Audit - 2003
COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF
CITY OF SALINA, KANSAS
300 West Ash Street
P.O. Box 736
Salina, Kansas 67402-0736
For the Fiscal Year Ended
December 31, 2003
Prepared by Department of Finance and Administration
of City of Salina, Kansas
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CITY OF SALINA, KANSAS
Comprehensive Annual Financial Report
For the year ended December 31, 2003
TABLE OF CONTENTS
Paqe
INTRODUCTORY SECTION
Letter of Transmittal
i-v
GFOA Certificate of Achievement for Excellence in Financial Reporting
vi
Organizational Chart
vii
List of Principal Officials
viii
FINANCIAL SECTION
Independent Auditor's Report on the Basic Financial Statements
1 - 2
Management's Discussion and Analysis
3 -14
Basic Financial Statements:
Government-wide Financial Statements
Statement of Net Assets
15
Statement of Activities
16
Fund Financial Statements
Balance Sheet - Governmental Funds
17
Reconciliation of the Total Governmental Fund Balance to
Net Assets of Governmental Activities
18
Statement of Revenues, Expenditures, and Changes in
Fund Balance - Governmental Funds
19
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures
And Changes in Fund Balances with the Government Wide Statement of Activities
20
Statement of Net Assets - Proprietary Funds
21
Statement of Revenues, Expenses, and Changes in Fund
Net Assets - Proprietary Funds
22
Statement of Cash Flows - Proprietary Funds
23 - 24
Statement of Assets and Liabilities
25
Notes to the Basic Financial Statements
26 - 50
CITY OF SALINA, KANSAS
Comprehensive Annual Financial Report
For the year ended December 31, 2003
TABLE OF CONTENTS - CONTINUED
Paqe
FINANCIAL SECTION - CONTINUED
Required Supplementary Information
Schedules of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual (Non-GAAP Basis)
General Fund
Employee Benefit Fund
Flood and Drainage Improvement Fund
Tourism and Convention Fund
Special Gas Fund
Bicentennial Center Fund
51 - 53
54 - 55
56
57
58
59
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
60 - 61
62
63
64 - 65
66 - 67
68
69
Individual Fund Schedules of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual (Non-GAAP Basis):
Business Improvement District Fund
Neighborhood Park Fund
Special Parks and Recreation Fund
Special Alcohol Fund
Fair Housing Fund
Debt Service Fund
Solid Waste Disposal Fund
Water and Sewer Fund
Sanitation Fund
Golf Course Division Fund
Risk Management Fund
Workers' Compensation Fund
Health Insurance Fund
Central Garage Fund
Computer Technology Fund
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
CITY OF SALINA, KANSAS
Comprehensive Annual Financial Report
For the year ended December 31,2003
TABLE OF CONTENTS - CONTINUED
FINANCIAL SECTION - CONTINUED
Internal Service Fund Descriptions
Combining Statement of Net Assets - Internal Service Funds
Combining Statement of Revenues, Expenses, and Changes in Net
Assets - Internal Service Funds
Combining Statement of Cash Flows - Internal Service Funds
Fiduciary Fund Descriptions - Agency Funds
Combining Balance Sheet - Agency Funds
Combining Statement of Changes in Fiduciary Net Assets - Agency Funds
GOVERNMENTAL AUDIT SECTION
Independent Auditor's Report on Compliance and on Internal Control
Over Financial Reporting Based on an Audit of Financial Statements
Performed in Accordance with "Government Auditing Standards"
STATISTICAL SECTION
General Governmental Expenditures by Function - Last Ten Years
General Governmental Revenues by Source - Last Ten Years
General Governmental Tax Revenues by Source - Last Ten Years
Property Tax Levies and Collections - Last Ten Years
Assessed and Estimated Actual Value of Property - Last Ten Years
Principal Taxpayers
Property Tax Rates - Direct and Overlapping Governments
Special Assessments Billings and Collections
Computation of Legal Debt Margin
Ratio of Net General Obligation Bonded Debt to
Assessed Value and Net General Obligation
Bonded Debt Per Capita
Paqe
85
86
87
88 - 89
90
91
92
93
Table
94
2 95
3 96
4 97
5 98
6 99
7 100
8 101
9 102
10
103
CITY OF SALINA, KANSAS
Comprehensive Annual Financial Report
For the year ended December 31, 2003
TABLE OF CONTENTS - CONTINUED
STATISTICAL SECTION - CONTINUED
Ratio of Annual Debt Service Expenditures for
General Obligation Bonded Debt to Total General
Governmental Expenditures
Computation of Direct and Overlapping Debt
Revenue Bond Coverage - Water and Sewer Fund
Property Value and Construction
Demographic Analysis
Enterprise Fund Operating Position History
Table Paqe
11
104
12
105
13
106
14
107
15
108
16
109
INTRODUCTORY SECTION
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DEPARTMENT OF FINANCE
AND ADMINISTRATION
Rodney Franz, Director
300 West Ash, P.O. Box 736
Salina, Kansas 67402-0736
City of
!:i
Salina
TELEPHONE (785) 309-5735
FAX (785) 309-5738
TDD (785) 309-5747
E-MAIL rod.franz@salina.org
Website: www.cLsalina.ks.us
July 25, 2004
To the Citizens of the City of Salina, Kansas:
The Comprehensive Annual Financial Report of the City of Salina, Kansas (the "City") for the year ended
December 31, 2003, is hereby submitted. The City's Finance Department prepared the report. 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
In 1999, the Governmental Accounting Standards Board issued authoritative guidance regarding the preparation
and presentation of annual financial statement by State and Local Governments. 2003 is the first year in which
the City is required to comply. As a result, the statements this year are somewhat different in appearance than
in previous years.
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
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 and Financial Policies are reviewed by the City
Commission and updated each year as a part of the budget process.
City staff is responsible for establishing and maintaining an internal control structure designed to ensure that the
assets of the City are protected from loss, theft or misuse and that adequate accounting data is compiled to allow
for the preparation of financial statements in conformity with generally accepted accounting principles. The
internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives
are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the
benefits likely to be derived; and (2) the valuation of costs and benefits require estimates and judgment by
management.
The objective of budgetary controls is to ensure compliance with legal provisions embodied in the annual
appropriated budget approved by the City Commission. The legal level of budgetary control is maintained at the
Fund level, in accordance with State Statutes. However, management control is maintained at the department
level. The City uses an encumbrance accounting system, in which estimated purchase amounts are recorded
prior to the release of purchase orders to vendors. Open encumbrances are reported as reservations of fund
balance at December 31,2002 in the general fund and the special revenue funds. Various internal compliance
procedures are implemented to insure proper implementation of the budget as well as to maintain a degree of
accountability for both revenues and expenditures.
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 act as Mayor. The City Manager is appointed by the Commission, and acts as it's primary agent in
accordance with state statute. Other city officers and employees are appointed by the City Manager. The current
population of the City is 45,969.
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. In
addition, the City of Salina participates in two joint ventures with Saline County, the Salina - Saline County Board
of Health and the City-County Building Authority. This report includes all funds and account groups of the City.
The City provides a full range of services including police and fire protection, development services, construction
and maintenance of streets, drainage facilities and other infrastructure; recreational activities and cultural events;
emergency medical services and convention facilities. In addition to general government activities, the City also
provides water, wastewater, sanitation, and solid waste services; therefore, these activities are included in the
reporting entity.
Economic Outlook and Strength
The City benefits from its location at the junction of Interstate Highways 70 and 135. This convenient location
has drawn numerous national and regional companies to open manufacturing or distribution centers in or
adjacent to the community. Such companies include Raytheon Aircraft, Pepsi-cola, Exide Battery, Philips
Lighting, EIDorado Bus and lock/line. Currently 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",
ranking 5th (pull factor = 1.53). The pull factor measures the degree to which a city or county area captures retail
trade from outside the jurisdiction. A pull factor of greater than 1 indicates that a city is attracting more retail trade
from outside the city/county than it is losing to other counties. It is apparent from this that Salina continues to
serve as a regional economic hub in 2003. In addition, Saline County continues to rank third in the State
Economic Strength index, as outlined by Kansas State University research and extension. The index measures
economic prosperity, using wealth, personal income, and employment.
ii
2003 represented a time of economic challenges for the community and the nation. Growth in the building
industry continued, but at a reduced pace. Value of permits issued fell from $62 million to $46, million, while new
commercial permit value dropped from $47 million to $19 million. However, these are still both well within
historical ranges. The unemployment rate for the City increased to 4.0% at the close of 2003, considerably below
statewide and national rates.
