavirus Relief Fund $750,000 Yes X -------- See independent auditor's report on the financial statements. 124 No CITY OF SALINA, KANSAS SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) For the Year Ended December 31, 2020 Section II -Financial Statement Findings Prior Year Findings None Noted. Current Year Findings None Noted. Section Ill -Federal Award Findings and Questioned Costs Prior Year Findings None Noted. Current Year Findings None Noted. See independent auditor's report on the financial statements. 125 GORDON AUDITING ACCOUNTING CONSULTING 2500 W 31st St Ste G-1B Lawrence, KS 66047 (785) 371-4847 cpagordon.com INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH "GOVERNMENT AUDITING STANDARDS" Mayor and City Commissioners City of Salina, Kansas We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the government 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 (the City), as of and for the year ended December 31, 2020, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated July 23, 2021. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal controls exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charge with governance. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 126 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Certified Public Accountant Lawrence, Kansas July 23, 2021 127 GORDON AUDITING ACCOUNTING CONSULTING 2500 W 31st St Ste G-1B Lawrence, KS 66047 (785) 371-4847 cpagordon.com INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE Mayor and City Commissioners City of Salina, Kansas Report on Compliance for Each Ma jor Federal Program We have audited the compliance of the City of Salina, Kansas (the City), with the types of compliance requirements described in the 0MB Compliance Supplement that could have a direct and material effect on the City's major federal program for the year ended December 31, 2020. The City's major federal financial program is identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for the City's major federal program based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United State of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for the major federal program. However, our audit does not provide a legal determination on the City's compliance. Opinion on Each Major Federal Program In our opinion, the County complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended December 31 , 2020. Report on Internal Control Over Compliance The management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City's internal control over compliance with the types of requirements that could have a direct and material effect on the major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the County's internal control over compliance. 128 A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of the internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in the internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Certified Public Accountant Lawrence, Kansas July 23, 2021 129 [THIS PAGE INTENTIONALLY LEFT BLANK] APPENDIXD Unaudited Annual Financial Report for Fiscal Year End December 31, 2021 [THIS PAGE lNTENTIONALL Y LEFr BLANK] Outstanding unencumbered cash Fund Name Fund Number BEG. BALANCE DEBITS CREDITS NET CHANG£ END BALANCE £ne11mbrances Betance U/31/21 General 100 13,571,077.06 53,246,073.94 47,565,055.53 5,681,018.41 19,252,095.47 141,005.13 19,111,090.34 Sales Tax Capital 210 6,996,908.66 10,263,446.79 7,671,020.45 2,592.426.34 9,589,335.00 998,792.66 8,590,542.34 Gas Tax 270 2,117,354.40 1,935, 728.54 1,467,863.87 467,864.67 2,585,219.07 194,906.55 2,390,312.52 Sanitation 300 ].,175,040.77 3,409,156.21 4,312,580.40 (903,424.19) 1,271,616.58 295,729.68 975,886.90 Solid Waste 320 5,629.280.93 4,546,207.46 3,472,451.37 1,073,756.09 6,703,037.02 251,194.90 6,451,842.12 Golf 340 45,426.85 941,504.60 885,210.40 56,294.20 101,721.05 14,327.00 87,394.05 Water/Wastewater 370 18,484,921.46 21,792,823.91 17,751,169.64 4,041,654.27 22,526,575.73 211,882,76 22,314,692.97 Debt Service 500 1,665,599.90 13,734,327.24 13,869,695.57 (135,368.33) 1,530,231.57 1,530,231.57 Water/Wastewater Debt Service 510 655,428.71 655,428.71 655,428.71 Water/Wastewater Capital Re.erve 735 10,808,448,75 250,250.00 170,558.82 79,691.18 10,888,139.93 260,989.98 10,627,149.95 Solid Waste Reserve 750 1,381,213.08 1,381,213.08 1,381,213.08 Total 63,530,700.57 110,119,518.69 97,165,606.05 12,953,912.64 76,484,613.21 2,3681828.66 74,115,784.SS D-1 [THIS PAGE INTENTIONALLY LEFT BLANK] Salina ft-, Mixed Sources l " -----..... cilntn,IW----reqdldWQDd«11ber. Printed by: lmageMaster, LLC -flnageroastor.com 0 =i -< 0 'Tl (J) )> r z }> ~ z (J) )> (J) • G') m z m ::0 )> r 0 a, r ci ~ 0 z z -I m ::0 z )> r s: "ti ::0 ~ m s: m z -I a, 0 z CJ y, (J) m ::0 m (J) I\) 0 I\) I\) ;i:. EXHIBIT A CERTIFICATE DEEMING PRELIMINARY OFFICIAL STATEMENT FINAL March 21, 2022 Re: City of Salina, Kansas, General Obigation Internal Improvment Bonds, Series 2022-A The undersigned is the duly acting Director of Finance of the City of Salina, Kansas (the "Issuer"), and are authorized to deliver this Certificate to the purchaser (the "Purchaser") of the above- referenced bonds (the "Bonds") on behalf of the Issuer. The Issuer has previously caused to be delivered to the Purchaser copies of the Preliminary Official Statement (the "Preliminary Official Statement") relating to the Bonds. For the purpose of enabling the Purchaser to comply with the requirements of Rule 15c2-12(b)(l) of the Securities and Exchange Commission (the "Rule"), the Issuer hereby deems the information regarding the Issuer contained in the Preliminary Official Statement to be final as of its date, except for the omission of such information as is permitted by the Rule, such as offering prices, interest rates, selling compensation, aggregate principal amount, principal per maturity, delivery dates, ratings, identity of the underwriters and other terms of the Bonds depending on such matters. CITY OF SALINA, KANSAS By:A?~ ~ Title Director of Finance 600596.20227\SALEDOCS OCALiQ The Garden City Telegram The Hays Dally News I Salina Journal The Hutchinson News I The Ottawa Herald PROOF OF PUBLICATION City Clerk's Office City of Salina City Clerk Po Box 736 Salina KS 67402-0736 STATE OF WISCONSIN, COUNTY OF BROWN The Salina Journal, a daily newspaper published at Salina, Saline County, Kansas, and of general circulation in said county, and continuously and uninterruptedly published for five consecutive years prior to first publication of attached notice. That the attachment hereto contains a true and correct copy of what was actually published in said newspaper in the issue dated: 03/24/2022 Sworn to and subscribed before on 03/24/2022 My commision expires Publication Cost: $414.12 Order No: Customer No: PO#: 7079037 594307 THIS IS NOT AN INVOICE! Please do not use this form for payment remittance. VICKY FELTY No"tary Public State of Wisconsin #of Copies: 1 PO Box 631367 Cincinnati, OH 45263-1367 Page 1 of 1 SUMMARY NOTICE OF BOND SALE $8, 195,000* CITY OF SALINA, KANSAS GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS, SERIES 2022-A (GENERAL OBLIGATION BONDS PAYABLE FROM UNLIMITED AD VALOREM TAXES) Bids. SUBJECT to the Notice of Bond Sale dated March 21, 2022 (the "Notice"), electronic bids submitted through PARITY® , or emailed to the Municipal Advisor at the address below, will be received on behalf of the City of Salina, Kansas (the "lssuer'112:00 P.M. applicable Central Time, on APRIL 4, 2022 for the purchase of the above-referenced bonds (the "Bonds"). The minimum bid price for the Bonds shall be as specified in the Notice. Bond Details. The Bonds will consist of fully registered bonds in the denomination of $5,000 or any Integral multiple thereof. The Bonds will be dated April 28, 2022, and will become due on October 1 in the years as follows: Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 * Subject to change, see the Notice prinQjpal Principal Amount* Year Amount* $485,000 2033 $430,000 585,000 2034 440,000 595,000 2035 450,000 620,000 2036 465,000 630,000 2037 330,000 650,000 2038 110,000 650,000 2039 115,000 420,000 2040 115,000 430,000 2041 120,000 430,000 2042 125,000 The Bonds will bear Interest from the date thereof at rates to be determined when the Bonds are sold as hereinafter provided, which interest will be payable semiannually on April 1 and October 1 in each year, beginning on April 1, 2023. Book-Entry-Only System. The Bonds shall be registered under a book-entry-only system administered through DTC. Paying Agent and Bond Registrar. Treasurer of the State of Kansas, Topeka, Kansas. Good Faith Deposit. Each bid shall be accompanied (in the manner set forth in the Notice) by a good faith deposit in the form of a cashier's or certified check drawn on a bank located in the United States of America or a wire transfer in Federal Reserve funds Immediately available for use by the Issuer in the amount equal to 2% of the principal amount of the Bonds. Delivery. The Issuer will pay for preparation of the Bonds and will deliver the same properly prepared, executed and registered without cost to the successful bidder on or about April 28, 2022, to DTC for the account of the successful bidder. Assessed Valuation and Indebtedness. The Equalized Assessed Tangible Valuation for Computation of Bonded Debt Limitations for the year 2021 is $519,483,033. The total general obligation Indebtedness of the Issuer as of the Dated Date, including the Bonds being sold, is $75,655,000, excluding general obligation notes to be repaid with the proceeds of the Bonds. Approval of Bonds. The Bonds will be sold subject to the legal opinion of GILMORE & BELL, P.C., Bond Counsel to the Issuer, whose approving legal opinion as to the validity of the Bonds will be furnished and paid for by the Issuer, printed on the Bonds and delivered to the successful bidder as and when the Bonds are delivered. Additional Information. Additional information regarding the Bonds may be obtained from the undersigned Stifel Nicolaus & Company, Incorporated at the addresses set forth below: DATED: March 21, 2022. Issuer-Good Faith Deposit Delivery Address: Debbie Pack, Director of Finance and Administration City of Salina, Kansas 300 West Ash Street, Room 206 Salina, Kansas 67402 Phone No.: (785) 309-5735 Fax No.: (785) 309-5711 Email: debble.ga9!<@$allna.org . Municipal Advisor -Email Bid Delivery Address: Stifel Nicolaus & Company, Incorporated 4801 Main Street, Suite 530 Kansas City, Missouri 64112 Attn: David Arteberry Phone No.: (816) 203-8773 Fax No.: (816) 283-5326 Email: .~ryd@stjfel.QQIB SK-29430228 STATE OF KANSAS OFFICE OF SECRETARY OF STATE I, Scon SCHWAB, Kansas Secretary of State, certify that the records of this office reveal the foll~wing: Affidavit of Publication I am the publisher of the Kansas Register, a newspaper published pursuant to K.S.A. 75-430, and the attached is a true copy of the notice that appeared therein on the date given below: March 24, 2022 In Testimony Whereof: I hereto set my hand and cause to be affixed my official seal. Done at the City of Topeka this 22nd day of March, A.D. 2022. SCOTT SCHWAB KANSAS SECRETARY OF STATE Bonds/Regulations Kansas Register about April 28, 2022, to DTC for the account of the suc- cessful bidder. Assessed Valuation and Indebtedness The Equalized Assessed Tangible Valuation for Com- putation of Bonded Debt Limitations for the year 2021 is $519,483,033. The total general obligation indebtedness of the Issuer as of the Dated Date, including the Bonds being sold, is $75,655,000, excluding general obligation notes to be repaid with the proceeds of the Bonds. Approval of Bonds The Bonds will be sold subject to the legal opinion of Gilmore & Bell, P.C., Bond Counsel to the Issuer, whose approving legal opinion as to the validity of the Bonds will be furnished and paid for by the Issuer, printed on the Bonds, and delivered to the successful bidder as and when the Bonds are delivered. Additional Information Additional information regarding the Bonds may be obtained from the undersigned Stifel Nicolaus & Com- pany, Incorporated at the addresses set forth below: Issuer -Good Faith Deposit Delivery Address City of Salina, Kansas Debbie Pack, Director of Finance and Administration 300 W. Ash St., Room 206 Salina, KS 67402 785-309-5735 Fax: 785-309-5711 debbie.pack@salina.org Municipal Advisor -Email Bid Delivery Address Stifel Nicolaus & Company, Incorporated Attn: David Arteberry 4801 Main St., Suite 530 Kansas City, MO 64112 816-203-8773 Fax: 816-283-5326 arteberryd@stifel.com Dated March 21, 2022. Debbie Pack Director of Finance and Administration • Subject to change, see the Notice Doc. No. 049952 Kansas Lottery 111-4-3708. t" instant tick- et lottery game as lottery may conduct an inst nti.tled "Electric 8s Super Ticket." re contained in K.A.R.111-3-1 (b) The " tions" for this game ws: bols fan alarm Symbol of an ant Symbol of an apple bol of an armored car Symbol of a bank Symbol of a barn bol of the beach S bol of a dollar bill S bol of a bone S bolofabow Symbol fa piece of carpet Sym 1 of a cashier Sym ol of coins Symb of a crown Symbo f a dealer Symbol o diamond Symbol of og house Symbol o fence Symbol fire Symbol of a fire Symbol of a wer Symbol of a f est Symbol of ag Symbol of eyegl Symbol of a glo Symbol of a gold b Symbol of hay Symbol of a heart Symbol of a ladybug Symbol of a match Symbol of the moon Symbol of a necklac Symbol of a pail Symbol of a pear Symbolofanice ck Symbol of a pig~ ank Symbol of a pin· one Symbolofr Symbol of ar Symbol of a ca Symbolo Symbol a safe· Symbol o a sailboat Symbo of a shirt Symbo of a shovel Symbol a slot machine Symbol f a thermometer Symb of an umbrella S ol of a volcano Symb of a covered wagon bol of a wallet bol of a cup of water Symbol of a well ymbol of the number 8 Symbol of a moneybag Symbolof5X Symbol of 10X ANT APPLE ARMCAR BANK BARN BEA B B T R s WN D ALER D MOND D GROUSE FENCE FIRE FIRE EXT FLOWER FOREST GEM GLASSES GLOVE GOLD HAY HEART LADYBUG MATCH MOON NECKLACE PAIL PEARL PICK PIGGYBANK PINECONE RAIN RAINBOW REGISTER RING SAFE BOAT HIRT S OVEL SOTS V w w W./\. WE WIN WIN$10 WINX5 WINX10 C Kanua Sea,,fuy ol Slate 2022 OFFICIAL STATEMENT In the opinion of Gilmore & Bell, P.C., Bond Counsel to the City, under existing law and assuming continued compliance with certain requirements of the Internal Revenue Code of 1986, as amended (the "Code"): (1) the interest on the Bonds (including any original issue discount properly _,allocable to an owner thereof) is excludable from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax, (2) the interest on the Bonds is exempt from income taxation by the State of Kansas, (3) the Bonds are designated as "qualified tax-exempt obligations" within the meaning of Code Section 265{b}(3}. See TAX MATTERS in this Official Statement. New Issue Bank Qualified Book-Entry Only $7,840,000 CITY OF SALINA, KANSAS GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2022-A Dated: Date of Delivery (the "Dated Date") Moody's Rating: "Aa3" Due: As Shown Herein The General Obligation Internal Improvement Bonds, Series 2022-A Bonds (the "Bonds") will be issued by the Issuer, as fully registered bonds, without coupons. Purchases of the Bonds will be made in book-entry only form in the denomination of $5,000 or any integral multiple thereof (the "Authorized Denomination"). Principal on the Bonds will be payable annually on October 1 in the years shown herein. Interest on the Bonds will be payable semiannually on April 1 and October 1 of each year until maturity or earlier redemption, commencing on April 1, 2023 (the "Bond Interest Payment Date"). The Treasurer of the State of Kansas will be designated as paying agent and registrar or the Bonds (the "Paying Agent" and "Bond Registrar"). The Bonds are subject to redemption at the option of the City as further described herein. See THE BONDS-"Redemption Provisions" herein. MATURITY SCHEDULE (see inside front cover) The full faith, credit, and resources of the City are irrevocably pledged for the prompt payment of the principal and interest on the Bonds as the same becomes due. See THE BONDS -"Security" herein. The Bonds are offered when, as and if issued by the City and received by the Underwriter subject to the approval of legality by Gilmore & Bell, P.C., Kansas City, Missouri, Bond Counsel to the City. It is expected that the Bonds will be available for delivery through the facilities of DTC, in New York, New York, on or about April 28, 2022. This Official Statement is dated April 4, 2022. THIS COVER PAGE CONTAINS INFORMATION FOR QUICK REFERENCE ONLY. IT IS llilJ: A SUMMARY OF THE ISSUE. INVESTORS MUST READ THE ENTIRE OFFICIAL STATEMENT TO OBTAIN INFORMATION ESSENTIAL TO THE MAKING OF AN INFORMED INVESTMENT DECISION. MATURITY SCHEDULE $7,840,000 GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2022-A Serial Bonds Base cus1p111 Maturit~ Amount Rate Yield 794744 10-01-23 $390,000 4.000% 1.600% FG2 10-01-24 525,000 4.000 1.900 FH0 10-01-25 550,000 4.000 2.000 FJ6 10-01-26 560,000 4.000 2.050 FK3 10-01-27 590,000 4.000 2.100 FLl 10-01-28 615,000 4.000 2.200 FM9 10-01-29 635,000 4.000 2.250 FN7 10-01-30(2) 410,000 2.500 2.300 FP2 10-01-31<21 425,000 2.500 2.350 FQ0 10-01-32<2) 430,000 2.750 2.400 FR8 10-01-33<21 430,000 3.000 2.450 FS6 10-01-34121 440,000 3.000 2.500 FT4 10-01-35121 450,000 3.000 2.600 FUl 10-01-36121 465,000 3.000 2.650 FV9 10-01-37121 335,000 3.000 2.750 FW7 Term Bonds 10-01-40121 345,000 3.000 3.000 FZ0 10-01-42121 245,000 3.000 3.050 GB2 (ll CUSIP numbers have been assigned to this issue by CUSIP Global Services, which is managed on behalf of the American Bankers Association by S&P Capital IQ, a subsidiary of The McGraw-Hill Companies, Inc., and are included solely for the convenience of the Owners of the Bonds. Neither the City nor the Underwriters shall be responsible for the selection or correctness of the CUSIP numbers set forth above. <2l At the option of the City, Bonds maturing on October 1, 2030 and thereafter, will be subject to redemption and payment prior to their Stated Maturity on October 1, 2029, and at any time thereafter, as a whole or in part (selection of maturities and the amount of Bonds of each maturity to be redeemed to be determined by the City in such equitable manner as it may determine), at the Redemption Price of 100% (expressed as a percentage of the principal amount), plus accrued interest to the Redemption Date. See THE BONDS -"Redemption Provisions" herein. IN CONNECTION WITH THIS OFFERING, THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICES OF THE BONDS AT LEVELS ABOVE THOSE WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE BONDS HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THE BONDS ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE SECURITIES AND EXCHANGE COMMISSION. THE REGISTRATION, QUALIFICATION OR EXEMPTION OF THE BONDS IN ACCORDANCE WITH THE APPLICABLE SECURITIES LAW PROVISIONS OF THE JURISDICTIONS IN WHICH THESE BONDS HAVE BEEN REGISTERED, QUALIFIED OR EXEMPTED SHOULD NOT BE REGARDED AS A RECOMMENDATION THEREOF. NEITHER THESE JURISDICTIONS NOR ANY OF THEIR AGENCIES HAVE GUARANTEED OR PASSED UPON THE SAFETY OF THE BONDS AS AN INVESTMENT, UPON THE PROBABILITY OF ANY EARNINGS THEREON OR UPON THE ACCURACY OR ADEQUACY OF THIS OFFICIAL STATEMENT. ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE. THIS OFFICIAL STATEMENT CONTAINS STATEMENTS THAT ARE "FORWARD-LOOK/NG STATEMENTS" AS DEFINED IN THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. WHEN USED IN THIS OFFICIAL STATEMENT, THE WORDS "ESTIMATE," "INTEND," "EXPECT" AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOK/NG STATEMENTS. SUCH STATEMENTS ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATER/ALLY FROM THOSE CONTEMPLATED IN SUCH FORWARD- LOOKING STATEMENTS. READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD- LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE HEREOF. IN MAKING AN INVESTMENT DECISION INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE ISSUER AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. CITY OF SALINA, KANSAS City/County Building -Room 206 300WestAsh P.O. Box736 Salina, Kansas 67402-0736 CITY COMMISSION Trent W. Davis, M.D., Mayor Karl F. Ryan, Vice Mayor Mike Hoppock, Commissioner Greg Lenkiewicz, Commissioner Bill Longbine, Commissioner CITY STAFF Mike Schrage, City Manager Debbie Pack, Finance Director JoVonna Rutherford, City Clerk CITY ATTORNEY Greg Bengtson Clark, Mize & Linville, Chartered Salina, Kansas BOND COUNSEL Gilmore & Bell, P.C. Kansas City, Missouri MUNICIPAL ADVISOR Stifel, Nicolaus & Company, Incorporated Kansas City, Missouri No dealer, broker, salesman or other person has been authorized by the City or the Underwriter to give any information or to make any representations with respect to the Bonds, other than those contained in this Official Statement, and if given or made, such other information or representations must not be relied upon as having been authorized by the foregoing. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The information set forth herein concerning the Issuer has been furnished by the Issuer and other sources which are believed to be reliable, but such information is not guaranteed as to accuracy or completeness. The Underwriter has reviewed the information in this Official Statement in accordance with, and as a part of, its responsibilities to investors under the Federal Securities Laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. The information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the Issuer since the date hereof. This Official Statement does not constitute a contract between the Issuer or the Underwriters and any one or more of the purchasers, Owners or Beneficial Owners of the Bonds. All financial and other information presented herein, except for information expressly attributed to other sources, has been provided by the City from its records and is intended to show recent historic information. Such information is not guaranteed as to accuracy or completeness. All descriptions of laws and documents contained herein are only summaries and are qualified in their entirety by reference to such laws and documents. TABLE OF CONTENTS Page INTRODUCTORY STATEMENT............................................................................................................. 1 THE BONDS......................................................................................................................................... 2 THE DEPOSITORY TRUST COMPANY................................................................................................... 7 THE FINANCING PLAN......................................................................................................................... 9 SOURCES AND USES OF FUNDS.......................................................................................................... 9 RISK FACTORS AND INVESTMENT CONSIDERATIONS......................................................................... 9 LEGAL MATTERS................................................................................................................................. 12 TAX MATTERS..................................................................................................................................... 13 RATINGS.............................................................................................................................................. 14 MUNICIPAL ADVISOR.......................................................................................................................... 14 UNDERWRITING ................................................................................................................................. 15 ABSENCE OF MATERIAL LITIGATION................................................................................................... 15 CONTINUING DISCLOSURE................................................................................................................. 15 CERTIFICATION OF OFFICIAL STATEMENT.......................................................................................... 15 APPENDIX A: INFORMATION CONCERNING THE CITY FINANCIAL OVERVIEW OF THE CITY.............................................................................................. A-1 GENERAL INFORMATION CONCERNING THE CITY........................................................................ A-2 ECONOMIC INFORMATION CONCERNING THE CITY..................................................................... A-6 DEBT SUMMARY OF THE CITY....................................................................................................... A-9 FINANCIAL INFORMATION CONCERNING THE CITY...................................................................... A-13 APPENDIX B: FORM OF CONTINUING DISCLOSURE UNDERTAKING APPENDIX C: AUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR ENDING DECEMBER 31, 2020 APPENDIX D: UNAUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR ENDING DECEMBER 31, 2021 General OFFICIAL STATEMENT CITY OF SALINA, KANSAS $7,840,000 GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2022-A INTRODUCTORY STATEMENT The purpose of this Official Statement is to present certain information concerning the City of Salina, Kansas (the "Issuer" or "City"), and the offering of its $7,840,000 General Obligation Internal Improvement Bonds, Series 2022-A (the "Bonds"). The Bonds are being issued to provide funds to permanently finance certain public improvements with the City and to retire certain outstanding temporary notes of the City. See THE FINANCING PLAN herein. The full faith, credit, and resources of the City are irrevocably pledged for the prompt payment of the principal and interest on the Bonds as the same becomes due. See THE BONDS -"Security" herein. The Appendices are an integral part of this Official Statement and should be read in their entirety. All financial and other information presented herein has been provided by the City and other sources deemed to be reliable. The presentation of information herein is intended to show recent historic information and is not intended to indicate future or continuing trends in the financial position or other affairs of the City. Stifel, Nicolaus & Company, the Municipal Advisor, has assisted the Issuer with the preparation of this Official Statement, but has not independently verified the factual and financial information contained herein. Gilmore & Bell, P.C., Kansas City, Missouri, Bond Counsel to the City, has not assisted in the preparation of nor reviewed this Official Statement, except to the extent described under the sections captioned LEGAL MATTERS and, accordingly, expresses no opinion as to the accuracy or sufficiency of any other information contained herein. Definitions Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the ordinance and resolution of the governing body of the City authorizing the Bonds (collectively, the "Bond Resolution"), as applicable. Copies of the Bond Resolution are available upon request to the City or the Municipal Advisor. Additional Information Additional information regarding the City or the Bonds may be obtained from Stifel, Nicolaus & Company, Incorporated, 4801 Main Street, Suite 530, Kansas City, Missouri 64112, telephone 816-203-8728. 1 THE BONDS Authority The Bonds are being issued pursuant to and in full compliance with the Constitution, particularly Art. 12 § 5 thereof, and statutes of the State of Kansas, including without limitation K.S.A. 12-6a01, et seq., K.S.A. 12-685 et seq., K.S.A. 12-1736 et seq., and K.S.A. 12-2104, all as amended and supplemented from time to time, and an Ordinance passed by the governing body of the City and the Bond Resolution. Security The Bonds shall be general obligations of the City, payable as to both principal and interest in part from special assessments levied upon the property benefitted by the construction of certain public improvements, and if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The balance of the principal and interest on the Bonds is payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The full faith, credit and resources of the City are hereby irrevocably pledged for the prompt payment of the principal of and interest on the Bonds as the same become due. Levy and Collection of Annual Tax, Transfer to Debt Service Account The governing body of the Issuer shall annually make provision for the payment of principal of, premium, if any, and interest on the Bonds as the same become due by, to the extent necessary, levying and collecting the necessary taxes and/or assessments upon all of the taxable tangible property within the Issuer in the manner provided by law. Such taxes and/or assessments shall be extended upon the tax rolls in each of the several years, respectively, and shall be levied and collected at the same time and in the same manner as the other ad valorem taxes of the Issuer are levied and collected. The proceeds derived from said taxes shall be deposited in the Bond and Interest Fund, shall be kept separate and apart from all other funds of the Issuer, shall thereafter be transferred to the Debt Service Account and shall be used solely for the payment of the principal of and interest on the Bonds as and when the same become due, taking into account any scheduled mandatory redemptions, and the fees and expenses of the Paying Agent. Description The Bonds shall consist of fully registered book-entry-only bonds in an Authorized Denomination and shall be numbered in such manner as the Bond Registrar shall determine. All of the Bonds will be dated as of the Dated Date, shall become due in the amounts, on the Stated Maturities, subject to redemption and payment prior to their Stated Maturities, and shall bear interest at the rates per annum set forth on the inside cover page of this Official Statement. The Bonds shall bear interest (computed on the basis of twelve 30-day months) from the later of the Dated Date or the most recent Bond Interest Payment Date to which interest has been paid, on the Bond Interest Payment Dates in the manner hereinafter set forth. Redemption Provisions Optional Redemption. At the option of the Issuer, Bonds maturing on October 1 in the years 2030, and thereafter, will be subject to redemption and payment prior to their Stated Maturity on October 1, 2029, and thereafter, as a whole or in part (selection of maturities and the amount of Bonds of each maturity to be redeemed to be determined by the Issuer in such equitable manner as it may determine) at any time, at the Redemption Price of 100% (expressed as a percentage of the principal amount), plus accrued interest to the Redemption Date. 2 Mandatory Redemption. (a) 2040 Term Bonds. The 2040 Term Bonds shall be subject to mandatory redemption and payment prior to Stated Maturity pursuant to the mandatory redemption requirements hereinafter set forth at a Redemption Price equal to 100% of the principal amount thereof plus accrued interest to the Redemption Date. The payments which are to be deposited into the Debt Service Account shall be sufficient to redeem, and the Issuer shall redeem on October 1 in each year, the following principal amounts of such 2040 Term Bonds: Principal Amount $110,000 115,000 120,000 Year 2038 2039 2040* (b) 2042 Term Bonds. The 2042 Term Bonds shall be subject to mandatory redemption and payment prior to Stated Maturity pursuant to the mandatory redemption requirements hereinafter set forth at a Redemption Price equal to 100% of the principal amount thereof plus accrued interest to the Redemption Date. The payments which are to be deposited into the Debt Service Account shall be sufficient to redeem, and the Issuer shall redeem on October 1 in each year, the following principal amounts of such 2042 Term Bonds: *Final maturity Principal Amount $120,000 125,000 Year 2041 2042* Selection of Bonds to be Redeemed. Bonds shall be redeemed only in an Authorized Denomination. When less than all of the Bonds are to be redeemed and paid prior to their Stated Maturity, such Bonds shall be redeemed in such manner as the City shall determine, Bonds of less than a full Stated Maturity shall be selected by the Bond Registrar in minimum Authorized Denomination in such equitable manner as the Bond Registrar may determine. In the case of a partial redemption of Bonds by lot when Bonds of denominations greater than a minimum Authorized Denomination are then Outstanding, then for all purposes in connection with such redemption each minimum Authorized Denomination of face value shall be treated as though it were a separate Bond of a minimum Authorized Denomination. If it is determined that one or more, but not all, of the minimum Authorized Denomination value represented by any Bond is selected for redemption, then upon notice of intention to redeem such minimum Authorized Denomination, the Owner or the Owner's duly authorized agent shall forthwith present and surrender such Bond to the Bond Registrar: (1) for payment of the Redemption Price and interest to the Redemption Date of such minimum Authorized Denomination value called for redemption, and (2) for exchange, without charge to the Owner thereof, for a new Bond or Bonds of the aggregate principal amount of the unredeemed portion of the principal amount of such Bond. If the Owner of any such Bond fails to present such Bond to the Paying Agent for payment and exchange as aforesaid, such Bond shall, nevertheless, become due and payable on the redemption date to the extent of the minimum Authorized Denomination value called for redemption (and to that extent only). Notice and Effect of Call for Redemption. Unless waived by any Owner of Bonds to be redeemed, if the City shall call any Bonds for redemption and payment prior to the Stated Maturity thereof, the City shall give written notice of its intention to call and pay said Bonds to the Bond Registrar. In addition, the City shall cause the Bond Registrar to give written notice of redemption to the Owners of said Bonds. Each of said written notices shall be deposited in the United States first class mail not less than 30 days prior to the Redemption Date. All official notices of redemption shall be dated and shall contain the following information: (a) the Redemption Date; (b) the Redemption Price; (c) if less than all Outstanding Bonds are to be redeemed, the identification (and, in the case of partial redemption of any Bonds, the respective principal amounts) of the Bonds to be redeemed; (d) a statement that on the Redemption Date the Redemption Price will become due and payable upon each such Bond or portion thereof called for redemption and that interest thereon shall cease to accrue from and after the Redemption Date; and (e) the place where such Bonds are to be surrendered for payment of the Redemption Price, which shall be the principal office of the Paying Agent. The failure of any Owner to receive notice given as heretofore provided or an 3 immaterial defect therein shall not invalidate any redemption. Prior to any Redemption Date, the City shall deposit with the Paying Agent an amount of money sufficient to pay the Redemption Price of all the Bonds or portions of Bonds that are to be redeemed on such Redemption Date. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds to be redeemed shall become due and payable on the Redemption Date, at the Redemption Price therein specified, and from and after the Redemption Date (unless the City defaults in the payment of the Redemption Price) such Bonds or portion of Bonds shall cease to bear interest. For so long as the Securities Depository is effecting book-entry transfers of the Bonds, the Bond Registrar shall provide the notices specified to the Securities Depository. It is expected that the Securities Depository shall, in turn, notify its Participants and that the Participants, in turn, will notify or cause to be notified the Beneficial Owners. Any failure on the part of the Securities Depository or a Participant, or failure on the part of a nominee of a Beneficial Owner of a Bond (having been mailed notice from the Bond Registrar, the Securities Depository, a Participant or otherwise) to notify the Beneficial Owner of the Bond so affected, shall not affect the validity of the redemption of such Bond. In addition to the foregoing notice, the City shall provide such notices of redemption as are required by the Disclosure Undertaking. The Paying Agent is also directed to comply with any mandatory or voluntary standards then in effect for processing redemptions of municipal securities established by the State or the Securities and Exchange Commission. Failure to comply with such standards shall not affect or invalidate the redemption of any Bond. Designation of Paying Agent and Bond Registrar The City will at all times maintain a paying agent and bond registrar meeting the qualifications set forth in the Bond Resolution. The City reserves the right to appoint a successor paying agent or bond registrar. No resignation or removal of the paying agent or bond registrar shall become effective until a successor has been appointed and has accepted the duties of paying agent or bond registrar. Every paying agent or bond registrar appointed by the City shall at all times meet the requirements of Kansas law. The Treasurer of the State of Kansas, Topeka, Kansas (the "Bond Registrar'' and "Paying Agent'') has been designated by the City as paying agent for the payment of principal of and interest on the Bonds and bond registrar with respect to the registration, transfer and exchange of Bonds. Registration, Transfer and Exchange of Bonds As long as any of the Bonds remain Outstanding, each Bond when issued shall be registered in the name of the Owner thereof on the Bond Register. Bonds may be transferred and exchanged only on the Bond Register as hereinafter provided. Upon surrender of any Bond at the principal office of the Bond Registrar, the Bond Registrar shall transfer or exchange such Bond for a new Bond or Bonds in any authorized denomination of the same Stated Maturity and in the same aggregate principal amount as the Bond that was presented for transfer or exchange. Bonds presented for transfer or exchange shall be accompanied by a written instrument or instruments of transfer or authorization for exchange, in a form and with guarantee of signature satisfactory to the Bond Registrar, duly executed by the Owner thereof or by the Owner's duly authorized agent. In all cases in which the privilege of transferring or exchanging Bonds is exercised, the Bond Registrar shall authenticate and deliver Bonds in accordance with the provisions of the Bond Resolution. The City shall pay the fees and expenses of the Bond Registrar for the registration, transfer and exchange of Bonds. Any additional costs or fees that might be incurred in the secondary market, other than fees of the Bond Registrar, are the responsibility of the Owners of the Bonds. In the event any Owner fails to provide a correct taxpayer identification number to the Paying Agent, the Paying Agent may make a charge against such Owner sufficient to pay any governmental charge required to be paid as a result of such failure. 4 The City and the Bond Registrar shall not be required (a) to register the transfer or exchange of any Bond that has been called for redemption after notice of such redemption has been mailed by the Paying Agent and during the period of 15 days next preceding the date of mailing of such notice of redemption; or (b) to register the transfer or exchange of any Bond during a period beginning at the opening of business on the day after receiving written notice from the City of its intent to pay Defaulted Interest and ending at the close of business on the date fixed for the payment of Defaulted Interest. Method and Place of Payment of the Bonds The principal of, or Redemption Price, and interest on the Bonds shall be payable in any coin or currency which, on the respective dates of payment thereof, is legal tender for the payment of public and private debts. The principal or Redemption Price of each Bond shall be paid at Maturity to the Person in whose name such Bond is registered on the Bond Register at the Maturity thereof, upon presentation and surrender of such Bond at the principal office of the Paying Agent. The interest payable on each Bond on any Bond Interest Payment Date shall be paid to the Owner of such Bond as shown on the Bond Register at the close of business on the Record Date for such interest (a) by check or draft mailed by the Paying Agent to the address of such Owner shown on the Bond Register or at such other address as is furnished to the Paying Agent in writing by such Owner; or (b) in the case of an interest payment to Cede & Co. or any Owner of $500,000 or more in aggregate principal amount of Bonds, by electronic transfer to such Owner upon written notice given to the Bond Registrar by such Owner, not less than 15 days prior to the Record Date for such interest, containing the electronic transfer instructions including the bank, ABA routing number and account number to which such Owner wishes to have such transfer directed. "Record Date" means, for the interest payable on any Bond Interest Payment Date, the fifteenth day (whether or not a Business Day) of the calendar month next preceding such Bond Interest Payment Date. Notwithstanding the foregoing, any Defaulted Interest with respect to any Bond shall cease to be payable to the Owner of such Bond on the relevant Record Date and shall be payable to the Owner in whose name such Bond is registered at the close of business on the Special Record Date for the payment of such Defaulted Interest, which Special Record Date shall be fixed as hereinafter specified. The City shall notify the Paying Agent in writing of the amount of Defaulted Interest proposed to be paid on each Bond and the date of the proposed payment (which date shall be at least 30 days after receipt of such notice by the Paying Agent) and shall deposit with the Paying Agent an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest. Following receipt of such funds the Paying Agent shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 nor less than 10 days prior to the date of the proposed payment. The Paying Agent shall notify the City of such Special Record Date and shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, by first class mail, postage prepaid, to each Owner of a Bond entitled to such notice not less than 10 days prior to such Special Record Date. SO LONG AS CEDE & CO., REMAINS THE REGISTERED OWNER OF THE BONDS, THE BOND PAYING AGENT SHALL TRANSMIT PAYMENTS TO THE SECURITIES DEPOSITORY, WHICH SHALL REMIT SUCH PAYMENTS IN ACCORDANCE WITH ITS NORMAL PROCEDURES. See ''THE BONDS -Book-Entry Bonds; Securities Depository.,, Mutilated, Lost, Stolen or Destroyed Bonds If (a) any mutilated Bond is surrendered to the Bond Registrar or the Bond Registrar receives evidence to its satisfaction of the destruction, loss or theft of any Bond, and (b) there is delivered to the Issuer and the Bond Registrar such security or indemnity as may be required by each of them, then, in the absence of notice to the Issuer or the Bond Registrar that such Bond has been acquired by a bona fide purchaser, the Issuer shall execute and, upon the Issuer's request, the Bond Registrar shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Bond, a new Bond of the same Stated Maturity and of like tenor and principal amount. If any such mutilated, destroyed, lost or stolen Bond has become or is about to become due and payable, the Issuer, in its discretion, may pay such Bond instead of issuing a new Bond. Upon the issuance of any new Bond, 5 the Issuer may require the payment by the Owner of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Paying Agent) connected therewith. Nonpresentment of Bonds If any Bond is not presented for payment when the principal thereof becomes due at Maturity, if funds sufficient to pay such Bond have been made available to the Paying Agent all liability of the Issuer to the Owner thereof for the payment of such Bond shall forthwith cease, determine and be completely discharged, and thereupon it shall be the duty of the Paying Agent to hold such funds, without liability for interest thereon, for the benefit of the Owner of such Bond, who shall thereafter be restricted exclusively to such funds for any claim of whatever nature on his part under this Bond Resolution or on, or with respect to, said Bond. If any Bond is not presented for payment within four (4) years following the date when such Bond becomes due at Maturity, the Paying Agent shall repay to the Issuer the funds theretofore held by it for payment of such Bond, and such Bond shall, subject to the defense of any applicable statute of limitation, thereafter be an unsecured obligation of the Issuer, and the Owner thereof shall be entitled to look only to the Issuer for payment, and then only to the extent of the amount so repaid to it by the Paying Agent, and the Issuer shall not be liable for any interest thereon and shall not be regarded as a trustee of such money. Payments Due on Saturdays, Sundays and Holidays In any case where a Bond Payment Date is not a Business Day, then payment of principal, Redemption Price or interest need not be made on such Bond Payment Date but may be made on the next succeeding Business Day with the same force and effect as if made on such Bond Payment Date, and no interest shall accrue for the period after such Bond Payment Date. Book-Entry Bonds; Securities Depository The Bonds shall initially be registered to Cede & Co., the nominee for the Securities Depository, and no Beneficial Owner will receive certificates representing their respective interests in the Bonds, except in the event the Bond Registrar issues Replacement Bonds. It is anticipated that during the term of the Bonds, the Securities Depository will make book-entry transfers among its Participants and receive and transmit payment of principal of, premium, if any, and interest on, the Bonds to the Participants until and unless the Bond Registrar authenticates and delivers Replacement Bonds to the Beneficial Owners as described in the following paragraphs. The City may decide, subject to the requirements of the Operational Arrangements of DTC (or a successor Securities Depository), and the following provisions of this section to discontinue use of the system of book-entry transfers through OTC (or a successor Securities Depository): (a) If the City determines (1) that the Securities Depository is unable to properly discharge its responsibilities, or (2) that the Securities Depository is no longer qualified to act as a securities depository and registered clearing agency under the Securities and Exchange Act of 1934, as amended, or (3) that the continuation of a book-entry system to the exclusion of any Bonds being issued to any Owner other than Cede & Co. is no longer in the best interests of the Beneficial Owners of the Bonds; or (b) if the Bond Registrar receives written notice from Participants having interest in not less than 50% of the Bonds Outstanding, as shown on the records of the Securities Depository (and certified to such effect by the Securities Depository), that the continuation of a book-entry system to the exclusion of any Bonds being issued to any Owner other than Cede & Co. is no longer in the best interests of the Beneficial Owners of the Bonds, then the Bond Registrar shall notify the Owners of such determination or such notice and of the availability of certificates to owners requesting the same, and the Bond Registrar shall register in the name of and authenticate and deliver Replacement Bonds to the Beneficial Owners or their nominees in principal amounts representing the interest of each, making such adjustments as it may 6 find necessary or appropriate as to accrued interest and previous calls for redemption; provided, that in the case of a determination under (a}(l} or (a)(2) of this paragraph, the City, with the consent of the Bond Registrar, may select a successor securities depository in accordance with the following paragraph to effect book-entry transfers. In such event, all references to the Securities Depository herein shall relate to the period of time when the Securities Depository has possession of at least one Bond. Upon the issuance of Replacement Bonds, all references herein to obligations imposed upon or to be performed by the Securities Depository shall be deemed to be imposed upon and performed by the Bond Registrar, to the extent applicable with respect to such Replacement Bonds. If the Securities Depository resigns and the City, the Bond Registrar or Owners are unable to locate a qualified successor of the Securities Depository, then the Bond Registrar shall authenticate and cause delivery of Replacement Bonds to Owners, as provided herein. The Bond Registrar may rely on information from the Securities Depository and its Participants as to the names of the Beneficial Owners of the Bonds. The cost of printing, registration, authentication, and delivery of Replacement Bonds shall be paid for by the City. In the event the Securities Depository resigns, is unable to properly discharge its responsibilities, or is no longer qualified to act as a securities depository and registered clearing agency under the Securities and Exchange Act of 1934, as amended, the City may appoint a successor Securities Depository provided the Bond Registrar receives written evidence satisfactory to the Bond Registrar with respect to the ability of the successor Securities Depository to discharge its responsibilities. Any such successor Securities Depository shall be a securities depository which is a registered clearing agency under the Securities and Exchange Act of 1934, as amended, or other applicable statute or regulation that operates a securities depository upon reasonable and customary terms. The Bond Registrar upon its receipt of a Bond or Bonds for cancellation shall cause the delivery of the Bonds to the successor Securities Depository in appropriate denominations and form as provided in the Bond Resolution. THE DEPOSITORY TRUST COMPANY 1. The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for the Bonds. The Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully- registered bond will be issued for each scheduled maturity of the Bonds, and will be deposited with DTC. 2. DTC, the world's largest depository, is a limited-purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.6 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments from over 100 countries that DTCs participants ("Direct Participants") deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). DTC has a Standard & Poor's rating of "AA+". The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. 3. Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Security ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, 7 expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Bonds, except in the event that use of the book-entry system for the Bonds is discontinued. 4. To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of OTC. The deposit of Bonds with OTC and their registration in the name of Cede & Co. or such other OTC nominee do not effect any change in beneficial ownership. OTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. 5. Conveyance of notices and other communications by OTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. 6. Redemption notices shall be sent to OTC. If less than all of the Bonds within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. 7. Neither OTC nor Cede & Co. (nor any other OTC nominee) will consent or vote with respect to the Bonds unless authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures, OTC mails an Omnibus Proxy to the Issuer as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). 8. Redemption proceeds, distributions, and dividend payments on the Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of OTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the Issuer or Paying Agent, on the payment date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of OTC nor its nominee, the Paying Agent, or the Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of OTC) is the responsibility of the Issuer or Paying Agent, disbursement of such payments to Direct Participants will be the responsibility of OTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. 9. A Beneficial Owner shall give notice to elect to have its Bonds purchased or tendered, through its Participant, to the Paying Agent, and shall effect delivery of such Bonds by causing the Direct Participant to transfer the Participant's interest in the Bonds, on DTC's records, to the Paying Agent. The requirement for physical delivery of the Bonds in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Bonds are transferred by Direct Participants on DTC's records and followed by a book-entry credit of tendered Bonds to the Paying Agent's OTC account. 10. OTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to the Issuer or Paying Agent. Under such circumstances, in the event that a successor securities depository is not obtained, certificates are required to be printed and delivered. 11. The Issuer may decide to discontinue use of the system of book-entry-only transfers through OTC (or a successor securities depository). In that event, certificates will be printed and delivered to OTC. 8 12. The information in this section concerning DTC and DTC's book-entry system has been obtained from sources that the Issuer believes to be reliable, but the Issuer takes no responsibility for the accuracy thereof. THE FINANCING PLAN Proceeds from the sale of the Bonds will be used to provide long term financing for a portion of the costs of certain public improvements within the City (collectively, the "Bond Projects"), retire a portion of the City's outstanding general obligation temporary notes and to pay the costs associated with the issuance of the Bonds. The Bond Projects are as follows: Project Description 9th Street Bridge Smoky Hill River Renewal Final Design Sanitation Trucks Heritage Hall HVAC Magnolia Hills Estate No. 2 (SBD) Stone Lake Phase 3A (SBD) Markey Road Trail (SBD) Ordinance/ Resolution Ord. 02-10074; Res. 19-7677 Ord. 17-10885 Res. 20-7818 Res. 21-7931 Res. 19-7760 Res. 19-7751 Res. 21-7957 Authority K.S.A. 12-685 et seq. Kan Conts. Art 12, § 5 K.S.A. 12-2104 K.S.A. 12-1736 K.S.A. 12-6a01 et seq. K.S.A. 12-6a01 et seq. K.S.A. 12-6a01 et seq. Total: SOURCES AND USES OF FUNDS Principal Amount $1,890,000 1,605,000 1,495,000 160,000 1,470,000 1,195,000 25,000 $7,840,000 Funds to be used in the Financing Plan will be provided and applied approximately as follows, exclusive of accrued interest. Sources of Funds: Principal Amount Net Original Issue Premium Prepaid Special Assessment Total Sources of Funds Uses of Funds: Deposit to Improvement Fund Redemption of Series 2021-1 Notes Improvements Costs of Issuance Underwriter's Discount Total Application $7,840,000.00 397,576.30 567.91 $8,238,144.21 $5,335,181.11 2,773,685.19 82,629.91 46,648.00 $8,238,144.21 REMAINDER OF THIS PAGE LEFT BLANK INTENTIONALLY 9 RISK FACTORS AND INVESTMENT CONSIDERATIONS A PROSPECTIVE PURCHASER OF THE BONDS DESCRIBED HEREIN SHOULD BE AWARE THAT THERE ARE CERTAIN RISKS ASSOCIATED WITH THE BONDS WHICH MUST BE RECOGNIZED. THE FOLLOWING STATEMENTS REGARDING CERTAIN RISKS ASSOCIATED WITH THE OFFERING SHOULD NOT BE CONSIDERED AS A COMPLETE DESCRIPTION OF ALL RISKS TO BE CONSIDERED IN THE DECISION TO PURCHASE THE BONDS. PROSPECTIVE PURCHASERS OF THE BONDS SHOULD ANALYZE CAREFULLY THE INFORMATION CONTAINED IN THIS OFFICIAL STATEMENT AND ADDITIONAL INFORMATION IN THE FORM OF THE COMPLETE DOCUMENTS SUMMARIZED HEREIN, COPIES OF WHICH ARE AVAILABLE AND MAY BE OBTAINED FROM THE CITY OR THE UNDERWRITERS. Legal Matters Various state and federal laws, regulations and constitutional provisions apply to the obligations created by the Bonds. There is no assurance that there will not be any change in, interpretation of, or addition to such applicable laws, provisions and regulations which would have a material effect, either directly or indirectly, on the City or the taxing authority of the City. Limitations on Remedies Available to Owners of Bonds The enforceability of the rights and remedies of the owners of Bonds, and the obligations incurred by the City in issuing the Bonds, are subject to the following: the federal Bankruptcy Code and applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or affecting the enforcement of creditors' rights generally, now or hereafter in effect; usual equity principles which may limit the specific enforcement under state law of certain remedies; the exercise by the United States of America of the powers delegated to it by the United States Constitution; and the reasonable and necessary exercise, in certain unusual situations, of the police power inherent in the State of Kansas and its governmental subdivisions in the interest of serving a legitimate and significant public purpose. Bankruptcy proceedings, or the exercise of powers by the federal or state government, if initiated, could subject the owners of the Bonds to judicial discretion and interpretation of their rights in bankruptcy and otherwise, and consequently may involve risks of delay, limitation or modification of their rights. Debt Service Source: Issuer's Tax Revenues The Bonds are general obligations of the Issuer payable as to both principal and interest, if necessary, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The Legislature may from time to time adopt changes in the property tax system or method of imposing and collecting property and/or sales taxes within the State. The effects of such legislative changes could affect the Issuer's property tax and sales tax collections, and the impact could be material. Other future events, such as the loss of a major taxpayer, reductions in assessed value, increases in property tax rates of overlapping taxing units, or a decrease in sales tax revenues could increase effective property tax rates and the resulting increase could be material. Taxpayers may also challenge the value of property assigned by the county appraiser. If a taxpayer valuation challenge is successful, the liability of the Issuer to refund property taxes previously paid under protest may have a material adverse effect on the Issuer's financial situation. See "APPENDIX A-FINANCIAL INFORMATION CONCERNING THE CITY -Appraisal and Assessment Procedures." Kansas Public Employees Retirement System As described in "APPENDIX A -GENERAL INFORMATION CONCERNING THE CITY -Pension and Employee Retirement Plans," the Issuer participates in the Kansas Public Employees Retirement System ("KPERS"), as an instrumentality of the State to provide retirement and related benefits to public employees in Kansas. KPERS administers three statewide defined benefit retirement plans for public employees which are separate and distinct 10 with different membership groups, actuarial assumptions, experience, contribution rates and benefit options. The Issuer participates in the Police and Firemen's Retirement System ("KP&F") and the Public Employees Retirement System -Local Group (the "Plan"). Under existing law, employees make contributions and the Issuer makes all employer contributions to the Plan; neither the employees nor the Issuer are directly responsible for any unfunded accrued actuarial liability ("UAAL"). However, the Plan contribution rates may be adjusted by legislative action over time to address any UAAL. According to KPERS' Valuation Report, the Local Group had an UAAL of approximately $1.419 billion in calendar year 2020 and KP&F had an UAAL of approximately $918 million. Ta><atlon of Interest on the Bonds An opinion of Bond Counsel will be obtained to the effect that interest earned on the Bonds is excludable from gross income for federal income tax purposes under current provisions of the Internal Revenue Code of 1986, as amended (the "Code"), and applicable rulings and regulations under the Code; however, an application for a ruling has not been made and an opinion of counsel is not binding upon the Internal Revenue Service. There can be no assurance that the present provisions of the Code, or the rules and regulations thereunder, will not be adversely amended or modified, thereby rendering the interest earned on the Bonds includable in gross income for federal income tax purposes. The City has covenanted in the Bond Resolution and in other documents and certificates to be delivered in connection with the issuance of the Bonds to comply with the provisions of the Code, including those which require the City to take or omit to take certain actions after the issuance of the Bonds. Because the existence and continuation of the excludabi!ity of the interest on the Bonds depends upon events occurring after the date of issuance of the Bonds, the opinion of Bond Counsel described under ''TAX MATTERS" assumes the compliance by the City with the provisions of the Code described above and the regulations relating thereto. No opinion is expressed by Bond Counsel with respect to the excludability of the interest on the Bonds in the event of noncompliance with such provisions. The failure of the City to comply with the provisions described above may cause the interest on the Bonds to become includable in gross income as of the date of issuance. Premium on the Bonds The initial offering prices of certain maturities of the Bonds that are subject to optional redemption may be in excess of the respective principal amounts thereof. Any person who purchases such a Security in excess of its principal amount, whether during the initial offering or in a secondary market transaction, should consider that the Bonds are subject to redemption at par under the various circumstances described under THE BONDS-"Redemption Provisions." No Additional Interest or Mandatory Redemption upon Event of Ta><ability The Bond Resolution does not provide for the payment of additional interest or penalty on the Bonds or the mandatory redemption thereof if the interest thereon becomes includable in gross income for federal income tax purposes. Likewise, the Bond Resolution does not provide for the payment of any additional interest or penalty on the Bonds if the interest thereon becomes subject to income taxation by the State of Kansas. Suitability of Investment The tax exempt feature of the Bonds is more valuable to high tax bracket investors than to investors who are in low tax brackets, and so the value of the interest compensation to any particular investor will vary with individual tax rates. Each prospective investor should carefully examine this Official Statement, including the Appendices hereto, and its own financial condition to make a judgment as to its ability to bear the economic risk of such an investment, and whether or not the Bonds are an appropriate investment. 11 Market for the Bonds Ratings. The Bonds have been assigned the financial ratings set forth in the section hereof titled RATINGS. There is no assurance that a particular rating will remain in effect for any given period of time or that it will not be revised, either downward or upward, or withdrawn entirely, if in the judgment of the agency originally establishing such rating, circumstances so warrant. Any downward revision or withdrawal of any rating may have an adverse affect on the market price of the Bonds. Secondary Market. There is no assurance that a secondary market will develop for the purchase and sale of the Bonds. Prices of Bonds traded in the secondary market, though, are subject to adjustment upward and downward in response to changes in the credit markets. From time to time it may be necessary to suspend indefinitely secondary market trading in the Bonds as a result of financial condition or market position of broker- dealers, prevailing market conditions, lack of adequate current financial information about the City, or a material adverse change in the financial condition of the City, whether or not the Bonds are in default as to principal and interest payments, and other factors which may give rise to uncertainty concerning prudent secondary market practices. Recent Legislative Proposals Congress and the President periodically work on various proposals to increase income taxes and to reduce tax deductions and expenditures. These discussions have made it clear that the tax exemption of municipal bonds is considered a tax expenditure and as such there is no guaranty that the tax exempt status on municipal bonds will remain unchanged as a result of these discussions. If a legislative change is enacted which results in all, or a portion, of the interest on the Bonds being subjected to Federal income taxes, such legislation or proposals could affect the value or marketability of the Bonds. Prospective purchasers of the Bonds should consult their own tax advisers regarding the impact of any change in law on the Bonds. COVID-19 On March 11, 2020, the World Health Organization proclaimed the Coronavirus (COVID-19) to be a pandemic. In an effort to lessen the risk of transmission of COVID-19, the United States government, state and local governments and private industries have taken measures to limit social interactions in an effort to limit the spread of COVID-19, affecting business activities and impacting global, state and local commerce and financial markets. State and local governmental authorities continue efforts to contain and limit the spread of COVID-19. As of the date hereof, the Issuer has not experienced material adverse changes relative to its adopted budget with regard to expenditures or receipt of revenues. However, future revenue collections, including property tax collections that are essential to repayment of the Bonds, may deviate from historical or anticipated levels. The emergence of COVID-19 and the spread thereof continues to be an emerging and evolving issue. The Issuer is not able to predict and makes no representations as to the long term economic impact of the COVID-19 pandemic on the Issuer. LEGAL MATTERS All matters incident to the authorization and issuance of the Bonds by the City are subject to the approval of Gilmore & Bell, P.C., Kansas City, Missouri, Bond Counsel to the City. The factual and financial information appearing herein has been supplied or reviewed by certain officials of the City and its certified public accountants, as referred to herein. Bond Counsel has participated in the preparation of the matters appearing in the sections of this Official Statement captioned THE BONDS, LEGAL MATTERS, TAX MATTERS, and APPENDIX B -FORM OF 12 CONTINUING DISCLOSURE UNDERTAKING. TAX MATTERS General The following is a summary of the material federal and State of Kansas income tax consequences of holding and disposing of the Bonds. This summary is based upon laws, regulations, rulings and judicial decisions now in effect, all of which are subject to change (possibly on a retroactive basis). This summary does not discuss all aspects of federal income taxation that may be relevant to investors in light of their personal investment circumstances or describe the tax consequences to certain types of holders subject to special treatment under the federal income tax laws (for example, dealers in securities or other persons who do not hold the Bonds as a capital asset, tax-exempt organizations, individual retirement accounts and other tax deferred accounts, and foreign taxpayers), and, except for the income tax laws of the State of Kansas, does not discuss the consequences to an owner under state, local or foreign tax laws. The summary does not deal with the tax treatment of persons who purchase the Bonds in the secondary market. Prospective investors are advised to consult their own tax advisors regarding federal, state, local and other tax considerations of holding and disposing of the Bonds. Opinion of Bond Counsel In the opinion of Bond Counsel, under the law existing as of the issue date of the Bonds: Federal Tax Exemption: The interest on the Bonds (including any original issue discount properly allocable to an owner thereof) is excludable from gross income for federal income tax purposes. Alternative Minimum Tax. Interest on the Bonds is not an item of tax preference for purposes of computing the federal alternative minimum tax. Bank Qualification -The Bonds. The Bonds are "qualified tax-exempt obligations" within the meaning of Code § 26S(b)(3). Kansas Tax Exemption. The interest on the Bonds is exempt from income taxation by the State of Kansas. No Other Opinions. Bond Counsel's opinions are provided as of the date of the original issue of the Bonds, subject to the condition that the City comply with all requirements of the Code that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excludable from gross income for federal income tax purposes. The City has covenanted to comply with all such requirements. Failure to comply with certain of such requirements may cause the inclusion of interest on the Bonds in gross income for federal income tax purposes retroactive to the date of issuance of the Bonds. Bond Counsel is expressing no opinion regarding other federal, state or local tax consequences arising with respect to the Bonds. Other Tax Consequences Original Issue Discount. For federal income tax purposes, original issue discount is the excess of the stated redemption price at maturity of a Bond over its issue price. The stated redemption price at maturity of a Bond is the sum of all payments on the Bond other than "qualified stated interest" (i.e., interest unconditionally payable at least annually at a single fixed rate). The issue price of a Bond is generally the first price at which a substantial amount of the Bonds of that maturity have been sold to the public. Under Code § 1288, original issue discount on tax-exempt obligations accrues on a compound basis. The amount of original issue discount that accrues to an owner of a Bond during any accrual period generally equals (1) the issue price of that Bond, plus the amount of original issue discount accrued in all prior accrual periods, multiplied by (2) the yield to maturity on that Bond (determined on the basis of compounding at the close of each accrual period and properly adjusted for the length of the accrual period), minus (3) any interest payable on that Bond during that accrual period. The amount of original issue discount accrued in a particular accrual period will be considered to be received ratably on each day of the accrual period, will be 13 excludable from gross income for federal income tax purposes, and will increase the owner's tax basis in that Bond. Prospective investors should consult their own tax advisors concerning the calculation and accrual of original issue discount. Original Issue Premium. For federal income tax purposes, premium is the excess of the issue price of a Bond over its stated redemption price at maturity. The stated redemption price at maturity of a Bond is the sum of all payments on the Bond other than "qualified stated interest" (i.e., interest unconditionally payable at least annually at a single fixed rate). The issue price of a Bond is generally the first price at which a substantial amount of the Bonds of that maturity have been sold to the public. Under Code § 171, premium on tax-exempt obligations amortizes over the term of the Bond using constant yield principles, based on the purchaser's yield to maturity. As premium is amortized, the owner's basis in the Bond and the amount of tax-exempt interest received will be reduced by the amount of amortizable premium properly allocable to the owner, which will result in an increase in the gain (or decrease in the loss) to be recognized for federal income tax purposes on sale or disposition of the Bond prior to its maturity. Even though the owner's basis is reduced, no federal income tax deduction is allowed. Prospective investors should consult their own tax advisors concerning the calculation and accrual of premium. Sale, Exchange or Retirement of Bonds. Upon the sale, exchange or retirement (including redemption) of a Bond, an owner of the Bond generally will recognize gain or loss in an amount equal to the difference between the amount of cash and the fair market value of any property received on the sale, exchange or retirement of the Bond (other than in respect of accrued and unpaid interest) and such owner's adjusted tax basis in the Bond. To the extent the Bonds are held as a capital asset, such gain or loss will be capital gain or loss and will be long-term capital gain or loss if the Bond has been held for more than 12 months at the time of sale, exchange or retirement. Reporting Requirements. In general, information reporting requirements will apply to certain payments of principal, interest and premium paid on Bonds, and to the proceeds paid on the sale of Bonds, other than certain exempt recipients (such as corporations and foreign entities). A backup withholding tax will apply to such payments if the owner fails to provide a taxpayer identification number or certification of foreign or other exempt status or fails to report in full dividend and interest income. The amount of any backup withholding from a payment to an owner will be allowed as a credit against the owner's federal income tax liability. Collateral Federal Income Tax Consequences. Prospective purchasers of the Bonds should be aware that ownership of the Bonds may result in collateral federal income tax consequences to certain taxpayers, including, without limitation, financial institutions, property and casualty insurance companies, individual recipients of Social Security or Railroad Retirement benefits, certain S corporations with "excess net passive income," foreign corporations subject to the branch profits tax, life insurance companies, and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry or have paid or incurred certain expenses allocable to the Bonds. Bond Counsel expresses no opinion regarding these tax consequences. Purchasers of Bonds should consult their tax advisors as to the applicability of these tax consequences and other federal income tax consequences of the purchase, ownership and disposition of the Bonds, including the possible application of state, local, foreign and other tax laws. RATING Moody's Investors Service, has assigned a rating of "Aa3" to the Bonds. Any explanation of the significance of such rating may be obtained only from said rating agency. There is no assurance that the rating will remain for any given period of time or that they may not be lowered or withdrawn entirely by the rating service if, in their judgment, circumstances so warrant. Any such downward change in or withdrawal of the rating may have an adverse effect on the market price of the Bonds. MUNICIPAL ADVISOR Stifel, Nicolaus & Company, Incorporated, Kansas City, Missouri, has acted as Municipal Advisor to the City in connection with the sale of the Bonds. The Municipal Advisor has assisted the Issuer with the preparation of this Official Statement, but has not independently verified the factual and financial information contained herein. The Municipal 14 Advisor has also assisted the City with other matters relating to the issuance of the Securities. The fees of the Municipal Advisor are contingent upon the issuance of the Bonds. UNDERWRITING The Bonds were purchased at public sale by Country Club Bank, Leawood, Kansas (the "Underwriter") at a price equal to the par amount of the Bonds, plus a net premium of $397,576.30, less an underwriting discount of $46,648.00. ABSENCE OF MATERIAL LITIGATION The City, in the ordinary course of business, is a party to various legal proceedings. In the opinion of management of the City, any judgment rendered against the City in such proceedings would not materially adversely affect the financial position of the City. The Transcript of Proceedings will contain a certificate of non-litigation dated as of the closing date and executed by the City to the effect that, except as disclosed in the Official Statement, there is no controversy, suit, or proceeding of any kind pending or, to the knowledge of the City, threatened wherein or whereby any question is raised, or may be raised, questioning, disputing, or affecting in any way the legal organization of the City or its boundaries or the legality of any official act shown to have been done regarding the issuance of the Bonds or the constitutionality or validity of the obligation represented by the Bonds or the means provided for the payment of the Bonds. CONTINUING DISCLOSURE The Securities and Exchange Commission (the "SEC") has promulgated amendments to Rule 15c2-12 (the "Rule"), requiring continuous secondary market disclosure. In connection with the issuance of the Securities, the Issuer will enter into a continuing disclosure undertaking (the "Disclosure Undertaking") wherein the Issuer covenants to annually provide certain financial information and operating data (collectively, the "Annual Report") and other information necessary to comply with the Rule, and to transmit the same to the Municipal Securities Rulemaking Board. Pursuant to the Disclosure Undertaking, this Issuer shall, not later than the first day of the seventh month after the end of the Issuer's Fiscal Year, commencing with the year ending December 31, 2021. In the Bond Resolution, the Issuer covenants with the Underwriter and the Beneficial Owners to apply the provisions of the Disclosure Undertaking to the Bonds. This covenant is for the benefit of and is enforceable by the Beneficial Owners of the Bonds. For more information regarding the Disclosure Undertaking, see "APPENDIX B - FORM OF CONTINUING DISCLOSURE UNDERTAKING." The Issuer believes it has complied during the past five years with its prior undertakings under the Rule, except as follows: On September 28, 2020, the Issuer entered into a Loan Agreement with the Kansas Department of Health and Environment to finance improvements to the City's water distribution system. The Ordinance authorizing the Issuer's execution of the Loan Agreement was published on October 1, 2020. On October 16, 2020, the Issuer filed an event notice related to such Loan Agreement. The Issuer's audited financial statements for each of the last five fiscal years were not completed by the filing deadlines primarily because of challenges with financial software conversion (which has since been completed), staff turnover and delayed receipt of component unit audits. In compliance with the Issuer's prior disclosure undertakings, the Issuer timely filed unaudited financial statements and promptly filed audited financial statements when they became available. 