The growth activity in the local housing industry continued in 2003. The strong local economy and lower interest
rates contributed to this demand. Ninety-one (91) new single-family homes were started in 2003. This is just
slightly above the average of the previous 8 years and the greatest number of starts since 1996. As of April 2004,
175 vacant and buildable lots were available within the City of Salina. This is approximately a 2 year supply.
This number has been declining since 1997, when 406 lots were available. During 2003, two new subdivisions
were approved and are developing, that will include, when complete, 104 single family lots and one townhome
area. Pending subdivisions under review will include a total of 248 additional lots.
In addition to single family homes, three significant (172 total living units) multi-family housing complexes were
completed in 2003 and early 2004.
Major Initiatives
The Salina community initiated a major improvement to the educational system in November 1999, when the
voters approved a $98,000,000 bond issue to be used for school expansion and construction. Also approved
in the same election was an additional ~ cent City sales tax to be used for instructional technology and career
educational equipment. Bond issue proceeds have been used to construct a new middle school (now complete),
replacing a structure built in 1912. In addition, expansions and improvements are completed or substantially
underway at both high schools, at South Middle School, and at the Elementary Schools. The project continued
to make significant progress through 2003. The tax for this purpose is scheduled to sunset June 30, 2004.
From project inception through the end of 2003, the City has transferred a total of $ 9,909,867 in sales tax
proceeds to U.S.D. 305 for use in the technology project.
In March, 2004, voters elected to extend the ~ cent tax until June 30, 2010. Eighty-five percent (85%) of the tax
is to be used for capital improvements, tax stabilization, and human services. The remaining 15% is to be used
for economic development programs.
A $4.5 million project to construct an interchange at Waterwell Road and 1-135 has been contracted by the State
of Kansas. This is a cooperative City-County-State Project, with the City of Salina share projected at $950,000.
Saline County will contribute $365,000, with the State of Kansas picking up the balance of the project as part
of a major economic development program. This interchange provides direct service to the South Ninth Street
Industrial Area as well as the Airport Industrial Center. Completion is anticipated in 2004.
In 2001, the City progressed towards another major transportation objective with the announcement of a grant
to construct a railroad overpass on North Ohio Street, a major arterial and entryway to the city. The State of
Kansas will contribute $12,000,000 towards the $18,000,000 project, with the City of Salina and the railroad
paying the remaining portion. The project will eliminate four tracks and bridge six additional tracks, providing
significant traffic safety enhancements as well as improving access to the City from Interstate 70. During 2003
progress continued on the project. This project is scheduled to be bid in 2005 and completed in late 2007.
Major improvements to the Water Treatment Plant were initiated in 1998 to increase treatment capability and
efficiency, and to address a groundwater contamination issue in Central Salina. This groundwater redemption
project brought the City into full completion of a state compliance agreement, eliminating any economic impacts
related to groundwater issues. Cost for the plant improvements was $5,500,000. Approximately $1,800,000 in
grant funds from the State of Kansas assisted in construction. The balance of the cost is financed by a 20-year
low interest loan from the State of Kansas. A second phase of the project has been initiated, at an additional
estimated cost of $4,000,000, also financed by a 20 year loan. This phase of the project will replace and expand
the clarifiers, provide a new lab facility, as well as an administration building. This project was completed in 2003.
Solid Waste disposal is becoming a stable operation, with 80,000 to 90,000 tons being disposed of each year.
The community remains committed to recycling and resource conservation, with several initiatives that began
in 1997, including a yard waste recycling and composting program in addition to continuing a mulching mower
rebate program. The community currently has about 4,700 yard carts placed to encourage recycling of yard
waste as an alternative to disposal. 2003 saw the initiation of a Pilot residential recycling program. This program
involves 968 households, and will continue until June, 2005, at which time results will be evaluated and a
decision made as to the expansion of the program to the rest of the community.
iii
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.
Construction Initiated*:
Routine Capital (All Funds)
Major Projects:
General Fund
Sales Tax*
Flood and Drainage Fund
Special Park Fund
Gas Tax Fund
Solid Waste Fund
Water & Wastewater Fund
General Obligation Bonds
Revenue Bonds
Other Sources
Total
$
2005 2006 2007 2008 2009
5,136,750 $ 3,400,000 $ 5,000,000 $ 4,000,000 $ 4,000,000
$ 200,000
$ 120,000
$ 1,873,350
$ 7,769,000 $ 2,000,000 $ 3,000,000
$
$ 15,329,500
$ 30,428,600 $ 3,400,000 $ 7,000,000 $ 7,000,000 $ 4,000,000
*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. Insure the safety of cash and near cash resources (timely collection of Accounts Receivable, etc.).
A wards
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate
of Achievement for Excellence in Financial Reporting to the City of Salina for its Comprehensive Annual Financial
Report (CAFR) for the fiscal year ended December 31,2002. The Certificate of Achievement is a prestigious
national award recognizing conformance with the highest standards for preparation of state and local government
financial reports.
IV
In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and
efficiently organized comprehensive annual financial report, whose contents conform to program standards. The
CAFR must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for one year only. We believe our current report continues to conform to
Certificate of Achievement program requirements, and we are submitting it to GFOA.
Acknowledgments
The preparation of the Comprehensive Annual Financial Report was made possible by the dedicated,
professional advice and effort of the Lowenthal, Singleton, Webb, and Wilson auditing team. A special thank
you needs to be given to Valerie Gebhardt, City Accountant, who is responsible for much of the data assembly
and reconciliation, and to Penny Day, Account Clerk III, who has been largely responsible for document assembly
and production. Finally, preparation of this report would not have been possible without the support of the City
Commission.
Sincerely,
C<2-,M~
Dennis M. Kissinger ...
City Manager
v
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Salina,
Kansas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2002
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
~
President
~/~
Executive Director
( City of salina)
Development Services
Coordination
Building Services
Planning & Development
Dean Andrew
Risk Management
Human Resources
Administration
General Services
Streets
Flood Works
Traffic Control
Central Garage
Sanitation
Landfill
Operations
Food & Beverage
Business/Ticket Office
Engineering
Design/Inspection
Traffic
Utilities
Water Treatment & Dist.
Wastewater Collect.rrreat.
II
CITIZENS
II
CITY COMMISSION
MOllte D. Shadwick, Mayor
Deborah P. Diville
Alall E. Jilka
DOllllie D. Marrs
Paul G. Webb
Deputy City Manager
Michael Morgall
Assistant City Manager
Vacallt
Municipal Court Judge
Brenda Sloss
City Attorney
Greg Bengtson *
Municipal Court
Administration
City Prosecutor
Jennifer Wyatl
Human Relations
Kaye Crawford
Fire Suppression
EMS
Codes/Inspection
Public Education
City Clerk
Accounting
Utility Accounting
Treasurer
Museum
Arts Education
Arts Services
River Festival
Horizons Grants Program
Community Art & Design
. Contract Position
Patrol
Investigations
9 I lICommunications
Internal Affairs
Swimming Pools
Golf Course
Neighborhood Centers
Parks
Recreation
Forestry
Cemetery
Building Maintenance
City of Salina, Kansas
List of Principal Officials
City Commission
Monte Shadwick, Mayor
Deborah P. Divine, Vice Mayor
Alan E. Jilka, Commissioner
Donnie D. Marrs, Commissioner
Paul G. Webb, Commissioner
City Staff
Dennis M. Kissinger, City Manager
Michael Morgan, Deputy City Manager
Rodney Franz, Director of Finance and Administration
Jim Hill, Chief of Police
Darrell Easton, Fire Chief
Shawn O'Leary, Director of Public Works
Keith Rawlings, Bicentennial Center Manager
Steve Snyder, Parks and Recreation Director
Dean Andrew, Planning and Community Development Director
John Highkin, Director of Arts and Humanities
Kaye Crawford, Human Relations Director
Jack Rolfs, Director of Computer Technology
Greg Bengston, City Attorney
viii
FINANCIAL SECTION
LOWENTHAL SINGLETON WEBB & WILSON
PROFESSIONAL ASSOCIATION
David A. Lowenthal, CPA
Thomas E. Singleton, CPA
Patricia L. Webb, CPA
Thomas G. Wilson, CPA
Audrey M. Odennann, CPA
CERTIFIED PUBLIC ACCOUNTANTS
900 Massachusetts, Suite 301
Lawrence, Kansas 66044-2868
Phone: (785) 749-5050
Fax: (785) 749-5061
E-mail: Iswwcpa@lswwcpa.com
Paul M. Borchardt, CPA
Grant A. Huddin, CPA
Mary A. LeGresley, CPA
Members of American Institute
and Kansas Society of
Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
ON THE BASIC FINANCIAL STATEMENTS
Mayor and City Commissioners
City of Salina, Kansas
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, 2003, which collectively
comprise the City's basic financial statements as listed in the table of contents. These financial statements are the
responsibility of the City's management. Our responsibility is to express opinions on these financial statements
based on our audit. We did not audit the financial statements of the Salina Airport Authority which statements reflect
total assets of $28,630,896 as of December 31, 2003 and total revenues of $2,938,670 for the year then ended, and
the Housing Authority of the City of Salina which statements reflect total assets of $7,330,972 as of June 30, 2003
and total revenues of $2,070,258 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.