15 CERTIFICATION OF THIS OFFICIAL STATEMENT The preparation and distribution of this Official Statement has been authorized by the City. This Official Statement is hereby duly approved by the governing body of the City as of the date on the cover page hereof. CllY OF SALINA, KANSAS 16 APPENDIX A FINANCIAL OVERVIEW OF THE CITY 2021 Estimated Actual Valuation (1) 2021 Assessed Valuation Outstanding General Obligation Bonds (2) Population (2020 U.S. Census Bureau Estimate) General Obligation Debt Per Capita Ratio of General Obligation Debt to Estimated Actual Valuation Ratio of General Obligation Debt to Estimated Assessed Valuation Outstanding Temporary Notes Outstanding State Loans (3) Outstanding Lease Purchase Obligations Outstanding Utility System Revenue Bonds Outstanding Special Obligation Revenue Bonds Overlapping General Obligation Debt (4) Direct and Overlapping General Obligation Debt (5) Direct and Overlapping General Obligation Debt Per Capita Ratio of Direct and Overlapping Debt to Estimated Actual Valuation Ratio of Direct and Overlapping Debt to Estimated Assessed Valuation $ 3,392,138,959 $ 519,483,033 $ 75,095,000 $ $ $ $ $ $ $ $ $ 46,889 1,602 2.21% 14.46% 0 76,466,427 495,898 8,865,000 22,295,000 168,168,440 319,729,867 6,819 9.43% 61.55% (1) For a further description of how Estimated Actual Valuation is calculated and additional historical figures see the section titled FINANCIAL INFORMATION CONCERNING THE CITY-"Estimated Actual Valuation". (2) Includes the Bonds. (3) The City intends to repay such loans from the net revenues of its municipal water and sewer system. However, such loans are ultimately secured by the City's full faith and credit. See DEBT SUMMARY OF THE CITY-"Current Indebtedness -State Loans". (4) For a more detailed explanation of the overlapping debt of the other jurisdictions, see DEBT SUMMARY OF THE CITY -"Overlapping Debt." Includes general obligation bonds issued by Saline County which are anticipated to be repaid by a dedicated sales tax. (5) Includes outstanding general obligation bonds, temporary notes and state loans of the City and general obligation bonds of overlapping jurisdictions. A-1 GENERAL INFORMATION CONCERNING THE CITY Location and Size The City of Salina is located in north central Kansas, near the geographic center of the contiguous United States. It is the seventh largest city in Kansas, with a 2020 U.S. Census Bureau estimate of 46,889. The City is the county seat for Saline County which had an estimated 2020 U.S. Census Bureau population of 54,303. Situated at the intersection of Interstate Highways 70 and 135, the City of Salina serves as the industrial, medical, retail, trade and service hub for north central Kansas. Kansas City, Kansas, and Wichita, Kansas, are 175 and 95 miles away, respectively, via the direct access of these two major highways. The City encompasses a total area of approximately 23 square miles. Government The Town of Salina was organized in 1858 under the Town and Village Act in the State of Kansas. The City has had a Commission-City Manager form of government since 1921. The Commission comprises five members elected at-large. Each year the Commission chooses one member to act as Mayor. The City Manager is appointed by the Governing Body and acts as its primary agent in accordance with state statute. Other city officers and employees are appointed by the City Manager. The Governing Body is responsible for the policy determination, and the City Manager is responsible for the administration of the municipal government. Salina became a City of the first class on July 9, 1920. There are no organized city employee unions. The present elected officials of the City, along with the expiration of their current terms of office, are as follows: Population Name Trent Davis, M.D. Karl F. Ryan Mike Hoppock Greg Lenkiewicz Bill Longbine Title Mayor Commissioner Commissioner Commissioner Commissioner Term Expires 2024 2024 2024 2026 2026 The City of Salina has a population that is approaching metropolitan area status. This is defined by the U.S. Census Bureau as cities with 50,000 inhabitants or more. The following table and graph show the population for the City for selected years as provided by the U.S. Census Bureau. Year 2020 2019 2018 2017 2016 2015 A-2 U.S. Census Bureau Population 46,889 46,550 46,716 46,994 47,336 47,813 Police and Fire Protection The City of Salina provides police and fire protection services to residents of the City and surrounding areas. The two departments employ 187 full-time employees for out of the 428 total employed by the City. Firefighting services are provided from four stations located throughout the City with 87 full-time firefighters. The fire department operates 31 vehicles and provides emergency medical services. The Department was recently upgraded to an Insurance Services Office rating of 2. The police department employs 97 personnel, of which 77 are sworn positions. The Department operates 45 police vehicles, including patrol vehicles, motorcycles, and scooters. Both Departments are accredited by their respective professional organizations. Educational Facilities The City of Salina has a very complete and diverse educational system from the primary level up to its higher educational institutions. Unified School District No. 305 provides public education through its eight elementary, two middle, and two senior high schools. The District also operates alternative education, vocational-technical, and special education schools. Current enrollment is over 7,000. Additionally, there are a number of parochial institutions that operate two grade schools, two junior high schools, and one senior high school. The City is home to five regional or private upper-level specialty schools. The Kansas Highway Patrol has a training academy located in Salina. Kansas State University Salina Aerospace and Technology Campus. The University offers a variety of two- and four-year aviation and technology degree programs. Areas of emphasis include civil, electrical and mechanical engineering technologies, aeronautical studies, and avionics. The campus is located entirely within the boundaries of the Salina Airport Industrial Center. Approximately 642 students are currently enrolled in the school. Kansas Wesleyan University. Kansas Wesleyan University was founded in 1886 and is located within the City. Currently, Kansas Wesleyan maintains an enrollment of approximately 716 students, the majority from Kansas and surrounding states. The school, based on a liberal arts foundation, offers more than 50 major programs, including graduate studies. Evening degree completion programs for adults are also available. Kansas Wesleyan is a member of the Associated Colleges of Central Kansas, a consortium of six academic institutions within 70 miles of the University through which students may enroll in courses and utilize resources. The University of Kansas School of Medicine and School of Nursing have a campus in Salina. This campus is aimed at students with a strong desire to practice medicine in rural areas. The School of Medicine has 32 students and the School of Nursing has 48 students. The Kansas Center for Rural Health, started in 2022, is also located on the campus. The Kansas Center for Rural Health is focused on improving health disparities and outcomes in rural Kansas through research, education and service. Transportation In addition to 1-70 and 1-135, US-81 and US-40 also intersect Salina. Several freight companies provide motor freight service in Salina with direct and connecting schedules to all cities in the United States. Bus service is available at regular intervals during each day in all directions. Union Pacific gives the City rail service in four directions out of the City and provides daily package-car service in and out of Salina. There are approximately 8 daily freights stopping in the City. Existing terminals have adequate capacity to handle present and greatly increased future capacity. Approximately 30 miles of storage tracks are available. A-3 The City is served by the Salina Regional Airport and scheduled air service is provided by means of an U.S. Department of Transportation (USDOT) Essential Air Service (EAS) Program subsidy. The current EAS Program provider is SkyWest Airlines operating as United Express. EAS Program subsidy contracts are rebid by eligible air carriers every two to three years. The USDOT is currently accepting proposals from eligible air carriers for a new EAS Program subsidy contract at Salina. Utilities and Infrastructure Evergy, Inc. supplies electricity and Kansas Gas Service provides natural gas to the City. The City owns its own water and sewage system. Additionally, the City is responsible for street maintenance and police and fire protection for the Airport. SBC provides telephone service. Two cellular phone companies provide service to the City. Health Facilities The City is served by Salina Regional Health Center ("SRHC"), a 394-bed (223 staffed) regional facility. SRHC is an acute care facility for the diagnosis and treatment of all types of diseases and conditions, and includes a cancer treatment center and two medical office buildings. The institution is also a 50% partner in a separate surgical hosp Ital adjacent to the Asbury campus of SRHC. Several other facilities providing mental health services, counseling, and alcohol and drug dependency treatment programs are located in the City. Financial Institutions Four banks are headquartered in the City and reported combined deposits in excess of $1.139 billion as of Spring, 2021. A savings bank has a branch office in the City. There are several credit unions available in the city. Source: Kansas Bank Directory Pension and Employee Retirement Plans The Issuer participates in the Kansas Public Employees Retirement System ("KPERS") established in 1962, as an instrumentality of the State, pursuant to K.S.A. 74-4901 et seq., to provide retirement and related benefits to public employees in Kansas. KPERS is governed by a board of trustees consisting of nine members each of whom serve four-year terms. The board of trustees appoints an executive director to serve as the managing officer of KPERS and manage a staff to carry out daily operations of the system. As of December 31, 2020, KPERS serves approximately 326,000 members and approximately 1,S00 participating employers, including the State, school districts, counties, cities, public libraries, hospitals and other governmental units. KPERS administers the following three statewide, defined benefit retirement plans for public employees: (a) Kansas Public Employees Retirement System; (b) Kansas Police and Firemen's Retirement System; and (c) Kansas Retirement System for Judges. These three plans are separate and distinct with different membership groups, actuarial assumptions, experience, contribution rates and benefit options. The Kansas Public Employees Retirement System is the largest of the three plans, accounting for approximately 95% of the members. The Kansas Public Employees Retirement A-4 System is further divided into two separate groups, as follows: (a) State/School Group -includes members employed by the State, school districts, community colleges, vocational-technical schools and educational cooperatives. The State of Kansas makes all employer contributions for this group, the majority of which comes from the State General Fund. (b) Local Group -all participating cities, counties, library boards, water districts and political subdivisions are included in this group. Local employers contribute at a different rate than the State/School Group rate. KPERS is currently a qualified, governmental, § 401(a) defined benefit pension plan, and has received IRS determination letters attesting to the plan's qualified status dated October 14, 1999 and March 5, 2001. KPERS is also a "contributory" defined benefit plan, meaning that employees make contributions to the plan. This contrasts it from noncontributory pension plans, which are funded solely by employer contributions. The Issuer's employees currently annually contribute 6% of their gross salary to the plan if such employees are KPERS Tier 1 members (covered employment prior to July 1, 2009), KPERS Tier 2 members (covered employment on or after July 1, 2009), or KPERS Tier 3 members (covered employment on or after January 1, 2015). In 2021, the Legislature authorized the issuance of revenue bonds to provide net proceeds of up to $500 million (the "Revenue Bonds") the proceeds of which must be applied to the unfunded actuarial pension liability as directed by KPERS. The Revenue Bonds in the principal amount of $504,535,000 were issued August 26, 2021. The repayment of the Revenue Bonds shall be subject to legislative annual appropriation, shall not be an obligation of the KPERS system, and the full faith and credit or taxing power of the State shall not be pledged to the repayment of the Revenue Bonds. Due to the authorization of the Revenue Bonds, the Legislature changed the State/School employer contribution rate from 14.09% to 13.33% for fiscal year 2022 and from 13.86% to 13.11% for fiscal year 2023. The Issuer's contribution varies from year to year based upon the annual actuarial valuation and appraisal made by KPERS, subject to legislative caps on percentage increases. The Issuer's contribution is 8.87% of the employee's gross salary for calendar year 2021. The Issuer's contribution is projected to change to 8.90% of gross compensation for calendar year 2022. In addition, the Issuer contributes 1% of the employee's gross salary for Death and Disability Insurance for covered employees; provided that starting July 1, 2021, there will be a moratorium on the Death and Disability Insurance rate, and the Issuer will contribute 0% of the employee's gross salary for Death and Disability Insurance for covered employees after such date. According to the Valuation Report as of December 31, 2020 (the "2020 Valuation Report") the KPERS Local Group, of which the Issuer is a member, carried an unfunded accrued actuarial liability ("UAAL") of approximately $1.419 billion at the end of 2020. The amount of the UAAL in 2020 changed from the previous year's amount due to the factors discussed in the 2020 Valuation Report; such report also includes additional information relating to the funded status of the KPERS Local Group, including recent trends in the funded status of the KPERS Local Group. A copy of the 2020 Valuation Report is available on the KPERS website at kpers.org/about/reports.html. The Issuer has no means to independently verify any of the information set forth on the KPERS website or in the 2020 Valuation Report, which is the most recent financial and actuarial information available on the KPERS website relating to the funded status of the KPERS Local Group. The 2020 Valuation Report sets the employer contribution rate for the period beginning January 1, 2023, for the KPERS Local Group, and KPERS' actuaries identified that an employer contribution rate of 8.43% of covered payroll would be necessary, in addition to statutory contributions by covered employees, to eliminate the UAAL by the end of the actuarial period set forth in the 2020 Valuation Report. The statutory contribution rate of employers currently equals the 2020 Valuation Report's actuarial rate. As a result, members of the Local Group are adequately funding their projected actuarial liabilities and the UAAL can be expected to diminish over time. The required employer contribution rate may increase up to the maximum statutorily allowed rate, which is 1.2% in fiscal year 2017 and thereafter. A-5 The Issuer has established membership in the Kansas Police and Fire Retirement System ("KP&F") for its police and fire personnel. KP&F is a division of and is administered by KPERS. Annual contributions are adjusted annually based on actuarial studies, subject to legislative caps on percentage increases. According to the 2020 Valuation Report, KP&F carried an UAAL of approximately $918 million at the end of 2020. For KP&F, the Issuer's employees currently annually contribute 7.15% of their gross salary to the plan. For the year beginning January 1, 2021, the Issuer contributes 22.80% of employees' gross compensation. Beginning January 1, 2022, the Issuer's contribution is projected to change to 22.99% of gross compensation for calendar year 2022. The Issuer is required to implement GASB 68 -Accounting and Financial Reporting for Pensions. KPERS produces a Schedule of Employer and Nonemployer Allocations and Schedules of Pension Amounts by Employer and Nonemployer (the "GASB 68 Report") which provides the net pension liability allocated to each KPERS participant, including the Issuer. The GASB 68 Report is available on the KPERS website at kpers.org/about/reports.html. The Issuer has no means to independently verify any of the information set forth on the KPERS website or in the GASB 68 Report. It is important to note that under existing State law, the Issuer has no legal obligation for the UAAL or the net pension liability calculated by KPERS, and such figures are for informational purposes only. Other Information Public recreation facilities available to city residents include 27 parks, a public golf course, baseball/softball fields, the Kenwood Cove Aquatic Park, the Stifel Theatre for the Performing Arts, the Salina Community Theater, two museums and tennis courts. Two private clubs provide additional recreational opportunities for residents of the City. The Tony's Pizza Events Center (formerly the Bicentennial Center), a 7,500-seat facility, with over 40,000 square feet of exhibit space, nicknamed "Mid-America's Meeting Place", provides a venue for the region's numerous concerts, exhibitions, conventions, and other events are also held in the Center. There are several radio stations in the City. Five standard television stations from Wichita serve the Salina area. Additionally, Cox Communications provides cable television and broadband internet service to subscribing customers. One public library with over 230,000 volumes, two college libraries, a medical library, and a law library are located within the City. ECONOMIC INFORMATION CONCERNING THE CITY The City of Salina 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 City. Such companies include Schwan's Global Supply Chain, Inc., Salina Vortex, GeoProbe, Bergkamp, Kasa Industrial Controls, Premier Pneumatics, Great Plains Manufacturing, PKM Steel, Crestwood Cabinets, McShares, Inc., Pepsi Cola, Rev Group, Exide Battery, Advance Auto Parts Distribution Center, and Signify. Currently, manufacturing, retail trade, and service industries rank as the three primary employers in the City. No single industry is dominant. The government sector and wholesale trade industries make up the second tier of Salina employers. The City serves as a 24-county regional trade center for north central Kansas. Many individuals and businesses within a 70-mile radius travel to the City to purchase consumer goods and services. This designation as a regional trade center is supported by the fact that the City had the second highest "trade pull factor" of all Kansas first class cities in 2021 according to Kansas Department of Revenue. City trade pull factor is computed by dividing the per capita sales tax of a city by the statewide per capita sales tax. A-6 According to the Economic Impact Report, from December 31, 2020 prepared by the Docking Institute of Public Affairs at Fort Hays State University and published in April 2021, businesses and organizations at the Salina Regional Airport and Airport Industrial Center employed 7,005 employees with a total level economic activity for 2020 of approximately $1,297,934,889. The report also cited that the Airport/Airport Industrial Center accounted for 13.0% of the employment in Saline County and 35% of the total economic activity in a seven-county area. The Kansas Department of Labor estimated the civilian labor force in the City of Salina for the year 2021 to be 24,962 persons. The estimated median household income for the City in 2019 was $50,490, and owner-occupied housing rates in the City were 63.4%. Salina is a city centered more on industry than agriculture. Currently, there are approximately 100 manufacturing and processing companies located in the City. The City, Saline County, the Chamber of Commerce, and the Salina Airport Authority have developed several economic incentives which can be offered as inducements to opening industrial facilities. These include property tax abatement for basic industry, the waiving of building permit and inspection fees, refunding of sales tax paid on machinery and equipment, and providing training for employees through the Salina Area Technical College and the Kansas State University at Salina. Additionally, a "build- to-suit-tenant" agreement is available on sites in the Airport Industrial Center that can provide 100% financing for land and building costs. In recent years, Dillon Companies, Inc., a subsidiary of Kroger Company, recently opened a 77,000 square foot facility. Schwan's Company is building a new 400,000 square foot expansion at the existing manufacturing facility. The project is expected to bring 225 new jobs by 2023. Great Plains Manufacturing announced an expansion in Salina in late 2020. Dick's Sporting Goods and Marshalls clothing store opened in a building formerly occupied by Sutherland Lumber Company. In addition, several new restaurants have opened or expanded, including Ya Vas Bistro, Old Chicago Pizza and Barillo Grille. The Salina Airport Authority The Salina Airport Authority (the "Authority") is a body corporate and politic. The Authority was created by the City of Salina in April 1965 pursuant to the authority granted to the City by the surplus property and public airport authority act of the State of Kansas. The Authority was created for the purpose of accepting as surplus property portions of the former Schilling Air Force Base, which was closed by the United States Department of Defense in June 1965. By quitclaim deed the Authority received over 2,900 acres of land and numerous buildings for the purpose of operating and developing the Salina Regional Airport and the Salina Airport Industrial Center. The Authority is managed and controlled by a five-member Board of Directors appointed by the Salina City Commission. The Salina Regional Airport (the "Airport") is the only commercial service airport serving Salina/Saline County and the 24-county area, which comprises North Central Kansas. The Airport also services the corporate, business, private aviation and flight training needs of industry, business and individuals in the area. The Airport is also used by Kansas State University Salina Aerospace and Technology Campus. (K-State Salina) The K-State Salina campus is located adjacent to the Airport. K-State Salina offers degrees in professional flight training, airframe and power plant maintenance, UAS, airport management and avionics technology. K-State Salina's fleet of training aircraft use the Airport daily. Other significant activity includes the Airport's role as an Airport of Embarkation/Debarkation for Fort Riley, Kansas located 60 miles to the east of Salina on 1-70. The Airport accommodates a wide variety of aircraft including business jets, military, flight training and general aviation aircraft. During calendar year 2021, the Salina Air Traffic Control Tower logged over 80,000 aircraft operations serving the needs of numerous business jets, the professional pilot training department at Kansas State Salina, general aviation, and military aircraft. The Airport's fixed base operator, Avflight Salina, delivered over 2.096 million gallons of fuel to the wide variety of aircraft utilizing the Airport during calendar year 2021. A-7 The Airport and Airport Industrial Center is home for over 125 businesses and organizations. One of the primary functions of the Authority is to facilitate the continued growth of jobs and payroll at the Airport and Airport Industrial Center. The Authority works in partnership with the City of Salina, Saline County, Salina Community Economic Development Organization, the Salina Area Chamber of Commerce, and the Kansas Department of Commerce for the retention of existing business and industry and the recruitment of new business and industry. A 2021 summary report prepared by the Docking Institute of Public Affairs at Fort Hays State University cited the business and organizations located at the Salina Regional Airport and Airport Industrial Center contributed approximately 42% of the total economic activity in Saline County during 2021." Airport and Airport Industrial Center businesses and organization account for 17% of the total employment for Saline County. Major Employers Industrial development during the past ten years has established a broad, industrial base in and around the City. A list of the major employers is as follows. All figures represent total full-time employment excluding seasonal and part-time employees. Name Salina Regional Health Center Unified School District No. 305 Schwan's Global Supply Chain, Inc. Great Plains Manufacturing Exide Technologies City of Salina Salina Vortex Saline County Walmart REV Group Source: Salina Chamber of Commerce Product/Business Healthcare School System Manufacturing Agricultural & Landscaping Equipment Battery Manufacturer City Government Manufacturing Local Government Discount Retail Manufacturing Estimated Employment 1,875 1,500 1,200 1,200 700 425 385 325 250 175 The following table shows the per capita personal income for residents of Saline County and the State during the years indicated: Year 2020 2019 2018 2017 2016 2015 Source: Kansas Statistical Abstract Saline County N/A $50,820 49,983 47,831 46,084 44,542 A-8 State of Kansas $56,073 53,453 51,474 48,869 47,510 47,386 Labor Force The following tables show the labor force figures for the City of Salina and the State of Kansas. City of Salina: Total Unemployment Year Labor Force Employed Unemployed Rate 2021 (Dec) 24,962 24,391 571 2.3% 2020 25,105 23,673 1,432 5.7 2019 25,643 24,847 796 3.1 2018 25,685 24,784 781 3.1 2017 26,055 25,198 857 3.3 2016 26,194 25,170 1,024 3.9 State of Kansas: Total Unemployment Year Labor Force Employed Unemployed Rate 2021 (Dec) 1,500,738 1,450,942 49,796 3.3% 2020 1,497,003 1,408,995 88,008 5.9 2019 1,486,620 1,439,563 47,057 3.2 2018 1,491,587 1,445,819 45,768 3.1 2017 1,478,783 1,425,216 53,567 3.6 2016 1,484,001 1,422,122 61,879 4.2 Source: Kansas Department of Labor DEBT SUMMARY OF THE CITY Current Indebtedness The following is an overview of the City's outstanding indebtedness by classification as of the dated date of the Bonds. Figures do not include bonds for which payment has been provided through the creation of designated escrow accounts. General Obligation Bonds: Date Issued 02-15-13 07-29-15 07-27-16 07-27-16 07-27-17 11-27-18 04-24-19 04-29-20 11-30-20 04-29-21 09-08-21 04-28-22 Total Series 2013-A 2015-A 2016-A 2016-B 2017-A 2018-A 2019-A 2020-A 2020-B 2021-A 2021-B 2022-A Purpose Taxable Improvements Revenue and Internal Imp. Internal Improvements Refunding Improvements Improvements Improvements Improvements Refunding Improvements Refunding Improvements A-9 Amount of Issue $1,360,000 6,825,000 6,570,000 13,750,000 9,310,000 2,090,000 11,090,000 5,210,000 8,450,000 7,645,000 6,220,000 7,840,000 Final Maturity 10-01-28 10-01-35 10-01-36 10-01-31 10-01-37 10-01-33 10-01-39 10-01-35 10-01-36 10-01-41 10-01-34 10-01-42 Amount Outstanding $725,000 4,795,000 5,220,000 10,190,000 7,940,000 1,750,000 10,440,000 4,715,000 7,615,000 7,645,000 6,220,000 7,840,000 $75,095,000 A portion of the City's outstanding general obligation bonds are payable from special assessments levied upon properties benefited by certain internal improvement projects, local option sales tax and transfers from enterprise funds of the City. If such payments are not provided in a timely manner, the principal of and interest on the bonds must then be paid from the City's ability to levy unlimited ad valorem taxes. See FINANCIAL INFORMATION -"Special Assessments" for a further description of special assessment financing. Temporary Notes: Series 2021-1 Date Issued 04-29-21 Final Maturity Date 05-01-22 Original Note Amount 5,230,000 Amount Outstanding $Oil) (1lTo be redeemed with the proceeds from the sale of the Bonds and other available funds. Utility System Revenue Bonds: Revenue bonds are payable solely from the net revenues derived by the City from the operation of its combined water and sewage system. Revenue bonds do not represent a general obligation indebtedness of the City for which the City's taxing ability has been pledged. Date Pledged Amount Final Amount Issued Revenue Series of Issue Maturit~ Outstanding 09-11-19 Water and Sewer System 2019 $10,330,000 10-01-31 $8,865,000 lease Obligations (as of December 31, 2021): Year Original Final Amount Item Issued Amount Year Outstanding HVAC System 2012 $1,100,000 2027 $495,898 Special Obligation Revenue Bonds: The following special obligation revenue bonds are payable solely from sales tax collected within certain special districts in the City. Revenue bonds do not represent a general obligation indebtedness of the City for which the City's taxing ability has been pledged. Date Pledged Amount Final Amount Issued Revenue Series of Issue Maturit~ Outstanding 12-21-18 Sales Tax Revenue 2018-A $18,250,000 12-01-38 $17,975,000 12-21-18 Sales Tax Revenue 2018-B 4,320,000 12-01-38 4,320,000 Total: $22,295,000 A-10 State Loans The following is a list of outstanding loans the City has taken out through the Kansas Department of Health and Environment ("KDHE") revolving loan fund program. KDHE loans are typically repaid by net revenues from municipal water or sewer systems. Regardless of the intended source of repayment, the loans are ultimately secured by the City's ability to levy unlimited ad valorem property taxes. Project Year Final Original Amount Number Pur(!ose Originated Pallment Date Amount Outstanding KDHE 2629 Water 2014 08-01-34 $8,562,911 $5,478,622 KDHE 2917 Water 2019 02-01-40 32,000,000 29,425,065 KDHE 2957 Water 2019 02-01-40 4,250,000 3,908,016 KDHE 2998 Water 2019 02-01-40 4,250,000 4,157,844 KDHE 2050 Sewer 2020 03-01-35 2,250,000 1,996,880 KDHE 2049* Sewer 2021 09-01-42 31,500,000 31,500,000 $76,466,427 *Design on this project is in progress. Construction is expected to begin in 2023. Principal amount shown is maximum authorized loan amount which is subject to change. Overla(!ping Debt According to the Saline County Clerk's office and bond offering documents, the following table shows the overlapping general obligation indebtedness of the City. The percent of an overlapping jurisdiction's debt that is applicable to the City is calculated by dividing the assessed valuation of that portion of the jurisdiction's boundaries which overlap those of the City by the total assessed valuation of such jurisdiction. Jurisdiction Salina Airport Authority Saline County Unified School District No. 305 11lAs of the closing date of the Bonds. Amount Outstanding111 $19,615,000 75,523,55412) 99,700,000 Estimated Share of the City Amount $ 19,615,000 55,732,387 92,821,053 $168,168,440 Percentage 100.00% 73.79 93.10 12l1ncludes $74,900,000 of bonds issued by Saline County that have a pledge of both property taxes and a dedicated 0.50% retailers' sales tax of the county. However, based on historical collections, the County anticipates that such bonds will be repaid entirely from the sales tax. A-11 Annual Debt Pavments The following is a list of annual debt service requirements for the City's currently outstanding general obligation bonded indebtedness. All amounts are rounded to the nearest whole dollar. Existing Bonds Series 2022-A Bonds Year Prlncleal Interest Princieal Interest Total 2022 $5,950,000 $2,006,849 -$7,956,849 2023 5,915,000 1,693,861 $390,000 $382,755 8,381,616 2024 5,740,000 1,475,341 525,000 253,000 7,993,341 2025 5,450,000 1,319,166 550,000 232,000 7,551,166 2026 4,750,000 1,167,246 560,000 210,000 6,687,246 2027 4,530,000 1,031,789 590,000 187,600 6,339,389 2028 4,250,000 905,754 615,000 164,000 5,934,754 2029 3,990,000 785,646 635,000 139,400 5,550,046 2030 3,525,000 688,196 410,000 114,000 4,737,196 2031 3,445,000 598,669 425,000 103,750 4,572,419 2032 3,370,000 510,449 430,000 93,125 4,403,574 2033 3,350,000 425,498 430,000 81,300 4,286,798 2034 3,200,000 339,701 440,000 68,400 4,048,101 2035 3,035,000 258,613 450,000 55,200 3,798,813 2036 2,335,000 178,688 465,000 41,700 3,020,388 2037 1,570,000 117,475 335,000 27,750 2,050,225 2038 1,060,000 71,650 110,000 17,700 1,259,350 2039 1,085,000 43,200 115,000 14,400 1,257,600 2040 350,000 14,100 120,000 10,950 495,050 2041 350,000 7,100 120,000 7,350 484,450 $67,255,000 $13,638,991 $7,840,000 $2,208,130 $90,937,121 *Excludes payments made prior to the closing date of the Bonds. Historical Debt Information The following table shows historical balances of outstanding general obligation bonds for the City during the most recent five-year period. Bonds Debt to Debtto U.S. Debt Outstanding Assessed Estimated Actual Census Per Year December31 Valuation Valuation Por:1ulation Caeita 2020 $65,330,000 12.79% 1.96% 46,550 $1,403.44 2019 58,170,000 11.53 1.78 46,550 $1,261.22 2018 54,885,000 11.25 1.74 46,716 1,174.87 2017 59,985,000 12.46 1.94 46,994 1,276.44 2016 56,875,000 12.03 1.87 47,336 1,201.52 2015 57,535,000 12.43 1.94 47,813 1,203.33 A-12 Future Indebtedness The City annually prepares and adopts a five-year capital improvements plan. This plan identifies and prioritizes potential capital improvement projects within the City and includes the respective funding sources. Over the next two years the City anticipates issuing general obligation bonds to retire its outstanding general obligation notes as well as providing general obligation note and/or bond funding for approximately $8,000,000 of improvements. Borrowing amounts described above do not include future subdivision improvement projects financed with general obligation bonds payable as to both principal and interest in part from special assessments levied upon the benefitted property. The City typically undertakes such projects after receiving and reviewing a valid petition from property owners. See FINANCIAL INFORMATION -"Special Assessments". Debt Payment Record The City has always met principal and interest payments on all outstanding bonds and temporary notes when due and payable. Legal Debt Limits Cities within Kansas are permitted to issue bonds in an aggregate amount not to exceed 30% of the total assessed valuation of the city. Bonds issued for the purpose of improving, acquiring, enlarging, or extending municipal utilities, including storm and sanitary sewer systems; bonds issued to pay the cost of improvements to intersections and streets in front of city or school district property; bonds for bridges as authorized by a vote of the electors of a city; bonds issued to refund outstanding bonds; and bonds payable from revenue sources other than the general taxing authority of the city are not included in total aggregate debt for purposes of computing a city's debt limitation. FINANCIAL INFORMATION CONCERNING THE CITY Accounting. Budgeting and Auditing Procedures The City follows a modified accrual basis of accounting for all tax supported funds of the City, including the General Fund. An annual budget of estimated receipts and disbursements for the coming calendar year is required by statute to be prepared for all funds (unless specifically exempted). The budget is prepared utilizing the modified accrual basis which is further modified by the encumbrance method of accounting. For example, commitments such as purchase orders and contracts, in addition to disbursements and accounts payable, are recorded as expenditures. The budget lists estimated receipts by funds and sources and estimated disbursements by funds and purposes. The proposed budget is presented to the governing body of the City prior to August 1, with a public hearing required to be held prior to August 15, with the final budget to be adopted by a majority vote of the governing body of the City prior to August 25 of each year (or September 20 if the City must conduct a public hearing to levy taxes in excess of its revenue neutral rate described below). Budgets may be amended upon action of the governing body after notice and public hearing, provided that no additional tax revenues may be raised after the original budget is adopted. The City may levy taxes in accordance with the requirements of its adopted budget. Property tax levies are based on the adopted budget of the City and the assessed valuations provided by the County appraiser. In 2021, the Kansas Legislature passed legislation (the "Revenue Neutral Tax Act") that repeals the "tax lid" (formerly K.S.A. 79-2925c) and provides that, beginning January 1, 2021, a taxing subdivision (which includes any political subdivision of the State that levies an ad valorem property tax, including the City) is not authorized to levy a property tax rate in excess of its revenue neutral rate without first providing notice, holding a public hearing, and authorizing such property tax rate by majority vote of its governing body. The revenue neutral rate means the tax rate for the A-13 current tax year that would generate the same property tax revenue as levied the previous tax year using the current tax year's total assessed valuation. The Revenue Neutral Tax Act provides that by June 15 of every year, each county clerk shall calculate the revenue neutral rate for each taxing subdivision in their respective county. If a taxing subdivision desires to levy a tax rate in excess of its revenue neutral rate, it must first publish notice of a public hearing and notify the county clerk of the taxing subdivision's intent to exceed the revenue neutral rate. The county clerk is required to provide notice of the public hearing to each taxpayer with property in the taxing subdivision, along with following information concerning the taxing subdivision: (1) the revenue neutral rate, (2) the proposed property tax revenue needed to fund the proposed budget, (3) the proposed tax rate based on the proposed budget, (4) the tax rate and property tax of each taxing subdivision on the taxpayer's property from the previous year's tax statement, (5) the appraised value and assessed value of the taxpayer's property, (6) estimates of the tax for the current tax year on the taxpayer's property based on the revenue neutral rate of each taxing subdivision and any proposed tax rates that exceed the revenue neutral rates, (7) the difference between the estimates of tax based on the proposed tax rate and the revenue neutral rate. The public hearing regarding exceeding the revenue neutral rate is to he held between August 10 and September 10, and can be held in conjunction with the taxing subdivision's budget hearing. If multiple taxing subdivisions within the county are required to hold a public hearing, the notices to the taxpayer can be combined into a single notice. After the public hearing, the taxing subdivision can approve exceeding the revenue neutral rate by a majority vote of its governing body, and the amount of tax to be levied must be certified to the county clerk by September 20. The taxing subdivision's adopted budget shall not result in a tax rate in excess of its proposed rate stated in the notice provided to the taxpayers. If a taxing subdivision fails to comply with the requirements of the Revenue Neutral Tax Act, it shall refund to the taxpayers any property taxes over collected based on the amount of the levy that was in excess of the revenue neutral rate. The City cannot predict the impact of the Revenue Neutral Tax Act on the ratings on the Securities, or the general rating of the City. A change in the rating on the Securities or a change in the general rating of the City may adversely impact the market price of the Securities in the secondary market. Kansas law prohibits governmental units from creating indebtedness unless there are funds on hand in the proper accounts and unencumbered by previous action with which to pay such indebtedness. An exception to this cash-basis operation is made where provision has been made for payment of obligations by bonds or other specific debt obligations authorized by law. The financial records of the City are audited annually by a firm of independent certified public accountants in accordance with generally accepted auditing standards. In recent years, the annual audit has been performed by Gordon Certified Public Accountants, Lawrence, Kansas. Copies of the audit reports for the past five (5) years are on file in the Clerk's office and are available for review. The audit for the Fiscal Year ended December 31, 2020 is attached hereto as APPENDIX C. There can be no guarantee that the information included in such unaudited financial statements will not materially change when subject to audit. The City has historically prepared a Comprehensive Annual Financial Report, which includes audited financial statements and other pertinent credit information. Appropriate periodic credit information necessary for maintaining the ratings on the Bonds will be provided by the City to the rating agencies rating the Bonds. The Governmental Accounting Standards Board (GASB) issued Statement No. 34, Basic Financial Statements-and Management's Discussion and Analysis-for State and Local Governments in June 1999 ("Statement 34"), which established new requirements for the annual financial reports of state and local governments. Among the major changes embodied in Statement 34, governments will now be required to: (a) report on the overall state of the government's financial health, not just its overall "funds" in a newly required Management's Discussion and Analysis (MD&A), (b) provide the most complete information available about the cost of delivering services to their citizens in the annual report which will now also include financial statements prepared using full accrual accounting for all of the government's activities, (c) include information about the government's public infrastructure assets - such as bridges, roads and storm sewers, and (d) prepare an introductory narrative section analyzing the government's financial performance. The City has implemented Statement No. 34 in its financial statements. A-14 The financial information contained in the Appendices to this Official Statement are an integral part of this document and are intended to be read in conjunction herewith. Financial Statement Summary The following is a summary of the combined revenues, expenditures, and fund balances for the City's General Fund for the most recent years as shown in the City's Comprehensive Annual Financial Reports. This summary has not been prepared or reviewed by the City's auditor. Audited Audited Audited Audited Revenues: 2017 2018 2019 2020 Property Taxes $10,115,784 $9,743,497 $10,801,226 $11,497,684 Sales Tax 12,906,032 32,900 13,418,742 13,697,179 Other Taxes 5,215,264 5,444,880 5,086,492 4,925,381 Intergovernmental 1,133,310 1,144,717 1,351,967 2,453,021 Charges for Services 6,153,450 6,366,094 5,816,485 4,942,217 Investment Revenue 3,336 45,477 613,249 256,515 Miscellaneous 1,709,491 452,916 609,676 981,845 Total Revenues $37,236,667 $36,490,207 $37,778,837 $38,753,842 Expenditures: General Government $5,423,241 $5,648,579 $4,581,505 $5,505,967 Public Safety 21,628,730 22,952,925 23,692,445 22,435,061 Public Works 5,328,315 5,350,056 5,473,414 5,101,204 Public Health and Sanitation 749,656 793,780 816,636 682,439 Culture and Recreation 4,424,221 4,494,713 4,379,441 3,037,594 Planning and Development 752,825 766,471 836,690 673,564 Capital Outlay 896,026 860.115 985,861 608,460 Total Expenditures $39,203,014 $40,866,639 $40,765,992 $38,044,289 Revenues Over (Under) $(1,966,347) $(4,376,432) $(2,987,155) $709,553 Other Sources (Uses) 3,816.500 4,236,500 5,551,752 4 929 300 Net Change in Fund Balance 1,850,153 $(139,932) 2,564,597 $5,638,853 Fund Balance January 1 $5,032,356 $6,882,509 $6,742,577 $9,503,410 Restatement of Prior Year Balance 0 0 0 0 Fund Balance December 31 $6,882,509 $6,742,577 $9,307,174 $15,142,263 Assessed Valuation According to the Saline County Clerk's Office, the following table gives the November 1 assessed valuation of the City, unless otherwise noted, in the years indicated. State Total Real Personal Assessed Motor Assessed Year Estate ProQert~(2} Utilities Vehicle Valuation 2021(1) $427,732,694 $11,229,345 $23,975,182 $56,545,812 $519,483,033 2020 423,573,121 9,353,057 23,436,340 54,589,132 510,951,650 2019 421,108,311 11,245,813 22,113,195 54,687,311 509,154,630 2018 403,835,383 10,130,718 20,485,144 53,336,677 487,787,922 2017 399,918,216 10,900,308 19,671,685 50,970,796 481,461,005 2016 389,872,825 11,653,719 19,323,055 51,833,505 472,683,104 2015 381,087,426 12,607,815 18,984,453 50,350,566 463,030,260 A-15 (1) Preliminary figures provided by the Saline County Clerk's office and used for budgeting purposes. (2) Personal property valuations began to decline in 2006 as a result of legislative action that started the process of removing significant portions of industrial machinery and equipment from the property tax rolls. Estimated Actual Valuation Based on assessment percentages provided by Kansas Statutes, real estate equalization ratios provided by the Kansas Department of Revenue (see FINANCIAL INFORMATION CONCERNING THE CITY -"Property Assessment Rates"), and estimated actual valuation figures provided by the Saline County Appraiser's Office, the following table provides November 1 estimated actual valuations for the City in the years indicated. Year 2021 2020 2019 2018 2017 2016 2015 Special Assessments Residential Real Estate Equalization Ratio N/A 10.79% 11.44 11.17 11.04 11.36 11.28 Estimated Actual Value $3,392,138,959 3,325,193,918 3,292,557,745 3,150,409,123 3,097,885,103 3,046,949,034 2,968,008,193 The City has pursued a policy of utilizing special benefit districts to assign the cost of certain internal improvement projects to the property that directly benefits from the construction. Kansas statutes allow for the creation of special benefit districts to pay for the cost of a variety of improvements including street construction, storm water drains, sanitary sewer system improvements, street lighting, water system improvements, recreational facilities, flood control projects, bridges, and parking facilities. The City has typically utilized special benefit districts to pay for the costs associated with constructing streets, sidewalks, curbs, gutters, and lighting in new residential developments within the City. When a developer requests the use of Special Assessments to finance public improvements, the City requires that they pay 20% of the estimated cost of the project in cash, or file a letter of credit equivalent to 35% of the estimated cost of the project. The letter of credit is released when Certificates of Occupancy have been issued for 35% of the lots in the development. Special benefit districts have also been created to pay for the cost of improvements to streets and sidewalks in the City's downtown area. The creation of special benefit districts, the determination of property benefited, and the method of allocating the cost of the improvement is at the discretion of the City. Property owners have the ability to suggest improvements through a petition process and to comment on the final amount of their assessment. The City may or may not be included as part of the special benefit district. All property owners have the option to pay their portion of the improvement cost with a one-time payment during a 30-day assessment prepayment period or pay in annual installments with interest over a certain number of years. Upon completion of the special benefit district improvement projects and a 30-day prepayment period, the City issues general obligation bonds to provide for permanent project financing. The payment of the principal of and interest on such bonds is paid from the special assessments levied annually on the benefited property. Special assessments are paid at the same time and in the same manner as ad valorem property taxes. If at any time the special assessments received from the property owners are insufficient to provide for the payment of the principal of and interest on the bonds, the City is obligated to provide for the balance of such payments through its ability to levy unlimited ad valorem property taxes. A-16 Tax Collections Tax statements are mailed November 1 each year and may be paid in full or one-half on or before December 20 with the remaining one-half due on or before May 10 of the following year. Taxes that are unpaid on the due dates are penalized at a statutorily prescribed rate until paid or until the property is sold for taxes. Real estate bearing unpaid taxes is advertised for sale in July of each year and is sold by the County for taxes and all legal charges on the first Tuesday in September. Properties that are sold and not redeemed within two years after the tax sale are subject to foreclosure sale, except homestead properties which are subject to foreclosure sale after three years. Personal property taxes are assessed, due and may be paid in the same manner as real estate taxes. Motor vehicle property taxes are based on valuations provided by the Kansas Department of Revenue and the county average tax rate for the county in which the vehicle is registered. Motor vehicle taxes are payable to the county treasurer at the time of the vehicle's annual registration. Vehicle registration dates are assigned by the State in a manner such as to equal registration over a twelve-month period. Motor vehicle taxes are distributed by the county to the state, city and other taxing jurisdictions based on their proportionate tax levies. Delinquent personal and motor vehicle taxes are penalized at the same rate as delinquent real property taxes. The following is a summary of tax collections for the years shown. Current Current and Delinquent Levy Tax Taxes Tax Collections Tax Collections Year Rate Levied Amount ~ Amount ~ 2021* 30.452 $15,407,789 $8,856,516 57.5% $8,856,516 57.5% 2020 30.650 15,226,084 15,028,646 98.7 15,045,546 98.8 2019 29.720 14,949,484 14,538,092 97.2 14,732,831 98.6 2018 28.394 13,780,643 13,427,810 97.4 13,590,888 98.6 2017 26.129 12,728,983 12,381,334 97.3 12,602,044 99.0 2016 27.603 11,564,876 11,320,197 97.9 11,524,101 99.6 2015 27.311 11,209,245 10,984,630 98.0 11,169,600 99.6 *Represents collections through January 2022 Tax Levies Nov Nov Nov Nov Nov 2017 2018 2019 2020 2021 ~ ~ ~ ~ ~ City of Salina 26.129 28.394 29.720 30.650 30.452 Salina Library 5.989 6.014 5.913 5.880 6.028 State Education & Other 1.500 1.500 1.500 1.500 1.500 Unified School District No. 305 56.501 57.522 55.508 55.454 54.903 Airport Authority 4.225 4.998 4.447 5.037 4.838 Central Kansas Extension District 1.475 1.476 1.198 1.206 1.196 Saline County 37.321 38.437 41.097 40.606 39.782 Total 133.140 138.341 139.383 140.333 138.699 A-17 Largest Taxpayers According to the Saline County Clerk's Office, the following table lists the largest taxpayers in the City, their November 2021 assessed valuations, and the percentage each taxpayer comprised of the total assessed valuation of the City. Company Evergy, Inc. SFC Global Supply Chain Inc Kansas Gas Service Walmart/Sam's Real Estate Business RAF Salina LLC Lighthouse Properties Ill Inc. S&B Motels Individual Salina Regional Health Properties Inc. Menard Inc. Total Building Permits Issued Type of Business Utility Manufacturing Utility Retail Shopping Center Retail Shopping Center Hotel Motel Apartments Hospital Retail Shopping Center %of Assessed Total Valuation Valuation $15,630,615 3.01% 6,540,230 1.26 4,844,333 0.93 4,665,958 0.90 4,000,001 0.77 3,880,224 0.75 2,712,177 0.52 2,339,471 0.45 2,274,633 0.44 2,255,335 0.43 $49,142,977 9.46% Building permits issued by the City currently maintain steady levels. This table reflects both private developments as well as the expansion to the educational facilities in the community. The five-year history of the total value of permits issued is: Year Value 2021 $46,129,644 2020 27,706,623 2019 20,544,765 2018 71,862,718 2017 59,975,197 2016 97,910,328 Sales Tax Sales tax collections are the responsibility of the Kansas Department of Revenue. The Department of Revenue distributes the local option countywide and citywide sales taxes on a monthly basis. Except as set forth below, Countywide sales taxes are distributed between the levying county and the cities located within the county based on population and relative tax levies. Citywide local option sales taxes are distributed solely to the levying city. Statewide sales taxes are retained entirely by the state. In 1982 the voters of Saline County approved a 1% countywide local option sales tax. In 1992 voters of the City approved a local option .50% citywide sales tax for purposes of helping fund general operations expenditures of the City. Both of these taxes were approved in perpetuity. In May of 2016, voters approved a .75% citywide retailers sales tax that will be in existence for 20 years and will be used for capital improvements and economic development (the "2016 Sales Tax"). The 2016 sales tax replaced an existing sales tax of .40%. In November of 2020, the voters of Saline County approved an additional 0.5% countywide local option sales tax, the revenues derived from which are dedicated to paying the costs of a new Criminal Justice Complex, such A-18 sales tax shall terminate when all costs associated with the Criminal Justice Complex project have been paid, including the retirement of any bonds issued therefor (the "2020 Sales Tax"). No portion of the revenues derived from the 2020 Sales Tax will be distributed to the City. The total sales tax for goods and services in the City is 9.2S%, which consists of 6.5% imposed by the State, 1.5% countywide local option sales tax, and 1.25% citywide local option sales tax. The following table lists the local- option sales tax receipts of the City of Salina in the years indicated. 11) As of January 2022 Year 2022(1) 2021 2020 2019 2018 2017 2016 2015 Citywide Local Option Sales & Use Tax Receipts $1,395,788 16,971,338 15,160,656 14,922,405 14,632,584 14,404,702 10,458,630 10,372,573 City's Portion of 1% Countywide Local Option Sales & Use Tax Receipts $728,807 8,798,402 7,756,909 7,608,604 7,415,804 7,368,869 7,312,618 7,376,708 12) Collections prior to October 1, 2016 represent taxes attributable to a .40% sales tax that was replaced with the . 75% 2016 sales tax. Prior to October 1, 2016 the citywide aggregate sales and use tax rate was .90%. The aggregate rate was increased to 1.25% as a result of the approval of the 2016 sales tax discussed above. Source: Kansas Department of Revenue Appraisal and Assessment Procedures The determination of appraised and assessed valuation and the collection of property taxes for all political subdivisions in the State of Kansas are the responsibility of the various counties. The Saline County appraiser annually determines the appraised valuation of property located in the City. The appraiser's determination is based on a number of criteria established by Kansas's statute. All property, with the exception of agricultural land, is appraised based on estimated fair market value. Agricultural property is appraised based on productivity value. Kansas statutes require that each parcel of real property be reviewed and inspected by the county appraiser once every four years for taxation purposes. Once appraised valuations have been determined, they are multiplied by the applicable statutory assessment rates to arrive at the assessed valuations. The total assessed valuation is then used to establish property tax rates. Property Valuation Challenges. Taxpayers may challenge the appraised value of their property by paying property taxes under protest. Such challenges are subject to administrative and judicial review. Taxes paid under protest are distributed to taxing jurisdictions in the same manner as all other property tax collections. If a taxpayer's challenge to the appraiser's valuation is successful, the county is liable to refund the amount of property taxes attributable to the protested value that was previously paid under protest. The county will then withhold from future property tax distributions to other taxing jurisdictions an amount equal to the jurisdiction's pro rata share of such refund. Any such withholdings from future property tax distributions may have a material adverse effect on the City's financial situation. A-19 Property Assessment Rates In order to determine the assessed valuation of a parcel of property for taxation purposes, the county appraiser multiplies the appraised value of the parcel by the applicable assessment rate. Current property assessment rates were established in 1986, effective in 1989, and slightly modified in 1992. The most significant 1992 modifications involved lowering the assessment rate on commercial and industrial real property from 30% to 25% and on residential property from 12% to 11.5%. The following table shows the current assessment rates for the different classes of taxable tangible property within the State of Kansas. Real Property: Residential Commercial and Industrial- Real Property Agricultural Land (1) Agricultural Improvements Vacant Lots Not-for-Profit (2) All Other Personal Property: 13} Mobile Homes Mineral Leaseholds (large) Mineral Leaseholds (small) Commercial & Industrial Machinery & Equipment All Other Utilities: Railroads All Other Public Utilities Motor Vehicles: Property Exempt: 11.5% 25.0 30.0 25.0 12.0 12.0 30.0 11.5% 30.0 25.0 25.0 30.0 federally mandated rate 33.0% 20.0% Property used for the following purposes, or portions thereof, are exempt from taxation provided certain statutory requirements are met: religious, educational, literary, scientific, benevolent, alumni associations, veterans' organizations, or charitable purposes, including parsonages and community service organizations providing humanitarian services. (1) Agricultural land is valued based on the productivity value of the property and not estimated market valuation. (2) A bill passed by the Kansas Legislature in 1994 clarified this class of property to include all property owned and operated by not-for-profit organizations not subject to federal income taxation pursuant to paragraphs (2), (3), (4), (7), (8), or (10) of Subsection C of Section 501 of the federal internal revenue code. This bill specifically established that private, not-for-profit country clubs would be assessed at 12% for all land that does not accommodate buildings or improvements. (3) The 2006 Kansas Legislature exempted from all property or ad valorem property taxes levied under the laws of the State, all commercial, industrial, telecommunications, and railroad machinery and equipment acquired by qualified purchase or lease after June 30, 2006 or transported into the State after June 30, 2006 for the purpose of expanding an existing business or creation of a new business. A-20 Equalization Ratios Annually, the Property Valuation Division of the Kansas Department of Revenue conducts a study to compare the assessed valuation of real property to estimated market value based on property sale prices. The study derives an equalization ratio which, when divided into assessed valuation, provides a means to approximate actual market value. According to the 2020 Preliminary Kansas Appraisal/Sales Ratio Study, the equalization ratio for residential real property in Saline County was 10.79%, and commercial and industrial property was 26.68%. A-21 APPENDIXB Form of Continuing Disclosure Undertaking CONTINUING DISCLOSURE UNDERTAKING CITY OF SALINA, KANSAS Gilmore & Bell, P.C. 03/22/2022 GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS' SERIES 2022-A DATED APRIL 28, 2022 This CONTINUING DISCLOSURE UNDERTAKING dated as of April 28, 2022 (the "Continuing Disclosure Undertaking"), is executed and delivered by the City of Salina, Kansas (the "Issuer"). RECITALS 1. This Continuing Disclosure Undertaking is executed and delivered by the Issuer in connection with the issuance of the above-described bonds (the "Obligations") which are being issued simultaneously herewith as of April 28, 2022, pursuant to the Bond Resolution (the "Resolution") adopted by the governing body of the Issuer. 2. The Issuer is entering into this Continuing Disclosure Undertaking for the benefit of the Beneficial Owners of the Obligations and in order to assist the Participating Underwriter in complying with Rule 15c2-12 of the Securities and Exchange Commission under the Securities Exchange Act of 1934 (the "Rule"). The Issuer is the only "obligated person" with responsibility for continuing disclosure hereunder. The Issuer covenants and agrees as follows: Section 1. Definitions. In addition to the definitions set forth in the Resolution, which apply to any capitalized term used in this Continuing Disclosure Undertaking unless otherwise defined in this Section, the following capitalized terms shall have 'the following meanings: "Annual Report" means any Annual Report provided by the Issuer pursuant to, and as described in, Section 2 of this Continuing Disclosure Undertaking, which may include the Issuer's Comprehensive Financial Report, so long as the Comprehensive Financial Report contains the financial information and operating data described in Section 2(a)(l) and (2). "Beneficial Owner" means any registered owner of any Obligations and any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Obligations (including persons holding Obligations through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Obligations for federal income tax purposes. "Business Day" means a day other than (a) a Saturday, Sunday or legal holiday, (b) a day on which banks located in any city in which the principal office or designated payment office of the paying agent or the Dissemination Agent is located are required or authorized by law to remain closed, or ( c) a day on which the Securities Depository or the New York Stock Exchange is closed. 600596.20227\CDU "Comprehensive Financial Report" means the Issuer's Comprehensive Annual Financial Report, if any. "Dissemination Agent" means any entity designated in writing by the Issuer to serve as dissemination agent pursuant to this Continuing Disclosure Undertaking and which has filed with the Issuer a written acceptance of such designation. "EMMA" means the Electronic Municipal Market Access system for municipal securities disclosures established and maintained by the MSRB, which can be accessed at www.emma.msrb.org. "Financial Obligation" means a ( a) debt obligation; (b) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (c) guarantee of (a) or (b) in this definition; provided however, the term Financial Obligation shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule. "Fiscal Year" means the 12-month period beginning on January 1 and ending on December 31 or any other 12-month period selected by the Issuer as the Fiscal Year of the Issuer for financial reporting purposes. "Material Events" means any of the events listed in Section 3 of this Continuing Disclosure Undertaking. "MSRB" means the Municipal Securities Rulemaking Board, or any successor repository designated as such by the Securities and Exchange Commission in accordance with the Rule. "Participating Underwriter" means any of the original underwriter(s) of the Obligations required to comply with the Rule in connection with the offering of the Obligations. Section 2. Provision of Annual Reports. (a) The Issuer shall, not later than 180 days after the end of the Issuer's Fiscal Year, commencing with the Fiscal Year ending December 31, 2021, file with the MSRB, through EMMA, the following financial information and operating data (the "Annual Report"): (1) (2) 600596.20227\CDU The audited financial statements of the Issuer for the prior Fiscal Year, prepared on a modified accrual basis of accounting other than GAAP. A more detailed explanation of the accounting basis is contained in the Official Statement related to the Obligations. If audited financial statements are not available by the time the Annual Report is required to be provided pursuant to this Section, the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the final Official Statement relating to the Obligations, and the audited financial statements shall be provided in the same manner as the Annual Report promptly after they become available. Updates as of the end of the Fiscal Year of certain financial information and operating data contained in the final Official Statement related to the Obligations, as described in Exhibit A, in substantially the same format contained in the final 2 Official Statement with such adjustments to formatting or presentation determined to be reasonable by the Issuer. Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues with respect to which the Issuer is an "obligated person" (as defined by the Rule), which have been provided to the MSRB and are available through EMMA or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from the MSRB on EMMA. The Issuer shall clearly identify each such other document so included by reference. In each case, the Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross-reference other information as provided in this Section; provided that the audited financial statements of the Issuer may be submitted separately from the balance of the Annual Report and later than the date required above for the filing of the Annual Report if they are not available by that date. If the Issuer's Fiscal Year changes, it shall give notice of such change in the same manner as for a Material Event under Section 3, and the Annual Report deadline provided above shall automatically become 180 days after the end of the Issuer's new Fiscal Year. (b) [Reserved] ( c) The Annual Report shall be filed with the MSRB in such manner and format as is prescribed by the MSRB. Section 3. Reporting of Material Events. Not later than 10 Business Days after the occurrence of any of the following events, the Issuer shall give, or cause to be given to the MSRB, through EMMA, notice of the occurrence of any of the following events with respect to the Obligations ("Material Events"): (1) principal and interest payment delinquencies; (2) non-payment related defaults, if material; (3) unscheduled draws on debt service reserves reflecting financial difficulties; (4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations oftaxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Obligations, or other material events affecting the tax status of the Obligations; (7) modifications to rights of bondholders, if material; (8) bond calls, if material, and tender offers; (9) defeasances; (10) release, substitution or sale of property securing repayment of the Obligations, if material; (11) rating changes; (12) bankruptcy, insolvency, receivership or similar event of the obligated person; (13) the consummation of a merger, consolidation, or acquisition involving the obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; 600596.20227\CDU 3 (14) appointment of a successor or additional trustee or the change of name of the trustee, if material; ( 15) incurrence of a Financial Obligation of the obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the obligated person, any of which affect security holders, if material; and (16) default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation of the obligated person, any of which reflect financial difficulties. Except as provided in Section 2(b) hereof, if the Issuer has not submitted the Annual Report to the MSRB by the date required in Section 2(a), the Issuer shall send a notice to the MSRB of the failure of the Issuer to file on a timely basis the Annual Report, which notice shall be given by the Issuer in accordance with this Section 3. Section 4. Termination of Reporting Obligation. The Issuer's obligations under this Continuing Disclosure Undertaking shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Obligations. If the Issuer's obligations under this Continuing Disclosure Undertaking are assumed in full by some other entity, such person shall be responsible for compliance with this Continuing Disclosure Undertaking in the same manner as if it were the Issuer, and the Issuer shall have no further responsibility hereunder. If such termination or substitution occurs prior to the final maturity of the Obligations, the Issuer shall give notice of such termination or substitution in the same manner as for a Material Event under Section 3. Section 5. Dissemination Agents. The Issuer may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Continuing Disclosure Undertaking, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. Any Dissemination Agent may resign as dissemination agent hereunder at any time upon 30 days prior written notice to the Issuer. The Dissemination Agent shall not be responsible in any manner for the content of any notice or report (including without limitation the Annual Report) prepared by the Issuer pursuant to this Continuing Disclosure Undertaking. Section 6. Amendment; Waiver. Notwithstanding any other provision of this Continuing Disclosure Undertaking, the Issuer may amend this Continuing Disclosure Undertaking and any provision of this Continuing Disclosure Undertaking may be waived, provided that Bond Counsel or other counsel experienced in federal securities law matters provides the Issuer with its written opinion that the undertaking of the Issuer contained herein, as so amended or after giving effect to such waiver, is in compliance with the Rule and all current amendments thereto and interpretations thereof that are applicable to this Continuing Disclosure Undertaking. In the event of any amendment or waiver of a provision of this Continuing Disclosure Undertaking, the Issuer shall describe such amendment or waiver in the next Annual Report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type ( or, in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the Issuer. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (1) notice of such change shall be given in the same manner as for a Material Event under Section 3, and (2) the Annual Report for the year in which the change is made should present a comparison (in narrative form and also, if feasible, in quantitative form) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. 600596.20227\CDU 4 Section 7. Additional Information. Nothing in this Continuing Disclosure Undertaking shall be deemed to prevent the Issuer from disseminating any other information, using the means of dissemination set forth in this Continuing Disclosure Undertaking or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Material Event, in addition to that required by this Continuing Disclosure Undertaking. If the Issuer chooses to include any information in any Annual Report or notice of occurrence of a Material Event, in addition to that specifically required by this Continuing Disclosure Undertaking, the Issuer shall have no obligation under this Continuing Disclosure Undertaking to update such information or include it in any future Annual Report or notice of occurrence of a Material Event. Section 8. Default. If the Issuer fails to comply with any provision of this Continuing Disclosure Undertaking, any Participating Underwriter or any Beneficial Owner of the Obligations may take such actions as may be necessary and appropriate, including seeking mandamus or specific performance by court order, to cause the Issuer to comply with its obligations under this Continuing Disclosure Undertaking. A default under this Continuing Disclosure Undertaking shall not be deemed an event of default under the Resolution or the Obligations, and the sole remedy under this Continuing Disclosure Undertaking in the event of any failure of the Issuer to comply with this Continuing Disclosure Undertaking shall be an action to compel performance. Section 9. Beneficiaries. This Continuing Disclosure Undertaking shall inure solely to the benefit of the Issuer, the Participating Underwriter, and the Beneficial Owners from time to time of the Obligations, and shall create no rights in any other person or entity. Section 10. SeverabiJity. If any provision in this Continuing Disclosure Undertaking, the Resolution or the Obligations shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. Section 11. Electronic Transactions. The arrangement described herein may be conducted and related documents may be sent, received, or stored by electronic means. Copies, telecopies, facsimiles, electronic files and other reproductions of original documents shall be deemed to be authentic and valid counterparts of such original documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. Section 12. Governing Law. This Continuing Disclosure Undertaking shall be governed by and construed in accordance with the laws of the State of Kansas. [Remainder of Page Intentionally Left Blank.] 600596.20227\CDU 5 IN WITNESS WHEREOF, the Issuer has caused this Continuing Disclosure Undertaking to be executed as of the day and year first above written. CITY OF SALINA, KANSAS (SEAL) Mayor City Clerk 600596.20227\CDU S-1 EXHIBIT A TO CONTINUING DISCLOSURE UNDERTAKING FINANCIAL INFORMATION AND OPERATING DATA TO BE INCLUDED IN ANNUAL REPORT The financial information and operating data contained in the following sections and tables contained in Appendix A of the final Official Statement (with such modifications to the formatting and general presentation thereof as deemed appropriate by the Issuer) relating to the Obligations: • Financial Overview of the City • FINANCIAL INFORMATION CONCERNING THE CITY -Assessed Valuation • FINANCIAL INFORMATION CONCERNING THE CITY -Estimated Actual Valuation • FINANCIAL INFORMATION CONCERNING THE CITY -Tax Collections • FINANCIAL INFORMATION CONCERNING THE CITY -Tax Levies • FINANCIAL INFORMATION CONCERNING THE CITY -Largest Taxpayers 600596.20227\CDU APPENDIX C December 31, 2020 Comprehensive Annual Financial Report The following is the Comprehensive Annual Financial Report for the City of Salina, Kansas for the fiscal year ended December 31, 2020, including financial statements as audited by the firm of Gordon Certified Public Accountants, Lawrence, Kansas. 300 West Ash Street P.O. Box 736 Salina, KS 67402-0736 Cityof Salina COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended December 31, 2020 Prepared by Department of Finance and Administration of the City of Salina, Kansas COMPREHENSIVE ANNUAL FINANCIAL REPORT OF CITY OF SALINA, KANSAS 300 West Ash Street P.O. Box736 Salina, Kansas 67402-0736 For the Fiscal Year Ended December 31, 2020 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, 2020 Letter of Transmittal Organizational Chart List of Principal Officials TABLE OF CONTENTS INTRODUCTORY SECTION FINANCIAL SECTION Independent Auditor's Report Management's Discussion and Analysis Basic Financial Statements: Government-wide Financial Statements Statement of Net Position Statement of Activities Fund Financial Statements Balance Sheet -Governmental Funds Reconciliation of the Total Governmental Fund Balance to Net Position of Governmental Activities Statement of Revenues, Expenditures, and Changes in Fund Balance -Governmental Funds Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance with the Government-Wide Statement of Activities Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual (Non-GAAP Basis) General Fund Tourism and Convention Fund Special Gas Fund Sales Tax Capital Fund Statement of Net Position -Proprietary Funds Statement of Revenues, Expenses, and Changes in Net Position -Proprietary Funds Statement of Cash Flows -Proprietary Funds Statement of Fiduciary Net Position -Fiduciary Funds Statement of Changes in Fiduciary Net Position -Fiduciary Funds i -iv V vi 1 -3 4-15 16 17 18 19 20 21 22 23 24 25 26 27 28-29 30 31 CITY OF SALINA, KANSAS Comprehensive Annual Financial Report For the year ended December 31, 2020 TABLE OF CONTENTS -CONTINUED FINANCIAL SECTION -CONTINUED Notes to the Basic Financial Statements Required Supplementary Information Other Postemployment Benefits Schedule of Changes in the City's Total OPEB Liability and Related Ratios Other Postemployment Benefits -KPERS Schedule of Changes in the City's Total OPEB Liability and Related Ratios KPERS Pension Plan Schedule of City's Proportionate Share of the Net Pension Liability Schedule of City Contributions Combining Statements and Individual Fund Schedules Combining Statements -Nonmajor Funds Fund Descriptions Combining Balance Sheet -Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances -Nonmajor Governmental Funds Combining Balance Sheet -Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances -Nonmajor Special Revenue Funds Combining Balance Sheet -Nonmajor Permanent Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances -Nonmajor Permanent Funds Individual Fund Schedules of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual (Non-GAAP Basis): Bicentennial Center Fund Business Improvement District Fund Neighborhood Park Fund Special Parks and Recreation Fund Special Alcohol Fund Sales Tax Economic Development Fund Arts & Humanities Fund Debt Service Fund Solid Waste Disposal Fund Water and Sewer Fund Sanitation Fund Golf Course Fund Workers' Compensation Reserve Fund Health Insurance Fund Central Garage Fund 32-70 71 72 73 73 74-75 76 77 78-79 80-81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 Internal Service Fund Descriptions CITY OF SALINA, KANSAS Comprehensive Annual Financial Report For the year ended December 31, 2020 TABLE OF CONTENTS -CONTINUED FINANCIAL SECTION -CONTINUED Combining Statement of Net Position -Internal Service Funds Combining Statement of Revenues, Expenses, and Changes in Net Position -Internal Service Funds Combining Statement of Cash Flows -Internal Service Funds STATISTICAL SECTION Net Position by Component -Last Ten Fiscal Years Changes in Net Position -Last Ten Fiscal Years Fund Balances, Governmental Fund -Last Ten Fiscal Years Changes in Fund Balances, Governmental Funds -Last Ten Fiscal Years Tax Revenues by Source, Governmental Funds -Last Ten Fiscal Years Assessed and Estimated Actual Value of Taxable Property-Last Ten Fiscal Years Direct and Overlapping Property Tax Rates-Last Ten Fiscal Years Principal Property Taxpayers Property Tax Levies and Distributions Direct Sales Rate by Taxing Entity Water Sales by Class of Customer Ratio of Outstanding Debt by Type Ratio of Net General Bonded Debt Outstanding Direct and Overlapping Governmental Activities Debt Legal Debt Margin Pledged Revenue Coverage Demographic and Economic Statistics Principal Employers 99 100 101 102 -103 Schedule 1 104 2 105 3 106 4 107 5 108 6 109 7 110 8 111 9 112 10 113 11 114 12 115 13 116 14 117 15 118 16 119 17 120 18 121 CITY OF SALINA, KANSAS Comprehensive Annual Financial Report For the year ended December 31, 2020 TABLE OF CONTENTS -CONTINUED GOVERNMENTAL AUDIT SECTION Schedule of Expenditures of Federal Awards Notes to Schedule of Expenditures of Federal Awards Schedule of Findings and Questioned Costs Independent Auditor's Report on Internal Control over Financial Reporting And on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Independent Auditor's Report on Compliance for Each Major Federal Program and Internal Control Over Compliance Required by the Uniform Guidance 122 123 124 -125 126 -127 128 -129 INTRODUCTORY SECTION DEPARTMENT OF FINANCE AND ADMINISTRATION 300 West Ash, P.O. Box 736 Salina, Kansas 67402-0736 July 23, 2021 Cityof ~ Salina To the Citizens of the City of Salina, Kansas: TELEPHONE (785) 309-5735 FAX (785) 309-5738 TDD (785) 309-5747 Website: www.salina-ks.gov The Comprehensive Annual Financial Report of the City of Salina, Kansas (the "City") for the year ended December 31, 2020, is hereby submitted. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of all various funds and account groups of the City. 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 explanation of the City's accounting system and budgetary controls, and a brief discussion of the City's economic condition and outlook. The City's organizational chart is also included to assist the reader in understanding the organizational structure of the City. The financial section includes the Independent auditor's report, Management's discussion & analysis, Government wide financial statements, Fund financial statements, 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 Management's Discussion and Analysis (MD&A) which immediately follows the independent auditor's report. MD&A provides a narrative explanation and overview of significant features and trends reflected by data in the financial statements. Accounting Systems and Internal Controls A critical part of the control system is the City's comprehensive Budgetary and Financial Policies, which establish guidelines for budgetary and financial practices. The budgetary procedures are reviewed by the City Commission 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, 2020 in the general fund and the special revenue funds. Various internal compliance procedures are implemented to ensure proper 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 records and transactions of all administrative departments of the City by independent certified public accountants selected by the City Commission. This requirement has been complied with and the auditor's opinion has been included in this report. Profile of the Community 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 serve as Mayor. The City Manager is appointed by the Commission, and acts as its primary 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 City anticipates results of the 2020 decennial census during 3rd quarter 2021. The reporting entity includes the City of Salina as well as two discretely presented component units, both proprietary fund types. The Salina Airport Authority 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 which is the 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 core of the city of Salina. In addition, the City of Salina participates in a joint venture with Saline County, the City-County Building Authority for the ownership, operation and maintenance of the City-County Building. 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 programming; 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 Company, EIDorado National, and Schwan's Global Supply Chain. Manufacturing, retail trade, and service industries rank as the three primary employers in the City. No single industry is dominant. ' The City of Salina retains its position near the top of a list of first class cities with respect to "trade pull factor." According to the Kansas Department of Revenue's Annual City Trade Pull Factor report, Salina had a pull of factor of 1.48 in 2020. 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 retail trade beyond the expected activity attributable to just the residents of that community. It is apparent from this that Salina continues to serve as a regional economic hub in 2020. Two Salina area company's announced major expansions in the second half of 2020. Schwan's Company announced expansion of its pizza production facility, adding approximately 225 jobs to the Salina area. Kubota announced a new plant for the production of compact track loaders, adding approximately 120 jobs to the Salina area. Major Initiatives In April, 2016, voters elected to replace the .40 cent capital 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. ii In 2018, the City of Salina issued $22,570,000 in STAR bonds which funded several projects in the City's downtown corridor. In 2020 Homewood Suites opened for business and the majority of the City's Downtown Streetscape project was completed. Other major projects that were on going included gutter and paving on North 9th Street, South Well Field improvements, continued improvements to the water distribution system and preliminary design on the Smoky Hill River Renewal and construction of the Police Training Center project. The City continues to address fiduciary pressures generated by a recessionary economy and 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 2020. The City offered no merit increases in 2020. Capital Improvement Planning The City's Capital Improvement Plan (CIP) consists of two components. One component consists of "routine· capital-including vehicle and equipment replacement, technology replacement, building repair and improvement, routine pavement maintenance activity, utility system enhancements and similar items. The amount of funding 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. Increases in 2020 and 2021 are a result of the anticipated beginning of the construction of the Smoky Hill River Renewaf Project, Ninth Street Bridge Construction and Wastewater Treatment Plant respectively. Due to uncertain Sales Tax recovery post Covid-19, the River Renewal project has been delayed. Few major projects have been planned for 2022 and 2023 until financial resources for those years could be 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. Ensure the safety of cash and near cash resources (timely collection of Accounts Receivable, etc.). iii Acknowledgments The preparation of the Comprehensive Annual Financial Report was made possible by the dedicated Finance staff of the City of Salina and the professional advice and efforts of the GordonCPA auditing team. Finally, preparation of this report would not have been possible without the support of the City Commission. Sincerely, Michael D. Schrage City Manager iv ( City of Salina ) Municipal Court Risk Management Development Services Lauren Driscoll Building Services Neighborhood Services Planning & Zoning Community Relations Parks & Recreation Chris Cotten Parks Division Recreation Division Golf Course Facility Maintenance Animal Services Bicentennial Center Fire Kevin Royse Fire Administration Fire Suppression Fire Prevention EMS Public Works Jim Teutsch ngineering Public Services Streets Traffic Control Flood Control Sanitation Solid Waste Central Garage Computer Technology Rita Stevenson CITIZENS CITY COMMISSION Melissa Rose Hodges, Mayor Trent Davis Karl Ryan Mike Hoppock Rod Franz City Manager Michael Schrage Legal Services Clark Mize & Linville Chartered* Greg Bengtson Deputy City Manager Jacob Wood Continuous Process Improvement Scott Gardner Human Resources Natalie Fischer * Contract Position V Utilities Martha Tasker Water Plant Division Wastewater Plant Division Utility Division Water Distribution Wastewater Collection Arts & Humanities Brad Anderson [ Smoky Hill Museum Police Brad Nelson Administration Patrol Division Support Division Investigative Division Finance/ Administration Debbie Pack City Clerk Water Customer Accounting Finance City of Salina, Kansas List of Principal Officials City Commission Melissa Rose Hodges, Mayor Dr. Trent Davis, Vice-Mayor Karl Ryan, Commissioner Mike Hoppock, 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 Rita Stevenson, Director of Computer Technology Natalie Fischer, Director of Human Resources Greg Bengtson, City Attorney Brad Nelson, Chief of Police Kevin Royse, Fire Chief Jim Teutsch, Director of Public Works Martha Tasker, Director of Utilities Chris Cotten, Director of Parks & Recreation Brad Anderson, Director of Arts & Humanities Scott Gardner, Director of Continuous Process Improvement vi FINANCIAL SECTION GORDON AUDITING ACCOUNTING CONSULTING Mayor and City Commissioners City of Salina, Kansas Report on the Financial Statements 2500 W 31st St Ste G-1B Lawrence, KS 66047 INDEPENDENT AUDITOR'S REPORT (785) 371-4847 cpagordon.com 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, 2020, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements 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. Auditor's Responsibility 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, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of 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 3% 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 $46,156,436 as of December 31, 2020 and total revenues of 2,652,346 for the year then ended, and the Housing Authority of the City of Salina, which statements reflect total assets and deferred outflows of resources of $7,540,021 as of June 30, 2020 and total revenues of $2,957,322 for 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. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. 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. 1 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 City of Salina, Kansas, as of December 31, 2020, 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 Funds for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the City implemented GASB Statement No. 84, Fiduciary ActiviUes that reclassified ten of the City's funds that had been previously classified as agency funds. As a result of that implementation, certain fund balances as of January 1, 2020, were restated. Our opinion is not modified with respect to this matter. Prior Period Restatement As discussed in Note 3 to the financial statements, certain errors in amounts previously reported as of December 31, 2019, were discovered by management of the City during the current year. Accordingly, these amounts have been restated in the December 31, 2020, 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. 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 4 through 15, the other postemployment benefit schedules on page 71 and 72, the schedule of the City's proportionate share of the net pension liability on page 73, and the schedule of City contributions on page 73 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for 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 the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during 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 City's financial statements as a whole. The introductory section, combining and individual nonmajor fund financial 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 schedule of expenditures of federal awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards, and is also not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and 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. 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. 2 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated July 23, 2021, on our consideration of the City's internal control over financial reporting and our tests of its compliance with certain provisions, of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in compliance with Government Auditing Standards in considering the City's internal control over fin'ancial reporting and compliance. Certified Public Accountant Lawrence, Kansas July 23, 2021 3 CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2020 Management Discussion and Analysis This section of the report contains an overview and analysis of the City of Salina's financial statements for the fiscal year ended December 31, 2020. The information contained here, as well as the information contained in the letter of transmittal, are intended to provide the reader of the financial statements with a well-rounded picture of the City's financial condition. Financial Highlights • On an accrual basis, the City's government-wide net position increased $2.6 million from current operations with net position change of $5. 7 million and $(3.1) million in governmental activities and business-type activities, respectively. • At the close of 2020, the City's governmental funds reported combined ending fund balances of $31.3 million, an increase of $15.5 million from the prior year. The Capital Projects expenditures decreased $3.6 million from prior year. The General Fund balance, Sales Tax Capital Fund balance and Other Governmental Funds increased $5.8 million, $2.8 million and 2.3 million, respectively, over the prior year. • At the close of 2020, the City's enterprise funds reported a combined ending Net Position of $96.6 million, an increase of $3.0 million over prior year. Positive performance was shared by the Water and Sewer Fund, the Sanitation Fund, Solid Waste Disposal and the Golf Fund. • Revenues from governmental activities increased by $6.6 million from the prior year and revenues from business type activities decreased $1.3 million from the prior year. Other miscellaneous revenue increased $6.8 million due to fund transfers and bond proceeds. • Revenues from investments continue to be minimal due to low interest rates. 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 reader's understanding of the financial statements. Other 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 results of the City's operations using the accrual basis of 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. The Statement of Net Position reports all of the City's assets and liabilities. Net position, the difference between assets and deferred outflows of resources and liabilities, are an important measure of the City's overall financial health. Net position represents the total accumulated and unused resources available to the City for the purpose of providing services. Over time, the increases and decreases in net position can be monitored to determine if the City's financial position is improving or deteriorating. The Statement of Activities shows how net position has changed 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, 4 CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2020 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 City and 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 provides a 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 term debt 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 non-major governmental funds are aggregated into an "Other Governmental Funds" column. A combining statement 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 Waste Disposal, 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 three internal service funds. Two of these are for self-insurance activity: Workers Compensation Reserve, and Health Insurance. The remaining accounts for 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 is no net position. The City of Salina operates twelve agency 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 additional information necessary for gaining a complete understanding of the City's financial statements. 5 Other Information CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2020 In addition to the basic financial statements and the notes described above, this report also presents the general fund and major special revenue fund's budgetary statements as required supplementary information directly following the notes to the basic financial statements. The combining statements for the non-major funds are shown after the required supplementary information. Finally, the statistical section includes selected statistical data about the City's operations and economy. The City as a Whole This section will identify, discuss, and analyze significant differences and trends that will enhance the reader's understanding of the City's financial position. Tax Base and Economy The City of Salina relies on three major groups of revenues to support its operations. 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. Charges for services account for about 37% ($34.9 million) of the City's revenue stream. Charges for service 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 decreased slightly in 2020, largely due to the 2020 COVID pandemic as most services were paused temporarily. This was offset by lower expenses. Sales taxes are the next largest component of the revenue mix, providing 25% ($23.4 million) of the total revenues. The City receives a 1.25% City-wide sales tax, and also a portion of the County-wide 1.5% 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 is affected 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. As the portion of the overlapping levy attributable to the City of Salina changes so does the City's allocated portion of the County-wide sales tax. This change is recognized bi-annually and can affect the overall allocation of the City's portion of the County-wide sales tax. In 2020, this allocation decreased slightly which did not have a significant impact on the tax revenues. In 2008, Salina voters approved an increase of the special purpose .25% tax to a .40% tax. The extended tax is 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, 2017 for twenty years. Property taxes are the third major component of the revenue mix, accounting for 16% ($14.9 million) 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 taxes which are established by a countywide average tax rate and the assessed value of the vehicle. Real estate assessed value increased by 4.1 %. The total City mill levy increased by 8. 7%. The overlapping levy increased in 2019 by 0.8%. 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 $11 .2 million from its peak of $39.7 million in 2007. 6 CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2020 Motor vehicle value increased 2.5%. Motor vehicle taxes are distributed based on a formula using prior year's tax effort (similar to the Countywide Sales Tax Distribution). The following table summarizes the comparative property assessed values and tax levy rates: Co"P-arative Property values and Tax Levy Rates Fiscal (Budget) Year 2020 2019 Change Real Estate and Personal Property Assessed Valuation City MIi Levy($ per $1,000) $ 454,467,319 $ 434,451,245 $20,016,074 Operating (General Fund) Debt Service Total City Rate Total Overlapping Levy Percent Total Taxes Collected Ratio of Total Ta>ces (including delinquent collections) to ta>ces levied Motor Vehicle Valuation $ 22.285 6.109 28.394 138.341 97.2% 98.6% 54,687,311 $ 20.339 1.946 5.790 0.319 26.129 2.265 133.140 5.201 97.4% (0.002) 98.6% 53,336,677 $ 1,350,634 The unemployment rate in Salina increased slightly from 3.1% at the end of 2019 to 3.5% at the end of 2020, reflecting general economic conditions. This is still slightly below the statewide and significantly below the national unemployment rate. The total labor force decreased to 25,446 from 25,643 in 2019. In 2020, the top ten property taxpayers accounted for 10.00% of total assessed value. Statement of Net Position Net position may, over time, provide an indicator of a government's financial position. In the case of the City of Salina, assets and deferred outflows of resources exceeded liabilities by $234.4 million at December 31, 2020. This represents an increase in net assets of $2.6 million over 2019. A comparative Condensed Statement of Net Position at December 31, 2020 and 2019: 7 CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2020 Condensed Statement of Net Position As of December 31 (in $0001 Governmental Activities Business-Type Activities Total Primary Government )0 01 JOO! LULU L01J 2020 2019 2020 2019 2020 Total 2019 Total change Cash and investments 42,246 $ 31,406 $38,876 $ 34,957 $81,122 19% $66,363 15% $ 14,759 Other current assets 16,910 17,201 2,082 2,512 18,992 4% 19,713 4% (721) Noncurrent (capital) assets 215,438 222,258 119,118 101,079 334,556 77% 323,337 81% 11,219 Total assets 274,594 270,865 160,076 138,548 434,670 100% 409,413 100% 25,257 Total deferred outflows of 8,761 5,073 1,117 546 9,878 100% 5,619 100% 4,259 resources Total assets and deferred outflows of resources 283,355 275,938 161,192 139,094 444,547 415,033 29,514 Current liabilities 17,230 23,971 3,964 3,579 21,194 11% 27,550 11% (6,356) Noncurrent liabilities 106,651 98,696 60,379 41,765 167,030 89% 140,461 89% 26,569 Total liabilities 123,881 122,667 64,343 45,344 188,224 100% 168,011 100% 20,213 Total deferred inflows of resources 15,392 14,913 240 198 15,632 15,112 520 Net position: Net investment in capital assets 143,559 151,527 62,368 63,301 205,927 88% 214,828 91% (8,901) Restricted for permanent funds 543 528 543 0% 528 0% 15 Restricted for debt service 1,724 1,142 1,512 1,368 3,236 1% 2,510 1% 726 Unrestricted (1,744) (14,839) 26,503 28,883 24,759 11% 14,044 8% 10,715 Total net position 144,082 138,358 90,383 93,552 234,465 100% 231,910 100% 2,555 Percent of total net position 61% 60% 39% 40% 100% 100% Cash and investments as a percentage of current liabilities 245% 131% 981% 977% 383% 241% The largest segment of the City's net position reflects its investment in capital assets (land, buildings, streets and 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 future taxes or user charges. A small portion of net position is restricted for debt service and permanent funds. The remainder (unrestricted) of net position may be used to meet the City's obligations to citizens and creditors. 8 CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2020 In 2020, the amount of net investment in capital assets decreased by $8.9 million. Amount restricted for debt service increased by $726 thousand. Unrestricted increased by $10.7 million. Outside of these changes, 2020 resulted in a $2.6 million increase to the net position. Total liabilities increased in governmental activities and slightly decreased in business-type activities. In governmental activities, current liabilities increased and non-current liabilities decreased primarily due to an increase in temporary notes and a decrease in general obligation bonds. Statement of Activities A Condensed Statement of Activities is shown below. Program Revenues: Charges for Services Operating Grants and Contributions General Revenues: Property Taxes Sales Taxes Other Taxes Investment Revenue Other Miscellaneous Total Revenues: Expenses: General Government Public Safety Public Works Public Health and Sanitation Culture and Recreation Planning and Development Solid Waste Disposal Water and Sewer Sa nitation Golf Course Interest on Long Term Debt Total Expenses Increase in net assets before transfers Transfers and other extraordinary items Change in Net Position Net Position January 1 Prior Period Adjustment Net Position January 1 restated Net Position December 31 Condensed Statement of Activities For the Year Ended December 31 (in $000) Governmental Business-Type Activities Activities 2020 2019 2020 2019 8,400 9,730 26,513 27,423 4,714 4,540 14,887 13,774 23,448 22,742 6,117 6,975 286 670 4 8,328 1,168 447 846 66,180 59,599 26,964 28,269 10,395 10,866 24,672 25,358 10,511 10,528 1,323 1,156 5,034 6,879 2,004 2,523 2,056 2,871 13,386 14,294 2,526 2,266 805 888 2,350 2,169 56,289 59,479 18,773 20,319 9,891 121 8,191 7,950 5,133 4,782 (5,133) {4,782) 15,024 4,902 3,058 3,169 138,359 133,452 93,552 90,383 (9,303} 4 129,056 133,456 93,552 90,383 $144,081 $138,359 $96,610 $93,552 9 Total Prima!}'.Government 2020-2019 2020 ~ 2019 ~ Change 34,913 37% 37,153 42% (2,240} 4,714 5% 4,540 5% 174 14,887 16% 13,774 16% 1,113 23,448 25% 22,742 26% 706 6,117 7% 6,975 8% (858) 290 0% 670 1% (380) 8,775 9% 2,014 2% 6,761 93,144 100% 87,868 100% 5,276 10,395 14% 10,866 14% -471 24,672 33% 25,358 32% -686 10,511 14% 10,528 13% -17 1,323 2% 1,156 1% 167 5,034 7% 6,879 9% -1,845 2,004 3% 2,523 3% -519 2,056 3% 2,871 4% -815 13,386 18% 14,294 18% -908 2,526 3% 2,266 3% 260 805 1% 888 1% -83 2,350 3% 2,169 3% 181 75,062 100% 79,798 100% -4,736 18,082 9,414 8,668 (58) 58 18,082 9,356 8,726 231,911 203,428 28,483 (9,303) -9,303 222,608 203,428 19,180 $240,690 $212,784 $ 27,906 CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2020 Governmental Activities. Charges for services attributable to governmental activities totaled $8.4 million, as operating grants for those purposes were $4.7 million. Charges for services decreased and operating grants increased slightly from the prior year due to the 2020 COVID pandemic as most services were paused temporarily. The balance was funded by general revenues. Sales taxes accounted for $23.4 million of general revenues, with property taxes providing $14.9 million. The net position increased by $5.7 million 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, 2020 were $56.3 million compared to $59.5 million in 2020. Governmental .activities represent 75% of the City's total expenses. The largest element of governmental activity expense was public safety, accounting for 33% of the total expenses. Business Type Activities. Business-type activities are primarily supported by user charges. Total expenses for business-type activities for the year were $18.8 million, or 25% of the City's total expenses. The majority of this expense ($13.4 million) is attributable to water and sewer operations, with the other activities costing a combined total of $5.4 million. Net position increased by $3.1 million. This increase was primarily related to an overall decrease in business-type activity expenses due to the 2020 COVID pandemic. Fund Financial Analysis Governmental Funds Fund Balances: The table below shows the Governmental Fund balances for major funds as of December 31, 2020 and December 31, 2019. Governmental Fund Balances as of December 31, (In OOO's) Fund 2020 2019 General $ 15,142 $ 9,307 Tourism and Convention 327 451 Special Gas 2,866 2,191 Sales Tax Capital 5,209 2,406 Schilling Capital Improvement 1,494 1,949 Debt Service 1,724 1,142 Capital Projects (4,028) (7,652) SFH QalicB 1,561 1,310 Other Governmental Funds 6,989 4,671 $ 31,284 $ 15,775 Change $ 5,835 (124) 675 2,803 (455) 582 3,624 251 2,318 $ 15,509 Total governmental fund balances increased by $15.5 million. The reasons for these changes are varied, including lower expenses during the 2020 COVID pandemic. 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 decrease as the City uses funds previously distributed. The Capital Projects Fund decrease was largely the result of the use of funds to fund capital outlays on projects. The SFH QalicB fund was created to account for funds for the Salina Field House. 