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; and the "Kansas Municipal Audit Guide." Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the basic financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall basic financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, based on our audit and the report 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, at December 31, 2003, and the respective changes in financial
position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles
generally accepted in the United States of America.
As described in Note 3, the City has implemented a new financial reporting model, as required by the provisions of
GASB Statement No. 34, Basic Financial Statements-and Management's Discussion and Analysis-for State and
Local Governments, as of December 31, 2003.
In accordance with "Government Auditing Standards," we have also issued a report dated May 14, 2004, 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 grants. That report is an integral part of an audit performed in
accordance with "Government Auditing Standards" and should be read in conjunction with this report in considering
the results of our audit.
The management's discussion and analysis on pages 3 through 14 are not a required part of the basic financial
statements but are supplementary information required by accounting principles generally accepted in the United
States of America. We have applied certain limited procedures, which consisted principally of inquiries of
management regarding the methods of measurement and presentation of the required supplementary information.
However, we did not audit the information and express no opinion on it.
Our audit was made for the purpose of forming opinions on the financial statements that collectively comprise the
City's basic financial statements. The introductory section, combining and individual nonmajor fund financial
statements, and statistical tables as listed in the table of contents are presented for purposes of additional analysis
and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial
statements have been subjected to the auditing procedures applied in our audit of the basic financial statements
and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a
whole. We did not audit the data included in the introductory and statistical sections of this report and therefore, we
express no opinion thereon.
d~/.k~J ~OI-~
Professional Association
May 14, 2004
2
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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 31,2003. 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
. Net Assets increased by $1,036,587
. Completed a major re-inventory and re-valuation of City assets.
. Faced revenue challenges, including a decline in Sales Tax revenues, and the loss of State
Demand Transfers
. Health Insurance costs increase substantially
. Implemented cost reduction programs for operating capital, salaries, and other operating expenses
. On the whole, fund balances maintained at a relatively stable level
. In a subsequent event, the voters approved the extension of a .25% sales tax for 6 years, purposed
for Capital Investment, Tax stabilization, Economic Development and Human Services.
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 Assets reports all of the City's assets and liabilities. Net assets, the difference
between assets and liabilities, are an important measure of the City's overall financial health. Net
assets represent the total accumulated and unused resources available to the City for the purpose of
providing services. Over time, the increases and decreases in net assets can be monitored to
determine if the City's financial position is improving or deteriorating.
The Statement of Activities shows how the net assets have 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, 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. Note 1, item A in the Notes to the
Financial Statements provide a more complete explanation of the relationship between these entities
and the City of Salina.
3
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 Disposal, Solid Waste, 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 five internal service funds. Three of these are for self-insurance activity: Risk Management,
Workers Compensation Reserve, and Health Insurance. The remaining two account for our Information
Services activity and 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 are
no net assets. The City of Salina operates seven 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.
Other Information
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
Because this is the first year to report government-wide activities on an accrual basis, comparison to
prior year results is not possible for all data. In subsequent years, this section will identify, discuss, and
4
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 it's operations. Each of these
revenue streams has a different revenue base. In declining order of magnitude, they are charges for
service, sales taxes, and property taxes. Sales taxes and property taxes apply primarily to
Governmental Activities, while charges for services apply to both Governmental (32%) and Business-
type (68%) activities
Charqes for Services account for about 48% ($25,485,528) of the City's revenue stream. Charges for
Service depend on both the rate that is set for the activity, as well as the volume of services provided.
The following table illustrates service volume and rate adjustments for some of the more significant
services for the year ending December 31, 2003.
Description
Monthly Ave Water Accounts Billed
Water Metered (In Billion Gallons)
Sanitation Customers
Golf Rounds (18 Hole)
Golf Rounds (Par 3)
Golf Annual Memberships
Solid Waste Tonnage
Building Permits Issued
Building Permit Value ($ Millions)
2002
Volume
19,304
2.277
13,817
40,530
6,620
289
82,788
776
62 $
$
2003
Volume
19,366
2.101
13,954
38,485
5,823
293
88,393
668
46
Change Rate Comments
62 No change in Water
-0.176 or Sewer Rates.
137 Rate increase by 2%
(2,045)
(797) No change to Golf fees
4
5,605 No Change
(108) No Change
$ (16)
Golf activity shows a significant decline (6%) in rounds, while annual memberships increased slightly.
Solid Waste tonnage shows a significant increase (6.8%), due to the implementation of a disposal
contract with the McPherson County Solid Waste Authority.
Sales taxes are the next largest component of the revenue mix, providing 22% ($12,026,714) of the
total revenues. The City receives a .75% City-wide sales tax, and also a portion of the County-wide 1 %
sales tax. One-third (.25%) of the City-wide sales tax is required to be used for educational technology.
The remaining .5% along with the City portion of the Countywide tax is available for general purposes.
Total revenue from the sales tax in 2003 was $12,026,714, down from $12,257,819 in 2002. This
represents a reduction of 1.9%.
Three factors affected the sales tax in 2003. First was the general economic downturn, which has
affected communities nationwide. It is clear that the level of taxable retail sales declined as a result of
general economic conditions.
Second, effective July 1, 2003 legislation extended the compensating use tax to local governments.
The use tax is a component of the sales tax that applies to purchases made from out-of-state retailers.
Based on currently known facts, the addition of the use tax will result in a one-time growth in the tax
base of about 5%.
Finally, the City was adversely 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. Because
the portion of the overlapping levy attributable to the City of Salina was reduced for 2003, the City's
allocated portion of the County-wide sales tax was reduced from 64.1 % in 2002 to 62.9% in 2003. This
is equivalent to a reduction of approximately $104,000 in revenue from 2002 to 2003.
The .25% sales tax dedicated to education technology is scheduled to sunset June 30, 2004. In a
subsequent event, on March 16, 2004, Salina voters approved the extension of the .25% tax purposed
5
for Capital Investment, Economic Development, Human Services, and Tax Stabilization. The extended
tax is to sunset June 30,2010. The tax will produce, at 2003 levels, about $2,000,000 per year.
Propertv Taxes are the third major component of the revenue mix, accounting for 16% ($8,802,558) of
total revenues. Property taxes consist of two components: Real estate and personal property taxes
which are determined by the mill levy set by the city and the assessed value of the property; and motor
vehicle taxes, which are established by a countywide average tax rate, and the assessed value of the
vehicle.
The table below summarizes the comparative property assessed values and tax levy rates:
2003 2002 Change
Real Estate and Personal Property Assessed
Valuation 328,593,726 317,134,605 11,459,121
City Mill Levy ($ per $1,000)
Operating (General Fund, Employee
Benefits, Flood and Drainage Fund) 18.581 18.561 0.020
Debt Service Millage 5.511 5.657 (0.146)
Total City Levy Rate 24.092 24.218 (0.126)
Total Overlapping Levy 116.817 125.792 (8.975)
Percent of Current Taxes Collected 97.1% 97.5% -0.4%
Ratio of Total Taxes (including delinquent tax
collections) to Taxes Levied 99.4% 99.9% -0.5%
Motor Vehicle Valuation 46,679,292 45,965,839 713,453
County Wide Average Vehicle Tax Rate ($ per
$1,000) 90.949 80.820 10.129
* Detailed Information on the overlapping levy is available in Statistical Table 7, on page 100.
Real estate and personal property assessed value grew by 3.6%. The total City mill levy was reduced
by .5%., while the overlapping levy was reduced by nearly 9%. The reduction in the overlapping levy
was due to Unified School District 305 (10.794 mills) and the City of Salina (.126 mills). Other
jurisdictions had mill levy increases. Tax delinquency increased slightly, but is still at relatively low
levels.
Motor Vehicle value increased by $713,453 (1.55%), while the rate applied for motor vehicles increased
by 10.129 mills (12.5%). Motor vehicle taxes are distributed based on a formula using prior years tax
effort (similar to the Countywide Sales Tax Distribution).
The unemployment rate in Saline County increased slightly from 3.6% in 2002 to 4.0% in 2003,
reflecting general economic conditions. This is still below the statewide and national unemployment
rate. The total labor force increased slightly.
In 2003, the top ten property taxpayers accounted for 11.3% of total assessed value. This is slightly
more concentrated than last year (at 11.2%) but slightly less concentrated that 1994 (13.1 %).
6
Statement of Net Assets
Net assets may, over time, provide an indicator of a government's financial position. In the case of the
City of Salina, net assets exceeded liabilities by $143,946,529 at December 31,2003.
The largest segment of the City's net assets (83%) 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 can not come from liquidation of the asset. Such
resources generally must be provided from other sources, such as future taxes or user charges.
A condensed version of the Statement of Net Assets at December 31, 2003 follows:
Governmental Business Type Total Primary
Activities Activities Government Percentage
Cash and Investments $ 15,106,699 $ 12,118,624 $ 27,225,323 14%
Other Current Assets $ 1,989,001 $ 2,415,903 $ 4,404,904 2%
Noncurrent (Capital) Assets $ 107,366,408 $ 58,658,292 $ 166,024,700 84%
Total Assets $ 124,428,685 $ 73,192,819 $ 197,654,927 100%
Current Liabilities $ 3,988,773 $ 2,365,996 $ 6,354,769 12%
Long-Term Liabilities $ 24,835,079 $ 22,518,550 $ 47,353,629 88%
Total Liabilities $ 28,823,852 $ 24,884,546 $ 53,708,373 100%
Net Assets:
I nvested in capital assets,
net of related debt $ 82,312,099 $ 36,598,724 $ 118,910,823 83%
Restricted for Debt Service $ 1,584,330 $ $ 1,584,330 1%
Unrestricted $ 11 ,741 ,827 $ 11,709,549 $ 23,451,376 16%
Total Net Assets $ 95,638,256 $ 48,308,273 $ 143,946,529 100%
Percent of Total Assets 66% 34% 100%
Quick Ratio 3.79 5.12 4.28
A small portion of net assets (1 %) is restricted for debt service. The remainder of net assets (16%) may
be used to meet the City's obligations to citizens and creditors.
The quick ratio indicates that the City has enough liquidity to retire current liabilities approximately 4
times.
During the year ended December 31, 2003, there were several significant events that changed the
balance of net assets.
Governmental Activities. During 2003, the City of Salina performed a comprehensive re-inventory and
re-valuation of capital assets, including general government infrastructure that had not been previously
reported. In addition, capitalization policies were changed, and the estimated useful lives of various
classes of assets were evaluated and adjusted. The result was an increase (after depreciation) in
reported Governmental Activity fixed assets of $72,906,546. The largest portion of this increase was in
infrastructure assets.
Business-type Activities: Likewise, the re-inventory of capital assets resulted in changes to the capital
assets in business-type activities, although lesser in magnitude than in the Governmental activities.
The value (net of depreciation) of assets associated with business type activities decreased by
$2,249,451.
7
Statement of Activities
A condensed statement of activities is shown below. As with the Statement of Net Assets, in future
years this will show a comparison to prior years.
Governmental B usiness- Type Total Primary Percent of
Activities Activities Government Total
Program Revenues:
Charges for Services $ 8,427,241 $ 17,058,287 $ 25,485,528 46%
Operating Grants and Contributions $ 2,751,185 $ 2,751,185 5%
General Revenues: $ 0%
Property Taxes $ 8,802,558 $ 8,802,558 16%
Sales Taxes $ 12,026,714 $ 12,026,714 22%
Other Taxes $ 3,344,866 $ 3,344,866 6%
Special Assessments $ 1,447,699 $ 1,447,699 3%
Investm ent Revenue $ 331,161 $ 100,963 $ 432,124 1%
Other Miscellaneous $ 1,442,364 $ 165,120 $ 1,607,484 3%
Transfers (net) $ 79,661 $ (79,661) $ 0%
Total Revenues: $ 38,653,449 $ 17,244,709 $ 55,898,158 100%
Expenses:
General Government $ 6,766,884 $ 6,766,884 12%
Public Safety $ 12,636,082 $ 12,636,082 23%
Public Works $ 7,895,823 $ 7,895,823 14%
Public Health and Sanitation $ 905,985 $ 905,985 2%
Culture and Recreation $ 4,657,241 $ 4,657,241 8%
Planning and Development $ 4,507,430 $ 4,507,430 8%
Solid Waste Disposal $ 2,366,654 $ 2,366,654 4%
Water and Sewer $ 11,571,751 $ 11,571,751 21%
Sanitation $ 1,682,352 $ 1,682,352 3%
Golf Course $ 786,305 $ 786,305 1%
Interest on Long Term Debt $ 1,085,064 $ 1,085,064 2%
Total Expenses $ 38,454,509 $ 16,407,062 $ 54,861,571 100%
Increase in Net Assets $ 198,940 $ 837,647 $ 1,036,587
Net Assets, January 1 $ 96,461,550 $ 487,867,029 $ 142,228,579
Prior Period Adjustment $ (1,022,234) $ (1,296,403) $ (2,318,637)
Net Assets, January 1, restated $ 95,439,316 $ 47,470,626 $ 142,909,942
Net Assets December 31 $ 95,604,858 $ 48,308,273 $ 143,913,131
Governmental Activities. Total expenses for Governmental Activities for the year ending December 31,
2003 were $38,454,509
(70% of the City's total
expenses). The largest
element of Governmental
Activity expense was
Public Safety, followed by
Public Works and General
Government expense.
General Government
includes all those
activities that do not
clearly fit into another
class, including general
activities such as City
Management or Finance,
as well as internal
services that the City
provides to itself.
3%
Governmental Activity Expenses
12%
12%
2%
o General
Government
o Public safety
. Public Works
EI Public Health &
Sanitation
. Culture/Recreation
lID Planning and
Development
. Interest
8
Charges for service attributable to Governmental Activities totaled $8,427,241, while operating Grants
for those purposes were $2,751,185. The balance of $27,475,023 was funded by general revenues.
Sales taxes accounted for $12,026,714 of the general revenues, with property taxes providing
$8,802,558. Net assets increased b $198,940 as a result of Governmental Activities.
Governmental Activity Source of Funds
4% 5%
7%
IffiI Charges for
Services
. Operating Grants
DSales Tax
D Property Tax
[J Other Taxes
. Special Assesments
. Other General
Revenues
Business Tvpe Activities. Total expenses for Business-type Activities for the year were $16,407,062, or
30% of the City's total expense.. The majority of this expense ($11,571,751 is attributable to Water and
Sewer operations, with the other activities (Solid Waste Disposal, Sanitation, and Golf Course) costing a
combined total of $ 4,835,311. These activities are primarily supported by user charges, with $186,422
coming from general revenues. Net assets increased by $837,647 as a result of Business-type Activity
operations.
Business-Type Activity Expense
5%
9
III Solid Waste
. Water & Sewer
o Sanitation
o Golf course
Fund Financial Analysis
Governmental Funds
Fund Balances:
The table below shows the Governmental Fund balances for major funds for the years ended December
31, 2002 and December 31, 2003.