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, 2020 and 2019. 10 CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2020 Consolidated Statement of Revenues and Expenditures for Major Governmental Funds For the years ended December 31 Modified Accrual Basis (in 0OO's) Fund 2020 2019 Change Revenues (including Other Financing Sources) General $ 44,560 $ 44,228 $ 332 Tourism and Convention 1,192 1,889 (697) Special Gas 2,209 2,027 182 Sales Tax Capital 8,871 8,501 370 Schilling Capital Improvement 7 21 (14) Debt Service 7,740 6,241 1,499 Capital Projects 8,598 11,871 (3,273) SFH QalicB 494 499 (5) Other Governmental Funds 7,757 4,745 3,012 Total Revenues 81,428 80,022 1,406 Less Other Sources (18,515) (21,247) 2,732 Revenues, net of other sources $ 62,913 $ 58,775 $ 4,138 Expenditures (including Other Financing Uses) General $ 38,921 $ 41,664 $ (2,743) Tourism and Convention 1,316 1,896 (580) Special Gas 1,534 1,368 166 Sales Tax Capital 6,067 8,060 (1,993) Schilling Capital Improvement 462 208 254 Debt Service 7,155 6,950 205 Capital Projects 4,974 18,830 (13,856) SFH QalicB 244 407 (163) Other Governmental Funds 5,865 3,954 1,911 Total Expenditures 66,538 83,337 (16,799) Less Other Uses (4,271) (5,073) 802 Expenditures, net of other uses $ 62,267 $ 78,264 $ (15,997) Total revenues, including other sources, were up $4.1 million compared to 2019, with Other Governmental Funds showing the largest increase between the two years, which was $3.0 million. Total expenditures decreased $16.0 million over 2019. The majority of that decrease, $13.9 million was in the Capital Projects Fund as a result of decreased spending on projects due to the 2020 COVID pandemic. Proprietary Funds The City of Salina operates four enterprise funds as well as five internal service funds. A summarized comparative Statement of Net Position follows for each enterprise fund: 11 CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2020 Comparative Summary Statement of Net Position as of December 31 (in $0001s) Solid Waste Disposal Water and Sewer 2020 2019 Change 2020 2019 Change Current Assets $ 8,075 $ 7,073 $ 1,002 $ 30,396 $ 28,307 $ 2,089 Capital Assets 3,335 1,497 1,838 114,104 97,956 16,148 Deferred Outflows 137 67 70 706 371 335 Total Assets and deferred outflows $11,547 $ 8,637 $ 2,910 $145,206 $ 126,634 $ 18,572 Current Liabilities $ 448 $ 103 $ 345 $ 3,394 $ 3,273 $ 121 Noncurrent Liabilities 4,929 2,865 2,064 54,285 38,016 16,269 Deferred Inflows 33 28 5 151 126 25 Total Liabilities $ 5,410 $ 2,996 $ 2,414 $ 57,830 $ 41,415 $ 16,415 Net investment in capital assets $ 910 $ 1,107 $ (197) $ 61,154 $ 60,568 $ 586 Restricted 1,175 1,368 (193) Unrestricted 5,227 4,534 693 25,046 23,283 1,763 Total Net Position $ 6,137 $ 5,641 $ 496 $ 87,375 $ 85,219 $ 2,156 Current Assets as percentage of current liabilities 1802% 6867% 896% 865% Sanitation Golf Course 2020 2019 Change 2020 2019 Change Current Assets $ 2,395 $ 2,012 $ 383 $ 91 $ 77 $ 14 Ca pita I Assets 1003 1165 $ (162) 675 462 $ 213 Deferred Outflows 164 84 $ 80 110 25 $ 85 Total Assets and deferred outflows $ 3,562 $ 3,261 $ 301 $ 876 $ 564 $ 312 Current Liabilities $ 97 $ 137 $ (40) $ 25 $ 66 $ (41) Noncurrent Liabilities 833 668 $ 165 330 215 $ 115 Deferred Inflows $ 41 35 $ 6 $ 15 $ 10 $ 5 Total Liabilities $ 971 $ 840 $ 131 $ 370 $ 291 $ 79 Net investment in capital assets $ 1,003 $ 1,165 $ (162) $ 675 $ 462 $ 213 Restricted Unrestricted 1588 1256 $ 332 (169) $ (187) $ 18 Total Net Position $ 2,591 $ 2,421 $ 170 $ 506 $ 275 $ 231 Current Assets as percentage of current liabilities 2469% 1469% 364% 117% 12 CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2020 Revenues, Expenses, and Changes in Net Position All enterprise funds show healthy results, with all funds reflecting increases in net position. Comparative Summary of Revenue, Expenses and Changes in Net Position for the Year Ended December 31 (in 000's) Solid Waste Disposal Water and Sewer 2020 2019 Change 2020 2019 Change Operating Revenues $ 3,322 $ 3,499 $ (177) $19,504 $20,588 $ (1,084) Operating Expenses 2,011 2,849 (838) 12,460 13,013 (553) Operating Income 1,311 650 661 7,044 7,575 (531) Non-operating revenues (expenses) (45) (22) (23) (922) (1281) 359 Income (Loss) before Transfers 1,266 627 639 6,122 6294 (172) Transfers in (out) (2,729) (640) (2,089) (2,006) (3,650) 1,644 Change in Net Position {1,463) (13) (1,450) 4,116 2644 1,472 Net Position January 1 5,640 5,653 (13) 85,219 82,580 2,639 Restatement 1,960 1,960 (1,960) (5) (1,960) Net Position January 1, restated 7,600 5,653 1,947 83,259 82,575 684 Net Position December 31 $ 6,137 $ 5,640 $ 497 $87,375 $85,219 $ 2,156 Sanitation Golf Course 2020 2019 Change 2020 2019 Change Operating Revenues $ 3,194 $ 3,276 $ (82) $ 939 $ 907 $ 32 Operating Expenses 2,526 2,266 260 805 888 {83) Operating Income 668 1,010 (342) 134 19 115 Non-operating revenues (expenses) 0 Income (Loss} before Transfers 668 1010 (342) 134 19 115 Transfers in (out} (497} (492) (5) 100 Change in Net Position 171 519 (348) 234 19 215 Net Position January 1 2,421 1,897 524 272 253 19 Restatement 5 Net Position January 1, restated 2,421 1,902 519 272 253 19 Net Position December 31 $ 2,592 $ 2,421 $ 171 $ 506 $ 272 $ 234 13 Budgetary Highlights CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2020 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, 2020. 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. Budgets may 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, 2020 was $334,555,753 net of accumulated depreciation. The following table illustrates the Capital Asset balance by various classes of assets at December 31 , 2020 and 2019: Capital Assets Balances Net of Depreciation as of December 31 (in $()()O's) Governmental Activity Business-Type Activity 2020 2019 2020 2019 Equipment, Furniture and Fixtures $ 2,309 $ 2,352 $ 1,280 $ 1,536 Vehicles 2,676 2,854 1,079 1,288 Buildings and Improvements 29,218 30,556 8,103 8,519 Land 24,224 24,224 2,386 2,386 Leased land under capital leases 423 423 Infrastructure 130,010 116,264 78,294 79,823 Leasehold Improvements 357 357 Construction in Progress 26,221 35,302 27,976 7,527 Total $ 215,438 $ 212,332 $ 119,118 $ 101,079 Changes to capital assets may be summarized as follows: Additions Retirements Depreciation Net Additions Changes to Capital Assets, 2020 (in $OOO's) Governmental Activity $ 27,118 (18,281) (5,731) 3,106 14 Business-Type Activity $ 23,416 (1,558) (3,819) 18,039 Total 2020 $ 3,589 $ 3,755 37,321 26,610 423 208,304 357 54,197 $ 334,556 $ Total 50,534 (19,839) (9,550) $ 21,145 2019 3,888 4,142 39,075 26,610 196,087 42,829 312,631 CITY OF SALINA, KANSAS Management Discussion and Analysis Year Ended December 31, 2020 Additional information on the City's capital assets can be found in Note 4,D. of the notes to the basic financial statements. Debt Management The City's general policy for general obligation bonds is to 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 bonds for governmental activities at December 31, 2020 totaled $68,438,971 . In addition, there were temporary notes outstanding in the amount of $7,050,000, as well as a financing operating lease in the amount of $583,725. Business-type activities had $10,341,160 in revenue bonds outstanding, as well as $9,107,990 in 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 $6,044,214. The City engaged in the following debt transactions during 2020: • On April 29th, the City issued 2020-1, $7,050,000 of temporary notes. The proceeds were used to finance construction to Pheasant Ridge Addition 3, Police Training Facility, and Stone Lake 2. • On April 29th , the City issued 2020A, $5,450,610 in General Obligation Bonds to finance construction costs for Landfill Cell, the Police Parking Lot, Golf Irrigation and 9th Street Bridge Design, as well as to finance the Smoky Hill River Design. • On November 19th, the City issued 2020B, $9,043,333 in General Obligation Bonds to finance construction costs for the Radio Project, Quint, SCBA, as well as to finance the 2012A Refunding -Magnolia. Additional information on the City's debt can be found in Note 4, E. of the notes to the basic financial statements. Requests for Information This financial report is intended to give the reader a general overview of the City's finances. Questions about information in this report or requests for additional information should be directed to the Director of Finance, Room 206, 300 West Ash Street, Salina, Kansas, 67 401. 15 BASIC FINANCIAL STATEMENTS CITY OF SALINA, KANSAS STATEMENT OF NET POSITION December 31, 2020 Prima!}'. Government Total Total Governmental Business-type Activities Activities ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Current assets: Cash and investments Receivables (net of allowance for uncollectibles) Accounts Taxes Interest Inventory Restricted cash and investments Prepaid expenses Total current assets Noncurrent assets: Capital assets, nondepreciable Construction in progress Land Capital assets, depreciable Less: Accumulated depreciation Total noncurrent assets Total assets Deferred oulflows of resourcas: KPERS DPEB deferred oulflows of resources OPEB dererred outflows of resourcas Pension deferred outflows of resources Deferred charge on bond issuance Total deferred outflows of resources Total assets and deferred outflows of resources Liabilities: Current liabilities: Accounts payable Retainage payable Accrued liabillties Accrued interest payable Depasits payable Current portion of compensated absences Current portion of temparary notes payable Current portion of loans payable Current portion of revenue bonds payable Current portion of special assessment debt payable Current portion of general obligation bonds payable Total current liabilities Noncurrent liabilities: Accrued liabilities Compensated absences Security deposits returnable OPEB obligation KPERS OPEB obligation Net pension liability Loans payable Revenue bonds payable Special assessment debt payable General obligation bonds payable Landfill post-closure care liabilities Total noncurrent liabilities Total liabilities Deferred inflows of resources: Unavailable revenue -property taxes KPERS OPES deferred inflows of resources OPEB deferred inflows of resources Pension deferred inflows of resources Total deferred inflows of resources Total liabilities and deferred inflows of resources Net Position Net investment in capital assets Restricted for. Permanent funds: Expendable Debt service Unrestricted Total net posttion $ 42,246,017 $ 38,875,629 1,916,733 1,664,390 14,362,079 10,392 16 284,987 417,947 335,497 59,155,705 40,957,982 26,221,157 27,975,938 24,646,334 2,386,334 297,446,919 163, 770,396 132,876,276 75015049 215,438, 134 119,117,619 274,593,839 160,075,601 135,741 55,982 148,419 24,797 8,471,181 1,035,819 5 990 8 761 331 1116,598 $ 283,355,170 $161,192,199 $ 1,718,179 $ 562,153 1,687,819 211,528 788,446 61 ,875 447,048 285,259 1,224,971 273,001 7,050,000 375,071 750,000 4 699145 1,060,100 17,230,435 3,964,160 263,049 1,472,035 321,310 3,097,540 517,514 402,677 194,767 34,571,390 3,854,606 12,212,979 35,550,958 8,865,000 54,631,836 8,774,050 2,300,353 106,651,506 60,376,558 123,881,941 64 342,718 13,876,740 57,734 27,926 273,521 45,698 1183,831 165 880 15,391,826 239 504 $ 139,273,767 $ 64,582,222 $ 143,558,677 $ 63,742,440 542,755 1,724,117 1,175,378 11,744,146) 31 ,692,159 $ 144,081,403 s 96,609,977 The notes to the basic financial statements are an integral part of this statement. 16 Companent Units Total Salina Salina Primary Housing Airport Government Authori!l! Authonti $ 81,121,646 $ 2,047,865 $ 2,255,880 3,581,123 25,280 390,970 14,362,079 10,408 702,934 31,898 335,497 110,640 15700 100,113,687 2,215,683 2,662,550 54,197,095 136,666 205,592 27,032,668 1,557,554 9,874,567 461,217,315 8,934,888 82,625,316 207,891,325 5,362,214 50444301 334,555 753 5,266,894 42,261,174 434,869,440 7,482,577 44,923,724 191,723 4,727 173,216 9,507,000 57,444 214,164 5990 1,013,821 9,877929 57.444 1,232,712 $ 444,547,369 $ 7,540,021 $ 46,156,436 $ 2,280,332 $ 45,583 $ 125,641 1,899,347 788,446 52,903 146,869 508,923 211,244 285,259 93,237 1,497,972 3,068 51,799 7,050,000 375,071 39,942 750,000 2,455 5 759 245 3,730,000 21,194,595 194 791 4,307,750 263,049 65,926 1,793,345 27,617 83,989 3,615,054 13,924 597,444 7,657 38,425,996 319,900 715,670 47,763,937 420,058 8,865,000 63,405,886 19,351,436 2,300,353 167,030,064 421,100 20,585077 168,224,659 615,891 24.892827 13,876,740 53,442 85,660 319,219 7,961 1349711 25,447 58 465 15,631,330 78 889 66,426 I 203,B55,0a9 $ 694.780 $ 24,959,253 $ 207,301,117 $ 5,266,894 $ 18,717,283 542,755 100,183 2,899,495 29,946,013 1,476,164 2479900 $ 240,691,380 s 6,845,241 $ 21,197,163 Governmental activities: General government Public safety Publicwori<s Public health and sanitation Culture and recreation Planning and development Interest on long-term debt Total governmental activities Business-type activities: Solid Waste Disposal Water and Sewer Sanitation Golf Course Total business-type activities Total primary government Component units: Salina Housing Authority Salina Airport Authority Total component units CITY OF SALINA, KANSAS STATEMENT OF ACTIVITIES For the YeaK Ended December 31, 2020 Net [Expenses] Revenue and Chan~es in Net Position Program Revenues Primary Government Component Units Operating Capital Total Total Charges for Grants and Grants and Governmental Business-type ExE!!!nses Services Contributions Contributions Activities Activities $ 10,394,607 $ 3,338,860 $ 1,201,206 $ $ [5,854,541 l $ 24,671,916 4,325,391 1,477,850 [18,868,675] 10,510,841 294,108 1,334,047 [8,882,686) 1,322,698 49,388 221,982 [1,051 ,328] 5,033,513 279,296 294,037 [4,460,180] 2,004,435 113,262 185,227 [1,705,946] 2,349,539 (2,349,539] 56,287,549 8,400,305 4,714 349 [43,172,895] 2,055,825 3,289,539 1,233,714 13,386,267 19,448,780 6,062,513 2,526,129 3,193,904 667,775 804,973 581,232 [223,741) 18,773,194 26,513,455 7,740,261 $ 75,060,743 $34,913,760 $ 4,714,349 $ [43,172,895) 7,740,261 $ 2,889,339 $ 393,634 $ 2,319,183 $ 113,963 8,700,408 2,652,346 2,100,818 $ 11,589,747 $ 3,045,980 $ 2,319,183 $ 2,214,781 General Revenues: Property taxes levied for General purposes 10,308,086 Debt service 3,058,231 Motor vehide tax General purposes 1,520,297 Sales tax General purposes 13,697,179 Selective purposes 9,751,294 Other taxes General purposes 6,117,168 Investment revenues 285,623 4,144 Miscellaneous 8,328,452 446,477 Transfers, net 5,132,726 [5,132,726] Subtotal general revenues 58,199,056 [4,682,105] Change in net position 15,026,161 3,058,156 Net position -beginning 138,358,514 93,551,821 Prior period adjustment [9,303,272] Net position -beginning, restated 129,055,242 93,551,821 Net position • ending $144,081,403 $ 96,609,977 The notes to the basic financial statements are an integral part of this statement. 17 Total Saflna Salina Primary Housing Airport Government Authori!}: Authorit~ $ [5,854,541 l $ $ [18,868,675) [8,882,686) [1,051,328] [4,460,180] [1,705,946] [2,349,539] [43,172,895) 1,233,714 6,062,513 667,775 [223,741) 7,740,261 [35,432,634) [62,5591 [3,941,244] [62,559] [3,947,244] 10,308,086 2,639,481 3,058,231 1,520,297 13,697,179 9,751,294 6,117,168 289,767 22,125 2,161 8,774,929 108,417 53,516,951 130,542 2,641,642 18,084,317 67,983 [1,305,602] 231,910,335 6,777,258 22,502,785 [9,303,272] 222,607,063 6,777,258 22,502,785 $240,691,380 $6,845,241 $21,197,183 CITY OF SALINA, KANSAS BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2020 Tourism and Special Sales Tax General Convention Gas Capital ASSETS Cash and investments $ 13,353,397 $ 854 $ 2,580,212 $ 6,534,049 Restricted cash Receivables (net) Accounts 1,587,438 326,008 Taxes 10,934,927 305,807 Interest 10,392 Inventory 183,768 Due from other funds 31,989 Total assets $ 26,101 ,911 $ 326,862 $ 2,886,019 $ 6,534,049 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable $ 145,736 $ -$ 20,116 $ 24,791 Retainage payable 1,299,766 Temporary notes payable Due to other funds Total liabilities 145,736 20,116 1,324,557 Deferred inflows of resources Unavailable revenue -property taxes 10,737,173 Unavailable revenue -other 76,739 Total deferred inflows of resources 10,813,912 Fund balance: Nonspendable 183,768 Restricted 326,862 2,233,811 Committed 4,065,778 Assigned 244,434 632,092 1,143,714 Unassigned 14,714,061 Total fund balances 15,142,263 326,862 2,865,903 5,209,492 Total liabilities, deferred inflows of resources and fund balances $ 26,101 ,911 $ 326,862 $ 2,886,019 $ 6,534,049 $ $ $ $ Schilling Other Total Capital Debt Capital SFH Governmental Governmental Improvement Service Projects QalicB Funds Funds 1,493,977 $ 1,665,599 $ 4,656,684 $ 3,918 $ 7,239,668 $ 37,528,358 335,497 335,497 1,235,034 3,287 3,151,767 3,121,345 14,362,079 10,392 183,768 31,989 1,493,977 $ 4,786,944 $ 4,656,684 $ 1,574,449 $ 7,242,955 $ 55,603,850 -$ -$ 1,260,261 $ -$ 221,525 $ 1,672,429 374,230 13,823 1,687,819 7,050,000 7,050,000 31,989 31 ,989 8,684,491 13,823 253,514 10,442,237 3,062,827 13,800,000 76,739 3,062,827 13,876,739 183,768 1,724,117 695,513 4,980,303 1,493,977 1,560,626 6,104,669 13,225,050 189,259 2,209,499 [4,027,807] 10,686,254 1,493,977 1,724,117 [4,027,807] 1,560,626 6,989,441 31,284,874 1,493,977 $ 4,786,944 $ 4,656,684 $ 1,574,449 $ 7,242,955 $ 55,603,850 The notes to the basic financial statements are an integral part of this statement. 18 CITY OF SALINA, KANSAS RECONCILIATION OF THE TOTAL GOVERNMENTAL FUND BALANCE TO NET POSITION OF GOVERNMENTAL ACTIVITIES December 31, 2020 Total Governmental Fund Balances 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 costs Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds The cost of capital assets is Accumulated depreciation is 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. 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. Certain intrafund transactions have been eliminated between the City's primary funds and the QALICB blended component unit. 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. 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 absences Net OPES obligation Net pension liability Bonds payable Loans payable Accrued interest on the bonds 348,146,176 132,722,313 2,666,706 3,491 ,494 34,383,483 59,330,981 12,212,979 61,875 $ 31,284,874 5,990 215,423,863 8,705,364 [1,505,440] [1,235,034] 3,549,304 [112,147,518] Net Position of Governmental Activities $ 144,081,403 The notes to the basic financial statements are an integral part of this statement. 19 CITY OF SALINA, KANSAS STATEMENT OF REVENUES, EXPENDITURES ANO CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS For the Year Ended December 31, 2020 Tourism and Special Sales Tax General Convention ~ Capital REVENUES: Taxes Real estate taxes $ 10,139,044 $ -$ -$ Delinquent taxes 169,042 Motor vehicle taxes 1,189,598 General sales taxes 13,697,179 Selective sales taxes 8,624,465 Other taxes 4,925,381 1,191,787 Intergovernmental 2,453,021 1,328,977 Special assessments Licenses and permits Charges for services 4,942,217 Investment revenue 256,515 Donations Miscellaneous 981,845 720,243 2461159 Total revenues 38?531842 1,191 ,787 21049,220 8,870,624 EXPENDITURES: Current General government 5,505,967 Public safety 22,435,061 Public works 5,101,204 355,565 Public health and sanitation 682,439 Culture and recreation 3,037,594 Planning and development 673,564 726,743 Miscellaneous Capital outlay 608,460 1,178,730 3,262,657 Debt service Principal retirement Interest and other charges Total expenditures 38,044,289 726,743 1,5341295 3,262,657 Excess [deficiency) of revenue and other sources over [under] expenditures and other [uses] 709,553 465,044 514,925 5,607,967 OTHER FINANCING SOURCES [USES] Issuance of bonds Bond premium Transfers in 5,806,300 160,000 Transfers [out] [877,000] [589,252] [2,804,350) Total other financing sources [uses] 4,929,300 [589,252) 160,000 [2,804,350) Net change in fund balance 5,638,853 [124,208) 674,925 2,803,617 Fund balance -Beginning of year 9,307,174 451 ,070 2,190,978 2,405,875 Prior period adjustment 196,236 Fund balance -Beginning of year, restated 9,503,410 451,070 2,190,978 2,405,875 Fund balance -End of year $ 15,142,263 $ 326,862 $ 2,865,903 $ 5,209,492 Schilling Other Total Capital Debt Capital SFH Governmental Governmental Improvement Service Projects QalicB Funds Funds $ $ -$ 3,010,914 $ -$ -$ -$ 13,149,958 47,317 216,359 330,699 1,520,297 13,697,179 1,126,829 9,751 ,294 6,117,168 1,535,238 5,317,236 1,511,279 1,511,279 5,070 5,070 492,917 121,417 5,556,551 7,005 967 21,136 285,623 129,193 129,193 130,108 3,577,577 5,655,932 7 005 4,900,209 130,108 493,884 6,516.460 62,913,139 5,505,967 22,435,061 625,362 6,082,131 597,804 1,280,243 1,207,431 4,245,025 16,652 376,545 1,793,504 53,301 1,300,661 1,353,962 462,374 4,760,797 26,983 1,741,294 12,041,295 5,163,995 5,163,995 1,937,284 213,299 200,044 15496 2,366,123 462,374 7,154,580 4,974,096 243,679 5,864,593 62,267,306 [455,369] [2,254,371] [4,843,988] 250,205 651 ,867 645,833 1,206,882 7,513,405 8,720,287 468,404 468,404 1,629,188 486,426 1,241,413 9,323,327 [4,270,602) 2,836,070 8,468,235 1,241,413 14,241,416 [455,369] 581,699 3,624,247 250,205 1,893,280 14,887,249 1,949,346 1,142,418 [7,652,054] 1,310,421 4,670,517 15,775,745 425,644 621 ,880 1,949,346 1,142,418 [7,652,054] 1,310,421 5,096,161 16,397,625 11493,977 $ 1,724,117 $ (41027,807) $ 11560,626 $ 6,989,441 $ 31,2841874 The notes to the basic financial statements are an integral part of this statement. 20 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, 2020 Total Net Change In Fund Balances -Governmental Funds 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 Capital outlays Depreciation expense 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. 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 funds are reported with governmental activities. Certain intrafund transactions have been eliminated between the City's primary funds and the QALICB blended component unit. 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. Pension payments are reported as expenditures in the governmental funds and do not affect the statement of net activities. 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. Repayment of bond principal and bond issuance costs is an expenditure in the governmental funds, but it reduces long-term liabilities in the statement of net position and does not affect the statement of activities. Changes In Net Position of Governmental Activities [34,933] 9,188,324 [5,881 ,296] The notes to the basic financial statements are an integral part of this statement. 21 $ 14,887,249 3,272,095 16,584 983,576 [712,617] 168,922 [1,817,189] [8,982,222] 7,209,763 $ 15,026,161 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, 2020 Budgeted Amounts Actual Original Revenues Taxes Real estate taxes $10,139,044 $ 10,269,618 Delinquent taxes 169,042 160,000 Motor vehicle taxes 1,183,360 1,148,859 General sales tax 13,697,179 13,119,090 Other taxes 4,925,381 7,200,990 Intergovernmental 2,453,021 1,155,255 Charges for services 3,710,836 5,931,339 Investment revenue 254,767 140,000 Miscellaneous 981,842 513,496 Total revenues 37,514,472 39,638,647 Expenditures General government 4,336,448 5,627,624 Public safety 22,434,733 22,669,448 Public works 5,044,769 4,552,934 Public health and sanitation 682,439 Culture and recreation 3,050,289 7,911,847 Planning and development 553,972 3,099,280 Capital outlay 608,460 4,746,430 Total expenditures 36,711,110 48,607,563 Excess [deficiency] of revenues over [under] expenditures 803,362 [8,968,916} Other financing sources [uses] Transfers in 5,806,300 4,366,550 Transfers [out] [877,000] [905,500] Total other financing sources [uses] 4,929,300 3,461,050 Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses] 5,732,662 [5,507,866] Unreserved fund balance, January 1, restated 7,185,815 5,507,866 Unreserved fund balance, December 31 Reconciliation to GAAP Interest receivable Accounts receivable Taxes receivable Inventory Deferred revenue Current year encumbrances GAAP Fund Balance, December 31 12,918,477 $ 10,392 1,587,438 10,934,927 183,768 [10,737,173] 244,434 $ 15, 142,263 See independent auditor's report on the financial statements. 22 - Final $ 10,269,618 160,000 1,148,859 13,119,090 7,200,990 1,155,255 5,931,339 140,000 513 496 39,638,647 5,627,624 22,669,448 4,552,934 7,911,847 3,099,280 4,746,430 48,607,563 [8,968,916] 4,366,550 [905,500] 3,461,050 [5,507,866] 5,507,866 $ - Variance with Final Budget Positive [Negative] $ [130,574] 9,042 34,501 578,089 [2,275,609] 1,297,766 [2,220,503] 114,767 468 346 [2,124,175] 1,291,176 234,715 [491,835] [682,439] 4,861,558 2,545,308 4,137,970 11 ,896,453 9,772,278 1,439,750 28,500 1,468,250 11,240,528 1,677,949 $ 12,918,477 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, 2020 Budgeted Amounts Actual Original Final Variance with Final Budget Positive [Negative] Revenues Other taxes $ 1,315,996 $ 1,900,000 $ 1,900,000 $ [584,004} Total revenues Expenditures Planning and development Total expenditures Excess [deficiency] of revenues ov~r [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] Unreserved fund balance, January 1 1,315,996 726,743 726,743 589,253 [589,252} [589,252] 1 853 1,900,000 1,900,000 [584,004) 1,045,000 1,045,000 318,257 1,045,000 1,045,000 318,257 855,000 855,000 [265,747] [855,000] [855,000] 265,748 [855,000} [855,000) 265,748 853 853 Unreserved fund balance, December 31 Reconciliation to GAAP 854 $ 853 $ 853 $ 1 --------- Accounts receivable 326,008 GAAP Fund Balance, December 31 $ 326,862 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, 2020 Budgeted Amounts Actual Original Final Revenues Intergovernmental $ 1,351,092 $ 1,330,760 $ 1,330,760 Miscellaneous 720,243 Investment revenue 3,000 3,000 Total revenues 2,071,335 1,333,760 1,333,760 Expenditures Public works 355,565 486,950 486,950 Capital outlay 1,740,235 1,181,243 1,181,243 Total expenditures 2,095,800 1,668,193 1,668,193 Excess [deficiency] of revenues over [under] expenditures [24,465] [334,433] [334,433] Other financing sources [uses] Transfers in 160,000 160,000 160,000 Total other financing sources [uses] 160,000 160,000 160,000 Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses) 135,535 [174,433] [174,433] Unreserved fund balance, January 1 1,792,469 1,867,816 1,867,816 Unreserved fund balance, December 31 1,928,004 $ 1,693,383 $ 1,693,383 Reconciliation to GAAP Taxes receivable 305,807 Current year encumbrances 632,092 GAAP Fund Balance, December 31 $ 2,865,903 See independent auditor's report on the financial statements. 24 Variance with Final Budget Positive [Negative] $ 20,332 720,243 [3,000] 737,575 131,385 [558,992] [427,607] 309,968 309,968 [75,347] $ 234,621 Revenues Taxes 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, 2020 Budgeted Amounts Original Final Variance with Final Budget Positive [Negative) Selective sales taxes Miscellaneous $ 8,624,465 $ 8,332,539 $ 8,332,539 $ 246,159 291 ,926 246,159 Total revenues Expenditures Capital outlay Total expenditures Excess [deficiency) of revenues 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] Unreserved fund balance, January 1 8,870,624 3,666,919 3,666,919 5,203,705 [2,804,350] [2,804,350] 2,399,355 1,666,423 8,332,539 5,050,000 5,050,000 3,282,539 [3,169,350] [3,169,350] 113,189 1,882,941 8,332,539 5,050,000 5,050,000 3,282,539 [3,169,350] [3,169,350] 113,189 1,882,941 538,085 1,383,081 1,383,081 1,921,166 365,000 365,000 2,286,166 [216,518] Unreserved fund balance, December 31 Reconciliation to GAAP 4,065,778 $ 1,996,130 $ 1,996,130 $ 2,069,648 Current year encumbrances 1,143,714 GAAP Fund Balance, December 31 $ 5,209,492 See independent auditor's report on the financial statements. 25 CITY OF SALINA, KANSAS STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31, 2020 Business-Type ActiviUes: Ent!!!]!rise Funds Total Solid Waste Water and Enterprise Assets and deferred outflows of resources: Diseosal Sewer Sanitation Golf Course Funds Current assets: Cash and investments $ 7,876,671 $ 28,759,645 $2,175,043 $ 64,270 $ 38,875,629 Receivables (net of allowance for uncollectibles) Accounts 198,287 1,246,160 219,943 1,664,390 Interest 16 16 Inventory and prepaid supplies 390,729 27,218 417 947 Total current assets 8,074,974 30,396,534 2,394,986 91,488 40,957,982 Capital assets: Nondepreciable capital assets: Construction in progress 1,991,469 25,727,684 256,785 27,975,938 Land 682,000 1,689,334 15,000 2,386,334 Depreciable capnal assets: Capital assets 11,313,026 148,639,879 2,564,420 1,253,071 163,n0,396 Less: accumulated depreciation 10,651,410 61,953,107 1,560,935 849,597 75,015,049 Total capital assets 3,335,085 114,103,790 1,003,485 675,259 119,117,619 Total assets 11,410,059 144,500,324 3,398,471 766,747 160,075,601 Deferred outflows of resources: KPERS OPEB deferred outflows of resources 6,749 33,434 7,745 8,054 55,982 OPEB deferred outflows of resources 2,758 16,409 4,635 995 24,797 Pension deferred outfla.vs of resources 127,859 655 717 151,656 100,587 1,035,819 Total deferred outflows of resources 137,366 705,560 164,036 109,636 1,116,598 Total assets and deferred outflows of resources $ 11,547,425 $ 145,205,884 $3,562,507 $ 876,383 $161,192,199 Liabilities and deferred inflows of resources: Current liabilities Accounts payable $ 19,524 $ 509,657 $ 25,449 $ 7,523 $ 562,153 Retainage payable 211,528 211,528 Interest payable 38,747 408,301 447,048 Meter deposits payable 285,259 285,259 Current portion of compensated absences payable 19,825 164,516 71 ,543 17,117 273,001 Current portion of accrued claims payable Current portion of loans payable 375,071 375,071 Current porlion of general obligation bonds payable 370,000 690,100 1,060,100 Current porlion of revenue bonds payable 750,000 750,000 Total current liabilities 448,096 3,394,432 96,992 24,640 3,964,160 Noncurrent liabilities: Compensated absences payable 23,333 193,628 84,202 20,147 321,310 Accrued claims payable OPEB obligation 57,567 342,458 96,728 20,761 517,514 KPERS OPEB obligation 23,480 116,322 26,945 26,020 194,767 Net pension liability 469,022 2,498,445 625,434 261,705 3,854,606 Payable from restricted assets Loans payable 35,550,958 35,550,958 General obligation bonds payable 2,055,388 6,718,662 8,774,050 Revenue bonds payable 8,865,000 8,865,000 Landfill post-closure care liabilities 2,300,353 2,300,353 Total noncurrent liabilities 4,929,143 54,285,473 833,309 330,633 60,378,558 Total liabilities 5,377,239 57,679,905 930,301 355,273 64,342,718 Deferred inflows of resources KPERS OPEB deferred inflows of resources 3,366 16,678 3,864 4,018 27,926 OPEB deferred inflows of resources 5,084 30,240 8,541 1,833 45,698 Pension deferred inflows of resources 24,429 103,622 28,575 9,254 165,880 Total deferred inflows of resources 32,879 150,540 40,980 15,105 239,504 Total liabilities and deferred inflows of resources $ 5,410,118 $ 57,830,445 $ 971,281 $ 370,378 $ 64,582,222 Net position Net investment in capital assets $ 909,697 $ 61,153,999 $1,003,485 $ 675,259 $ 63,742,440 Restricled Restricted for bond retirement 1,175,378 1,175,378 Unrestricted 5,227,610 25,046,062 1,587 741 [169,254) 31,692,159 Total net position $ 6,137,307 $ B71375,439 $2,591,226 $ 506,005 $ 96,609,977 The notes to the basic financial statements are an integral part of this statement. 26 Internal Service Funds $4,717,659 101,219 4,818,878 168,234 153,963 14271 4,833,149 2,507 47,470 49977 $4,883,126 $ 45,750 13,919 788,446 848,115 16,382 263,049 8,723 187,907 476,061 1,324,176 1,251 8,395 9646 $1,333,822 $ 14,271 3,535,033 $3,549,304 CITY OF SALINA, KANSAS STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUNDS For the Year Ended December 31, 2020 Business-Type Activities: Enterejse Funds Solid Waste Water and Dise2sal Sewer Sanitation Golf Course Operating revenues Charges for services $ 3,289,539 $19,448,780 $3,193,904 $ 581,232 Miscellaneous 32,720 55774 49 357,934 Total operating revenues 3,322,259 19,504,554 3,193,953 939 166 Operating expenses General government Public works 1,858,197 8,916,947 2,364,751 Recreation 761,739 Depreciation 152,926 3,543,387 161 ,378 43,234 Total operating expenses 2,011 ,123 12,460,334 2,526,129 804,973 Operating income [loss] 1,311,136 7,044,220 667,824 134 193 Nonoperating revenues [expenses] Investment revenue 4,144 Interest expense [44,702] [1,005,565] Accretion of bond premium 89,557 Amortization of bond issuance costs [9,925) Total nonoperating revenues [expenses] [44,702] [921,789] Income [loss] before transfers 1,266,434 6,122.431 667,824 134193 Transfers from [to] other funds Transfers in 100,000 Transfers [out] [2,729,588) [2,005,788) [497,350] Total transfers [2,729,588) [2,005,788) [497,350) 100,000 Change in net position [1,463,154) 4116643 170,474 234,193 Net position, January 1 5,640,478 85,218,779 2,420,752 271 ,812 Prior period adjustment 1,959,983 [1,959,983) Net position, January 1, restated 7,600,461 83,258,796 2,420,752 271,812 Net position, December 31 $ 6,137,307 $87,375,439 $2,591,226 $ 506,005 The notes to the basic financial statements are an integral part of this statement. 27 Total Internal Enterprise Service Funds Funds $ 26,513,455 $ 8,253,233 446,477 42,179 26,959,932 8,295,412 7,391,474 13,139,895 761,739 3,900,925 362 17,802,559 7,391,836 9,157,373 903,576 4,144 [1,050,267] 89,557 [9,925) [966,491) 8,190,882 903,576 100,000 80,000 [5,232,726) [5,132,726) 80,000 3,058,156 983,576 93,551,821 2,565,728 93 551 ,821 2,565,728 $ 96,609,977 $ 3,549,304 Cl1Y OF SALINA, KANSAS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended December 31, 2020 Business-Type Activities: Ente!Erise Funds Solid Waste Water and Diseosal Sewer Sanitation Golf Course Cash flows from operating activities Cash received from customers and users $3,289,574 $19,836,614 $3,231,339 $ 581 ,232 Cash paid to suppliers of goods or services [894,526] [4,593,856] [1,412,277] [288,026] Cash paid to employees [688,626] [3,908,975] [901 ,478] [468,228] Other operating receipts 32,720 55,774 49 357,934 Net cash provided by [used in] operating activities 1,739,142 11,389,557 917,633 182,912 Cash flows from capital and related financing activities Purchase and construction of capital assets [31,486] [21 ,561,398] [256,785] Proceeds from bonds 2,070,388 4,370,151 Proceeds from loans 18,475,072 Principal payments -loans [5,088,730] Principal payments -general obligation bonds [35,000] [1,414,063] Principal payments -revenue bonds [781 ,015] Interest paid [11,217) [917,878) Net cash provided by [used in] capital and related financing activities 1,992,685 [6,917,861] [256,785] Cash flows from investing activities Interest received 4144 Cash flows from noncapital financing activities Transfers in 100,000 Transfers [ out] [2,729,588) [2,005,788) [497,350) Net cash provided by [used in] noncapital financing activities [2,729,588) [2,005,788) [497,350] 100,000 Net increase [decrease] in cash and cash equivalents 1,002,239 2,470,052 420,283 26,127 Cash and cash equivalents, January 1 6,874,432 26,289,593 1,754,760 38,143 Cash and cash equivalents, December 31 $7.876i671 $28?59,645 $2,175,043 $ 64,270 The notes to the basic financial statements are an integral part of this statement. 28 Total Internal Enterprise Service Funds Funds $26,938,759 $8,503,738 [7,188,685] [7,085,946] [5,967,307] [274,765] 446477 42179 14,229,244 1,185,206 [21,849,669] 6,440,539 18,475,072 [5,088,730] [1,449,063] [781,015] [929,095) [5,181,961] 4144 100,000 80,000 [5,232,726) [5,132,726) 80,000 3,918,701 1,265,206 34,956,928 3,452,453 $38,875,629 $4,717,659 CITY OF SALINA, KANSAS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS (Continued) For the Year Ended December 31, 2020 Business-Type Activities: Enterprise Funds Solid Waste Water and Total Internal Enterprise Disposal Sewer Sanitation Golf Course Funds Service Funds Reconciliation of operating [loss] income to net cash provided by [used in] operating activities Operating income [loss] $ 1,311,136 $ 7,044,220 $ 667,824 $ 134,193 Adjustments to reconcile operating income [loss] to net cash provided by [used in] operating activities Depreciation expense 152,926 3,543,387 161,378 43,234 [Increase] decrease in accounts receivable 35 332,022 37,435 [Increase] decrease in inventory 48,494 11,203 [Increase] decrease in deferred outflows [70,780] [344,505] [80,102] [85,115] Increase [decrease] in accounts payable [6,918] 121,544 [3,711] 3,044 Increase [decrease] in retainage payable 58,119 Increase [decrease] in accrued compensated absences [6,276] [17,252] 7,760 [46,560] Increase [decrease] in claims payable Increase [decrease] in net pension liability 85,168 421,937 97,737 101,638 Increase [decrease] in net KPERS OPEB obligation 8,288 9,979 1,625 17,892 Increase [decrease] in net OPEB obligation 8,891 91,333 21,418 [1,808] Increase [decrease] in meter deposits payable 55,812 Increase [decrease] in deferred inflows 5,215 24,467 6,269 5,191 Net cash provided by [used in] operating activities $ 1,739,142 $11,389,557 $ 917,633 $ 182,912 The notes to the basic financial statements are an integral part of this statement. 29 $ 9,157,373 $ 903,576 3,900,925 362 369,492 59,697 26,673 [580,502] [24,376] 113,959 [660] 58,119 [62,328] [1,145] 250,505 706,480 31,639 37,784 [1,405] 119,834 55,812 41142 37 $ 14,229,244 $ 1,165,206 ASSETS CITY OF SALINA, KANSAS STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS December 31, 2020 Cash and investments Total assets LIABILITIES AND NET POSITION Liabilities Accounts payable Total liabilities NET POSITION Restricted for individuals, organizations and other governments The notes to the basic financial statements are an integral part of this statement. 30 $ $ Custodial Fund 751 751 751 ADDITIONS Miscellaneous Total additions DEDUCTIONS Contractual services Total deductions Change in net position CITY OF SALINA, KANSAS STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS December 31, 2020 Net position, January 1 Net position, December 31 The notes to the basic financial statements are an integral part of this statement. 31 $ $ Custodial Fund 7,314 7,314 5,551 5,551 1,763 [1,012] 751 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 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 a five-member commission. These financial statements present the City and its component units, entities for which the government is considered to be financially accountable. Each discretely presented component unit is 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 Defense in June 1965. One of the primary functions of the Airport Authority is to facilitate the continued growth of jobs and payroll at the Airport Industrial Center. The Airport Authority is managed and controlled by a five- member Board of Directors appointed by the Salina City Commission. Any director may be removed by a majority vote of the Salina City Commission. The Airport Authority's basic mill levy (up to 3 mills) requires the approval of the City Commission. 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 the Housing Authority is essentially supported by the operating and debt service subsidies received under 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, 2020. Blended Component Unit Salina Field House Qualified Active Low-Income Community Business, Inc. (SFH QalicB) -SFH QalicB was created to function as 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 tournaments with the anticipation of becoming a regional destination for youth athletics. This mix of participation is expected to provide the most consistent visitation and tourism for the downtown district. The SFH QalicB is managed and controlled by a five-member Board of Directors appointed by the Salina City Commission. The field house is staffed by City of Salina employees. SFH QalicB has a December 31 fiscal year end. SFH QalicB is a not-for-profit organization exempt from income tax under Section 50l(c)(3) of the 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 entity's administrative offices. Salina Airport Authority 3237 Arnold Ave. Salina, KS Joint Ventures Housing Authority of the City of Salina 469 S. 5th Salina, KS Salina Field House QALICB, Inc. 300 W. Ast St. Salina, KS 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 the joint venture. Separate financial statements are available from the governing board of the joint venture. 32 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 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, 2020 $ 1,928,199 Total change in unencumbered cash, year ended December 31, 2020 331,741 Total cash receipts, year ended December 31, 2020 1,636,400 Total cash receipts from City of Salina 502,042 Complete financial statements for the joint venture may be obtained at the entity's administrative office. Salina County-City Building Authority 300 West Ash Street Salina, KS B. Government-wide and fund financial statements The statement of net position and 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 between the City's 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 supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially 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 reported as separate columns in the fund financial statements. Non major funds are aggregated and presented 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 are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. 33 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 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 and the modified accrual basis of accounting. Revenues are recognized as soon as they 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 a liability 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 revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria are met. Expenditure- driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met. 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 fund's ongoing operations. The principal operating revenues of the City's proprietary funds are charges to 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 capital assets. All revenue and expenses not meeting this definition are reported as nonoperating revenues and expenses. The internal service funds account for risk management, worker's compensation, health insurance, central garage and information services that are provided to other departments or agencies of the government, or to other governments, on a cost-reimbursement basis. The fiduciary funds are used by the City to accounts for resources held by the City for the benefit of a third part. Because the resources of these funds are not available for the City's operations, they are not presented in the government-wide financial statements. The City's lone fiduciary fund is reported as a custodial fund. The City reports the following major governmental funds: General Fund -To account for resources traditionally associated with government, which are not required legally, or by sound financial management, to be accounted for in another fund. 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 1.25 cent 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. 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. 34 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued) 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 the following 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. Additionally, the City reports the following as a fiduciary fund: Fire insurance proceeds fund -To account for insurance proceeds received for severely damaged buildings the insurance proceeds, plus interest, are returned to the property owners when the buildings are repaired or demolished. 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 fund type's portion of this pool is displayed in the financial statements as "Cash and Investments." The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. Investments in the Kansas Municipal Pool are carried at 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 of the year are referred to as either "interfund receivables/payables" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Accounts Receivable. The City records revenues when services are provided. All receivables are shown net of an allowance for 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 2021. 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. 35 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 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 10 of 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 draws down all available funds from the County Treasurer's office in two-month intervals. Taxes remaining 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. Capital Assets Capital assets, 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. Capital assets 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. Capital assets used in governmental fund types of the City are recorded at cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at their estimated fair value at the 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: Assets Buildings Other equipment Vehicles Infrastructure 36 Years 50 5 -15 6-10 30-50 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31 , 2020 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Fund Balance, and Net Position (Continued) 5. Compensated Absences It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All employees of the City, except temporary and part time employees, may accumulate sick leave at a rate of 8 or 11 hours per month depending on their work duty schedule. There is no limit on the amount of sick leave 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 and an employee's maximum accrued vacation leave balance cannot exceed 250 hours (or 350 hours for employees working 24-hour shifts). Employees are paid for all accumulated vacation leave at their current wage scale upon termination of employment. Vested or accumulated vacation leave that is expected to be liquidated with expendable available financial resources is reported as an expenditure and a fund liability in the 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 are recorded as an expense and 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 premium or 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. 37 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Fund Balance, and Net Position (Continued) 8. Fund Balances 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 either not 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, granters, 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 management's intent to be used for specific purposes but are neither restricted nor committed. Unassigned 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 are considered 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: Fund Balances: Nonspendable for: ln.entOI)' Restricted for. Public works Public health and sanitation Culture and recreation Plarriing and development Debt payments Committed for: Public safety Culture and recreation Planning and de1elopment Cemetery Capital impro1ements Assigned for. General gowmment Public safety Public works Culture and recreation Capnal impro\elllents Unassigned: Total Fund Balances Major Go1e111mental Funds Tourism Schilling and Special Sales Tax Capita! Debt General Comention Gas Capital lmprO\ement Ser'<ice $ 183,768 $ $ $ -$ -$ -$ 2,233,811 326,852 1,724,117 -4,065,778 1,493,977 20,863 37,672 Capital Projects -$ SFH QalicB Other Total Go\efllfllental Golelllmental $ $ 183,768 2,233,811 234 234 465,773 228,706 800 214,419 734,724 465,773 555,568 1,724,917 -1,560,626 364,668 214,419 734,724 1,925,294 536,838 -4,254,020 176,649 536,838 9,813,775 20,863 214,321 12,695 12,610 25,305 173,204 632,092 1,143,714 1,949,010 14,714,061 [4,027,807] ----10,686,254 $15,142,263 $326,852 $2,865,903 $5,209,492 $1,493,977 $1,724,117 $[4,027,807) $1,560,626 $6,989,441 $31,284,874 ------- 38 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 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, defeffed outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City reports a deferred charge on bond issuance reported in the government-wide statement of net position. A deferred charge on bond issuance results 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 addition to 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. Unavailable revenue-property taxes 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 liability and OPEB plan proportion are reported as deferred inflows. These amounts are deferred and recognized as an inflow 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 position represents the difference between assets and liabilities. Net investment in capital assets consists 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 position is reported 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. 39 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 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 budget must be published in the local newspaper. At least ten days after publication the hearing may be held and the governing body may amend the budget at that time. The 2020 budget was amended for the Business Improvement District, Bicentennial Center and Sanitation 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 are prepared using the statutory basis of accounting, in which, revenues are recognized when cash is received, and expenditures include disbursements, accounts payable, and encumbrances. Encumbrances are commitments by the municipality for future payments and are supported by a document evidencing the commitment, such as a purchase order or contract. All unencumbered appropriations (legal budget expenditure authority) lapse at year end. A legal operating budget is not required for capital projects funds, the SFH QalicB fund, non-major debt service funds, trust funds, permanent funds, and the following special revenue funds: Community Development Revolving, Downtown TIF District #1, South 9th CID, Downtown CID, Alley CID, Downtown Hotel CID, STAR Bonds Subprojects, State Grants, 911 Communications, Kenwood Cove Capital, Special Law Enforcement, Police Grants, Federal Grants, DARE Donations, War Memorial Maintenance, Federal CARE Grant, Police Department Federal Forfeiture, Homeowners' Assistance, Private Grants, Animal Shelter Donations, Special Assessments Escrow, Court Bond and Restitution, Police Investigation Account, Citizenship, DTF Local, DTF Reserve, Beechcraft Remediation Settlement and Bail Bond Escrow funds. A legal operating budget is not required for Internal Service Funds, however, actual to budget comparisons for these funds that present budgets to the Commissioners are shown strictly for informational purposes. Spending in funds, which are not subject to the legal annual operating budget requirements are controlled by federal regulations, other statutes, or by the use of internal spending limits established by the governing body. 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 and special assessment bonds) the city may have outstanding to 30 percent of the assessed value of all tangible taxable property within the city, as certified to the county clerk on the proceeding August 25. At December 31, 2020, the statutory limit for the City was $152,746,389, providing a debt margin of $86,997,826. 40 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 3. RESTATEMENT OF EQUITY Note 4. A. During the year ended December 31, 2020, the City implemented GASB Statement No. 84, Fiduciary Activities. The principal objective of this Statement is to enhance the consistency and comparability of fiduciary activity reporting by state and local governments. This Statement is also intended to improve the usefulness of fiduciary activity information primarily for assessing the accountability of governments in their roles as fiduciaries. As a result of the implementation, ten of the City's fiduciary funds combined with the General Fund or were reclassified as special revenue funds and their fund balances as of January 1, 2019, were restated. Also during the year ended December 31, 2020, 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: Other Solid Governmental Gm.emmental Waste Water and Activities General Funds Diseosal Sewer Net Position/Fund Balance, $138,358,514 $9,307,174 $ 4,670,517 $5,640,478 $85,218,779 December 31, 2019 Prior Period Adjustment [9,303,272] 196,236 425,644 1,959,983 (1,959,983) Net Position/Fund Balance, December 31 , 2019, Restated $129,055,242 $9,503,410 $ 5,096,161 $7,600,461 $83,258,796 DETAILED NOTES ON ALL FUNDS Deposits and Investments The City's cash is considered to be active funds by management and is invested according to KSA 9-1401 . 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 its idle funds in only temporary 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 notes or the Municipal Investment Pool (KMIP). Maturities of the above investments may not exceed two years by statute. Some of the City's investments are of bond proceeds invested pursuant to KSA 10-131 . This statute allows 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 in either of the three highest rating categories by Moody's investors service or Standard and Poor's corporation, and various other investments as specified in KSA 10-131. At December 31, 2020, the City has the following investments: lm,estment Type Kansas Municipal lm.estment Pool Total fair value 41 Fair Value $ 318,077 S&P AAAf/S1+ $ 318,077 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) A Deposits and Investments (Continued) 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. The City's investment policy provides direction on concentration risk. The City policy states that funds shall be diversified to reduce the extent of losses due to having an unbalanced portfolio in terms of maturities, instrument type, and issuers. Therefore, portfolio maturities shall be staggered to 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 are adequately 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 recognizes that 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. Custodial credit risk is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The City's deposit policy for custodial credit risk require that the depository banks will maintain 100% security in the form of FDIC coverage and pledged collateral according to KSA 9-1402. As of December 31, 2020 the City's deposits were considered fully secured. Restricted cash is comprised of a construction account, an interest reserve account (the "Interest Reserve"), and an expense reserve account (the "Operating Reserve") related to the SFH QalicB blended component unit. The Interest Reserve and the Operating Reserve accounts are available as part of the loans payable financing (see Note 4E). As of December 31, 2020, the balance of the construction account, Interest Reserve, and Operating Reserve was $0, $208,864, and $126,633, respectively. 42 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 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: Primary Go1.ernment Receivables: Accounts Taxes Interest General $ 7,642,984 10,934,927 10,391 18,588,302 Tourism and Special Convention Gas $ 326,008 $ - 305,807 326,008 305,807 Debt SFH Other Sen.ice QalicB Go1.ernmental Subtotal $ -$1,235,034 $ 11,365 $ 9,215,391 3,121,345 14,362,079 10,391 3,121 ,345 1,235,034 11,365 23,587,861 Gross receivables Less: allowance for uncollectibles [6,055,545] ---[8,078] [6,063,623] Total $12,532,757 $ 326,008 $305,807 $3,121,345 $1,235,034 $ 3,287 $17,524,238 ===....;.- Primary Government Receivables: Accounts Taxes Interest Gross receivables Less: allowance for uncollectibles Total Component Units Salina Airport Authority Accounts Grants Less: allowance for uncollectibles Total Salina Airport Authority Salina Housing Authority Accounts Less: allowance for uncollectibles Total Salina Housing Authority Total C. lnterfund Receivables and Payables Solid Waste Disposal Water and Sewer Sanitation Total $ 198,287 $2,146,899 $ 368,051 $11,928,628 14,362,079 ___ 1'--6 ---------10,407 198,303 2,146,899 368,051 26,301,114 [900,739) (148,108] [7,112,470) $ 198,303 $1,246,160 $ 219,943 $19,188,644 $ 99,749 750,000 [1,500] 848,249 27,872 [2,592] 25,280 $ 873,529 The composition of interfund balances as of December 31, 2020, is as follows: Fund Types Due From Due To General Fund $ 31,989 $ Other Go1emmental Funds 31 ,989 $ 31,989 $ 31,989 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. 43 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) D. Capital Assets Capital asset activity for the year ended December 31, 2020, was as follows: Balance Mj.Bal. 12/31/2019 Adjustments 12/31/2019 ~ City governmental activities: Governmental activities: Capital assets, not being depreciated Construction in progress $ 45,227,729 $ [9,925,152] $ 35,302,577 $ 8,686,394 Land 24,223,535 24,223,535 Leased land under capital lease 422,799 422,799 Capital assets, being depreciated Infrastructure 208,508,810 208,508,810 17,767,814 Buildings and improwments 53,158,946 53,158,946 Vehicles 10,224,294 10,224,294 453,480 Equipment, furniture and fixtures 7,279,276 7,279,276 210,441 Leasehold improvements 357,383 357,383 Total capital assets 349,402,772 [9,925,152) 339,477,620 27,118,129 Less accumulated depreciation for: Infrastructure 92,244,865 92,244,865 4,021,671 Buildings and improvements 22,602,874 22,602,874 1,337,773 Vehicles 7,370,391 7,370,391 597,748 Equipment, furniture and fixtures 4,926,799 4,926,799 252,747 Total accumulated depreciation 127,144,929 127,144,929 6,209,939 Governmental activities capital assets, net $ 222,257,843 $ [9,925,152) $212,332,691 $20,908,190 Business-type activities: Capital assets, not being depreciated Construction in progress $ 7,526,968 $ -$ 7,526,968 $21,925,306 Land 2,386,334 2,386,334 Capital assets, being depreciated Infrastructure 130,167,335 130,167,335 1,476,335 Buildings and improvements 22,579,936 22,579,936 Vehicles 3,863,039 3,863,039 Equipment, furniture and fixtures 5,751 ,603 5,751,603 13,921 Total capital assets 172,275,215 172,275,215 23,415,562 Less accumulated depreciation for: Infrastructure 50,343,716 50,343,716 3,006,824 Buildings and improvements 14,060,793 14,060,793 415,804 Vehicles 2,575,294 2,575,294 208,311 Equipment, furniture and fixtures 4,216,095 4,216,095 269,983 Total accumulated depreciation 71 ,195,898 71,195,898 3,900,922 Business-type activities capital assets, net $101,079,317 $ -$101,079,317 $19,514,640 44 Balance Retirements 12/31/2020 $17,767,814 $ 26,221 ,157 24,223,535 422,799 226,276,624 53,158,946 508,250 10,169,524 5,275 7,484,442 357,383 18,281,339 348,314,410 96,266,536 23,940,647 474,017 7,494,122 4,575 5,174,971 478,592 132,876,276 $17,802,747 $215,438,134 $ 1,476,335 $ 27,975,939 2,386,334 131,643,670 22,579,936 81,772 3,781,267 5,765,524 1,558,107 194,132,670 53,350,540 14,476,597 81,772 2,701 ,833 4,486,078 81 ,772 75,015,048 $ 1,476,335 $119,117,622 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) D. Capital Assets (Continued) The City's depreciation expense was charged to governmental functions as follows: E. Long-Term Debt GO\ernmental Actil,ities: General go-.ernment $ 59,708 596,885 4,391,637 Public safety Public works Public health 31,110 Culture and recreation 797, 125 Planning and de-.elopment 333,474 Total depreciation $ 6,209,939 -==-...... --- Business-type Actil.ities: Solid Waste Disposal $ 152,926 Water and Sewer 3,543,385 Sanitation 161,378 Golf Course Di1Asion 43,233 Total depreciation =$==3=,9=00====,9=2=2 Following is a summary of changes in long-term debt for fiscal year 2020: Balance January 1, 2020 Additions Deletions Governmental activities: General obligation bonds $ 57,623,908 $ 8 ,053,404 $ 6,346,331 Loans payable 12,199,016 13,963 OPES liability 3,121,647 437,137 461,244 KPERS OPEB liability 349,412 54,788 1,523 Net pension liability 28,968,806 5,602,584 Accrued compensation 2,786,077 1,149,819 1,238,890 Temporary notes 11,170,000 7,050,000 11,170,000 Total $116,218,866 $22,361,695 $19,217,988 Business-type activities: General obligation bonds $ 4,116,515 $ 6,440,539 $ 1,449,064 Revenue bonds 11,122,175 781,015 Loans payable 22,539,686 18,475,071 5,088,730 OPEB liability 397,680 179,164 59,330 KPERS OPEB liability 156,983 38,520 736 Net pension liability 3,148,126 706,480 Accrued compensation 656,639 210,673 273,001 Total $ 42,137,804 $26,050,447 $ 7 ,651 ,876 Component Units: General obligation bonds $ 22,425,000 $ 2,100,000 $ 1,425,000 Less unamortized discount [17,703] [861] Lease purchase agreement 460,000 Special assessment debt 4,805 2,350 KPERS OPEB obligation 13,338 586 Net pension liability 632,856 82,814 Total component units $ 23,058,296 $ 2,643,400 $ 1,426,489 45 Balance December 31, 2020 $ 59,330,981 12,212,979 3,097,540 402,677 34,571,390 2,697,006 7,050,000 $119,362,573 $ 9,107,990 10,341,160 35,926,027 517,514 194,767 3,854,606 594,311 $ 60,536,375 $ 23,100,000 [18,564] [18,564] 2,455 13,924 715,670 $ 23,794,921 Amounts Due Within One Year $ 4,699,145 1,238,890 7,050,000 $12,988,035 $ 1,118,207 816,015 375,071 273,001 $ 2 ,582,294 $ 3,730,000 39,942 2,455 $ 3,772,397 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) E. Long-Term Debt (Continued) The following is a detailed listing of the City's long-term debt including general obligation bonds, revenue bonds, temporary notes and loans payable: Primary Government General Obligation Bonds Internal Improvements 2011A, due 10/1/2031 Internal Improvements 2013A, due 10/1/28 Internal Improvements 2013B, due 10/1/33 Internal Improvements 2014A, due 10/1/34 Improvement and Refunding 2015A, due 10/1/35 Internal Improvements 2016A, due 10/1/36 Refunding 2016B, due 10/1/2031 Internal Improvements 2017A, due 10/1/37 Internal Improvements 2018A, due 10/1 /33 Internal Improvements 2019A, due 10/1/39 Internal Improvements 2020A, due 10/1/35 Internal Improvements 2020B, due 10/1/36 Total general obligation bonds Revenue Bonds Revenue & Refunding 2019, due 10/1/31 Total rewnue bonds Temporary Notes Series 2020-1, due 5/1/21 Total temporary notes Loans Payable Kansas Public Water Supply, due 8/1/34 Kansas Public Water Supply, due 2/1/40 Kansas Public Water Supply, due 2/1/40 Kansas Water Pollution Control, due 3/1/35 Dakotas & CNMC Notes, due 12/10/50 Total loans payable 46 Original Issue $ 6,587,985 1,369,380 4,485,073 7,839,050 7,157,688 6,681,766 15,141,004 9,388,370 2,090,000 11,090,000 5,450,610 9,043,333 $11,122,175 $ 7,050,000 $ 9,330,000 32,000,000 4,250,000 2,250,000 12,640,000 Interest Rates 2.00% to 5.00% 3.00% to 4.00% 0.60% to 3.65% 2.50% to 3.75% 2.00% to 4.00% 2.00% to 3.00% 2. 00% to 5. 00% 3.00% to 3.375% 3.15% to 4.00% 3.00% to 4.00% 2.00% to 3.00% 2.00% to 3.00% 3.00% 1.00% 2.12% 2.33% 2.33% 2.54% 1.58% Bonds Outstanding $ 376,151 820,005 2,760,796 4,493,337 5,409,518 5,594,414 12,877,933 8,416,616 1,925,524 11,270,734 5,450,610 9,043,333 $ 68,438,971 $10,341,160 $10,341,160 $ 7,050,000 $ 7,050,000 $ 6,044,214 25,397,675 3,387,022 1,097,118 12,212,979 $48,139,008 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) E. Long-Term Debt (Continued) Component Unit Salina Airport Authority General Obligation Debt General Obligation 2015A, due 2025 General Obligation 2017 A, due 2030 General Obligation 20178, due 2025 General Obligation 2019A, due 2029 General Obligation 20198, due 2023 General Obligation Temporary Notes 2019-1, due 2021 General Obligation Temporary Notes 2020-1, due 2023 Less unamortized bond premium Less unamortized bond discount Total general obligation bonds Taxable Lease Purchase Agreement Bldg. 824 Capital Lease, due 2030 Total taxable lease purchase agreement Special Assessment Debt Hangar 600 Sanitary Sewer, due 2021 Total special assessment debt Total Original Issue $3,075,000 10,255,000 4,835,000 675,000 3,455,000 2,250,000 2,100,000 27,599 Interest Rates 2.67% 3.04% 3.02% 2.78% 2.92% 2.50% 0.48% 4.47% Bonds Outstanding $ 600,000 10,010,000 4,760,000 615,000 2,765,000 2,250,000 2,100,000 23,116 [41,680] 23,081,436 460,000 460,000 2,455 2,455 $23,543,891 Annual debt service requirements to maturity for general obligation bonds to be paid with tax levies: General Obligation -Primary Gowmment Bonds Interest Year Outstanding Due Total 2021 $ 5,809,970 $ 2,023,189 $ 7,833,159 2022 5,968,819 1,803,571 7,772,390 2023 5,838,819 1,589,204 7,428,023 2024 5,643,103 1,379,557 7,022,660 2025 5,338,103 1,233,432 6,571,535 2026-2030 20,230,297 4,273,047 24,503,344 2031-2035 14,929,360 1,876,027 16,805,387 2036-2039 4,680,500 285,393 4,965,893 47 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) E. Long-Term Debt (Continued) General Obligation -Component Units Bonds Interest Year Outstanding Due Total 2021 $ 3,730,000 $ 615,917 $ 4,345,917 2022 1,525,000 518,748 2,043,748 2023 3,665,000 478,020 4,143,020 2024 1,615,000 424,235 2,039,235 2025 1,660,000 381,540 2,041 ,540 2026-2030 8,995,000 1,145,810 10,140,810 2031 1,910,000 57,300 1,967,300 Total $ 23,100,000 $ 3,621,570 $ 26,721,570 Annual debt service requirements to maturity for revenue bonds to be paid with utility revenues: Re1oenue Bonds -Primary Go1oemment Bonds Interest Year Outstanding Due Total 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 911,015 194,250 1,105,265 2026-2030 4,955,071 575,400 5,530,471 2031 1,071,014 30,150 1,101,164 Annual debt service requirements to maturity for temporary notes -to be paid through the issuance of general obligation bonds: Year 2021 $ Temporary Notes -Primary Go1oernment Notes Interest Outstanding 7,050,000 $ 48 Due 70,892 $ Total 7,120,892 ----- CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 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 Go\ernment Loans Interest Year Outstanding Due Total 2021 $ 375,071 $ 126,159 501,230 2022 383,064 118,166 501,230 2023 391,228 110,002 501,230 2024 399,566 101,664 501,230 2025 408,082 93,148 501,230 2026-2030 2,174,635 331,515 2,506,150 2031-2034 1,912,568 92,358 2,004,926 Total $ 6,044,214 $ 973,012 $ 7,017,226 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, was provided to SFH QalicB by Dakotas XXII, LLC. Interest accrues on the unpaid principal balance at an interest rate of 1.582625% with annual interest-only payments due, partially in arrears and partially in advance, on the tenth day of each December 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, 2016, and continuing through the maturity date, annual payments of principal and interest in an amount equal to $293,276 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 , 2020, 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, was provided to the SFH QalicB by Dakotas XXII, LLC. Interest accrues on the unpaid principal balance at an interest rate of 1.582625% with annual interest-only payments due, partially in arrears and partially in advance, on the tenth day of each December 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, 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, 2020, the note balance was $2,623,500. 49 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) E. Long-Term Debt (Continued) CNMC Note A-On July 27, 2016, a $2,674,000 promissory note with a maturity date of December 10, 2050, was provided to the SFH QalicB by CNMC Sub-CDE 114, 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, on the tenth day of each December 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, 2026, and continuing through the 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 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, 2020, the note balance was $2,674,000. CNMC Note B -On July 27, 2016, a $1,326,000 promissory note with a maturity date of December 10, 2050, was provided to the SFH QalicB by CNMC Sub-CDE 114, 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, on the tenth day of each December 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, 2026, and continuing through the maturity date, annual payments of principal and interest in an amount equal to $64,636 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, 2020, the note balance was $1,326,000. As of December 31, 2020, the principal balance of these four loans, net of $427,021 of unamortized debt issuance costs, was $12,212,979 Annual debt service requirement to maturity for Special Assessment Debt to be paid from rental revenue: Special Assessment Debt -Component Units Assessment Interest Year Outstanding Due Total 2020 $ 2,455 $ 110 $ 2,565 Total $ 2,455 $ 110 $ 2,565 50 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) E. Long-Term Debt (Continued) Special assessments. As provided by Kansas statutes, projects financed in part by special assessments are financed through general obligation bonds of the City and are retired from the debt service fund. Special assessments paid prior to the issuance of bonds are recorded as revenue in the appropriate project. Special assessments received after the issuance of bonds are recorded as revenue in the debt service fund. The special assessments 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. Premises lease. On July 27, 2016, SFH QalicB entered into a lease agreement 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 Net Lease agreement. For the year ended December 31, 2020, SFH QalicB earned $492,917 of rental income under the terms of the Net Lease. As of December 31, 2020, rental income of $94,825 remained receivable from the City. 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 , 2020: Premises Leases between QalicB anc 2021 $ 130,000 2022 130,000 2023 162,500 2024 227,500 2025 227,500 Thereafter 13,325,000 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 tax and 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 proposed STAR bond project district's boundary and describes the overall district plan, hold a public hearing on 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. 51 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 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 proportionally by the City of Salina and the State of Kansas, based on each entity's 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 Ordinance 16-10856 adopting the STAR Bond Project Plan. On December 1, 2018, the City of Salina issued $18,250,000 in Senior Special Obligation Revenue Bonds (Series 2018-A) and $4,320,000 in Subordinate Special Obligation Revenue Bonds (Series 2018-B). As of December 31, 2020, 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 City and Saline County jointly entered into a non-cancelable lease to finance a $2,750,000 heating, ventilation and air conditioning (HVAC) upgrade at the Saline County-City Building Authority. The City's share of the lease agreement is 40% and will pay 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 $93,926 for the year ended December 31 , 2020. The future minimum lease payments for the lease are as follows: G. lnterfund Transfers Amount Year 2021 2022 2023 2024 2025 $ 93,926 2026-2027 Total principal and interest Less: interest Total principal $ 93,926 93,926 93,926 93,926 187,853 657,483 [73,758) 583,725 A reconciliation of interfund transfers follows: Transfer In Transfer Out Major Funds: General $ 4,366,550 $ 877,000 Tourism and Com.ention 589,251 Special Gas 160,000 Sales Tax Capital 2,804,350 Debt Ser\'ice 1,629,188 Capital Projects 20,845,460 Other 901.emmental funds 1,241,413 Solid Waste Disposal 2,729,588 Water and Sewer 4,126,717 25,051,789 Sanitation 497,350 Golf Course 100,000 Central Garage 80,000 Total transfers $32,549,328 $32,549,328 The City uses interfund transfers to share administrative costs between funds. 52 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 5. OTHER INFORMATION A. Defined Benefit Pension Plan Description of Pension Plan. The City participates 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: o State/School employees o 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 City are included in the Local employees group 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 credited service, or whenever a member's combined age and 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 as established by K.S.A. 74- 4922. Members choose one of seven payment options for their monthly retirement benefits. At retirement a member may receive a lump-sum payment of up to 50% of the actuarial present value of the member's lifetime benefit. 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. 53 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 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 the fiscal year ended June 30, 2020. The actuarially determined employer contribution rates (not including the 1.00% contribution rate for the Death and Disability Program) and the statutory contribution rate was 8.61 % for KPERS and 21 .93% for KP&F for the year ended December 31 , 2020. Member contribution rates as a percentage of eligible compensation for the fiscal year 2020 are 6.00% for Local employees and 7.15% for Police and Firemen. Employer A/locations. 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. The allocation percentages for the City's share of the collective pension amounts as of December 31 , 2020, are based 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 , 2020. The contributions used exclude contributions made for prior service, excess benefits and irregular payments. At June 30, 2020, the City's proportion for the Local employees group was 0.767%, which was a decrease of .003% from its proportion measured at June 30, 2019. At June 30, 2020, the City's proportion for the Police and Firemen group was 2.038%, which was a decrease of .036% from its proportion measured at June 30, 2019. Net Pension Liability. At December 31, 2020 and 2019, the City and its component units reported a liability of $39,533,871 and $32,116,932, respectively, for its total proportionate share of the net pension liability for the Local and Police and Firemen groups. 54 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 5. OTHER INFORMATION (Continued) A. Defined Benefit Pension Plan (Continued) Actuarial Assumptions. The total pension liability was determined by an actuarial valuation as of December 31, 2019, which was rolled forward to June 30, 2020, using the following actuarial assumptions: Assumptions Rate Price inflation 2. 75% Wage inflation 3.25% Salary increases, including wage increases 3.25% to 11. 75% including inflation Long-term rate of return, net of im.estment expense, and including price inflation 7.50% 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-2016. The actuarial assumptions used in the December 31, 2019 valuation were based on the results of an actuarial experience study conducted for the period of January 1, 2016, through December 31, 2018. The experience study is dated January 7, 2020. 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 for each major asset class included in the pension plan's target asset allocation as of June 30, 2020 are summarized in the following table: Asset US Equities Non-US Equities Private Equity Private Real Estate Yield Driven Real Return Fixed Income Short Term lm.estments Long-Term Expected Long-Term Allocation Real Rate of Return 23.50% 23.50% 8.00% 11.00% 8.00% 11.00% 11.00% 4.00% 100.00% 5.20% 6.40% 9.50% 4.45% 4.70% 3.25% 1.55% 0.25% Discount Rate. The discount rate used to measure the total pension liability was 7.50%. 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 by the System's Board of Trustees for these groups may not increase by more than the statutory cap. The 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 pension plan's fiduciary net position was projected to be available to make all projected future benefit 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. 55 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 5. OTHER INFORMATION (Continued) A. Defined Benefit Pension Plan (Continued) Sensitivity of the City's proportionate share of the net pension liability to changes in the discount rate. The following presents the City's proportionate share of the net pension liability calculated using the discount rate of 7.50%, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower (6.50%) or 1-percentage point higher (8.50%) than the current rate: Local Police & Firemen Total 1% Decrease (6.50%) $ 20, 189,679 34,403,134 Discount Rate {7.50%) 1% Increase (8.50%} $ 14,325,796 $ 9,396,471 25,135,770 17,396,196 $ 54,592,813 $ 39,461,566 $ 26,792,667 -=======-- Pension Expense. For the year ended December 31, 2020, the City recognized Local pension expense of $1,156,925 and Police and Firemen pension expense of $2,405,832, 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 Authority's and Salina Airport Authority's portion of the Local pension expense were $35,958 and $89,795, respectively. Deferred Outflows of Resources and Deferred Inflows of Resources. At December 31, 2020, the City and its component units reported deferred outflows of resources and deferred inflows of resources related to pensions for Local and Police and Firemen groups from the following sources: 56 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 5. OTHER INFORMATION (Continued) A. Defined Benefit Pension Plan (Continued) Deferred outflows Deferred inflows Local Differences between actual and expected experience Net differences between projected and actual earnings on im.estments Changes in assumptions Changes in proportion Total $ $ of resources 221,907 $ 1,550,639 800,513 of resources 170,863 232,177 449,541 2,805,236 $ 620,404 ===== Deferred outflows Deferred inflows Police & Firemen Differences between actual and expected experience Net differences between projected and actual earnings on im.estments Changes in assumptions Changes in proportion Total $ $ of resources of resources 734,702 $ 2,442,541 1,739,968 21,294 729,307 4,938,505 $ 729,307 Housing Authority Deferred outflows Deferred inflows Local Differences between actual and expected experience Net differences between projected and actual earnings on investments Changes in assumptions Changes in proportion Total $ $ of resources 700 7,527 9,777 484 of resources $ 8,056 648 12,327 18,488 $ 21,031 ====---- Airport Authority Deferred outflows Deferred inflows Local of resources of resources Differences between actual and expected experience $ 11,950 $ 9,201 Net differences between projected and actual earnings on investments 83,501 Changes in assumptions 43,107 Changes in proportion 40,138 49,264 Total $ 178,696 $ 58,465 $1,763,259 reported 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, 2021. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Local Police & Firemen Deferred Deferred Year ended [Inflows] Outflows [Inflows] Outflows December 31 , Amount Amount Total 2021 $ 498,387 $ 1,058,828 $ 1,557,215 2022 586,306 1,155,904 1,742,210 2023 578,511 1,086,067 1,664,578 2024 507,037 877,263 1,384,300 2025 14,591 31,136 45,727 Total $ 2,184,832 $ 4,209,198 $ 6,394,030 57 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 5. OTHER INFORMATION (Continued) A. Defined Benefit Pension Plan (Continued) $38,910 and $35,467 reported as deferred outflows of resources related to pensions resulting from Salina Housing Authority 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, 2021. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year ended December 31, 2021 2022 2023 2024 2025 Total B. Deferred Compensation Plan Housing Authority Airport Authority Deferred [Inflows] Outflows Amount Deferred [Inflows] Outflows Amount $ $ 5,237 $ [6,228) [879) [366] [307] [2,543] $ 30,148 $ 38,269 30,520 21,279 15 120,231 $ Total 35,385 32,041 29,641 20,913 [292] 117,688 The City offers its employees a deferred compensation plan ("Plan") created in accordance with Internal Revenue Code Section 457. The Plan, available to all City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. Plan assets are 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 or her 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 and omissions; natural disasters and other events for which the City carries commercial insurance. No 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. The City has established a limited risk management program for workers' compensation. The program covers all City employees. Premiums are paid into the Workers' Compensation Reserve Fund by all other funds and are available to pay claims, claim reserves and administrative costs of the program. An excess coverage insurance policy covers individual claims in excess of $250,000 ($350,000 for claims involving employees classified as policemen or firemen). Incurred claims, including incurred but not reported claims, have been accrued based primarily upon subsequent payments. Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and amounts of payouts and other economic and social factors. The liability for claims and judgments is reported in the Workers' Compensation Reserve Fund because it is expected to be liquidated with expendable available financial resources. Of the liability, $183,446 is considered to be due within one year. 58 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 5. OTHER INFORMATION (Continued) D. Risk Management (Continued) Changes in the balances of claims liabilities during the past two years are as follows: 2020 2019 Unpaid claims, January 1 $ 311,572 $ 238,778 Incurred claims (including IBNRs) 917,229 726,271 Claim payments [782,306] [653,477] Unpaid claims, December 31 $ 446,495 $ 311,572 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: E. Contingent Liabilities Unpaid claims, January 1 Incurred claims (including IBNRs) Claim payments Unpaid claims, December 31 2020 2019 $ 489,418 $ 380,980 3,056,323 4,466,044 [2,940,741] [4,357,606] $ 605,000 $ 489,418 The City receives significant financial assistance from numerous federal and state governmental agencies in the form of grants and state pass-through aid. The disbursement of funds received under these programs generally requires compliance with terms and conditions specified in the grant agreements and is subject to audit. Any disallowed claims resulting from such audits could become a liability of the General Fund or other applicable funds. However, in the opinion of management, any such disallowed claims would not have a material effect on any of the financial statements of the City at December 31, 2020. 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 $2,300,353 reported as landfill closure and postclosure care liability at December 31, 2020, represents the cumulative amount reported to date based on the use of 28.8% of the estimated capacity of the landfill. 59 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 5. OTHER INFORMATION (Continued) F. Municipal Solid Waste Landfill (Continued) The City's solid waste fund will recognize the remaining estimated cost of closure and postclosure care of $5,680,356 as the remaining estimated capacity is filled over the remaining life expectancy of 147 years. These amounts are based on what it would cost to perform all closure and postclosure care in 2020. Actual cost may be higher due to inflation, changes, in technology or changes in regulations. The City is required by State and Federal laws and regulations to provide assurances of financial responsibility for closure and post- closure care. The City has elected to utilize the Local Government Financial test promulgated by the 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. G. 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. Since 2010, the City has been involved with civil litigation concerning environmental contamination in certain areas in the vicinity of the Salina Regional Airport and the Salina Airport Industrial Center. The contamination was caused by military activity that occurred between 1942 and 1966 when the site was operated as the Schilling Air Force Base. The City, the Salina Airport Authority, Unified School District No. 305 and Kansas State University (the "Salina Public Entities") sued the United States seeking federal funds to clean up the contamination. A remedial investigation and feasibility study (RI/FS) were completed in 2019 to determine the extent and severity of the contamination and to determine the best method of remediation. Based on the RI/FS, the Kansas Department of Health and Environment (KDHE) issued a Corrective Action Decision (CAD) on July 29, 2019. The Salina Public Entities and the U.S. Department of Justice (DOJ) reached a settlement of the litigation ultimately documented in the form of a Consent Decree filed in U.S. District Court on November 23, 2020. Pursuant to the Consent Decree, the Salina Public Entities assumed responsibility for the Response Action in the CAD in exchange for a $69.5 million lump sum payment by the United States to the Salina Public Entities. The settlement payment was not received by the City or the Salina Public Entities as of December 31, 2020. 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. 60 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 5. OTHER INFORMATION (Continued) H. 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, 2020. Project Authorization Exi;!enditures Markley-Magnolia W Sewer $ 5,150,000 $ 1,314,305 North Lime Drying Lagoon Yearly Maintenance 120,000 37,260 Rebuild High Ser\iice Pump P-203 24,187 13,688 2017 Country Club Road lmprowments 1,200,000 1,089,063 RiwrTrail 2 956,072 11,312 Downtown Streetscape 12,165,000 11,669,107 Smoky Hill Riwr Renewal 27,000,000 3,595,670 Water Mains 4,250,000 3,649,443 Downtown Santa Fe Water Main Replacement 1,351,100 1,415,997 Police Training Facility 4,900,000 5,936,845 Rehab Pump St 28,29/Repl 28 Face Main 550,000 Northbound 9th Street Bridge 103,768 95,358 Landfill Cell #20 Design 2,200,000 1,991,469 Railroad Crossing lmpro\Ements 45,000 2018 Park lmprowments 194,000 87,000 Pheasant Ridge Addition #3 Phase 2 509,233 509,878 Community Theater HVAC Replacement 46,000 207 Stonn Sewer Mulberry Street 22,709 26,151 N. 9th Street Bridge 2,000,000 4,273 Golf Course Irrigation 1,488,414 1,499,452 9th South Addition 1,180,313 2,976 Smoky Hill Greenway Trail 435,637 61,934 Chorine Bluilding 2 Roof Replacement 35,000 2019 Water Main Replacement 4,000,000 Magnolia Hills Estates II 1,575,240 11,285 Stone Lake Phase 2 670,166 335,794 Stone Lake Phase 3A 1,647,053 3,368 Smedley Surgical Center 45,486 36,501 Sound Garden Oakdale Park 10,046 10,046 Wheatland Valley -Specials 5,474,790 6,500 Park Shelter Roof Replacement 93,816 LED Lighting replacement -Parks 18,223 Mulberry Storm Sewer Repairs 461,556 417,398 Chip Seal 210,623 194,940 Microsurfacing 574,888 306 Mill & Inlay 494,196 375,247 Price Property Culwrt Replacement 6,600 59,625 Waterline for SWTP 912,982 812,319 Joe Milbradt PalAllion 133,100 256,785 Fire Equipment 860,795 484,487 WWTP Owners Rep 896,790 93,595 WWTP lmpro\Ement PH I 879,193 Public Safety Communication System 2,361,323 139,986 TPEC lmprowments 270,426 61 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 5. OTHER INFORMATION (Continued) I. Other Postemployment Healthcare Benefits Plan Description. The City offers postemployment health insurance to retirement employees. The benefits are provided through a single employer defined benefit postemployment healthcare plan administered by the City. 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 2020, the City did not contribute to the plan. At December 31, 2020, the following employees were covered by the benefit terms: Active employees Retirees and covered spouses Total 440 29 469 The total OPEB liability of $3,615,054 was measured as of December 31, 2019 and was determined by an actuarial valuation as of that date. The total OPEB liability in the December 31, 2019 actuarial valuation was determined using the following assumptions and other inputs, applied to all periods in the measurement, unless otherwise specified: Valuation date Actuarial cost method Inflation Salary increases Discount rate Healthcare cost trend rates Retiree's share of benefit related costs December 31, 2019 Entry age normal as a level percentage of payroll 2.75% 3.50% 2.74% Medical: 6.40% for 2020, decreasing 0.50% per year to an ultimate rate of 3.7% for 2074 Dental: 5.00% to 2022, then decreasing to an ultimate rate of 3. 70% in 2074 100% of the premium 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 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 1/1/2020 Sel"loice cost Interest Benefit paid Economic/demographic gains/losses Changes in assumptions Balance 12/31/2020 62 $ 3,519,327 231,391 150,552 [159,018] [255,426] 128,228 $ 3,615,054 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 5. OTHER INFORMATION (Continued) I. Other Postemployment Healthcare Benefits (Continued) The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (1.74%) or one percentage point higher (3.74%) than the current discount rate: 1% Decrease Discount Rate 1% increase (1.74%) (2.74%) (3.74%) Total OPEB Liability $ 3,971,843 $ 3,615,054 $ 3,289,912 The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than the current healthcare cost trend rate: Healthcare Cost 1% Decrease Trend Rates 1% increase Total OPEB Liability $ 3,166,500 $ 3,615,054 $4,152,174 For the year ended December 31, 2020, the City recognized OPEB expense of $356,442. Deferred Outflows of Resources and Deferred Inflows of Resources. At December 31, 2020, the City reported deferred outflows related to other postemployment benefits from the following sources: Deferred outflows Deferred inflows of resources of resources Changes of assumptions $ 173,216 $ [143,654] Differences between expected and actual experience [226,168] Total $ 173,216 $ [369,822] Amounts reported as deferred outflows of resources will be recognized in OPEB expense as follows: Year ended June 30, 2021 2022 2023 2024 2025 2026+ Total J. Other Postemployment Benefits (KPERS) Deferred [Inflows] Outflows Amount $ [25,501] [25,501] [25,501] [25,501] [25,501] [69,101] $ [196,606] Plan Description. The City participates in a multiple-employer defined benefit other postemployment benefit (OPEB) plan (the Plan) which is administered by 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 that is funded to pay annual benefit payments. However, because the trust's assets are used to pay employee benefits other than OPEB, the trust does not meet the criteria in paragraph 4 of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. Accordingly, the Plan is considered to be administered on a pay-as-you-go basis. 63 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 5. OTHER INFORMATION (Continued) J. Other Postemployment Benefits (KPERS) (Continued) 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) of annual compensation, offset by other benefits. Members receiving long-term disability benefits also receive credit towards their KPERS retirement benefits and have their group life insurance coverage continued under the waiver of premium provision. The monthly long-term disability benefit is 60 percent of the member's monthly compensation, with a minimum of $100 and a maximum of $5,000. The monthly benefit is subject to reduction by deductible sources of income, which include Social Security primary disability or retirement benefits, workers compensation benefits, other disability benefits from any other sources by reason of employment, and earnings from any form of employment. If the disability begins before age 60, benefits are payable while the disability continues until the member's 65th birthday or retirement date, whichever occurs first. If the disability begins after age 60, benefits are payable while the disability continues, for a period of five years or until the member retires, whichever occurs first. Benefit payments for disabilities caused or contributed to by substance abuse or non-biologically based mental illnesses are limited to the shorter of the term of the disability or 24 months per lifetime. The death benefit paid to beneficiaries of disabled members is 150% of the greater of 1) the member's annual rate of compensation at the time of disability, or 2) the members previous 12 months of compensation at the time of the last date on payroll. If the member has been disabled for five or more years, the annual compensation or salary rate at the time of death will be indexed using the consumer price index, less one percentage point, to compute the death benefit. If a member is diagnosed as terminally ill with a life expectancy of 12 months or less, the member may be eligible to receive up to 100% of the death benefit rather than having the benefit paid to the beneficiary. If a member retires or disability benefits end, the member may convert the group life insurance coverage to an individual insurance policy. Employees covered by benefit terms. At June 30, 2020, the valuation date, the following employees were covered by the benefit terms: Active employees Disabled members Total 281 3 284 Total OPEB Liability. The City and its component units reported a total KPERS OPEB liability of $597,444 as of December 31 , 2020, was measured as of June 30, 2020, and was determined by an actuarial valuation as of December 31, 2019, which was rolled forward to June 30, 2020, using the following actuarial assumptions: Valuation date December 31, 2019 Actuarial cost method Entry age normal Inflation 2. 