Fund 2003 2002 Change
General $ 6,775,543 $ 7,017,910 $ (242,367)
Employee Benefits $ 364,888 $ 612,678 $ (247,790)
Flood and Drainage $ 372,333 $ 248,664 $ 123,669
Tourism and Convention $ 249,156 $ 203,644 $ 45,512
Special Gas $ 1,542,222 $ 1,272,682 $ 269,540
Bicentennial Center $ 241 ,482 $ 284,498 $ (43,016)
Debt Service $ 1,584,330 $ 1,000,030 $ 584,300
Capital Projects $ 2,066,811 $ 494,647 $ 1,572,164
Other Governmental Funds $ 1,202,647 $ 1,161,959 $ 40,688
Total $ 14,399,412 $ 12,296,712 $ 2,102,700
Total Governmental Fund balances increased by $2,102,700. The majority of this increase is
attributable to the Capital Projects fund, resulting from the sale of temporary notes during 2003. The
significant increase in the Debt Service Fund resulted from an unanticipated reimbursement from the
State of Kansas on final audit of a project completed in a prior year.
The General Fund balance decreased by $242,367. This is a result of a combination of factors,
including the loss of $649,974 in intergovernmental aid from the State of Kansas and a reduction in
Sales Tax collections of
$231,105. These
revenue losses were
offset by a reduction in
expenditures and other
financing uses
($708,022), and by the
implementation of a host
fee assessed to City
Solid Waste activities.
Governmental Fund Balances
8000
7000
112003
6000
5000
. 2002
o
The Employee Benefits
fund also experienced a
decline in fund balance,
due to increased costs
related to the Employee
Health plan. The rapid
growth in this area will
continue to provide
funding challenges.
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3000
2000
1000
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10
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, 2002 and 2003.
Fund 2003 2002 Change
Revenues (Including Other Financing Sources)
General $ 22,848,559 $ 23,305,347 $ (456,788)
Employee Benefits $ 3,675,967 $ 3,255,040 $ 420,927
Flood and Drainage Improvement $ 367,788 $ 330,105 $ 37,683
Tourism and Convention $ 820,512 $ 769,765 $ 50,747
Special Gas $ 1,579,637 $ 1,529,517 $ 50,120
Bicentennial Center $ 1,269,348 $ 1,337,074 $ (67,726)
Debt Service $ 3,764,081 $ 3,262,032 $ 502,049
Capital Projects $ 9,483,879 $ 5,935,708 $ 3,548,171
Other Governmental Funds* $ 1,481,055 $ 1,794,375 $ (313,320)
Total Revenues $ 45,290,826 $ 41,518,963 $ 3,771,863
Net of Capital Projects Fund $ 35,806,947 $ 35,583,255 $ 223,692
Expenditures (Including Other Financing Uses)
General $ 23,090,201 $ 23,758,562 $ (668,361)
Em ployee Benefits $ 3,923,757 $ 3,400,676 $ 523,081
Flood and Drainage Improvement $ 244,119 $ 357,205 $ (113,086)
Tourism and Convention $ 775,000 $ 767,728 $ 7,272
Special Gas $ 1,310,097 $ 1,573,170 $ (263,073)
Bicentennial Center $ 1,312,364 $ 1,430,599 $ (118,235)
Debt Service $ 3,179,781 $ 3,218,646 $ (38,865)
Capital Projects $ 7,915,766 $ 4,671,629 $ 3,244,137
Other Governmental Funds* $ 1,429,018 $ 1,349,674 $ 79,344
Total Expenditures $ 43,180,103 $ 40,527,889 $ 2,652,214
Net of Capital Projects Fund $ 35,264,337 $ 35,856,260 $ (591,923)
*Excludes Permanent Funds due to a change in basis.
Total revenues and other sources increase substantially from 2002 to 2003. However, the majority of
this increase is in the Capital Projects funds, due to Bond and Note proceeds. When those effects are
netted, the actual increase in revenues and other sources is $223,692, approximately .6%. Significant
increases include the Employee Benefits fund (due to a shift in the property tax rate from the Debt
Service fund), and in the Debt Service Fund (due to a reimbursement from the State of Kansas).
General Fund revenues show a marked decline (2%) due to, as previously noted, a reduction in State
Demand Transfers, and a slight reduction in Sales Tax revenues.
Total expenditures and other uses also show a substantial increase, entirely due to the Capital Projects
Fund. Net of the Capital Projects Fund, expenditures decreased by $591,923, with the General Fund
decreasing by $668,361, due in part to reductions in capital costs, as well as cost saving measures in
other operating items. Expenditures in the Employee Benefits fund increased substantially, largely due
to employee health plan costs. Health coverage rates were increased in February, and again in April to
stabilize the plan. The sole revenue sources for the Employee Benefits fund is the property tax and
related items. The increasing costs in this area will require, ultimately, more property tax for this fund.
Savings in the Special Gas and Flood and Drainage funds were due to contracted project expense
savings.
11
Proprietary Funds
The City of Salina operates four Enterprise Funds as well as five Internal Service Funds.
A summarized comparative Statement of Net Assets follows for each Enterprise Fund:
Solid Waste Water and
Disposal Sewer Sanitation Golf Course
Current Assets $ 3,263,130 $ 10,421,368 $ 706,701 $ 143,328
Fixed Assets $ 7,148,280 $ 53,776,625 $ 442,703 $ 553,814
Total Assets $ 10,411,410 $ 64,197,993 $ 1,149,404 $ 697,142
Current Liabilities $ 188,721 $ 2,155,004 $ 305 $ 21 ,966
Noncurrent Liabilities $ 4,259,019 $ 18,013,936 $ 139,774 $ 105,821
Total Liabilities $ 4,447,740 $ 20,168,940 $ 140,079 $ 127,787
Net Assets Invested in Capital $ 3,740,247 $ 34,455,913 $ 442,703 $ 493,833
Restricted Net Assets $ 1,111,052
Unrestricted Net Assets $ (1,039,707) $ 8,462,088 $ 566,622 $ 75,522
Total Net Assets $ 2,700,540 $ 44,029,053 $ 1,009,325 $ 569,355
Current Ratio 17.3 4.8 2317.1 6.5
The Solid Waste fund has a deficit in unrestricted net assets. This is due solely to the post-closure care
liability, which is, as of 12/31/2003, $1,600,956. This represents the estimated future cost to care for
the landfill after closure, and is a claim against future revenue streams.
Revenues, Expenses, and Changes in Net Assets
A summary table of revenues, expenses and net assets is shown below. All Enterprise funds had
positive operating income. There is a significant one-time restatement of net assets based on the re-
inventory of assets, and adjustments to the capitalization policy.
Solid Waste Water and
Disposal Sewer
$ 2,401,509 $ 12,216,560
$ 2,255,388 $ 10,682,725
$ 146,121 $ 1,533,835
Operating Revenues
Operating Expenses
Operating Income
Sanitation
$ 1,794,821
$ 1,682,352
$ 112,469
Golf Course
$ 810,717
$ 782,734
$ 27,983
Non-operating revenues (expenses) $ (63,486) $ (843,001 ) $ 6,350 $ (2,763)
Income (Loss) before Transfers $ 82,635 $ 690,834 $ 118,619 $ 25,220
Transfers in (out) $ (40,000) $ (39,961)
Change in Net Assets $ 82,635 $ 650,834 $ 118,619 $ (14,441)
Net Assets, January 1 $ 5,424,812 $ 41,270,730 $ 895,171 $1,176,316
Restatement $ (2,806,907) $ 2,107,489 $ (4,465) $ (592,520)
Net Assets, January 1, restated $ 2,617,905 $ 43,378,219 $ 890,706 $ 583,796
Net Assets, December 31 $ 2,700,540 $ 44,029,053 $ 1,009,325 $ 569,355
The Internal Service funds experienced a reduction in net assets of $369,623. In the case of the Risk
Management, Workers Compensation Reserve, and Health Insurance Funds, this was the result of
experience somewhat more adverse than had been the case in prior years. The Health Insurance Fund
has a deficit net assets, once again reflecting on the high level of claims against the fund. In
12
subsequent events, contribution rates for the fund have been increased, and plan design modified
(higher deductibles, reduced benefits) to reduce exposure of the fund to continued adverse experience.