75% Salary increases 3.00% 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 Municipal Index) 2.21% The discount rate was based on the bond buyer general obligation 20-bond municipal index. 64 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 5. OTHER INFORMATION (Continued) J. Other Postemployment Benefits (KPERS) (Continued) 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, 2019, valuation were based on the results of an actuarial experience study for the period of January 1, 2016 through December 31, 2018. Other demographic assumptions are set to be consistent with the actuarial assumptions reflected in the December 31, 2019, KPERS pension valuation. The changes in the total OPEB liability are as follows: Balance 1/1/2020 SeNce cost Interest Effect of economic/demographic gains or losses Changes in assumptions Benefit payments Balance 12/31/2020 City $506,395 57,185 19,037 17,086 37,368 [39,627] $597,444 Total KPERS OPEB Liability Housing Authority Aimort Authority $ 8,186 $ 13,338 1,529 3,430 376 587 [2,482] 49 [4,295] 864 $ 7,658 $ 13,924 Total $527,919 62,144 20,000 14,604 33,122 [38,763] $619,026 Sensitivity of the total KPERS OPEB liability to changes in the discount rate. The following presented the total KPERS OPEB liability of the City, as well as what the City's total KPERS OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower ( 1.21 % ) or 1-percentage-point higher (3.21 % ) than the current discount rate: 1% Decrease Discount Rate 1% increase {1.21%) {2.21%) {3.21%) Total OPEB Liability -City $ 618,840 $ 597,444 $ 575,090 Total OPEB Liability -Housing Authority $ 7,745 $ 7,658 $ 7,511 Total OPES Liability -Airport Authority $ 14,114 $ 13,924 $ 13,610 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 well as what the City's total KPERS OPEB liability would be if it were calculated using trend rates that are 1 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% Decrease Trend Rates 1% increase Total OPES Liability -City $ 597,444 $ 597,444 $ 597,444 Total OPES Liability -Housing Authority $ 7,658 $ 7,658 $ 7,658 Total OPES Liability -Airport Authority $ 13,924 $ 13,924 $ 13,924 For the year ended June 30, 2020, the City recognized OPEB expense of $78,842. 65 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 5. OTHER INFORMATION (Continued) J. Other Postemployment Benefits (KPERS) (Continued) Deferred Outflows of Resources and Defeffed Inflows of Resources. At December 31 , 2020, the City reported deferred outflows and inflows related to other postemployment benefits from the following sources: City Housing Authority Airport Authority Deferred Deferred Deferred Deferred Deferred Deferred Outflows of Inflows of Outflows of Inflows of Outflows of Inflows of Resources Resources Resources Resources Resources Resources Differences between expected and actual experience $ 67,257 $ 75,665 $ -$ 4,221 $ 7,813 $ Changes of assumptions 39,638 9,995 44 195 148 897 Total $ 106,895 $ 85,660 $ 44 $ 4,416 $ 7,961 $ 897 $64,827 and $3,830 reported as deferred outflows of resources related to OPEB resulting from City and Airport Authority contributions subsequent to the measurement date, respectively, will be recognized as a reduction of the OPEB liability in the year ended December 31, 2021. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in OPEB expense as follows: Year Ended Housing Airport June 30, City Authority Authority 2021 $ 2,620 $ [537] $ [925] 2022 2,620 (537] [925] 2023 2,620 [537] [925] 2024 2,620 [537] [925] 2025 2,620 [537] [925] Thereafter 8,135 [1,687] [2,439] Total $21,235 $ [4,372] $ [7,064] K. Tax Abatements In 2020, 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. 66 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 5. OTHER INFORMATION (Continued) K. Tax Abatements (Continued) Ad Valorem Property Tax Abatements Company Salina Vortex Corp (facility improvements) Great Plains Mfg (facility improvements) Veris Technologies (facility addition/improvements) Twin Oaks (facility addition/improvements) Total Abatement Start End ---- 2015 2024 2014 2023 2015 2024 2015 2024 % 37.5% 50% 20.3% 27.5% 2020 Tax Abated $ 5,522 4,073 505 688 $ 10,789 Tax Increment Financing (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. TIF Project Plans 2020 Reimbursements District Purpose Base Year Expires Sales Tax Property Tax Construction of 10. 79 acres of shopping center, including single and multi-tenant retail space, and related public and private Lambertz infrastructure 2007 2027 $29,304 $178,680 Total $29,304 $178,680 Community Improvement Districts (CID). CIDs are an economic development tool established by the Kansas CID Act (KS.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. 67 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 5. OTHER INFORMATION (Continued) K. Tax Abatements (Continued) To establish a CID, the applicant first 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 lmpro\ement District (CID) 2020 Eligible Reimbursement Name Rate Start Expires Purpose Amount Assist with impro\ements to hotel South 9th Street 2.00% 3/1/2016 12/31/2037 and conference center $251,052 Assist with building of family Alley 1.00% 10/1/2019 9/30/2041 entertainment facility in downtown $13,454 Assist with ReYtilization of Downtown 1.00% 7/1/2019 6/30/2041 Downtown Corridor $14,487 Assist with building of downtown Downtown Hotel 1.00% 10/1/2019 9/30/2041 hotel - -Total $278,993 Neighborhood Revitalization Areas (NRA). NRAs are authorized under Kansas state statutes K.S.A. 12-117 and subject to City policy to spur investment and revitalization 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-year plan running from 2015-2019. It allows for a 10-year rebate 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, 2020 Note 5. OTHER INFORMATION (Continued) K. Tax Abatements (Continued) Property/Business Name Serio Guzman William & Mary Warhurst Holly Fain Ar1ene Cox Gloria Williams Michelle Rogan Samuel A. Rock Jessica A. Ziegler Ryan Murphy Rawy lnwstments LLC Lamont Outland Michelle Bunch Jennaine and Tykea Polk Mary Marshall Angela Fishburn Heritage at Hawthorne Partners, LLC Will & Mary Warhurst Donnie & Ramona Marrs TJTM, Inc. Troy Valcil Michelle Malone Timothy & Linda Rickman Ywtte Gelinas Char1es H Carroll Jr Trust Pestinger Enterprises LLC Latisha Pierce Tanya Shiehzadeh Robert & Brenda Bums Property Partners LLC AP Property Holdings, LLC Gregory Da1o1s Micheal Money Traniesh Byrd Mark Martin Li1o1ng Trust Matthew Snyder Doyle & Maureen Comfort Trust Jana Endsley Kanesha Samilton Maria E Padilla JK Webb Properties LLC Alan and Nancy Franzen Santa Fe Properties, LLC Rusty A Leister Living Trust Heritage at Hawthorne Partners II, LLC. Christopher Helm Christopher Helm Laurie Donmyer Eva Wright Foley Equipment Co. Mark Ritter Angelica Farris Christopher Vogel Christopher Helm Neighborhood Revitalization Act (NRA} Address 241 N. Front Street 1009 N. 8th Street 219 N. Front Street 1101 N. 10th Street 714 Park Street 204 Forest Awnue 200 Forest Awnue 1329 N. 4th Street 303 S. Santa Fe Awnue 227 S. Santa Fe Awnue 221 N. 2nd Street 207 N. Penn 157 N. Sewnth, 203 W. Ash, 205 W. Ash, 207 W . Ash & 209 W. Ash 1206 N. 7th Street 1219 N. 8th Street 937 N. 3rd Street 1219 N. 8th Street 134 S. Santa Fe Aw 2035 E. Iron #213C/105R/302R/202R/205R/006R/301RA/301 RB/001 R/002R/003R/004R/005R 853 Nawho 815 N. 2nd Street 719 E. Ash 1115 N. 8th Street 156-158 S. Santa Fe 2035 E. Iron Awnue, Unit #306R 705 N. 2nd Street 703 N. 2nd Street 1205 N. 4th Street 116 & 118 N. Santa Fe (2nd Floor Loft Apartments} 201 E. Iron Awnue 156-158 N. 11th Street 2035 E. Iron Awnue, Unit #206R 701 N. 2nd Street 2035 E. Iron #104R 2035 E Iron #304R 2035 E Iron #304R 1321 N. 3rd Street 214 W. Grand Awnue 810 N. 5th Street 120 S. Santa Fe Awnue 1413 Arapahoe 131 N. Santa Fe Awnue/128 S. Santa Fe Awnue 600 N. Santa Fe Awnue 715 N. 9th Street, Phase II 608 N. 11th Street 752 N. Broadway 255 N. Columbia 1200 N. 8th 2225 N. Ohio St 2035 E. Iron #108R 846 Choctaw Aw 2035 E. Iron #209R 619 N. 5th Street 69 2020 ~ Rebate Paid Res $ 32 Res 10 Res 49 Res 61 Res 44 Res 59 Res 15 Res 62 Res 83 Com 713 Res 105 Res 113 Res 128 Res 108 Res 108 Com 1,842 Res 165 Res 936 Res 6,461 Res 79 Res 4 Res 71 Res 116 Com 2,125 Res 1,565 Res 133 Res 129 Res 84 Com 818 Com 5,359 Res 280 Res 946 Res 165 Com 797 Res 529 Res 1,166 Res 229 Res 269 Res 307 Com 2,867 Res 202 Com 3,830 Com 2,137 Com 2,150 Res 152 Com 6,306 Res 186 Res 278 Com 16,750 Res 1,621 Res 311 Res 909 Com 806 $ 64,770 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2020 Note 5. OTHER INFORMATION (Continued) K. Subsequent Events On April 12, 2021, the City issued Series 2021-A general obligation internal improvement bonds in the amounts of $5,230,000. Proceeds from the bonds will be used to provide long-term financing for a portion of the costs of certain public improvements within the City and to retire a portion of the City's outstanding general obligation temporary notes. The City will make the first payment on the bonds on October 1, 2022 the last payment on October 1, 2041 . The interest rate on the bonds ranges from 2. 00% to 4.50%. Also on April 12, 2021, the City issued Series 2021-1 temporary notes in the amounts of $5,230,000. Proceeds from the notes will be used to provide interim construction financing of certain public improvements within the City. The maturity date of the temporary notes is May 1, 2022 and the interest rate on the notes is 2.00%. On January 30, 2020 the World Health Organization declared the Coronavirus outbreak as a "Public Health Emergency of International Concern" and on March 11 , 2020, declared it to be a pandemic. Actions were taken to help mitigate the spread of the virus, including social-distancing, quarantines and forced closures of certain types of public places and businesses. The coronavirus and actions taken to mitigate the spread of it have had and are expected to have an adverse impact on the economies and financial markets of many countries, including the geographical area in which the City operates. It is unknown how long the adverse conditions associated with the pandemic will last and what the complete financial effect will be to the City. Management cannot quantify the financial and other impacts to the City's financial position but believes a material impact is reasonably possible. 70 REQUIRED SUPPLEMENTARY INFORMATION CITY OF SALINA, KANSAS REQUIRED SUPPLEMENTARY INFORMATION OTHER POSTEMPLOYMENT BENEFITS Schedule of Changes in the City's Total OPEB Liability and Related Ratios Last Ten Fiscal Years* Total OPEB liability 2020 2019 2018 Sel'\1ce cost $ 231,391 $ 249,957 $ 226,762 Interest 150,552 125,877 128,578 Benefit paid [159,018] [157,465] [265,000] Economic/demographic gains/losses [255,426] Changes in assumptions 128,228 [186,344] 90,918 Net change in total OPES liability 95,727 32,025 181,258 Total OPEB liability -beginning 3,519,327 3,487,302 3,306,044 Total OPEB liability -ending $ 3,615,054 $ 3,519,327 $ 3,487,302 Covered payroll $25,163,639 $25,232,129 $24,740,225 Total OPEB liability as a percentage of 14.37% 13.95% 14.10% covered-employee payroll Actuarially determined contribution $ 159,018 $ 157,465 $ 265,000 Actual contribution $ 159,018 $ 157,465 $ 265,000 Contributions as a percentage of covered payroll 0.63% 0.62% 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 Schedule of Changes in the City's Total OPEB Liability and Related Ratios Last Ten Fiscal Years* Total OPEB liability 2020 2019 2018 Ser.ice cost $ 57,185 $ 52,863 $ 52,380 Interest 19,037 22,667 17,061 Effect of economic/demographic gains or losses 17,086 [95,243] 75,173 Effect of assumptions changes or inputs 37,368 7,614 [6,574] Benefit payments [39,627] [28,432] [30,368] Net change in total OPEB liability 91,049 [40,531] 107,672 Total OPEB liability -beginning 506,395 546,926 439,254 Total OPEB liability -ending $ 597,444 $ 506,395 $ 546,926 Covered pay roll $ 14,338,983 $ 13,991,543 $13,652,194 Total OPEB liability as a percentage of 4.17% 3.62% 4.01% covered-employee payroll Actuarially determined contribution $ 144,746 $ 144,746 $ 109,466 Actual contribution $ 144,746 $ 144,746 $ 109,466 Contributions as a percentage of covered payroll 1.01% 1.03% 0.80% *data became available with the inception of GASB 75 during fiscal year 2018, therefore 10 years of data is unavailable. 72 CITY OF SALINA, KANSAS REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED) KPERS PENSION PLAN Schedule of the City's Proportionate Share of the Net Pension Liability Last Ten Fiscal Years* 2015 2016 2017 2018 2019 City's proportion of the net pension liability Local 0.764% 0.761% 0.811% 0.790% 0.796% Police & Fire 2.258% 2.180% 2.191% 2.081% 2.074% City's proportionate share of the net pension liability Local $10,027,679 $11,770,699 $11,753,246 $11,014,328 $11,123,112 Police & Fire $16,395,794 $20,251,512 $20,546,882 $20,019,473 $20,993,820 City's cowred-employee payroll Local $12,931 ,197 $13,251 ,236 $13,548,056 $13,944,989 $14,366,294 Police & Fire $10,161,866 $ 10,730,033 $10,593,419 $10,441,055 $10,859,219 City's proportionate share of the net pension liability as a percentage of its its co'IA:lred-employee payroll Local 77.55% 88.83% 86.75% 78.98% 77.43% Police & Fire 161 .35% 188.74% 193.96% 191.74% 193.33% Plan fiduciary net position as a percentage of the total pension liability Local 71.98% 68.55% 72.15% 74.22% 75.02% Police& Fire 74.60% 69.30% 70.99% 71.53% 71.22% 2020 0.766% 2.038% $13,290,226 $25,135, 770 $14,948,415 $11,285,465 88.91% 222.73% 70.77% 66.81% *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. Schedule of the City's Contributions Last Ten Fiscal Years* 2015 2016 2017 2018 2019 2020 Contractually required contribution Local $ 1,256,217 $ 1,243,711 $ 1,179,745 $ 1,205,334 $ 1,328,915 $ 1,156,925 Police & Fire $ 2,527,995 $ 2,361,273 $ 1,986,933 $ 2,181,617 $ 2,497,473 $ 2,405,832 Contributions in relation to the contractually required contribution Local 1,256,217 1,243,711 1,179,745 1,205,334 1,328,915 1,156,925 Police & Fire 2,527,995 2,361,273 1,986,933 2,181,617 2,497,473 2,405,832 Contribution deficiency [excess] $ -$ -$ -$ -$ -$ City's co-.ered-employee payroll Local $13,251,236 $13,548,056 $13,944,989 $14,366,294 $14,948,415 $13,436,992 Police & Fire $10,730,033 $10,593,419 $10,441,055 $10,859,219 $11 ,285,465 $10,970,505 Contributions as a percentage of co-.ered employee payroll Local 9.48% 9.18% 8.46% 8.39% 8.89% 8.61% Police & Fire 23.56% 22.29% 19.03% 20.09% 22.13% 21 .93% *Data became available with the inception of GASB 68 during fiscal year 2015, therefore 10 years of data is unavailable. 73 CllY OF SALINA, KANSAS COMBINING STATEMENTS-NONMAJOR FUNDS NONMAJOR SPECIAL REVENUE 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 district fund -State law allows businesses within an area to voluntarily establish an improvement district. This fund is used to account for the assessments made on the District. All revenues are to be used within the Business Improvement District. 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, which must be used for park maintenance and improvements. Special alcohol fund -To account for liquor tax revenues, which must be used for programs, which address prevention, education or intervention for drug and alcohol abuse. 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 for 2.34% of the .75 cent sales tax designated for economic Development purposes. Downtown TIF District #1 fund -To account for revenues and expenditures related to the Tax Increment Financing District that was formed as part of the Downtown Revitalization Project. South 9th CID fund -To account for incremental sales tax revenues received and disbursed to the developers as part of the Community Improvement District formed in 2015. Downtown CID fund -To account for incremental sales tax revenues received and disbursed to the developers as part of the Community Improvement District formed in 2017. Alley CID fund -To account for incremental sales tax revenues received and disbursed to the developers as part of the Community Improvement District formed in 2016. Downtown Hotel CID fund -To account for incremental sales tax revenues received and disbursed to the developers as part of the Community Improvement District formed in 2017. STAR Bonds Subproject fund -To track disbursements and reimbursements associated with the Stiefel Theatre's STAR Bond State Grants fund -To account for grant revenue and expenditures received from the State of Kansas. 911 communications fund -To account for transitioning the receipt and administration of 911 fees to the City from the Kansas Department of 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 capital fund -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, which are 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 DARE. program. 74 CITY OF SALINA, KANSAS COMBINING STATEMENTS -NONMAJOR FUNDS NONMAJOR SPECIAL REVENUE FUNDS -CONTINUED 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. Special assessments escrow fund -To account for property owners' prepayment on outstanding special assessments. Court bond and restitution fund -To account for bonds and restitution remitted to the court and awaiting court orders for distribution. Police investigation account fund -To account for monies held by the police department for use in investigations. Citizenship fund -To account for donations received and used for the citizenship fund. DTF local fund -To account for revenues and expenditures related to the sale of assets acquired during drug enforcement activities as they relate to local cases. Expenses are limited to equipment and training for the Drug Task Force. DTF reserve fund -To account for revenues and expenditures related to the sale of assets acquired during drug enforcement activities as they related to federal cases placed in a reserve for future use. Beechcraft remediation settlement fund -To account for revenues and expenditures related to the bankruptcy of Beechcraft and the former Schilling Airforce Base remediation case. Bail bond escrow fund -To account for funds being held in escrow for bonds issued by Municipal Court. Federal CARE grant fund -To account for revenue and expenses associated with the CARE Grant. Police Department federal forfeiture funds -To account for revenue and expenses associated with federal Equitable Sharing Program funds. Homeowners' assistance fund -To receive donations and/or other funds to assist low and moderate income persons in improving their homes. Private grants fund -To account for revenues and expenditures related to grants received from private entities with specific purposes. Animal shelter donations fund -To accumulate donations and account for expenses to benefit the animal shelter. NONMAJOR PERMANENT FUNDS Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not principal, may be used for purposes that support the reporting government's programs. 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 tricentennial in the year 2076. 75 CITY OF SALINA, KANSAS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31 , 2020 Total Total Nonmajor Nonmajor Nonmajor Debt Special Revenue Permanent Service Funds Funds Fund ASSETS Cash and investments $ 6,696,113 $ 542,755 $ 800 Receivables Accounts 3287 Total assets $ 6,699,400 $ 542,755 $ 800 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 221 ,525 $ -$ Due to other funds 31,989 Total liabilities 253,514 Fund balances: Restricted 694,713 Committed 5,561,914 542,755 Assigned 189,259 Total fund balances 6,445,886 542,755 Total liabilities and fund balances $ 6,699,400 $ 542,755 $ See independent auditor's report on the financial statements. 76 - 800 800 800 Total Nonmajor Governmental Funds $ 7,239,668 3,287 $ 7,242,955 $ 221,525 31,989 253,514 695,513 6,104,669 189,259 6,989,441 $ 7,242,955 CITY OF SALINA, KANSAS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2020 Total Total Nonmajor Total Nonmajor Nonmajor Debt Nonmajor Special Revenue Pennanent Service Governmental Funds Funds Fund Funds REVENUES Taxes $ 1,126,829 $ -$ -$ 1,126,829 Intergovernmental 1,219,866 315,372 1,535,238 Charges for services 108,135 13,282 121,417 Licenses and permits 5,070 5,070 Investment revenue 16,764 1,972 2,400 21,136 Donations 129,193 129,193 Miscellaneous 3,518,022 59,555 3,577,577 Total revenues 6,123,879 15,254 377,327 6,516,460 EXPENDITURES Current Culture and recreation 1,207,431 1,207,431 Public safety 625,362 625,362 Public health and sanitation 597,804 597,804 Planning and development 376,545 376,545 Miscellaneous 35 1,300,626 1,300,661 Debt service Interest and other charges 15,496 15,496 Capital outlay 1,741,294 1,741,294 Total expenditures 4,548,436 35 1,316,122 5,864,593 Excess (deficiency] of revenues over (under] expenditures 1,575,443 15,219 [938,795] 651,867 Other financing sources (uses] Transfers in 1,241,413 1,241,413 Total other financing sources (uses] 1,241,413 1,241,413 Net change in fund balance 2,816,856 15,219 [938,795] 1,893,280 Fund balance -Beginning of year 3,203,386 527,536 939,595 4,670,517 Prior period adjustment 425,644 425,644 Fund balance -Beginning of year, restated 3,629,030 527,536 939,595 5,096,161 Fund balance -End of year $ 6,445,886 $542,755 $ 800 $ 6,989,441 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, 2020 Business Special Community Sales Tax Downtown Bicentennial Improvement Neighborhood Parks& Special Development Economic TIF Center ~ .E!!!s. ~ A!li2ll2l ~ la:a:IISUU!J!l!nl ~ ASSETS Cash and investments $ 406,690 $ 11,017 $ 33,821 $ 478,383 $ 234 $ 186,307 $ 720,798 $ 709,533 Receivables Accounts 3287 Total assets $ 406.690 $ 14 304 $ 33.821 $ 478.383 $ 234 $ 186 307 $ 720.798 $ 709,533 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 89,049 $ $ $ $ $ $ 5,112 $ Due to other funds Total liabilities 89,049 5112 Fund balance: Restricted 14,304 465,773 234 186,307 Committed 317,641 33,821 715,686 709,533 Assigned 12 610 Total fund balance [deficit] 317641 14304 33,821 478,383 234 186 307 715686 709,533 Total liabilities and fund balances $ 406,690 $ 14304 $ 33,821 $ 478.383 $ 234 $ 1B6 307 $ 720.798 $ 709,533 South Downtown ~ l.!Q $ 22,388 $ 286,564 $ $ 22 388 $ 286.564 $ $ 20,691 $ $ 20691 1,697 286,564 1,697 286,564 $ 22,388 $ 286,564 $ Alley Downtown STAR Bonds State ~ ~ Subpmlects Grants 3,742 $ 18,719 $ 2,000,000 $ 6,493 3,742 $ 18719 $ 2,000,000 $ 6,493 $ $ $ 3,742 18,719 2,000,000 6,493 3 742 18 719 2,000.000 6493 911 C2mmuai~tiQ:D1i $ $ $ 421,418 421,418 79,426 79.426 165,343 176,649 341992 $ $ $ Kenwood Cove l&.2il2! 195,961 195,961 3,571 3571 192,390 192,390 Special Law Police Enforcement Grants $ 82 $ 3,479 $ 82 $ 3.479 s $ 82 3,479 82 3479 3.742 $ 18.719 $ 2,000,000 $ 6.493 $ 421.418 $ 195,961 ,aS ___ ..;8:::,.2 ~$ __ ~3-◄~7~9 See independent auditor's report on the financial statements. 788 CITY OF SALINA, KANSAS COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS (Continued) For the Year Ended December 31, 2020 Police War Federal Department Federal DARE Memorial Arts& CARE Federal HomeOYJners' Private ~ ~ Maintena!J~ ~ ~ Fgrfeity(t E!.lll!.ii Alll!l= ~ ASSETS Cash and invesbnents $ $ 14,031 $ 30,843 $ 103,587 $ 26,141 $ 99 $ 19,041 $ 1,954 Receivables Accounts Total assets $ $ 14 031 $ 30843 $ 103 587 $ 26141 $ 99 $ 19041 $ 1954 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 16,440 $ 825 $ $ 3,521 $ $ $ $ Due to other funds 31,989 Total liabilities 48429 825 3521 Fund balance: Restricted 26,141 1,954 Committed [48,429] 13,206 30,843 100,066 99 19,041 Assigned Total fund balance [deficit] [48,429) 13206 30 843 100,066 26141 99 19 041 1954 Total liabilities and fund balances $ $ 14 031 $ 30 843 $ 103,587 $ 26141 $ 99 $ 19041 $ 1954 Animal Special Sheller Assessments ~ ~ $ 560,731 $ 116,682 $ $ 560,731 $ 116,682 $ $ 1,590 $ $ 1,590 559,141 116,682 559141 116,682 $ 560731 $ 116.682 $ Court Police Beech craft Bond and Investigation DTF DTF Remediation Restitution ~ Citizenship Lwl Reserve ~ 31,394 $ 3,384 $ 39,757 $ 10,076 s 41,663 $ 189,966 31,394 $ 3384 $ 39757 $ 10,076 $ 41.663 $ 189,966 $ $ 1,000 $ 300 $ $ 1000 300 31,394 3,384 38,757 9,776 41,663 189,966 31,394 3,384 38,757 9776 41663 189 966 31,394 $ 3,384 $ 39,757 $ 10,076 $ 41,663 $ 189,966 See independent auditor's report on the financial statements. 79 Bail Bond ~ ~ $ 1,135 s 6,696,113 3287 $ 1.135 $ 6,699,400 $ $ 221,525 31989 253,514 694,713 1,135 5,561,914 189,259 1135 6,445,886 $ 1135 $ 6,699.400 CITY OF SALINA, KANSAS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31, 2020 Business Special Community Sales Tax Downtown Bicentennial Improvement Neighborhood Parks & Special Development Economic TIF l&n!fil District Park ~ 8!£21!2! ~ Dem2~meot !2ifil!i£W. Revenues Taxes $ $ $ -$ -$ $ $ 350,004 $ 291,557 Intergovernmental 171,982 171,982 Charges for services 80,807 Licenses and permits 5,070 Investment revenue 2,443 Donations Miscellaneous 175,000 ------1,833 Total Revenues 175,000 80,807 5,070 171,982 171,982 351,837 294,000 Expenditures Current Culture and recreation 713,405 Public safety Public health and sanitation 171,982 Planning and development 73,176 20,109 Capital ouUay 42,465 344,714 Total Expenditures 713,405 73176 42,465 171 ,982 344,714 20109 Excess [deficiency] of revenues over [under) expendillres [538,405] 7,631 5,070 129,517 7,123 273,891 Other financing sources [uses) Transfers in 656,063 ------Total other financing sources [uses) 656 063 ------ Net change in fund balance 117,658 7631 5,070 129,517 7123 273,891 Fund balance, begiming of year 199,983 6,673 28,751 348,866 234 186,307 708,563 435,642 Prior peliod adjustment Fund balance, beginning of year, restated 199,983 6,673 28,751 348,866 ~ 186,307 708,563 435,642 Fund balance, end of year $ 317,641 $ 14 304 $ 33,821 ~ ~ $ 186,307 $ 715,686 $ 709,533 South Downtown 9th CID Q.Q $ 216,895 $ 232,549 $ 33 685 11,732 67 817 228 660 301,051 228,237 14,487 228,237 14,487 423 286,564 423 286,564 1,274 1,274 $ 1697 $ 286,564 $ Kenwood Special Alley Downtown STAR Bonds State 911 Cove Law CID ~ Subprojects Grants Communications Capital Enforcement 17,176 $ 18,648 $ $ $ $ $ 122,055 477,372 20 71 1,646 3,219,786 17,196 18719 3,219,786 122,055 479 018 586,331 13,454 1,219.J86 122,055 11149 13454 1,219,786 122.055 586.331 11,149 3,742 18,719 2,000,000 (107,313] (11,149) 68 350 68,350 3,742 18 719 2,000,000 f107,313J 57 201 6,493 449,305 135,189 6,493 449 305 135,189 3,742 $ 18,719 $ 2,000,000 $ 6,493 $ 341,992 $ 192,390 $ See independent auditor's report on the financial statements. 8080 82 82 82 Ponce Grants $ 3,479 3,479 3479 3479 $ 3,479 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, 2020 , Police War Federal Department Federal DARE Memorial Arts& CARE Federal Homeowners' Private Grants Donations M~iolenance ~ Grant Forfeiture Funds ~ Grants Revenues Taxes $ $ $ $ $ $ $ $ Intergovernmental 222,996 Charges for services 27,328 Licenses and permits Investment revenue 113 Donations Miscellaneous 12,175 2,196 Total Revenues 222,996 ~ 113 27,328 2196 ---- Expenditures Current Culture and recreation 494,026 Public safety Public health and sanitation 312,550 Planning and development 27,082 Capital outlay Total Expenditures 312,550 27,082 494,026 Excess [deficiency] of revenues over [under] expenditures (89,554} ~ 113 (466,698} 2,196 Other financing sources [uses] Transfers In 517,000 Total other financing sources [uses] ---517,000 --- Net change in fund balance (89,554} (14,907} 113 50,302 2,196 Fund balance, beginning of year 41,125 28,113 30,730 49,764 26,141 99 16,845 1,954 Prior period adjustment Fund balance, beginning of year, restated 41,125 ~ 30,730 49764 ~ 99 16,845 1,954 Fund balance, end of year $ (48,429) ~ $ 30,843 $ 100,066 $ 26,141 $ 99 $ 19,041 $ 1,954 Animal Special Shelter Assessments Donations ~ $ $ $ 50,000 121,160 171,160 113,272 113,272 57 888 57,888 501,253 116,682 501,253 116682 $ 559,141 $ 116,682 $ Court Police Beechaaft Bail Bond and Investigation DTF DTF Remediation Bond Restitution Account ~ ~ Reserve ~ Escrow $ $ -$ $ $ $ 11,055 698 8,033 8867 13,265 5350 8867 11,055 13 265 5,350 8,731 29,031 10,000 1125 1125 29,031 10000 8,867 9930 [15,766] [4,650] 8,731 8,867 9,930 [15,766] [4,650] 8,731 22,527 3,383 28,827 25,542 46,313 181,235 1135 22,527 3,383 28,827 25,542 46 313 181.235 1,135 31,394 $ 3,384 $ 38,757 $ 9 776 $ 41,663 $ 189,966 $ 1135 See independent auditor's report on the financial statements. 81 I2!fill! $ 1,126,829 1,219,866 108,135 5,070 16,764 129,193 3,518,022 6,123,879 1,207,431 625,362 597,804 376,545 1 741,294 4 548436 1,575,443 1,241,413 1 241 413 2,816,856 3,203,386 425644 3,629,030 $ 6,445,886 ASSETS Cash and investments Total assets LIABILITIES AND FUND BALANCES Liabilities Accounts payable Total liabilities Fund balances Committed Total liabilities and fund balances CITY OF SALINA, KANSAS COMBINING BALANCE SHEET NONMAJOR PERMANENT FUNDS December 31, 2020 Cemetery Mausoleum Tricentennial Endowment Endowment Commission Total $ 534,767 $ 2,071 .;:;..$ _ ____:;5;.,.,;;,9~1.:...7 $ 542,755 $ 534,767 $ 2,071 __ $ __ 5.:...,9_1_7 $ 542,755 ..;..$ ____ -..;..$ ____ -..:...$ ____ -_$ ___ _ 534,767 2,071 5,917 542,755 $ 534,767 $ 2,071 _$ _ ____;5;,.:.;,9;..;1...;,_7 $ 542,755 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, 2020 Cemetery Mausoleum Tricentennial Endowment Endowment Commission Revenues Charges for services $ 13,282 $ -$ Investment revenue 1,942 8 Total revenues 15,224 8 Expenditures Miscellaneous 35 Total expenditures 35 Net change in fund balance 15,189 8 Fund balances -beginning of year 519,578 2,063 Fund balances -end of year $ 534,767 $ 2,071 $ See independent auditor's report on the financial statements. 83 - 22 22 22 5,895 5 917 Total $ 13,282 1,972 15,254 35 35 15,219 527,536 $ 542?55 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, 2020 Budgeted Amounts Actual Original Revenues Miscellaneous $ 175,000 $ -$ Total revenues 175,000 Expenditures Culture and recreation 713,405 Total expenditures 713,405 Excess [deficiency] of revenues over [under] expenditures [538,405] Other financing sources [uses] Transfers in 656,063 Total other financing sources [uses] 656,063 Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses] 117,658 Unreserved fund balance, January 1 199,983 Unreserved fund balance/GAAP fund balance December 31 $ 317,641 $ -$ See independent auditor's report on the financial statements. 84 Final - 740,000 740,000 [740,000] 830,000 830,000 90,000 137,177 227,177 Variance with Final Budget Positive [Negative] $ 175,000 175,000 26,595 26,595 201,595 [173,937} [173,937} 27,658 62,806 $ 90,464 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, 2020 Budgeted Amounts Actual Original Revenues Charges for services $ 79,532 $ 90,500 $ Total revenues 79,532 90,500 Expenditures Planning and development 73,176 90,500 Total expenditures 73,176 90,500 Excess [deficiency] of revenues over [under] expenditures 6,356 Unreserved fund balance, January 1 4,661 4,461 Unreserved fund balance, December 31 11,017 $ 4,461 $ Reconciliation to GAAP Accounts receivable 3,287 GAAP Fund Balance, December 31 $ 14,304 See independent auditor's report on the financial statements. 85 Final 90,500 90,500 90,500 90,500 4,461 4,461 Variance with Final Budget Positive [Negative] $ [10,968] [10,968] 17,324 17,324 6,356 200 $ 6,556 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, 2020 Budgeted Amounts Actual Original Revenues Licenses and permits $ 5,070 $ 3,000 $ Total revenues 5,070 3,000 Expenditures Capital outlay 10,000 Total expenditures 10,000 Excess [deficiency] of revenues over [under] expenditures 5,070 [7,000] Unreserved fund balance, January 1 28,751 28,751 Unreserved fund balance/GAAP fund balance December 31 $ 33,821 $ 21,751 $ See independent auditor's report on the financial statements. 86 Final 3,000 3,000 10,000 10,000 [7,000] 28,751 21,751 Variance with Final Budget Positive [Negative] $ 2,070 2,070 10,000 10,000 12,070 $ 12,070 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, 2020 Budgeted Amounts Actual Original Revenues Intergovernmental $ 171,982 $ 197,740 $ Investment revenue 100 Total revenues 171,982 197,840 Expenditures Capital outlay 55,075 194,000 Total expenditures 55,075 194,000 Excess [deficiency] of revenues over [under] expenditures 116,907 3,840 Unreserved fund balance, January 1 348,866 348,866 Unreserved fund balance, December 31 465,773 $ 352,706 $ Reconciliation to GAAP Current year encumbrances 12,610 GAAP Fund Balance, December 31 $ 478,383 See independent auditor's report on the financial statements. 87 Final 197,740 100 197,840 194,000 194,000 3,840 348,866 352,706 Variance with Final Budget Positive [Negative] $ [25,758] [100] [25,858] 138,925 138,925 113,067 $ 113,067 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, 2020 Budgeted Amounts Actual Original Revenues Intergovernmental $ 171,982 $ 197,740 $ Total revenues 171,982 197,740 Expenditures Public health and sanitation 171,982 197,740 Total expenditures 171,982 197,740 Excess [deficiency] of revenues over [under] expenditures Unreserved fund balance, January 1 234 234 Unreserved fund balance/GAAP fund balance December 31 $ 234 $ 234 $ See independent auditor's report on the financial statements. 88 Final 197,740 197,740 197,740 197,740 234 234 Variance with Final Budget Positive [Negative) $ [25,758] [25,758] 25,758 25,758 $ Cl1Y OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL (NON -GMP BASIS) SALES TAX ECONOMIC DEVELOPMENT FUND For the Year Ended December 31, 2020 Budgeted Amounts Actual Original Revenues Taxes $ 350,004 $ 338,228 $ Miscellaneous 1,833 2,000 Total revenues 351,837 340,228 Expenditures Capital outlay 344,714 375,000 Total expenditures 344 714 375,000 Excess [deficiency] of revenues over [under] expenditures 7,123 [34,772] Unreserved fund balance, January 1 708,563 708,563 Unreserved fund balance/GMP fund balance December 31 $ 7151686 $ 673,791 $ See independent auditor's report on the financial statements. 89 Final 338,228 2,000 340,228 375,000 375,000 [34,772] 708,563 673,791 Variance with Final Budget Positive [Negative] $ 11,776 [167] 11,609 30,286 30,286 41,895 $ 41,895 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL {NON -GAAP BASIS) ARTS & HUMANITIES FUND Revenues Charges for services Miscellaneous Total revenues Expenditures Culture and recreation Total expenditures Excess [deficiency] of revenues over [under] expenditures Other financing sources [uses] Transfers in Total other financing sources [uses] Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses] Unreserved fund balance, January 1 For the Year Ended December 31, 2020 Budgeted Amounts $ Actual 27,328 27,328 494,026 494,026 [466,698] 517,000 517,000 50,302 49,764 $ Original 320,400 78,000 398,400 1,064,364 1,064,364 [665,964] 645,500 645,500 [20,464] 49,764 $ Final 320,400 78,000 398,400 1,064,364 1,064,364 [665,964] 645,500 645,500 [20,464] 49,764 Variance with Final Budget Positive [Negative] $ [293,072] [78,000] [371,072) 570,338 570,338 199,266 (128,500) (128,500) 70,766 Unreserved fund balance/GAAP fund balance December 31 $ 100,066 $ 29,300 $ 29,300 _$ _ ___,;,_;70;..:.;,7...;;6 .... 6 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, 2020 Budgeted Amounts Actual Original Revenues Taxes Real estate taxes $ 3,010,914 $ 3,337,038 Delinquent taxes 47,317 55,000 Motor vehicle taxes 325,274 314,918 Special assessments 1,511,279 1,546,000 Miscellaneous 1,744,792 Total revenues 4,894,784 6,997,748 Expenditures Debt Service Principal retirement 5,163,995 3,196,000 Interest and other charges 1,937,284 1,327,000 Special assessments 1,437,000 Miscellaneous 53,301 Total expenditures 7,154,580 5,960,000 Excess [deficiency] of revenues over [under] expenditures !2,259,796) 1,037,748 Other financing sources [uses] Transfers in 1,629,188 2,000,000 Bond proceeds 1,206,882 Total other financing sources [uses] 2,836,070 2,000,000 Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses] 576,274 3,037,748 Unreserved fund balance, January 1 1,089,325 1,089,325 Unreserved fund balance, December 31 1,665,599 $ 4,127,073 Reconciliation to GAAP Taxes receivable 3,121,345 Deferred revenue [3,062,827) GAAP Fund Balance, December 31 $ 1,724,117 See independent auditor's report on the financial statements. 91 Final $ 3,337,038 55,000 314,918 1,546,000 1,744,792 6,997,748 3,196,000 1,327,000 1,437,000 5,960,000 1,037,748 2,000,000 2,000,000 3,037,748 1,089,325 $ 4,127,073 Variance with Final Budget Positive [Negative] $ [326,124] [7,683] 10,356 [34,721] [1,744,792] [2,102,964] [1,967,995] [610,284] 1,437,000 153,301 ) 11,194,580) [3,297,544) [370,812] 1,206,882 836,070 [2,461,474] $ [2,461,474) 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, 2020 Budgeted Amounts ~ Original Revenues Charges for services $ 3,289,574 $ 3,450,000 Miscellaneous 32,720 Total revenues 3,322,294 3,450,000 Expenditures Public works 2,520,556 3,109,733 Total expenditures 2,520,556 3,109,733 Excess [deficiency] of revenues over [under] expenditures 801 ,738 340,267 Other financing sources [uses) Transfers [out] [659,200] [417,350] Total other financing sources [uses) [659,200] [417,350] Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses] 142,538 [77,083] Unreserved fund balance, January 1 4,448,687 4,512,595 Unreserved fund balance, December 31 $ 4,591,225 $ 4,435,512 See independent auditor's report on the financial statements. 92 Final $ 3,450,000 3,450,000 3,109,733 3,109,733 340,267 [417,350] [417,350] [77,083] 4,512,595 $ 4,435,512 Variance with Final Budget Positive (Negative] $ [160,426] 32,720 [127,706] 589,177 589,177 461,471 [241,850] [241 ,850] 219,621 [63,908] $ 155,713 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, 2020 Budgeted Amounts Actual Original Revenues Charges for services $ 20,071,807 $ 21,976,800 Investment revenue 90,000 Miscellaneous 8,714 5,000 Total revenues 20,080,521 22,071,800 Expenditures Public works 10,463,369 17,112,294 Total expenditures 10,463,369 17,112,294 Excess [deficiency] of revenues over [under) expenditures 9,617,152 4,959,506 Other financing sources [uses] Transfers [out] [6,576,717] [3,889,750] Total other financing sources [uses] {6,576,717] [3,889,750) Excess [deficiency) of revenues and other sources over [under] expenditures and other [uses] 3,040,435 1,069,756 Unreserved fund balances, January 1 13,642,411 12,603,880 Unreserved fund balances, December 31 $ 16,682,846 $ 1316731636 See independent auditor's report on the financial statements. 93 Final $ 21,976,800 90,000 5,000 22,071 ,800 17,112,294 17,112,294 4,959,506 [3,889,750] [3,889,750) 1,069,756 12,603,880 $ 13,6731636 Variance with Final Budget Positive [Negative] $ [1 ,904,993] [90,000] 3 714 [1,991,279] 6,648,925 6,648,925 4,657,646 (2,686,967) [2,686,967] 1,970,679 1,038,531 $ 31009,210 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, 2020 Budgeted Amounts Actual Original Final Revenues Charges for services $ 3,292,501 $ -$ 3,450,000 Miscellaneous 49 Total revenues 3,292,550 3,450,000 Expenditures Public works 2,371,205 3,356,138 Total expenditures 2,371,205 3,356,138 Excess [deficiency] of revenues over [under] expenditures 921,345 93,862 Other financing sources [uses] Transfers [out] [497,350] [417,350] Total other financing sources [uses] [497,350] [417,350] Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses] 423,995 [323,488] Unreserved fund balance, January 1 1,725,597 1,373,911 Unreserved fund balances, December 31 $ 2,149,592 $ -$ 1,050,423 See independent auditor's report on the financial statements. 94 Variance with Final Budget Positive [Negative] $ [157,499] 49 [157,450] 984,933 984,933 827,483 [80,000] [80,000) 747,483 351,686 $ 1,099,169 CllY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET ASSETS -BUDGET AND ACTUAL (NON -GMP BASIS) GOLF COURSE FUND For the Year Ended December 31, 2020 Budgeted Amounts Actual Original Revenues Charges for services $ 581,233 $ 928,400 $ Investment revenue 350 Miscellaneous 101149 Total revenues 682,382 928,750 Expenditures Recreation 756,004 916,971 Total expenditures 756,004 916,971 Excess [deficiency] of revenues over [under] expenditures [73,622] 11 779 Other financing sources [uses] Transfers in 100,000 Total other financing sources [uses] 100,000 Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses] 26,378 11,779 Unreserved fund balance, January 1 21,709 21,709 Unreserved fund balances, December 31 $ 48,087 $ 33,488 $ See independent auditor's report on the financial statements. 95 Final 928,400 350 928,750 916,971 916,971 11,779 11,779 21,709 33,488 Variance with Final Budget Positive [Negative] $ [347,167] [350] 101149 (246,368] 160,967 160,967 [85,401] 100,000 100,000 14,599 $ 14,599 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 , 2020 Budgeted Amounts Actual Original Revenues Charges for services $ 449,926 $ 449,926 $ Investment revenue 2,500 Miscellaneous 3,000 Total revenues 449,926 455,426 Expenditures General government 370,837 430,418 Total expenditures 370,837 430,418 Excess [deficiency] of revenues over [under] expenditures 79,089 25,008 Unreserved fund balance, January 1 1,062,930 933,944 Unreserved fund balances, December 31 $ 1,142,019 $ 958,952 $ See independent auditor's report on the financial statements. 96 Final 449,926 2,500 3,000 455,426 430,418 430,418 25,008 933,944 958,952 Variance with Final Budget Positive [Negative) $ [2,500] [3,000) [5,500] 59,581 59,581 54,081 128,986 $ 183,067 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL (NON -GAAP BASIS) HEAL TH INSURANCE FUND For the Year Ended December 31 , 2020 Budgeted Amounts Actual Original Final Revenues Charges for services $ 6,535,830 $ 7,523,584 $ 7,523,584 Investment revenue 5,000 5,000 Miscellaneous 36,427 25,000 25,000 Total revenues 6,572,257 7,553,584 7,553,584 Expenditures General government 5,544,560 6,820,010 6,820,010 Total expenditures 5,544,560 6,820,010 6,820,010 Excess [deficiency] of revenues over [under] expenditures 1,027,697 733,574 733,574 Unreserved fund balance, January 1 2,188,453 2,188,453 2,188,453 Unreserved fund balances, December 31 $ 3,216,150 $ 2,9221027 $ 2,922,027 See independent auditor's report on the financial statements. 97 Variance with Final Budget Positive [Negative] $ [987,754] [5,000] 11 427 [981,327) 1,275,450 1,275,450 294,123 $ 294,123 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, 2020 Budgeted Amounts Actual Original Final Revenues Charges for services $ 1,267,477 $ 1,498,644 $ 1,498,644 Investment revenue 40 40 Miscellaneous 5,753 2,500 2,500 Total revenues 1,273,230 1,501 ,184 1,501,184 Expenditures General government 1,194,150 1,546,186 1,546,186 Total expenditures 1,194,150 1,546,186 1,546,186 Excess [deficiency] of revenues over [under] expenditures 79,080 [45,002] [45,002] Other financing sources [uses] Transfers in 80,000 80,000 80,000 Total other financing sources [uses] 80,000 80,000 80,000 Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses) 159,080 34,998 34,998 Unreserved fund balance, January 1 154,658 154,658 154,658 Unreserved fund balance, December 31 $ 313,738 $ 189,656 $ 189,656 See independent auditor's report on the financial statements. 98 Variance with Final Budget Positive [Negative] $ [231,167] [40] 3,253 [227,954) 352,036 352,036 124,082 124,082 $ 124,082 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, 2020 Workers' Compensation Health ASSETS Reserve Insurance Current assets: Cash and investments $ 1,142,019 $3,216,251 Inventory and prepaid supplies Total current assets 1,142,019 3,216,251 Capital assets: Capital assets Less: accumulated depreciation Total capital assets Total assets 1,142,019 3,216,251 Deferred outflows of resources: KPERS OPES deferred outflows of resources Pension deferred outflows of resources Total deferred outflows of resources Total assets and deferred outflows of resources $ 1,142,019 $3,216,251 Liabilities: Current liabilities (payable from current assets}: Accounts payable $ -$ 100 Current portion of compensated absences payable Current portion of accrued claims payable 183,446 605,000 Total current liabilities (payable from current assets} 183,446 605,100 Noncurrent liabilities: Compensated absences payable Accrued claims payable 263,049 Net KPERS OPES obligation Net pension liability Total noncurrent liabilities 263,049 Total liabilities 446,495 605,100 Deferred inflows of resources KPERS OPES deferred inflows of resources Pension deferred inflows of resources Total deferred inflows of resources Total liabilities and deferred inflows of resources $ 446,495 $ 605,100 Net Position Invested in capital assets, net of related debt $ -$ - Unrestricted 695,524 2,611,151 Total net position $ 695,524 $2,611,151 See independent auditor's report on the financial statements. 100 Total Internal Central Service Garage Funds $359,389 $4,717,659 101,219 101,219 460,608 4,818,878 168,234 168,234 153,963 153,963 14,271 14,271 474,879 4,833,149 2,507 2,507 47,470 47,470 49,977 49,977 $524,856 $4,883,126 $ 45,650 $ 45,750 13,919 . 13,919 788,446 59,569 848,115 16,382 16,382 263,049 8,723 8,723 187,907 187,907 213,012 476,061 2721581 1,324,176 1,251 1,251 8,395 8,395 9,646 9,646 $282,227 $1,333,822 $ 14,271 $ 14,271 228,358 3,535,033 $242,629 $3,549,304 CITY OF SALINA, KANSAS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION INTERNAL SERVICE FUND For the Year Ended December 31, 2020 Workers' Compensation Health Central Reserve Insurance Garage Operating revenues Charges for services $ 449,926 $ 6,535,830 $ 1,267,477 Miscellaneous 361427 5,752 Total operating revenues 449,926 6,572,257 1,273,229 Operating expenses General government 505,760 5,660,142 1,225,572 Depreciation 362 Total operating expenses 505,760 5,660,142 1,225,934 Operating income [loss] [55,834] 912,115 47,295 Nonoperating revenues [expenses] Investment revenue Total other operating revenues [expenses] Income [loss] before transfers [55,834] 912,115 47,295 Transfers from [to] other funds Transfers in 80,000 Total transfers 80,000 Change in net position [55,834] 912,115 127,295 Net position, January 1 751,358 1,699,036 115,334 Net position, December 31 $ 695,524 $ 2,611,151 $ 242,629 See independent auditor's report on the financial statements. 101 Total Internal Service Funds $ 8,253,233 42,179 8,295,412 7,391,474 362 7,391,836 903,576 903,576 80,000 80,000 983,576 2,565,728 $ 3,549,304 CITY OF SALINA, KANSAS COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended December 31, 2020 Workers' Compensation Health Reserve Insurance Cash flows from operating activities Cash received from customers and users $ 584,849 $6,651,412 Cash paid to suppliers of goods or services [506,685] [5,660,042] Cash paid to employees Other operating receipts 36,427 Net cash provided by [used in] operating activities 78,164 1,027,797 Cash flows from investing activities Interest received Cash flows from noncapital financing activities Transfers in Net cash provided by [used in] noncapital financing activities Net increase [decrease] in cash and cash equivalents 78,164 1,027,797 Cash and cash equivalents, January 1 1,063,855 2,188,454 Cash and cash equivalents, December 31 $ 1,142,019 $3,216,251 See independent auditor's report on the financial statements. 102 Total Internal Central Service Garage Funds $1,267,477 $8,503,738 [919,219] [7,085,946] [274,765] [274,765] 5,752 42,179 79,245 1,185,206 80,000 80,000 80,000 80,000 159,245 1,265,206 200,144 3,452,453 $ 359,389 $4,7171659 CITY OF SALINA, KANSAS COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS (Continued) For the Year Ended December 31, 2020 Reconciliation of operating [loss] income to net cash provided by [used in] operating activities Workers' Compensation Health Reserve Insurance Central Garage Total Internal Service Funds Operating income [loss] $ [55,834] $ 912,115 $ 47,295 $ 903,576 Adjustments to reconcile operating income [loss] to net cash provided by [used in] operating activities Depreciation expense [Increase] decrease in inventory [Increase] decrease in deferred outflows Increase [decrease] in accounts payable Increase [decrease] in accrued compensated absences Increase [decrease] in net pension liability Increase [decrease] in KPERS OPEB liability Increase [decrease] in claims payable Increase [decrease] in deferred inflows [925] 100 134,923 115,582 362 26,673 [24,376] 165 [1 ,145] 31,639 [1,405] 37 362 26,673 [24,376) [660] [1,145] 31,639 [1,405] 250,505 37 Net cash provided by [used in] operating activities $ 78,164 $ 1,027,797 $ 79,245 $ 1,185,206 See independent auditor's report on the financial statements. 103 STATISTICAL SECTION Schedule 1 City of Sanna, Kansas Net Position by Component Last Ten Fiscel Years (aoaual basi& c,f aocolmf'lg) (In OOO'a) Fiscal Year = 19.ll !Qll 2014 ~ :ill§. ~ ~ = ~ Amount ,. Amount ... Amount ,. Amount ,. Amount ,. Amount ,. Amount ,. Amount ,. Amount ,. Amount ,. Governmental activities Net Investment in capital --$109,289 93% $112,929 ..... $116,585 90% $115,589 . .,. $ 130,401 122" $ 124,835 108% $129,921 105% $144,848 109% $151,527 110% 143,559 100% Restricted 1,712 ,,. 1,082 ,,. 1,210 ,,. 876 ,,. 1,224 ,,. 1,736 ,,. 2,012 2" 2,368 2" 1,670 ,,. 2,2fi1 2" Unrestricted ~ ,,. ~ ,,. ~ .,. --11fil 9% _fil.W-23% ~ .... J.mJ -7% ~ -10% (14,839) ·11% ~ _,,. Total governmental activities net position $117334 100% $119522 100% $129,423 100% $1271B78 100% $ 106703 100% $ 115,868 100% $123?01 100% $133453 100% $138135B 100% S 144 0B1 100% Busines.type activities NM lnv"1ment in capita! ...... $ 44,227 63% $ 50,B57 .. ,. $ 57,103 75% $ 61,721 75% $ 88,107 80% $ 62,427 71% $ 63,316 71% S 62,36B 69% $ 63,301 88% 63,742 66% Restricted 1,553 2" 1,553 2" 1,553 2% 1,512 2" 1,512 2" 1,512 2% 1,512 2" 1,512 2" 1,368 "' 1,175 '" Unrewicted 24528 3'% 21450 29% 17794 23% ~ 24% ~ 18% ~ 27% 24255 27% ~ 29% ~ 31% ~ 33% Total buainess-.type activities net position $ 70308 100% s 73,aso 100% $ 76 450 100% $ 82 778 100% $ 85 229 100% $ 87 560 100% $ 89083 100% $ 90383 100% S 93 552 100% ~ 100% Primary government Net iwfftment in cepilal assets $153,518 82% $163,786 BS% $173,668 .. ,. $177,311 84% $ 198,SOS 103% $ 187,062 92% $193,237 91% $207,213 93'1 $214,828 """ s 207,301 86% Restrieted 3,216 2% 2,635 ,,. 2,763 1% 2,388 1% 2,736 1% 3,250 2% 3,524 2" 3,878 2" 3,038 ,,. 3,442 1% Unres1rkted 30 867 18% 26,961 14% 29,422 14% 30959 15% ~ -0% -----11.W 6% 16023 .... ~ 6% ~ 6% ~ 12% Total primary government net position $187,599 100% $193 382 100% $205,873 100% $210658 100% $ 191,932 100% S 203428 100% $212,784 100% $223 835 100% $ 231 910 100% S 240,691 100% Source: City of Salina Comprehensive Amual Financial Reports, 2011 • 2020 Expenses Governmental activilies: General government Public safety Public works Pubic health and sanitation Culture and recreation Planning and development Interest on long tern, debt Total governmental activities expenses Business-type activities: Solid waste <isposal Water and sewer Sanitation Golf course Total business-type activities expenses Total primary government expenses Program Revenues Governmental activities: Charges for services General government Public safety Publlcworks Public health and sanitation Culture and recreation Planning and development Operaling grants and contlbutlons Capital grants and conllibutlons Total governmental activilies program revenues Business-type activities: Charges for services Solid waste <isposal Water and sewer Santtation Golf course Operating grants and contributions Capital grants and contributions Total business-type activities program revenues Total primary government program revenues Net (Expense) Revenue Governmenlal activities Business-type activities Total primary government net expense Schedule 2 City of Salina, Kansas Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) (in OOO's) Fiscal Year 2011 ~ 2013 ~ 2015 2016 2017 2018 2019 ~ $ 13,614 $ 11,278 $ 10,978 $ 12,175 $ 10,743 $ 9,188 $ 9,780 $12,013 $ 10,866 $10,395 18,579 19,066 19,649 20,208 21,084 22,232 23,120 23,892 25,358 24,672 9,858 10,957 11,064 11,401 9,049 9,773 10,345 10,458 10,529 10,511 1,368 1,383 1,369 347 995 1,095 1,126 1,256 1,156 1,323 6,693 5,336 4,809 5,156 6,517 6,612 6,880 7,040 6,879 5,034 3,450 3,362 3,399 3,236 1,915 2,047 1,835 2,369 2,522 2,004 ~ -1.l!!.1 ~ ------1.ifill ------12Zi ~ ---1.fil _blli_ ~ ~ 55212 53298 53.221 54.340 52.077 53.918 ~ 59145 59479 56.288 2,945 2,067 3,532 1,867 1,766 2,335 2,365 2,362 2,871 2,056 13,597 14,897 15,418 14,938 11,712 14,607 15,650 15,190 14,551 13,386 2,261 2,441 2,237 2,399 1,909 2,043 2,178 2,419 2,313 2,526 ~ _..m ~ ~ _____§ll __zg ~ ~ ~ ~ 19,628 20,128 21,955 20,041 16,208 ~ 21 045 20.917 20,623 18 773 $ 74.840 $ 73,426 $ 75176 $ 74 381 $ 68,285 $ 73,895 $ 75.856 $ 80,062 $ 80,102 $75,061 $ 6,106 $ 6,328 $ 5,548 $ 5,662 $ 3,151 $ 3,134 $ 3,470 $ 3,569 $ 3,401 $ 3,339 3,766 4,290 4,656 4,222 4,600 4,891 4,601 4,815 4,357 4,325 262 306 277 255 193 238 348 285 309 294 43 46 34 46 46 44 50 47 46 49 3,140 1,728 1,466 1,533 1,501 1,638 1,541 1,545 1,514 279 153 158 161 167 73 140 91 150 104 113 2,907 4,495 4,200 4,015 3,394 4,332 4,541 4,299 4,540 4,714 ------~ --- ___§ill ----1LW 16,342 16,900 12,958 ~ 14642 14 710 14,271 ~ 2,904 3,137 3,138 3,024 2,519 2,795 3,165 3,097 3,082 3,290 17,904 19,099 17,938 18,742 19,059 19,322 19,855 20,202 20,510 19,449 2,334 2,462 2,514 2,553 2,529 2,751 2,865 3,006 3,325 3,194 636 783 719 811 820 789 798 756 810 581 202 _1&Qi ~ _-11§. 27784 25.755 24,309 25,245 24,927 25,657 26,703 27 061 27.727 26,613 $ 44,161 $ 43,106 $ 40,651 $ 41,145 $ 37,885 $ 40,807 $ 41 345 $ 41 771 $ 41,998 $ 39,628 $ (38,835) $ (35,947) $ (36,879) $ (38,440) $ (39,119) $ (38,768) $ (40,169) $(39,800) $(45,208) $(43,173) ~ ___2.fil ~ ~ ~ ~ ~ ___fil£ ~ ~ $ (30,679) $ (30,320) $ (34,525) $ (33,236) $ (30,400) $ (33.088) $ (34,511) $(33,657) $(38,105) $(35,433) General Revenues and Other Changes in Net Position Governmental activities: Taxes Property taxes, general purpose Property taxes, debt service Motor vehicle taxes Sales tax, general purpose Selective sales tax Other taxes Investment revenues Miscellaneous Transfers, net Total governmental activities Business-type activities: Investment revenues Miscellaneous Reimbursements Transfers, net Total business-type activities Total primary government Change In Net Position Governmental activities Business-type activities Total primary government $ 7,783 2,779 1,150 11,767 4,080 6,390 77 872 ~ $ 8,272 2,439 1,153 12,165 4,210 6,486 66 660 30 35481 $ 8,031 2,362 1,200 12,260 4,281 6,630 67 9,918 999 45748 $ 8,315 $ 8,242 2,578 2,766 1,250 1,312 12,689 12,931 4,461 4,558 7,231 7,363 98 86 1,160 2,371 _..IE ~ 38569 43448 $ 8,196 $ 9,101 $ 8,623 $ 9,708 $10,308 3,022 2,487 2,467 2,664 3,058 1,370 1,372 1,428 1,403 1,520 12,781 12,906 13,292 13,419 13,697 4,901 8,832 8,917 9,323 9,751 7,991 6,900 7,241 6,975 6,117 148 92 183 670 286 5,842 2,003 1,062 1,168 8,328 ~ ~ ~ ~ ~ 47 851 48,002 48,034 ___§Q.fil 58,199 84 79 49 51 56 78 129 233 4 330 434 279 97 103 153 846 446 180 132 79 _____illID __@Q) _____filQ) ___ill!!!) _@2fil) ~ ~ ~ ~ ~ ~ ~ ~ ---1MW ~ ~ ~ ~ ~ $ 35,312 $ 35,964 $ 45,126 $ 38,897 $ 39,855 $ 44 427 $ 43 867 $ 43,589 $46,176 $53,517 $ (3,738) $ (466) $ 8,869 $ 129 $ 4,329 $ 9,083 $ 7,833 8,233 4,902 15,026 _____MI1. ____fil1Q_ ----1...IR _____MB ~ ~ -----122 ~ ~ ~ $ 4,633 ~ $ 10,601 $ 5661 $ 9,455 $ 11,339 $ 9356 S 9931 $ 8,071 $ 18084 Source: City of S&lina Comprehensive Annual Financial Reports, 2011 -2020 105 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) 2012 2013 2014 2015 2016 2017 .2Q.1.§ 2019 2020 [Note 2} General Fund Non spendable $ 90 $ 116 $ 81 $ 107 $ 111 $ 131 $ 153 $ 152 $ 212 $ 184 Restricted Committed Assigned 293 540 331 239 199 136 214 340 274 244 Unreserved/unassigned 3454 3 172 3,138 3,908 4 530 4 765 6,516 6,251 8 821 14 714 Total general fund $ 3,837 $ 3,828 $ 3,550 $ 4,254 $ 4,840 $ 5,032 $ 6,883 $ 6 743 $ 9,307 $ 15142 Restatement Restated fund balance All other governmental funds Nonspendable $ $ $ $ $ $ $ $ $ $ Restricted 3,611 3,319 3,446 2,910 2,793 3,142 4,191 4,648 5,224 4,980 Committed 127 (516) 7,486 9,886 8,695 14,284 10,072 7,325 8,086 13,225 Assigned 4,323 4,087 3,146 1,280 619 1,043 641 1,227 963 1,965 Unreserved/unassigned (10,537) (6,823) (28) (852) (7,804) (4,028) Total all other governmental funds $ 8,061 $ 6,890 $ 14,078 $ 14,076 $ 1,570 $ 11,646 $ 14,876 $ 12,348 $ 6,469 $ 16143 Note 1: Prior year amounts have not been restated for the implementation of GASB Statement 54 in fiscal year 2011 . Note 2: Committed fund balance increased due to changes from the implementation of GASB Statement 84 in fiscal year 2020. Source: City of Salina Comprehensive Annual Financial Reports, 2011 -2020 106 Schedule 4 City of Salina, Kansas Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (in OOO's) Fiscal Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Revenues Taxes (see Schedule 5) $ 33,949 $ 34,724 $ 34,764 $ 36,523 $ 37,171 $ 38,261 $ 41,597 $ 41,958 $ 43,492 $44,452 Intergovernmental 2,901 4,487 4,192 4,008 3,385 4,325 4,536 4,297 4,573 5,317 Special assessments 1,535 2,315 1,706 1,810 1,679 1,669 1,539 1,546 1,596 1,511 Licenses and permits 6 8 9 7 10 7 6 3 4 5 Charges for services 9,730 8,484 8,536 8,276 6,416 6,953 6,880 7,338 6,804 5,557 Investment revenue 69 47 40 59 47 142 79 157 670 286 Reimbursements 32 36 9,015 123 491 1,406 Donations 241 83 141 111 238 90 129 Miscellaneous 599 537 810 799 1,853 4,315 1,851 884 1,545 5,656 Total revenues 48,821 50,638 59,072 51,846 51,135 57,219 56,599 56,421 58,774 62,913 Expenditures General government 3,461 3,574 4,269 3,986 5,342 5,422 5,423 5,649 4,582 5,506 Public safety 18,118 18,564 19,155 19,559 21,268 21,664 21,629 22,953 23,692 22,435 Public works 6,569 7,004 7,220 7,443 5,333 5,778 6,048 6,162 6,136 6,082 Public health and sanitation 1,330 1,343 1,344 319 982 1,078 1,097 1,236 1,121 1,280 Culture and recreation 5,900 4,449 3,939 4,292 5,659 5,817 6,143 6,255 6,047 4,245 Planning and development 3,344 3,256 3,293 3,232 1,910 2,042 1,801 2,185 2,311 1,794 Miscellaneous 1,354 Capital outlay 9,847 7,327 13,047 11,009 25,527 24,001 18,281 16,344 21,913 12,041 Debt service Principal 4,411 8,592 5,038 5,261 6,250 17,902 5,088 14,243 10,324 5,164 Interest 2,084 2,103 1,867 1,864 1,833 3,152 1,771 2,192 2,136 2,366 Deposit to escrow 92 Total expenditures 55,064 56,304 59,172 56,965 74,104 86,856 67,281 77 219 78,262 62,267 Other financing sources (uses) Bonds and notes issued 6,565 6,150 5,690 5,365 6,825 34,892 11,490 8,090 11,090 8,720 Bond and note premium 23 60 185 302 369 1,503 95 70 443 468 Transfers in 7,994 3,488 4,907 3,001 7,642 7,065 8,339 13,462 9,714 9,323 Transfers out (5,692) (3,458) (3,907) (2,999) (3,913) (3,555) (4,160) (4,186) (5,073) (4,271) Issuance costs Other 156 Total other financing sources (uses) 9,046 6,240 6,875 5,669 10,923 39,905 15,764 17,436 16,174 14,241 Net change in fund balance $ 2,803 $ 574 $ 6,775 $ 550 $ (12,046) $ 10,268 $ 5,082 $ {3,362) $ (3,314) $ 14,887 Debt service as a percentage of non-capital expenditures 17% 28% 18% 18% 20% 50% 16% 37% 28% 18% Source: City of Salina Comprehensive Annual Financial Reports, 2011 -2020 107 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 W1 2012 2013 2014 2015 2016 2017 2018 2019 2020 Real estate $ 10,288 $ 10,466 $ 10,145 $ 10,657 $ 10,729 $ 10,972 $ 11,377 $10,804 $ 12,182 $ 13,150 Delinquent 274 245 248 235 279 246 210 276 190 216 Motor vehicle 1,150 1,153 1,200 1,250 1,312 1,370 1,372 1,428 1,403 1,520 General sales 11,767 12,165 12,260 12,689 12,931 12,781 12,906 13,293 13,419 13,697 Selective sales 4,080 4,210 4,281 4,461 4,558 4,901 8,832 8,917 9,323 9,751 Other taxes 6,390 6,485 6,630 7,231 7,362 7,991 6,900 ~ 6,975 6,117 Total taxes $ 33,949 $ 34,724 $ 34,764 $ 36,523 $ 37,171 $ 38,261 $ 41,597 $41,958 $ 43,492 $ 44,452 Source: City of Salina Comprehensive Annual Financial Reports, 2011 -2020 108 Schedule 6 City of Salina, Kansas Assessed and Estimated Actual Value of Taxable Property Last Ten Fiscal Years Assessed Value Ratio of Fiscal Estimated Total Assessed (Budget) Personal Total, Excluding Motor Vehicle Total, Taxable Market Value Value to Est. Year Real Estate Proee!:!i'. State Assessed Motor Vehicles Tax Rate (Note 1) Assessed Value (Note2) Market Value 2011 $ 367,750,803 $ 19,918,188 $ 14,685,585 $ 402,354,576 26.022 $ 50,330,252 $ 452,684,828 $2,884,188,981 15.70 2012 $ 369,416,422 $ 18,654,394 $ 15,779,466 $ 403,850,282 26.272 $ 47,553,744 $ 451,404,026 $2,889,385,914 15.62 2013 $ 370,390,092 $ 17,769,120 $ 16,948,264 $ 405,107,476 26.927 $ 48,882,411 $ 453,989,887 $2,917,267,724 15.56 2014 $ 376,131,346 $ 13,652,885 $ 17,670,147 $ 407,454,378 27.080 $ 48,865,900 $ 456,320,278 $2,957,531,741 15.43 2015 $ 381,087,426 $ 12,607,815 $ 18,984,453 $ 412,679,694 27.311 $ 50,350,566 $ 463,030,260 $2,957,531,741 15.66 2016 $ 389,872,825 $ 11,653,719 $ 19,323,055 $ 420,849,599 27.603 $ 51,833,505 $ 472,683,104 $2,964,464,111 15.94 2017 $ 399,918,216 $ 10,900,308 $ 19,671,685 $ 430,490,209 26.129 $ 50,970,796 $ 481,461,005 $3,097,885,103 15.54 2018 $ 4Q3,835,383 $ 10,130,718 $ 20,485,144 $ 434,451 ,245 28.394 $ 53,336,677 $ 487,787,922 $3,150,409, 123 15.48 2019 $ 421,108,311 $ 11,245,813 $ 22,113,195 $ 454,467,319 29.720 $ 54,687,311 $ 509,154,630 $3,294,115,685 15.46 2020 $ 423,573,121 $ 9,353,057 $ 23,436,340 $ 456,362,518 30.650 $ 54,589,132 $ 510,951 ,650 $3,326,521,997 15.36 Note 1: The tax rate for motor vehicles is set based on the average countywide tax rate. The City of Salina then receives a share of that based on tax effort. Note 2: The estimated market value excludes the value of the State assessed properties. Market value information is not available for those properties. However, state assessed property is generally assessed at 33% of market value, except for railroads, which are assessed at 15% of market value. Note 3: The Direct rate is expressed In dollars per thousand dollars of assessed value. Source: Saline County Clerk 109 Citv of Salina Fiscal Debt Total (Budget) Operating Service City Year Millage Millage Millage 2011 19.236 6.786 26.022 2012 20.326 5.946 26.272 2013 20.242 5.948 26.190 2014 20.539 6.388 26.927 2015 20.692 6.388 27.080 2016 19.950 7.361 27.311 2017 21.694 5.909 27.603 2018 20.339 5.790 26.129 2019 22.285 6.109 28.394 2020 22.908 6.812 29.720 Source: Saline County Treasurer Schedule 7 City of Salina, Kansas Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (rate per $1,000 of assessed value) Saline County Debt Total Operating Service County Operating Millage Millage Millage Millage 31.432 31 .432 45.818 32.576 32.576 47.127 34.823 34.823 47.133 37.895 37.895 46.599 38.047 38.047 44.088 38.275 38.275 44.465 37.508 37.508 44.069 37.321 37.321 45.130 38.437 38.437 46.776 41 .097 41 .097 44.761 USD 305 (2) Other (1) Debt Total Service USD Millage Millage Other Total 13.095 58.913 12.131 128.498 11.693 58.820 11.989 129.657 11.516 58.649 12.135 131.797 11.517 58.116 12.941 135.879 11.517 55.605 13.305 134.037 11.655 56.120 13.293 134.999 11.674 55.743 13.299 134.153 11.371 56.501 13.189 133.140 10.746 57.522 13.988 138.341 10.747 55.508 13.983 140.308 (1) The "Other" column includes the State of Kansas, the Salina Airport Authority, the Salina Public Library and Kansas State Extension District #3. (2) A small portion of Salina is covered by USD 306, USO 307, or USD 400. Total Tax Rates are different in the areas covered by these jurisdictions. 110 Taxpayer Evergy (Westar Energy (Western Resources) SFC Global Supply Chain, Inc. (Schwan's) Kansas Gas Service RAF Salina LLC S&B Motels Central Mall Realty Holding LLC Union Pacific Menard Inc. Individual Sams Real Estate Business TrusVWalmart Wal-mart Real Estate Business Trust Great Plains Manufacturing Gateway Properties Southwestern Bell Sunflower Bank Salina Regional Health Center Combined Valuation of the Ten Largest Taxpayers City Valuation Percent of Total City Assessed Valuation Source: Saline County Clerk's Office or recent OS T 1 pe of Business Utility Pizza Manufacturing Utility Retail Shopping Mall Motel Regional Shopping Center Railroad Home Improvement Residential Discount Retail Stores Discount Retail Stores Manufacturing Shopping Mall (Midstate) Telephone Utility Banking Institution Schedule8 City of Salina, Kansas Principal Property Taxpayers Current Year and Ten Years Ago 2011 !201 D Assessed Value) Assessed % of Total Valuation Valuation Rank $ 5,575,032 1.39% 8,589,167 2.15% 3,622,225 0.90% 6,254,013 1.56% N/A 3,587,574 N/A 0.00% NIA NIA 2,247,083 N/A N/A 3,468,733 0.87% 2,879,602 0.72% 0.00% 3,107,097 0.78% 0.00% Hospital and Medical Offices 5,589,420 1.40% $ 44,919,946 $ 400,248,283 11.22% 111 2020 (2019 Assessed Value) Assessed % ofTotal Valuation Valuation Rank 4 $ 13,682,027 #DIV/0! 1 1 6,855,966 #DIV/0! 2 7 4,415,353 #DIV/0! 3 2 4,296,499 #DIV/DI 4 3,774,927 #DIV/0! 5 2,868,321 #DIV/0! 6 2,570,668 #DIV/0! 7 2,465,098 #DIV/0! a 2,440,724 #DIV/0! 9 2,286,508 #DIV/0! 10 5 10 6 a 9 3 $ 451656,091 $ #DIV/0! Schedule 9 City of Salina, Kansas Property Tax Levies and Distributions Last Ten Fiscal Years Current Year Tax Distributions Total Tax Distributions Fiscal (Budget) Taxes Levied for Delinquent Percentage Year the fiscal 'i_ear Amount Percenta9e Collections {1 ) Amount ofle~ 2011 $ 10,415,491 $ 10,287,770 98.8% $ 273,843 $10,561,613 101.4% 2012 $ 10,570,420 $ 10,411,299 98.5% $ 245,086 $10,656,385 100.8% 2013 $ 10,550,730 $ 10,145,404 96.2% $ 354,845 $10,500,249 99.5% 2014 $ 10,868,225 $ 10,776,688 99.2% $ 62,432 $10,839,120 99.7% 2015 $ 10,991,959 $ 10,460,246 95.2% $ 372,726 $10,832,972 98.6% 2016 $ 11,209,245 $ 10,984,630 98.0% $ 184,970 $11,169,600 99.6% 2017 $ 11,564,876 $ 11,320,197 97.9% $ 203,904 $11,524,101 99.6% 2018 $ 11,248,278 $ 10,938,457 97.2% $ 276,340 $11,214,797 99.7% 2019 $ 12,335,808 $ 12,097,740 98.1% $ 189,587 $12,287,327 99.6% 2020 $ 13,506,590 $ 13,203, 183 97.8% $ 216,358 $13,419,541 99.4% (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 112 City Direct Tax Rate General Special purpose County-wide Tax Rate Portion of County-wide tax allocated to City (July Percentage) 2011 0.50% 0.40% 1.00% 63.34% Schedule 10 City of Salina, Kansas Direct Sales Rate by Taxing Entity Last Ten Fiscal Years Fiscal Year 2012 2013 2014 2015 2016 0.50% 0.50% 0.50% 0.50% 0.50% 0.40% 0.40% 0.40% 0.40% 0.40% 1.00% 1.00% 1.00% 1.00% 1.00% 61.72% 60.86% 60.23% 60.28% 60.28% 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. 2017 2018 0.50% 0.50% 0.75% 0.75% 1.00% 1.00% 60.28% 59.85% In May, 2016, the voters approved an increase in the Special Purpose Tax rate from .40% to .75%, to be effective October 1, 2016. Source: Kansas Department of Revenue 113 2019 2020 0.50% 0.50% 0.75% 0.75% 1.00% 1.00% 60.33% 60.17% 2012 2013 ·-wa..,. ·-Wator Rsto!i!!• ...., Sold .... .... -17,893 1,225.931 17,966 999,788 Commtrcia.l 1,585 98,547 1,579 ....... lrdJ&trial 42 174,595 "' 182.529 Govumm1tnl 99 54,618 99 ...... Apartment 169 70,263 189 67,155 Schools 81 51,027 84 44,187 lndustria!gpeclal 1 40,448 1 20,439 Consumed In production 12 19,266 12 18,885 Ruralwa;,r 1 25,930 1 21,530 -· 10 17,896 • 26,482 Re~p,of.t 38 5,399 37 4,810 Othertaxablod!lductions EngineeMQstudies 8 6,104 8 8,622 PnMclng taxable wMCIIII 2 6,118 2 3,"'5 Sale or oornpc,Mnt parta 8 5,728 8 5,972 Firehydrant 4 2,533 3 1,BZ! Industrial oonsumed in production 3 3,5"3 3 4,417 Sales of farm equipmant 1 83 1 107 19937 1754027 20018 1793771 Water Rate Schedule: Monthlyrnetarc:tiarge(5/8") $4.74 $4.88 Commodity chlrge (per 000 ga!.~ 0-2000;al. $3.88 $4.04 2001 -10,000 gal °"8r 10,000 gal. Exoess uaa charge $7.76 $8,0, Wa!lewatl!lr Rabi Schedule: Momhly base c:hargo se.n se.97 Unilc.oat(ptrOOOgal.): $4.61 $4.79 W&ll!lraDld is ■xpfltlJWd in thousands of gaDons. NurnberofAcoounta bilkKI ish annual m.imberof billings for each cla&& divided by 12. Monthly metarchllrgei incrnise&'Mth the sill!! ofthl!I metsr. Schodule11 City cf Salina, Kanaa• Water Sales by Class of Customer Last Ten Fiscal Years 2014 2015 2018 .,_ Wate, ·-Wais, ·-vv,,., .... Sold Siled Sold ..... Sold 18,042 1,003,100 18,088 987,540 18,125 950,697 1,599 353,675 1,IKJO 350,767 1,803 345,232 42 193,233 ... 202,«rl ... 191,236 "' 45,348 "' 41,928 99 45,136 166 80,885 184 61,400 163 57,039 84 '5,328 85 45,545 .. 41,176 12 19,284 12 17,338 • 9,580 1 22,993 1 21,915 1 23,384 10 32,184 9 31,858 • 33,728 37 4,973 37 4,958 .. 5,224 8 5,095 4,807 4,573 1 3,561 3,167 3,921 6 6,850 3,900 • 3,129 2 1,474 3 1,727 3 3,588 2,388 3 1,930 1 48 1 53 1 54 20111 1.0O1,sn 20153 1779999 20193 1 717766 $5.03 $5.20 $5.36 $4.24 .._ .. $4.48 $1!1.48 $8.90 S9.16 $7.11 $7.22 S7.36 ..... $5.01 $5.19 Residenfial \Nntewilter is calcutalad bat.ed on Wn.-Quarlar wa3' consumpticn. Olhllr a<JCQUflt&are based on momhly wa'9r ~ 2006 Wltflr Conau-nption Rate Sti.icrture changed from a decreasing tier sfn.JctJ19 to O!MI rala and Excesa UM Charge Whidi ill double tie consumption raw Source: City of Salina \/Vater Customer Acalunting Office. 114 ~17 2018 2019 2020 ·-VYa!Br ,,._ Water ·-""''"' ·-VYalBr .... Sold Bil!ed §2!!! .... ... ., ... Sold 18,124 998,572 18,130 963,387 18,155 884,810 18,238 965,782 1,606 345,250 1,614 340,960 1,607 352,051 1,612 319,0BO ... 193,503 ... 211,M3 .. 196,229 ... 164,766 99 41,552 .. 35,832 97 41,911 94 28,200 163 58,378 157 71,559 157 62,127 158 58,651 93 36,039 81 30,810 79 31,839 '/8 24,518 B 9,852 7 6,968 7 6,974 7 4,109 1 25,624 1 22,345 1 21,663 1 31,TT6 • 35,132 9 31,856 9 29,992 9 29,483 36 4,749 .. ...... 35 2,780 35 2,215 7 ◄,m 7 4,471 7 3,935 2,553 1 3,347 1 2,331 1 2,676 1,908 • 2,917 4 2,190 • 1,542 1,310 3 1,790 3 2,929 3 1,180 2,106 3 1,862 3 2,107 3 2,219 3 1,946 1 104 1 58 1 124 1 109 20,192 1 753343 20 196 1 734,098 20210 ,.1!1211853 20281 1638511 $5.52 $5.74 $5.94 S8.15 S4.n $4.96 S5.13 S5.31 S9.S,4 $9.82 $10.26 $10.62 $7.51 $7.81 SB.OB $8.36 $5.29 $5.51 $5.70 $5.90 Governmental Activities General Obligation Fiscal Year Bonds Loans Pa~able Caeital Lease TemE'ra~ Notes 2011 $ 55,225,670 $ $ $ 3,400,000 2012 $49,109,575 $ $ $ 1,485,000 2013 $49,631,797 $ $ $ 3,800,000 2014 $50,033,555 $ $ 176,235 $ 5,000,000 2015 $50,840,632 $ $ 479,366 $ 5,995,000 2016 $51,816,399 $ 12,157,127 $ 321,174 $ 11,505,000 2017 $55,994,305 $ 12,171,090 $ 157,868 $ 6,811,742 2018 $51,968,310 $ 12,185,053 $ $ 18,123,505 2019 $54,607,702 $ 12,640,000 $ $ 11,170,000 2020 $ 56,587,549 $ 12,640,000 $ $ 7,050,000 Source: City of Salina Comprehensive Annual Financial Reports, 2011 -2020 Schedule 12 City of Sa~na, Kansas Ralio of Outstanding Debt by Type Last Ten Fiscal Years Business-Tlee Activities General Water Obligation Revenue Bonds Bonds Loans Pa~able $ 7,417,907 $ 16, 193,925 $ $ 9,613,926 $15,850,228 $ $ 8,519,799 $ 15,226,532 $ $ 9,587,351 $ 14,592,836 $ 6,208,102 $ 8,539,773 $13,949,139 $ 5,753,620 $ 7,640,381 $ 13,285,443 $ 7,432,024 $ 6,520,433 $12,606,747 $ 8,862,810 $ 5,282,578 $ 11,898,051 $ 10,632,351 $ 4,102,298 $10,330,000 $ 46,354,852 $ 8,742,451 $ 9,615,000 $ 35,926,029 115 Percentage Temporary Total Primary of Personal Notes Government Income $ $ 82,237,502 4.3% $ $ 76,058,729 3.8% $ $ 77,178,128 3.7% $ $ 85,598,079 4.1% $ $ 85,557,530 4.1% $ $ 104,157,548 5.0% $ $ 103,124,995 4.9% $ $ 110,089,848 4.9% $ $ 139,204,852 6.0% $ $ 130,581,029 5.5% Schedule 13 City of Salina, Kansas Ratio of Net General Bonded Debt Outstanding Last Ten Fiscal Years General Bonded Debt Outstanding General Percentage of Obligation Temporary Less: Debt Net General Actual Taxable Fiscal Year Bonds Capital Lease Notes Total Service Fund Bonded Debt Value of PerCaeita 2011 $ 62,443,577 $ 3,400,000 $ 65,843,577 $ 1,236,026 $ 64,607,551 14.3% $1 ,354.26 2012 $58,723,501 $ $ 1,485,000 $ 60,208,501 $ 582,412 $ 59,626,089 13.1% $1,241.05 2013 $58,151,596 $ $ 3,800,000 $61,951,596 $ 707,763 $ 61,243,833 13.4% $1,280.02 2014 $ 59,620,906 $ 176,235 $ 5,000,000 $64,797,141 $ 407,864 $ 64,389,277 13.9% $1 ,345.17 2015 $ 59,380,405 $ 479,366 $ 5,995,000 $65,854,771 $ 745,339 $ 65,109,432 13.8% $1 ,361.75 2016 $59,456,780 $ 321,174 $ 11,505,000 $ 71,282,954 $ 1,248,914 $ 70,034,040 14.5% $1,479.51 2017 $62,514,738 $ 157,868 $ 6,811 ,742 $ 69,484,348 $ 1,509,863 $67,974,485 13.9% $1,446.45 2018 $57,250,888 $ $ 18,123,505 $ 75,374,393 $ 1,851,358 $ 73,523,035 14.4% $1,564.52 2019 $58,710,000 $ $11,170,000 $ 69,880,000 $ 1,142,418 $68,737,582 13.5% $1,471.39 2020 $ 65,330,000 $ $ 7,050,000 $ 72,380,000 $1,724,117 $ 70,655,883 #DIV/0! $1,517.85 Source: City of Salina Comprehensive Annual Financial Reports, 2011 -2020 116 Schedule 14 City of Salina, Kansas Direct and Overlapping Governmental Activities Debt As of December 31, 2020 Jurisdiction Direct: City of Salina Overlapping: Salina Airport Authority Saline County USO 305 Total Overlapping Debt Total Direct and Overlapping Debt Per Capita Direct and Overlapping debt Net General Obligation Percentage Bonded Debt Applicable to Outstanding City of Salina $ 70,655,883 100.00% 20,175,000 100.00% 216,812 73.88% 104,270,000 93.07% 124,661,812 $195,317,695 Amount Applicable to the City of Salina $ 70,655,883 20,175,000 163,268 101,854,179 122,192,447 $ 192,848,330 $ 4,033.39 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 117 Lel;lBI Debt Maq;in Calculation for 2020 Assessed Valuation Debt Limit (30% of Assessed Value) Debt applicable to Nmit: Total Bonded Debt Less GO Debt Attributable to Exempt Purposes Less Revenue Bonds Less Loans Payable Less Fund Balance designated for Debt Service Total Debt Appllcable to Limitation legal debt margin Debt limit Total net debt applicable to limit legal debt margin Total net debt appUcabk! to the imit as a percentage of debtfimit $ $ $ $ $ 134,396,160 (8,742,451) (9,615,000) (48,566,029) (1,724,117) ssi74e1ss3 (65,748,563) mi 2012 134,928,191 $ 135,421,208 $ 57,747,032 49,309,445 77,181,159 86,111,763 $ 43% 36% Schedule 15 City of Salina, Kansas Legzil Debt Margin Last Ten Fiscal Years 2lli. ~ 138,198,966 136,898,083 52,724,034 54,625,891 83 472,932 $ 82 270,392 311% 40% 118 Fiscal Year Wa 138,909,078 56,090,293 82,818,785 40% ~ 2017 ~ ~ 2020 141,804,931 142,000,537 146,336,377 152,724,804 62,072,485 61,298,184 $68,240,457 $ 66,232,649 $ 65,748,563 $ 79 732 446 ~ $ 78,095,920 $ 86,492,155 $ !65,748,563) 44% 43% 47% 43% #OIV/01 Utility Service Fiscal Year Charges 2011 $17,976,508 2012 $19,163,426 2013 $17,974,089 2014 $18,964,164 2015 $19,139,612 2016 $19,389,348 2017 $19,958,862 2018 $ 20,382,469 2019 $ 20,842,606 2020 $19,448,780 Schedule 16 City of Salina, Kansas Pledged Revenue Coverage Last Ten Fiscal Years Water/Sewer Revenue Bonds Less Operating Net Available Debt Service Exeenses Revenue Principal Interest $ 11,905,114 $ 6,071,394 $1,580,000 $ 496,760 $ 12,222,431 $ 6,940,995 $ 340,000 $ 596,992 $ 13,373,088 $ 4,601 ,001 $ 620,000 $ 590,191 $ 12,112,288 $ 6,851,876 $ 630,000 $ 577,791 $ 9,859,974 $ 9,279,638 $ 640,000 $ 565,191 $ 11,800,473 $ 7,588,875 $ 660,000 $ 549,191 $ 13,148,035 $ 6,810,827 $ 675,000 $ 529,391 $ 12,973,621 $ 7,408,848 $ 705,000 $ 509,141 $ 13,269,741 $ 7,572,865 $ 725,000 $ 487,991 $ 12,460,334 $ 6,988,446 $ 715,000 $ 327,117 Source: City of Salina Comprehensive Annual Financial Reports, 2011 -2020 City of Salina Debt Service Schedules 119 Debt Service Coveral;!e 2.92 7.41 3.80 5.67 7.70 6.28 5.65 6.10 6.24 6.71 Per Capita Personal Personal Income, Income Salina Fiscal Year Poeulalion !Saline Counixl (inte!J:Olated) 2010 46,180 $ 37,880 $ 1,749,298,400 2011 47,707 $ 40,512 $ 1,932,705,984 2012 48,045 $ 41 ,762 $ 2,006,455,290 2013 47,846 $ 43,078 $ 2,061,109,988 2014 47,867 $ 43,736 $ 2,093,511,112 2015 47,813 $ 44,065 $ 2,106,879,845 2016 47,336 $ 44,230 $ 2,093,647,612 2017 46,994 $ 44,732 $ 2,102,135,608 2018 46,994 $ 47,945 $ 2,253,127,330 2019 46,716 $ 49,983 $ 2,335,005,828 2020 46,550 $ 50,820 $ 2,365,671 ,000 Schedule 17 City of Salina, Kansas Demographic and Economic Statistics Last Ten Fiscal Years Unemployment Labor Force, USD 305 Rate Cih'. of Salina Headcount 6.7% 26,379 7,346 6.7% 26,258 7,289 6.3% 26,185 7,305 5.1% 26,441 7,305 5.3% 26,303 7,388 3.9% 26,170 7,369 3.3% 27,684 7,386 2.7% 27,684 7,176 3.3% 30,174 7,180 2.9% 30,094 7,245 3.4% 30,094 7,156 Percentage Free and Per Capita .5 Reduced City .5 cent cent sales Lunch sales tax Tax 57.8% $4,803,553 $ 104.02 58.7% $5,076,751 $ 106.42 59.1% $5,241,205 $ 109.09 60.7% $5,326,723 $ 111.33 61.3% $5,555,601 $ 116.06 61.8% $5,670,040 $ 118.59 68.7% $5,727,260 $ 120.99 62.1% $5,755,869 $ 122.48 61 .7% $5,770,174 $ 122.79 59.2% $5,968,961 $ 127.77 59.0% $5,998,424 $ 128.86 Sources: Increase in per capita Sales Tax (10 years) Population: Kansas Division of the Budget. Increase in per capita Personal Income Employment: Kansas Department of Labor Personal income for Salina is derived from the population and per capita personal income for Saline County Per Capita Personal income as reported by the Bureau of Economic Analysis 2017 Per Capita Personal Income staff projection 2010-2020 Employment City of Salina USD305 headcount and free and reduced lunch data derived from Kansas Department of Education./USD 305 Budget Document Asa% of per capita personal income 0.275% 0.263% 0.261% 0.258% 0.265% 0.269% 0.274% 0.274% 0.256% 0.256% 0.254% 22.8% 32.0% Free and Reduced Lunch percentage is an average of the percentages for each building reported. School Data is reported at beginning of school year, eg 2017- 2018 school year is reported as 2017 120 Employer Salina Regional Health Center Unified School District No 305 Schwan's Global Supply Chain Great Plains Manufacturing Exide Technologies/Stryten Manufacturing City of Salina Salina Vortex Saline County Walmart REV Group Signify Eldorado National Raytheon Aircraft Total Source: Salina Chamber of Commerce Schedule 18 City of Salina, Kansas Principal Employers Current Year and Nine Years Ago Type of Business Health Care Public School System Frozen Pizza Manufacturing Agricultrual & Landscaping Equipment Automotive Battery Manufacturer City Government Manufacturing County Government Retail Manufacturing Fluorescent Lamps Busses/Recreational Vehicle Aircraft Manufacturing Employees 121 1082 935 1850 650 800 493 277 600 255 6,942 2011 2020 Percentage of Percentage of Rank Labor Force Employees Rank Labor Force 2 4.1% 1,875 6.2% 3 3.5% 1,500 2 5.0% 1 7.0% 1,200 3 4.0% 5 2.5% 1,200 4 4.0% 4 3.0% 700 5 2.3% 7 1.9% 425 6 1.4% 385 7 1.3% 8 325 8 1.1% 250 9 0.8% 175 10 0.6% 6 2.3% 9 1.0% 10 0.0% 26.4% 8,035 26.7% GOVERNMENTAL AUDIT SECTION CITY OF SALINA, KANSAS SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31, 2020 Federal Federal Granter/Pass-Through CFDA Granter/Program Title Number U.S. Department of Housing and Urban Development Fair Housing Assistance Program 14.401 Passed Through the Kansas Department of Commerce: Community Development Block Grants/Entitlement Grants Cluster: Community Development Block Grants/Entitlement Grants 14.218 Total Community Development Block Grants/Entitlement Grants Cluster Passed Through the Kansas Housing Resources Corporation: Emergency Solutions Grant 14.231 Total U.S. Department of Housing and Urban Development U.S. Department of Justice Edward Byrne Memorial Justice Assistance Grant 16.738 Total U.S. Department of Justice U.S. Department of the Treasurt: Passed Through Saline County: Coronavirus Relief Fund 21.019 Total U.S. Department of the Treasury U.S. Department of Homeland Securit1 Passed Through Kansas Adjutant General: Disaster Grants -Public Assistance (Presidentially Declared Disasters) 97.036 Total U.S. Department of Homeland Security U.S. Department of Transi;iortation Passed Through Kansas Department of Transporation: Highway Safety Cluster: State and Community Highway Safety 20.600 National Priority Safety Programs 20.616 Total Highway Safety Cluster Total U.S. Department of Transportation Total Expenditures of Federal Awards See independent auditor's report on the financial statements. 122 Exeenditures $ 91,100 122,055 122,055 177,407 390,562 52,713 52,713 1,218,475 1,218,475 42,885 42,885 3,284 2,262 5,546 5,546 $ 1,710,181 CITY OF SALINA, KANSAS NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31 , 2020 1. Organization The City of Salina, Kansas (the City), is the recipient of several federal awards. All federal awards received directly from federal agencies as well as those awards that are passed through other government agencies, are included on the Schedule of Expenditures of Federal Awards. 2. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City and is presented on the modified accrual basis of accounting, which is described in Note 1 to the City's basic financial statements. The information presented in this schedule is in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. The City elected not to use the 10% de minim is indirect cost rate. 3. Local Government Contributions Local cost sharing is required by certain federal grants. The amount of cost sharing varies with each program. Only the federal share of expenditures is presented in the Schedule of Expenditures of Federal Awards. 4. Additional Audits Granter agencies reserve the right to conduct additional audits of the City's grant programs for economy and efficiency and program results that may result in disallowed costs to the City. However, management does not believe such audits would result in any disallowed costs that would be material to the City's financial position at December 31, 2020. 5. Outstanding Loans The City did not have any outstanding loans under any federal grants at December 31, 2020. 6. Pass Through Numbers Pass through numbers have not been assigned to pass through grants on the Schedule of Expenditures of Federal Awards. 123 CITY OF SALINA, KANSAS SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2020 Section I -Summary of Auditor's Results Financial Statements Type of auditor's report issued: Internal control over financial reporting: Material weakness(es) identified? Significant deficiency(ies) identified that are not considered to be material weaknesses? Noncompliance material to financial statements noted? Federal Awards Internal control over major programs: Material weakness(es) identified? ---- ---- ---- Unmodified Yes X ---- Yes X ---- Yes X ---- Yes X ---- No None reported No No Significant deficiency(ies) identified that are not considered to be material weaknesses? ----Yes __ X __ Nonereported Type of auditor's report issued on compliance for major programs: Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Uniform Guidance? Identification of major programs: ---- Unmodified Yes X No ---- CFDA Number(s) Name of Federal Program or Cluster 21.019 Dollar threshold used to distinguish between type A and type B programs: Auditee qualified as low-risk auditee? Coronavirus Relief Fund $750,000 Yes X ---- See independent auditor's report on the financial statements. 124 No CITY OF SALINA, KANSAS SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) For the Year Ended December 31, 2020 Section II -Financial Statement Findings Prior Year Findings None Noted. Current Year Findings None Noted. Section Ill -Federal Award Findings and Questioned Costs Prior Year Findings None Noted. Current Year Findings None Noted. See independent auditor's report on the financial statements. 125 GORDON AUDITING ACCOUNTING CONSULTING 2500 W 31st St Ste G·1B Lawrence, KS 66047 (785) 371•4847 cpagordon.com INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH "GOVERNMENT AUDITING STANDARDS" Mayor and City Commissioners City of Salina, Kansas We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the government 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 (the City), as of and for the year ended December 31, 2020, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated July 23, 2021 . Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal controls exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charge with governance. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 126 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Certified Public Accountant Lawrence, Kansas July 23, 2021 127 GORDON AUDITING ACCOUNTING CONSULTING 2500 W 31st St Ste G-1B Lawrence, KS 66047 (785) 371-4847 cpagordon.com INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE Mayor and City Commissioners City of Salina, Kansas Report on Compliance for Each Major Federal Program We have audited the compliance of the City of Salina, Kansas (the City), with the types of compliance requirements described in the 0MB Compliance Supplement that could have a direct and material effect on the City's major federal program for the year ended December 31, 2020. The City's major federal financial program is identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for the City's major federal program based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United State of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for the major federal program. However, our audit does not provide a legal determination on the City's compliance. Opinion on Each Major Federal Program In our opinion, the County complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended December 31, 2020. Report on Internal Control Over Compliance The management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City's internal control over compliance with the types of requirements that could have a direct and material effect on the major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the County's internal control over compliance. 128 A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of the internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in the internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Certified Public Accountant Lawrence, Kansas July 23, 2021 129 APPENDIX D Unaudited Annual Financial Report for Fiscal Year End December 31, 2021 Outstanding Unenaimbered Cash Fund Name Fund Number BEG.BAIANCE DEBITS CREDITS NETCHANG£ END BALANCE Encumbrances Balance U/31/21 General 100 13,571,077.06 53,246,073.94 47,565,055.53 5,681,018.41 19,252,095.47 141,005.13 19,111,090.34 Sales Tax Capital 210 6,996,908.66 10,263,446.79 7,671,020.45 2,592,426.34 9,589,335.00 998,792.66 8,590,542.34 Gas Tax 270 2,117,354.40 1,935,728.54 1,467,863.87 467,864.67 2,585,219.07 194,906.55 2,390,312.52 Sanitation 300 2,175,040.77 3,409,156.21 4,312,580.40 1903,424.19) 1,271,616.58 295,729.68 975,886.90 Solid Waste 320 5,629,280.93 4,546,207.46 3,472,451.37 1,073,756.09 6,703,037.02 251,194.90 6,451,842.12 Golf 340 45,426.85 941,504.60 885,210.40 56,294.20 101,721.05 14,327.00 87,394.05 Water/Wastewater 370 18,484,921.46 21,792,823.91 17,751,169.64 4,041,654.27 22,526,575.73 211,882.76 22,314,692.97 Debt Service 500 1,665,599.90 13,734,327.24 13,869,695.57 (135,368.33) 1,530,231.57 1,530,231.57 Water/Wastewater Debt Service 510 655,428.71 655,428.71 655,428.71 Water/Wastewater Capital Reserve 735 10,808,448. 75 250,250.00 170,558.82 79,691.18 10,888,139.93 260,989.98 10,627,149.95 Solid Waste Reserve 750 1,381,213.08 1,381,213.08 1,381,213.08 Total 63,530,700,57 110,119,518.69 97,165,606,05 U,953,9U.64 76,484,613.21 Z,368,828.66 74,115,784.55 CONTINUING DISCLOSURE UNDERTAKING CITY OF SALINA, KANSAS Gilmore & Bell, P.C. 03/22/2022 GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2022-A DATED APRIL 28, 2022 This CONTINUING DISCLOSURE UNDERTAKING dated as of April 28, 2022 (the "Continuing Disclosure Undertaking"), is executed and delivered by the City of Salina, Kansas (the "Issuer"). RECITALS 1. This Continuing Disclosure Undertaking is executed and delivered by the Issuer in connection with the issuance of the above-described bonds (the ''Obligations") which are being issued simultaneously herewith as of April 28, 2022, pursuant to the Bond Resolution (the "Resolution") adopted by the governing body of the Issuer. 2. The Issuer is entering into this Continuing Disclosure Undertaking for the benefit of the Beneficial Owners of the Obligations and in order to assist the Participating Underwriter in complying with Rule 15c2-12 of the Securities and Exchange Commission under the Securities Exchange Act of 1934 (the "Rule"). The Issuer is the only "obligated person" with responsibility for continuing disclosure hereunder. The Issuer covenants and agrees as follows: Section 1. Definitions. In addition to the definitions set forth in the Resolution, which apply to any capitalized term used in this Continuing Disclosure Undertaking unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Annual Report" means any Annual Report provided by the Issuer pursuant to, and as described in, Section 2 of this Continuing Disclosure Undertaking, which may include the Issuer's Comprehensive Financial Report, so long as the Comprehensive Financial Report contains the financial information and operating data described in Section 2(a)(l) and (2). "Beneficial Owner" means any registered owner of any Obligations and any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Obligations (including persons holding Obligations through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Obligations for federal income tax purposes. ''Business Day" means a day other than (a) a Saturday, Sunday or legal holiday, (b) a day on which banks located in any city in which the principal office or designated payment office of the paying agent or the Dissemination Agent is located are required or authorized by law to remain closed, or (c) a day on which the Securities Depository or the New York Stock Exchange is closed. 600596.20227\CDU "Comprehensive Financial Report" means the Issuer's Comprehensive Annual Financial Report, if any. "Dissemination Agenf' means any entity designated in wntmg by the Issuer to serve as dissemination agent pursuant to this Continuing Disclosure Undertaking and which has filed with the Issuer a written acceptance of such designation. "EMMA" means the Electronic Municipal Market Access system for municipal secunttes disclosures established and maintained by the MSRB, which can be accessed at www.emma.msrb.org. "Financial Obligation" means a (a) debt obligation; (b) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (c) guarantee of (a) or (b) in this definition; provided however, the term Financial Obligation shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule. "Fiscal Year" means the 12-month period beginning on January 1 and ending on December 31 or any other 12-month period selected by the Issuer as the Fiscal Year of the Issuer for financial reporting purposes. "Material Events" means any of the events listed in Section 3 of this Continuing Disclosure Undertaking. "MSRB" means the Municipal Securities Rulemaking Board, or any successor repository designated as such by the Securities and Exchange Commission in accordance with the Rule. ''Participating Underwriter" means any of the original underwriter(s) of the Obligations required to comply with the Rule in connection with the offering of the Obligations. Section 2. Provision of Annual Reports. (a) The Issuer shall, not later than 180 days after the end of the Issuer's Fiscal Year, commencing with the Fiscal Year ending December 31, 2021, file with the MSRB, through EMMA, the following financial information and operating data (the "Annual Report"): (1) (2) 600596.20227\CDU The audited financial statements of the Issuer for the prior Fiscal Year, prepared on a modified accrual basis of accounting other than GAAP. A more detailed explanation of the accounting basis is contained in the Official Statement related to the Obligations. If audited financial statements are not available by the time the Annual Report is required to be provided pursuant to this Section, the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the final Official Statement relating to the Obligations, and the audited financial statements shall be provided in the same manner as the Annual Report promptly after they become available. Updates as of the end of the Fiscal Year of certain financial information and operating data contained in the final Official Statement related to the Obligations, as described in Exhibit A, in substantially the same format contained in the final 2 Official Statement with such adjustments to formatting or presentation determined to be reasonable by the Issuer. Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues with respect to which the Issuer is an "obligated person" (as defined by the Rule), which have been provided to the MSRB and are available through EMMA or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from the MSRB on EMMA. The Issuer shall clearly identify each such other document so included by reference. In each case, the Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross-reference other information as provided in this Section; provided that the audited financial statements of the Issuer may be submitted separately from the balance of the Annual Report and later than the date required above for the filing of the Annual Report if they are not available by that date. If the Issuer's Fiscal Year changes, it shall give notice of such change in the same manner as for a Material Event under Section 3, and the Annual Report deadline provided above shall automatically become 180 days after the end of the Issuer's new Fiscal Year. (b) [Reserved] ( c) The Annual Report shall be filed with the MSRB in such manner and format as is prescribed by the MSRB. Section 3. Reporting of Material Events. Not later than 10 Business Days after the occurrence of any of the following events, the Issuer shall give, or cause to be given to the MSRB, through EMMA, notice of the occurrence of any of the following events with respect to the Obligations ("Material Events"): (1) principal and interest payment delinquencies; (2) non-payment related defaults, if material; (3) unscheduled draws on debt service reserves reflecting financial difficulties; (4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Obligations, or other material events affecting the tax status of the Obligations; (7) modifications to rights of bondholders, if material; (8) bond calls, if material, and tender offers; (9) defeasances; (10) release, substitution or sale of property securing repayment of the Obligations, if material; (11) rating changes; (12) bankruptcy, insolvency, receivership or similar event of the obligated person; (13) the consummation of a merger, consolidation, or acquisition involving the obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; 600596.20227\CDU 3 (14) appointment of a successor or additional trustee or the change of name of the trustee, if material; (15) incurrence of a Financial Obligation of the obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the obligated person, any of which affect security holders, if material; and (16) default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation of the obligated person, any of which reflect financial difficulties. Except as provided in Section 2(b) hereof, if the Issuer has not submitted the Annual Report to the MSRB by the date required in Section 2(a), the Issuer shall send a notice to the MSRB of the failure of the Issuer to file on a timely basis the Annual Report, which notice shall be given by the Issuer in accordance with this Section 3. Section 4. Termination of Reporting Obligation. The Issuer's obligations under this Continuing Disclosure Undertaldng shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Obligations. If the Issuer's obligations under this Continuing Disclosure Undertaking are assumed in full by some other entity, such person shall be responsible for compliance with this Continuing Disclosure Undertaking in the same manner as if it were the Issuer, and the Issuer shall have no further responsibility hereunder. If such termination or substitution occurs prior to the final maturity of the Obligations, the Issuer shall give notice of such termination or substitution in the same manner as for a Material Event under Section 3. Section 5. Dissemination Agents. The Issuer may, from time to time, appoint or engage a Dissemination Agent to assist 1t m carrying out its obligations under this Continuing Disclosure Undertaking, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. Any Dissemination Agent may resign as dissemination agent hereunder at any time upon 30 days prior written notice to the Issuer. The Dissemination Agent shall not be responsible in any manner for the content of any notice or report (including without limitation the Annual Report) prepared by the Issuer pursuant to this Continuing Disclosure Undertaking. Section 6. Amendment; Waiver. Notwithstanding any other provision of this Continuing Disclosure Undertaking, the Issuer may amend this Continuing Disclosure Undertaking and any provision of this Continuing Disclosure Undertaking may be waived, provided that Bond Counsel or other counsel experienced in federal securities law matters provides the Issuer with its written opinion that the undertaking of the Issuer contained herein, as so amended or after giving effect to such waiver, is in compliance with the Rule and all current amendments thereto and interpretations thereof that are applicable to this Continuing Disclosure Undertaking. In the event of any amendment or waiver of a provision of this Continuing Disclosure Undertaking, the Issuer shall describe such amendment or waiver in the next Annual Report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type ( or, in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the Issuer. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (1) notice of such change shall be given in the same manner as for a Material Event under Section 3, and (2) the Annual Report for the year in which the change is made should present a comparison (in narrative form and also, if feasible, in quantitative form) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. 600596.20227\CDU 4 Section 7. Additional Information. Nothing in this Continuing Disclosure Undertaking shall be deemed to prevent the Issuer from disseminating any other information, using the means of dissemination set forth in this Continuing Disclosure Undertaking or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Material Event, in addition to that required by this Continuing Disclosure Undertaking. If the Issuer chooses to include any information in any Annual Report or notice of occurrence of a Material Event, in addition to that specifically required by this Continuing Disclosure Undertaking, the Issuer shall have no obligation under this Continuing Disclosure Undertaking to update such information or include it in any future Annual Report or notice of occurrence of a Material Event. Section 8. Default. If the Issuer fails to comply with any provision of this Continuing Disclosure Undertaking, any Participating Underwriter or any Beneficial Owner of the Obligations may take such actions as may be necessary and appropriate, including seeking mandamus or specific performance by court order, to cause the Issuer to comply with its obligations under this Continuing Disclosure Undertaking. A default under this Continuing Disclosure Undertaking shall not be deemed an event of default under the Resolution or the Obligations, and the sole remedy under this Continuing Disclosure Undertaking in the event of any failure of the Issuer to comply with this Continuing Disclosure Undertaking shall be an action to compel performance. Section 9. Beneficiaries. This Continuing Disclosure Undertaking shall inure solely to the benefit of the Issuer, the Participating Underwriter, and the Beneficial Owners from time to time of the Obligations, and shall create no rights in any other person or entity. Section 10. Severability. If any provision in this Continuing Disclosure Undertaking, the Resolution or the Obligations shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. Section 11. Electronic 'Transactions. The arrangement described herein may be conducted and related documents may be sent, received, or stored by electronic means. Copies, telecopies, facsimiles, electronic files and other reproductions of original documents shall be deemed to be authentic and valid counterparts of such original documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. Section 12. Governing Law. This Continuing Disclosure Undertaking shall be governed by and construed in accordance with the laws of the State of Kansas. [Remainder of Page Intentionally Left Blank.] 600596.20227\CDU 5 CITY OF SALINA, KANSAS Mayor 600596.20227\CDU S-1 EXHIBIT A TO CONTINUING DISCLOSURE UNDERTAKING FINANCIAL INFORMATION AND OPERATING DATA TO BE INCLUDED IN ANNUAL REPORT The financial information and operating data contained in the following sections and tables contained in Appendix A of the final Official Statement (with such modifications to the formatting and general presentation thereof as deemed appropriate by the Issuer) relating to the Obligations: • Financial Overview of the City • FINANCIAL INFORMATION CONCERNING THE CITY -Assessed Valuation • FINANCIAL INFORMATION CONCERNING THE CITY -EstimatedActual Valuation • FINANCIAL INFORMATION CONCERNING THE CITY -Tax Collections • FINANCIAL INFORMATION CONCERNING THE CITY -Tax Levies • FINANCIAL INFORMATION CONCERNING THE CITY -Largest Taxpayers 600596.20227\CDU EXCERPT OF MINUTES OF A MEETING OF THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS HELD ON MARCH 21, 2022 The governing body met in regular session at the usual meeting place in the City, at 4:00 p.m., the following members being present and participating, to-wit: Mayor TRENT W. DAVIS, M.D., Commissioners MICHAEL L. HOPPOCK, GREG LENKIEWICZ, BILL LONGBINE and KARL RYAN Absent: None. The Mayor declared that a quorum was present and called the meeting to order. ************** (Other Proceedings) There was presented for first reading an Ordinance entitled: AN ORDINANCE AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS, SERIES 2022- A, OF THE CITY OF SALINA, KANSAS; PROVIDING FOR THE LEVY AND COLLECTION OF AN ANNUAL TAX FOR THE PURPOSE OF PAYING THE PRINCIPAL OF AND INTEREST ON SAID BONDS AS THEY BECOME DUE; AUTHORIZING CERTAIN OTHER DOCUMENTS AND ACTIONS IN CONNECTION THEREWITH; AND MAKING CERTAIN COVENANTS WITH RESPECT THERETO. Commissioner MICHAEL L. HOPPOCK moved that the Ordinance be approved on first reading. The motion was seconded by Commissioner GREG LENKIEWICZ. The Ordinance was duly read and considered, and upon being put, the motion for approval was carried by the vote of the Governing Body as follows: Yea: TRENT W. DAVIS, M.D., MICHAEL L. HOPPOCK, GREG LENKIEWICZ, BILL LONGBINE and KARL RYAN. Nay: NONE. ************** (Other Proceedings) [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20227\BOND ORDINANCE 2022-A CERTIFICATE I hereby certify that the foregoing Excerpt of Minutes is a true and correct excerpt of the proceedings of the governing body of the-City of Salina, Kansas, held on the date stated therein, and that the :official minutes of such proceedings are on file in my office. ----. .,,,..-----..._ (SEAL) JoVo 600596.20227\BOND ORDINANCE 2022-A (Signature Page to Excerpt of Minutes) EXCERPT OF MINUTES OF A MEETING OF THE CITY COMMISSION OF THE CITY OF SALINA, KANSAS HELD ON APRIL 4, 2022 Gilmore & Bell, P.C. 04/04/2022 The City Commission (the "Governing Body") met in regular session at the usual meeting place in the City, at 4:00 P.M., the following members being present and participating, to-wit: Mayor TRENT W. DAVIS, M.D., Commissioners MICHAEL L. HOPPOCK, GREG LENKIEWICZ, BILL LONGBINE and KARL RYAN Absent: None. The Mayor declared that a quorum was present and called the meeting to order. ************** (Other Proceedings) The Finance Director reported that pursuant to the Notice of Bond Sale heretofore duly given, bids for the purchase of General Obligation Internal Improvement Bonds, Series 2022-A, dated April 28, 2022, of the City had been received. A tabulation of said bids is set forth as EXHIBIT A hereto. The Finance Director reported that staff determined that the bid of COUNTRY CLUB BANK, LEAWOOD, KANSAS, was the best bid for the Bonds, a copy of which is attached hereto as EXHIBIT B. AN ORDINANCE AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS, SERIES 2022- A, OF THE CITY OF SALINA, KANSAS; PROVIDING FOR THE LEVY AND COLLECTION OF AN ANNUAL TAX FOR THE PURPOSE OF PAYING THE PRINCIPAL OF AND INTEREST ON SAID BONDS AS THEY BECOME DUE; AUTHORIZING CERTAIN OTHER DOCUMENTS AND ACTIONS IN CONNECTION THEREWITH; AND MAKING CERTAIN COVENANTS WITH RESPECT THERETO. Commissioner MICHAEL L. HOPPOCK moved that the Ordinance be passed. The motion was seconded by Commissioner KARL RYAN. The Ordinance, having been approved by a first reading on March 21, 2022, was duly read and considered, and upon being put, the motion for the passage of said Ordinance was carried by the vote of the Governing Body as follows: Yea: TRENT W. DAVIS, M.D., MICHAEL L. HOPPOCK, GREG LENKIEWICZ, BILL LONGBINE and KARL RYAN. Nay: NONE. The Mayor declared the Ordinance duly passed and the Ordinance was then duly numbered Ordinance No. 22-11102, was signed and approved by the Mayor and attested by the Clerk and the Ordinance or a summary thereof was directed to be published one time in the official newspaper of the City. 600596.20227\BASICDOCS There was presented a Resolution entitled: A RESOLUTION PRESCRIBING THE FORM AND DETAILS OF AND AUTHORIZING AND DIRECTING THE SALE AND DELIVERY OF GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS, SERIES 2022-A, OF THE CITY OF SALINA, KANSAS, PREVIOUSLY AUTHORIZED BY ORDINANCE NO. 22-11102 OF THE ISSUER; MAKING CERTAIN COVENANTS AND AGREEMENTS TO PROVIDE FOR THE PAYMENT AND SECURITY THEREOF; AND AUTHORIZING CERTAIN OTHER DOCUMENTS AND ACTIONS CONNECTED THEREWITH. Commissioner MICHAEL L. HOPPOCK moved that the Resolution be adopted. The motion was seconded by Commissioner KARL RYAN. The Resolution was duly read and considered, and upon being put, the motion for the adoption of the Resolution was carried by the vote of the Governing Body as follows: Yea: TRENT W. DAVIS, M.D., MICHAEL L. HOPPOCK, GREG LENKIEWICZ, BILL LONGBINE and KARL RYAN. Nay: NONE. The Mayor declared the Resolution duly adopted and the Resolution was then duly numbered Resolution No. 22-8041 and was signed by the Mayor and attested by the Clerk. ************** (Other Proceedings) [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20227\BASICDOCS 2 On motion duly made, seconded and carried, the meeting thereupon adjourned. CERTIFICATE I hereby certify that the foregoing Excerpt of Minutes is a true and correct excerpt of the proceedings of the Governing Body of the City of Salina, Kansas, held on the date stated therein, and that the official minutes of such proceedings are on file in my office. (SEAL) 600596.20227\BASICDOCS (Signature Page to Excerpt of Minutes) EXHIBIT A BID TABULATION CITY OF SALINA, KANSAS GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2022-A Dated: April 28, 2022 Series 2022-A Good Faith Deposit: $163,900 600596.20227\BASICDOCS BIDDERS Bidder Name ---. -TIC 1 ------12.i-· ---~ p~n!!}(_ ~~~--~-____ _,_.607853i rrhe Baker Group 12.633531 i f aymon_d Jame~ __ & __ A!.?o_cia~e~. Inc. !2:6~55_~j ~obert W. Baird & Co .. Inc. f-67'!5~4J !Piper Sandler & Co i,2.688233i ~erce Bank -------------,2.7166-35 ;Northland Securities. Inc. _ j2.765270 IFHN Fi;~ncia'i'Capit~i-Mark-;;ts ~ -;2.847769 :soK Financial Securities. Inc. :2~8856631 1Key~a~c Capit?I Markets :2.9692641 A-1 Sale Date: April 4, 2022 12:00 P.M. Central Time Max Interest Rate: 5.485% EXHIBITB (BID OF PURCHASER) 600596.20227\BASICDOCS B-1 4/4/22, 12:19 PM PARITY Bid Form j Upcoming Calendar I Overview I Result I Excel ) Country Club Bank -Leawood , KS's Bid Salina $8,195,000 General Obligation Internal Improvement Bonds, Series 2022-A For the aggregate princlpal amount of $8,195,000.00, we will pay you $8,567,393.45, plus accrued interest from the date of issue to the date of delive ry. The Bonds are to bear Interest at the followln g rate(s): Maturity Date Amount$ Coupon% Yield% Dollar Price Bond Insurance 10/01/2023 485M 4.0000 1.6000 103.366 10/01/2024 585M 4.0000 1.9000 104.952 10/01/2025 595M 4.0000 2.0000 106.587 10/01/2026 620M 4.0000 2.0500 108.207 10/01/2027 630M 4.0000 2.1000 109.692 10/01/2028 650M 4.0000 2.2000 110.728 - 10/01/2029 650M 4.0000 2.2500 111.903 10/01/2030 420M 2.5000 2.3000 101.357 -- 10/01/2031 430M 2.5000 2.3500 101.015 ---- 10/01/2032 430M 2.7500 2.4000 102.366 10/01/2033 430M 3.0000 2.4500 103.711 10/01/2034 440M 3.0000 2.5000 103.367 -- 10/01/2035 450M 3.0000 2.6000 102.683 10/01/2036 465M 3.0000 2.6500 102.343 - 10/01/2037 330M 3.0000 2.7500 101.667 10/01/2038 10/01/2039 10/01/20~0 340M 3.0000 3.0000 100.000 10/01/2041 10/01/2042 245M 3.0000 3.0500 99.242 - Total Interest Cost: $2,256,486.87 Premium: $372,393.45 Net Interest Cost: $1,884,093.42 TIC: 2.607853 Total Insurance Premium: $0 .00 Time Last Bid Received On:04/04/202211:59:11 COST This proposal is made subject to all of the terms and conditions of the Official Bid Form, the Official Notice of Sale, and the Preliminary Official Statement, all of which are made a part hereof. SEE ATTACHED SCHEDULE FOR FINAL PRICING INFORMATION & PURCHASE PRICE Bidder: Country Club Bank, Leawood , KS Contact: Lisa Roberts Title: Sr VP Telephone: 816-751 -1420 Fax: 913-385-0105 Issuer Name: City of Salina Accepted By: Company Name: Accepted By: Co00.±r1 Cf 0h R.~ c>fuA.t_ e~ https://www.newissuehome.t-deal.com/Parlly/asp/maln,asp?page=parltyBldform&customer= TM3&Issue_key _no=321 905&bld_no= 13&sec_type=BD&... 1 /2 4/4/22, 12:19 PM PARITY Bid Form Date: Date: hl\ps:/fwww.newissuehome.l-deal.com/Parilylasp/maln.asp?page"parltyBidform&customer=TM3&1ssue_key _no=321905&bld_no=13&sec_type=BD&... 212 I City of Salina, Kansas General Obligation Internal Improvement Bonds Series 2022-A Pricing Summary Maturity Maturity Type of Bond Coupon Yield Value 10/01/2023 Serial Coupon 4.000% 1,600% 390,000.00 10/01/2024 Serial Coupon 4,000% 1.900% 525,000.00 10/01/2025 Serial Coupon 4.000% 2.000% 550,000,00 10/01/2026 Serial Coupon 4,000% 2.050% 560,000.00 10/01/2027 Serial Coupon 4,000% 2.100% 590,000.00 10/01/2028 Serial Coupon 4.000% 2.200% 615,000.00 10/01/2029 Serial Coupon 4.000% 2.250% 635,000.00 10/01/2030 Serial Coupon 2,500% 2,300% 410,000.00 10/01/2031 Serial Coupon 2,500% 2.350% 425,000.00 10/01/2032 Serial Coupon 2,750% 2,400% 430,000.00 10/01/2033 Serial Coupon 3.000% 2.450% 430,000,00 10/01/2034 Serial Coupon 3.000% 2.500% 440,000.00 10/01/2035 Serial Coupon 3.000% 2.600% 450,000.00 10/01/2036 Serial Coupon 3.000% 2,650% 465,000.00 10/01/2037 Serial Coupon 3.000% 2.750% 335,000,00 10/01/2040 Term 1 Coupon 3.000% 3.000% 345,000.00 10/01/2042 Term 2 Coupon 3.000% 3,050% 245,000.00 Total $7,840,000,00 Bid Information Par Amount of Bonds Reofferlng Premium or (Discount) Gross Production Total Underwriter's Discount (0.595%) Bid (104.476%) Total Purchase Price Bond Vear Dollars Average Life Average Coupon Net Interest Cost (NIC) True Interest Cost (TIC) Stifel Price YTM Call Date Call Price Dollar Price 103.366% 403,127.40 104.952% 550,998.00 106,587% 586,228.50 108.207% 605,959.20 109.692% 647,182.80 110.728% 680,977.20 111.903% 710,584,05 101.357% 2.322% 10/01/2029 100.000% 415,563.70 101.015% 2.379% 10/01/2029 100.000% 429,313.75 102,366% C 2.491% 10/01/2029 100,000% 440,173.80 103.711 % C 2.622% 10/01/2029 100.000% 445,957.30 103.367% C 2.679% 10/01/2029 100.000% 454,814.80 102.683% C 2,759% 10/01/2029 100.000% 462,073.50 102.343% C 2.801% 10/01/2029 100.000% 475,894.95 101.667% C 2.865% 10/01/2029 100.000% 340,584.45 100,000% 345,000.00 99,242% 243,142.90 $8,237,576,30 $7,840,000.00 397,576,30 $8,237,576,30 $(46,648,00) 8,190,928.30 $8,190,928.30 $69,202.00 B.827 Years 3,1908471% 2.6837399% 2.6173851% 4/ 4/202? I U:45 PM Public Finance Page 3 ORDINANCE NO. 22-11102 OF THE CITY OF SALINA, KANSAS PASSED APRIL 4, 2022 Gilmore & Bell, P.C. 04/04/2022 GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2022-A 600596.20227\BASICDOCS ORDINANCE NO. 22-11102 AN ORDINANCE AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS, SERIES 2022- A, OF THE CITY OF SALINA, KANSAS; PROVIDING FOR THE LEVY AND COLLECTION OF AN ANNUAL TAX FOR THE PURPOSE OF PAYING THE PRINCIPAL OF AND INTEREST ON SAID BONDS AS THEY BECOME DUE; AUTHORIZING CERTAIN OTHER DOCUMENTS AND ACTIONS IN CONNECTION THEREWITH; AND MAKING CERTAIN COVENANTS WITH RESPECT THERETO. WHEREAS, the City of Salina, Kansas (the "City") is a city of the first class, duly created, organized and existing under the Constitution and laws of the State; and WHEREAS, pursuant to the Constitution and the laws of the State of Kansas applicable thereto, by proceedings duly had, the City Commission of the City (the "Governing Body") has authorized the following improvements (the "Improvements") to be made in the City, to-wit: Project Description North 9th Street Bridge Smoky Hill River Renewal Automated Sanitation Trucks Great Plains Manufacturing Center Convention Hall HV AC Tony's Pizza Event Center Magnolia Hills Estates No. 2 Stone Lake Phase 3a Magnolia Hills Estates No. 2 -Markley Road Trail Total: Ord.lRes. No. Ord. 02-10071; Res No. 19- 7677 Ord. 17-10885 Res. 20-7818 Res. 21-7931 Res. 19-7760 Res. 19-7751 Res. 21-7957 Authority (K.S.A.) K.S.A. 12-685 et seq. Kan. Const. Article 12, §5 K.S.A. 12-2104 K.S.A. 12-1736 et seq. K.S.A. 12-6a01 et seq. K.S.A. 12-6a01 et seq. K.S.A. 12-6a01 et seq. Allocable Principal Amount of Bonds $1,890,000 1,605,000 1,495,000 160,000 1,470,000 1,195,000 25,000 $7,840,000 WHEREAS, the Governing Body is authorized by law to issue general obligation bonds of the City to pay the costs of the Improvements; and WHEREAS, the Governing Body has advertised the sale of the Bonds in accordance with the law and at a meeting held in the City on this date, awarded the sale of such Bonds to the best bidder. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF SALINA, KANSAS, AS FOLLOWS: Section 1. Definitions of Words and Terms. In addition to words and terms defined elsewhere herein, the following words and terms in this Ordinance shall have the meanings hereinafter set forth. Unless the context shall otherwise indicate, words importing the singular number shall include the plural and vice versa, and words importing persons shall include firms, associations and corporations, including public bodies, as well as natural persons. 600596.20227\BASICDOCS 1 "Act" means the Constitution, particularly Article 12, § 5 thereof, and statutes of the State including K.S.A. 10-101 to 10-125, inclusive, K.S.A. 10-620 et seq., K.S.A. 12-685 et seq., K.S.A. 12-1736 et seq., K.S.A. 12-6a01 et seq., and K.S.A. 12-2104, all as amended and supplemented from time to time. "Bond and Interest Fund" means the Bond and Interest Fund of the City for its general obligation bonds. "Bond Resolution" means the resolution to be adopted by the Governing Body prescribing the terms and details of the Bonds and making covenants with respect thereto. ''Bonds" means the City's General Obligation Internal Improvement Bonds, Series 2022-A, dated April 28, 2022, authorized by this Ordinance. "City" means the City of Salina, Kansas. "Clerk" means the duly appointed and acting Clerk of the City or, in the Clerk's absence, the duly appointed Deputy or Acting Clerk. "Finance Director'' means the duly appointed and/or elected Finance Director or, in the Finance Director's absence, the duly appointed Deputy Finance Director or Acting Finance Director of the Issuer. "Improvements" means the improvements referred to in the preamble to this Ordinance and any Substitute Improvements. "Mayor" means the duly elected and acting Mayor of the City or, in the Mayor's absence, the duly appointed and/or elected Vice Mayor or Acting Mayor of the City. "Ordinance" means this Ordinance authorizing the issuance of the Bonds. "Refunded Notes" means the Series 2021-1 Notes. "Series 2021-1 Notes" means the City's General Obligation Temporary Notes, Series 2021-1, dated April 29, 2021, in the aggregate principal amount of $5,230,000. "State" means the State of Kansas. "Substitute Improvements" means the substitute or additional improvements of the City authorized in the manner set forth in the Bond Resolution. Section 2. Authorization of the Bonds. There shall be issued and hereby are authorized and directed to be issued the General Obligation Internal Improvement Bonds, Series 2022-A, of the City in the principal amount of $7,840,000 for the purpose of providing funds to: (a) pay a portion of the costs of the Improvements, including retiring the Refunded Notes; and (b) pay the costs of issuance of the Bonds. Section 3. Security for the Bonds. The Bonds shall be general obligations of the City payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of the Improvements and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The balance of the principal and interest on the Bonds is payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The full faith, credit and resources of the City are hereby 600596.20227\BASICDOCS 2 irrevocably pledged for the prompt payment of the principal of and interest on the Bonds as the same become due. Section 4. Terms, Details and Conditions of the Bonds. The Bonds shall be dated and bear interest, shall mature and be payable at such times, shall be in such forms, shall be subject to redemption and payment prior to the maturity thereof, and shall be issued and delivered in the manner prescribed and subject to the provisions, covenants and agreements set forth in the Bond Resolution hereafter adopted by the Governing Body. Section 5. Levy and Collection of Annual Tax. The Governing Body shall annually make provision for the payment of principal of, premium, if any, and interest on the Bonds as the same become due by levying and collecting the necessary taxes and/or assessments upon all of the taxable tangible property within the City in the manner provided by law. The taxes and/or assessments above referred to shall be extended upon the tax rolls in each of the several years, respectively, and shall be levied and collected at the same time and in the same manner as the general ad valorem taxes of the City are levied and collected, shall be used solely for the payment of the principal of and interest on the Bonds as and when the same become due and the fees and expenses of the paying agent for the Bonds. The proceeds derived from said taxes and/or assessments shall be deposited in the Bond and Interest Fund. If at any time said taxes and/or assessments are not collected in time to pay the principal of or interest on the Bonds when due, the City Treasurer is hereby authorized and directed to pay said principal or interest out of the general funds of the City and to reimburse said general funds for money so expended when said taxes and/or assessments are collected. Section 6. Further Authority. The Mayor, Finance Director, Clerk and other City officials are hereby further authorized and directed to execute any and all documents and take such actions as they may deem necessary or advisable in order to carry out and perform the purposes of the Ordinance, and to make alterations, changes or additions in the foregoing agreements, statements, instruments and other documents herein approved, authorized and confirmed which they may approve, and the execution or taking of such action shall be conclusive evidence of such necessity or advisability. Section 7. Governing Law. This Ordinance and the Bonds shall be governed exclusively by and construed in accordance with the applicable laws of the State. Section 8. Effective Date. This Ordinance shall take effect and be in full force from and after its passage by the Governing Body, and publication of the Ordinance ( or a summary thereof) in the official City newspaper. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20227\BASICDOCS 3 Mayor 600596.20227\BASICDOCS (Signature Page to Bond Ordinance) CERTIFICATE I hereby certify that the foregoing is a true and correct copy of the original ordinance; that said Ordinance was passed on April 4, 2022; that the record of the final vote on its passage is found on page 2 of the April 4, 2022 journal; and that the Ordinance or a summary thereof was published in the Salina Journal on April 8, 2022. DATED: April 8, 2022. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20227\BASICDOCS (Signature Page to Ordinance Certificate) (PUBLISHED IN THE SALINA JOURNAL ON APRIL 8, 2022) SUMMARY OF ORDINANCE NO. 22-11102 On April 4, 2022, the governing body of the City of Salina, Kansas passed an ordinance entitled: AN ORDINANCE AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS, SERIES 2022- A, OF THE CITY OF SALINA, KANSAS; PROVIDING FOR THE LEVY AND COLLECTION OF AN ANNUAL TAX FOR THE PURPOSE OF PAYING THE PRINCIPAL OF AND INTEREST ON SAID BONDS AS THEY BECOME DUE; AUTHORIZING CERTAIN OTHER DOCUMENTS AND ACTIONS IN CONNECTION THEREWITH; AND MAKING CERTAIN COVENANTS WITH RESPECT THERETO. The Series 2022-A Bonds approved by the Ordinance are being issued to pay a portion of the costs of certain public improvements and to refund previously issued general obligation notes of the City, and constitute general obligations of the City payable as to both principal and interest, to the extent necessary, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. A complete text of the Ordinance may be obtained or viewed free of charge at the office of the City Clerk, 300 West Ash Street, Salina, Kansas 67402. A reproduction of the Ordinance is available for not less than 7 days following the publication date of this Summary at W\Vw.salina-ks.gov. This Summary is hereby certified to be legally accurate and sufficient pursuant to the laws of the State of Kansas. DATED: April 8, 202i,.. 600596.20227\BASICDOCS LOCALiQ The Garden City Telegram PO Box 631367 Cincinnati, OH 45263-1367 The Hays Daily News I Salina Journal The Hutchinson News I The ottawa Herald PROOF OF PUBLICATION City Clerk'S omce City of Salina City Clerk Po Box 736 Salina KS 67402-0736 STATE OF WISCONSIN, COUNTY OF BROWN The Salina Journal, a daily newspaper published at Salina, Saline County, Kansas, and of general circulation in said county, and continuously and uninterruptedly published for five consecutive years prior to first publication of attached notice. That the attachment hereto contains a true and correct copy of what was actually published in said newspaper in the issue dated: 04/08/2022 Sworn to and subscribed before on 04/08/2022 My commis1on expires Publication Cost: $0.00 Order No: Customer No: PO#: 7140615 594307 Tl llS IS NOT AN INVOICE! Plf!t1Se do JlfJI use this /hrm fi11 pt~1·nu:,,, r41mJ1J,111L'e SHELLY HORA Nota-ry Public State of Wisconsin # of Copies: 1 v,..------~ ., ... :..:'-: ____ . (Published In the Salina Journal April 8, 2022) SUMMARY OF ORDINANCE NO. 22-11102 on April 4, 2022, the govern- Ing bodV of the City of Solina, Kan5os pmsed cm ordinance entitled: AN ORDINANCE AUTHO- RIZING AND PROVIDING FOR THE ISSUANCE OF GENERAL OBLIGATION INTERNAL IMPROVE-MENT BONDS, SERIES 2022-A, OF THE CITY OF SALINA, KANSAS; PROVIDING FOR THE LEVY AND COLLECTION OF AN ANNUAL TAX FOR THE PURPOSE OF PAYING THE PRINCIPAL OF AND INTEREST .ON SAID BONDS AS THEY BECOME DUE; AUTHO- RIZING CERTAIN OTHER DOCUMENTS AND ACTIONS JN CONNECTION THEREWITH; AND MAKING CERTAIN COVENANTS WITH RESPECT THERETO. The Serles 2022-A Bonds approved by 1he Ordinance ore being tssued to pay a portion of the casts of certoln publlc Improvements encl to refund previously issued general obligation notes of the Citv, and constitute general obligations of tho City payable as to both prln-clpal and Interest, 10 the extent necessarv, from ad valorem taxes whrch may be levied without limitation as to rate or amount upon all the taxable tanglble prop- erty, real and personal, within the 1errllor101 llmll$ at the City. A complete text of the Ordinance mav be obtained or viewed tree of charge at the afflce of the City Clerk, 300 West Ash Street, Salfna, Kansas 67402. A reproduction at the Ordi- nance ls ovailable for no1 less than 7 days tollowin11 the PUblicotlon date of this Summary at WWW saUno-llJWI.. This Summary is hereby certified to be Jeoally accu- rate and sufficient pursuant lo the laws of the Slate of Kansas. DATED: April 8, 2022. Greg Bengtson, City Al1ornev 7140615 4-8-2022 11 Page 1 of 1 RESOLUTION NO. 22-8041 OF THE CITY OF SALINA, KANSAS ADOPTED APRIL 4, 2022 Gilmore & Bell, P.C. 04/04/2022 GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2022-A 600596.20227\BASICDOCS Section 101. Section 201. Section 202. Section 203. Section 204. Section 205. Section 206. Section 207. Section 208. Section 209. Section 210. Section 211. Section 212. Section 213. Section 301. Section 302. Section 303. Section 401. Section 402. Section 501. Section 502. Section 503. Section 504. TABLE OF CONTENTS ARTICLE I DEFINITIONS Definitions of Words and Terms ................................................................................... 1 ARTICLE II AUTHORIZATION AND DETAILS OF THE BONDS Authorization of the Bonds ........................................................................................... 8 Description of the Bonds ............................................................................................... 8 Designation of Paying Agent and Bond Registrar ......................................................... 9 Method and Place of Payment of the Bonds ................................................................ 10 Payments Due on Saturdays, Sundays and Holidays .................................................. 10 Registration, Transfer and Exchange of Bonds ........................................................... 10 Execution, Registration, Authentication and Delivery of Bonds ................................ 11 Mutilated, Lost, Stolen or Destroyed Bonds ............................................................... 12 Cancellation and Destruction of Bonds Upon Payment. ............................................. 12 Book-Entry Bonds; Securities Depository .................................................................. 12 Nonpresentment of Bonds ........................................................................................... 14 Preliminary and Final Official Statement. ................................................................... 14 Sale of the Bonds ......................................................................................................... 14 ARTICLE III REDEMPTION OF BONDS Redemption by Issuer .................................................................................................. 15 Selection of Bonds to be Redeemed ............................................................................ 16 Notice and Effect of Call for Redemption ................................................................... 16 ARTICLE IV SECURITY FOR BONDS Security for the Bonds ................................................................................................. 18 Levy and Collection of Annual Tax; Transfer to Debt Service Account. ................... 18 ARTICLEV ESTABLISHMENT OF FUNDS AND ACCOUNTS DEPOSIT AND APPLICATION OF BOND PROCEEDS Creation of Funds and Accounts ................................................................................. 19 Deposit of Bond Proceeds ........................................................................................... 19 Application of Moneys in the Improvement Fund ...................................................... 19 Substitution of Improvements; Reallocation of Proceeds ........................................... 19 600596.20227\BASICDOCS Section 505. Section 506. Section 507. Section 508. Section 601. Section 602. Section 603. Section 70 l. Section 801. Section 802. Section 901. Section 902. Section 1001 . Section 1002. Section 1003. Section I 004. Section 1005. Section 1006. Section 1007. Section 1008. Section 1009. Application of Moneys in Debt Service Account ........................................................ 20 Application of Moneys in the Rebate Fund ................................................................. 20 Deposits and Investment of Moneys ........................................................................... 21 Application of Moneys in the Costs of Issuance Account.. ......................................... 21 ARTICLE VI DEFAULT AND REMEDIES Remedies ..................................................................................................................... 21 Limitation on Rights of Owners .................................................................................. 22 Remedies Cumulative .................................................................................................. 22 ARTICLE VII DEFEASANCE Defeasance ................................................................................................................... 22 ARTICLE VIII TAX COVENANTS General Covenants ...................................................................................................... 23 Survival of Covenants ................................................................................................. 23 ARTICLE IX CONTINUING DISCLOSURE REQUIREMENTS Disclosure Requirements ............................................................................................. 23 Failure to Comply with Continuing Disclosure Requirements ................................... 23 ARTICLEX MISCELLANEOUS PROVISIONS Annual Audit ............................................................................................................... 24 Amendments ................................................................................................................ 24 Notices, Consents and Other Instruments by Owners ................................................. 25 Notices ......................................................................................................................... 25 Electronic Transactions ............................................................................................... 26 Further Authority ......................................................................................................... 26 Severability .................................................................................................................. 26 Governing Law. ···'.·······································································································26 Effective Date .............................................................................................................. 26 EXHIBIT A -FORM OF BONDS ............................................................................................................. A-1 [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20227\BASICDOCS 11 RESOLUTION NO. 22-8041 A RESOLUTION PRESCRIBING THE FORM AND DETAILS OF AND AUTHORIZING AND DIRECTING THE SALE AND DELIVERY OF GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS, SERIES 2022-A, OF THE CITY OF SALINA, KANSAS, PREVIOUSLY AUTHORIZED BY ORDINANCE NO. 22-11102 OF THE ISSUER; MAKING CERTAIN COVENANTS AND AGREEMENTS TO PROVIDE FOR THE PAYMENT AND SECURITY THEREOF; AND AUTHORIZING CERTAIN OTHER DOCUMENTS AND ACTIONS CONNECTED THEREWITH. WHEREAS, the City of Salina, Kansas (the "Issuer") has previously passed the Ordinance authorizing the issuance of the Bonds; and WHEREAS, the Ordinance authorized the City Commission of the Issuer (the "Governing Body") to adopt a resolution prescribing certain details and conditions and to make certain covenants with respect to the issuance of the Bonds; and WHEREAS, the Governing Body hereby finds and determines that it is necessary for the Issuer to authorize the issuance and delivery of the Bonds in the principal amount of $7,840,000 to pay a portion of the costs of the Improvements and refund the Refunded Notes. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF SALINA, KANSAS, AS FOLLOWS: ARTICLE I DEFINITIONS Section 101. Definitions of Words and Terms. In addition to words and terms defined elsewhere herein, the following words and terms as used in this Bond Resolution shall have the meanings hereinafter set forth. Unless the context shall otherwise indicate, words importing the singular number shall include the plural and vice versa, and words importing persons shall include fmns, associations and corporations, including public bodies, as well as natural persons. "Act" means the Constitution, particularly Article 12, § 5 thereof, and statutes of the State including K.S.A. 10-101 to 10-125, inclusive, K.S.A. 10-620 et seq., K.S.A. 12-685 et seq., K.S.A. 12-1736 et seq., K.S.A. 12-6a01 et seq., and K.S.A. 12-2104, all as amended and supplemented from time to time. "Authorized Denomination" means $5,000 or any integral multiples thereof. "Beneficial Owner" of the Bonds includes any Owner of the Bonds and any other Person who, directly or indirectly has the investment power with respect to such Bonds. "Bond and Interest Fund" means the Bond and Interest Fund of the Issuer for its general obligation bonds. 600596.20227\BASICDOCS 1 "Bond Counsel" means the firm of Gilmore & Bell, P.C., or any other attorney or firm of attorneys whose expertise in matters relating to the issuance of obligations by states and their political subdivisions is nationally recognized and acceptable to the Issuer. ''Bond Payment Date" means any date on which principal of or interest on any Bond is payable. ''Bond Register'' means the books for the registration, transfer and exchange of Bonds kept at the office of the Bond Registrar. "Bond Registrar" means the State Treasurer and any successors and assigns. ''Bond Resolution" means this resolution relating to the Bonds. "Bonds" or ''Bond" means the General Obligation Internal Improvement Bonds, Series 2022-A, authorized and issued by the Issuer pursuant to the Ordinance and this Bond Resolution. ''Business Day" means a day other than a Saturday, Sunday or any day designated as a holiday by the Congress of the United States or by the Legislature of the State and on which the Paying Agent is scheduled in the normal course of its operations to be open to the public for conduct of its operations. "Cede & Co." means Cede & Co., as nominee of DTC and any successor nominee of DTC. "City" means the City of Salina, Kansas. "Clerk" means the duly appointed and/or elected Clerk or, in the Clerk's absence, the duly appointed Deputy Clerk or Acting Clerk of the Issuer. "Code" means the Internal Revenue Code of 1986, as amended, and the applicable regulations promulgated thereunder by the United States Department of the Treasury. "Costs of Issuance" means all costs of issuing the Bonds, including but not limited to all publication, printing, signing and mailing expenses in connection therewith, registration fees, financial advisory fees, all legal fees and expenses of Bond Counsel and other legal counsel, expenses incurred in connection with compliance with the Code, all expenses incurred in connection with receiving ratings on the Bonds, and any premiums or expenses incurred in obtaining municipal bond insurance on the Bonds. "Costs of Issuance Account" means the Costs of Issuance Account for General Obligation Internal Improvement Bonds, Series 2022-A created pursuant to Section 501 hereof. "Dated Date" means April 28, 2022. ''Debt Service Account" means the Debt Service Account for General Obligation Internal Improvement Bonds, Series 2022-A created within the Bond and Interest Fund pursuant to Section 501 hereof. "Debt Service Requirements" means the aggregate principal payments (whether at maturity or pursuant to scheduled mandatory sinking fund redemption requirements) and interest payments on the Bonds for the period of time for which calculated; provided, however, that for purposes of calculating such amount, principal and interest shall be excluded from the determination of Debt Service Requirements to the extent that such principal or interest is payable from amounts deposited in trust, escrowed or otherwise 600596.20227\BASICDOCS 2 set aside for the payment thereof with the Paying Agent or other commercial bank or trust company located in the State and having full trust powers. "Defaulted Interest" means interest on any Bond which is payable but not paid on any Interest Payment Date. ''Defeasance Obligations" means any of the following obligations: (a) United States Government Obligations that are not subject to redemption in advance of their maturity dates; or (b) obligations of any state or political subdivision of any state, the interest on which is excluded from gross income for federal income tax purposes and which meet the following conditions: (1) the obligations are (i) not subject to redemption prior to maturity or (ii) the trustee for such obligations has been given irrevocable instructions concerning their calling and redemption and the issuer of such obligations has covenanted not to redeem such obligations other than as set forth in such instructions; (2) the obligations are secured by cash or United States Government Obligations that may be applied only to principal of, premium, if any, and interest payments on such obligations; (3) such cash and the principal of and interest on such United States Government Obligations (plus any cash in the escrow fund) are sufficient to meet the liabilities of the obligations; (4) such cash and United States Government Obligations serving as security for the obligations are held in an escrow fund by an escrow agent or a trustee irrevocably in trust; (5) such cash and United States Government Obligations are not available to satisfy any other claims, including those against the trustee or escrow agent; and (6) such obligations are rated in a rating category by Moody's or Standard & Poor's that is no lower than the rating category then assigned by that Rating Agency to United States Government Obligations. ''Derivative" means any investment instrument whose market price is derived from the fluctuating value of an underlying asset, index, currency, futures contract, including futures, options and collateralized mortgage obligations. "Disclosure Undertaking'' means the Continuing Disclosure Undertaking, dated as of the Dated Date, relating to certain obligations contained in the SEC Rule. "DTC" means The Depository Trust Company, a limited-purpose trust company organized under the laws of the State of New York, and its successors and assigns, including any successor securities depository duly appointed. ''DTC Representation Letter'' means the Blanket Letter of Representation from the Issuer and the Paying Agent to DTC which provides for a book-entry system, or any agreement between the Issuer and Paying Agent and a successor securities depository duly appointed. 600596.20227\BASICDOCS 3 "Event of Default" means each of the following occurrences or events: (a) Payment of the principal and of the redemption premium, if any, of any of the Bonds shall not be made when the same shall become due and payable, either at Stated Maturity or by proceedings for redemption or otherwise; (b) Payment of any installment of interest on any of the Bonds shall not be made when the same shall become due; or ( c) The Issuer shall default in the due and punctual performance of any other of the covenants, conditions, agreements and provisions contained in the Bonds or in this Bond Resolution ( other than the covenants relating to continuing disclosure requirements contained herein and in the Disclosure Undertaking) on the part of the Issuer to be performed, and such default shall continue for thirty (30) days after written notice specifying such default and requiring same to be remedied shall have been given to the Issuer by the Owner of any of the Bonds then Outstanding. "Federal Tax Certificate" means the Issuer's Federal Tax Certificate, dated as of the Issue Date, as the same may be amended or supplemented in accordance with the provisions thereof. "Financeable Costs" means the amount of expenditure for an Improvement which has been duly authorized by action of the Governing Body to be financed by general obligation bonds, less: (a) the amount of any temporary notes or general obligation bonds of the Issuer which are currently Outstanding and available to pay such Financeable Costs; and (b) any amount of Financeable Costs which has been previously paid by the Issuer or by any eligible source of funds unless such amounts are entitled to be reimbursed to the Issuer under State or federal law. "Finance Director'' means the duly appointed and acting Finance Director of the Issuer or, in the Finance Director's absence, the duly appointed Deputy, Assistant or Acting Finance Director of the Issuer. "Fiscal Year" means the twelve month period ending on December 31. "Funds and Accounts" means funds and accounts created pursuant to or referred to in Section 501 hereof. "Governing Body" means the City Commission of the Issuer. "Improvement Fund" means the Improvement Fund for General Obligation Internal Improvement Bonds, Series 2022-A created pursuant to Section 501 hereof. "Improvements" means the improvements referred to in the preamble to the Ordinance and any Substitute Improvements. "Independent Accountant" means an independent certified public accountant or firm of independent certified public accountants at the time employed by the Issuer for the purpose of carrying out the duties imposed on the Independent Accountant by this Bond Resolution. "Interest Payment Date(s)" means the Stated Maturity of an installment of interest on any Bond which shall be April 1 and October 1 of each year, commencing April 1, 2023. "Issue Date" means the date when the Issuer delivers the Bonds to the Purchaser in exchange for the Purchase Price. 600596.20227\BASICDOCS 4 "Issuer" means the City and any successors or assigns. "Maturity" when used with respect to any Bond means the date on which the principal of such Bond becomes due and payable as therein and herein provided, whether at the Stated Maturity thereof or call for redemption or otherwise. "Mayor'' means the duly elected and acting Mayor, or in the Mayor's absence, the duly appointed and/or elected Vice Mayor or Acting Mayor of the Issuer. "Moody's" means Moody's Investors Service, a corporation organized and existing under the laws of the State of Delaware, and its successors and assigns, and, if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, "Moody's" shall be deemed to refer to any other nationally recognized securities rating agency designated by the Issuer. "Notice Address" means with respect to the following entities: (a) To the Issuer at: City-County Building 300 West Ash Street Salina, Kansas 67402 Fax: (785) 309-5711 (b) To the Paying Agent at: State Treasurer of the State of Kansas Landon Office Building 900 Southwest Jackson, Suite 201 Topeka,Kansas 66612-1235 Fax: (785) 296-6976 ( c) To the Purchaser: Country Club Bank 9400 Mission Road Leawood, Kansas 66206 Fax: (816) 753-8402 (d) To the Rating Agency(ies): Moody's Municipal Rating Desk 7 World Trade Center 250 Greenwich Street, 23rd Floor New York, New York 10007 S&P Global Ratings, a division of S&P Global Inc. 55 Water Street, 38th Floor New York, New York 10004 or such other address as is furnished in writing to the other parties referenced herein. 600596.20227\BASICDOCS 5 "Notice Representative" means: (a) With respect to the Issuer, the Clerk. (b) With respect to the Bond Registrar and Paying Agent, the Director of Fiscal Services. ( c) With respect to any Purchaser, the manager of its Municipal Bond Department. (d) With respect to any Rating Agency, any Vice President thereof. "Official Statement" means Issuer's Official Statement relating to the Bonds. "Ordinance" means Ordinance No. 22-11102 of the Issuer authorizing the issuance of the Bonds, as amended from time to time. "Outstanding" means, when used with reference to the Bonds, as of a particular date of determination, all Bonds theretofore authenticated and delivered, except the following Bonds: (a) Bonds theretofore canceled by the Paying Agent or delivered to the Paying Agent for cancellation; (b) Bonds deemed to be paid in accordance with the provisions of Article VII hereof; and ( c) Bonds in exchange for or in lieu of which other Bonds have been authenticated and delivered hereunder. "Owner" when used with respect to any Bond means the Person in whose name such Bond is registered on the Bond Register. Whenever consent of the Owners is required pursuant to the terms of this Bond Resolution, and the Owner of the Bonds, as set forth on the Bond Register, is Cede & Co., the term Owner shall be deemed to be the Beneficial Owner of the Bonds. "Participants" means those financial institutions for whom the Securities Depository effects book- entry transfers and pledges of securities deposited with the Securities Depository, as such listing of Participants exists at the time of such reference. ''Paying Agent" means the State Treasurer and any successors and assigns. "Permitted Investments" shall mean the investments hereinafter described, provided, however, no moneys or funds shall be invested in a Derivative: (a) investments authorized by K.S.A. 12-1675 and amendments thereto; (b) the municipal investment pool established pursuant to K.S.A. 12-1677a, and amendments thereto; (c) direct obligations of the United States Government or any agency thereof; (d) the Issuer's temporary notes issued pursuant to K.S.A. 10-123 and amendments thereto; (e) interest-bearing time deposits in commercial banks or trust companies located in the county or counties in which the Issuer is located which are insured by the Federal Deposit Insurance Corporation or collateralized by securities described in (c); (f) obligations of the federal national mortgage association, federal home loan banks, federal home loan mortgage corporation or government national mortgage association; (g) repurchase agreements for securities described in ( c) or (f); (h) investment agreements or other obligations of a financial institution the obligations of which at the time of investment are rated in either of the three highest rating categories by Moody's or Standard & Poor's; (i) investments and shares or units of a money market fund or trust, the portfolio of which is comprised entirely of securities described in ( c) or (f); G) receipts evidencing 600596.20227\BASICDOCS 6 ownership interests in securities or portions thereof described in (c) or (f); (k) municipal bonds or other obligations issued by any municipality of the State as defined in K.S.A. 10-1101 which are general obligations of the municipality issuing the same; or (1) bonds of any municipality of the State as defined in K.S .A. 10-1101 which have been refunded in advance of their maturity and are fully secured as to payment of principal and interest thereon by deposit in trust, under escrow agreement with a bank, of securities described in (c) or (f), or (m) other investment obligations authorized by the laws of the State, all as may be further restricted or modified by amendments to applicable State law .. ''Person" means any natural person, corporation, partnership, joint venture, association, firm, joint- stock company, trust, unincorporated organization, or government or any agency or political subdivision thereof or other public body. "Purchase Price" means the principal amount of the Bonds plus accrued interest to the date of delivery, plus a premium of $350,928.30. "Purchaser" means Country Club Bank, Leawood, Kansas, the original purchaser of the Bonds, and any successor and assigns. ''Rating Agency" means any company, agency or entity that provides, pursuant to request of the Issuer, financial ratings for the Bonds. "Rebate Fund" means the Rebate Fund for General Obligation Internal Improvement Bonds, Series 2022-A created pursuant to Section 501 hereof. "Record Dates" for the interest payable on any Interest Payment Date means the fifteenth day (whether or not a Business Day) of the calendar month next preceding such Interest Payment Date. "Redemption Date" means, when used with respect to any Bond to be redeemed, the date fixed for the redemption of such Bond pursuant to the terms of this Bond Resolution. "Redemption Price" means, when used with respect to any Bond to be redeemed, the price at which such Bond is to be redeemed pursuant to the terms of this Bond Resolution, including the applicable redemption premium, if any, but excluding installments of interest whose Stated Maturity is on or before the Redemption Date. "Refunded Notes" means the Series 2021-1 Notes maturing on May 1, 2022 in the aggregate principal amount of $5,230,000. "Replacement Bonds" means Bonds issued to the Beneficial Owners of the Bonds in accordance with Section 213 hereof. "SEC Rule" means Rule 15c2-12 adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934. "Securities Depository" means, initially, DTC, and its successors and assigns. "Series 2021-1 Notes" means the Issuer's General Obligation Temporary Notes, Series 2021-1, dated April 29, 2021. "Special Record Date" means the date fixed by the Paying Agent pursuant to Article II hereof for the payment of Defaulted Interest. 600596.20227\BASICDOCS 7 "Standard & Poor's" or "S&P" means S&P Global Ratings, a division of S&P Global Inc., a corporation organized and existing under the laws of the State of New York, and its successors and assigns, and, if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, Standard & Poor's shall be deemed to refer to any other nationally recognized securities rating agency designated by the Issuer. "State" means the state of Kansas. "State Treasurer" means the duly elected Treasurer or, in the Treasurer's absence, the duly appointed Deputy Treasurer or acting Treasurer of the State. "Stated Maturity" when used with respect to any Bond or any installment of interest thereon means the date specified in such Bond and this Bond Resolution as the fixed date on which the principal of such Bond or such installment of interest is due and payable. "Substitute Improvements" means the substitute or additional improvements of the Issuer described in Article Vhereof. "2040 Term Bonds" means the Bonds scheduled to mature in the year 2040. "2042 Term Bonds" means the Bonds scheduled to mature in the year 2042. "Term Bonds" means collectively the 2040 Term Bonds, the 2042 Term Bonds and the 2042 Term Bonds. "Treasurer" means the duly appointed and/or elected Treasurer of the Issuer or, in the Treasurer's absence, the duly appointed Deputy Treasurer or acting Treasurer of the Issuer. "United States Government Obligations" means bonds, notes, certificates of indebtedness, treasury bills or other securities constituting direct obligations of, or obligations the principal of and interest on which are fully and unconditionally guaranteed as to full and timely payment by, the United States of America, including evidences of a direct ownership interest in future interest or principal payment on obligations issued by the United States of America (including the interest component of obligations of the Resolution Funding Corporation), or securities which represent an undivided interest in such obligations, which obligations are rated in the highest rating category by a nationally recognized rating service and such obligations are held in a custodial account for the benefit of the Issuer. ARTICLE II AUTHORIZATION AND DETAILS OF THE BONDS Section 201. Authorization of the Bonds. The Bonds have been previously authorized and directed to be issued pursuant to the Ordinance in the principal amount of $7,840,000, for the purpose of providing funds to: (a) pay a portion of the costs of the Improvements, including retiring the Refunded Notes; and (b) pay Costs oflssuance. Section 202. Description of the Bonds. The Bonds shall consist of fully registered bonds in an Authorized Denomination, and shall be numbered in such manner as the Bond Registrar shall determine. 600596.20227\BASICDOCS 8 All of the Bonds shall be dated as of the Dated Date, shall become due in the amounts, on the Stated Maturities, subject to redemption and payment prior to their Stated Maturities as provided in Article III hereof, and shall bear interest at the rates per annum as follows: SERIAL BONDS Stated Maturity Principal Annual Rate Stated Maturity Principal Annual Rate October 1 Amount of Interest October 1 Amount of Interest 2023 $390,000 4.00% 2031 $425,000 2.50% 2024 525,000 4.00% 2032 430,000 2.75% 2025 550,000 4.00% 2033 430,000 3.00% 2026 560,000 4.00% 2034 440,000 3.00% 2027 590,000 4.00% 2035 450,000 3.00% 2028 615,000 4.00% 2036 465,000 3.00% 2029 635,000 4.00% 2037 335,000 3.00% 2030 410,000 2.50% TERM BONDS Stated Maturity Principal Annual Rate October 1 Amount of Interest 2040 $345,000 3.00% 2042 245,000 3.00% The Bonds shall bear interest at the above specified rates ( computed on the basis of a 3 60-day year of twelve 30-day months) from the later of the Dated Date or the most recent Interest Payment Date to which interest has been paid on the Interest Payment Dates in the manner set forth in Section 204 hereof. Each of the Bonds, as originally issued or issued upon transfer, exchange or substitution, shall be printed in accordance with the format required by the Attorney General of the State and shall be substantially in the form attached hereto as EXHIBIT A or as may be required by the Attorney General pursuant to the Notice of Systems of Registration for Kansas Municipal Bonds, 2 Kan. Reg. 921 ( 1983 ), in accordance with the Kansas Bond Registration Law, KS.A. 10-620 et seq. Section 203. Designation of Paying Agent and Bond Registrar. The State Treasurer is hereby designated as the Paying Agent for the payment of principal of and interest on the Bonds and Bond Registrar with respect to the registration, transfer and exchange of Bonds. The Mayor of the Issuer is hereby authorized and empowered to execute on behalf of the Issuer an agreement with the Bond Registrar and Paying Agent for the Bonds. The Issuer will at all times maintain a Paying Agent and Bond Registrar meeting the qualifications herein described for the performance of the duties hereunder. The Issuer reserves the right to appoint a successor Paying Agent or Bond Registrar by (a) filing with the Paying Agent or Bond Registrar then performing such function a certified copy of the proceedings giving notice of the termination of such Paying Agent or Bond Registrar and appointing a successor, and (b) causing notice of appointment of the successor Paying Agent and Bond Registrar to be given by first class mail to each Owner. No resignation or removal of the Paying Agent or Bond Registrar shall become effective until a successor has been appointed and has accepted the duties of Paying Agent or Bond Registrar. 600596.20227\BASICDOCS 9 Every Paying Agent or Bond Registrar appointed hereunder shall at all times meet the requirements ofK.S.A. 10-501 et seq. and K.S.A. 10-620 et seq., respectively. Section 204. Method and Place of Payment of the Bonds. The principal of, or Redemption Price, and interest on the Bonds shall be payable in any coin or currency which, on the respective dates of payment thereof, is legal tender for the payment of public and private debts. The principal or Redemption Price of each Bond shall be paid at Maturity to the Person in whose name such Bond is registered on the Bond Register at the Maturity thereof, upon presentation and surrender of such Bond at the principal office of the Paying Agent. The interest payable on each Bond on any Interest Payment Date shall be paid to the Owner of such Bond as shown on the Bond Register at the close of business on the Record Date for such interest (a) by check or draft mailed by the Paying Agent to the address of such Owner shown on the Bond Register or at such other address as is furnished to the Paying Agent in writing by such Owner; or (b) in the case ofan interest payment to Cede & Co. or any Owner of $500,000 or more in aggregate principal amount of Bonds, by electronic transfer to such Owner upon written notice given to the Bond Registrar by such Owner, not less than 15 days prior to the Record Date for such interest, containing the electronic transfer instructions including the bank ABA routing number and account number to which such Owner wishes to have such transfer directed. Notwithstanding the foregoing provisions of this Section, any Defaulted Interest with respect to any Bond shall cease to be payable to the Owner of such Bond on the relevant Record Date and shall be payable to the Owner in whose name such Bond is registered at the close of business on the Special Record Date for the payment of such Defaulted Interest, which Special Record Date shall be fixed as hereinafter specified in this paragraph. The Issuer shall notify the Paying Agent in writing of the amount of Defaulted Interest proposed to be paid on each Bond and the date of the proposed payment (which date shall be at least 3 0 days after receipt of such notice by the Paying Agent) and shall deposit with the Paying Agent at the time of such notice an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Paying Agent for such deposit prior to the date of the proposed payment. Following receipt of such funds the Paying Agent shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 nor less than 10 days prior to the date of the proposed payment. The Paying Agent shall promptly notify the Issuer of such Special Record Date and, in the name and at the expense of the Issuer, shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefore to be mailed, by first class mail, postage prepaid, to each Owner of a Bond entitled to such notice at the address of such Owner as it appears on the Bond Register not less than 10 days prior to such Special Record Date. The Paying Agent shall keep a record of payment of principal and Redemption Price of and interest on all Bonds and at least annually shall forward a copy or summary of such records to the Issuer. Section 205. Payments Due on Saturdays, Sundays and Holidays. In any case where a Bond Payment Date is not a Business Day, then payment of principal, Redemption Price or interest need not be made on such Bond Payment Date but may be made on the next succeeding Business Day with the same force and effect as if made on such Bond Payment Date, and no interest shall accrue for the period after such Bond Payment Date. Section 206. Registration, Transfer and Exchange of Bonds. The Issuer covenants that, as long as any of the Bonds remain Outstanding, it will cause the Bond Register to be kept at the office of the Bond Registrar as herein provided. Each Bond when issued shall be registered in the name of the Owner thereof on the Bond Register. 600596.20227\BASICDOCS Bonds may be transferred and exchanged only on the Bond Register as provided in this Section. Upon surrender of any Bond at the principal office of the Bond Registrar, the Bond Registrar shall transfer or exchange such Bond for a new Bond or Bonds in any Authorized Denomination of the same Stated Maturity and in the same aggregate principal amount as the Bond that was presented for transfer or exchange. Bonds presented for transfer or exchange shall be accompanied by a written instrument or instruments of transfer or authorization for exchange, in a form and with guarantee of signature satisfactory to the Bond Registrar, duly executed by the Owner thereof or by the Owner's duly authorized agent. In all cases in which the privilege of transferring or exchanging Bonds is exercised, the Bond Registrar shall authenticate and deliver Bonds in accordance with the provisions of this Bond Resolution. The Issuer shall pay the fees and expenses of the Bond Registrar for the registration, transfer and exchange of Bonds provided for by this Bond Resolution and the cost of printing a reasonable supply of registered bond blanks. Any additional costs or fees that might be incurred in the secondary market, other than fees of the Bond Registrar, are the responsibility of the Owners of the Bonds. In the event any Owner fails to provide a correct taxpayer identification number to the Paying Agent, the Paying Agent may make a charge against such Owner sufficient to pay any governmental charge required to be paid as a result of such failure. In compliance with Code § 3406, such amount may be deducted by the Paying Agent from amounts otherwise payable to such Owner hereunder or under the Bonds. The Issuer and the Bond Registrar shall not be required (a) to register the transfer or exchange of any Bond that has been called for redemption after notice of such redemption has been mailed by the Paying Agent pursuant to Article III hereof and during the period of 15 days next preceding the date of mailing of such notice of redemption; or (b) to register the transfer or exchange of any Bond during a period beginning at the opening of business on the day after receiving written notice from the Issuer of its intent to pay Defaulted Interest and ending at the close of business on the date fixed for the payment of Defaulted Interest pursuant to this Article II. The Issuer and the Paying Agent may deem and treat the Person in whose name any Bond is registered on the Bond Register as the absolute Owner of such Bond, whether such Bond is overdue or not, for the purpose of receiving payment of, or on account of, the principal or Redemption Price of and interest on said Bond and for all other purposes. All payments so made to any such Owner or upon the Owner's order shall be valid and effective to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid, and neither the Issuer nor the Paying Agent shall be affected by any notice to the contrary. At reasonable times and under reasonable regulations established by the Bond Registrar, the Bond Register may be inspected and copied by the Owners ( or a designated representative thereof) of 10% or more in principal amount of the Bonds then Outstanding or any designated representative of such Owners whose authority is evidenced to the satisfaction of the Bond Registrar. Section 207. Execution, Registration, Authentication and Delivery of Bonds. Each of the Bonds, including any Bonds issued in exchange or as substitutions for the Bonds initially delivered, shall be executed for and on behalf of the Issuer by the manual, electronic or facsimile signature of the Mayor, attested by the manual, electronic or facsimile signature of the Clerk, and the seal of the Issuer shall be affixed thereto or imprinted thereon. The Mayor and Clerk are hereby authorized and directed to prepare and execute the Bonds in the manner herein specified, and to cause the Bonds to be registered in the office of the Clerk, which registration shall be evidenced by the manual, electronic or facsimile signature of the Clerk with the seal of the Issuer affixed thereto or imprinted thereon. The Bonds shall also be registered in 600596.20227\BASICDOCS 11 the office of the State Treasurer, which registration shall be evidenced by the manual, electronic or facsimile signature of the State Treasurer with the seal of the State Treasurer affixed thereto or imprinted thereon. In case any officer whose signature appears on any Bonds ceases to be such officer before the delivery of such Bonds, such signature shall nevertheless be valid and sufficient for all purposes, as if such person had remained in office until delivery. Any Bond may be signed by such persons who at the actual time of the execution of such Bond are the proper officers to sign such Bond although at the date of such Bond such persons may not have been such officers. The Mayor and Clerk are hereby authorized and directed to prepare and execute the Bonds as herein specified, and when duly executed, to deliver the Bonds to the Bond Registrar for authentication. The Bonds shall have endorsed thereon a certificate of authentication substantially in the form attached hereto as EXHIBIT A hereof, which shall be manually executed by an authorized officer or employee of the Bond Registrar, but it shall not be necessary that the same officer or employee sign the certificate of authentication on all of the Bonds that may be issued hereunder at any one time. No Bond shall be entitled to any security or benefit under this Bond Resolution or be valid or obligatory for any purpose unless and until such certificate of authentication has been duly executed by the Bond Registrar. Such executed certificate of authentication upon any Bond shall be conclusive evidence that such Bond has been duly authenticated and delivered under this Bond Resolution. Upon authentication, the Bond Registrar shall deliver the Bonds to the Purchaser upon instructions of the Issuer or its representative. Section 208. Mutilated, Lost, Stolen or Destroyed Bonds. If (a) any mutilated Bond is surrendered to the Bond Registrar or the Bond Registrar receives evidence to its satisfaction of the destruction, loss or theft of any Bond, and (b) there is delivered to the Issuer and the Bond Registrar such security or indemnity as may be required by each of them, then, in the absence of notice to the Issuer or the Bond Registrar that such Bond has been acquired by a bona fide purchaser, the Issuer shall execute and, upon the Issuer's request, the Bond Registrar shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Bond, a new Bond of the same Stated Maturity and of like tenor and principal amount. If any such mutilated, destroyed, lost or stolen Bond has become or is about to become due and payable, the Issuer, in its discretion, may pay such Bond instead of issuing a new Bond. Upon the issuance of any new Bond under this Section, the Issuer and the Paying Agent may require the payment by the Owner of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Paying Agent) connected therewith. Every new Bond issued pursuant to this Section shall constitute a replacement of the prior obligation of the Issuer, and shall be entitled to all the benefits of this Bond Resolution equally and ratably with all other Outstanding Bonds. Section 209. Cancellation and Destruction of Bonds Upon Payment. All Bonds that have been paid or redeemed or that otherwise have been surrendered to the Paying Agent, either at or before Maturity, shall be cancelled by the Paying Agent immediately upon the payment, redemption and surrender thereof to the Paying Agent and subsequently destroyed in accordance with the customary practices of the Paying Agent. The Paying Agent shall execute a certificate in duplicate describing the Bonds so cancelled and destroyed and shall file an executed counterpart of such certificate with the Issuer. Section 210. Book-Entry Bonds; Securities Depository. The Issuer and Paying Agent have entered into a DTC Representation Letter with DTC. The Bonds shall initially be registered to Cede & Co., 600596.20227\BASICDOCS 12 the nominee for the Securities Depository, and no Beneficial Owner will receive certificates representing their respective interests in the Bonds, except in the event the Bond Registrar issues Replacement Bonds as provided in this Section. It is anticipated that during the term of the Bonds, the Securities Depository will make book-entry transfers among its Participants and receive and transmit payment of principal of, premium, if any, and interest on, the Bonds to the Participants until and unless the Bond Registrar authenticates and delivers Replacement Bonds to the Beneficial Owners as described in the following paragraph. The Issuer may decide, subject to the requirements of the Operational Arrangements of DTC ( or a successor Securities Depository), and the following provisions of this section to discontinue use of the system of book-entry transfers through DTC ( or a successor Securities Depository): (a) If the Issuer determines (1) that the Securities Depository is unable to properly discharge its responsibilities, or (2) that the Securities Depository is no longer qualified to act as a securities depository and registered clearing agency under the Securities and Exchange Act of 1934, as amended, or (3) that the continuation of a book-entry system to the exclusion of any Bonds being issued to any Owner other than Cede & Co. is no longer in the best interests of the Beneficial Owners of the Bonds; or (b) if the Bond Registrar receives written notice from Participants having interests in not less than 50% of the Bonds Outstanding, as shown on the records of the Securities Depository (and certified to such effect by the Securities Depository), that the continuation of a book-entry system to the exclusion of any Bonds being issued to any Owner other than Cede & Co. is no longer in the best interests of the Beneficial Owners of the Bonds, then the Bond Registrar shall notify the Owners of such determination or such notice and of the availability of certificates to Owners requesting the same, and the Bond Registrar shall register in the name of and authenticate and deliver Replacement Bonds to the Beneficial Owners or their nominees in principal amounts representing the interest of each, making such adjustments as it may find necessary or appropriate as to accrued interest and previous calls for redemption; provided, that in the case of a determination under (a)(l) or (a)(2) of this paragraph, the Issuer, with the consent of the Bond Registrar, may select a successor securities depository in accordance with the following paragraph to effect book-entry transfers. In such event, all references to the Securities Depository herein shall relate to the period of time when the Securities Depository has possession of at least one Bond. Upon the issuance of Replacement Bonds, all references herein to obligations imposed upon or to be performed by the Securities Depository shall be deemed to be imposed upon and performed by the Bond Registrar, to the extent applicable with respect to such Replacement Bonds. If the Securities Depository resigns and the Issuer, the Bond Registrar or Owners are unable to locate a qualified successor of the Securities Depository in accordance with the following paragraph, then the Bond Registrar shall authenticate and cause delivery of Replacement Bonds to Owners, as provided herein. The Bond Registrar may rely on information from the Securities Depository and its Participants as to the names of the Beneficial Owners of the Bonds. The cost of printing, registration, authentication, and delivery of Replacement Bonds shall be paid for by the Issuer. In the event the Securities Depository resigns, is unable to properly discharge its responsibilities, or is no longer qualified to act as a securities depository and registered clearing agency under the Securities and Exchange Act of 1934, as amended, the Issuer may appoint a successor Securities Depository provided the Bond Registrar receives written evidence satisfactory to the Bond Registrar with respect to the ability of the successor Securities Depository to discharge its responsibilities. Any such successor Securities Depository shall be a securities depository which is a registered clearing agency under the Securities and Exchange Act of 1934, as amended, or other applicable statute or regulation that operates a securities depository upon reasonable and customary terms. The Bond Registrar upon its receipt of a Bond or Bonds 600596.20227\BASICDOCS 13 for cancellation shall cause the delivery of Bonds to the successor Securities Depository in an Authorized Denominations and form as provided herein. Section 211. Nonpresentment of Bonds. If any Bond is not presented for payment when the principal thereof becomes due at Maturity, if funds sufficient to pay such Bond have been made available to the Paying Agent all liability of the Issuer to the Owner thereof for the payment of such Bond shall forthwith cease, determine and be completely discharged, and thereupon it shall be the duty of the Paying Agent to hold such funds, without liability for interest thereon, for the benefit of the Owner of such Bond, who shall thereafter be restricted exclusively to such funds for any claim of whatever nature on his part under this Bond Resolution or on, or with respect to, said Bond. If any Bond is not presented for payment within four (4) years following the date when such Bond becomes due at Maturity, the Paying Agent shall repay, without liability for interest thereon, to the Issuer the funds theretofore held by it for payment of such Bond, and such Bond shall, subject to the defense of any applicable statute of limitation, thereafter be an unsecured obligation of the Issuer, and the Owner thereof shall be entitled to look only to the Issuer for payment, and then only to the extent of the amount so repaid to it by the Paying Agent, and the Issuer shall not be liable for any interest thereon and shall not be regarded as a trustee of such money. Section 212. Preliminary and Final Official Statement. The Issuer hereby authorizes and approves the Preliminary Official Statement. For the purpose of enabling the Purchaser to comply with the requirements of Section (b )( l) of the SEC Rule, the Issuer hereby deems the information regarding the Issuer contained in the Preliminary Official Statement to be "final" as of its date, except for the omission of such information as is permitted by Section (b )( 1) of the SEC Rule, and the appropriate officers of the Issuer are hereby authorized, if requested, to provide the Purchaser a letter or certification to such effect and to take such other actions or execute such other documents as such officers in their reasonable judgment deem necessary to enable the Purchaser to comply with the requirement of the SEC Rule. The Official Statement is hereby authorized to be prepared by supplementing, amending and completing the Preliminary Official Statement, with such changes and additions thereto as are necessary to conform to and describe the transaction. The Mayor and Finance Director are hereby authorized to execute the Official Statement as so supplemented, amended and completed, and the use and public distribution of the Official Statement by the Purchaser in connection with the reoffering of the Bonds is hereby authorized. The proper officials of the Issuer are hereby authorized to execute and deliver a certificate pertaining to such Official Statement as prescribed therein, dated as of the Issue Date. The Issuer agrees to provide to the Purchaser within seven business days of the date of the sale of Bonds sufficient copies of the Official Statement to enable the Purchaser to comply with the requirements of the SEC Rule and Rule G-32 of the Municipal Securities Rulemaking Board. Section 213. Sale of the Bonds. The sale of the Bonds to the Purchaser is hereby approved and confirmed. The Mayor and Finance Director are hereby authorized to execute the official bid form submitted by the Purchaser. Delivery of the Bonds shall be made to the Purchaser on the Issue Date (which shall be as soon as practicable after the adoption of this Bond Resolution), upon payment of the Purchase Price. 600596.20227\BASICDOCS 14 ARTICLE III REDEMPTION OF BONDS Section 301. Redemption by Issuer. Optional Redemption. At the option of the Issuer, Bonds maturing on October 1 in the years 2030, and thereafter, will be subject to redemption and payment prior to their Stated Maturity on October 1, 2029, and thereafter, as a whole or in part (selection of maturities and the amount of Bonds of each maturity to be redeemed to be determined by the Issuer in such equitable manner as it may determine) at any time, at the Redemption Price of 100% (expressed as a percentage of the principal amount), plus accrued interest to the Redemption Date. Mandatory Redemption. (a) 2040 Term Bonds. The 2040 Term Bonds shall be subject to mandatory redemption and payment prior to Stated Maturity pursuant to the mandatory redemption requirements of this Section at a Redemption Price equal to 100% of the principal amount thereof plus accrued interest to the Redemption Date. The taxes levied in Article IV hereof which are to be deposited into the Debt Service Account shall be sufficient to redeem, and the Issuer shall redeem on October 1 in each year, the following principal amounts of such 2040 Term Bonds: *Final Maturity Principal Amount $110,000 115,000 120,000 Year 2038 2039 2040* (b) 2042 Term Bonds. The 2042 Term Bonds shall be subject to mandatory redemption and payment prior to Stated Maturity pursuant to the mandatory redemption requirements of this Section at a Redemption Price equal to 100% of the principal amount thereof plus accrued interest to the Redemption Date. The taxes levied in Article /Vhereofwhich are to be deposited into the Debt Service Account shall be sufficient to redeem, and the Issuer shall redeem on October 1 in each year, the following principal amounts of such 2042 Term Bonds: *Final Maturity Principal Amount $120,000 125,000 Year 2041 2042* At its option, to be exercised on or before the 45th day next preceding any mandatory Redemption Date, the Issuer may: (1) deliver to the Paying Agent for cancellation Term Bonds subject to mandatory redemption on said mandatory Redemption Date, in any aggregate principal amount desired; or (2) furnish the Paying Agent funds, together with appropriate instructions, for the purpose of purchasing any Term Bonds subject to mandatory redemption on said mandatory Redemption Date from any Owner thereof whereupon the Paying Agent shall expend such funds for such purpose to such extent as may be practical; or (3) receive a credit with respect to the mandatory redemption obligation of the Issuer under this Section for any Term Bonds subject to mandatory redemption on said mandatory Redemption Date which, prior to 600596.20227\BASICDOCS 15 such date, have been redeemed ( other than through the operation of the mandatory redemption requirements of this subsection) and cancelled by the Paying Agent and not theretofore applied as a credit against any redemption obligation under this subsection. Each Term Bond so delivered or previously purchased or redeemed shall be credited at 100% of the principal amount thereof on the obligation of the Issuer to redeem Term Bonds of the same Stated Maturity on such mandatory Redemption Date, and any excess of such amount shall be credited on future mandatory redemption obligations for Term Bonds of the same Stated Maturity as designated by the Issuer, and the principal amount of Term Bonds to be redeemed by operation of the requirements of this Section shall be accordingly reduced. If the Issuer intends to exercise any option granted by the provisions of clauses (1), (2) or (3) above, the Issuer will, on or before the 45th day next preceding each mandatory Redemption Date, furnish the Paying Agent a written certificate indicating to what extent the provisions of said clauses (1), (2) and (3) are to be complied with, with respect to such mandatory redemption payment. Section 302. Selection of Bonds to be Redeemed. Bonds shall be redeemed only in an Authorized Denomination. When less than all of the Bonds are to be redeemed and paid prior to their Stated Maturity, such Bonds shall be redeemed in such manner as the Issuer shall determine. Bonds of less than a full Stated Maturity shall be selected by the Bond Registrar in a minimum Authorized Denomination of principal amount in such equitable manner as the Bond Registrar may determine. In the case of a partial redemption of Bonds by lot when Bonds of denominations greater than a minimum Authorized Denomination are then Outstanding, then for all purposes in connection with such redemption a minimum Authorized Denomination of face value shall be treated as though it were a separate Bond of the denomination of a minimum Authorized Denomination. If it is determined that one or more, but not all, of a minimum Authorized Denomination of face value represented by any Bond is selected for redemption, then upon notice of intention to redeem a minimum Authorized Denomination, the Owner or the Owner's duly authorized agent shall forthwith present and surrender such Bond to the Bond Registrar: (1) for payment of the Redemption Price and interest to the Redemption Date of a minimum Authorized Denomination of face value called for redemption, and (2) for exchange, without charge to the Owner thereof, for a new Bond or Bonds of the aggregate principal amount of the unredeemed portion of the principal amount of such Bond. If the Owner of any such Bond fails to present such Bond to the Paying Agent for payment and exchange as aforesaid, such Bond shall, nevertheless, become due and payable on the redemption date to the extent of a minimum Authorized Denomination of face value called for redemption (and to that extent only). Section 303. Notice and Effect of Call for Redemption. In the event the Issuer desires to call the Bonds for redemption prior to maturity, written notice of such intent shall be provided to the Bond Registrar in accordance with K.S.A. 10-129, as amended, not less than 45 days prior to the Redemption Date. The Bond Registrar shall call Bonds for redemption and payment and shall give notice of such redemption as herein provided upon receipt by the Bond Registrar at least 45 days prior to the Redemption Date of written instructions of the Issuer specifying the principal amount, Stated Maturities, Redemption Date and Redemption Prices of the Bonds to be called for redemption. The foregoing provisions of this paragraph shall not apply in the case of any mandatory redemption of Term Bonds hereunder, and Term Bonds shall be called by the Paying Agent for redemption pursuant to such mandatory redemption requirements without the necessity of any action by the Issuer and whether or not the Paying Agent holds moneys available and sufficient to effect the required redemption. Unless waived by any Owner of Bonds to be redeemed, if the Issuer shall call any Bonds for redemption and payment prior to the Stated Maturity thereof, the Issuer shall give written notice of its intention to call and pay said Bonds to the Bond Registrar and the Purchaser. In addition, the Issuer shall cause the Bond Registrar to give written notice of redemption to the Owners of said Bonds. Each of said 600596.20227\BASICDOCS 16 written notices shall be deposited in the United States first class mail not less than 30 days prior to the Redemption Date. All official notices of redemption shall be dated and shall contain the following information: (a) the Redemption Date; (b) the Redemption Price; ( c) if less than all Outstanding Bonds are to be redeemed, the identification ( and, in the case of partial redemption of any Bonds, the respective principal amounts) of the Bonds to be redeemed; ( d) a statement that on the Redemption Date the Redemption Price will become due and payable upon each such Bond or portion thereof called for redemption and that interest thereon shall cease to accrue from and after the Redemption Date; and (e) the place where such Bonds are to be surrendered for payment of the Redemption Price, which shall be the principal office of the Paying Agent. The failure of any Owner to receive notice given as heretofore provided or an immaterial defect therein shall not invalidate any redemption. Prior to any Redemption Date, the Issuer shall deposit with the Paying Agent an amount of money sufficient to pay the Redemption Price of all the Bonds or portions of Bonds that are to be redeemed on such Redemption Date. For so long as the Securities Depository is effecting book-entry transfers of the Bonds, the Bond Registrar shall provide the notices specified in this Section to the Securities Depository. It is expected that the Securities Depository shall, in tum, notify its Participants and that the Participants, in tum, will notify or cause to be notified the Beneficial Owners. Any failure on the part of the Securities Depository or a Participant, or failure on the part of a nominee of a Beneficial Owner of a Bond (having been mailed notice from the Bond Registrar, the Securities Depository, a Participant or otherwise) to notify the Beneficial Owner of the Bond so affected, shall not affect the validity of the redemption of such Bond. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds to be redeemed shall become due and payable on the Redemption Date, at the Redemption Price therein specified, and from and after the Redemption Date (unless the Issuer defaults in the payment of the Redemption Price) such Bonds or portion of Bonds shall cease to bear interest. Upon surrender of such Bonds for redemption in accordance with such notice, the Redemption Price of such Bonds shall be paid by the Paying Agent. Installments of interest due on or prior to the Redemption Date shall be payable as herein provided for payment of interest. Upon surrender for any partial redemption of any Bond, there shall be prepared for the Owner a new Bond or Bonds of the same Stated Maturity in the amount of the unpaid principal as provided herein. All Bonds that have been surrendered for redemption shall be cancelled and destroyed by the Paying Agent as provided herein and shall not be reissued. In addition to the foregoing notice, the Issuer shall provide such notices of redemption as are required by the Disclosure Undertaking. Further notice may be given by the Issuer or the Bond Registrar on behalf of the Issuer as set out below, but no defect in said further notice nor any failure to give all or any portion of such further notice shall in any manner defeat the effectiveness of a call for redemption if official notice thereof is given as above prescribed: 600596.20227\BASICDOCS 17 (a) Each further notice of redemption given hereunder shall contain the information required above for an official notice of redemption plus (1) the CUSIP numbers of all Bonds being redeemed; (2) the date of issue of the Bonds as originally issued; (3) the rate of interest borne by each Bond being redeemed; (4) the maturity date of each Bond being redeemed; and (5) any other descriptive information needed to identify accurately the Bonds being redeemed. (b) Each further notice of redemption shall be sent at least one day before the mailing of notice to Owners by first class, registered or certified mail or overnight delivery, as determined by the Bond Registrar, to all registered securities depositories then in the business of holding substantial amounts of obligations of types comprising the Bonds and to one or more national information services that disseminate notices of redemption of obligations such as the Bonds. ( c) Each check or other transfer of funds issued for the payment of the Redemption Price of Bonds being redeemed shall bear or have enclosed the CUSIP number of the Bonds being redeemed with the proceeds of such check or other transfer. The Paying Agent is also directed to comply with any mandatory standards then in effect for processing redemptions of municipal securities established by the State or the Securities and Exchange Commission. Failure to comply with such standards shall not affect or invalidate the redemption of any Bond. ARTICLE IV SECURITY FOR BONDS Section 401. Security for the Bonds. The Bonds shall be general obligations of the Issuer payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of the Improvements and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The balance of the principal and interest on the Bonds is payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The full faith, credit and resources of the Issuer are hereby irrevocably pledged for the prompt payment of the principal of and interest on the Bonds as the same become due. Section 402. Levy and Collection of Annual Tax; Transfer to Debt Service Account. The Governing Body shall annually make provision for the payment of principal of, premium, if any, and interest on the Bonds as the same become due by, to the extent necessary, levying and collecting the necessary taxes and/or assessments upon all of the taxable tangible property within the Issuer in the manner provided by law. The taxes and/or assessments referred to above shall be extended upon the tax rolls in each of the several years, respectively, and shall be levied and collected at the same time and in the same manner as the other ad valorem taxes of the Issuer are levied and collected. The proceeds derived from said taxes shall be deposited in the Bond and Interest Fund, shall be kept separate and apart from all other funds of the Issuer shall thereafter be transferred to the Debt Service Account and shall be used solely for the payment of the principal of and interest on the Bonds as and when the same become due, taking into account any scheduled mandatory redemptions, and the fees and expenses of the Paying Agent. 600596.20227\BASICDOCS 18 If at any time said taxes and/or assessments are not collected in time to pay the principal of or interest on the Bonds when due, the Treasurer is hereby authorized and directed to pay said principal or interest out of the general funds of the Issuer and to reimburse said general funds for money so expended when said taxes are collected. ARTICLEV ESTABLISHMENT OF FUNDS AND ACCOUNTS DEPOSIT AND APPLICATION OF BOND PROCEEDS Section 501. Creation of Funds and Accounts. Simultaneously with the issuance of the Bonds, there shall be created within the Treasury of the Issuer the following Funds and Accounts: (a) Improvement Fund for General Obligation Internal Improvement Bonds, Series 2022-A. (b) Debt Service Account for General Obligation Internal Improvement Bonds, Series 2022-A (within the Bond and Interest Fund). (c) Rebate Fund for General Obligation Internal Improvement Bonds, Series 2022-A. ( d) Costs of Issuance Account for General Obligation Internal Improvement Bonds, Series 2022-A. The Funds and Accounts established herein shall be administered in accordance with the provisions of this Bond Resolution so long as the Bonds are Outstanding. Section 502. Deposit of Bond Proceeds. The net proceeds received from the sale of the Bonds shall be deposited simultaneously with the delivery of the Bonds as follows: (a) An amount necessary to pay the Costs of Issuance shall be deposited in the Costs of Issuance Account. (b) The remaining balance of the proceeds derived from the sale of the Bonds shall be deposited in the Improvement Fund. Section 503. Application of Moneys in the Improvement Fund. Moneys in the Improvement Fund shall be used for the sole purpose of: (a) paying the costs of the Improvements, in accordance with the plans and specifications therefor approved by the Governing Body and on file in the office of the Clerk, including any alterations in or amendments to said plans and specifications deemed advisable and approved by the Governing Body; (b) paying interest on the Bonds during construction of the Improvements; (c)paying Costs oflssuance; and (d) retiring the Refunded Notes. Upon completion of the Improvements, any surplus remaining in the Improvement Fund shall be deposited in the Debt Service Account. Section 504. Substitution of Improvements; Reallocation of Proceeds. (a) The Issuer may elect for any reason to substitute or add other public improvements to be financed with proceeds of the Bonds provided the following conditions are met: ( 1) the Substitute Improvement and the issuance of general obligation bonds to pay the cost of the Substitute Improvement 600596.20227\BASICDOCS 19 has been duly authorized by the Governing Body in accordance with the laws of the State; (2) a resolution or ordinance authorizing the use of the proceeds of the Bonds to pay the Financeable Costs of the Substitute Improvement has been duly adopted by the Governing Body pursuant to this Section, (3) the Attorney General of the State has approved the amendment made by such resolution or ordinance to the transcript of proceedings for the Bonds to include the Substitute Improvements; and (4) the use of the proceeds of the Bonds to pay the Financeable Cost of the Substitute Improvement will not adversely affect the tax-exempt status of the Bonds under State or federal law. (b) The Issuer may reallocate expenditure of Bond proceeds among all Improvements financed by the Bonds; provided the following conditions are met: (1) the reallocation is approved by the Governing Body; (2) the reallocation shall not cause the proceeds of the Bonds allocated to any Improvement to exceed the Financeable Costs of the Improvement; and (3) the reallocation will not adversely affect the tax-exempt status of the Bonds under State or federal law. Section 505. Application of Moneys in Debt Service Account. All amounts paid and credited to the Debt Service Account shall be expended and used by the Issuer for the sole purpose of paying the principal or Redemption Price of and interest on the Bonds as and when the same become due and the usual and customary fees and expenses of the Bond Registrar and Paying Agent. The Treasurer is authorized and directed to withdraw from the Debt Service Account sums sufficient to pay both principal or Redemption Price of and interest on the Bonds and the fees and expenses of the Bond Registrar and Paying Agent as and when the same become due, and to forward such sums to the Paying Agent in a manner which ensures that the Paying Agent will receive immediately available funds in such amounts on or before the Business Day immediately preceding the dates when such principal, interest and fees of the Bond Registrar and Paying Agent will become due. If, through the lapse of time or otherwise, the Owners of Bonds are no longer entitled to enforce payment of the Bonds or the interest thereon, the Paying Agent shall return said funds to the Issuer. All moneys deposited with the Paying Agent shall be deemed to be deposited in accordance with and subject to all of the provisions contained in this Bond Resolution and shall be held in trust by the Paying Agent for the benefit of the Owners of the Bonds entitled to payment from such moneys. Any moneys or investments remaining in the Debt Service Account after the retirement of the Bonds shall be transferred and paid into the Bond and Interest Fund. Section 506. Application of Moneys in the Rebate Fund. (a) There shall be deposited in the Rebate Fund such amounts as are required to be deposited therein pursuant to the Federal Tax Certificate. All money at any time deposited in the Rebate Fund shall be held in trust, to the extent required to satisfy the Rebate Amount (as defined in the Federal Tax Certificate), for payment to the United States of America, and neither the Issuer nor the Owner of any Bonds shall have any rights in or claim to such money. All amounts deposited into or on deposit in the Rebate Fund shall be governed by this Section and the Federal Tax Certificate. (b) The Issuer shall periodically determine the arbitrage rebate, if any, under Code§ 148(f) in accordance with the Federal Tax Certificate, and the Issuer shall make payments to the United States of America at the times and in the amounts determined under the Federal Tax Certificate. Any moneys remaining in the Rebate Fund after redemption and payment of all of the Bonds and payment and satisfaction of any Rebate Amount, or provision made therefor, shall be deposited into the Bond and Interest Fund. (c) Notwithstanding any other provision of this Bond Resolution, including in particular Article VII hereof, the obligation to pay arbitrage rebate to the United States of America and to comply 600596.20227\BASICDOCS 20 with all other requirements of this Section and the Federal Tax Certificate shall survive the defeasance or payment in full of the Bonds. Section 507. Deposits and Investment of Moneys. Moneys in each of the Funds and Accounts shall be deposited in accordance with laws of the State, in a bank, savings and loan association or savings bank organized under the laws of the State, any other state or the United States: (a) which has a main or branch office located in the Issuer; or (b) if no such entity has a main or branch office located in the Issuer, with such an entity that has a main or branch office located in the county or counties in which the Issuer is located. All such depositaries shall be members of the Federal Deposit Insurance Corporation, or otherwise as permitted by State law. All such deposits shall be invested in Permitted Investments as set forth in this Article or shall be adequately secured as provided by the laws of the State. All moneys held in the Funds and Accounts shall be kept separate and apart from all other funds of the Issuer so that there shall be no commingling with any other funds of the Issuer. Moneys held in any Fund or Account may be invested in accordance with this Bond Resolution and the Federal Tax Certificate in Permitted Investments; provided, however, that no such investment shall be made for a period extending longer than to the date when the moneys invested may be needed for the purpose for which such fund was created. All earnings on any investments held in any Fund or Account shall accrue to and become a part of such Fund or Account; provided that, during the period of construction of the Improvements, earnings on the investment of such funds may, at the discretion of the Issuer, be credited to the Debt Service Account. Section 508. Application of Moneys in the Costs of Issuance Account. Moneys in the Costs of Issuance Account shall be used by the Issuer to pay the Costs of Issuance. Any funds remaining in the Costs of Issuance Account, after payment of all Costs of Issuance, but not later than the later of 30 days prior to the first Stated Maturity of principal or one year after the date of issuance of the Bonds, shall be transferred to the Debt Service Account. ARTICLE VI DEFAULT AND REMEDIES Section 601. Remedies. The provisions of the Bond Resolution, including the covenants and agreements herein contained, shall constitute a contract between the Issuer and the Owners of the Bonds. If an Event of Default occurs and shall be continuing, the Owner or Owners of not less than 10% in principal amount of the Bonds at the time Outstanding shall have the right for the equal benefit and protection of all Owners of Bonds similarly situated: (a) by mandamus or other suit, action or proceedings at law or in equity to enforce the rights of such Owner or Owners against the Issuer and its officers, agents and employees, and to require and compel duties and obligations required by the provisions of the Bond Resolution or by the Constitution and laws of the State; (b) by suit, action or other proceedings in equity or at law to require the Issuer, its officers, agents and employees to account as if they were the trustees of an express trust; and (c) by suit, action or other proceedings in equity or at law to enjoin any acts or things which may be unlawful or in violation of the rights of the Owners of the Bonds. 600596.20227\BASICDOCS 21 Section 602. Limitation on Rights of Owners. The covenants and agreements of the Issuer contained herein and in the Bonds shall be for the equal benefit, protection, and security of the Owners of any or all of the Bonds, all of which Bonds shall be of equal rank and without preference or priority of one Bond over any other Bond in the application of the funds herein pledged to the payment of the principal of and the interest on the Bonds, or otherwise, except as to rate of interest, date of maturity and right of prior redemption as provided in this Bond Resolution. No one or more Owners secured hereby shall have any right in any manner whatever by his or their action to affect, disturb or prejudice the security granted and provided for herein, or to enforce any right hereunder, except in the manner herein provided, and all proceedings at law or in equity shall be instituted, had and maintained for the equal benefit of all Outstanding Bonds. Section 603. Remedies Cumulative. No remedy conferred herein upon the Owners is intended to be exclusive of any other remedy, but each such remedy shall be cumulative and in addition to every other remedy and may be exercised without exhausting and without regard to any other remedy conferred herein. No waiver of any default or breach of duty or contract by the Owner of any Bond shall extend to or affect any subsequent default or breach of duty or contract or shall impair any rights or remedies thereon. No delay or omission of any Owner to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or acquiescence therein. Every substantive right and every remedy conferred upon the Owners of the Bonds by this Bond Resolution may be enforced and exercised from time to time and as often as may be deemed expedient. If action or proceedings taken by any Owner on account of any default or to enforce any right or exercise any remedy has been discontinued or abandoned for any reason, or shall have been determined adversely to such Owner, then, and in every such case, the Issuer and the Owners of the Bonds shall, subject to any determination in such action or proceeding or applicable law of the State, be restored to their former positions and rights hereunder, respectively, and all rights, remedies, powers and duties of the Owners shall continue as if no such suit, action or other proceedings had been brought or taken. ARTICLE VII DEFEASANCE Section 701. Defeasance. When any or all of the Bonds, redemption premium, if any, or scheduled interest payments thereon have been paid and discharged, then the requirements contained in this Bond Resolution and the pledge of the Issuer's faith and credit hereunder and all other rights granted hereby shall terminate with respect to the Bonds or scheduled interest payments thereon so paid and discharged. Bonds, redemption premium, if any, or scheduled interest payments thereon shall be deemed to have been paid and discharged within the meaning of this Bond Resolution if there has been deposited with the Paying Agent, or other commercial bank or trust company located in the State and having full trust powers, at or prior to the Stated Maturity or Redemption Date of said Bonds or the interest payments thereon, in trust for and irrevocably appropriated thereto, moneys and/or Defeasance Obligations which, together with the interest to be earned on any such Defeasance Obligations, will be sufficient for the payment of the principal of or Redemption Price of said Bonds and/or interest accrued to the Stated Maturity or Redemption Date, or if default in such payment has occurred on such date, then to the date of the tender of such payments. If the amount to be so deposited is based on the Redemption Price of any Bonds, no such satisfaction shall occur until (a) the Issuer has elected to redeem such Bonds, and (b) either notice of such redemption has been given, or the Issuer has given irrevocable instructions, or shall have provided for an escrow agent to give irrevocable instructions, to the Bond Registrar to give such notice of redemption in compliance with Article III hereof. Any money and Defeasance Obligations that at any time shall be deposited with the Paying Agent or other commercial bank or trust company by or on behalf of the Issuer, for the purpose of 600596.20227\BASICDOCS 22 paying and discharging any of the Bonds, shall be and are hereby assigned, transferred and set over to the Paying Agent or other bank or trust company in trust for the respective Owners of the Bonds, and such moneys shall be and are hereby irrevocably appropriated to the payment and discharge thereof. All money and Defeasance Obligations deposited with the Paying Agent or such bank or trust company shall be deemed to be deposited in accordance with and subject to all of the provisions of this Bond Resolution. ARTICLE VIII TAX COVENANTS Section 801. General Covenants. The Issuer covenants and agrees that it will comply with: (a) all applicable provisions of the Code necessary to maintain the exclusion from gross income for federal income tax purposes of the interest on the Bonds; and (b) all provisions and requirements of the Federal Tax Certificate. The Mayor and Finance Director are hereby authorized and directed to execute the Federal Tax Certificate in a form approved by Bond Counsel, for and on behalf of and as the act and deed of the Issuer. The Issuer will, in addition, adopt such other ordinances or resolutions and take such other actions as may be necessary to comply with the Code and with all other applicable future laws, regulations, published rulings and judicial decisions, in order to ensure that the interest on the Bonds will remain excluded from federal gross income, to the extent any such actions can be taken by the Issuer. Section 802. Survival of Covenants. The covenants contained in this Article and in the Federal Tax Certificate shall remain in full force and effect notwithstanding the defeasance of the Bonds pursuant to Article VII hereof or any other provision of this Bond Resolution until such time as is set forth in the Federal Tax Certificate. ARTICLE IX CONTINUING DISCLOSURE REQUIREMENTS Section 901. Disclosure Requirements. The Issuer hereby covenants with the Purchaser and the Beneficial Owners to provide and disseminate such information as is required by the SEC Rule and as further set forth in the Disclosure Undertaking, the provisions of which are incorporated herein by reference. Such covenant shall be for the benefit of and enforceable by the Purchaser and the Beneficial Owners. Section 902. Failure to Comply with Continuing Disclosure Requirements. In the event the Issuer fails to comply in a timely manner with its covenants contained in the preceding section, the Purchaser and/or any Beneficial Owner may make demand for such compliance by written notice to the Issuer. In the event the Issuer does not remedy such noncompliance within 10 days of receipt of such written notice, the Purchaser or any Beneficial Owner may in its discretion, without notice or demand, proceed to enforce compliance by a suit or suits in equity for the specific performance of such covenant or agreement contained in the preceding section or for the enforcement of any other appropriate legal or equitable remedy, as the Purchaser and/or any Beneficial Owner shall deem effectual to protect and enforce any of the duties of the Issuer under such preceding section. Notwithstanding any other provision of this Bond Resolution, failure of the Issuer to comply with its covenants contained in the preceding section shall not be considered an Event of Default under this Bond Resolution. 600596.20227\BASICDOCS 23 ARTICLEX MISCELLANEOUS PROVISIONS Section 1001. Annual Audit. Annually, promptly after the end of the Fiscal Year, the Issuer will cause an audit to be made of the financial statements of the Issuer for the preceding Fiscal Year by an Independent Accountant. Within 30 days after the completion of each such audit, a copy thereof shall be filed in the office of the Clerk. Such audit shall at all times during the usual business hours be open to the examination and inspection by any taxpayer, any Owner of any of the Bonds, or by anyone acting for or on behalf of such taxpayer or Owner. Upon payment of the reasonable cost of preparing and mailing the same, a copy of any annual audit will, upon request, be sent to any Owner or prospective Owner. As soon as possible after the completion of the annual audit, the Governing Body shall review such audit, and if the audit discloses that proper provision has not been made for all of the requirements of this Bond Resolution, the Issuer shall promptly cure such deficiency. Section 1002. Amendments. The rights and duties of the Issuer and the Owners, and the terms and provisions of the Bonds or of this Bond Resolution, may be amended or modified at any time in any respect by ordinance or resolution of the Issuer with the written consent of the Owners of not less than a majority in principal amount of the Bonds then Outstanding, such consent to be evidenced by an instrument or instruments executed by such Owners and duly acknowledged or proved in the manner of a deed to be recorded, and such instrument or instruments shall be filed with the Clerk, but no such modification or alteration shall: (a) extend the maturity of any payment of principal or interest due upon any Bond; (b) effect a reduction in the amount which the Issuer is required to pay as principal of or interest on any Bond; ( c) permit preference or priority of any Bond over any other Bond; or ( d) reduce the percentage in principal amount of Bonds required for the written consent to any modification or alteration of the provisions of this Bond Resolution. Any provision of the Bonds or of this Bond Resolution may, however, be amended or modified by ordinance or resolution duly adopted by the Governing Body at any time in any legal respect with the written consent of the Owners of all of the Bonds at the time Outstanding. Without notice to or the consent of any Owners, the Issuer may amend or supplement this Bond Resolution for the purpose of curing any formal defect, omission, inconsistency or ambiguity herein, to grant to or confer upon the Owners any additional rights, remedies, powers or authority that may lawfully be granted to or conferred upon the Owners, to more precisely identify the Improvements, to reallocate proceeds of the Bonds among Improvements, to provide for Substitute Improvements, to conform this Bond Resolution to the Code or future applicable federal law concerning tax-exempt obligations, or in connection with any other change therein which is not materially adverse to the interests of the Owners. Every amendment or modification of the provisions of the Bonds or of this Bond Resolution, to which the written consent of the Owners is given, as above provided, shall be expressed in a resolution or ordinance adopted by the Governing Body amending or supplementing the provisions of this Bond Resolution and shall be deemed to be a part of this Bond Resolution. A certified copy of every such amendatory or supplemental ordinance or resolution, if any, and a certified copy of this Bond Resolution 600596.20227\BASICDOCS 24 shall always be kept on file in the office of the Clerk, and shall be made available for inspection by the Owner of any Bond or a prospective purchaser or owner of any Bond authorized by this Bond Resolution, and upon payment of the reasonable cost of preparing the same, a certified copy of any such amendatory or supplemental ordinance or resolution or of this Bond Resolution will be sent by the Clerk to any such Owner or prospective Owner. Any and all modifications made in the manner hereinabove provided shall not become effective until there has been filed with the Clerk a copy of the ordinance or resolution of the Issuer hereinabove provided for, duly certified, as well as proof of any required consent to such modification by the Owners of the Bonds then Outstanding. It shall not be necessary to note on any of the Outstanding Bonds any reference to such amendment or modification. The Issuer shall furnish to the Paying Agent a copy of any amendment to the Bonds or this Bond Resolution which affects the duties or obligations of the Paying Agent under this Bond Resolution. Section 1003. Notices, Consents and Other Instruments by Owners. Any notice, consent, request, direction, approval or other instrument to be signed and executed by the Owners may be in any number of concurrent writings of similar tenor and may be signed or executed by such Owners in person or by agent appointed in writing. Proof of the execution of any such instrument or of the writing appointing any such agent and of the ownership of Bonds, if made in the following manner, shall be sufficient for any of the purposes of this Bond Resolution, and shall be conclusive in favor of the Issuer and the Paying Agent with regard to any action taken, suffered or omitted under any such instrument, namely: (a) The fact and date of the execution by any person of any such instrument may be proved by a certificate of any officer in any jurisdiction who by law has power to take acknowledgments within such jurisdiction that the person signing such instrument acknowledged before such officer the execution thereof, or by affidavit of any witness to such execution. (b) The fact of ownership of Bonds, the amount or amounts, numbers and other identification of Bonds, and the date of holding the same shall be proved by the Bond Register. In determining whether the Owners of the requisite principal amount of Bonds Outstanding have given any request, demand, authorization, direction, notice, consent or waiver under this Bond Resolution, Bonds owned by the Issuer shall be disregarded and deemed not to be Outstanding under this Bond Resolution, except that, in determining whether the Owners shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Bonds which the Owners know to be so owned shall be so disregarded. Notwithstanding the foregoing, Bonds so owned which have been pledged in good faith shall not be disregarded as aforesaid if the pledgee establishes to the satisfaction of the Owners the pledgee's right so to act with respect to such Bonds and that the pledgee is not the Issuer. Section 1004. Notices. Any notice, request, complaint, demand or other communication required or desired to be given or filed under this Bond Resolution shall be in writing, given to the Notice Representative at the Notice Address and shall be deemed duly given or filed if the same shall be: (a) duly mailed by registered or certified mail, postage prepaid; or (b) communicated via fax, with electronic or telephonic confirmatimi of receipt. Copies of such notices shall also be given to the Paying Agent. The Issuer, the Paying Agent and the Purchaser may from time to time designate, by notice given hereunder to the others of such parties, such other address to which subsequent notices, certificates or other communications shall be sent. All notices given by: (a) certified or registered mail as aforesaid shall be deemed duly given as of the date they are so mailed; (b) fax as aforesaid shall be deemed duly given as of the date of confirmation of 600596.20227\BASICDOCS 25 receipt. If, because of the temporary or permanent suspension of regular mail service or for any other reason, it is impossible or impractical to mail any notice in the manner herein provided, then such other form of notice as shall be made with the approval of the Paying Agent shall constitute a sufficient notice. Section 1005. Electronic Transactions. The transactions described in this Bond Resolution may be conducted, and documents related to the Bonds may be sent, received, executed, and stored, by electronic means or transmissions. Copies, telecopies, electronic files and other reproductions of original executed documents (or documents executed by electronic means or transmissions) shall be deemed to be authentic and valid counterparts of such documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. Section 1006. Further Authority. The officers and officials of the Issuer, including the Mayor, Finance Director and Clerk, are hereby authorized and directed to execute all documents and take such actions as they may deem necessary or advisable in order to carry out and perform the purposes of this Bond Resolution and to make ministerial alterations, changes or additions in the foregoing agreements, statements, instruments and other documents herein approved, authorized and confirmed which they may approve, and the execution or taking of such action shall be conclusive evidence of such necessity or advisability. Section 1007. Severability. If any section or other part of this Bond Resolution, whether large or small, is for any reason held invalid, the invalidity thereof shall not affect the validity of the other provisions of this Bond Resolution. Section 1008. Governing Law. This Bond Resolution shall be governed exclusively by and construed in accordance with the applicable laws of the State. Section 1009. Effective Date. This Bond Resolution shall take effect and be in full force from and after its adoption by the Governing Body. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20227\BASICDOCS 26 Mayor CERTIFICATE I hereby certify that the above and foregoing is a true and correct copy of the Bond Resolution of the Issuer adopted by the Governing Body on April 4, 2022, as the same appears of record in my office. DATED: April 4, 2022. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20227\BASICDOCS (Signature Page to Bond Resolution) EXHIBIT A (FORM OF BONDS) REGISTERED NUMBER REGISTERED $ Interest Rate: Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York Corporation (''DTC"), to the Issuer or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. UNITED STATES OF AMERICA STATE OF KANSAS COUNTY OF SALINE CITY OF SALINA GENERAL OBLIGATION INTERNAL IMPROVEMENT BOND SERIES 2022-A Maturity Date: Dated Date: April 28, 2022 CUSIP: REGISTERED OWNER: PRINCIPAL AMOUNT: KNOW ALL PERSONS BY THESE PRESENTS: That the City of Salina, in the County of Saline, State of Kansas (the "Issuer"), for value received, hereby acknowledges itself to be indebted and promises to pay to the Registered Owner shown above, or registered assigns, but solely from the source and in the manner herein specified, the Principal Amount shown above on the Maturity Date shown above, unless called for redemption prior to the Maturity Date, and to pay interest thereon at the Interest Rate per annum shown above (computed on the basis of a 360-day year of twelve 30-day months), from the Dated Date shown above, or from the most recent date to which interest has been paid or duly provided for, payable semiannually on April 1 and October 1 of each year, commencing April 1, 2023 (the "Interest Payment Dates"), until the Principal Amount has been paid. Method and Place of Payment. The principal or redemption price of this Bond shall be paid at maturity or upon earlier redemption to the person in whose name this Bond is registered at the maturity or redemption date thereof, upon presentation and surrender of this Bond at the principal office of the Treasurer of the State of Kansas, Topeka, Kansas (the "Paying Agent" and "Bond Registrar"). The interest payable on this Bond on any Interest Payment Date shall be paid to the person in whose name this Bond is registered on the registration books maintained by the Bond Registrar at the close of business on the Record Date(s) for such interest, which shall be the 15th day (whether or not a business day) of the calendar month 600596.20227\BASICDOCS A-1 next preceding the Interest Payment Date. Such interest shall be payable (a) by check or draft mailed by the Paying Agent to the address of such Registered Owner shown on the Bond Register or at such other address as is furnished to the Paying Agent in writing by such Registered Owner; or (b) in the case of an interest payment to Cede & Co. or any Owner of $500,000 or more in aggregate principal amount of Bonds by electronic transfer to such Owner upon written notice given to the Bond Registrar by such Registered Owner, not less than 15 days prior to the Record Date for such interest, containing the electronic transfer instructions including the bank, ABA routing number and account number to which such Registered Owner wishes to have such transfer directed. The principal or redemption price of and interest on the Bonds shall be payable in any coin or currency that, on the respective dates of payment thereof, is legal tender for the payment of public and private debts. Interest not punctually paid will be paid in the manner established in the within defined Bond Resolution. Definitions. Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the hereinafter defined Bond Resolution. Authorization of Bonds. This Bond is one of an authorized series of Bonds of the Issuer designated "General Obligation Internal Improvement Bonds, Series 2022-A," aggregating the principal amount of $7,840,000 (the "Bonds") issued for the purposes set forth in the Ordinance of the Issuer authorizing the issuance of the Bonds and the Resolution of the Issuer prescribing the form and details of the Bonds (collectively the "Bond Resolution"). The Bonds are issued by the authority of and in full compliance with the provisions, restrictions and limitations of the Constitution, particularly Art. 12 § 5 thereof, and laws of the State of Kansas, including K.S.A. 12-6a01 et seq., K.S.A. 12-685 et seq., K.S.A. 12-1736 et seq., K.S.A. 12-2104, as amended, and all other provisions of the laws of the State of Kansas applicable thereto. General Obligations. The Bonds constitute general obligations of the Issuer payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of the Improvements and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The balance of the principal and interest on the Bonds is payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The full faith, credit and resources of the Issuer are hereby irrevocably pledged for the prompt payment of the principal of and interest on the Bonds as the same become due. Redemption Prior to Maturity. The Bonds are subject to redemption prior to maturity as set forth in the Bond Resolution. Book-Entry System. The Bonds are being issued by means of a book-entry system with no physical distribution of bond certificates to be made except as provided in the Bond Resolution. One Bond certificate with respect to each date on which the Bonds are stated to mature or with respect to each form of Bonds, registered in the nominee name of the Securities Depository, is being issued and required to be deposited with the Securities Depository and immobilized in its custody. The book-entry system will evidence positions held in the Bonds by the Securities Depository's participants, beneficial ownership of the Bonds in authorized denominations being evidenced in the records of such participants. Transfers of ownership shall be effected on the records of the Securities Depository and its participants pursuant to rules and procedures established by the Securities Depository and its participants. The Issuer and the Bond Registrar will recognize the Securities Depository nominee, while the Registered Owner of this Bond, as the owner of this Bond for all purposes, including (i) payments of principal of, and redemption premium, if any, and interest on, this Bond, (ii) notices and (iii) voting. Transfer of principal, interest and any redemption premium payments to participants of the Securities Depository, and transfer of principal, 600596.20227\BASICDOCS A-2 interest and any redemption premium payments to beneficial owners of the Bonds by participants of the Securities Depository will be the responsibility of such participants and other nominees of such beneficial owners. The Issuer and the Bond Registrar will not be responsible or liable for such transfers of payments or for maintaining, supervising or reviewing the records maintained by the Securities Depository, the Securities Depository nominee, its participants or persons acting through such participants. While the Securities Depository nominee is the owner of this Bond, notwithstanding the provision hereinabove contained, payments of principal of, redemption premium, if any, and interest on this Bond shall be made in accordance with existing arrangements among the Issuer, the Bond Registrar and the Securities Depository. Transfer and Exchange. EXCEPT AS OTHERWISE PROVIDED IN THE BOND RESOLUTION, THIS GLOBAL BOND MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE SECURITIES DEPOSITORY OR TO A SUCCESSOR SECURITIES DEPOSITORY OR TO A NOMINEE OF A SUCCESSOR SECURITIES DEPOSITORY. This Bond may be transferred or exchanged, as provided in the Bond Resolution, only on the Bond Register kept for that purpose at the principal office of the Bond Registrar, upon surrender of this Bond, together with a written instrument of transfer or authorization for exchange satisfactory to the Bond Registrar duly executed by the Registered Owner or the Registered Owner's duly authorized agent, and thereupon a new Bond or Bonds in any Authorized Denomination of the same maturity and in the same aggregate principal amount shall be issued to the transferee in exchange therefor as provided in the Bond Resolution and upon payment of the charges therein prescribed. The Issuer shall pay all costs incurred in connection with the issuance, payment and initial registration of the Bonds and the cost of a reasonable supply of bond blanks. The Issuer and the Paying Agent may deem and treat the person in whose name this Bond is registered on the Bond Register as the absolute owner hereof for the purpose of receiving payment of, or on account of, the principal or redemption price hereof and interest due hereon and for all other purposes. The Bonds are issued in fully registered form in Authorized Denominations. Authentication. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Bond Resolution until the Certificate of Authentication and Registration hereon shall have been lawfully executed by the Bond Registrar. IT IS HEREBY DECLARED AND CERTIFIED that all acts, conditions, and things required to be done and to exist precedent to and in the issuance of this Bond have been properly done and performed and do exist in due and regular form and manner as required by the Constitution and laws of the State of Kansas, and that the total indebtedness of the Issuer, including this series of bonds, does not exceed any constitutional or statutory limitation. IN WITNESS WHEREOF, the Issuer has caused this Bond to be executed by the manual, electronic or facsimile signature of its Mayor and attested by the manual, electronic or facsimile signature of its Clerk, and its seal to be affixed hereto or imprinted hereon. CITY OF SALINA, KANSAS (Facsimile Seal) By: ----~<f=a=c=si=rm=·=1e~) _______ _ Mayor ATTEST: 600596.20227\BASICDOCS A-3 By: ____ {=f=ac=s=inn=·le=)~------- Clerk CERTIFICATE OF AUTHENTICATION AND REGISTRATION This Bond is one of a series of General Obligation Internal Improvement Bonds, Series 2022-A, of the City of Salina, Kansas, described in the within-mentioned Bond Resolution. Registration Date: ______ _ Office of the State Treasurer, Topeka, Kansas, as Bond Registrar and Paying Agent By ____________ _ Registration Number: 0322-085-042822-501 LEGAL OPINION The following is a true and correct copy of the approving legal opinion of Gilmore & Bell, P.C., Bond Counsel, which was dated and issued as of the date of original issuance and delivery of such Bonds: GILMORE & BELL, P.C. Attorneys at Law 100 N. Main Suite 800 Wichita, Kansas 67202 (PRINTED LEGAL OPINION) BOND ASSIGNMENT FOR VALUE RECEIVED, the undersigned do(es) hereby sell, assign and transfer to (Name and Address) (Social Security or Taxpayer Identification No.) the Bond to which this assignment is affixed in the outstanding principal amount of$ _____ , standing in the name of the undersigned on the books of the Bond Registrar. The undersigned do(es) hereby 600596.20227\BASICDOCS A-4 irrevocably constitute and appoint _________ as agent to transfer said Bond on the books of said Bond Registrar with full power of substitution in the premises. Dated ________ _ Name Social Security or Taxpayer Identification No. Signature (Sign here exactly as name(s) appear on the face of Certificate) Signature guarantee: By _______________ _ CERTIFICATE OF CLERK STATE OF KANSAS ) ) ss. COUNTY OF SALINE ) The undersigned, Clerk of the City of Salina, Kansas, does hereby certify that the within Bond has been duly registered in my office according to law as of April 28, 2022. WITNESS my hand and official seal. (Facsimile Seal) By: ----~(f_a_cs_i_rm_._le~) _______ _ Clerk CERTIFICATE OF STATE TREASURER OFFICE OF THE TREASURER, STATE OF KANSAS LYNN W. ROGERS, Treasurer of the State of Kansas, does hereby certify that a transcript of the proceedings leading up to the issuance of this Bond has been filed in the office of the State Treasurer, and that this Bond was registered in such office according to law on ______ _ WITNESS my hand and official seal. (Facsimile Seal) By: ____ _,(=fa=c=s=irm=·1e=-)....___ ______ _ Treasurer of the State of Kansas 600596.20227\BASICDOCS A-5 TRANSCRIPT CERTIFICATE $7,840,000 CITY OF SALINA, KANSAS Gilmore & Bell, P.C. 04/04/2022 GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2022-A DATED APRIL 28, 2022 The undersigned Mayor and Clerk of the City of Salina, Kansas (the "Issuer"), do hereby make this certificate for inclusion in the transcript of and as a part of the proceedings authorizing and providing for the issuance of the above described bonds (the "Bonds"); and do hereby certify as of April 4, 2022, as follows: 1. Meaning of Words and Terms. Capitalized words and terms used herein, unless otherwise defined herein or the context requires otherwise, shall have the same meanings ascribed to such words and terms in the hereinafter defined Bond Resolution authorizing the Bonds. 2. Organization. The Issuer is a legally constituted city of the first class organized and existing under the laws of the State of Kansas. 3. Transcript of Proceedings. The transcript of proceedings (the "Transcript") relating to the authorization and issuance of the Bonds is to the best of our knowledge, information and belief full and complete; none of such proceedings have been modified, amended or repealed, except as might be shown in the Transcript, and the facts stated in the Transcript still exist. In each and every instance where copies appear in the Transcript, such copies are true and correct duplicates of the original instruments now on file with the Clerk. 4. Newspaper. The Salina Journal was the official newspaper of the Issuer at all times during these proceedings. 5. Meetings. All of the meetings of the governing body of the Issuer at which action was taken as shown in the Transcript were either regular meetings or duly adjourned regular meetings or special meetings duly called and held in accordance with law and the ordinances and rules of the Issuer. 6. Incumbency of Officers. The following named persons were and are the duly qualified and acting officers of the Issuer at and during all the times when action was taken as indicated in the Transcript as follows: Name Trent Davis Melissa Rose Hodges Mike Hoppock Trent Davis Karl Ryan Kaye Crawford Jon R. Blanchard Norman M. Jennings 600596.20227\CLOSING DOCS Title Mayor Mayor Mayor Mayor Mayor Mayor Mayor Mayor Term of Office January 10, 2022 to Present January 11, 2021 to January 10, 2022 January 13, 2020 to January 11, 2021 January 14, 2019 to January 13, 2020 January 8, 2018 to January 14, 2019 April 18, 2016 to January 8, 2018 April 20, 2015 to April 18, 2016 April 19, 2012 to April 15, 2013 Kristin M. Seaton Mayor April 16, 2001 to April 14, 2003 Karl Ryan Vice-Mayor January 10, 2022 to Present Trent Davis Vice-Mayor January 11, 2021 to January 10, 2022 Melissa Rose Hodges Vice-Mayor January 13, 2020 to January 11, 2021 Mike Hoppock Vice-Mayor January 14, 2019 to January 13, 2020 Trent Davis Vice-Mayor January 8, 2018 to January 14, 2019 Karl Ryan Vice-Mayor April 18, 2016 to January 8, 2018 Kaye Crawford Vice-Mayor April 20, 2015 to April 18, 2016 Jon R. Blanchard Vice-Mayor April 21, 2014 to April 20, 2015 Greg Linkiewicz Commissioner January 10, 2022 to Present Bill Longbine Commissioner January 10, 2022 to Present Karl Ryan Commissioner April 20, 2015 to Present Rod Franz Commissioner January 13, 2020 to May 17, 2021 Melissa Rose Hodges Commissioner January 9, 2017 to January 10, 2022 Mike Hoppock Commissioner January 8, 2018 to Present Trent Davis Commissioner September 8, 2014 to Present Aaron Peck Commissioner May 17, 2021 to January 10, 2022 Joe Hay, Jr. Commissioner January 8, 2018 to January 13, 2020 Kaye Crawford Commissioner April 18, 2011 to January 8, 2018 Randall Hardy Commissioner April 15, 2013 to January 8, 2017 Jon Blanchard Commissioner April 15, 2013 to January 8, 2018 Barbara Shirley Commissioner April 18, 2011 to April 20, 2015 Aaron Householter Commissioner April 18, 2011 to April 21, 2014 Samantha Angell Commissioner April 13, 2009 to April 15, 2013 Norman M. Jennings Commissioner April 13, 2009 to April 15, 2013 Alan Jilka Commissioner April 16, 2001 to April 13, 2009 Debbie Divine Commissioner April 16, 2001 to April 16, 2007 Monte Shadwick Commissioner April 16, 2001 to April 18, 2005 Don Heath Commissioner January 14, 2002 to April 14, 2003 Jo Vonna Rutherford City Clerk March 25, 2021 to Present Cheryl Mermis Deputy City Clerk March 16, 2020 to March 25, 2021 Shandi Wicks Clerk March 10, 2014 to January 21, 2021 7. Execution of Bonds. The Bonds have been executed with facsimile signatures; and the facsimile signatures appearing on the face of the Bonds are facsimiles of the true and genuine signatures of the Mayor and Clerk of the Issuer; which facsimiles are ratified as a proper execution of said Bonds. Each signature has either been duly filed in the office of the Secretary of State of Kansas pursuant to K.S .A. 75-4001 et seq or executed in accordance with K.S .A. 16-1601 et seq. A facsimile of the seal of the Issuer is affixed to or imprinted on each of the Bonds and on the reverse side of each of the Bonds at the place where the Clerk has executed by facsimile signature the Certificate of Registration; and each Bond bears a Certificate of Registration evidencing the fact that it has been registered in the office of the Clerk. A true impression of the seal is set forth adjacent to the signature of the Clerk below. The specimen bond included in the Transcript is in the form adopted by the governing body of the Issuer for the Bonds. 8. Authorization and Purpose of the Bonds. The Bonds are being issued pursuant to and in full compliance with the Constitution, particularly Art. 12 § 5 thereof, and statutes of the State, including particularly K.S.A. 12-6a01 et seq., K.S.A. 12-685 et seq., K.S.A. 12-1736 et seq., K.S.A. 12-2104, as 600596.20227\CWSING DOCS 2 amended, Ordinance No. 22-11102 and Resolution No. 22-8041 of the Issuer duly adopted by the Governing Body of the Issuer on April 4, 2022 (collectively the "Bond Resolution") for the purpose of: (a) paying a portion of the costs of certain capital improvements (the "Improvements"); and (b) retiring the following temporary notes of the Issuer, issued to temporarily finance the Improvements (the "Refunded Notes"): Description G.O. Temporary Notes Series 2021-1 Dated Date April 29, 2021 Maturity Date May 1, 2022 Amount $5,230,000 The total principal amount of the Bonds does not exceed the cost of the Improvements for which the Bonds are issued. A Statement of Cost is attached hereto as Exhibit A and made a part hereof by reference as though fully set out herein. The interest rates on the Bonds on the date of the sale of the Bonds were within the maximum legal limit for interest rates under K.S.A. 10-1009, as amended. 9. Bonded Indebtedness. The currently outstanding applicable indebtedness of the Issuer, including the Bonds, does not exceed any applicable constitutional or statutory limitations. A Schedule of Bonded Indebtedness, which sets forth all currently outstanding general obligation indebtedness of the Issuer, is attached hereto as Exhibit B and made a part hereof by reference as though fully set out herein. 10. Valuation. The total assessed valuation of the taxable tangible property within the Issuer for the year 2021 is as follows: Equalized Assessed Valuation of Taxable Tangible Property .............................................................. $462,937,221 Tangible Valuation of Motor Vehicles.................................................. 56,545,812 Equalized Assessed Tangible Valuation for Computation of Bonded Debt Limitations................................. $519,483,033 11. Non-litigation. There is no controversy, suit or other proceedings of any kind pending or threatened wherein or whereby any question is raised or may be raised, questioning, disputing or affecting in any way: (a) the legal organization of the Issuer or its boundaries; (b) the right or title of any of its officers to their respective offices; ( c) the legality of any official act shown to have been done in the Transcript; ( d) the constitutionality or validity of the indebtedness represented by the Bonds shown to be authorized in the Transcript; ( e) the validity of the Bonds, or any of the proceedings had in relation to the authorization, issuance or sale thereof; or (f) the levy and collection of a tax to pay the principal of and interest on the Bonds. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20227\CLOSING DOCS 3 WITNESS our true and genuine manual signatures and the seal of the Issuer. Mayor 600596.20227\CLOSING DOCS (Signature Page to Transcript Certificate) EXHIBIT A STATEMENT OF COST Re: General Obligation Internal Improvement Bonds, Series 2022-A, Dated April 28, 2022, of the City of Salina, Kansas Sources of Funds: Principal Amount of the Bonds Prepaid special assessments Underwriter's Discount/Compensation Reoffering Premium Total Uses of Funds: Deposit to Improvement Fund Redemption of Refunded Notes Improvements Costs of Issuance Total 600596.20227\CLOSING DOCS A-1 $7,840,000.00 567.91 -46,648.00 397,576.30 $8,191,496.21 $5,335,181.11 2,773,685.19 82.629.91 $8,191,496.21 EXHIBITB CITY OF SALINA, KANSAS SCHEDULE OF OUTSTANDING GENERAL OBLIGATION INDEBTEDNESS (as of April 28, 2022) General Obligation Internal Improvement Bonds: Date Amount Final Amount Issued Series Purpose of Issue Maturitl'. Outstanding 02-15-13 2013-A Taxable Improvements 1,360,000 10-01-28 $ 725,000 07-29-15 2015-A Revenue and Internal Imp. 6,825,000 10-01-35 4,795,000 07-27-16 2016-A Internal Improvements 6,570,000 10-01-36 5,220,000 07-27-16 2016-B Refunding 13,750,000 10-01-31 10,190,000 07-27-17 2017-A Improvements 9,310,000 10-01-37 7,940,000 11-27-18 2018-A Improvements 2,090,000 10-01-33 1,750,000 04-24-19 2019-A Improvements 11,090,000 10-01-39 10,440,000 04-29-20 2020-A Improvements 5,210,000 10-01-35 4,715,000 11-30-20 2020-B Refunding 8,450,000 10-01-36 7,615,000 04-29-21 2021-A Improvements 7,645,000 10-01-41 7,645,000 09-08-21 2021-B Refunding 6,220,000 10-01-34 6,220,000 04-28-22 2022-A Improvements 7,840,000 10-01-42 7,840,000 Total $75,095,000 Temporary Notes: Final Original Date Maturity Note Amount Series Issued Date Amount Outstanding 2021-1 04-29-21 05-01-22 $5,230,000 $5,230,000(!) O> To be retired on May 1, 2022 with proceeds from the Bonds. 600596.20227\CLOSING DOCS B-1 STATE OF KANSAS OFFICE OF SECRETARY OF STATE I, ScoTT SCHWAB, Kansas Secretary of State, certify that the records of this office reveal the following: The Certificate of Manual Signature for TRENT W. DA VIS, MAYOR SALINA, CITY OF, KANSAS was filed in this office the 4th day of April, A.D. 2022 as provided by K.S.A. 75-4001 through 75-4007. IN TESTIMONY WHEREOF: I herc,to set my hand and cause be affixed my official seal. Done at the City of Topeka, this 14th day of April, A.D. 2022 SCOTT SCHWAB KANSAS SECRETARY OF STATE STATE OF KANSAS OFFICE OF SECRETARY OF STATE I, ScoTT SCHWAB, Kansas Secretary of State, certify that the records of this office reveal the following: The Certificate of Manual Signature for JOVONNA A. RUTHERFORD, CLERK CITY OF SALINA, KANSAS was filed in this office the 16th day of April, A.D. 2021 as provided by K.S.A. 75-4001 through 75-4007. ~ I. hereto set my hand and cause to be affixed my official seal. Done at the City of Tope~a, this 16th day of April, A.D. 2021 SCOTT SCHWAB KANSAS SECRETARY OF STATE Office of the Ka_nsas State Treas urer Bond Registration Intranet 900 SW Jackson St., Ste 201 ... Topeka, KS 66612-1235 ... 785-296-3171 April 04, 2022 Pam Jones Gilmore & Bell Pc 100 North Main, Suite 800 Wichita, KS 67202 RE: $7,840,000.00, City of Salina, Kansas General Obligation Internal Improvement Bonds, Series 2022-A Dated April 28, 2022, Registration #0322-085-042822-501 Dear Ms. Jones, This office has been requested to authorize the printing of the State Treasurer's facsimile signature and seal on the above referenced issue. The registration number has been confirmed as correct. Authorization hereby granted April 04, 2022. Sincerely, Shauna Wake, M.B.A. Director of Fiscal Services Office of the Kansas State Treasurer cc Pam Jones Gilmore & Bell Pc c.c. 100 North Main, Suite 800 Wichita, KS 67202 REGISTERED NUMBER REGISTERED $ Interest Rate: Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York Corporation ("DTC"), to the Issuer or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. UNITED STATES OF AMERICA STATE OF KANSAS COUNTY OF SALINE CITY OF SALINA GENERAL OBLIGATION INTERNAL IMPR: SERIES 202 -A e : April 28, 2022 .-\;~p,,-,,/ '/{;~.:; FrkND CUSIP: REGISTERED 0 PRINCIPAL AM KNOW ALL PERSONS BY THESE PRESENTS: That the City of Salina, in the County of Saline, State of Kansas (the "Issuer"), for value received, hereby acknowledges itself to be indebted and promises to pay to the Registered Owner shown above, or registered assigns, but solely from the source and in the manner herein specified, the Principal Amount shown above on the Maturity Date shown above, unless called for redemption prior to the Maturity Date, and to pay interest thereon at the Interest Rate per annum shown above (computed on the basis of a 360-day year of twelve 30-day months), from the Dated Date shown above, or from the most recent date to which interest has been paid or duly provided for, payable semiannually on April 1 and October 1 of each year, commencing April 1, 2023 (the "Interest Payment Dates"), until the Principal Amount has been paid. Method and Place of Payment. The principal or redemption price of this Bond shall be paid at maturity or upon earlier redemption to the person in whose name this Bond is registered at the maturity or redemption date thereof, upon presentation and surrender of this Bond at the principal office of the Treasurer of the State of Kansas, Topeka, Kansas (the "Paying Agent" and "Bond Registrar"). The interest payable on this Bond on any Interest Payment Date shall be paid to the person in whose name this Bond is registered on the registration books maintained by the Bond Registrar at the close of business on the Record Date(s) for such interest, which shall be the 15th day (whether or not a business day) of the calendar month next preceding the Interest Payment Date. Such interest shall be payable (a) by check or draft mailed by the Paying Agent to the address of such Registered Owner shown on the Bond Register or at such other address as is furnished to the Paying Agent in writing by such Registered Owner; or (b) in the case of an interest payment to Cede & Co. or any Owner of $500,000 or more in aggregate principal amount of Bonds 1 by electronic transfer to such Owner upon written notice given to the Bond Registrar by such Registered Owner, not less than 15 days prior to the Record Date for such interest, containing the electronic transfer instructions including the bank, ABA routing number and account number to which such Registered Owner wishes to have such transfer directed. The principal or redemption price of and interest on the Bonds shall be payable in any coin or currency that, on the respective dates of payment thereof, is legal tender for the payment of public and private debts. Interest not punctually paid will be paid in the manner established in the within defmed Bond Resolution. Definitions. Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the hereinafter defmed Bond Resolution. Authorization of Bonds. This Bond is one of an authorized series of Bonds of the Issuer designated "General Obligation Internal Improvement Bonds, Series 2022-A," aggregating the principal amount of $7,840,000 (the "Bonds") issued for the purposes set forth in the Ordinance of the Issuer authorizing the issuance of the Bonds and the Resolution of the Issuer prescribing the form and details of the Bonds ( collectively the "Bond Resolution"). The Bonds are issued by the auth6ti_ty of and in full compliance with the provisions, restrictions and limitations of the Constit.P.J:.ion;: articillarly Art. 12 § 5 thereof, and laws of the State of Kansas, including K.S.A. 12-6a01 et ~:=-Y· . 12-' tet seq., K.S.A. 12-1736 et seq., K.S.A. 12-2104, as amended, and all other provi · ns" :.ttie w of the State of Kansas applicable thereto. General Obligations. The Bonds co~itute genenij obligations of the Issuer payable as to both principal and interest in part from sp@ci.al ssessme~ ~vied upon the property benefited by the construction of the Improvements ~-if not· s aid rom ad valorem taxes which may be levied without limitation as to rate or amou~ a ~e taxable,timgible property, real and personal, within the territorial limits of the Issuer. Th@ bhl ce f th"if,e¢ncipal and interest on the Bonds is payable from ad valorem taxes which may be-ievied wi~ut limitation as to rate or amount upon all the taxable tangible property, real and personal, wiffffii tH erttforial limits of the Issuer. The full faith, credit and resources of the Issuer are hereby irrevoca ~ ly ged for the prompt payment of the principal of and interest on the Bonds as the same become due. Redemption Prior to Maturity. The Bonds are subject to redemption prior to maturity as set forth in the Bond Resolution. Book-Entry System. The Bonds are being issued by means of a book-entry system with no physical distribution of bond certificates to be made except as provided in the Bond Resolution. One Bond certificate with respect to each date on which the Bonds are stated to mature or with respect to each form of Bonds, registered in the nominee name of the Securities Depository, is being issued and required to be deposited with the Securities Depository and immobilized in its custody. The book-entry system will evidence positions held in the Bonds by the Securities Depository's participants, beneficial ownership of the Bonds in authorized denominations being evidenced in the records of such participants. Transfers of ownership shall be effected on the records of the Securities Depository and its participants pursuant to rules and procedures established by the Securities Depository and its participants. The Issuer and the Bond Registrar will recognize the Securities Depository nominee, while the Registered Owner of this Bond, as the owner of this Bond for all purposes, including (i) payments of principal of, and redemption premium, if any, and interest on, this Bond, (ii) notices and (iii) voting. Transfer of principal, interest and any redemption premium payments to participants of the Securities Depository, and transfer of principal, interest and any redemption premium payments to beneficial owners of the Bonds by participants of the Securities Depository will be the responsibility of such participants and other nominees of such beneficial owners. The Issuer and the Bond Registrar will not be responsible or liable for such transfers of payments or for maintaining, supervising or reviewing the records maintained by the Securities Depository, the 2 Securities Depository nominee, its participants or persons acting through such participants. While the Securities Depository nominee is the owner of this Bond, notwithstanding the provision hereinabove contained, payments of principal of, redemption premium, if any, and interest on this Bond shall be made in accordance with existing arrangements among the Issuer, the Bond Registrar and the Securities Depository. Transfer and Exchange. EXCEPT AS OTHERWISE PROVIDED IN THE BOND RESOLUTION, THIS GLOBAL BOND MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE SECURITIES DEPOSITORY OR TO A SUCCESSOR SECURITIES DEPOSITORY OR TO A NOMINEE OF A SUCCESSOR SECURITIES DEPOSITORY. This Bond may be transferred or exchanged, as provided in the Bond Resolution, only on the Bond Register kept for that purpose at the principal office of the Bond Registrar, upon surrender of this Bond, together with a written instrument of transfer or authorization for exchange satisfactory to the Bond Registrar duly executed by the Registered Owner or the Registered Owner's duly authorized agent, and thereupon a new Bond or Bonds in any Authorized Denomination of the same maturity and in the same aggregate principal amount shall be issued to the transferee in\0xchange therefor as provided in the Bond Resolution and upon payment of the charges therein prtscribed. · The Issuer shall pay all costs incurred in connection with the issuance, payment and initiatregi a · n ofi~ Bonds and the cost of a reasonable supply of bond blanks. The Issuer and the Payi g A~,.m~f d~m and treat the person in whose name this Bond is registered on the Bond Regist r as the, ~solute owner hereof for the purpose of receiving payment of, or on account of, the principal-or rtl\!E:u:1'ion i;ice fiereof and interest due hereon and for all other purposes. The Bonds are issued in full re~t~d form in Authorized Denominations. Authentication. This Bond,.diall µpt be val· • or become obligatory for any purpose or be entitled to any security or benefit und 11m Boi;Idifes,olutiffli until the Certificate of Authentication and Registration hereon shall have been wful e cuteij the Bond Registrar. IT IS HE :v·DEc:C.: . RED AND CERTIFIED that all acts, conditions, and things required to be done and to exist ~re~ent to and in the issuance of this Bond have been properly done and performed and do exist in due and regular form and manner as required by the Constitution and laws of the State of Kansas, and that the total indebtedness of the Issuer, including this series of bonds, does not exceed any constitutional or statutory limitation. IN WITNESS WHEREOF, the Issuer has caused this Bond to be executed by the manual, electronic or facsimile signature of its Mayor and attested by the manual, electronic or facsimile signature of its Clerk, and its seal to be affixed hereto or imprinted hereon. CITY OF SALINA, KANSAS By: ____.:.~_~______.__.,,.fb'------ Mayor ATTEST: 3 CERTIFICATE OF AUTHENTICATION AND REGISTRATION This Bond is one of a series of General Obligation Internal Improvement Bonds, Series 2022-A, of the City of Salina, Kansas, described in the within-mentioned Bond Resolution. Registration Date: _______ _ Office of the State Treasurer, Topeka, Kansas, as Bond Registrar and Paying Agent By __________ ~ Registration Number: 0322-085-042822-501 LEGAL OPIN{QN f- ~. j The following is a true and correct cop-y the\tPP~)Ving legal opinion of Gilmore & Bell, P.C., Bond Counsel, which was dated and iss11(1tf~s f f the ,e~f original issuance and delivery of such Bonds: Governing Body City of Salina, Kansas )~d \./ ,@Ll\l:ofilt & BELL, P.C. ,, ~ Attorneys at Law 100 N. Main Suite 800 Wichita, Kansas 67202 Country Club Bank Leawood, Kansas Re: $7,840,000 General Obligation Internal Improvement Bonds, Series 2022-A, of the City of Salina, Kansas, Dated April 28, 2022 We have acted as Bond Counsel in connection with the issuance by the City of Salina, Kansas (the "Issuer"), of the above-captioned bonds (the "Bonds"). In this capacity, we have examined the law and the certified proceedings, certifications and other documents that we deem necessary to render this opinion. Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the resolution adopted by the governing body of the Issuer prescribing the details of the Bonds. Regarding questions of fact material to our opinion, we have relied on the certified proceedings and other certifications of public officials and others furnished to us without undertaking to verify them by independent investigation. Based upon the foregoing, we are of the opinion, under existing law, as follows: 1. The Bonds have been duly authorized, executed and delivered by the Issuer and are valid and legally binding general obligations of the Issuer. 4 2. The Bonds are payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of certain improvements and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The balance of the principal and interest on the Bonds is payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The Issuer is required by law to include in its annual tax levy the principal and interest coming due on the Bonds to the extent that necessary funds are not provided from other sources. 3. The interest on the Bonds (including any original issue discount properly allocable to an owner of a Bond) is: (a) excludable from gross income for federal income tax purposes; and (b) not an item of tax preference for purposes of the federal alternative minimum tax. The opinions set forth in this paragraph are subject to the condition that the Issuer complies with all requirements of the Internal Revenue Code of 1986, as amended (the "Code") that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excludable from gross income for ' eral income tax purposes. The Issuer has covenanted to comply with all of these requirements. ailur to comply with certain of these requirements may cause interest on the Bonds to be in~ed ·n oss tnO()me for federal income tax purposes retroactive to the date of issuance of the Bon~. Tfre...ij6ndi are. "qualified tax-exempt obligations" within the meaning of Code § 265(b)(3). We expres!i oo o~io . regarding other federal tax consequences arising with respect to the Bonds. We express no opi~ _oog 'lflng)the curacy, completeness or sufficiency of the Official Statement or other offeµag maser· rel~to the Bonds (except to the extent, if any, stated in the Official Statement). Further.{~ expr no opinion regarding tax consequences arising with respect to the Bonds other than as expresslyset f~ in this opinion. The rights of the owners of the Bonds and the enforceability thereof may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights generally and by equitable principles, whether considered at law or in equity. This opinion is given as of its date, and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may come to our attention or any changes in law that may occur after the date of this opinion. GILMORE & BELL, P.C. 5 BOND ASSIGNMENT FOR VALUE RECEIVED, the undersigned do(es) hereby sell, assign and transfer to (Name and Address) (Social Security or Taxpayer Identification No.) the Bond to which this assignment is affixed in the outstanding principal amount of$ _____ ., standing in the name of the undersigned on the books of the Bond Registrar. The undersigned do( es) hereby irrevocably constitute and appoint _________ as agent to transfer said Bond on the books of said Bond Registrar with full power of substitution in the premises. Dated ________ _ Name \ Social Securi ~ati .. No. here exactly as name( s) on the face of Certificate) Signature guarantee: By ______________ _ CERTIFICATE OF CLERK STATE OF KANSAS ) ) ss. COUNTY OF SALINE ) The undersigned, Clerk of the City of Salina, Kansas, does hereby certify that the within Bond has been duly registered in my office according to law as of April 28, 2022. WITNESS my hand and official seal. 6 CERTIFICATE OF STATE TREASURER OFFICE OF THE TREASURER, STATE OF KANSAS LYNN W. ROGERS, Treasurer of the State of Kansas, does hereby certify that a transcript of the proceedings leading up to the issuance of this Bond has been filed in the office of the State Treasurer, and that this Bond was registered in such office according to law on __________ _ WI1NESS my hand and official seal. ( 7 Printer's Certificate This will certify that Gilmore & Bell, P.C., Wichita, Kansas has printed and delivered $7,840,000 in registered Notes for: UNITED STATES OF AMERICA STATE OF KANSAS COUNTY OF SALINE CITY OF SALINA GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2022-A DATED APRIL 28, 2022 The printed Bonds were delivered as one (17) pieces numbered R-1 to R-17 and six (6) BLANK pieces for re-registration. We also delivered two (2) SPECIMEN bonds clearly marked as such. All spoilage and press proofs needed in our manufacture have been destroyed. Gilmore & Bell, P.C. By Pam&. r Pamela Jones AGREEMENT BETWEEN ISSUER AND AGENT $7,840,000 CITY OF SALINA, KANSAS Gilmore & Bell, P.C. 04/04/2022 GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2022-A DATED APRIL 28, 2022 THIS AGREEMENT, dated as of April 28, 2022, between the City of Salina, Kansas, a municipality (the "Issuer"), and the State Treasurer of Kansas, as Agent (the "Agent"). WHEREAS, for its lawful purposes, the Issuer has duly authorized the issue of the above- captioned bonds (the "Securities"), and the Issuer wishes the Agent to act as its Paying Agent, Bond Registrar, and Transfer Agent for the Securities: Now, therefore, it is hereby agreed as follows: I. APPOINTMENT Issuer hereby appoints or has heretofore appointed the State Treasurer of Kansas to act as Paying Agent, Bond Registrar and Transfer Agent for the Securities. The State Treasurer of Kansas hereby accepts its appointment as the Paying Agent, Bond Registrar and Transfer Agent. II. BASIC DUTIES A. Issuer or its duly authorized representative agrees to furnish Agent the name(s) and address( es) of the initial registered owner( s) of the Securities together with such registered owners' tax identification (social security) number(s), the maturity date(s), denomination(s) and interest rate(s) for each Security. B. Agent shall manually authenticate the originally issued Securities upon the written order of one or more authorized officers of Issuer. Thereafter, Agent shall manually authenticate all Securities resulting from transfer or exchange of Securities. C. Agent shall maintain an office in the City of Topeka, Kansas, where Securities may be presented for registration, transfer and exchange; and shall also maintain an office in the City of Topeka, Kansas, where Securities may be presented for payment. Agent shall keep a register of the Securities and their transfer and exchange. D. Agent may rely upon any document believed by it to be genuine and to have been signed or presented by the proper person. Agent need not investigate any fact or matter stated in the document. Agent undertakes to perform such duties and only such duties set forth in K.S.A. 10-620 et seq., except as specifically provided in this Agreement. E. Agent shall notify the owners of the Securities upon default in payment of principal or interest on the Securities and the Agent shall have no duties or responsibilities thereafter. 600596.20227\CLOSING DOCS III. COMPENSATION Issuer covenants and agrees to pay to Agent, as reasonable compensation for the services provided as Agent, an initial setup fee of $300, a registration fee of $30, plus a fee of $5,000, which is based on "Book-entry Only" Securities. This amount will be due at the time of registration unless such fee is to be paid from the proceeds of the bond issue in which case Issuer agrees to pay such fee within two (2) business days of the closing of the bond issue. In addition to the aforementioned fee, Issuer covenants and agrees to pay to Agent the fee as stated and required by K.S.A. 10-505 for performing the duties of paying the principal of the Securities. IV. STANDARD OF PERFORMANCE Issuer shall provide, or shall cause to be provided to Agent, a designation of whether its Securities are to be issued in certificated or uncertificated form, or both. A. STATEMENTS OF OWNERSHIP Agent agrees to provide Statements of Ownership to the owner of uncertificated Securities. Such Statements shall be in accordance with the standards set forth by the Attorney General. All Statements shall be issued in the denominations of $1,000 or $5,000 or integral multiples thereof except for one additional Security in another denomination, which additional Security shall mature in the initial maturity year of the series of the Securities. Interest is computed on the basis of $1,000 or $5,000 units and in all transactions involving the payment of interest, fractions of a cent equalling or exceeding five mills shall be regarded as one cent; fractions of a cent less than five mills shall be disregarded. Agent shall at all times maintain an adequate supply of Statements of Ownership for any anticipated transfers or exchanges of the Statements. B. CERTIFICATED SECURITIES All certificated Securities issued by Issuer under this Agreement shall be in accordance with the standards set forth by the Attorney General and unless otherwise authorized by Agent, the principal thereof shall be payable only upon surrender of the Security to Agent. All certificates shall be issued in the denomination of $1,000 or $5,000 or integral multiples thereof except one authorized Security in another denomination which additional Security shall mature in the initial maturity year of the series of Securities. Interest is computed on the basis of $1,000 or $5,000 units and in all transactions involving the payment of interest, fractions of a cent equaling or exceeding five mills shall be regarded as one cent; fractions of a cent less than five mills shall be disregarded. Issuer shall at Issuer's cost provide Agent with an adequate supply of certificates for any anticipated transfers or exchanges of the certificates. Issuer shall be responsible for the payment of the printing or other expenses for such certificates. Issuer shall be responsible for obtaining appropriate "CUSIP" number(s) and shall notify Agent of each number(s) prior to the issuance of the applicable Securities. C. INTEREST CALCULATIONS Agent shall calculate interest on the basis of $1,000 and $5,000 units, or in the case of one odd denomination, calculate the unit separately. Each intermediate unit calculation is first determined, then rounded to the sixth decimal position; i.e. whenever the seventh decimal 600596.20227\CLOSING DOCS 2 place is equal to or greater than five the sixth decimal place is increased by one. The final per unit calculation is subsequently rounded to two decimal positions. (See Attachment "A" for sample calculation.) D. SURRENDER Securities surrendered ~or payment, cancellation or partial redemption shall be cancelled by Agent and returned to Issuer in accordance with K.S .A. 10-111. E. TRANSFERS AND EXCHANGES 1. When Securities are presented to Agent for transfer or exchange, Agent shall so transfer or exchange such Securities if the requirements of Section 8-401 ( 1) of the Uniform Commercial Code are met. 2. In accordance with the authorizing Resolution or Ordinance of the Issuer (the "Bond Resolution"), payments of interest shall be made to the owner of record of each Security as of the close of business on the fifteenth day of the month preceding each interest payment date. The Agent shall make such payments to the record owner of each Security as set forth on the registration books maintained by Agent as of such date. 3. Agent shall not be required to transfer or exchange any Security during a period beginning on the day following the fifteenth day of the month preceding any interest payment date for such Securities and ending at the close of business on the interest payment date, or to transfer or exchange any Security selected or called for redemption in whole or in part subsequent to the date notice of such redemption is given in accordance with the Bond Resolution authorizing the Securities. F. REGISTRATION DATES AND FUNDS FOR PAYMENTS Date of Registration shall be affixed on the initial Securities. Subsequent transfers or exchanges shall bear a Date of Registration as of the date that all the required documentation is received at the Agent's official place of business. Issuer will provide funds to make any interest or principal payments in accordance with K.S.A. 10-130 and amendments thereto. Agent is hereby authorized to effect any semiannual payment of interest or any principal by charging the Issuer's Fiscal Agency account with Agent. G. REPLACEMENT OF SECURITIES If the owner of a Security claims that a Security has been lost, destroyed or wrongfully taken, Issuer shall issue and Agent shall authenticate a replacement Security if the requirements of Section 8-405 of the Uniform Commercial Code are met. Only Agent shall perform this function. An indemnity bond and affidavit of loss shall be provided to Agent and Issuer at the expense of the owner of the Security. Such indemnity bond and affidavit of loss must be sufficient in the judgment of Issuer and Agent to protect Issuer and Agent from any loss which any of them may suffer if the Security is replaced. Issuer may charge the Security owner for its expenses in the replacement of a Security. H. REDEMPTIONS 600596.20227\CLOSING DOCS 3 Optional Redemption. If any Securities are to be redeemed pursuant to an optional redemption in accordance with their terms, Issuer agrees to give Agent at least fifteen (15) days written notice thereof prior to the notice to be given the Security owners. If there is no provision for notice to the Security owners, Issuer agrees to give at least thirty (30) days written notice to Agent. Mandatory Redemption. If any Securities are subject to mandatory redemption in accordance with their terms of the Bond Resolution, no additional notice is required to be given to the Agent to exercise the mandatory redemption. The Agent will provide notice of such redemption utilizing substantially the form of Notice of Mandatory Redemption attached hereto as Appendix I. Notice of Redemption. Agent shall then notify, by ordinary mail, the owner of such Securities to be so redeemed. Agent shall select the Securities to be so redeemed. Agent shall not be required to exchange or register a transfer of any Security for a period of fifteen (15) days preceding the date notice is to be provided to the Security owners for the purpose of selecting Securities on a partial redemption. Further, in the event notice is given to Agent for a complete redemption of the Issue according to the terms of the Bond Resolution, Agent shall not be required to transfer or exchange any Security beginning on the day following the 15th day preceding the date set for redemption. I. MISCELLANEOUS Agent hereby acknowledges receipt of numbered Securities of Issuer (in a number equal to one Security for each maturity) for registration and exchange, and shall safeguard any "blank" Securities held for purpose of exchange or transfer. J. REPORTS Agent shall provide Issuer an annual report of the activity with respect to the issuance of Securities upon written request of Issuer. K. CONSTRUCTION This Agreement shall be construed in accordance with the laws of the State of Kansas and also the Bond Resolution authorizing the issuance of the Securities. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20227\CLOSING DOCS 4 By 600596.20227\CLOSING DOCS CITY OF SALINA, KANSAS OFFICE OF THE TREASURER OF THE STATE OF KANSAS (Signature Page to Agreement Between Issuer & Agent) ATTACHMENT "A" SAMPLE $5,000.00000 ........................ Bond Unit X .06875 ........................ Interest Rate = 343.750000 Rounded to six decimal places I 360 ........................ Days per year = .954861 Rounded to six decimal places X 180 ........................ Day in interest period = 171.874980 (Rounded to second decimal= $171.87) Unit interest is then multiplied by the number of units in the maturity. 600596.20227\CLOSING DOCS A-1 APPENDIX I NOTICE OF CALL FOR MANDATORY REDE.MPTION TO THE OWNERS OF CITY OF SALINA, KANSAS GENERAL OBLIGATION INTERNAL I.MPROVEMENT BONDS SERIES 2022-A, DATED APRIL 28, 2022 Notice is hereby given that pursuant to the provisions of Article III of Resolution No. 22-804l(the "Bond Resolution") of the City of Salina, Kansas (the "Issuer") that a portion of the above-mentioned bonds (the "Bonds") scheduled to mature on October 1, 20_ (the "Called Bonds"), have been called for mandatory redemption and payment on October 1, 20_ (the "Redemption Date"), at the principal office of the Treasurer of the State of Kansas (the "Bond Registrar and Paying Agent"). Maturity Date (October 1) 20_ Principal Amount Interest Rate CUSIP Number On the Redemption Date there shall become due and payable, upon the presentation and surrender of each such Called Bond, the redemption price thereof equal to 100% of the principal amount thereof together with interest accrued to the Redemption Date. Bonds issued in denominations of greater than $5,000 may be subject to partial redemption. In such event, a new certificate or certificates will be issued to the Owner in the principal amount to remain Outstanding. Interest shall cease to accrue on the Called Bonds so called for redemption from and after the Redemption Date provided such funds for redemption are on deposit with the Paying Agent. 600596.20227\CLOSING DOCS 1-1 CITY OF SALINA, KANSAS By---------------- Treasurer of the State of Kansas, Topeka, Kansas The Depository Trust Company A subsidiary of the Depository Trust & Clearing Corporation BLANKET ISSUER LETTER OF REPRESENTATIONS (To be completed by Issuer and Co-fssuer(s), if applicable) CITY OF SALINA, KANSAS ('\/alile oflssuet 3nd Co-lssuer(s), if applicable) The Depository Trust Company 1830 I Bennuda Green Drive Tampa, FL 33647 Attention: Underwriting Department Ladies and Gentlemen: 04/14/2021 {Date) I This lettel' sets forth our understanding with respect to all issues (the "Securities") that Issuer shall request to be. made eligible for deposit by 111e Depository Trust Company ("OTC"). Issuer is: <Note; Issuer shaft represent one and cros$ out the otbec.) ~X~ [formed under the Jaws ofl_._ ___ ~_t_h_e_S_t_a_te_o_f _K_a_n_sa_s ____ _ To induce OTC to accept the Securities as eligible for deposit at D TC, aud to act in accordance with DTC's Rules with respect to the Securities, Issuer represents to OTC that issuer will comply with the requirements stated in DTC's Operational Arrangements, as they may be amended from time to time. Note: Schedule A contains statements that DTC believes accurately describe DTC, the method of effecting book-entry transfers of securiti~ distributed through DTC, and ccrtai11 related matters. Address) Very truly yours, City of Salina, Kansas (l'rin1 Name) 300 West Ash --- -----~---,,-.......,.-,----------!_Sim:\ Address) Salina, Kansas, USA 67402 (zjpCode) (785) 309-5735 jovonna.rutherio~~~alina.org ((:-mail BLOR 06-2013 SCHEDULEA (To Blanket Jssuer Letter of Representations) SAMPLE OFFERING DOCUMENT LANGUAGE DESCRIBING BOOK-ENTRY-ONLY ISSUANCE (Prepared by OTC-bracketed material may be opplicable only to certain issues) 1. The Depository Trust Company ("DTC"), New York, NY, will act as securities depository for the securities (the "Securities"). The Securities will be issued as fully-registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered Security certificate will be issued for [each issue of] the Securities, [each] in the aggregate principal amount of such issue, and will be deposited with DTC. [If, however, the aggregate principal amount of[any] issue exceeds $500 million, one certificate will be issued with respect to each $500 million of principal amount, and an additional certificate will be issued with respect to any remaining principal amount of such issue.] 2. DTC, the world's largest securities depository, is a limited-purpose trust company organi:z«f under the New York Banking Law, a "banking organization" within the meaning oft he New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Unifonn Commercial Code, and a "cl earing agency" registered pursuant to the provisions of Section 17 A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, cmporate and municipal debt issues, and money market instruments (from over l 00 countries) that DTC's participants ("Direct Participants") deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants' accounts. This eliminates the need forphysical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Dearing Corporation ("DTCC"). DTCC is the holding company for DTC, National Securities Clearing Corporation and · Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). DTC has a Standard & Poor's rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More infonnation about DTC can be found at www.dtcc.com. 3. Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a credit for the Securities on DTC 's records. The ownership interest of each actual purchaser of each Security ("Beneficial Owner'') is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Securities are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Securities, except in the event that use of the book-entry system for the Securities is discontinued. 4. To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name ofDTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative ofDTC. The deposit of Securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Securities; DTC's records reflect only the identity of the Direct Participants to whose accounts such Securities are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. BLOR 06-2013 SCHEDULE A (To Blanket Issuer Letter of Representations) 5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. [Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to the Security documents. For example, Beneficial Owners of Securities m ay wish to ascertain that the nominee holding the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them.] [6. Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.] 7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Securities unless authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to Issuer as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts Securities are credited on the record date (identified in a listing attached to the Omnibus Proxy). 8. Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede & Co., or such other nominee as may be requested by an authorized representative ofDTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from Issuer or Agent, on payable date in accordance with their respective holdings shown on DT C's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC, Agent, or Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative ofDTC) is the responsibility of Issuer or Agent, disbursement of such payments to Direct . Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. (9. A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its Participant, to [Ten der/Remarketing] Agent, and shall effect delivery of such Securities by causing the Direct Participant to transfer the Participant's interest in the Securities, on DTC's records, to [Tender/Remarketing] Agent. The requirement for physical delivery of Securities in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Securities are transferred by Direct Participants on DTC's records and follciwed by a book-entry credit of tendered Securities to [Tender/Remarketing] Agent's DTC accoW1t.] 10. DTC may discontinue providing its services as depository with respect to the Securities at any time by giving reasonable notice to Issuer or Agent. Under such circumstances, in the event that a successor depository is not obtained, Security certificates are required to be printed and delivered. 11. Issuer may decide to discontinue use of the system of book-entry-only transfers through DTC ( or a successor securities depository). In that event, Security certificates wiJI be printed and delivered to DTC. 12. The information in this section concerning DTC and DTC's book-entry system has been obtained from sources that Issuer believes to be reliable, but Issuer takes no responsibility for the accuracy thereof. BLOR 06-2013 Moooy's INVESTORS SERVICE March 31, 2022 Mr. David Arteberry Stifel Nicolaus & Company, Inc. 4801 Main Street Suite 530 Kansas City, MO 64112 Dear Mr. Arteberry: 600 North Pearl Street Suite 2165 Dallas, TX 75201 www.moodys.com We wish to inform you that on March 25, 2022, Moody's Investors Service reviewed and assigned a rating of Aa3 to Salina (City Of) KS, General Obligation Internal Improvement Bonds, Series 2022-A. Credit ratings issued by Moody's Investors Service, Inc. and its affiliates ("Moody's") are Moody's current opinions of the relative future credit risk of entities, credit commitments, or debt or debt-like securities and are not statements of current or historical fact. Moody's credit ratings address credit risk only and do not address any other risk, including but not limited to: liquidity risk, market value risk, or price volatility. This letter uses capitalized terms and rating symbols that are defined or referenced either in Moody's Definitions and Symbols Guide or MIS Code of Professional Conduct as of the date of this letter, both published on www.moodys.com. The Credit Ratings will be publicly disseminated by Moody's through normal print and electronic media as well as in response to verbal requests to Moody's Rating Desk. Moody's related research and analyses will also be published on www.moodys.com and may be further distributed as otherwise agreed in writing with us. Moody's Credit Ratings or any corresponding outlook, if assigned, will be subject to revision, suspension or withdrawal, or may be placed on review, by Moody's at any time, without notice, in the sole discretion of Moody's. For the most current Credit Rating, please visit www.moodys.com. Moody's has not consented and will not consent to being named as an expert under applicable securities laws, such as section 7 of the Securities Act of 1933. The assignment of a rating does not create a fiduciary relationship between Moody's and you or between Moody's and other recipients of a Credit Rating. Moody's Credit Ratings are not and do not provide investment advice or recommendations to purchase, sell or hold particular securities. Moody's issues Credit Ratings with the expectation and understanding that each investor will make its own evaluation of each security that is under consideration for purchase, sale or holding. Moody's adopts all necessary measures so that the information it uses in assigning a Credit Rating is of sufficient quality and from sources Moody's considers to be reliable including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently validate or verify information received in the rating process. Moody's expects and is relying upon you possessing all legal rights and required consents to disclose the information to Moody's, and that such information is not subject to any restrictions that would prevent use by Moody's for its ratings process. In assigning the Credit Ratings, Moody's has relied upon the truth, accuracy, and completeness of the information supplied by you or on your behalf to Moody's. Moody's expects that you will, and is relying upon you to, on an ongoing basis, promptly provide Moody's with all information necessary in order for Moody's to accurately and timely monitor the Credit Ratings, including current financial and statistical information. March 31, 2022 Mr.David Arteberry Stifel Nicolaus & Company, Inc. 4801 Main Street Suite 530 Kansas City, MO 64112 Under no circumstances shall Moody's have any liability (whether in contract, tort or otherwise) to any person or entity for any loss, injury or damage or cost caused by, resulting from, or relating to, in whole or in part, directly or indirectly, any action or error (negligent or otherwise) on the part of, or other circumstance or contingency within or outside the control of, Moody's or any of its or its affiliates' directors, officers, employees or agents in connection with the Credit Ratings. ALL INFORMATION, INCLUDING THE CREDIT RATING, ANY FEEDBACK OR OTHER COMMUNICATION RELATING THERETO IS PROVIDED "AS IS" WITHOUT REPRESENTATION OR WARRANTY OF ANY KIND. MOODY'S MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH INFORMATION. Any non-public information discussed with or revealed to you must be kept confidential and only disclosed either (i) to your legal counsel acting in their capacity as such; (ii) to your other authorized agents acting in their capacity as such with a need to know that have entered into non-disclosure agreements with Moody's in the form provided by Moody's and (iii) as required by applicable law or regulation. You agree to cause your employees, affiliates, agents and advisors to keep non-public information confidential. If there is a conflict between the terms of this rating letter and any related Moody's rating application, the terms of the executed rating application will govern and supercede this rating letter. Should you have any questions regarding the above, please do not hesitate to contact Heather Guss at 617-535- 7693. Sincerely, Moody's Investors Service Inc. CLOSING CERTIFICATE $7,840,000 CITY OF SALINA, KANSAS Gilmore & Bell, P.C. 04/04/2022 GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2022-A DATED APRIL 28, 2022 The undersigned Mayor and Clerk of the City of Salina, Kansas (the "Issuer"), make this Certificate for inclusion in the transcript of and as a part of the proceedings authorizing and providing for the issuance of the above described bonds (the "Bonds"); and certify as of April 28, 2022 (the "Issue Date"), as follows: 1. Meaning of Words and Terms. Capitalized words and terms used in this Certificate, unless otherwise defined in this Certificate or the context requires otherwise, have the same meanings ascribed to such words and terms in the Bond Resolution (defined below) authorizing the Bonds. 2. Transcript of Proceedings. The transcript of proceedings relating to the authorization and issuance of the Bonds (the "Transcript"), furnished to the Purchaser of the Bonds, is to the best of our knowledge, information and belief full and complete; none of such proceedings have been modified, amended or repealed, except as might be shown in the Transcript; and the facts stated in the Transcript still exist. In each instance where copies appear in the Transcript, such copies are true and correct duplicates of the original instruments now on file with the Clerk. All certifications made by the Issuer in the Transcript Certificate dated April 4, 2022 are true and correct as of this date and are incorporated in this Certificate by reference. 3. Authorization and Purpose of the Bonds. The Issuer is issuing and delivering the Bonds simultaneously with the delivery of this Certificate, pursuant to and in full compliance with the Constitution, particularly Art. 12 § 5 thereof and statutes of the State, including K.S.A. 12-6a01 et seq., K.S.A. 12-685 et seq., K.S.A. 12-1736 et seq., K.S.A. 12-2104, as amended, Ordinance No. 22-11102 and Resolution No. 8041 of the Issuer duly adopted by the Governing Body of the Issuer on April 4, 2022 (collectively the "Bond Resolution") for the purpose of: (a) paying a portion of the costs of certain capital improvements (the "Improvements"); and (b) retiring the following temporary notes of the Issuer, issued to temporarily finance the Improvements (the "Refunded Notes"): Description G.O. Temporary Notes Series 2021-1 Dated Date April 29, 2021 Maturity Date May 1, 2022 Amount $5,230,000 4. Security for the Bonds. The Bonds are general obligations of the Issuer payable in part from special assessments levied upon the property benefited by the Improvements and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer, with the balance payable, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The full faith, credit and resources of the Issuer are pledged under the Bond Resolution to the payment of the principal of and interest on the 600596.20227\CLOSING DOCS Bonds. In the Bond Resolution, the governing body of the Issuer has covenanted to annually make provision for the payment of principal of, premium, if any, and interest on the Bonds as the same become due by, to the extent necessary, by levying and collecting the necessary taxes and/or assessments upon all of the taxable tangible property within the Issuer in the manner provided by law. 5. Sale of Bonds. The Bonds have been sold at rates not in excess of the limitations set forth in K.S .A. 10-1009. The Notice of Bond Sale dated March 21, 2022 and included in the Transcript constitutes a full true and correct copy thereof. A copy of such Notice of Bond Sale and Preliminary Official Statement was sent to prospective purchasers of the Bonds, and to all other persons and firms requesting copies of such Notice of Bond Sale and Preliminary Official Statement. 6. Official Statement. The Official Statement contained in the Transcript constitutes a full, true and correct copy of the Official Statement relating to the Bonds. To the best of our knowledge, the Official Statement, other than the sections entitled "The Depository Trust Company," "Ratings," "Legal Matters," "Tax Matters," and Appendices B, C and D, about which the Issuer expresses no opinion, is true in all material respects, and does not contain any untrue statement of a material fact or does not omit to state a material fact, necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. As of this date there has been no material adverse change in the financial condition or the financial affairs of the Issuer since the date of the Official Statement. No other event has occurred which is necessary to be disclosed in the Official Statement in order to make the statements therein not misleading in any material respect as of the date of this Certificate. The Issuer has previously caused to be delivered to the Purchaser copies of the Official Statement. 7. Continuing Disclosure Undertaking. The Issuer has heretofore executed a Continuing Disclosure Undertaking (the "Disclosure Undertaking"), wherein the Issuer has covenanted to disseminate such information as is required in accordance with the provisions of the SEC Rule and the Disclosure Undertaking. In the Bond Resolution, the Issuer has covenanted to apply the provisions of the Disclosure Undertaking to the Bonds. A copy of the Disclosure Undertaking is contained in the Transcript. 8. Non-Litigation. There is no controversy, action, suit, proceeding, or to the best of our knowledge, any inquiry or investigation at law or in equity or before or by any public board or body pending or, to the best or our knowledge, threatened against or affecting the Issuer, its officers or its property, or, to the best of our knowledge, any basis therefor questioning, disputing or affecting in any way: (a) the legal organization of the Issuer or its boundaries; (b) the right or title of any of its officers to their respective offices; ( c) the legality of any official act shown to have been done in the Transcript; ( d) the constitutionality or validity of the indebtedness represented by the Bonds shown to be authorized in the Transcript; ( e) the validity of the Bonds, or any of the proceedings had in relation to the authorization, issuance or sale thereof; (f) the levy and collection of an ad valorem property tax to pay the principal of and interest on the Bonds; or (g) the federal or state tax-exempt status of the interest on the Bonds; wherein any unfavorable decision, ruling or finding would adversely affect the Issuer, the transactions contemplated by the Bond Resolution or the Official Statement, or the validity or enforceability of the Bonds, which are not disclosed in the final Official Statement. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20227\CLOSING DOCS 2 WITNESS our hands and the seal of the Issuer. Signature Official Title Mayor Clerk 600596.20227\CLOSING DOCS (Signature Page to Closing Certificate) 600596.20227\FTC FEDERAL TAX CERTIFICATE Dated as of April 28, 2022 OF THE CITY OF SALINA, KANSAS $7,840,000 Gilmore & Bell, P.C. 04/04/2022 GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2022-A Section 1.01 Section 2.01 Section 2.02 Section 3.01 Section 3.02 Section 3.03 Section 3.04 Section 3.05 Section 3.06 Section 3.07 Section 3.08 Section 3.09 Section 3.10 Section 3.11 Section 3.12 Section 3.13 Section 3.14 Section 3.15 Section 4.01 Section 4.02 Section 4.03 Section 4.04 Section 4.05 Section 4.06 600596.20227\FfC FEDERAL TAX CERTIFICATE TABLE OF CONTENTS ARTICLE I DEFINITIONS Definitions of Words and Terms ................................................................................... 1 ARTICLE II GENERAL REPRESENTATIONS AND COVENANTS Representations and Covenants of the Issuer ................................................................ 6 Continuing Application of Representations and Covenants ........................................ 11 ARTICLE III ARBITRAGE CERTIFICATIONS AND COVENANTS General ........................................................................................................................ 11 Reasonable Expectations ............................................................................................. 11 Purpose of Financing ................................................................................................... 11 Funds and Accounts .................................................................................................... 12 Amount and Use of Bond Proceeds and Other Moneys .............................................. 12 Multipurpose Issue ...................................................................................................... 12 No Advance Refunding ............................................................................................... 12 Current Refunding ....................................................................................................... 12 Completion of Financed Improvements; New Money Portion ................................... 13 Sinking Funds .............................................................................................................. 13 Reserve, Replacement and Pledged Funds .................................................................. 13 Purpose Investment Yield ............................................................................................ 13 Issue Price and Bond Yield ......................................................................................... 13 Miscellaneous Arbitrage Matters ................................................................................ 13 Conclusion ................................................................................................................... 14 ARTICLE IV TAX COMPLIANCE POLICIES AND PROCEDURES General. ....................................................................................................................... 14 Record Keeping; Use of Bond Proceeds and Use of Financed Improvements ........... 14 Restrictions on Investment Yield ................................................................................ 15 Procedures for Establishing Fair Market Value of Investments .................................. 16 Certain Gross Proceeds Exempt from the Rebate Requirement.. ................................ 18 Computation and Payment of Arbitrage Rebate and Yield Reduction Amounts ........ 21 i Section 5.01 Section 5.02 Section 5.03 Section 5.04 Section 5.05 Section 5.06 Section 5.07 Section 5.08 Section 5.09 ARTICLEV MISCELLANEOUS PROVISIONS Term of Tax Certificate ............................................................................................... 22 Amendments ................................................................................................................ 22 Advice from Bond Counsel. ........................................................................................ 22 Reliance ....................................................................................................................... 22 Severability .................................................................................................................. 22 Benefit of Certificate ................................................................................................... 22 Default, Breach and Enforcement ............................................................................... 23 Governing Law ............................................................................................................ 23 Electronic Transactions ............................................................................................... 23 LIST OF EXHIBITS TO FEDERAL TAX CERTIFICATE A. IRS FORM 8038-G Evidence of filing B. RECEIPT FOR PURCHASE PRICE C-1. RECEIPT AND REPRESENTATION C-2. CERTIFICATE OF MUNICIPAL ADVISOR D. DESCRIPTION OF PROPERTY COMPRISING THE FINANCED IMPROVEMENTS E. SAMPLE ANNUAL COMPLIANCE CHECKLIST Schedule 1 Debt Service Schedule and Proof of Yield * * * 600596.20227\FfC 11 FEDERAL TAX CERTIFICATE TIDS FEDERAL TAX CERTIFICATE (the "Tax Certificate"), is executed as of April 28, 2022 (the "Issue Date"), by the City of Salina, Kansas (the "Issuer"). RECITALS 1. This Tax Certificate is being executed and delivered in connection with the issuance by the Issuer of $7,840,000 principal amount of General Obligation Internal Improvement Bonds, Series 2022-A (the "Bonds"), under Ordinance No. 22-11102 and Resolution No. 22-8041 duly adopted by the governing body of the Issuer on April 4, 2022 (together, the "Bond Resolution"), for the purposes described in this Tax Certificate and in the Bond Resolution. 2. The Internal Revenue Code of 1986, as amended (the "Code"), and the applicable Regulations and rulings issued by the U.S. Treasury Department (the "Regulations"), impose certain limitations on the uses and investment of the Bond proceeds and of certain other money relating to the Bonds and set forth the conditions under which the interest on the Bonds will be excluded from gross income for federal income tax purposes. 3. The Issuer is executing this Tax Certificate in order to set forth certain facts, covenants, representations, and expectations relating to the use of Bond proceeds and the property financed or refinanced with those proceeds and the investment of the Bond proceeds and of certain other related money, in order to establish and maintain the exclusion of the interest on the Bonds from gross income for federal income tax purposes and to provide guidance for complying with the arbitrage rebate provisions of Code§ 148(f). 4. The Issuer adopted a Tax Compliance Procedure (as defined below) for the purpose of setting out general procedures for the Issuer to continuously monitor and comply with the federal income tax requirements set out in the Code and the Regulations. 5. This Tax Certificate is entered into as required by the Tax Compliance Procedure to set out specific tax compliance procedures applicable to the Bonds. NOW, THEREFORE, in consideration of the foregoing and the mutual representations, covenants and agreements set forth in this Tax Certificate, the Issuer represents, covenants and agrees as follows: ARTICLE I DEFINITIONS Section 1.01 Definitions of Words and Terms. Except as otherwise provided in this Tax Certificate or unless the context otherwise requires, capitalized words and terms used in this Tax Certificate have the same meanings as set forth in the Bond Resolution, and certain other words and phrases have the meanings assigned in Code§§ 103, 141-150 and the Regulations. The following words and terms used in this Tax Certificate have the following meanings: 600596.20227\FTC 1 "Adjusted Gross Proceeds" means the Gross Proceeds of the New Money Portion or the Refunding Portion, as applicable, reduced by amounts (a) in a Bona Fide Debt Service Fund or a reasonably required reserve or replacement fund, (b) that as of the Issue Date are not expected to be Gross Proceeds, but which arise after the end of the applicable spending period, and ( c) representing grant repayments or sale or Investment proceeds of any purpose Investment. "Annual Compliance Checklist" means a checklist for the Bonds and the Financed Improvements designed to measure compliance with the requirements of this Tax Certificate and the Tax Compliance Procedure after the Issue Date, as further described in Section 4.02 and substantially in the form attached as Exhibit E. "Available Construction Proceeds" means the sale proceeds of the New Money Portion, increased by (a) Investment earnings on the sale proceeds, (b) earnings on amounts in a reasonably required reserve or replacement fund allocable to the New Money Portion but not funded from the Bonds, and (c) earnings on such earnings, reduced by sale proceeds (1) in any reasonably required reserve fund or (2) used to pay issuance costs of the Bonds. "Bona Fide Debt Service Fund" means a fund, which may include Bond proceeds, that: (a) is used primarily to achieve a proper matching of revenues with principal and interest payments within each Bond Year; and (b) is depleted at least once each Bond Year, except for a reasonable carryover amount not to exceed the greater of (1) the earnings on the fund for the immediately preceding Bond Year, or (2) one- twelfth of the principal and interest payments on the Bonds for the immediately preceding Bond Year. "Bond" or ''Bonds" means any bond or bonds described in the recitals, authenticated and delivered under the Bond Resolution. "Bond Compliance Officer" means the Issuer's Finance Director or other person named in the Tax Compliance Procedure. "Bond Counsel" means Gilmore & Bell, P.C., or other firm of nationally recognized bond counsel acceptable to the Issuer. "Bond Resolution" means Ordinance No. 22-11102 and Resolution No. 22-8041 of the Issuer duly adopted by the governing body of the Issuer on April 4, 2022, as originally executed by the Issuer, as amended and supplemented in accordance with the provisions of the Bond Resolution. ''Bond Year" means each one-year period (or shorter period for the first Bond Year) ending October 1 or another one-year period selected by the Issuer. "Code" means the Internal Revenue Code of 1986, as amended. "Computation Date" means each date on which arbitrage rebate and yield reduction amounts for the Bonds are computed. The Issuer may treat any date as a Computation Date, subject to the following limits: (a) the first rebate installment payment must be made for a Computation Date not later than 5 years after the Issue Date; (b) each subsequent rebate installment payment must be made for a Computation Date not later than 5 years after the previous Computation Date for which an installment payment was made; and 600596.20227\FfC 2 (c) the date the last Bond is discharged is the final Computation Date. The Issuer selects October 1, 2026 as the first Computation Date but reserves the right to select a different date consistent with the Regulations. "Debt Service Account" means the Debt Service Account for General Obligation Internal Improvement Bonds, Series 2022-A established under the Bond Resolution. "Final Written Allocation" means the final written allocation of expenditures of Bond proceeds prepared by the Bond Compliance Officer in accordance with Section 4.02(b) of this Tax Certificate, a summary of which is shown on Exhibit D. "Financed Improvements" means the portion of the Improvements financed or refinanced with the proceeds of the Bonds and the Original Obligations, all as described on Exhibit D. "Gross Proceeds" means (a) sale proceeds (any amounts actually or constructively received by the Issuer from the sale of the Bonds, including amounts used to pay underwriting discount or fees, but excluding pre-issuance accrued interest), (b) Investment proceeds (any amounts received from investing sale proceeds or other Investment proceeds), (c) any amounts held in a sinking fund for the Bonds, (d) any amounts held in a pledged fund or reserve fund for the Bonds, (e) any other replacement proceeds, and (f) any transferred proceeds (any unspent proceeds of the Refunded Notes). Specifically, the term Gross Proceeds includes (but is not limited to) amounts held in the following funds and accounts: (1) Improvement Fund. (2) Debt Service Account. (3) Rebate Fund (to the extent funded with sale proceeds or Investment proceeds of the Bonds). ( 4) Costs of Issuance Account. "Guaranteed Investment Contract" is any Investment with specifically negotiated withdrawal or reinvestment provisions and a specifically negotiated interest rate, including any agreement to supply Investments on two or more future dates (e.g., a forward supply contract). "Improvement Fund" means the Improvement Fund for General Obligation Internal Improvement Bonds, Series 2022-A established under the Bond Resolution. "Improvements" means all of the property acquired, developed, constructed, renovated, and equipped by the Issuer using proceeds of the Bonds or the Original Obligations and other money contributed by the Issuer, as described on Exhibit D. "Investment" means any security, obligation, annuity contract or other investment-type property that is purchased directly with, or otherwise allocated to, Gross Proceeds. This term does not include a tax-exempt bond, except for "specified private activity bonds" as defined in Code § 57(a)(5)(C), but does include the investment element of most interest rate caps. "IRS" means the United States Internal Revenue Service. 600596.20227\FIC 3 "Issue Date" means April 28, 2022. "Issuer" means the City of Salina, Kansas, and its successors and assigns, or any body, agency or instrumentality of the State succeeding to or charged with the powers, duties and functions of the Issuer. "Management Agreement" means a legal agreement defined in Regulations § 1.141-3(b) as a management, service, or incentive payment contract with an entity that provides services involving all or a portion of any function of the Financed Improvements, such as a contract to manage the entire Financed Improvements or a portion of the Financed Improvements. However, contracts for services that are solely incidental to the primary governmental function of the Financed Improvements (for example, contracts for janitorial, office equipment repair, billing, or similar services) are not treated as Management Agreements. "Measurement Period" means, with respect to each item of property financed as part of the Financed Improvements with proceeds of the New Money Portion, the period beginning on the later of (1) the Issue Date, or (2) the date the property is placed in service and ending on or the earlier of (a) the final maturity date of the Bonds or (b) the expected economic useful life of the property, or, with respect to each item of property financed as part of the Financed Improvements with proceeds of the Original Obligations, the period beginning on the later of (i) the issue date of the Original Obligations, or (ii) the date the property was or will be placed in service, and ending on the earlier of (A) the final maturity date of the Bonds or (B) the expected economic useful life of the property. "Minor Portion" means the lesser of $100,000 or 5% of the sale proceeds of the Bonds. "Municipal Advisor'' means Stifel.Nicolaus & Company, Incorporated, municipal advisor to the Issuer. "Net Proceeds" means, when used in reference to the Bonds or the New Money Portion, the sale proceeds of the Bonds (excluding pre-issuance accrued interest), less any proceeds deposited in a reasonably required reserve or replacement fund, plus all Investment earnings on such sale proceeds. "New Money Portion" means the portion of the Bonds properly allocable to the new money financing of the Financed Improvements, rather than refinancing the Refunded Notes. "Non-Qualified Use" means use of Bond proceeds or the Financed Improvements in a trade or business carried on by any Non-Qualified User. The rules set out in Regulations § 1.141-3 determine whether Bond proceeds or the Financed Improvements are "used" in a trade or business. Generally, ownership, a lease, or any other use that grants a Non-Qualified User a special legal right or entitlement with respect to the Financed Improvements, will constitute use under Regulations§ 1.141-3. "Non-Qualified User" means any person or entity other than a Qualified User. "Original Obligations" means the Series 2021-1 Notes (and any other temporary notes directly or indirectly refinanced thereby), which were the initial tax-exempt governmental obligations that financed or refinanced a portion of the Financed Improvements. "Post-Issuance Tax Requirements" means those requirements related to the use of proceeds of the Bonds, the use of the Financed Improvements and the investment of Gross Proceeds after the Issue Date of the Bonds. 600596.20227\FTC 4 "Preliminary Expenditures" means: (a) costs incurred for architectural, engineering, surveying, soil testing, costs of issuance, and similar costs prior to commencement of acquisition, construction, or rehabilitation of the Financed Improvements, other than land acquisition, site preparation, and similar costs incident to commencement of construction of the Financed Improvements up to an amount not in excess of 20 percent of the issue price of the Bonds; and (b) costs incurred in an amount not in excess of the lesser of $100,000 or 5 percent of the sale proceeds of the Bonds with respect to the New Money Portion or of the Original Obligations with respect to the Refunding Portion. "Purchaser" means Country Club Bank, Leawood, Kansas, the original purchaser of the Bonds, and any successor and assigns. "Qualified Use Agreement" means any of the following: (a) A lease or other short-term use by members of the general public who occupy the Financed Improvements on a short-term basis in the ordinary course of the Issuer's governmental purposes. (b) Agreements with Qualified Users or Non-Qualified Users to use all or a portion of the Financed Improvements for a period up to 200 days in length pursuant to an arrangement whereby (1) the use of the Financed Improvements under the same or similar arrangements is predominantly by natural persons who are not engaged in a trade or business and (2) the compensation for the use is determined based on generally applicable, fair market value rates that are in effect at the time the agreement is entered into or renewed. Any Qualified User or Non-Qualified User using all or any portion of the Financed Improvements under this type of arrangement may have a right of first refusal to renew the agreement at rates generally in effect at the time of the renewal. (c) Agreements with Qualified Users or Non-Qualified Users to use all or a portion of the Financed Improvements for a period up to 100 days in length pursuant to arrangements whereby (1) the use of the property by the person would be general public use but for the fact that generally applicable and uniformly applied rates are not reasonably available to natural persons not engaged in a trade or business, (2) the compensation for the use under the arrangement is determined based on applicable, fair market value rates that are in effect at the time the agreement is entered into or renewed, and (3) the Financed Improvements was not constructed for a principal purpose of providing the property for use by that Qualified User or Non-Qualified User. Any Qualified User or Non-Qualified User using all or any portion of the Financed Improvements under this type of arrangement may have a right of first refusal to renew the agreement at rates generally in effect at the time of the renewal. (d) Agreements with Qualified Users or Non-Qualified Users to use all or a portion of the Financed Improvements for a period up to 50 days in length pursuant to a negotiated arm's-length arrangement at fair market value so long as the Financed Improvements was not constructed for a principal purpose of providing the property for use by that person. "Qualified User'' means a state, territory, possession of the United States, the District of Columbia, or any political subdivision thereof, or any instrumentality of such entity, but it does not include the United States or any agency or instrumentality of the United States. "Reasonable Retainage" means Gross Proceeds retained by the Issuer for reasonable business purposes, such as to ensure or promote compliance with a construction contract; provided that such amount may not exceed (a) for purposes of the 18-month spending test, 5% of net sale proceeds of the 600596.20227\FTC 5 New Money Portion on the date 18 months after the Issue Date, or (b) for purposes of the 2-year spending test, 5% of the Available Construction Proceeds as of the end of the 2-year spending period. "Rebate Analyst" means Gilmore & Bell, P.C. or any successor rebate analyst selected pursuant to this Tax Certificate. "Rebate Fund" means the Rebate Fund for General Obligation Internal Improvement Bonds, Series 2022-A established under the Bond Resolution. "Refunded Notes" means the Series 2021-1 Notes maturing May 1, 2022 in the aggregate principal amount of $5,230,000. "Refunding Portion" means the portion of the Bonds properly allocable to the refunding of the Refunded Notes. "Regulations" means a11 Regulations issued by the U.S. Treasury Department to implement the provisions of Code§§ 103 and 141 through 150 and applicable to the Bonds. "Series 2021-1 Notes" means the Issuer's General Obligation Temporary Notes, Series 2021-1, dated April 29, 2021. "State" means the State of Kansas. "Tax Certificate" means this Federal Tax Certificate as it may from time to time be amended and supplemented in accordance with its terms. "Tax Compliance Procedure" means the Issuer's Tax and Securities Compliance Policy and Procedure, dated June 11, 2012, as amended and supplemented in accordance with the terms of the Tax Compliance Procedure. "Tax-Exempt Bond File" means documents and records for the Bonds, maintained by the Bond Compliance Officer pursuant to the Tax Compliance Procedure. "Transcript" means the Transcript of Proceedings relating to the authorization and issuance of the Bonds. "Yield" means yield on the Bonds, computed under Regulations § 1.148-4, and yield on an Investment, computed under Regulations § 1.148-5. ARTICLE II GENERAL REPRESENTATIONS AND COVENANTS Section 2.01 Representations and Covenants of the Issuer. The Issuer represents and covenants as follows: (a) Organization and Authority. The Issuer: (1) is a city of the first class, duly created, organized and existing under the Constitution and laws of the State, (2) has lawful power and authority to 600596.20227\FI'C 6 issue the Bonds for the purposes set forth in the Bond Resolution, to enter into, execute and deliver the Bond Resolution, the Bonds, and this Tax Certificate and to carry out its obligations under this Tax Certificate and under such documents, and (3) by all necessary action has been duly authorized to execute and deliver the Bond Resolution, the Bonds, and this Tax Certificate, acting by and through its duly authorized officials. (b) Tax-Exempt Status of Bonds-General Covenant. The Issuer (to the extent within its power or direction) will not use any money on deposit in any fund or account maintained in connection with the Bonds, whether or not such money was derived from the proceeds of the sale of the Bonds or from any other source, in a manner that would cause the Bonds to be "arbitrage bonds," within the meaning of Code§ 148, and will not (to the extent within its power or direction) otherwise use or permit the use of any Bond proceeds or any other funds of the Issuer, directly or indirectly, in any manner, or take or permit to be taken any other action or actions, that would cause interest on the Bonds to be included in gross income for federal income tax purposes. (c) Governmental Obligations-Use of Proceeds. Throughout the Measurement Period: (1) all of the Financed Improvements have been and are expected to be owned by the Issuer or another Qualified User; (2) no portion of the Financed Improvements has been or is expected to be used in a Non- Qualified Use; and (3) the Issuer will not permit any Non-Qualified Use of the Financed Improvements without first consulting with Bond Counsel. The Issuer will monitor the usage of all portions of the Financed Improvements during the Measurement Period. If the Non-Qualified Use of the Financed Improvements exceeds 10% of the total use over the Measurement Period, then the Issuer will take "remedial action" in accordance with Regulations§ 1.141-12, as specified in advice from Bond Counsel, as necessary to maintain the exclusion of the interest on the Bonds from gross income for federal income tax purposes. The Issuer understands that remedial action could include redemption or defeasance of all or a portion of the Bonds. ( d) Governmental Obligations-Private Security or Payment. As of the Issue Date, the Issuer expects that none of the principal and interest on the Bonds will be, and none of the principal of and interest on the Refunded Notes has been, (under the terms of the Bonds or any underlying arrangement) directly or indirectly: (1) secured by (i) any interest in property used or to be used for a Non-Qualified Use, or (ii) any interest in payments in respect of such property; or (2) derived from payments (whether or not such payments are made to the Issuer) in respect of property, or borrowed money, used or to be used for a Non-Qualified Use. For purposes of the foregoing, taxes of general application, including payments in lieu of taxes, are not treated as private payments or as private security. The Issuer will not permit any private security or payment with respect to the Bonds without first consulting with Bond Counsel. (e) No Private Loan, Special Assessments. Not more than 5% of the Net Proceeds of the Bonds will be loaned directly or indirectly to any Non-Qualified User. The payment of principal and interest on the Bonds will be funded in whole or in part from mandatory special assessments against certain of the property benefiting from the Financed Improvements. The use of the proceeds of the Bonds for this purpose is not treated as a loan, because ( 1) the special assessment is an enforced contribution for the purpose of raising revenue for specific capital improvements; (2) the assessment does not include any fee for services; (3) the imposition and collection of the assessment is not dependent upon, and does not 600596.20227\FTC 7 vary depending on, whether the taxpayer is engaged, or the property is used, in a trade or business; and ( 4) the assessment is imposed to pay for an essential governmental function. (f) Management Agreements. As of the Issue Date, the Issuer has not entered into any Management Agreements with Non-Qualified Users. During the Measurement Period, the Issuer will not enter into or renew any Management Agreement with any Non-Qualified User without first consulting with Bond Counsel. (g) Leases. As of the Issue Date, the Issuer has not entered into any leases of any portion of the Financed Improvements. During the Measurement Period, the Issuer will not enter into or renew any lease or similar agreement or arrangement other than a Qualified Use Agreement without first consulting with Bond Counsel. (h) Qualified Improvements. A portion of the Bond proceeds will be used to permanently finance improvements to the Issuer's facility known as the Tony's Pizza Event's Center, and specifically the Improvement referred to as Tony's Pizza Event's Center HVAC. Such facility is owned by the Issuer, and all such improvements thereto financed in whole or in part by the Bonds will be owned by the Issuer. A portion of the Tony's Pizza Event's Center may otherwise be used in a Non-Qualified Use, but any improvements to be financed in whole or in part by the Bonds constitute "qualified improvements" under Regulations § 1.141-3(d)(6) that do not give rise to Non-Qualified Use of the Bonds or the Financed Improvements, because the Tony's Pizza Event's Center was placed in service more than one year before the acquisition or construction of the improvements thereto, the improvements will not be an enlargement of the Tony's Pizza Event's Center or an improvement of interior space occupied exclusively for any Non-Qualified Use, no portion of the Tony's Pizza Event's Center or any payments in respect thereof constitute private security under Code§ 141(b)(2)(A), and no more than 15% of the Tony's Pizza Event's Center is used for a Non-Qualified Use. Therefore, the Issuer does not expect any Non-Qualified Use of the Bonds or the Financed Improvements attributable to these "qualified improvements." (i) Limit on Maturity of Bonds. A list of the assets included in the Financed Improvements and a computation of the "average reasonably expected economic life" is attached to this Tax Certificate as Exhibit D. Based on this computation, the "average maturity" of the Bonds, as computed by Bond Counsel, does not exceed 120% of the average reasonably expected economic life of the Financed Improvements. (j) Expenditure of Bond Proceeds. 600596.20227\FfC (1) Reimbursement of Expenditures; Official Intent. (A) New Money Portion. The governing body of the Issuer adopted one or more resolutions declaring the intent of the Issuer to finance the New Money Portion of the Financed Improvements with tax-exempt bonds and to reimburse the Issuer for expenditures made for the New Money Portion of the Financed Improvements prior to the issuance of those bonds. The resolutions are contained in the Transcript. The Issuer does not expect to reimburse itself for expenditures made for the Financed Improvements before the Issue Date. (B) Refunding Portion. The governing body of the Issuer adopted one or more resolutions declaring the intent of the Issuer to finance the Financed Improvements with tax-exempt bonds and to reimburse the Issuer for expenditures made for the Financed Improvements prior to the issuance of the Original Obligations. No portion of 8 the Net Proceeds of the Original Obligations was used to reimburse an expenditure paid by the Issuer more than 60 days prior to the date the respective resolution was adopted, except for Preliminary Expenditures. No portion of the Net Proceeds of the Original Obligations has been or will be used to make a reimbursement allocation for an expenditure made more than 3 years before the date of the reimbursement allocation, except for Preliminary Expenditures. No portion of the Net Proceeds of the Original Obligations has been or will be used to make a reimbursement allocation more than 18 months following the later of (i) the date of the expenditure or (ii) the date the Financed Improvements was placed in service, except for Preliminary Expenditures. The Issuer evidenced each allocation of the proceeds of the Original Obligations to an expenditure in writing. (2) Final Allocation of Bond Proceeds to Expenditures. (A) New Money Portion. The Issuer understands that, under Regulations § 1.148-6(d), the Issuer is required to account for the Final Written Allocation of Bond proceeds to Improvement expenditures (including expenditures made before and after the Issue Date) within 18 months after the later of (i) the date the expenditure is made, or (ii) the date the Improvements are placed in service, and in any event not later than the date that is 60 days after the fifth anniversary of the Issue Date, or the date the Bonds are retired, if earlier. The Issuer will maintain accurate records of all expenditures made for the Improvements, including the amount, the date paid, a description of the purpose, and the source of funds (whether Bond proceeds or other money) initially allocated to each Improvement expenditure. Not later than the time limit set forth above, the Issuer will prepare a Final Written Allocation, showing the allocation of Bond proceeds and other money to all Improvement costs and identifying the Financed Improvement, and will maintain the Final Written Allocation in its books and records in accordance with Section 4.02 hereof. The Issuer reserves the right to make modifications to the expected allocation of Bond proceeds and other money for purposes of compliance with the limitations on Non-Qualified Use following completion of the Financed Improvement in accordance with, and within the time limits prescribed in, the Regulations. In the absence of such subsequent allocation, the Bond proceeds will be deemed allocated as shown on ExhibitD. (B) Refunding Portion. The Improvements were or are expected to be placed in service on the dates listed on Exhibit D. The Issuer made a Final Written Allocation of proceeds of the Original Obligations to Improvements expenditures, a copy of which is attached to this Tax Certificate as Exhibit D. The Issuer will maintain the Final Written Allocation and accurate supporting records of all expenditures made for the Improvements, including the amount, the date paid, a description of the purpose, and the source of funds (whether Bond proceeds or other money) allocated to each Improvement expenditure, in accordance with Section 4.02 of this Tax Certificate. (k) Registered Bonds. The Bond Resolution requires that all of the Bonds will be issued and held in registered form within the meaning of Code§ 149(a). (1) Bonds Not Federally Guaranteed. The Issuer will not take any action or permit any action to be taken which would cause any Bond to be "federally guaranteed" within the meaning of Code § 149(b). 600596.20227\FIC 9 (m) IRS Form 8038-G. Bond Counsel will prepare IRS Form 8038-G (Information Return for Tax-Exempt Governmental Obligations) based on the representations and covenants of the Issuer contained in this Tax Certificate or otherwise provided by the Issuer. Bond Counsel will sign the return as a paid preparer following completion and will then deliver copies to the Issuer for execution and for the Issuer's records. The Issuer agrees to timely execute and return to Bond Counsel the execution copy of Form 8038-G filing with the IRS. A copy of the IRS Form 8038-G as filed with the IRS with proof of filing will be included in Exhibit A of Tax Certificate. (n) Hedge Bonds. At least 85% of the Net Proceeds of the New Money Portion will be used to carry out the governmental purpose of the New Money Portion within 3 years after the Issue Date, and not more than 50% of the proceeds of the New Money Portion will be invested in Investments having a substantially guaranteed Yield for four years or more. At least 85% of the net sale proceeds (the sale proceeds of the Original Obligations less any sale proceeds invested in a reserve fund) of the Original Obligations were used to carry out the governmental purpose of the Original Obligations within 3 years after the issue date of the Original Obligations, and not more than 50% of the proceeds of the Original Obligations were invested in Investments having a substantially guaranteed Yield for 4 years or more. (o) Single Issue; No Other Issues. The Bonds constitute a single "issue" under Regulations § 1.150-l(c). No other debt obligations of the Issuer: (1) are being sold within 15 days of the sale of the Bonds, (2) are being sold under the same plan of financing as the Bonds, and (3) are expected to be paid from substantially the same source of funds as the Bonds (disregarding guarantees from unrelated parties, such as bond insurance). (p) Interest Rate Swap. As of the Issue Date, the Issuer has not entered into an interest rate swap agreement or any other similar arrangement designed to modify its interest rate risk with respect to the Bonds. The Issuer will not enter into any such arrangement in the future without first consulting with Bond Counsel. (q) Guaranteed Investment Contract. As of the Issue Date, the Issuer does not expect to enter into a Guaranteed Investment Contract for any Gross Proceeds of the Bonds. The Issuer will be responsible for complying with Section 4.04(d) hereof if it decides to enter into a Guaranteed Investment Contract at a later date. (r) Bank Qualified Tax-Exempt Obligation. The Issuer designates the Bonds as "qualified tax-exempt obligations" under Code§ 265(b)(3), and with respect to this designation certifies as follows: (1) The Issuer reasonably anticipates that the amount of tax-exempt obligations (other than private activity bonds that are not qualified 501(c)(3) bonds) that will be issued by or on behalf of the Issuer (and all subordinate entities of the Issuer) during the calendar year that the Bonds are issued, including the Bonds, will not exceed $10,000,000; and (2) the Issuer (including all subordinate entities of the Issuer) will not issue tax- exempt obligations (other than private activity bonds that are not qualified 50l(c)(3) bonds) during the calendar year that the Bonds are issued, including the Bonds, in an aggregate principal amount or aggregate issue price in excess of $10,000,000, without first consulting with Bond Counsel that the designation of the Bonds as "qualified tax-exempt obligations" will not be adversely affected. 600596.20227\FTC 10 (s) General Allocation and Accounting. The portion of the Improvements financed or refinanced by the Bonds may have been financed in part with other funds of the Issuer. The portion of the Improvements financed or refinanced with proceeds of the Original Obligations or the Bonds is referred to as the Financed Improvements. Attached as Exhibit D is a schedule showing the Improvements financed or refinanced, in whole or in part, with proceeds of the Original Obligations or the Bonds. For purposes of determining Non-Qualified Use, if any, of the Financed Improvements during the Measurement Period, the Issuer will allocate Non-Qualified Use first to the portion of the applicable Improvements financed with other funds of the Issuer and second to the Financed Improvements. During the Measurement Period, the Issuer will, on an annual basis, determine the extent to which Non-Qualified Use exceeds the portion of the applicable Improvements financed with other funds of the Issuer and determine the extent to which the proceeds of the Bonds and the Financed Improvements are used in a Non-Qualified Use. (t) Compliance with Future Tax Requirements. The Issuer understands that the Code and the Regulations may impose new or different restrictions and requirements on the Issuer in the future. The Issuer will comply with such future restrictions that are necessary to maintain the exclusion of the interest on the Bonds from gross income for federal income tax purposes. Section 2.02 Continuing Application of Representations and Covenants. All representations, covenants and certifications contained in this Tax Certificate or in any certificate or other instrument delivered by the Issuer under this Tax Certificate, will survive the execution and delivery of such documents and the issuance of the Bonds, as representations of facts existing as of the date of execution and delivery of the instruments containing such representations. The foregoing covenants of this Section will remain in full force and effect notwithstanding the defeasance of the Bonds. ARTICLE III ARBITRAGE CERTIFICATIONS AND COVENANTS Section 3.01 General. The purpose of this Article is to certify, under Regulations § l. l 48-2(b ), the Issuer's expectations as to the sources, uses and investment of Bond proceeds and other money, in order to support the Issuer's conclusion that the Bonds are not arbitrage bonds. The person executing this Tax Certificate on behalf of the Issuer is an officer of the Issuer responsible for issuing the Bonds. Section 3.02 Reasonable Expectations. The facts, estimates and expectations set forth in this Article are based upon and in reliance upon the Issuer's understanding of the documents and certificates that comprise the Transcript, and the representations, covenants and certifications of the parties contained therein. To the Issuer's knowledge, the facts and estimates set forth in this Tax Certificate are accurate, and the expectations of the Issuer set forth in this Tax Certificate are reasonable. The Issuer has no knowledge that would cause it to believe that the representations, warranties and certifications described in this Tax Certificate are unreasonable or inaccurate or may not be relied upon. Section 3.03 Purpose of Financing. The Bonds are being issued for the purpose of providing funds to pay: (a) a portion of the costs of the Financed Improvements; (b) the costs of refunding the Refunded Notes; and (c) Costs of Issuance. 600596.20227\FfC 11 Section 3.04 Funds and Accounts. The following funds and accounts have been established under the Bond Resolution: (a) Improvement Fund. (b) Debt Service Account. ( c) Rebate Fund. ( d) Costs of Issuance Account. Section 3.05 Amount and Use of Bond Proceeds and Other Moneys. (a) Amount of Bond Proceeds. The total proceeds to be received by the Issuer from the sale of the Bonds are as evidenced in Exhibit B attached to this Tax Certificate and calculated as follows: (b) as follows: Principal Amount Less Underwriter's Discount Plus Original Issue Premium Less Original Issue Discount Total Purchase Price Less Good Faith Deposit NetAmount $7,840,000.00 -46,648.00 398,485.90 -909.60 $8,190,928.30 -163.900.00 $8,027,028.30 Use of Bond Proceeds. The Bond proceeds are expected to be allocated to expenditures (1) The sum of $82,629.91 will be deposited in the Costs of Issuance Account and used to pay the Costs of Issuance of the Bonds. (2) The remaining Bond proceeds in the amount of $8,108,298.39 will be deposited in the Improvement Fund, with $5,335,181.11 of such amount used to retire the Refunded Notes and $2,773,117.28 used to pay the costs of the Financed Improvements. In addition to the proceeds of the Bonds, the Issuer will apply prepaid special assessments in the amount of $567 .91 to pay a portion of the costs of the Financed Improvements Section 3.06 Multipurpose Issue. The Issuer is applying the arbitrage rules to separate financing purposes of the issue that have the same initial temporary period as if they constitute a single issue for purposes pursuant to Regulations§ l.148-9(h)(3)(i). Under Regulations§ l.148-9(h), the Bonds will be treated as two separate issues (a New Money Portion and a Refunding Portion) for purposes of applying certain of the arbitrage restrictions under Code § 148. Section 3.07 No Advance Refunding. No proceeds of the Bonds will be used more than 90 days following the Issue Date to pay principal or interest on any other debt obligation. Section 3.08 Current Refunding. (a) Proceeds Used For Current Refunding. Proceeds of the Refunding Portion will be used to pay principal and interest on the Refunded Notes. All such proceeds shall be spent not later than 90 days after the Issue Date. (b) Transferred Proceeds. As of the Issue Date, approximately $1,500,000 of unspent proceeds of the Refunded Notes remains in the improvement fund therefor. As of the date the Refunded 600596.20227\FTC 12 Notes are discharged with proceeds of the Bonds, such remaining unspent proceeds of the Refunded Notes will become "transferred proceeds" ( within the meaning of Regulations § 1.148-9(b)) of the Bonds. Section 3.09 Completion of Financed Improvements; New Money Portion. The Issuer has incurred, or will incur within 6 months after the Issue Date, a substantial binding obligation to a third party to spend at least 5% of the Net Proceeds of the New Money Portion on the Financed Improvements. The completion of the Financed Improvements and the allocation of the Net Proceeds of the New Money Portion to expenditures will proceed with due diligence. At least 85% of the Net Proceeds of the New Money Portion will be allocated to expenditures on the Financed Improvements within 3 years after the Issue Date. Section 3.10 Sinking Funds. The Issuer is required to make periodic payments in amounts sufficient to pay the principal of and interest on the Bonds. Such payments will be deposited into the Debt Service Account. Except for the Debt Service Account, no sinking fund or other similar fund that is expected to be used to pay principal of or interest on the Bonds has been established or is expected to be established. The Debt Service Account is used primarily to achieve a proper matching of revenues with principal and interest payments on the Bonds within each Bond Year, and the Issuer expects that the Debt Service Account will qualify as a Bona Fide Debt Service Fund. Section 3.11 Reserve, Replacement and Pledged Funds. (a) No Reserve Fund. No reserve fund has been or will be established for the Bonds. (b) No Replacement or Pledged Funds. None of the Bond proceeds will be used as a substitute for other funds that were intended or earmarked to pay costs of the Financed Improvements or refund the Refunded Notes, and that instead has been or will be used to acquire higher yielding Investments. Except for the Debt Service Account, there are no other funds pledged or committed in a manner that provides a reasonable assurance that such funds would be available for payment of the principal of or interest on the Bonds if the Issuer encounters financial difficulty. Section 3.12 Purpose Investment Yield. The proceeds of the Bonds will not be used to purchase an Investment for the purpose of carrying out the governmental purpose of the financing. Section 3.13 Issue Price and Bond Yield. (a) Issue Price. Based on the Purchaser's certifications in its Receipt and Representation attached hereto as Exhibit C-1 and the Municipal Advisor's certifications in its Certificate of Municipal Advisor attached hereto as Exhibit C-2, the Issuer hereby elects to establish the issue prices of the Bonds pursuant to Regulations§ 1.148-l(f)(2)(iii) (relating to the so-called "competitive sales rule"). Therefore, the aggregate issue price of the Bonds for such purpose is $8,237,576.30, without accrued interest. (b) Bond Yield. Based on the issue price, the Yield on the Bonds is 2.471617%, as computed by Bond Counsel as shown on Exhibit A. The Issuer has not entered into an interest rate swap agreement with respect to any portion of the proceeds of the Bonds. Section 3.14 Miscellaneous Arbitrage Matters. (a) No Abusive Arbitrage Device. The Bonds are not and will not be part of a transaction or series of transactions that has the effect of (1) enabling the Issuer to exploit the difference between tax- 6005%.20227\FfC 13 exempt and taxable interest rates to gain a material financial advantage, and (2) overburdening the tax- exempt bond market. (b) No Over-Issuance. The sale proceeds of the Bonds, together with expected Investment earnings thereon and other money contributed by the Issuer, do not exceed the cost of the governmental purpose of the Bonds as described above. Section 3.15 Conclusion. On the basis of the facts, estimates and circumstances set forth in this Tax Certificate, the Issuer does not expect that the Bond proceeds will be used in a manner that would cause any Bond to be an "arbitrage bond" within the meaning of Code§ 148 and the Regulations. ARTICLE IV TAX COMPLIANCE POLICIES AND PROCEDURES Section 4.01 General. (a) Purpose of Article. The purpose of this Article is to supplement the Tax Compliance Procedure and to set out specific policies and procedures governing compliance with the federal income tax requirements that apply after the Bonds are issued. The Issuer recognizes that interest on the Bonds will remain excludable from gross income only if the Post-Issuance Tax Requirements are followed after the Issue Date. The Issuer further acknowledges that written evidence substantiating compliance with the Post-Issuance Tax Requirements must be retained in order to permit the Bonds to be refinanced with tax- exempt obligations and substantiate the position that interest on the Bonds is exempt from gross income in the event of an audit of the Bonds by the IRS. (b) Written Policies and Procedures of the Issuer. The Issuer intends for the Tax Compliance Procedure, as supplemented by this Tax Certificate, to be its primary written policies and procedures for monitoring compliance with the Post-Issuance Tax Requirements for the Bonds and to supplement any other formal policies and procedures related to the Post-Issuance Tax Requirements that the Issuer has established or establishes in the future. The provisions of this Tax Certificate are intended to be consistent with the Tax Compliance Procedure. In the event of any inconsistency between the Tax Compliance Procedure and this Tax Certificate, the terms of this Tax Certificate will govern. (c) Bond Compliance Officer. The Issuer, when necessary to fulfill the Post-Issuance Tax Requirements, will, through its Bond Compliance Officer, sign Form 8038-T in connection with the payment of arbitrage rebate or Yield reduction payments, participate in any federal income tax audit of the Bonds or related proceedings under a voluntary compliance agreement procedures (VCAP) or undertake a remedial action procedure pursuant to Regulations § 1.141-12. In each case, all costs and expenses incurred by the Issuer shall be treated as a reasonable cost of administering the Bonds and the Issuer shall be entitled to reimbursement and recovery of its costs to the same extent as provided in the Bond Resolution or State law. Section 4.02 Record Keeping; Use of Bond Proceeds and Use of Financed Improvements. (a) Record Keeping. The Bond Compliance Officer will maintain the Tax-Exempt Bond File for the Bonds in accordance with the Tax Compliance Procedure. Unless otherwise specifically instructed in writing from Bond Counsel or to the extent otherwise provided in this Tax Certificate, the Bond Compliance Officer shall retain records related to the Post-Issuance Tax Requirements until 3 years 600596.20227\FTC 14 following the final maturity of (1) the Bonds or (2) any obligation issued to refund the Bonds. Any records maintained electronically must comply with Section 4.01 of Revenue Procedure 97-22, which generally provides that an electronic storage system must (A) ensure an accurate and complete transfer of the hardcopy records which indexes, stores, preserves, retrieves and reproduces the electronic records, (B) include reasonable controls to ensure integrity, accuracy and reliability of the electronic storage system and to prevent unauthorized alteration or deterioration of electronic records, (C) exhibit a high degree of legibility and readability both electronically and in hardcopy, (D) provide support for other books and records of the Issuer and (5) not be subject to any agreement that would limit the ability of the IRS to access and use the electronic storage system on the Issuer's premises. (b) Accounting and Allocation of Bond Proceeds and Qualified Equity to Expenditures. The Bond Compliance Officer will account for the investment and expenditure of Bond proceeds in the level of detail required by the Tax Compliance Procedure. The expected allocation of the proceeds of the Bonds and other Issuer fund to expenditures for the Improvements is set forth on Exhibit D. If necessary or desirable, the Bond Compliance Officer will supplement this expected allocation with a Final Written Allocation, within 18 months after the later of (1) the date the expenditure is made, or (2) the date the Improvements are placed in service, and in any event not later than the date that is 60 days after the fifth anniversary of the Issue Date, or the date the Bonds are retired, if earlier. In the absence of such subsequent allocation, the Bond proceeds will be deemed allocated as shown on Exhibit D. (c) Annual Compliance Checklist. Attached as Exhibit Eis a sample Annual Compliance Checklist for the Bonds. The Bond Compliance Officer will prepare and complete an Annual Compliance Checklist for the Financed Improvements at least annually in accordance with the Tax Compliance Procedure. In the event the Annual Compliance Checklist identifies a deficiency in compliance with the requirements of this Tax Certificate, the Bond Compliance Officer will take the actions identified in advice from Bond Counsel or the Tax Compliance Procedure to correct any deficiency. ( d) Advice from Bond Counsel. The Bond Compliance Officer is responsible for obtaining and delivering to the Issuer any advice received from Bond Counsel required under the provisions of this Tax Certificate or the Annual Compliance Checklist. Section 4.03 Restrictions on Investment Yield. Except as described below, Gross Proceeds must not be invested at a Yield greater than the Yield on the Bonds: (a) Improvement Fund -New Money Portion. Bond proceeds deposited in the Improvement Fund allocable to the New Money Portion and investment earnings on such proceeds may be invested without Yield restriction for up to 3 years following the Issue Date. If any unspent proceeds remain in the Improvement Fund after 3 years, those amounts may continue to be invested without Yield restriction so long as the Issuer pays to the IRS all Yield reduction payments in accordance with Regulations § l.148-5(c). These payments are required whether or not the Bonds are exempt from the arbitrage rebate requirements of Code§ 148. (b) Improvement Fund-Refunding Portion. Bond proceeds deposited in the Improvement Fund allocable to a current refunding of the Refunded Notes may be invested without Yield restriction for up to 90 days after the Issue Date. (c) Cost of Issuance Account. Bond proceeds deposited in the Costs of Issuance Account allocable to the New Money Portion and investment earnings on such proceeds may be invested without Yield restriction for 3 years after the Issue Date. Bond proceeds deposited in the Costs of Issuance Account allocable to the Refunding Portion and investment earnings on such proceeds may be invested 600596.20227\FTC 15 without Yield restriction for 13 months after the Issue Date. If any unspent proceeds remain in the Costs of Issuance Account after the applicable time, such amounts may continue to be invested without Yield restriction so long as the Issuer pays to the IRS all Yield reduction payments in accordance with Regulations § 1.148-5(c). These payments are required whether or not the Bonds are exempt from the arbitrage rebate requirements of Code§ 148. (d) Debt Service Account. To the extent that the Debt Service Account qualifies as a Bona Fide Debt Service Fund, money in such account may be invested without Yield restriction for 13 months after the date of deposit. Earnings on such amounts may be invested without Yield restriction for 1 year after the date of receipt of such earnings. (e) Rebate Fund. Money other than sale proceeds or Investment proceeds of the Bonds on deposit in the Rebate Fund may be invested without Yield restriction. (f) Transferred Proceeds. Any unexpended proceeds of the Refunded Notes that become transferred proceeds of the Bonds may continue to be invested without Yield restriction for up to three years following the applicable issue date of the Original Obligations. If any unspent proceeds remain after such time, such amounts may continue to be invested without Yield restriction so long as the Issuer pays to the IRS all Yield reduction payments in accordance with Regulations § 1.148-5(c). These payments are required whether or not the Refunded Notes are exempt from the arbitrage rebate requirements of Code§ 148. (g) Minor Portion. In addition to the amounts described above, Gross Proceeds not exceeding the Minor Portion may be invested without Yield restriction. Section 4.04 Procedures for Establishing Fair Market Value of Investments. (a) General. No Investment may be acquired with Gross Proceeds for an amount (including transaction costs) in excess of the fair market value of such Investment, or sold or otherwise disposed of for an amount (including transaction costs) less than the fair market value of the Investment. The fair market value of any Investment is the price a willing buyer would pay to a willing seller to acquire the Investment in a bona fide, arm's-length transaction. Fair market value will be determined in accordance with Regulations§ 1.148-5. (b) Established Securities Market. Except for Investments purchased for a yield-restricted defeasance escrow, if an Investment is purchased or sold in an arm's-length transaction on an established securities market (within the meaning of Code § 1273), the purchase or sale price constitutes the fair market value. Where there is no established securities market for an Investment, market value must be established using one of the paragraphs below. The fair market value of Investments purchased for a Yield-restricted defeasance escrow must be determined in a bona fide solicitation for bids that complies with Regulations§ 1.148-5. (c) Certificates of Deposit. The purchase price of a certificate of deposit (a "CD") is treated as its fair market value on the purchase date if (1) the CD has a fixed interest rate, a fixed payment schedule, and a substantial penalty for early withdrawal, (2) the Yield on the CD is not less than the Yield on reasonably comparable direct obligations of the United States, and (3) the Yield is not less than the highest Yield published or posted by the CD issuer to be currently available on reasonably comparable CDs offered to the public. (d) Guaranteed Investment Contracts. The Issuer is applying Regulations § 1.148- 5(d)(6)(iii)(A) (relating to electronic bidding of Guaranteed Investment Contracts) to the Bonds. The 600596.20227\FfC 16 purchase price of a Guaranteed Investment Contract is treated as its fair market value on the purchase date if all of the following requirements are met: (1) Bona Fide Solicitation for Bids. The Issuer makes a bona fide solicitation for the Guaranteed Investment Contract, using the following procedures: (A) The bid specifications are in writing and are timely forwarded to potential providers, or are made available on an internet website or other sinnlar electronic media that is regularly used to post bid specifications to potential bidders. A writing includes a hard copy, a fax, or an electronic e-mail copy. (B) The bid specifications include all "material" terms of the bid. A term is material if it may directly or indirectly affect the yield or the cost of the Guaranteed Investment Contract. (C) The bid specifications include a statement notifying potential providers that submission of a bid is a representation (i) that the potential provider did not consult with any other potential provider about its bid, (ii) that the bid was determined without regard to any other formal or informal agreement that the potential provider has with the Issuer, or any other person (whether or not in connection with the bond issue), and (iii) that the bid is not being submitted solely as a courtesy to the Issuer, or any other person, for purposes of satisfying the requirements of the Regulations. (D) The terms of the bid specifications are "commercially reasonable." A term is commercially reasonable if there is a legitimate business purpose for the term other than to increase the purchase price or reduce the yield of the Guaranteed Investment Contract. (E) The terms of the solicitation take into account the Issuer's reasonably expected deposit and draw-down schedule for the amounts to be invested. (F) All potential providers have an equal opportunity to bid. If the bidding process affords any opportunity for a potential provider to review other bids before providing a bid, then providers have an equal opportunity to bid only if all potential providers have an equal opportunity to review other bids. Thus, no potential provider may be given an opportunity to review other bids that is not equally given to all potential providers (that is no exclusive "last look"). (G) At least 3 "reasonably competitive providers" are solicited for bids. A reasonably competitive provider is a provider that has an established industry reputation as a competitive provider of the type of investments being purchased. (2) Bids Received. The bids received by the Issuer must meet all of the following requirements: 600596.20227\FTC (A) The Issuer receives at least 3 bids from providers that were solicited as described above and that do not have a "material financial interest" in the issue. For this purpose, (i) a lead underwriter in a negotiated underwriting transaction is deemed to have a material financial interest in the issue until 15 days after the issue date of the issue, (ii) any entity acting as a financial advisor with respect to the purchase of the Guaranteed Investment Contract at the time the bid specifications are forwarded to potential providers 17 has a material financial interest in the issue, and (iii) a provider that is a related party to a provider that has a material financial interest in the issue is deemed to have a material financial interest in the issue. (B) At least 1 of the 3 bids received is from a reasonably competitive provider, as defined above. (C) If the Issuer uses an agent or broker to conduct the bidding process, the agent or broker did not bid to provide the Guaranteed Investment Contract. (3) Winning Bid. The winning bid is the highest yielding bona fide bid (determined net of any broker's fees). (4) Fees Paid. The obligor on the Guaranteed Investment Contract certifies the administrative costs that it pays (or expects to pay, if any) to third parties in connection with supplying the Guaranteed Investment Contract. (5) Records. The Issuer retains the following records with the bond documents until 3 years after the last outstanding Bond is redeemed: (A) A copy of the Guaranteed Investment Contract. (B) The receipt or other record of the amount actually paid by the Issuer for the Guaranteed Investment Contract, including a record of any administrative costs paid by the Issuer, and the certification as to fees paid, described in paragraph (d)(4) above. (C) For each bid that is submitted, the name of the person and entity submitting the bid, the time and date of the bid, and the bid results. (D) The bid solicitation form and, if the terms of the Guaranteed Investment Contract deviated from the bid solicitation form or a submitted bid is modified, a brief statement explaining the deviation and stating the purpose for the deviation. (e) Other Investments. If an Investment is not described above, the fair market value may be established through a competitive bidding process, as follows: (1) At least 3 bids on the Investment must be received from persons with no financial interest in the Bonds (e.g., as underwriters or brokers); and (2) the Yield on the Investment must be equal to or greater than the Yield offered under the highest bid. Section 4.05 Certain Gross Proceeds Exempt from the Rebate Requirement. 600596.20227\FTC 18 (a) General. A portion of the Gross Proceeds of the Bonds may be exempt from rebate pursuant to one or more of the following exceptions. The exceptions typically will not apply with respect to all Gross Proceeds of the Bonds and will not otherwise affect the application of the Investment limitations described in Section 4.03. Unless specifically noted, the obligation to compute, and if necessary, to pay rebate as set forth in Section 4.06 applies even if a portion of the Gross Proceeds of the Bonds is exempt from the rebate requirement. To the extent all or a portion of the Bonds is exempt from rebate the Rebate Analyst may account for such fact in connection with its preparation of a rebate report described in Section 4.06. The Issuer may defer the final rebate Computation Date and the payment of rebate for the Bonds to the extent permitted by Regulations§§ 1.148-7(b)(l) and 1.148-3(e)(2) but only in accordance with specific written instructions provided by the Rebate Analyst. (b) Applicable Spending Exceptions. (1) The Issuer expects that at least 75% of the Available Construction Proceeds will be used for construction or rehabilitation expenditures for property owned by the Issuer. (2) The following optional rebate spending exceptions can apply to the New Money Portion, the Refunding Portion and the transferred proceeds of the Original Obligations: New Money Portion: (A) 6-month spending exception (Code § 148(f)(4)(B) and Regulations § 1.148-7(c)). (B) (C) § l.148-7(e)). 18-month spending exception (Regulations§ 1.148-7(d)). 2-year spending exception (Code § 148(f)(4)(C) and Regulations Refunding Portion: 6-month spending exception (Code § 148(f)(4)(B) and Regulations§ 1.148-7(c)). Transferred proceeds of the Original Obligations: 6, 18, or 24-month spending exception (Regulations § 1.148-7 (b )( 1 )(i)) in accordance with the applicable federal tax certificate for the Original Obligations. (c) Special Elections Made with Respect to Spending Exception Elections. No special elections are being made in connection with the application of the spending exceptions. (d) Bona Fide Debt Service Fund. To the extent that the Debt Service Account qualifies as a Bona Fide Debt Service Fund, Investment earnings in the Debt Service Account cannot be taken into account in computing arbitrage rebate and yield reduction amounts. ( e) Documenting Application of Spending Exception. At any time prior to the first Computation Date, the Issuer may engage the Rebate Analyst to determine whether one or more spending exceptions has been satisfied, and the extent to which the Issuer must continue to comply with Section 4.06. (f) General Requirements for Spending Exception. The following general requirements apply in determining whether a spending exception is met: (1) Using Adjusted Gross Proceeds or Available Construction Proceeds to pay principal of any Bonds is not taken into account as an expenditure for purposes of meeting any of the spending tests. 600596.20227\FfC 19 (2) The 6-month spending exception generally is met if all Adjusted Gross Proceeds of the New Money Portion or the Refunding Portion, as applicable, are spent within six months following the Issue Date. The test may still be satisfied even if up to 5% of the sale proceeds remain at the end of the initial 6-month period, so long as this amount is spent within one year of the Issue Date. (3) The 18-month spending exception generally is met if all Adjusted Gross Proceeds of the New Money Portion are spent in accordance with the following schedule: Time Period After the Issue Date 6 months 12 months 18 months (Final) Minimum Percentage of Adjusted Gross Proceeds Spent 15% 60% 100% (4) The 2-year spending exception generally is met if all Available Construction Proceeds are spent in accordance with the following schedule: Time Period After the Issue Date 6 months 12 months 18 months 24 months (Final) Minimum Percentage of Available Construction Proceeds Spent 10% 45% 75% 100% (5) For purposes of applying the 18-month and 2-year spending exceptions only, the failure to satisfy the final spending requirement is disregarded if the Issuer uses due diligence to complete the Financed Improvements and the failure does not exceed the lesser of 3% of the aggregate issue price the New Money Portion or $250,000. No such exception applies for any other spending period. (6) For purposes of applying the 18-month and 2-year spending exceptions only, the Bonds meet the applicable spending test even if, at the end of the final spending period, proceeds not exceeding a Reasonable Retainage remain unspent, so long as such Reasonable Retainage is spent within 30 months after the Issue Date in the case of the 18-month exception or 3 years after the Issue Date in the case of the 2-year spending exception. (7) Spending exceptions may be applied separately to the New Money Portion and the Refunding Portion of the Bonds and the transferred proceeds of the Original Obligations. 600596.20227\FfC 20 Section 4.06 Computation and Payment of Arbitrage Rebate and Yield Reduction Amounts. (a) Rebate Fund. The Issuer will keep the Rebate Fund separate from all other funds and will administer the Rebate Fund under this Tax Certificate. Any Investment earnings derived from the Rebate Fund will be credited to the Rebate Fund, and any Investment loss will be charged to the Rebate Fund. (b) Computalion of Rebate Amount. The Issuer will provide the Rebate Analyst Investment reports relating to each fund held by it that contains Gross Proceeds of the Bonds together with copies of Investment reports for any funds containing Gross Proceeds that are held by a party other than the Issuer annually as of the end of each Bond Year and not later than ten days following each Computation Date. Each Investment report provided to the Rebate Analyst will contain a record of each Investment, including (1) purchase date, (2) purchase price, (3) information establishing the fair market value on the date such Investment was allocated to the Bonds, (4) any accrued interest paid, (5) face amount, (6) coupon rate, (7) frequency of interest payments, (8) disposition price, (9) any accrued interest received, and (10) disposition date. Such records may be supplied in electronic form. The Rebate Analyst will compute rebate following each Computation Date and deliver a written report to the Issuer together with an opinion or certificate of the Rebate Analyst stating that arbitrage rebate and yield reduction amounts were determined in accordance with the Regulations. Each report and opinion will be provided not later than 45 days following the Computation Date to which it relates. In performing its duties, the Rebate Analyst may rely, in its discretion, on the correctness of financial analysis reports prepared by other professionals. (c) Rebate Payments. Within 60 days after each Computation Date, the Issuer will pay to the United States the rebate and yield reduction amount then due, determined in accordance with the Regulations. Each payment must be (1) accompanied by IRS Form 8038-T and such other forms, documents or certificates as may be required by the Regulations, and (2) mailed or delivered to the IRS at the address shown below, or to such other location as the IRS may direct: Internal Revenue Service Center Ogden, UT 84201 (d) Successor Rebate Analyst. If the firm acting as the Rebate Analyst resigns or becomes incapable of acting for any reason, or if the Issuer desires that a different firm act as the Rebate Analyst, then the Issuer by an instrument or concurrent instruments in writing delivered to the firm then serving as the Rebate Analyst and any other party to this Tax Certificate, will name a successor Rebate Analyst. In each case the successor Rebate Analyst must be a firm of nationally recognized bond counsel or a firm of independent certified public accountants and such firm must expressly agree to undertake the responsibilities assigned to the Rebate Analyst hereunder. ( e) Filing Requirements. The Issuer will file or cause to be filed with the IRS such reports or other documents as are required by the Code in accordance with advice of Bond Counsel. (f) Survival after Defeasance. Notwithstanding anything in the Bond Resolution to the contrary, the obligation to pay arbitrage rebate and yield reduction amounts to the United States will survive the payment or defeasance of the Bonds. 600596.20227\FTC 21 ARTICLE V MISCELLANEOUS PROVISIONS Section 5.01 Term of Tax Certificate. This Tax Certificate will be effective concurrently with the issuance and delivery of the Bonds and will continue in force and effect until the principal of, redemption premium, if any, and interest on all Bonds have been fully paid and all such Bonds are cancelled; provided that the provisions of Article IV of this Tax Certificate regarding payment of arbitrage rebate and all related penalties and interest will remain in effect until all such amounts are paid to the United States and the provisions in Section 4.02 relating to record keeping shall continue in force for the period described therein for records to be retained. Section 5.02 Amendments. This Tax Certificate may be amended from time to time by the Issuer without notice to or the consent of any of the Bond Owners, but only if such amendment is in writing and is accompanied by advice from Bond Counsel to the effect that, under then-existing law, assuming compliance with this Tax Certificate as so amended and the Bond Resolution, such amendment will not cause any Bond to be an arbitrage bond under Code § 148 or otherwise cause interest on any Bond to be included in gross income for federal income tax purposes. No amendment will become effective until the Issuer receives advice from Bond Counsel, addressed to the Issuer, that the amendment will not adversely affect the exclusion of the interest on the Bonds from gross income for federal income tax purposes. Section 5.03 Advice from Bond Counsel. The Issuer may deviate from the provisions of this Tax Certificate if furnished with advice from Bond Counsel to the effect that the proposed deviation will not adversely affect the exclusion of interest on the Bonds from gross income for federal income tax purposes. The Issuer further agrees to comply with any further or different instructions provided in advice from Bond Counsel to the effect that the further or different instructions need to be complied with in order to maintain the validity of the Bonds or the exclusion from gross income of interest on the Bonds. Section 5.04 Reliance. In delivering this Tax Certificate the Issuer is making only those certifications, representations and agreements as are specifically attributed to them in this Tax Certificate. The Issuer is not aware of any facts or circumstances which would cause it to question the accuracy of the facts, circumstances, estimates or expectations of any other party providing certifications as part of this Tax Certificate and, to the best of its knowledge, those facts, circumstances, estimates and expectations are reasonable. The Issuer understands that its certifications will be relied upon by Bond Counsel in rendering its opinion as to the validity of the Bonds and the exclusion from federal gross income of the interest on the Bonds. Section 5.05 Severability. If any provision in this Tax Certificate or in the Bonds is determined to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions will not be affected or impaired. Section 5.06 Benefit of Certificate. This Tax Certificate is binding upon the Issuer, its respective successors and assigns, and inures to the benefit of the Issuer and the owners of the Bonds. Nothing in this Tax Certificate, the Bond Resolution or the Bonds, express or implied, gives to any person, other than the Issuer, its successors and assigns, and the owners of the Bonds, any benefit or any legal or equitable right, remedy or claim under this Tax Certificate. 600596.20227\FfC 22 Section 5.07 Default, Breach and Enforcement. Any misrepresentation of a party contained herein or any breach of a covenant or agreement contained in this Tax Certificate may be pursued by the owners pursuant to the terms of the Bond Resolution or any other document which references this Tax Certificate and gives remedies for a misrepresentation or breach thereof. Section 5.08 Governing Law. This Tax Certificate will be governed by and construed in accordance with the laws of the State. Section 5.09 Electronic Transactions. The transactions described herein may be conducted, and related documents may be sent, received, executed, and stored, by electronic means. Copies, telecopies, electronic files and other reproductions of original executed documents ( or documents executed by electronic means) shall be deemed to be authentic and valid counterparts of such documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20227\FTC 23 THE UNDERSIGNED, Mayor and Finance Director of the Issuer, by their execution of this Tax Certificate hereby make the foregoing certifications, representations, and agreements contained in this Tax Certificate on behalf of the Issuer, as of the Issue Date. 600596.20227\FTC CITY OF SALINA, KANSAS By:-~-'~-,+--,,,<-~____._._' -~ By: _a&---'--'-~~~z:£-~--=------- Finance Director (Signature Page to Federal Tax Certificate) 600596.20227\FI'C EXHIBIT A IRS FORM 8038-G A-1 Form8038•G Information Return for Tax-Exempt Governmental Bonds ►Under Internal Revenue Code section 149(e) (Rev. September 2018) ► See separate instructions. 0MB No. 1545-0720 Department of the Treasury Caution: If the issue price is under$100,000, use Form 8038-GC. Internal Revenue Service ► Go to www.irs.gov/F8038G for instructions and the latest information. ■·:r.,.--Reporting Authority If Amended Return, check here ► D 1 Issuer's name 2 Issuer's employer identification number (EIN) City of Salina, Kansas 48-6017288 3a Name of person (other than issuer) with whom the IRS may communicate about this return (see instructions) 3b Telephone number of other person shown on 3a Mitch Walter, Gilmore & Bell, P.C., Bond Counsel (316)267-2091 4 Number and street (or P.O. box if mail is not delivered to street address) I Room/suite 5 Report number (For IRS Use Only) One Main Place, 100 N. Main 800 I 3 I I 6 City, town, or post office, state, and ZIP code 7 Date of issue Wichita, Kansas 67202 04/28/2022 8 Name of issue $7,840,000 City of Salina, Kansas, General Obligation Internal Improvement Bonds, 9 CUSIP number Series 2022-A, Dated April 28, 2022 794744 GB2 1Oa Name and title of officer or other employee of the Issuer whom the IRS may call for more Information (see 10b Telephone number of officer or other Instructions) employee shown on 1 Oa Deborah L. Pack, Director of Finance and Administration (785) 309-5735 •~1~•·· Type of Issue (enter the issue price). See the instructions and attach schedule. 11 Education. 11 12 Health and hospital 12 13 Transportation 13 $4,921,819 74 14 Public safety . 14 15 Environment (including sewage bonds) 15 2,910,601 26 16 Housing 16 17 Utilities ..... 17 237,041 50 18 Other. Describe ► Public Building 18 168,113 80 19a If bonds are TANs or RANs,.check only box 19a ► □ b If bonds are BANs, check only box 19b . ► □ 20 If bonds are in the form of a lease or installment sale, check box ► □ -~··· II Description of Bonds. Complete for the entire issue for which this form is being filed. (a) Final maturity date (b) Issue price (c) Stated redemption (d) Weighted (e)Yield price at maturity average maturity 21 10/01/2042 $8,237,576.30 $7,840,000.00 8.7204 years 2.4716 % 1:..1•• (IJI Uses of Proceeds of Bond Issue (including underwriters' discount) 22 Proceeds used for accrued interest 22 $ 0 00 23 Issue price of entire issue (enter amount from line 21, column {b)) 23 8,237,576 30 24 Proceeds used for bond issuance costs (including underwriters' discount) 24 129,277 91 25 Proceeds used for credit enhancement 25 0 00 26 Proceeds allocated to reasonably required reserve or replacement fund 26 0 00 27 Proceeds used to refund prior tax-exempt bonds. Complete Part V . 27 5,335,181 11 28 Proceeds used to refund prior taxable bonds. Complete Part V 28 0 00 29 Total (add lines 24 through 28) . 29 5,464,459 02 30 Nonrefunding proceeds of the issue (subtract line 29 from line 23 and enter amount here) 30 2,773,117 28 . . Description of Refunded Bonds. Complete this part only for refunding bonds . 31 Enter the remaining weighted average maturity of the tax-exempt bonds to be refunded . 32 Enter the remaining weighted average maturity of the taxable bonds to be refunded . . 33 Enter the last date on which the refunded tax-exempt bonds will be called (MM/DD/YYYY) 34 Enter the date(s) the refunded bonds were issued ► (MM/DD/YYYY) ► ► ► .0083 years years 05/01/2022 04/2912021 For Paperwork Reduction Act Notice, see separate instructions. cat. No. 63773S Form 8038-G (Rev. 9-2018) Form 8038-G (Rev. 9-2018) Page 2 l!:P,Tia•JI Miscellaneous 35 Enter the amount of the state volume cap allocated to the issue under section 141 {b)(5) 35 0 00 36a Enter the amount of gross proceeds invested or to be invested in a guaranteed investment contract (GIC). See instructions 36a 0 00 b Enter the final maturity date of the GIC ► (MM/DD/YYYY) C Enter the name of the GIC provider ► 37 Pooled financings: Enter the amount of the proceeds of this issue that are to be used to make loans to other governmental units . 