Budgetary Highlights
The objective of budgetary controls is to ensure compliance with legal provisions embodied in the
annual appropriated budget approved by the City Commission. The legal level of budgetary control is
maintained at the Fund level, in accordance with State Statutes. Management control is maintained at
the departmental level. Within the departments, considerable discretion is permitted. The City uses an
encumbrance accounting system, in which estimated purchase orders are recorded prior to the release
of purchase orders to vendors. Open purchase orders are reported as reservations of budgetary basis
fund balances at December 31,2003. 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. In addition, budget may 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.
The City experienced a number of significant variances from budgeted items. Most notably, Sales taxes
fell short of budget. In addition, in the General Fund, operating grants were significantly ($833,637)
short of budget. This was the result of the State of Kansas eliminating those shared resources.
Budgetary basis year end cash balances exceeded original budget in the General Fund.
Capital Assets and Debt Administration
Capital Assets
The total amount invested in Capital Assets for the City at December 31, 2003 was $166,024,700, net of
accumulated depreciation.
The following table illustrates the Capital Asset balance by various classes of assets at December 31,
2003:
Equipment, Furniture and Fixtures
Vehicles
Buildings and Improvements
Land
Infrastructure
Construction in Progress
Total
Governmental
Activity
$ 1,384,253
$ 1,687,587
$ 10,494,698
$ 12,680,134
$ 75,608,111
$ 5,511,625
$ 107,366,408
Additions to capital assets may be summarized as follows:
Additions
Depreciation Applied
Net Additions
Governmental
Activity
4,170,655 $
3,630,026 $
540,629 $
$
$
$
Business-type
Activity
$ 1,929,246
$ 669,441
$ 15,423,447
$ 3,552
$ 32,415,834
$ 8,216,772
$ 58,658,292
Total
$ 3,313,499
$ 2,357,028
$ 25,918,145
$ 12,683,686
$ 108,023,945
$ 13,728,397
$ 166,024,700
Business-Type
Activity
6,991,041
1,849,724
5,141,317
Total
$ 11,161,696
$ 5,479,750
$ 5,681,946
Additional information on the City's capital assets can be found in Note 4,D. of the notes to the basic
financial statements.
13
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 at 12/31/2003 totaled $25,972,706. Temporary notes
outstanding total $6,783,972. Total General Debt is thus $32,756,678. Of this amount, $13,918,380 is
considered net tax supported debt. Net general bonded debt per capita is thus $302.78
In addition, Business-type activities had $6,215,000 in Revenue Bonds outstanding, as well as
$8,082,199 in loans provided through the Kansas Development Finance Authority. Revenues
generated by user fees are pledged to retire all of the Bonds issued by Business-type activities.
The City engaged in several debt transactions during 2003. One General Obligation Bond issue, Series
2003A was sold in the principal amount of $4,350,000. Moody's rating service extended a rating of A-1
to this issue. This is consistent with prior ratings. In addition, three temporary note series were issued
during the year, totaling $6,783,972.
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,
14
BASIC FINANCIAL STATEMENTS
CITY OF SALINA, KANSAS
STATEMENT OF NET ASSETS
December 31, 2003
Primary Government Component Units
Total Total Total Salina Salina
Governmental Business-type Primary Housing Airport
Activities Activities Government Authority Authority
ASSETS
Current assets:
Cash and investments $ 15,106,699 $ 12,118,624 $ 27,225,323 $ 837,052 $ 1,383,276
Receivables (net of allowance for uncollectibles)
Accounts 1,285,460 902,206 2,187,666 837 109,996
Taxes 422,922 422,922 1,023,355
Interest 69,274 69,492 138,766 1,127
Notes 18,332 18,332
Mortgages 31,655
Due from other governments 99,205
Inventory 183,968 508,976 692,944
Restricted cash 422,203 422,203 56,665 85,000
Prepaid expenses 8,332
Net investment in financing leases 968,853
Deferred charges 9,045 513,026 522,071 26,643 97,195
Total current assets 17.095.700 14,534.527 31.630.227 1.053.184 3.676.007
Noncurrent assets:
Capital assets 163,767,963 86,130,047 249,898,010 7,703,737 38,243,965
Less: Accumulated depreciation 56,401,555 27,471,755 83,873,310 1,425,949 13,289,076
Total noncurrent assets 107,366,408 58,658,292 166,024,700 6,277,788 24,954,889
Total assets $124,462,108 $ 73,192,819 $197,654,927 $ 7,330,972 $ 28,630,896
Liabilities:
Current liabilities:
Accounts payable $ 414,656 $ 205,619 $ 620,275 $ 26,898 $ 47,769
Retainage payable 43,217 29,600 72,817
Accrued liabilities 621.805 621,805 7,390 104,915
Matured bond principal and interest 21,212 21,212
Accrued interest payable 300,241 268.969 569,210 91,550
Deferred interest - financing leases 53,767
Deposits payable 96,834 96,834 56,737
Deferred revenue 6,152 1,067,414
Due from other governments 22,259
Current portion of capital lease payable 18,850 18,850
Current portion of loans payable 303,766 303,766 53,036
Current portion of special assessment debt 30,886
Current portion of revenue bonds payable 600,000 600,000 75,000
Current portion of general obligation bonds payable 2,568,792 861,208 3,430,000 830,000
Total current liabilities 3.988.773 2.365.996 6.354.769 119.436 2.354.337
Noncurrent liabilities:
Compensated absences 2,368,412 623,000 2,991,412 17,538
Capital lease payable 41 ,150 41 ,150
Temporary notes payable 4,250,000 2,533,972 6,783,972
Loans payable 7,778,433 7,778,433 165,593
Special assessment debt 475,918
Revenue bonds payable 5,615,000 5,615,000 170,000
General obligation bonds payable 18,175,517 4,367,189 22,542,706 5,435,000
Landfill post-closure care liabilities 1,600,956 1,600,956
Total noncurrent liabilities 24,835,079 22,518.550 47,353,629 17,538 6,246,511
Total liabilities 28,823,852 24,884,546 53,708,398 136,974 8,600,848
Net Assets
Invested in capital assets, net of related debt 82,312,099 36,598,724 118,910,823 6,277,788 17,711,718
Restricted for:
Debt service 1,584,330 1,584,330 85,000
Unrestricted 11.741.827 11.709.549 23,451,376 916.210 2.233.330
Total net assets $ 95,638,256 $ 48,308,273 $ 143,946,529 $ 7,193,998 $ 20,030.048
The notes to the basic financial statements are an integral part of this statement.
15
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 District
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 31,2003
Net [Expenses] Revenue and
Changes in Net Assets
Program Revenues Primary Govemment Component Units
Operating Total Total Total Salina Salina
Charges for Grants and Governmental Business-type Primary Housing Airport
Expenses Services Contributions Activities Activities Government Authority Authority
$ 6,766,884 $ 3,471,525 $ $ [3,295,359] $ $ [3,295.359] $ $
12,636,082 2,672,120 879,292 [9,084,670] [9,084,670]
7,895,823 159,988 1,568,955 [6,166,880] [6,166,880]
905,985 141,496 [764,489] [764,489]
4,657,241 2,030,686 141,496 [2,485,059] [2,485,059]
4,507,430 92,922 19,946 [4,394,562] [4,394,562]
1,085,064 [1,085,064] [1,085,064]
38,454,509 8,427,241 2,751,185 [27,276,083] [27,276,083]
2,366,654 2,361,451 [5,203] [5,203]
11,571,751 12,129,440 557,689 557,689
1,682,352 1,794,528 112,176 112,176
786,305 772,868 [13,437] [13,437]
16,407,062 17,058,287 651,225 651.225
$ 54,861,571 $ 25,485,528 $ 2,751,185 [27,276,083] 651,225 [26,624,858]
$ 1,844,327 $ 1,347,969 $ 722,289 $ $ $ $ 225.931 $
2,667,095 1.387,297 434,763 [845,035]
$ 4,511,422 $ 2,735,266 $ 1,157,052 225,931 [845,035]
General Revenues:
Properly taxes levied for
General purposes 5,862,150 5,862,150 987,970
Debt service 1,732,183 1,732,183
Motor vehicle tax
General purposes 1,208,225 1,208,225
Sales tax
General purposes 9,913,121 9,913,121
Selective purposes 2,113,593 2,113,593
Other taxes
General purposes 3,344,866 3,344,866
Special assessments
Debt service 1,315,816 1,315,816
Capital outlay 131,883 131,883
Investment revenues 331,161 100,963 432,124 128.640
Miscellaneous 1,442,364 165,120 1,607,484
Transfers, net 79,661 1796611
Subtotal general revenues 27,475,023 186,422 27,661,445 1,116,610
Change in net assets 198,940 837,647 1,036,587 225,931 271,575
Net assets - beginning 96,461,550 48,767,029 145,228,579 6,970,522 19,758,473
Prior period adjustment [1,022,234] [1,296,403] [2,318,637] [2,455]
Net assets - beginning, restated 95,439,316 47,470,626 142,909,942 6,968,067 19,758,473
Net assets - ending $ 95,638,256 $ 48,308,273 $ 143,946,529 $ 7,193,998 $ 20,030,048
The notes to the basic financial statements are an integral part of this statement.
16
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CITY OF SALINA, KANSAS
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31,2003
Flood & Tourism
Employee Drainage and
General Benefits Improvement Convention
ASSETS
Cash and investments $ 5,820,308 $ 364,888 $ 372,333 $ 56,654
Due from other funds 10,609
Receivables (net)
Accounts 1,059,656 192,196
Taxes 2,119,692 4,130,056 327,511
Interest 31 ,438 306
Notes
Inventory 119,501
Cash with fiscal agent
Total assets $ 9,161,204 $ 4,494,944 $ 699,844 $ 249,156
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ 265,969 $ - $ - $
Retainage payable
Due to other funds
Deferred revenue 2,119,692 4,130,056 327,511
Matured principal and interest
Total liabilities 2,385,661 4,130,056 327,511
Fund balance:
Reserved for encumbrances 308,721 25,954
Reserved for notes receivable
Reserved for debt service
Unreserved, undesignated
General fund 6,466,822
Special revenue funds 364,888 346,379 249,156
Permanent funds
Capital project funds
Total fund balances 6,775,543 364,888 372,333 249,156
Total liabilities and fund balance $ 9,161,204 $ 4,494,944 $ 699,844 $ 249,156
Other Total
Special Bicentennial Debt Capital Governmental Governmental
Gas Center Service Projects Funds Funds
$ 1,121,439 $ 247,111 $ 1,575,834 $ 2,115,301 $ 1,199,214 $ 12,873,082
10,609
9,645 23,963 1,285,460
422,922 1,313,128 8,313,309
6,047 1,332 8,496 3,837 5,890 57,346
18,332 18,332
119,501
21,212 21,212
$ 1 ,550,408 $ 258,088 $ 2,918,670 $ 2,119,138 $ 1,247,399 $ 22,698,851
$ 8,186 $ 16,606 $ - $ 9,110 $ 34,143 $ 334,014
43,217 43,217
10,609 10,609
1,313,128 7,890,387
21,212 21,212
8,186 16,606 1,334,340 52,327 44,752 8,299,439
368,893 98,340 801,908
18,332 18,332
1,584,330 1,584,330
6,466,822
1,173,329 241,482 869,125 3,244,359
315,190 315,190
1,968,471 1,968,471
1,542,222 241 ,482 1,584,330 2,066,811 1,202,647 14,399,412
$ 1,550,408 $ 258,088 $ 2,918,670 $ 2,119,138 $ 1,247,399 $ 22,698,851
The notes to the basic financial statements are an integral part of this statement.
17
CITY OF SALINA, KANSAS
RECONCILIATION OF THE TOTAL GOVERNMENTAL FUND BALANCES TO
NET ASSETS OF GOVERNMENTAL ACTIVITIES
December 31, 2003
Total Governmental Fund Balances
$ 14,399,412
Amounts reported for governmental activities in the
statement of net assets are different because
Bond issuance costs are shown as current year expenditures in the funds.
Bond issuance costs
9,045
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
163,185,644
56,000,824 107,184,820
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.
1,727,959
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
Bonds payable
Temporary notes payable
Capital lease payable
Accrued interest on the bonds
2,328,430
20,744,309
4,250,000
60,000
300,241 [27,682,980]
Net Assets of Governmental Activities
$ 95,638,256
The notes to the basic financial statements are an integral part of this statement.
18
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CITY OF SALINA, KANSAS
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2003
Flood & Tourism
Employee Drainage and
General Benefits Improvement Convention
REVENUES:
Taxes
Real estate taxes $ 2,299,570 $ 3,120,809 $ 305,420 $
Delinquent taxes 56,364 72,772 7,215
Motor vehicle taxes 399,871 480,574 49,497
General sales taxes 9,913,121
Selective sales taxes 2,113,593
Other taxes 2,524,906 819,960
I ntergovern mental 811,366
Special assessments
Licenses and permits
Charges for services 4,461,973 5,656
Investment revenue 52,115 552
Reimbursements 1,812
Miscellaneous 176,019
Total revenues 22,808,898 3,675,967 367,788 820,512
EXPENDITURES:
Current
General government 2,002,037 205,734
Public safety 9,790,336 2,417,833
Public works 3,919,768 721,484 137,845
Public health and sanitation 727,698 22,924
Culture and recreation 1,880,441 428,316
Planning and development 3,567,066 127,466 465,000
Miscellaneous
Capital outlay 912,855 106,274
Debt service
Principal retirement
Interest and other charges
Total expenditures 22,800,201 3,923,757 244,119 465,000
Excess [deficiency] of revenue and other sources
over [under] expenditures and other [uses] 8,697 [247,790] 123,669 355,512
OTHER FINANCING SOURCES [USES]
Bond proceeds
Sale of temporary note
Transfers in 39,661
Transfers [out] [290,000] [310,000]
Bond issuance costs
Total other financing sources [uses] [250,339] [310,000]
Net change in fund balance [241,642] [247,790] 123,669 45,512
Fund balance - Beginning of year 7,017,910 612,678 248,664 203,644
Prior period adjustment [725]
Fund balance - Beginning of year, restated 7,017,185 612,678 248,664 203,644
Fund balance - End of year $ 6,775,543 $ 364,888 $ 372,333 $ 249,156
Other Total
Special Bicentennial Debt Capital Governmental Governmental
Gas Center Service Proiects Funds Funds
$ - $ - $ 1,691,628 $ - $ - $ 7,417,427
40,555 176,906
278,283 1,208,225
9,913,121
2,113,593
3,344,866
1,568,955 350,918 2,731,239
1,315,816 131,883 1,447,699
19,946 19,946
834,121 843,953 6,145,703
10,682 36,855 221 ,462 321,666
50,466 52,278
227 400,944 576,530 54,050 1,207,770
1,579,637 834,348 3,764,081 758,879 1,490,329 36,100,439
2,207,771
12,208,169
327,191 5,106,288
131,584 882,206
1,302,623 743,938 4,355,318
245,272 4,404,804
19,898 19,898
982,906 9,741 2,844,829 308,224 5,164,829
2,313,833 4,865,000 7,178,833
865,948 196,892 1,062,840
1,310,097 1,312,364 3,179,781 7,906,721 1,448,916 42,590,956
269,540 [478,016] 584,300 [7,147,842] 41,413 [6,490,517]
4,350,000 4,350,000
4,250,000 4,250,000
435,000 125,000 599,661
[600,000]
[9,045] [9,045]
435,000 8,715,955 8,590,616
269,540 [43,016] 584,300 1,568,113 41,413 2,100,099
1,272,682 284,498 1,000,030 494,647 1,161,959 12,296,712
4,051 [725] 2,601
1,272,682 284,498 1,000,030 498,698 1,161,234 12,299,313
$ 1,542,222 $ 241,482 $ 1,584,330 $ 2,066,811 $ 1,202,647 $ 14,399,412
The notes to the basic financial statements are an integral part of this statement.
19
CITY OF SALINA, KANSAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES WITH THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2003
Total Net Change In Fund Balances - Governmental Funds
$ 2,100,099
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 assets 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.
Capital outlays
Depreciation expense
3,584,800
[3,535,328]
49,472
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 increased.