37 0 00 38a If this issue is a loan made from the proceeds of another tax-exempt issue, check box ► D and enter the following information: b Enter the date of the master pool bond ► (MM/DD/YYYY) _______________ _ c Enter the EIN of the issuer of the master pool bond ► __________________ _ d Enter the name of the issuer of the master pool bond ► _________________ _ 39 If the issuer has designated the issue under section 265{b){3)(B)(i)(III) (small issuer exception), check box ► [lJ 40 If the issuer has elected to pay a penalty in lieu of arbitrage rebate, check box . ► D 41a If the issuer has identified a hedge, check here ► D and enter the following information: b Name of hedge provider ► c Type of hedge ► __________________ _ d Term of hedge ► ____________________ _ 42 If the issuer has superintegrated the hedge, check box . . . . . . . . . . . ► D 43 If the issuer has established written procedures to ensure that all nonqualified bonds of this issue are remediated according to the requirements under the Code and Regulations (see instructions), check box . . . ► Ill 44 If the issuer has established written procedures to monitor the requirements of section 148, check box . ► [21 45a If some portion of the proceeds was used to reimburse expenditures, check here ► D and enter the amount of reimbursement . . . . . . . ► _____________ _ b Enter the date the official intent was ado ted ► MM/DD Signature and Consent Paid Preparer Use Only Under penalties of pe~ury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. I further declare that I consent to the IRS's disclosure of the issuer's return Information, as necessary to process this return, to the person thatT11pve authorized above. ► __ .... -y,bfud X,~0 04,2812022 Signature of issuer's authorized representative Date PrinVType preparer's name Prepa ' Ign Mitch Walter Firm's name ► Gilmore & Bell, P.C. Firm's address ► 2405 Grand Boulevard Suite 1100 Kansas Cit MO 64108 ► Deborah L. Pack, Director of Finance Type or print name and title Date Check O if PTIN 04/28/2022 self-employed P02340422 Firm's EIN ► 43-1611738 Phone no. 816-221-1000 Form 8038-G (Rev. 9-2018) (EVIDENCE OF FILING OF FORM 8038-G) 600596.20227\FTC A-2 IJ GILMOR._EBELL One Main Place -100 North Main, Suite 800 Wichita, Kansas 67202s1311 (316) 267-2091 / (316) 262-6523 FAX/ gilrnorebell.com April 28, 2022 FEDERAL EXPRESS TRACKING NO. 7767 1551 0581 Internal Revenue Service 1973 N. Rulon White Blvd Ogden, UT 84201 Re: $7,840,000 General Obligation Internal Improvement Bonds, Series 2022-A, of the City of Salina, Kansas, Dated April 28, 2022 (the "Bonds") On behalf of the issuer of the above-referenced obligations, the enclosed Form 8038-G is submitted for filing pursuant to Section 149(e) of the Internal Revenue Code of 1986. Should additional information be required, please contact the undersigned. Mitch Walter MLW:paj Enclosure 600596.20227\CORRESP Jones, Pam {G&B) From: Sent: To: Subject: TrackingUpdates@fedex.com Friday, April 29, 2022 10:42 AM Jones, Pam (G&B) FedEx Shipment 776715510581: Your package has been delivered Hi. Your package was delivered Fri, 04/29/2022 at 9:41 am. Delivered to 1973 N RULON WHITE BLVD, OGDEN, UT 84201 Received by M.MOORE OBTAIN PROOF OF DELIVERY Personal Message City of Salina, KS General Obligation Internal Improvement Bonds, Series 2022-A - 8038-G TRACKING NUMBER 776715510581 1 FROM Gilmore & Bell, P.C 100 N. Main, Suite 800 Wichita, KS, US, 67202 TO Internal Revenue Service Center Internal Revenue Service Center 1973 RULON WHITE BLVD OGDEN, UT, US, 84201 REFERENCE SHIPPER REFERENCE SHIP DATE DELIVERED TO PACKAGING TYPE ORIGIN DESTINATION SPECIAL HANDLING NUMBER OF PIECES TOTAL SHIPMENT WEIGHT SERVICE TYPE 600596.20227 Salina 600596.20227 Salina Thu 4/28/2022 05:49 PM Shipping/Receiving FedEx Envelope Wichita, KS, US, 67202 OGDEN, UT, US, 84201 Deliver Weekday 0.50 LB FedEx 2Day 2 Get the FedEx® Mobile app Create shipments, receive tracking alerts, redirect packages to a FedEx retail location for pickup, and more from the palm of your hand -Download now . • . . . ,,.. .. EXHIBITB RECEIPT FOR PURCHASE PRICE $7,840,000 CITY OF SALINA, KANSAS GENERAL OBLIGATION INTERNAL JMJ>ROVEMENT BONDS SERIES 2022-A DATED APRIL 28, 2022 The undersigned Finance Director of the City of Salina, Kansas, this day received from Country Club Bank, Leawood, Kansas, the original purchaser of the above-described bonds (the "Bonds"), the full purchase price of the Bonds, said purchase price and net amount received by the Issuer being calculated as follows: Principal Amount .................................. . Plus Pre1nium ........................................ . Total Purchase Price ................ .. Less Good Faith Deposit ...................... . Net Amount Received .............. . DATED: April 28. 2022. 600596.20227\FrC B-1 $7.840,000.00 350,928.30 $8,190,928.30 -I 63,900.00 $8,027,028.30 CITY OF SALINA, KANSAS By: --""A+&__,_____~--'---~- Finance Director EXHIBITC-1 RECEIPT AND REPRESENTATION $7,840,000 CITY OF SALINA, KANSAS GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2022-A DATED APRIL 28, 2022 This Receipt and Representation (the "Certificate") is being delivered by Country Club Bank, Leawood, Kansas (the "Purchaser") in connection with the issuance of the above-described bonds (the "Bonds"), being issued on the date of this Receipt by the City of Salina, Kansas (the "Issuer"). Based on its records and information available to the undersigned which the undersigned believes to be correct, the Purchaser represents as follows: 1. Authorized Representative. The undersigned is the duly authorized representative of the Purchaser. 2. Receipt for Bonds. The Purchaser acknowledges receipt by the Depository Trust Company on behalf of the Purchaser on the Issue Date of the Bonds consisting of fully registered "book- entry-only" bonds in Authorized Denominations in a form acceptable to the Purchaser. 3. Issue Price. (a) Public Offering. The Purchaser offered all of the Bonds to the Public in a bona fide initial offering. (b) Expected Initial Offering Prices. As of the sale date of the Bonds (April 4, 2022), the reasonably expected initial offering prices of the Bonds to the Public by the Purchaser are the prices listed in Schedule 1 attached to this Certificate (the "Expected Offering Prices"). The Expected Offering Prices are the prices for the Maturities used by the Purchaser in formulating its bid to purchase the Bonds. (c) Defined Terms. (i) The term "Maturity" means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate maturities. (ii) The term "Public" means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter. The term "related party" is defined in U.S. Treasury Regulation § 1.150-l(b) which generally provides that the term related party means any two or more persons who have a greater than 50 percent common ownership, directly or indirectly. (iii) The term "Underwriter" means (A) any person that agrees pursuant to a written contract with the Issuer ( or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or 600596.20227\FfC C-1 a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public). 4. Reliance. The representations set forth in this Certificate are limited to factual matters only. Nothing in this Certificate represents the Purchaser's interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the certifications contained herein will be relied upon by the Issuer in executing and delivering its Federal Tax Certificate and with respect to compliance with the federal income tax rules affecting the Bonds, and by Gilmore & Bell, P.C., Bond Counsel, in rendering its opinion relating to the exclusion from federal gross income of the interest on the Bonds and other federal income tax advice that it may give to the Issuer from time to time relating to the Bonds. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20227\FTC C-2 Dated: April 28, 2022. 600596.20227\FTC COUNTRY CLUB BANK LEAWOOD, KANSAS (Signature Page to Purchaser's Receipt) SCHEDULE I EXPECTED OFFERING PRICES SERIAL BONDS Stated Annual Initial Stated Annual Initial Maturity Principal Rate of Offering Maturity Principal Rate of Offering October 1 Amount Interest Price October 1 Amount Interest Price 2023 $390,000 4.00% 103.366% 2031 $425,000 2.50% 101.015% 2024 525,000 4.00% 104.952% 2032 430,000 2.75% 102.366% 2025 550,000 4.00% 106.587% 2033 430,000 3.00% 103.711% 2026 560,000 4.00% 108.207% 2034 440,000 3.00% 103.367% 2027 590,000 4.00% 109.692% 2035 450,000 3.00% 102.683% 2028 615,000 4.00% 110.728% 2036 465,000 3.00% 102.343% 2029 635,000 4.00% 111.903% 2037 335,000 3.00% 101.667% 2030 410,000 2.50% 101.357% TERMBONDS Stated Annual Initial Maturity Principal Rate of Offering October 1 Amount Interest Price 2040 $345,000 3.00% 100.00% 2042 245,000 3.00% 99.242% 600596.20227\FTC S-1-1 EXHIBITC-2 CERTIFICATE OF MUNICIPAL ADVISOR $7,840,000 CITY OF SALINA, KANSAS GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2022-A DATED APRIL 28, 2022 The undersigned, on behalf of Stifel, Nicolaus & Company, Incorporated, Kansas City, Missouri (the "Municipal Advisor"), as financial advisor to the City of Salina, Kansas (the "Issuer") in connection with the issuance of the above-described bonds (the "Bonds"), has assisted the Issuer in soliciting and receiving bids from potential underwriters in connection with the sale of the Bonds in a competitive bidding process in which bids were requested for the purchase of the Bonds at specified written terms, and hereby certifies as set forth below with respect to the bidding process and award of the Bonds: 1. The Bonds were offered for sale at specified written terms more particularly described in the Notice of Bond Sale, which was distributed to potential bidders, a copy of which is attached to this Certificate as Attachment 1. 2. The Notice of Bond Sale was disseminated electronically, information regarding the sale of the Bonds was provided to PARITY®, and a copy of the Notice of Bond Sale (or a summary thereof) was published in the Salina Journal, a newspaper of general circulation in Saline County, Kansas, and the Kansas Register, prior to the sale date. The method of distribution of the Notice of Bond Sale is regularly used for purposes of disseminating notices of sale of new issuances of municipal bonds, and notices disseminated in such manner are widely available to potential bidders. 3. To the knowledge of the Municipal Advisor, all bidders were offered an equal opportunity to bid to purchase the Bonds, and the bidding process did not afford any opportunity for bidders to review other bids before providing a bid (that is, no "last-look"). 4. The Issuer received bids from at least three bidders who represented that each has an established industry reputation for underwriting new issuances of municipal bonds. Based upon the Municipal Advisor's knowledge and experience in acting as the municipal advisor for other municipal issues, the Municipal Advisor believes those representations to be accurate. Copies of the bids received are attached to this Certificate as Attachment 2. 5. The winning bidder was Country Club Bank, Leawood, Kansas (the "Purchaser"), whose bid was determined to be the best conforming bid in accordance with the terms set forth in the Notice of Bond Sale, as shown in the bid comparison attached to this Certificate as Attachment 3. The Issuer awarded the Bonds to the Purchaser. The representations set forth in this certificate are limited to factual matters only. Nothing in this Certificate represents the Municipal Advisor's interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the certifications contained herein will be relied upon by the Issuer in executing and delivering its Federal Tax Certificate and with respect to compliance with the federal income tax rules affecting the Bonds, and by Gilmore & Bell, P.C., Bond Counsel, in rendering its opinion relating to the exclusion from federal gross income of the interest on the Bonds and other federal income tax advice that it may give to the Issuer from time to time relating to the Bonds. 600596.20227\FI'C C-1-1 Dated: April 28, 2022 600596.20227\FTC C-1-2 STIFEL, NICOLAUS & COMPANY, INCORPORATED By:~~ Title: Managing Director 600596.202271FTC ATTACHMENT 1 NOTICE OF BOND SALE C-1-3 NOTICE OF BOND SALE $8,195,000* CITY OF SALINA, KANSAS GENERAL OBLIGATION BONDS SERIES 2022-A (GENERAL OBLIGATION BONDS PAYABLE FROM UNLIMITED AD VALOREM TAXES) Bids. Bids for the purchase of the above-referenced bonds (the "Bonds") of the City of Salina, Kansas (the "Issuer") herein described will be received on behalf of the Issuer by the Issuer's Municipal Advisor, until 12:00 P.M. applicable Central Time (the "Submittal Hour"), on APRIL 4, 2022 (THE "SALE DATE") Bids may only be submitted via PARITY® or via email to the Municipal Advisor at arteberrvdr@stifel.com. Facsimile bids and hand-delivered written bids will not be accepted. All bids will be publicly evaluated at said time and place and the award of the Bonds to the successful bidder (the "Successful Bidder") will be acted upon by the City Commission of the Issuer (the "Governing Body") at its meeting to be held at 4:00 p.m. on the Sale Date. No oral or auction bids will be considered. Any qualified bidder may bid on the Bonds. Capitalized terms not otherwise defined herein shall have the meanings set forth in the hereinafter referenced Preliminary Official Statement relating to the Bonds. Terms of the Bonds. The Bonds will consist of fully registered bonds in the denomination of $5,000 or any integral multiple thereof (or such amount added to $5,000 or any integral multiple thereof) (the "Authorized Denomination"). The Bonds will be dated April 28, 2022 (the "Dated Date"), and will become due in principal installments on October 1 in the years as follows: Principal Principal Year Amount* Year Amount* 2023 $485,000 2033 $430,000 2024 585,000 2034 440,000 2025 595,000 2035 450,000 2026 620,000 2036 465,000 2027 630,000 2037 330,000 2028 650,000 2038 110,000 2029 650,000 2039 115,000 2030 420,000 2040 115,000 2031 430,000 2041 120,000 2032 430,000 2042 125,000 The Bonds will bear interest from the Dated Date at rates to be determined when the Bonds are sold as hereinafter provided, which interest will be payable semiannually on April 1 and October 1 in each year, beginning on April 1, 2023 (the "Interest Payment Dates"). * Adjustment of Issue Size. The Issuer reserves the right to increase or decrease the total principal amount of the Bonds or the schedule of principal payments described above, depending on the purchase price and interest rates bid and the offering prices specified by the Successful. The Successful Bidder may not withdraw its bid or change the interest rates bid as a result of any changes made to the principal amount of the Bonds or the schedule of principal payments as described herein. If there is an increase or decrease in the final aggregate principal amount of the Bonds or the schedule of principal payments as described above, the Issuer will notify the Successful Bidder by means of telephone or facsimile transmission, subsequently confirmed in writing, no later than 2:00 p.m. applicable Central Time, on the Sale Date. The actual purchase price for the Bonds shall be calculated by applying the percentage of par value bid by the Successful Bidder against the final aggregate principal amount of the Bonds, as adjusted, plus accrued interest from the Dated Date to the Closing Date (as hereinafter defined). Place of Payment. The principal of and interest on the Bonds will be payable in lawful money of the United States of America by check or draft of the Treasurer of the State of Kansas, Topeka, Kansas (the "Paying Agent" and "Bond Registrar"). The principal of each Bond will be payable at maturity or earlier redemption to the owner thereof whose name is on the registration books (the "Bond Register") of the Bond Registrar (the "Registered Owner") upon presentation and surrender at the principal office of the Paying Agent. Interest on each Bond will be payable to the Registered Owner of such Bond as of the fifteenth day (whether or not a business day) of the calendar month next preceding each Interest Payment Date (the "Record Date") (a) mailed by the Paying Agent to the address of such Registered Owner as shown on the Bond Register or at such other address as is furnished to the Paying Agent in writing by such Registered Owner; or (b) in the case of an interest payment to Cede & Co. or any Owner of $500,000 or more in aggregate principal amount of Bonds, by wire transfer to such Registered Owner upon written notice given to the Paying Agent by such Registered Owner, not less than 15 days prior to the Record Date for such interest, containing the wire transfer address to which such Registered Owner wishes to have such wire directed. Bond Registration. The Bonds will be registered pursuant to a plan of registration approved by the Issuer and the Attorney General of the State of Kansas (the "State"). The Issuer will pay for the fees of the Bond Registrar for registration and transfer of the Bonds and will also pay for printing a reasonable supply of registered bond blanks. Any additional costs or fees that might be incurred in the secondary market, other than fees of the Bond Registrar, will be the responsibility of the Owners. Book-Entry-Only System. The Depository Trust Company, New York, New York ("DTC"), will act as securities depository for the Bonds. The Bonds will initially be issued exclusively in "book entry" form and shall be initially registered in the name of Cede & Co., as the nominee of DTC and no beneficial owner will receive certificates representing their interests in the Bonds. During the term of the Bonds, so long as the book-entry-only system is continued, the Issuer will make payments of principal of, premium, if any, and interest on the Bonds to DTC or its nominee as the Registered Owner of the Bonds. DTC will make book-entry-only transfers among its participants and receive and transmit payment of principal of, premium, if any, and interest on the Bonds to its participants who shall be responsible for transmitting payments to beneficial owners of the Bonds in accordance with agreements between such participants and the beneficial owners. The Issuer will not be responsible for maintaining, supervising or reviewing the records maintained by DTC, its participants or persons acting through such participants. In the event that: (a) DTC determines not to continue to act as securities depository for the Bonds, or (b) the Issuer determines that continuation of the book-entry-only form of evidence and transfer of ownership of the Bonds would adversely affect the interests of the beneficial owners of the Bonds, the Issuer will discontinue the book-entry-only form of registration with DTC. If the Issuer fails to identify another qualified securities depository to replace DTC, the Issuer will cause to be authenticated and delivered to the beneficial owners replacement Bonds in the form of fully registered certificates. Reference is made to 600596.20227\SALEDOCS 2 the Official Statement for further information regarding the book-entry-only system of registration of the Bonds and DTC. Redemption of Bonds Prior to Maturity. General. Whenever the Issuer is to select Bonds for the purpose of redemption, it will, in the case of Bonds in denominations greater than the minimum Authorized Denomination, if less than all of the Bonds then outstanding are to be called for redemption, treat each minimum Authorized Denomination of face value of each such fully registered Bond as though it were a separate Bond in the minimum Authorized Denomination. Optional Redemption. At the option of the Issuer, Bonds maturing on October 1 in the years 2030, and thereafter, will be subject to redemption and payment prior to maturity on October 1, 2029, and thereafter, as a whole or in part (selection of maturities and the amount of Bonds of each maturity to be redeemed to be determined by the Issuer in such equitable manner as it may determine) at any time, at the redemption price of 100% ( expressed as a percentage of the principal amount), plus accrued interest to the date of redemption. Mandatory Redemption. A bidder may elect to have all or a portion of the Bonds scheduled to mature in consecutive years issued as term bonds (the "Term Bonds") scheduled to mature in the latest of said consecutive years and subject to mandatory redemption requirements consistent with the schedule of serial maturities set forth above, subject to the following conditions: (a) not less than all Bonds of the same serial maturity shall be converted to Term Bonds with mandatory redemption requirements; and (b) a bidder shall make such an election by completing the applicable paragraph on the Official Bid Form or completing the applicable information on PARITY®. Notice and Effect of Call for Redemption. Unless waived by any owner of Bonds to be redeemed, if the Issuer shall call any Bonds for redemption and payment prior to the maturity thereof, the Issuer shall give written notice of its intention to call and pay said Bonds to the Bond Registrar, any provider of municipal bond insurance and the Successful Bidder. In addition, the Issuer shall cause the Bond Registrar to give written notice of redemption to the registered owners of said Bonds. Each of said written notices shall be deposited in United States first class mail not less than 30 days prior to the Redemption Date. All notices of redemption shall state the Redemption Date, the redemption price, the Bonds to be redeemed, the place of surrender of Bonds so called for redemption and a statement of the effect of the redemption. The Issuer shall also give such additional notice as may be required by State law or regulation of the Securities and Exchange Commission in effect as of the date of such notice. If any Bond be called for redemption and payment as aforesaid, all interest on such Bond shall cease from and after the Redemption Date, provided funds are available for its payment at the price hereinbefore specified. Authority, Purpose and Security. The Bonds are being issued pursuant to Art. 12 § 5 of the Consitution of the State of Kansas, K.S.A. 12-6a01 et seq., K.S.A. 12-685 et seq., K.S.A. 12-1736 et seq., K.S.A. 12-2104, as amended, and an ordinance and a resolution adopted by the Governing Body (collectively the "Bond Resolution") for the purpose of paying a portion of the cost of certain public improvements (the "Improvements"). The Bonds shall be general obligations of the Issuer payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of the Improvements, and if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The full faith, credit and resources of the Issuer are irrevocably pledged for the prompt payment of the principal and interest on the Bonds as the same become due. 600596.20227\SALEDOCS 3 Submission of Bids. Email bids shall be marked "Proposal for General Obigation Internal Improvment Bonds, Series 2022-A" and may be submitted to the Municipal Advisor at arteberryd@Stifel.com. Electronic bids via PARITY® must be submitted in accordance with its Rules of Participation, as well as the provisions of this Notice of Bond Sale. Any bid submitted shall include the initial offering prices to the public for each maturity of the Bonds. If provisions of this Notice of Bond Sale conflict with those of PARITY®, this Notice of Bond Sale shall control. Bids must be received prior to the Submittal Hour on the Sale Date accompanied by the Deposit (as hereinafter defined), which may be submitted separately. The Issuer and Municipal Advisor shall not be responsible for failure of transmission of facsimile or delivery by mail or in person of any bid. Any bidder desiring to have the Municipal Advisor assist in the delivery of such bidder's bid should provide pertinent bidding information to the Municipal Advisor not later than 30 minutes prior to the Submittal Hour on the Sale Date. PARITY®. Information about the electronic bidding services of PARITY® may be obtained from i-Deal LLC at 1359 Broadway, 2nd Floor, New York, New York 10018, Phone No. (212) 849-5023 and from the following website: www.newissuehome.i-deal.com. Conditions of Bids. Proposals will be received on the Bonds bearing such rate or rates of interest as may be specified by the bidders, subject to the following conditions: (a) the same rate shall apply to all Bonds of the same maturity year; (b) no interest rate may exceed a rate equal to the daily yield for the 10- year Treasury Bond published by THE BOND BUYER, in New York, New York, on the Monday next preceding the day on which the Bonds are sold, plus 3%; (c) no supplemental interest payments will be considered; (d) each interest rate specified shall be a multiple of 1/8 or 1/20 of 1 %; and (e) no zero percent (0%) interest rates will be permitted. No bid for less than 100% of the principal amount of the Bonds and accrued interest thereon to the date of delivery will be considered. Each bid shall specify the total interest cost (expressed in dollars) during the term of the Bonds on the basis of such bid, the premium, if any, offered by the bidder, the net interest cost (expressed in dollars) on the basis of such bid, and an estimate of the TIC (as hereinafter defined) on the basis of such bid. Each bidder shall certify to the Issuer the correctness of the information contained on the Official Bid Form; the Issuer will be entitled to rely on such certification. Each bidder agrees that, if it is awarded the Bonds, it will provide the certification described under the caption "Establishment oflssue Price" in this Notice. Good Faith Deposit. The Successful Bidder must supply a good faith deposit (the "Deposit") in the amount of 2.00% of the principal amount of the Bonds as indicated on the first page of this Notice payable to the order of the Issuer to secure the Issuer from any loss resulting from the failure of the Successful Bidder to comply with the terms of its bid. The Deposit must be received by the Issuer by 3:00 p.m. Central Time on the Sale Date. The Deposit shall be submitted by wire transfer in Federal Reserve funds, immediately available for use by the Issuer. No interest on the Deposit will be paid by the Issuer. The Deposit will be held by the Issuer until the Successful Bidder have complied with all of the terms and conditions of this Notice at which time the amount of said Deposit shall be returned to the Successful Bidder or deducted from the purchase price at the option of the Issuer. If a bid is accepted, but the Issuer fails to deliver the Obligations to the Successful Bidder in accordance with the terms and conditions of this Notice, said Deposit, or the proceeds thereof, will be returned to the Successful Bidder. If the Successful Bidder default in the performance of any of the terms and conditions of this Notice, the proceeds of such Deposit will be retained by the Issuer as and for liquidated damages. Basis of Award. Subject to the timely receipt of the Deposit set forth above, the award of the Bonds will be made on the basis of the lowest true interest cost ("TIC"), which will be determined as 600596.20227\SALEDOCS 4 follows: the TIC is the discount rate (expressed as a per annum percentage rate) which, when used in computing the present value of all payments of principal and interest to be paid on the Bonds, from the payment dates to the Dated Date, produces an amount equal to the price bid, including any adjustments for premium if any. Present value will be computed on the basis of semiannual compounding and a 360- day year of twelve 30-day months. Bidders are requested to provide a calculation of the TIC for the Bonds on the Official Bid Form, computed as specified herein on the basis of their respective bids, which shall be considered as informative only and not binding on either the Issuer or the bidder. The Municipal Advisor will verify the TIC based on such bids. If there is any discrepancy between the TIC specified and the bid price and interest rates specified, the specified bid price and interest rates shall govern and the TIC specified in the bid shall be adjusted accordingly. If two or more proper bids providing for identical amounts for the lowest TIC are received, the Governing Body will determine which bid, if any, will be accepted, and its determination is final. The Issuer reserves the right to reject any and/or all bids and to waive any irregularities in a submitted bid. Any bid received after the Submittal Hour on the Sale Date will not be considered. Any disputes arising hereunder shall be governed by the laws of the State, and any party submitting a bid agrees to be subject to jurisdiction and venue of the federal and state courts within the State with regard to such dispute. The Issuer's acceptance of the Successful Bidder's proposal for the purchase of the Bonds in accordance with this Notice of Bond Sale shall constitute a bond purchase agreement between the Issuer and the Successful Bidder for purposes of the laws of the State and a contract between the Issuer and the Successful Bidder for the purposes of Rule 15c2-12 of the Securities and Exchange Commission (the "Rule") and Rule G-32 of the Municipal Securities Rulemaking Board ("Rule G-32"). The method of acceptance shall be determined solely by the Governing Body. Bond Ratings. The outstanding general obligation bonds of the Issuer are rated "Aa3" by Moody's Investors Service. The Issuer has applied to Moody's Investors Service for ratings on the Bonds herein offered for sale. Such application and ratings are further described in the Preliminary Official Statement, hereinafter described. Optional Bond Insurance. The Issuer has not applied for any policy of municipal bond insurance with respect to the Bonds. If the Bonds qualify for municipal bond insurance, and any bidder desires to purchase such policy, such indication and the name of the desired insurer must be set forth on the bidder's Official Bid Form. The Issuer specifically reserves the right to reject any bid specifying municipal bond insurance, even though such bid may result in the lowest TIC to the Issuer. If the Successful Bidder elects to purchase the Bonds with municipal bond insurance, certain rating agencies will assign their ratings to the Bonds with the understanding that upon delivery of the Bonds, a policy insuring the payment when due of the principal of and interest on the Bonds will be issued by such bond insurer. All costs associated with the purchase and issuance of such municipal bond insurance policy and associated ratings and expenses ( other than any independent rating requested by the Issuer) shall be paid by the Successful Bidder. Failure of the municipal bond insurer to issue the policy after the award of the Bonds shall not constitute cause for failure or refusal by the Successful Bidder to accept delivery of the Bonds. CUSIP Numbers. CUSIP identification numbers will be assigned and printed on the Bonds, but neither the failure to print such number on any Bond nor any error with respect thereto shall constitute cause for failure or refusal by the purchaser thereof to accept delivery of and pay for the Bonds in accordance with the terms of this Notice. The Municipal Advisor will apply for CUSIP numbers pursuant 600596.20227\SALEDOCS 5 to Rule G-34 implemented by the Municipal Securities Rulemaking Board. All expenses in relation to the assignment and printing of CUSIP numbers on the Bonds will be paid by the Issuer. Delivery and Payment. The Issuer will pay for preparation of the Bonds and will deliver the Bonds properly prepared, executed and registered without cost on or about APRIL 28, 2022 (the "Closing Date"), to DTC for the account of the Successful Bidder. The Successful Bidder will be furnished with a certified transcript of the proceedings evidencing the authorization and issuance of the Bonds and the usual closing documents, including a certificate that there is no litigation pending or threatened at the time of delivery of the Bonds affecting their validity and a certificate regarding the completeness and accuracy of the Official Statement. Payment for the Bonds shall be made in federal reserve funds, immediately available for use by the Issuer. The Issuer will deliver one Bond of each maturity registered in the nominee name ofDTC. Establishment of Issue Price. (a) In order to provide the Issuer with information necessary for compliance with Section 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated thereunder (collectively, the "Code"), the Successful Bidder will be required to assist the Issuer in establishing the "issue price" of the Bonds and complete, execute and deliver to the Issuer prior to the Closing Date, a written certification in a form acceptable to the Successful Bidder, the Issuer and Bond Counsel (the "Issue Price Certificate") containing the following for each maturity of the Bonds: (1) the interest rate; (2) the reasonably expected initial offering price to the "public" (as said term is used in Treasury Regulation Section 1.148-1 (f) (the "Regulation")) or the s'ale price; and (3) pricing wires or equivalent communications supporting such offering or sale price. However, such Issue Price Certificate may indicate that the Successful Bidder has purchased the Bonds for its own account in a capacity other than as an underwriter or wholesaler, and currently has no intent to reoffer the Bonds for sale to the public. Any action to be taken or documentation to be received by the Issuer pursuant hereto may be taken or received by the Municipal Advisor or Bond Counsel on behalf of the Issuer. (b) The Issuer intends that the sale of the Bonds pursuant to this Notice shall constitute a "competitive sale" as defined in the Regulation. In support thereof: (1) the Issuer shall cause this Notice to be disseminated to potential bidders in a manner reasonably designed to reach potential bidders; (2) all bidders shall have an equal opportunity to submit a bid; (3) the Issuer reasonably expects that it will receive bids from at least three bidders that have established industry reputations for underwriting municipal bonds such as the Bonds; and ( 4) the Issuer anticipates awarding the sale of the Bonds to the bidder that provides a bid with the lowest TIC in accordance with the section hereof entitled "Basis of Award." ( c) Any bid submitted pursuant to this Notice shall be considered a firm offer for the purchase of the Bonds as specified therein. The Successful Bidder shall constitute an "underwriter" as said term is defined in the Regulation. By submitting its bid, the Successful Bidder confirms that it shall require any agreement among underwriters, a selling group agreement or other agreement to which it is a party relating to the initial sale of the Bonds, to include provisions requiring compliance with provisions of the Code and the Regulation regarding the initial sale of the Bonds. ( d) If all of the requirements of a "competitive sale" are not satisfied, the Issuer shall advise the Successful Bidder of such fact at the time of award of the sale of the Bonds to the Successful Bidder and the following provisions shall apply to the Bonds. In such event, any bid submitted will not be subject to cancellation or withdrawal. Within twenty-four (24) hours of the notice of award of the sale of the Bonds, the Successful Bidder shall advise the Issuer if a "substantial amount" (as defined in the Regulation (10%)) of any maturity of the Bonds has been sold to the public and the price at which such 600596.2022 71S ALEDOCS 6 substantial amount was sold. The Issuer will treat such sale price as the "issue price" for such maturity, applied on a maturity-by-maturity basis. The Issuer will not require the Successful Bidder to comply with that portion of the Regulation commonly described as the "hold-the-offering-price" requirement for the remaining maturities, but the Successful Bidder may elect such option. If the Successful Bidder exercises such option, the Issuer will apply the initial offering price to the public provided in the bid as the issue price for such maturities. If the Successful Bidder does not exercise that option, it shall thereafter promptly provide the Issuer the prices at which a substantial amount of such maturities are sold to the public. Any change in the issue price of any of the Bonds after the Submittal Hour will not affect the purchase price for the Bonds submitted in the bid of the Successful Bidder. (e) This agreement by the Successful Bidder to provide such information will continue to apply after the Closing Time if: (a) the Issuer requests the information in connection with an audit or inquiry by the Internal Revenue Service (the "IRS") or the Securities and Exchange Commission (the "SEC") or (b) the information is required to be retained by the Issuer pursuant to future regulation or similar guidance from the IRS, the SEC or other federal or state regulatory authority. Preliminary Official Statement and Official Statement. The Issuer has prepared a Preliminary Official Statement relating to the Bonds "deemed final" by the Issuer except for the omission of certain information as provided in the Rule, copies of which may be obtained from the Municipal Advisor. Upon the sale of the Bonds, the Issuer will adopt the final Official Statement and will furnish the Successful Bidder, without cost, within seven business days of the acceptance of the Successful Bidder's proposal, with a sufficient number of copies thereof, which may be in electronic format, in order for the Successful Bidder to comply with the requirements of the Rule and Rule G-32. Additional copies may be ordered by the Successful Bidder at its expense. Continuing Disclosure. In the Bond Resolution, the Issuer has covenanted to provide annually certain :financial information and operating data and other information necessary to comply with the Rule, and to transmit the same to the Municipal Securities Rulemaking Board. This covenant is for the benefit of and is enforceable by any Registered Owner of the Bonds. For further information, reference is made to the caption "CONTINUING DISCLOSURE" in the Preliminary Official Statement. Assessed Valuation and Indebtedness. The total assessed valuation of the taxable tangible property within the Issuer for the year 2021 is as follows: Equalized Assessed Valuation of Taxable Tangible Property ............................................................. $462,937,221 Tangible Valuation of Motor Vehicles................................................. 56.545.812 Equalized Assessed Tangible Valuation for Computation of Bonded Debt Limitations................................. $519,483,033 The total general obligation indebtedness of the Issuer as of the Dated Date, including the Bonds being sold, is $80,885,000. Temporary notes in the principal amount of $5,230,000 will be retired out of proceeds of the Bonds and other available funds, which will reduce the outstanding general obligation indebtedness of the Issuer to $75,655,000. Legal Opinion. The Bonds will be sold subject to the approving legal opinion of GILMORE & BELL, P.C., KANSAS CITY, MISSOURI, Bond Counsel to the Issuer, which opinion will be furnished and paid for by the Issuer, will be printed on the Bonds, if the Bonds are printed, and will be delivered to the Successful Bidder when the Bonds are delivered. Said opinion will also include the opinion of Bond 600596.20227\SALEDOCS 7 Counsel relating to the interest on the Bonds being excludable from gross income for federal income tax purposes and exempt from income taxation by the State. Reference is made to the Preliminary Official Statement for further discussion of federal and State income tax matters relating to the interest on the Bonds. Electronic Transactions. The transactions described herein may be conducted and related documents may be sent, received and stored by electronic means or transmissions. All bid documents, closing documents, certificates, ordinances, resolutions and related instruments may be executed by electronic means or transmissions. Copies, telecopies, electronic files and other reproductions of original executed documents (or documents executed by electronic means or transmissions) shall be deemed to be authentic and valid counterparts of such documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. Additional Information. Additional information regarding the Bonds may be obtained from the undersigned or from the Municipal Advisor at the addresses set forth below: DATED: March 21, 2022. Issuer -Good Faith Deposit Delivery Address: Debbie Pack, Director of Finance and Administration City of Salina, Kansas 300 West Ash Street, Room 206 Salina, Kansas 67402 Phone No.: (785) 309-5735 Fax No.: (785) 309-5711 Email: debbie.pack@salina.org Municipal Advisor -Email Bid Delivery Address: Stifel Nicolaus & Company, Incorporated 4801 Main Street, Suite 530 Kansas City, Missouri 64112 Attn: David Arte berry Phone No.: (816) 203-8773 Fax No.: (816) 283-5326 Email: ai1eberrydl@stifel.com 600596.20227\SALEDOCS 8 CITY OF SALINA, KANSAS By: JoVonna Rutherford, City Clerk 600596.202271FTC ATTACHMENT 2 BIDS RECEIVED C-1-4 ---lallmllla -=ma -- Salina $8,195,000 General Obligation Internal Improvement Bonds, Series 2022-A For the aggregate plincipal amount of $8,195,000.00, we will !IBY you 58,567,393.45, plus accrued interest from the da!e of issue to the dale of delivef'/. Th!! Bonds are to bear interest at tile following rate{s): Maturity Dale Amounts Coupon,~ Yield% DollarPnce Bond rnsurance 10/0112023 485M 4.0000 1.6000 103.366 10/0112024 585M 4.0000 t.9000 104.952 10/01/2025 595M 4.0000 2.0000 106.587 10Jomo26 620M 4.0000 2.0500 108.207 1010112027 630M 40000 21000 109.692 10/0112028 650M 4.0000 2.2000 110.728 10/01/2029 650M 4.0000 2.2500 111.903 10/0112030 420M 2.5000 2.3000 101.357 10/0112031 430M 2.5000 2.3500 101.015 10/0112032 430M 2.7500 2.4000 102.366 10/01/2033 430M 3.0000 2.4500 103.711 10/01/2034 440M 3.0000 2.5000 103.367 10{01/2035 450M 3.0000 2.6000 102.683 10f01/2036 465M 3.0000 26500 102343 10/0112037 330M 30000 2 i'500 101 667 10/01/2038 10/01[2039 10fOtJ2040 340M 3.0000 3 0000 100.000 10/01/2041 10/0~i2042 245M 3.0000 3 0500 99242 -Total Interest Cost: $2,256,481>.87 Prerr.ium: $372,393.45 r-.et Interest Cost $1,884,093.42 TIC: 2.1307853 Total rnsura'lce Prem:um: $0.00 Time Last Bid Received 0'!:0410412022 11 :59: 11 COST This proposal is mad!! s.ibject to ail of the l!!rms and conditions of the Official Bid Form, the Official No:ice of Sale, and ~'le Prelimlnaf'/ OffiC:al Statement, all of whrctJ are made a part hereof. Bidder: Country Club Bank, Leawood ' KS Contact: Lisa Roberts TIile: SrVP Telephone: 816-751-1420 Fax: g13-385-0105 I Upcoming Calendar j Overne1v I Result I Excel I The Baker Group -Oklahoma City, OK's Bid Salina $8,195,000 General Obligation Internal Improvement Bonds, Series 2022-A Foe the sggrega!;a priMipa· a,...oL:ni c,f S8. :9'5,00G .. oo. we w:i pay yoi, SS,658,l!00.33, pl.1s acc·ued hterest from tile elate cfissJe to me <late cf del'very. The Bend$ are tc, 1>earlnte,e5t a! the fol ,whg< rate:s): 1:"atu:ii-.i :ate AmOL,r>tS CoJr;cn'!li 1CiJD1i2023 485~/ 5.0CJO ;om1i202,i 6851.' 5.0GJO 101()1."20L5 5i;t5M 5.0CJO 1()1[)1/2026 620~1 5.0UJO 1G'01·2027 63J1l 5.0CJO 101011202.8 65:)!.' 5.0CJO 10101/2()2:ll 651)1,' 5.0CJO 10!'0112()23 4201.' 2.2000 10S!11 /2()l 1 430).' 2.3750 10101 ,203,2 43ll\' 2 .. H50 10/D1/20a3 4aDl,' 2.5DDO 10/D1120H 44J'/ 2.5C1JO !Oi'0112il35 4501.t 3.0CJO 1()/1:11/2036 465M soevo 10101/2037 33:Jti soooo 1Cl-'01i20~S ,o,0112e-ag 1Gl01,'204J 340'\' 3.0GJO 10./011204·1 ;Cl[l1i2042 245M S 00'3) Total !n:,n,st Cost: Pre...,,~ium: Net r terest Cost TIG: Total Insurance: P-em· Jm: Y·ela % 1.70CJ 1.900D 2.00CJ 2.0503 2.os:o 2.l5CD 2.20CD 2.350:J 2.4001) 2 45C:l 2.50Gll 2.600:J 2$W:J 2 700J 2 7;.Q:J ~.OOG:J 3 02CJ Dolla·"t,ce Bc>nd rs1..san.ce 10•L625 1C7.3U 109.&81 :12.416 H4.~05 117.J15 119.082 QQ.238 gg_78Q gg ~12 WOJllH) 98.942 102.479 102.CJ4 101 657 ·100.G'.J::J ll!L595 S2.3fi5,Q71Hr ~453,900.33 S Ul03,07i;tJJ4 2.633531 Time L;stSid Reoe·ved Cn:C4.i'D4f2C22 ll:52:28 C:J1ST -his p•o,osa: is made su,bjeci k al of Jte te·ms ami candlio:is of the Ofic;a• Bid Forr, the Offic a .. lfa~ce of Sae, ard i'le Prel m'oary Off~ial State-rent, al oh,hich a·e mace a part t<,:eof. £,.rider: T.he BakerG"'Ou:r, Oklal'-oma CHy, ::,+.: Contac!: Scott F:eic:-'ler -t;e; -.., ep!ione:4()5,4·15-7332 Fax: [ Upcoming Calendar J Overnew I Result I Excel ] Raymond James & Associates, Inc. -Dallas, TX's Bid Salina Sa, 195,000 General Obligation Internal Improvement Bonds, Series 2022-A Fci the ag:gregate pri'lc-'.pa' a""'iouni of SS. t9'5-,000.00. we v,;-il pay yolr. S,S,603-,012.2.3., plJs acc~Lred interest from the dat-f:: of ;s::..ie to i,ne -d.aie of de:l.'ve:-y. The e~o,nds .are io bear :nt-e'."e-st ai the fol owi:1g ratets): Ma.turit · Date Arnour,tS COJPl>/1 % Y,elo% Dolla•Pfice Bend ,nsurance 10/()112023 4.85!1 4.1){}1)0 1.600:J 103.366 10/01/2024 5851.'-4.0CJO 2.00C:J 104.710 10rc1.r2025 51l5fl 4.0C:JO 2.050:J 106.416 10101.'2026 6 •. ~i• 4.00D:l 2.oec:i 108.075 10/01l20T 63.J',' 4.0CJO 2.1()00 1013.f>il2 10i[)1.~02ll 650M 4 .. 00JO 2.2CICJ 110.728 10.101'20;;:Q 55Jl.' 4.0CJO 2.25CJ 111.803 10J'011203D 42lll.t 3.5C:JO 2.300J 108.146 10/0112031 43111,' 3.0CDO 2.35Cll ·J04.4D3 l(l/01.'2032 431~., 3 ()000 240CJ 104Jl57 1 OJ01 l202·3 43!W 3.(){1,1)0 2.5003 103_3<)7 10/01/2034 44:ll.' 3.DClOO 2.6000 102a683 10.'01[2035 461ll.t 3.0CJO 2.650J 102.343 1C/01/2()3'.l 41>51' 3.0GIIO 2 701}0 102.CJ.\ lO'C1.?037 1Ci~li?"O~.e 44!)!.! ~(.'= 2WC!J 101.331 1a,nI.202Q 101n1,204t1 ,&ICl,21:41 10,1l1~042 4:"fi"f 3 OGJ'.J 30--,.,r;J 1'100:)J --Toial tnte·erl ,Ci,st; <,2,<23,342.!i'.l Pre-i~m: $41J.8,0l2.23 Ne! !rsle!e5E Cost SUlt5,33Cl.27 TIS: 2.64!;513 Total lnsuran~ P·em Jm: $0.JO r,-,e, L3st Bid R.ee<>eNed On:04:J4/2C22 11:i;~:43 c:,s-;- ,..his prop.osai ~s made s1...bject to all of t~e t.e-ms a"ld cond·~·,ons ~fthe 0-ffficia·: e,id Fc~!"l"'""':, the Ofic_,a t".c•tice of Sa.e. ii.rd ihe Pre/ m~'.'1.ary Off:;;ial Stal,:::~1ent, aJ of wh3ct'" .are macle-a pa.rt h.e.reof. ff:lde,r: <;taymo,id James & Associates, he_, Da as , -x ~a-=itact Randa:/ Hav,K,n-s ~fle: ~,M>p'ic,n .. :2!4--3e5-5546 Fax: I Upcoming Calendar I Overview [ Resull f Excel j Robert W. Baird & Co., Inc. -Milwaukee, Wl's Bid Salina $8,195,000 General Obligation Internal Improvement Bonds, Series 2022-A Fc•th@ a{1greg<1!2 princ:pa: a-oun! of:SS,!115,000.00. v,e wil pay you, SS.664,761.8.!i. plus acm-ued hlerest 'Tom the dat• Clf issJe tr, l~e dale cf deL,ery. The ecmds are~ bear inte·e:-t al the fo1 ·1.1whg rate.{s): B rlder: Raber! W. Sa[cd & Cc,., Inc., r.::i.,au,<ee, WI Ccmtaci: Gecff KJcz~tuus-,:i T_t~I!-: -., ·ep"ion::414-765-7331 Fax: VatL-rii•;r Date Amount S Coup,m % 1 c,·01 t2023 48.!i"/ 5-0□)0 10/01/2024 5&51!. 5.C030 IOJ:t1i2025 51151.f ,5.0CDO 1(),'(H 12026 62J."~~ 5J)C1JO 1C:401,'2027 63Jll' 5.00JO 11}J'011202S 6601l 5.0IJOO rn,·01,12029 6501! 5.0C30 10Jct1.'2030 421);,I 2.25'DO 101()1'21)31 42:r~.~ 2.375J 1 ()1(1.1 ·2032 430!.' 2.50:J:J 10/C1/2033 43!):." 2Ji250 1010,112034 44·:i:." 3.or,oo 10/C112Cl35 461:JU· 3.0GJO 10101 ,'2C-36 465!,! 3.0CDO rnrc,,::03; 3301.' 3COOO 10•C 1f.203& 1fl/tli203~ 22.51.'-3.ClCJO 11}/()1 '2040 10!C1i2041 10.-011Z"42 36:>V ~.GOijO Tof.sl fnte:est Cost Premi.1m-: Nei . rlerest Cost TIC: Total [rsurance p~e,m 1..1m: v,eld% 1.70C3 1.90CJ 2.00CD 2.10C:J 2.150:J 2.20C:J 2.25U:J 2.3501) 2.45C3 2 55CJ 2.65CJ 2J:l5CJ 2.7000 2.75CD 280():J 2 ~>)CJ 30!iOa uolla<Pm,e Bend ,n,sur.arce: 104.625 fC7.3ll '101l.a81 112.191 H4.51S U6.689 118.705 ll!l.23S -· 9R371 gg 543 !!9,753 102.3~3 102.0:l~ 101.6'-17 -101 an 100.002 g;, 2~2 -S2.406.058-.15 $4Ml., 761.85 S l ,93'.:l,21l6.9:J 2.677534 Th,e Last Sid Re<ieived On:041J4.2022 H:53:23 COST ~ ----~ ~ Upcoming Calendar O'i!iMe,·, Resl.111 Excel Piper Sandler & Co -Minneapolis, MN's Bid Salina $8,195,000 General Obligation Internal Improvement Bonds, Series 2022-A c-c:the aggrega:te p-rinc.;p.a .a~ount o!S:S .. ~Q5,000.JO, w-e ¥ii ·1 iP.9)1 yoL SS.56Jl.6S7JiB, pl..1s acc'"ued i~erest 'Tttlm the oate oflss.11e to ~"le -date of -del.'tl'ery. The e,ond:s are to bear ;nte"e-.s:t aHhe- fol~owir,9 rate.(s): !.faturiw Oate Arnot..f'!S C0'1DM% Yielo % Dollar Price Bend .1r st.trarce 10/()-1{2()23 4&5tc' 4.00:lO 1.75CJ 103.151 10/()1.'2024 585',{ •LOC:l) 2.00Gll 104.710 Hr,/()1/2025 585Y 4.0CllO 2.05():J ·106.416 11]/()112026 52Jlt 4.0000 2.160U 1(17.7<17 101C1i2027 6:lnV 4.0CJO 220Cil 10!l-156 1 ll'0·1,'202S 65:W 4.0C:lO 2.25CO H0.-~33 10/D11202G 65:llt 4.0C:JO 2.30CJ 111.541 lG 'C·1,'203!l 42-3~t 3.0CDO 2.35CJ 104.403 10/1}·1/"2031 430'.~ 3.00:JO 2.40CJ ·104.(.\57 )(),'0112032 43U'/ 3.00:JO 245C:J t:03.711 10/C1i203-3 43)1,~ 3.0C:JO 2.5011:J '10:3.367 10.i!l1/20l4 44:J!.' 3.0CllO 2.55C:J 103.C25 10JCl1120::!5 45J:~ 3.0C:JO 2.600-D 1020583 10/()112031.1 1til011203 7 7951/ 3.00-J:J ?!JOO:J 101.331 1C)IC112C'2B 1(,'01!203~ 1N01.'204:J 34-0M 3~0C'DO 3.00C:J 100.CJ:J 1t11a112N1 1DI01121:i42 245P.' 3 OG:JO 3jOQ li84P3 fotal tnt.·st Cost: S2.W5.<150.[10 Pre"'!:!hm1: S3tl5~6~7.98 Nai nte·eat Cost SU,3Q,Q62.:J2 TIC: 2.688233 Total ln.suran:.,e P·em Jm: SO.JG Ti.,-;e Last Bld Received On:04;J4/2C22 11:52:01 COST -h:s FOP.=)'.Sai is ma.de st..bjeot to all of :fr..e. te7Tls a!ld cond·-t:c.,s of the Ofic:a~ Eid Fornr .• th<2 O-Fic-3 ffotice ofSa,e.. ard i.ne Fral m "lary Offoial Sta:te--ne:nt, al of wh~cl°': 3:"'!! made a part t-er-eof. B":lder: Piper Sandler & Co, Mirceapolis , VN Co:ntact -Da·rc·· Oon,eff -re: •tanagi~g D'•ectc,r Te ephone:6l2-3C3-211 a Fax: ----------lllllllma. Upcoming Calendar OveM.ew Result ' Excel Commerce Bank -Kansas City , MO's Bid Salina $8,195,000 General Obligation Internal Improvement Bonds, Series 2022-A f o-r the a~:gregsite pri:nc'.p3 .amouni of $8, tP5,0C~C.O:J, we viii~ pay you SB,543,091.SD, pl"Js acc~ued hte.rest trt•m fhe oate a~ ~ssJe to fr;e date of del"vet)'. The Eonds. .ar.e-1o bear inte-.r-e.st at the fol owbg rate.{s): 'Er:lder: Commerce Bank, Ka,sas. c·ty. r.~;Q Cci-ntact: 1."atlhiiW Koch -ue: Fi~ed lnoo""be ::~a-cfer ~.,·ep'1one:St<'r234-::.450 Fax: l.•aturil~ :are Amo<-ntS co_,p,on 'lt, 10/01t2C'23 4&5f/ 4.0C:lO 10J'01l2024 565~• 4.0CJO 10/01/2025 59'5t! 4.ClCJO 10/C1/'2026 6Z-tl'.' 4.0CJO 1c:c1.2021 6lD~' 4.&0DO 10,'0112028 65'JJ;• 4.0CJO 1C/01120Zl1 65JM 4.0CIDO 1()/()1.203:l 4:tJ!.' 3.0CJO 10.101/'2031 43DM 3.0GJO 10'011203:: 43'J\f\ 3 COJO 10/!;112033 4301/. 3.0CJO 1 C.![)1.'2034 4401.' 3.Cla)O 10/G112035 45{1~/ :3.0C30 10/C11203tl 465M 3.00JO 1 O•'C,1, 2037 33011. 3.0C30 10lC1i2038 10/0112D3Q 2251.t 3.0CJ0 10/C1 :W~ 10.1011204·1 101(?1/2042 :of.Jl' 3 0000 Tcta· bteoesl Cost P:-!=mium: tiet l.nieres.t Cost: ,;c, Tota~ 1.,siJra"\ce Premit.m: (•elo% 1.SClOJ 1.Q5CJ 2.05CJ 2.15CJ 2 .. 20CJ 2.25CJ 2.WGJ 2.35CJ 2.40GJ 2.450-1 2.500U 2.60Cl 2.6500 2.,orrJ 2.SOC3 ~CIO) 300C-cl Doll,,-P•ioe Bond ~nst..srance. 103.0SJ 104J?.31 10<1.416 107.767 109.156 110.41~- 11Ul41 104.4ll3 1(14J)57 :c,3 7ft 103.3-67 102.683 102.343 102.(!1l4 101 331 -100.8162 ~ ~~2 $2.3J5,65JJj(l S34S,Gil1.S!; $1,957,558.20 2.716635 --rime Last Bid Received Or~04i04!2022 9;23:33 COST ~Dea Up,comlng Calendar OvefView Result Excel Northland Securities, Inc. -Minneapolis, MN's Bid Salina $8,195,000 General Obligation Internal Improvement Bonds, Series 2022-A f 01 the aggre!!Sle priscipa· a~,ounl of SS.~1}5,000.:)J, we vtil !Jay yo1. S.8,5l::l,083J:!t5, plJs a.cc·Lled interest 'rom the aate of is9'Je to l'1e d.a!e cf del •·er/. The Bo~ds are /,:, bear inte,resl a! the fol owi:ig rate{s)c 1.!at1.i •iw ~aie AmourulS Coupon% 'fie,la% Dollar Pd"" Boqd nsurance 10/01/2023 485!,' 4.0C:JO Ul!>OJ 103.038 ,OIC112024 585·t• 4 .. 0CDO 2 .. 00CJ 104.71!) 10ilJ1i2025 5!!51.' 4.0GJO 2.10C!l 106.246 10101.'2026 6fO~l 4.0CJO 2-20[):J 10~.!i4'8 lCiG1,'.!027 63911 4 oa:io 2.250;) 108.a88 10;c1.1202s ee.::i~.~ 4.0C!lO 2.300J HD.098 1 OJ'C 11202{! 65:Jll 4.0C)O 2.36C:J 111.18'.} 1()'01/203:J 4~.:nt 3./lDO 2.40QJ 104.C57 10./01.'2031 43.":J~ .... 3.0□JO 2.460:J Hl3.7U 10•'C1,2032 43.0V 3.0CJO 2.50CJ 103 367 1()/0112033 42:J'.~l 3.0CJO 2.55CJ 103.C25 10,'C112034 44-0f,' 3.0tCOO 2.60CJ 102.fl83 10!'0112035 46UY 3.0CJO 2.65CJ 102.3-41.3 10/01120::!!l 1t'/01/2037 7115#.' 3.0C:10 2,,00:J 101.331 101C112038 lOJU.112039 22'5M 3.0CJO 3.00CJ 10'.l.CJJ 10,'011204:J 10./()112041 l 0/01121J<l2 3.6)!/ s.omJ 3.10!Y.I gs 4113 Total ln!e•,ast Coste S2,3-05,65ll.OO PremL.1m, S:3-18,083.65 Net nteres! Cost $1,1187,566.35 TIC: 2.765270 Total lnse-an"" p,.,,,,um: SO.CO Time last Sid Re.,,.ived On:04.-'!l4.'2C22 H:6'9:52 COST -h:s proposal is made subject I<> al: of Ire te·ms ""c! cond'tlc,ns of the Of'icial Bid For,-,:. the Of'ic"a Notice of Sae. ar.d l'le P,er-r.·,iary Offoial Siate~ent. al ofwh;ct, a·e made a part 1-eoec,f. B'jdcr: ~~arth·:and Sect;r"Les. Inc .. Y-inrea:oc~I :, , f.''.'-1 ~antact Ourlin S~eh· :-l:e: -.,·.,p~c,ne:414-l![f8-0422 Fa><: 414-70,5-1831 Upcoming Calendar Ovel'liew Reswl Excel I FHN Financial capital Markets. Memphis, TN's Bid Salina $8,195,000 General Obligation Internal Improvement Bonds, Series 2022-A For the aggrega!e princira· a•m,un! of S8, 1Q5',000.00. we wil pay yot. SS,290,272.13. plus acc·ued interest •rom the c!ate of issJe to !'ie da!e <>f del ,·er;•. The Sends are lo bear inte·est a! :he fol :,whgc rate(s): l.'atui:y :late J'.moac.l $ CoJµon% Y•elo% :lolla·P,i""' Ba-nd nrsi.-rarce 1(;/0112023 4S5M 3.0CJO 1.900:l 101.638 BAM 10101,'2024 586\" 3.C~JO 2.00CJ 102.354 BAM 10f0112t:<25 51>.5!.' 3.00JO 2.0!iOJ 103.125 BAM 10IOH2026 620~.' 3.0CJO 2.15CD 103.ESll BAM 10/0112027 63:l'.' 3.00JJ 2.25CJ 103.8,JQ BAM 10/01,'2028 6EJ!t 3.0CJO 2.3000 104.·157 BAM 10/01l2029 65'lM 3JlCJO 2.3501) 104.403 BAM 10/011203:J 42Jll 3.0CJ:J 2.40CJ 104.1}57 BAM 1C/01l2031 43(1~.t 3.0CJO 2.450:J 103.711 BAM 10/01,'2032 43!31! 30CJO 25CTOO 103 367 BAM 10i(l1,21ll3 43:JV 3JlOJO 2.550:J 103.025 BAM l0/C112034 44:JM 3.0CJO 2.600) 102.003 BAM 1 (),'()1 i2C:3.5 4S'Or~t 3.0CJO 2.700{) 102.CJ4 BAM 10,'C-1/2036 1()l(l1,:?C•27 7{!51.' 3.C·!!'.03 2 a:e-r:;, 100 PB6 BAM 10/Cl/203-8 10/0112039 225 .. ,. 3.0CJ.J 3 OC!O 100.030 BAM 10/01/2043 1Cl01,'2041 ,01011!0~2 Ja:r.• ~ IC10 s 10ca 100 CJO BAM Tofal tnte:,e,;,t Cc,st: $2, 119,531> 25 Pre"'..iJm: :Sl!5,272.13 Net rtocrast C0st S2,024.,267.12 TIC: 2.84776(1 Total lnsurano,; F'<<>m J'l1: :s::3,400.:10 T,-,,e Last Bid Reoei,ed On:04.;J4l2022 H:l5:39 cosr ...,.h~s i=~o~c.sa~ 3s made sr..:bject tOt a:~ of U:e te··ms a,nd cond":icms of the OFic"a· S;id Forr-th.2 Of:ic··.3 ~otice of Sa"e, ard !'"le Prel 11'.'lary Off~ial State.-·ent. aL ofvlh§ct-a:re. made a part hereof. S :Ider: =HiN Financial Capital J'a,rkets. Me:np~is. TN Contac!: N'ASON ~tCWi~LIAP/S "":t,;e: UNDERWRITER ... e.e;,'1cme:ll01-43.5-00J6 Fax: ----~ ~-=- Upconii"" calendar Ov~w Re.suit Excel BOK Financial Securities, Inc, -Dallas, TX's Bid Salina $8,195,000 General Obligation Internal Improvement Bonds, Series 2022-A Fe• th" agg•eg:aie princ:ps a'l1oun\ c,fSS. Hl5,0DG.30. "'" wffpay yoL S-3,276,283.(4, pk,s acc·ued interest =rom the <late ofiss·Je to i.ie dale of de[~ery. The Bc'lds are io bear ,nte·1:St a! the fol "wi,g rate(sjc Mafotjt • r ate Amm.n1$ Co;.1pcn % Yielc % Oolla•P'iee e,c. nd nsL ranee 10,'011202.'l 4&5'.l 3.0CrUO 1.t5!Hl 101.750 BAM 10/0•112024 58.61' 3.0C:10 1.'QOG:l 102.5~4 SAM 10/01.'2()25 585t.' 3.oc::io 2.00CJ 103.21!3 BAM 10J01.'2G26 62JV 3JlC:lO 2.05CJ 103.008 BAM 10•'01/2027 530A' 3.0C:JJ 2.15CJ 104.32Q SAM 101t\112021l 55-0M 3.0COO 2.300:l 104.157 BAM 1()•'(11{2029 5531,• 3.0.0JO 2.40CJ 1:!4.057 BAM 10101,'.203'0 42.)M 3.0CDO 2.45CD 103.7H SAM 10/01/203'1 43:JM 3.0C:JO 2.55CD '10:l.025 BA,M •C-'1)112032 4WU 3 l'OOO 2.60CJ 102683 BAM 10101r.;_033 431)1.' 3.0CJO 2.70CO '102.CJ4 BAM 10/01,120~ 44'0:'t 3.uCOJ 2.300!) 101.a31 SAM 10.'01(202.5 451)/l 3.()01)0 2.85C:J 100.9'96 BAM 11}/0112036 46511 3.0GJO 2.9ClC:l 100.ll~2 SAM l0/01.2037 10/011203<1 440Y 3.000J 3.000-0 rno,co:i BAM 10.!'C1/203Q 10/1}1;'2040 2~J-✓ 312.S'J 3 1260 100.CJO BAM 10/(11/2041 ,OIG1'2.Q42 245'.' 3.2500 3250!) 100 CJJ BAM Total I nte'li:St Cost S2, l.l~.~JC.00 Pre""liJmc $00,283.34 Mel :r.teresl Cost S2.041l.6 HI. ll6 TIC: 2.885663 Total rnsUTance P-e'r'l:·Jm: $2..3~4C.D.OO Ti-,,e Last Bid Re::sel•,•ed On:C4/'.l4.'2G22 11:55:50 COST -h:s p:-oposai is me.de s1...bject to aL of ~e te""ms a""1d cond1~cris ofth@ Ofkia .. eid Fon"Y .. th-e O~lc 3 ~otice ofSa~e. a.rd n e Prer:n riary 0-ff-::ial sta1-e'""'1ent. al. ofv~ti:cr-~r-e mad~ a part t--e-reof. B":kler: SOKF:n<1"1c:a Secu•ities. re., Dal.as. TX Ccntact Ane.n ~latts.on -t:e: --:-e:;a;:,'lone:414-2C3-6558 Fax: 214-576-CB70 Upcoming Calendar OveJView Result Excel KeyBanc Capital Markets -Cleveland, OH's Bid Salina $8,195,000 General Obligation Internal Improvement Bonds, Series 2022-A Fer the agg;ega!e princips. a'lloun: of SB.195.000.30, w,-e ,c pay you SS,452.488.i!S, plJs aoceued hte,rest from the diate c;fiss'L!e to he, elate cf der.,ery. The Bc,~ds are le, bear :nte·est a~ the fol ~wi"'!! rat .. (sJ: Maturi! .. :::-are Amo~rtS Co,mcn% 10/(l112023 485M 4J)C30 10,'01,2024 585'/ 4JlC30 10./C112025 5~5'.' 4.0C30 10101 i202G 62(11,/' 4JlC3'.l 10.10112CiZ-62£1\' 4.00-00 10/()1/20,;S 65:J!t.l 4.0CJO 1o.,•c112c-..:a 651)'/. 4.00:JO 1c;o1,12oa•o 4::.D~I 4.0C:10 10/()1/203,1 43'DM 3.0G.JO 10101/2032 42:JM 3.0QJO 10.'C1/20&3 43-D~-~ 3.oc::,o 1(),'0112034 10,'1}1/2035 SSJt.' 3.CC):I 10!01,2036 10,'01,'203, 7951'/ 3.12.50 1Di0'1'203S ,0101121)39 10/(l1/204-0 1()(()1 ,2041 1Q10112C42 58&!l 3_2_5-:).) Total tnte;rest Cost: Pre"ni-Jm: Met :r:tares! Cost TIC:: TOtal lnsu.ra.n.ee. P:em·Jrn: Yielo% 2.0COJ 2.1GDJ 2.200 2.25CJ 2.3C,CJ 2.35C:J 2.4003 2.50GJ 2.75CJ 2.aoc:i 2.900) 3.000) ~-\50'.:l S.3vCD Doll,rf',ioe Bo~d rsL.rarce 102.794 104-467 105.9-0li ·,07,333 108Jl22 109.785 HC.82() H0.105 101.667 101.331 10:1.662 100.CJD !!9.6!!• il9 259 S2,2,82,8t6A1 $25 7 .488..65 S2. 125,327.76 2.969,264 Thie Last Bid Re<;ei'ied On:04,'::14,'2Cl22 11 :5'il:37 CDST ~his pra,pcsa' ·s ma<le s1.bjeottoal' of !re te,msa,c! co~flions of the Offie:.a· Bid Forw. the Ofic·a· l\.ctice of S.a e. ard ine Prer.,,·nary Ofhial Stat,,-ent, al otv,h:ch a·e made a part re•eof. 8':lder: Xe)•Ba,nc Capital Markets, C eve and , OH Cent.act Robert Bord -,1:!e-: '/a.nagi'"lg o· .. ector -e ep'1one:72C·-B04-4571 Fax: 600596.20227\FTC ATTACHMENT 3 BID COMPARISON C-1-5 ~Dea I 11:44:07 a.m. COST Bid Results I Upcoming Calendar I Overview I Compare ] Summary I Salina $8,195,000 General Obligation Internal Improvement. Bonds, Series 2022-A The following bids were submitted using PARtf'I& and displayed ranked by lowest TIC. Click on the name of each bidder to see the respective bids. Bid Award• Bidder Name TlC D Count{)( Clull B,mk 2.607853 D The Baker GrouP-2.633531 D Ra\•mond James & Associates, Inc. 2.645513 D Robert W. Baird & Co .. Inc. 2.677534 D Pi~r Sandler & Co 2.688231 D Commerce Bank 2.716635 D Northland Securities. Inc. 2.765270 D FHN Financial Caf_li!al Markets 2.8-47769 D BOK financial Securities Inc. 2.885663 D KeyBanc CaP.ilal Markets 2.969264 "Awarding !he Bonds to a specific bidder will provide you with the Reoffering Prices and Yields. © 1931-2002 ~Deaf U.C A.I nghls =•rved. Traoemarks EXHIBITD DESCRIPTION OF PROPERTY COMPRISING THE FINANCED IMPROVEMENTS 7,840,000 600596.20227\FTC CITY OF SALINA, KANSAS GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2022-A DATED APRIL 28, 2022 D-1 FEDERAL TAX CERTIFICATE EXHIBITD Description of Property Comprising the Financed Improvements City of Salina, Kansas General Obligation Internal Improvement Bonds Series 2022-A Bonds Asset Description Smoky Hill River Renewal (Series 2021-1 Notes) North 9th Street Bridge (Series 2021-1 Notes) Sanitation Trucks (Series 2021-1 Notes) Tony's Pizza Event Center -HVAC (Series 2021-1 Notes) Magnolia Hills Estates No. 2 Stone Lake Phase 3 Markley Road Trail Less land costs Net costs, excluding land Average, Reasonably Expected Economic Life: 120% of Average Reasonably Expected Economic Life Series 2022-A Bond Proceeds Allocated to Project Costs* Other Money Allocated to Project Costs** Total Project Costs Original Economic Life 20 20 10 20 20 20 20 120% Total Costs Paid from Asset Approximate Series 2022-A Type Project Costs Bond Proceeds* Other 27,000,000 1,658,444 Land Improv. 2,000,000 1,917,142 Equipment 1,600,000 1,592,504 Building 165,000 167,092 Land Improv. 1,575,240 1,512,451 Land Improv. 1,647,053 1,236,044 Land Improv. 165,569 25,190 34,152,861 8,108,866 34,152,861 8,108,866 18.04 years 21.64 years $ Economic Life X Finaned Cost 33,168,872 38,342,837 15,925,037 3,341,838 30,249,023 24,720,871 503,810 146,252,289 8,108,866 26,043,995 34,152,861 * Represents bond proceeds to repay Series 2021-1 Notes ($5,335,181.11) and bond proceeds ($2,773,117.28) and prepaid special assessments ($567.91) to ** Other Money may include prior or future tax-exempt financings. City of Salina, Kansas, Series 2022-A GO Bonds Exh. D-1 April 28, 2022 EXHIBITE FORM OF ANNUAL COMPLIANCE CHECKLIST $7,840,000 CITY OF SALINA, KANSAS GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2022-A DATED APRIL 28, 2022 The Bond Compliance Officer is the person that the Issuer has identified in the Tax Compliance Procedure who is primarily responsible for working with other Issuer officials, departments and administrators and for consulting with Bond Counsel, other legal counsel and outside experts to the extent necessary to carry out the Post-Issuance Tax Requirements for the Bonds. On the Issue Date, the Issuer identified certain assets financed in whole or in part by the Bonds (the "Financed Improvements"), as evidenced on Exhibit D to the Federal Tax Certificate. Please complete this checklist within 90 days after the conclusion of the Issuer's Fiscal Year. Should you have questions or need assistance in completing the checklist, please contact Bond Counsel at the address below. A completed copy of this annual checklist should be placed in the Tax-Exempt Bond File and retained in the Issuer's permanent records for at least 3 years after the final maturity of (1) the Bonds or (2) any obligation issued to refund the Bonds. Bond Compliance Officer Name: [~----~ Bond Compliance Officer Signature: Date of Report: Annual Period Covered by Report: ,._ ___ ] **H the answers to any of the following questions identify any compliance deficiencies, the Bond Compliance Officer should immediately contact Bond Counsel and take actions required in the Tax Compliance Procedure.** Item Question Response 1 Were all of the Financed Improvements owned by the Issuer during the entire 0Yes Ownership Annual Period? □No If answer above was "No," was advice of Bond Counsel obtained prior to the 0Yes transfer? □No If Yes, include a description of the advice in the Tax-Exempt Bond File. If No, contact Bond Counsel and include description of resolution in the Tax- Exempt Bond File. 2 During the Annual Period, was any part of the Financed Improvements leased at 0Yes Leases & Other any time pursuant to a lease or similar agreement for more than 50 days? □No Rights to Possession If answer above was "Yes," was advice of Bond Counsel obtained prior to 0Yes entering into the lease or other arrangement? □No If Yes, include a description of the advice in the Tax-Exempt Bond File. If No, contact Bond Counsel and include description of resolution in the Tax- Exempt Bond File. 600596.20227\FTC E-1 Item 3 Management or Service Agreements 4 Other Use 5 Proceeds & Investments 6 Arbitrage Bond Counsel: 600596.20227\FTC Question During the Annual Period, has the management of all or any part of the operations of the Financed Improvements (e.g., cafeteria, gift shop, etc.) been assumed by or transferred to another entity? If answer above was "Yes," was advice of Bond Counsel obtained prior to entering into the management agreement? If Yes, include a description of the advice in the Tax-Exempt Bond File. If No, contact Bond Counsel and include description of resolution in the Tax- Exempt Bond File. Was any other agreement entered into with an individual or entity that grants special legal rights to the Financed Improvements? If answer above was "Yes," was advice from Bond Counsel obtained prior to entering into the agreement? If Yes, include a description of the advice in the Tax-Exempt Bond File. If No, contact Bond Counsel and include description of resolution in the Tax- Exempt Bond File. Have any Gross Proceeds of the Bonds been invested in a Guaranteed Investment Contract? Has the Issuer entered into an Interest Rate Swap Agreement with respect to the Bonds? Has any sinking or reserve fund for the payment of the Bonds been established (other than funds and accounts created in the Bond Resolution)? Have any of the Bonds been redeemed or refunded in advance of their scheduled maturities? If answer to any of the above questions was "Yes," notify Bond Counsel with such information and place a copy of documentation in the Tax-Exempt Bond File. Has the rebate and yield reduction calculation been prepared for the current year? If No, contact Bond Counsel and incorporate report or include description of resolution in the Tax-Exempt Bond File. Gilmore & Bell, P.C. 100 N. Main, Suite 800 Wichita, Kansas 67202 Phone: (316) 267-2091 Attn: Mitch Walter Email: mwalter@ rrilmorebell.com E-2 Response 0Yes 0No 0Yes □No 0Yes □No 0Yes 0No 0Yes 0No 0Yes □No 0Yes n No 0Yes □No 0Yes □No SCHEDULE I DEBT SERVICE SCHEDULE AND PROOF OF YIELD 600.'196.20227\FfC S-1 Apr 4, 2022 3:05 pm Prepared by Gilmore & Bell, P.C. (Finance 8.800 Salina, KS:SALINA-2022_A,2022_A) Page I SOURCES AND USES OF FUNDS City of Salina, Kansas General Obligation Internal Improvement Bonds Series 2022-A Sources: Bond Proceeds: Par Amount Net Premium Dated Date Delivery Date Other Sources of Funds: 04/28/2022 04/28/2022 Prepaid Special Assessments -to Project Fund Uses: Project Fund Deposits: Project Fund Refunding Escrow Deposits: Bond Proceeds Delivery Date Expenses: Cost oflssuance Underwriter's Discount Other Uses of Funds: Additional Proceeds 7,840,000.00 397,576.30 8,237,576.30 567.91 8,238,144.21 2,773,685.19 5,335,181.11 80,885.00 46,648.00 127,533.00 1,744.91 8,238,144.21 This information is provjded based on the factual information and assumptions provided to Gilmore & Bell, P.C. by a party to or a representative of a pmty to thl'! proposed transaction. This in.fonnation is. intended to provide factual information only and is provided in conjunc.tion with our legal rep1·esentation. It is not intended as financial advice or a fin..•mcial rec01wnendation to any party. Gilmore & Bell~ P.C. is not a financial advisor or a "municipal advisor" as defined in the Secudties Exchange Act of 1934" as amended. Apr 4, 2022 3:05 pm Prepared by Gilmore & Bell, P.C. (Finance 8.800 Salina, KS:SALINA-2022_A.2022_A) Page 2 BOND DEBT SERVICE City of Salina, Kansas General Obligation Internal Improvement Bonds Series 2022-A Annual Period Debt Ending Principal Coupon Interest Debt Service Service 04/01/2023 248,455.00 248,455.00 10/01/2023 390,000 4.000% 134,300.00 524,300.00 772,755 04/01/2024 126,500.00 126,500.00 10/01/2024 525,000 4.000% 126,500.00 651,500.00 778,000 04/01/2025 116,000.00 116,000.00 10/01/2025 550,000 4.000% 116,000.00 666,000.00 782,000 04/01/2026 105,000.00 105,000.00 10/01/2026 560,000 4.000% 105,000.00 665,000.00 770,000 04/01/2027 93,800.00 93,800.00 10/01/2027 590,000 4.000% 93,800.00 683,800.00 777,600 04/01/2028 82,000.00 82,000.00 10/01/2028 615,000 4.000% 82,000.00 697,000.00 779,000 04/01/2029 69,700.00 69,700.00 10/01/2029 635,000 4.000% 69,700.00 704,700.00 774,400 04/01/2030 57,000.00 57,000.00 10/01/2030 410,000 2.500% 57,000.00 467,000.00 524,000 04/01/2031 51,875.00 51,875.00 10/01/2031 425,000 2.500% 51,875.00 476,875.00 528,750 04/01/2032 46,562.50 46,562.50 10/01/2032 430,000 2.750% 46,562.50 476,562.50 523,125 04/01/2033 40,650.00 40,650.00 10/01/2033 430,000 3.000% 40,650.00 470,650.00 511,300 04/01/2034 34,200.00 34,200.00 10/01/2034 440,000 3.000% 34,200.00 474,200.00 508,400 04/01/2035 27,600.00 27,600.00 10/01/2035 450,000 3.000% 27,600.00 477,600.00 505,200 04/01/2036 20,850.00 20,850.00 10/01/2036 465,000 3.000% 20,850.00 485,850.00 506,700 04/01/2037 13,875.00 13,875.00 10/01/2037 335,000 3.000% 13,875.00 348,875.00 362,750 04/01/2038 8,850.00 8,850.00 10/01/2038 110,000 3.000% 8,850.00 118,850.00 127,700 04/01/2039 7,200.00 7,200.00 10/01/2039 115,000 3.000% 7,200.00 122,200.00 129,400 04/01/2040 5,475.00 5,475.00 10/01/2040 120,000 3.000% 5,475.00 125,475.00 130,950 04/01/2041 3,675.00 3,675.00 10/01/2041 120,000 3.000% 3,675.00 123,675.00 127,350 04/01/2042 1,875.00 1,875.00 10/01/2042 125,000 3.000% 1,875.00 126,875.00 128,750 7,840,000 2,208,130.00 10,048,130.00 10,048,130 This infonn.ation is provided based on the factual information and assumptions provided to Gilmore & Bell, P.C. by a party to or a representative of n party to the proposed transaction. This infonnation is. intended to provide facrual infonnation only and is p1·ovided in conjunction with our legal l"epi-esentation. It is not intended as financial advice or a financial recommendation to any party. Gilmore & Bell, P.C. is not a financial advisor or a ·"municipal advisor~•· as de:fined in the Securities Ex.change Act of 1934~ as amended. Apr 4, 2022 3:05 pm Prepared by Gilmore & Bell, P.C. (Finance 8.800 Salina, KS:SALINA-2022_A.2022_A) Page 3 BOND PRICING City of Salina, Kansas General Obligation Internal Improvement Bonds Series 2022-A Maturity Bond Component Date Amount Rate Yield Price Bond Component: 10/01/2023 390,000 4.000% 1.601% 103.366 10/01/2024 525,000 4.000% 1.900% 104.952 10/01/2025 550,000 4.000% 2.000% 106.587 10/01/2026 560,000 4.000% 2.050% 108.207 10/01/2027 590,000 4.000% 2.100% 109.692 10/01/2028 615,000 4.000% 2.200% 110.728 10/01/2029 635,000 4.000% 2.250% 111.903 10/01/2030 410,000 2.500% 2.300% 101.357 C 10/01/2031 425,000 2.500% 2.350% 101.015 C 10/01/2032 430,000 2.750% 2.400% 102.366 C 10/01/2033 430,000 3.000% 2.450% 103.711 C 10/01/2034 440,000 3.000% 2.500% 103.367 C 10/01/2035 450,000 3.000% 2.600% 102.683 C 10/01/2036 465,000 3.000% 2.650% 102.343 C 10/01/2037 335,000 3.000% 2.750% 101.667 C 7,250,000 Term 1 Bond: 10/01/2040 345,000 3.000% 3.000% 100.000 Term 2Bond: 10/01/2042 245,000 3.000% 3.050% 99.242 7,840,000 Dated Date 04/28/2022 Delivery Date 04/28/2022 First Coupon 04/01/2023 Par Amount 7,840,000.00 Premium 397,576.30 Production 8,237,576.30 105.071126% Underwriter's Discount -46,648.00 -0.595000% Purchase Price 8,190,928.30 104.476126% Accrued Interest Net Proceeds 8,190,928.30 This information is provided based on the factual information and assumptions provided to Gilmore & Be-11, P.C. by a party to or a representative of a party to the proposed transaction. This information is intended to pi-ovide fachial information only and is provided in conjunction ,vith our legal rep1·esentation. It is not int.ended as financial advice or a financial recoirunendation to any party. Gilmore & Bell, P.C. is not a financial advisor or a "municipal advisor~' as defined in the Securities Exchange Act of 1934, as amended. Apr 4. 2022 3:05 pm Prepared by Gilmore & Bell, P.C. (Finance 8.800 Salina, KS:SALINA-2022_A,2022_A) Page 4 BOND SUMMARY STATISTICS City of Salina, Kansas General Obligation Internal Improvement Bonds Series 2022-A Dated Date Delivery Date First Coupon Last Maturity Arbitrage Yield True Interest Cost (TIC) Net Interest Cost (NIC) All-In TIC Average Coupon Average Life (years) Weighted Average Maturity (years) Duration oflssue (years) Par Amount Bond Proceeds Total Interest Net Interest Total Debt Service Maximum Annual Debt Service Average Annual Debt Service Underwriter's Fees (per $1000) Average Takedown Other Fee Total Underwriter's Discount Bid Price Par Bond Component Value Bond Component Term I Bond Term 2Bond Par Value + Accrued Interest + Premium (Discount) -Underwriter's Discount -Cost oflssuance Expense -Other Amounts Target Value Target Date Yield 7,250,000.00 345,000.00 245,000.00 7,840,000.00 TIC 7,840,000.00 397,576.30 -46,648.00 8,190,928.30 04/28/2022 2.617385% 04/28/2022 04/28/2022 04/01/2023 10/01/2042 2.471617% 2.617385% 2.683740% 2.750669% 3.190847% 8.827 8.720 7.560 7,840,000.00 8,237,576.30 2,208,130.00 1,857,201.70 10,048,130.00 782,000.00 491,952.51 Price 105.509 100.000 99.242 5.950000 5.950000 104.476126 Average Coupon 3.227% 3.000% 3.000% All-In TIC 7,840,000.00 397,576.30 -46,648.00 -80,885.00 8,110,043.30 04/28/2022 2.750669% Average Life 8.041 17.454 19.935 8.827 Arbitrage Yield 7,840,000.00 397,576.30 8,237,576.30 04/28/2022 2.471617% This information is provided based on the factual inf01mation and assumptious provided to Gilmore & Bell, P.C. by a party to or a .representative of a party to the proposed transaction. This information is. intended to provide factual information only and is provided in conjunction with our Legal representation. It is not intended as financial advice or a financial recommeudation to any party. Gilmore & Bell, P.C. is not a financial advisor or a "municipal advisor,. as defmed in the Securities Exchange Act of 1934, as amended. Apr 4, 2022 3:05 pm Prepared by Gilmore & Bell, P.C. (Finance 8.800 Salina, KS:SALINA-2022_A,2022_A) Page 5 PROOF OF ARBITRAGE YIELD City of Salina, Kansas General Obligation Internal Improvement Bonds Series 2022-A Date 04/01/2023 10/01/2023 04/01/2024 10/01/2024 04/01/2025 10/01/2025 04/01/2026 10/01/2026 04/01/2027 10/01/2027 04/01/2028 10/01/2028 04/01/2029 10/01/2029 04/01/2030 10/01/2030 04/01/2031 10/01/2031 04/01/2032 10/01/2032 04/01/2033 10/01/2033 04/01/2034 10/01/2034 04/01/2035 10/01/2035 04/01/2036 10/01/2036 04/01/2037 10/01/2037 04/01/2038 10/01/2038 04/01/2039 10/01/2039 04/01/2040 10/01/2040 04/01/2041 10/01/2041 04/01/2042 10/01/2042 Debt Service 248,455.00 524,300.00 126,500.00 651,500.00 116,000.00 666,000.00 105,000.00 665,000.00 93,800.00 683,800.00 82,000.00 697,000.00 69,700.00 2,919,700.00 24,312.50 434,312.50 19,187.50 444,187.50 13,875.00 13,875.00 13,875.00 13,875.00 13,875.00 13,875.00 13,875.00 13,875.00 13,875.00 13,875.00 13,875.00 348,875.00 8,850.00 118,850.00 7,200.00 122,200.00 5,475.00 125,475.00 3,675.00 123,675.00 1,875.00 126,875.00 9,716,405.00 Proceeds Summarv Delivery date Par Value Premium (Discount) Target for yield calculation Present Value to 04/28/2022 @ 2.4716174462% 242,873.18 506,264.54 120,657.42 613,823.85 107,957.59 612,259.11 95,349.01 596,505.37 83,111.55 598,485.31 70,893.12 595,235.56 58,796.94 2,432,909.78 20,011.67 353,119.57 15,410.04 352,385.06 10,873.01 10,740.29 10,609.18 10,479.67 10,351.74 10,225.37 10,100.55 9,977.25 9,855.46 9,735.15 9,616.31 238,842.23 5,984.81 79,391.16 4,750.85 79,648.18 3,524.96 79,798.28 2,308.66 76,744.97 1,149.30 76,820.26 8,237,576.30 04/28/2022 7,840,000.00 397,576.30 8,237,576.30 This information is provided based on the factual information and assumptions provided to Gilmore & Bell, P .C. by a party to or a representative of a party to the proposed transaction. This information is intended to provide :factual infonnation only and is provided in conjunclion with our legal represemation. It is not intended as financial advice or a fiua,ncial recommendation to any party. Gilmore & Bell> P.C. is not a financial ad\.•isor or a •·municipal advisorn as defined in the Securities Exchange Act of 1934, as amended. Apr 4, 2022 3:05 pm Prepared by Gilmore & Bell, P.C. (Finance 8.800 Salina KS:SALINA-2022_A,2022_A) Page 6 Bond Component BOND BOND BOND BOND BOND Bond Maturity Component Date BOND 10/01/2032 BOND 10/01/2033 BOND 10/01/2034 BOND 10/01/2035 BOND 10/01/2036 PROOF OF ARBITRAGE YIELD City of Salina, Kansas General Obligation Internal Improvement Bonds Series 2022-A Assumed Call/Computation Dates for Premium Bonds Maturity Date Rate Yield 10/01/2032 2.750% 2.400% 10/01/2033 3.000% 2.450% 10/01/2034 3.000% 2.500% 10/01/2035 3.000% 2.600% 10/01/2036 3.000% 2.650% Call Date 10/01/2029 10/01/2029 10/01/2029 10/01/2029 10/01/2029 Call Price 100.000 100.000 100.000 100.000 100.000 Yield To Call/Maturity 2.3983572% 2.4482649% 2.4982215% 2.5981179% 2.6480559% Rejected Call/Computation Dates for Premium Bonds Call Call Yield To Increase Rate Yield Date Price Call/Maturity to Yield 2.750% 2.400% 2.4894815% 0.0911243% 3.000% 2.450% 2.6204970% 0.1722321% 3.000% 2.500% 2.6781721% 0.1799506% 3.000% 2.600% 2.7580913% 0.1599734% 3.000% 2.650% 2.8000864% 0.1520306% This information is prn•vided based on the factual infonnation and assumptions provided to Gilmore & Bell. P.C. by a party to or a representative of n party to the proposed transaction. This infonnation is intended to provide factual information only and is provided in conjunction ,;,.vith our legal 1·epresentation. It is not intended as financial advice or a financial n~commendation to any patty. Gilm.ore & Bell, P.C. is not a financial advisor or a ''municipal advisor" as defined in the Securities Exchange Act of 1934~ as amended. Apr 4, 2022 3:05 pm Prepared by Gilmore & Bell, P.C. (Finance 8.800 Salina.. KS:SALINA-2022_A.2022_A) Page 7 PROOF OF TIC City of Salina, Kansas General Obligation Internal Improvement Bonds Series 2022-A Date 04/01/2023 10/01/2023 04/01/2024 10/01/2024 04/01/2025 10/01/2025 04/01/2026 10/01/2026 04/01/2027 10/01/2027 04/01/2028 10/01/2028 04/01/2029 10/01/2029 04/01/2030 10/01/2030 04/01/2031 10/01/2031 04/01/2032 10/01/2032 04/01/2033 10/01/2033 04/01/2034 10/01/2034 04/01/2035 10/01/2035 04/01/2036 10/01/2036 04/01/2037 10/01/2037 04/01/2038 10/01/2038 04/01/2039 10/01/2039 04/01/2040 10/01/2040 04/01/2041 10/01/2041 04/01/2042 10/01/2042 Dated Date Bond TIC TIC target Debt Service 248,455.00 524,300.00 126,500.00 651,500.00 116,000.00 666,000.00 105,000.00 665,000.00 93,800.00 683,800.00 82,000.00 697,000.00 69,700.00 704,700.00 57,000.00 467,000.00 51,875.00 476,875.00 46,562.50 476,562.50 40,650.00 470,650.00 34,200.00 474,200.00 27,600.00 477,600.00 20,850.00 485,850.00 13,875.00 348,875.00 8,850.00 118,850.00 7,200.00 122,200.00 5,475.00 125,475.00 3,675.00 123,675.00 1,875.00 126,875.00 10,048,130.00 PV to 04/28/2022 @2.617385% 242,550.03 505,227.21 120,323.56 611,685.06 107,504.03 609,248.21 94,811.85 592,718.19 82,524.47 593,830.21 70,291.10 589,756.24 58,213.78 580,965.87 46,384.67 375,119.64 41,130.53 373,219.27 35,970.72 363,400.86 30,597.08 349,679.95 25,081.42 343,273.91 19,721.58 336,860.54 14,515.94 333,883.23 9,411.93 233,597.84 5,849.19 77,536.24 4,636.51 77,675.37 3,435.18 77,709.82 2,246.62 74,628.93 1,116.81 74,594.69 8,190,928.30 04/28/2022 2.617385% 8,190,928.30 This iufonuation is provided based on the facrunl information and assumptions provided to Gilmore & Bell, P.C. by a party to or a representative of a party to rile proposed transaction. This infonnation is. intended to provide fach.Jo.l information only and is provided in conjunction ·with our legal represeutation. It is not intended as financial ndvice or a fiu.,ncial rec0tmne11dation to any party. Gilm.ore & Bell, P.C. is not a financial advisor or a "muuicipRI advisor•i as defwed in the Securities Exchange Act of 1934, as amended. Apr 4, 2022 3:05 pm Prepared by Gilmore & Bell, P.C. (Finance 8.800 Salina, KS:SALINA-2022_A.2022_A) Page 8 FORM 8038 STATISTICS City of Salina, Kansas General Obligation Internal Improvement Bonds Series 2022-A Dated Date Delivery Date 04/28/2022 04/28/2022 Bond Component Date Principal Coupon Price Bond Component: 10/01/2023 390,000.00 4.000% 103.366 10/01/2024 525,000.00 4.000% 104.952 10/01/2025 550,000.00 4.000% 106.587 10/01/2026 560,000.00 4.000% 108.207 10/01/2027 590,000.00 4.000% 109.692 10/01/2028 615,000.00 4.000% 110.728 10/01/2029 635,000.00 4.000% 111.903 10/01/2030 410,000.00 2.500% 101.357 10/01/2031 425,000.00 2.500% 101.015 10/01/2032 430,000.00 2.750% 102.366 10/01/2033 430,000.00 3.000% 103.711 10/01/2034 440,000.00 3.000% 103.367 10/01/2035 450,000.00 3.000% 102.683 10/01/2036 465,000.00 3.000% 102.343 10/01/2037 335,000.00 3000% 101.667 Term 1 Bond: 10/01/2038 110,000.00 3.000% 100.000 10/01/2039 115,000.00 3.000% 100.000 10/01/2040 120,000.00 3.000% 100.000 Term2 Bond: 10/01/2041 120,000.00 3.000% 99.242 10/01/2042 125,000.00 3.000% 99.242 7,840,000.00 Stated Maturity Interest Issue Redemption Date Rate Price at Maturity Final Maturity 10/01/2042 3.000% 124,052.50 125,000.00 Entire Issue 8,237,576.30 7,840,000.00 Proceeds used for accrued interest Proceeds used for bond issuance costs (including underwriters' discount) Proceeds used for credit enhancement Proceeds allocated to reasonably required reserve or replacement fund Proceeds used to refund prior tax-exempt bonds Proceeds used to refund prior taxable bonds Remaining W AM of prior tax-exempt bonds (years) Remaining W AM of prior taxable bonds (years) Last call date ofrefunded tax-exempt bonds 2011 Form 8038 Statistics Proceeds used to currently refund prior issues Proceeds used to advance refund prior issues Remaining weighted average maturity of the bonds to be currently refunded Remaining weighted average maturity of the bonds to be advance refunded Issue Price 403,127.40 550,998.00 586,228.50 605,959.20 647,182.80 680,977.20 710,584.05 415,563.70 429,313.75 440,173.80 445,957.30 454,814.80 462,073.50 475,894.95 340,584.45 110,000.00 115,000.00 120,000.00 119,090.40 124,052.50 8,237,576.30 Weighted Average Maturity 8.7204 Redemption at Maturity 390,000.00 525,000.00 550,000.00 560,000.00 590,000.00 615,000.00 635,000.00 410,000.00 425,000.00 430,000.00 430,000.00 440,000.00 450,000.00 465,000.00 335,000.00 110,000.00 115,000.00 120,000.00 120,000.00 125,000.00 7,840,000.00 Yield 2.4716% 0.00 127,533.00 0.00 0.00 5,335,181.11 0.00 0.0083 0.0000 5,335,181.11 0.00 0.0083 0.0000 This information is prm;ided based on the facnrnl information and assumptions provided to Gilmore & Be-11, P.C. by a party to or a repl"esentative of a party to the proposed transaction. This infonnation is intended to provide fa.ch.ml inf01·mation only and is provided in conjunction with our legal representation. It is not intended as financial advice 01· a financial recmmnendation to a11y party. Gilmore & Bell~ P.C. is not a :financinl advisor or a "municipal advisor~' as defined in the SecuL"ities Exchange Act of 1934, as amended. Apr 4, 2022 3:05 pm Prepared by Gilmore & Bell, P.C. (Finance 8.800 Salina, KS:SALINA-2022_A,2022_A) Page 9 FORM 8038 STATISTICS City of Salina, Kansas General Obligation Internal Improvement Bonds Series 2022-A Bond Component Date Refunded Bonds Principal General Obligation Temporary Notes Series 2021-1: TERM 05/01/2022 5,230,000.00 5,230,000.00 General Obligation Temporary Notes Series 2021-1 All Refunded Issues Coupon 2.000% Last Call Date Price 101.826 Issue Date 04/29/2021 Issue Price 5,325,499.80 5,325,499.80 Remaining Weighted Average Maturity 0.0083 0.0083 This infonnation is provided based on tile factual information and a.ssumptious provided to Gihnore & Bell, P.C. by a party to or a representative of a party to the proposed trnnsactfon. This information is intended to provide fachmJ information only and is provided in conjunction l.Vith our legal representation. It is not int.ended as financial advice or a financial reco1wne11dation to any party. Gilru.ore & BeU, P.C. is not a financial advisor or a "wunicipaJ advisor•• as de:fined in the Sec11dties E.xc.hauge Act of 1934, as amended. Apr 4, 2022 3:05 pm Prepared by Gilmore & Bell, P.C. (Finance 8.800 Salina, KS:SALINA-2022_A,2022_A) Page IO SUMMARY OF REFUNDING RESULTS City of Salina, Kansas General Obligation Internal Improvement Bonds Series 2022-A Dated Date Delivery Date Arbitrage yield Escrow yield Value of Negative Arbitrage Bond Par Amount True Interest Cost Net Interest Cost All-In TIC Average Coupon Average Life Weighted Average Maturity Par amount of refunded bonds Average coupon of refunded bonds Average life of refunded bonds Remaining weighted average maturity of refunded bonds PV of prior debt to 04/28/2022 @2.750669% Net PV Savings Percentage savings of refunded bonds Percentage savings of refunding bonds 04/28/2022 04/28/2022 2.471617% 0.000000% 7,840,000.00 2.617385% 2.683740% 2.750669% 3.190847% 8.827 8.720 5,230,000.00 2.000000% 0.008 0.008 5,333,966.64 -1,214.47 -0.023221% -0.015491% This information is. provjded based on the facrual information and assumptions provided to Gilmore & Bell, P.C. by a party to or a represeutative of a party to the proposed transaction. This information is intended to p1'ovide factual infonnation only and is pro·vided in conjunction with our legal represeuration. It is not intended as :financial advice or a fitumciaJ recommendation to any party. Gilmore & Bell, P.C. is not a financial advisor or a "municipal advisorn as defined in the Securities E.xchauge Act of !934~ as amended. Apr 4, 2022 3:05 pm Prepared by Gilmore & Bell, P.C. (Finance 8.800 Salina, KS:SALINA-2022_A,2022_A) Page 11 PRIOR BOND DEBT SERVICE City of Salina, Kansas General Obligation Internal Improvement Bonds Series 2022-A Dated Date 04/28/2022 Delivery Date 04/28/2022 Period Annual Ending Principal Coupon Interest Debt Service Debt Service 05/01/2022 5,230,000 2.000% 105,181.11 5,335,181.11 10/01/2022 5,335,181.11 5,230,000 105,181.11 5,335,181.11 5,335,181.11 This information is provjded based on the fach.rnJ information and assumptions provided to Gilmore & Bell, P.C. by a party to or a .representative of a party to the proposed transaction. This information fa intended to provide factual infonnation only and is provided in conjunction '\Vith our legal rep1·eseutation. It is not intended as financial advice or a fiwmcial rec01wnendation to any party. Gilmore & Bell, P.C. is not a financial advisor or a "umnicipaJ advisor" as defined in the Securities Exchange Act of 1934J as amended. Apr 4, 2022 3:05 pm Prepared by Gilmore & Bell, P.C. (Finance 8.800 Salina, KS:SALINA-2022_A,2022_A) Page 12 SUMMARY OF BONDS REFUNDED City of Salina, Kansas General Obligation Internal Improvement Bonds Series 2022-A Bond Maturity Date Interest Rate Par Amount General Obligation Temporary Notes Series 2021-1, 2021_1TN, TERM: 05/01/2022 2.000% 5,230,000 5,230,000 Call Date Call Price This infonnation ls provided based on tile factual infonnation and assumptions provided to Gilmore & Bell, P .C. by a party to or a representative of a party to the proposed transaction. This inf"onnation is. intended to provide :factual infonnation only and is provided in conjunction with our legal representation. It is not intended as financial advice or a fiUBncial reco1wnendation to any party. Gilmore & Bell~ P.C. is not a financial advisor or a ~·municipal advisor•• as defined in the Sec1.11"ities Exchange Act of 1934, as amended. Apr 4, 2022 3:05 pm Prepared by Gilmore & Bell, P.C. (Finance 8.800 Salina, KS:SALINA-2022_A,2022_A) Page 13 ESCROW REQUIREMENTS City of Salina, Kansas General Obligation Internal Improvement Bonds Series 2022-A Period Ending 05/01/2022 Principal 5,230,000 5,230,000 Interest Total 105,181.11 5,335,181.11 105,181.11 5,335,181.11 This information is provide,d based on the fachrnl information and assumptious provided to Gilmore & Bell, P.C. by a party to or a representative of a party to the proposed transaction. This infonnation is intended to provide factual information only and is provided in conjunction -..vith our legal representation. It is not intended as financial advice or a financial recommendation to any party. Gilmol'e & Bell, P.C. is not a financial ad'\'isor or a "municiµ:tl advisor'' 3S defined in the Secudties E.xch:mge Act of 1934,. as amended. Governing Body City of Salina, Kansas $ GILMOl\._EBELL One Main Place -100 North Main, Suite 800 Wichita, Kansas 67202-1311 (316) 267-2091 / (316) 262-6523 FAX/ gilmorebell.com April28,2022 Country Club Bank Leawood, Kansas Re: $7,840,000 General Obligation Internal Improvement Bonds, Series 2022-A, of the City of Salina, Kansas, Dated April 28, 2022 We have acted as Bond Counsel in connection with the issu~ce by the City of Salina, Kansas (the "Issuer"), of the above-captioned bonds (the "Bonds"). In this capacity, we have examined the law and the certified proceedings, certifications and other documents that we deem necessary to render this opinion. Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the resolution adopted by the governing body of the Issuer prescribing the details of the Bonds. Regarding questions of fact material to our opinion, we have relied on the certified proceedings and other certifications of public officials and others furnished to us without undertaking to verify them by independent investigation. Based upon the foregoing, we are of the opinion, under existing law, as follows: 1. The Bonds have been duly authorized, executed and delivered by the Issuer and are valid and legally binding general obligations of the Issuer. 2. The Bonds are payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of certain improvements and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The balance of the principal and interest on the Bonds is payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The Issuer is required by law to include in its annual tax levy the principal and interest coming due on the Bonds to the extent that necessary funds are not provided from other sources. 3. The interest on the Bonds (including any original issue discount properly allocable to an owner of a Bond) is: (a) excludable from gross income for federal income tax purposes; and (b) not an item of tax preference for purposes of the federal alternative minimum tax. The opinions set forth in this paragraph are subject to the condition that the Issuer complies with all requirements of the Internal Revenue Code of 1986, as amended (the "Code") that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excludable from gross income for federal income tax purposes. The Issuer has covenanted to comply with all of these requirements. Failure to comply with certain of these requirements may cause interest on the Bonds to be included in gross income for federal income tax purposes retroactive to the date of issuance of the Bonds. The Bonds are "qualified tax-exempt obligations" within the meaning of Code§ 265(b)(3). We express no opinion regarding other federal tax consequences arising with respect to the Bonds. City of Salina, Kansas General Obligation Internal Improvement Bonds $7,840,000-Series 2022-A Dated April 28, 2022 Page 2 4. The interest on the Bonds is exempt from income taxation by the State of Kansas. We express no opinion regarding the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Bonds ( except to the extent, if any, stated in the Official Statement). Further, we express no opinion regarding tax consequences arising with respect to the Bonds other than as expressly set forth in this opinion. The rights of the owners of the Bonds and the enforceability thereof may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights generally and by equitable principles, whether considered at law or in equity. This opinion is given as of its date, and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may come to our attention or any changes in law that may occur after the date of this opinion. GMR/MLW:paj 600596.20227\BOND OPINION STATE OF KANSAS OFFICE OF THE ATTORNEY GENERAL DEREK SCHMJDT ATTORNEY GENERAL The Honorable Lynn Rogers State Treasurer April 28, 2022 Landon State Office Building, Room 201 N Topeka, KS 66612 Dear Mr. Rogers: MEMORIAL HALL 120 SW 10TH AVE., 2ND FLOOR TOPEKA, KS 6661 2-1597 (785) 296-2215 • FAX (785) 296-6296 WWW.AG.KS.GOV Pursuant to K.S.A. 10-108, basic or supplemental transcript material is hereby approved and you may register the following: Municipality: City of Salina, Kansas Description: General Obligation Internal Improvement Bond Series: 2022-A Numbered: Registered Dated: April 28, 2022 Aggregate Amount: $7,840,000.00 Date of First Payment: April 1, 2023 Fiscal Agent: Kansas State Treasurer Sincerely, RDS:sb cc: JoVonna A. Rutherford, Clerk Gilmore & Bell-Wichita OFFICE OF THE ATTORNEY GENERAL DEREK SCHMIDT r c) 1/1.L-<---I~ Richard D. Smith Assistant Attorney General STIFEL I Public finance CLOSING MEMORANDUM April 12, 2022 TO: SEE DISTRIBUTION LIST FROM: DAVID ARTEBERRY RE: BOND ISSUE CLOSING ARRANGEMENTS NAME OF ISSUER: AMOUNT. NAME AND DATE OF ISSUE: TIME AND DATE OF CLOSING: SETTLEMENT NUMBERS: METHOD OF FUNDS TRANSFER: City of Salina, Kansas (the "City") $7,480,000 City of Salina, Kansas General Obligation Internal Improvement Bonds Series 2022-A Dated April 28, 2022 (the "Bonds") 10:00 a.m. Thursday, April 28, 2022 Via telephone Par Amount of Bonds Add: Reoffering Premium Less: Underwriter's Discount Less: Good Faith Deposit Net Amount Due at Closing Wire Transfer of Federal Funds $7,840,000.00 397,576.30 (46,648.00) (163,900.00) $8,027,028.30 4801 Main Street, Suite 530 I Kansas City, Missouri 64112 I (816) 203-8728 main Stifel, Nicolaus & Company, Incoxporated I Member SIPC & NYSE I www.stifel.com Page2 TRANSFER INSTRUCTIONS: (Country Club Bank Wire #1) (Country Club Bank Wire #2) DISPOSITION OF FUNDS: (Kansas State Treasurer) (City) DELIVERY OF TRAN SC RI PT AND LEGAL OPINION: BOND DELIVERY INSTRUCTIONS: On Thursday, April 28, 2022 Country Club Bank will wire transfer an amount of$5.335.181.11 to: U.S.BankN.A. ABA #1010-0018-7 For credit to State Treasurer Operating Account Account#145592399581 For further credit to City of Salina Attn: Shauna Wake On Thursday, April 28, 2022 Country Club Bank will wire transfer an amount of$2.691,847.19 to: Sunflower Bank ABA #: 1011-0062-1 Account Name: City of Salina Account#: 102187275 Attn: Debbie Pack The Kansas State Treasurer shall use the $5,335,181.11 received from Country Club Bank to redeem the City's outstanding General Obligation Temporary Notes, Series 2021-1 on May 1, 2022. The City shall deposit the $2,691,847.19 received from Country Club Bank along with the good faith deposit of$163,900.00 and prepaid special assessments of$567.91 (total of$2,856,315.10) into the following funds and accounts created pursuant to City Resolution No. 22-8041: Cost oflssuance Account Improvement Fund Total 82,629.91 2.773,685.19 $2,856,3 I 5.10 Upon receiving confirmation of receipt of funds, Gilmore & Bell will email a signed legal opinion to the City, Country Club Bank, and Stifel, Nicolaus & Company. Original signed legal opinions and transcripts will be mailed when completed. The Bonds will be delivered to the facilities of the Depository Trust Company at least one business day in advance of closing. PAYMENT OF COSTS OF ISSUANCE: All costs associated with the issuance of the Bonds will be paid after closing by the City from the Costs oflssuance Account upon presentation of the proper invoices. 4801 Main Street, Suite 530 I Kansas City, Missouri 641121 (816) 203-8728 main Stifel, Nicolaus & Company, Incorporated I Member SIPC & NYSE I www.stifel.com