[22,224]
An internal service fund is used by the city's management to charge the
costs of certain activities to the individual funds. The revenues and expenses
of certain internal service fund is reported with governmental activities.
[369,623]
Some expenses reported in the statement of activities, such as compensated
absences, do not require the use of current financial resources and therefore
are not reported as expenditures in governmental funds.
[146,709]
Bond proceeds are an other financing source in the governmental funds, but it
increases long-term liabilities in the statement of net assets and does not
affect the statement of activities
[8,600,000]
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 assets and does not affect the statement of activities.
7,187,925
Changes In Net Assets of Governmental Activities
$ 198,940
The notes to the basic financial statements are an integral part of this statement.
20
CITY OF SALINA, KANSAS
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
December 31, 2003
Business-Type Activities:
Enterprise Funds
Total Internal
Solid Waste Water and Enterprise Service
ASSETS Disposal Sewer Sanitation Golf Course Funds Funds
Current assets:
Cash and investments $ 3,085,782 $ 8,305,979 $ 608,851 $ 118,012 $ 12,118,624 $2,212,405
Receivables (net of allowance for uncollectibles)
Accounts 149,679 657,959 94,568 902,206
Interest 23,901 41,673 3,282 636 69,492 11,928
Inventory and prepaid supplies 484,296 24,680 508,976 64,467
Restricted cash and investments 422,203 422,203
Deferred charges 3,768 509,258 513,026
Total current assets 3,263,130 10,421,368 706,701 143,328 14,534,527 2,288,800
Fixed assets:
Construction in progress 2,029,271 6,187,501 8,216,772
Fixed assets 3,139,490 72,864,067 971,089 938,629 77,913,275 582,319
Less: accumulated depreciation 1,283,611 25,274,943 528,386 384,815 27,471,755 400,731
Total fixed assets 3,885,150 53,776,625 442,703 553,814 58,658,292 181,588
Total assets $ 7,148,280 $ 64,197,993 $ 1,149,404 $ 697,142 $ 73,192,819 $ 2,470,388
Liabilities:
Current liabilities (payable from current assets):
Accounts payable $ 108,931 $ 90,660 $ 305 $ 5,723 $ 205,619 $ 80,642
Retainage payable 4,222 25,378 29,600
Interest payable 3,095 264,646 1,228 268,969
Meter deposits payable 96,834 96,834
Deferred revenue
Total current liabilities (payable from current assets) 116,248 477,518 305 6,951 601,022 80,642
Current liabilities
Current portion of loans payable 303,766 303,766
Current portion of general obligation bonds payable 72,473 773,720 15,015 861,208
Current portion of revenue bonds payable 600,000 600,000
Total current liabilities 72,473 1,677,486 15,015 1,764,974
Noncurrent liabilities:
Compensated absences payable 51,661 370,710 139,774 60,855 623,000 39,982
Accrued claims payable 621,805
Payable from restricted assets
Loans payable 7,778,433 7,778,433
General obligation bonds payable 72,430 4,249,793 44,966 4,367,189
Revenue bonds payable 5,615,000 5,615,000
Temporary notes payable 2,533,972 2,533,972
Landfill post-closure care liabilities 1,600,956 1,600,956
Total noncurrent liabilities 4,259,019 18,013,936 139,774 105,821 22,518,550 661,787
Total liabilities 4,447,740 20,168,940 140,079 127,787 24,884,546 742,429
Net Assets
Invested in capital assets, net of related debt 3,740,247 34,455,913 442,703 493,833 39,132,696 181,588
Restricted
Restricted for bond retirement 1,111,052 1,111,052
Unrestricted [1,039,707] 8,462,088 566,622 75,522 8,064,525 1,546,371
Total net assets $ 2,700,540 $ 44,029,053 $ 1,009,325 $ 569,355 $ 48,308,273 $1,727,959
The notes to the basic financial statements are an integral part of this statement.
21
CITY OF SALINA, KANSAS
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET ASSETS
PROPRIETARY FUNDS
For the Year Ended December 31, 2003
Business-Type Activities:
Enterprise Funds
Total Internal
Solid Waste Water and Enterprise Service
Disposal Sewer Sanitation Golf Course Funds Funds
Operating revenues
Charges for services $ 2,361 ,451 $12,129,440 $1,794,528 $ 772,868 $17,058,287 $ 6,448,770
Reimbursements 1,484 28 4,526 6,038 117,278
Miscellaneous 40,058 85,636 65 33,323 159,082 65,037
Total operating revenues 2,401,509 12,216,560 1,794,621 810,717 17,223,407 6,631,085
Operating expenses
General government 6,995,505
Public works 2,070,896 9,145,564 1,596,558 12,813,018
Recreation 740,457 740,457
Depreciation 184.492 1,537.161 85,794 42,277 1,849,724 94,698
Total operating expenses 2,255,388 10,682,725 1,682,352 782,734 15,403,199 7,090,203
Operating income [loss] 146,121 1,533,835 112,269 27,983 1,820,208 [459,118]
Nonoperating revenues [expenses]
Investment revenue 47,780 46,025 6,350 808 100,963 9,495
Debt service [18,398] [769,500] [3,571] [791,469]
Amortization of bond issuance costs [1,884] [119,526] [121,410]
Gain [loss] on disposal of fixed assets [90,984] [90,984]
Total nonoperating revenues [expenses] [63,486] [843,001 ] 6,350 [2,763] [902,900] 9,495
Income [loss] before operating transfers 82,635 690,834 118,619 25,220 917,308 [449,623]
Transfers from [to] other funds and account groups
Transfers in 80,000
Transfers [out] [40,000] [39,661] [79,661]
Total transfers [40,000] [39,661] [79,661] 80,000
Change in net assets 82,635 650,834 118,619 [14,441] 837,647 [369,623]
Net assets, January 1 5,424,812 41,270,730 895,171 1,176,316 48,767,029 2,139,816
Restatement r2.806.9071 2.107.489 [4,465] [592,520] [1,296,403] [42,234]
Net assets, January 1, restated 2,617,905 43,378,219 890,706 583,796 47,470,626 2,097,582
Net assets, December 31 $2,700,540 $44,029,053 $1,009,325 $ 569,355 $48,308,273 $ 1,727,959
The notes to the basic financial statements are an integral part of this statement.
22
CITY OF SALINA, KANSAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31. 2003
Business-Type Activities:
Enterprise Funds
Total Internal
Solid Waste Water and Enterprise Service
Disposal Sewer Sanitation Golf Course Funds Funds
Cash flows from operating activities
Cash received from customers and users $ 2,368,497 $12.085,148 $1,795,066 $ 772,868 $17,021,579 $ 6,478,358
Cash paid to employees and suppliers of goods or services [1.598,337] [9.586.262] [1,589,264] [744,484] [13,518.347] [7,017,408]
Other operating receipts 40,058 87,120 93 37,849 165,120 182,315
Net cash provided by [used in] operating activities 810,218 2,586,006 205.895 66.233 3,668,352 [356,735]
Cash flows from capital and related financing activities
Purchase and construction of fixed assets [2.567.025] [2.552,984] [104,423] [69,960] [5.294,392] [53,626]
Proceeds from issuance of debt 2,533.972 551.549 3,085,521
Principal payments - general obligation bonds [235.902] [773,720] [21,545] [1.031,167]
Principal payments - revenue bonds [575,000] [575,000]
Interest paid [21,659] [721,527] [3.934] [747.120]
Principal payments - loans payable [216.394] [216.394]
Net cash used in capital and related financing activities [290.614] [4.288.076] [104,423] [95,439] [4.778,552] [53,626]
Cash flows from investing activities
Interest received 66,117 178,201 11,447 3.269 259,034 39,856
Cash flows from non capital financing activities
Transfers in 80,000
Transfers [out] [40,000] [39,661] [79,661]
Net cash provided by [used in] noncapital financing activities [40.000] [39,661] [79.661] 80,000
Net increase [decrease] in cash and cash equivalents 585.721 [1.563,869] 112.919 [65,598] [930,827] [290.505]
Cash and cash equivalents. January 1 2,500,061 10,296,103 495,932 183,610 13,475,706 2.502.910
Prior period adjustment [4,052] [4.052]
Cash and cash equivalents. January 1, restated 2,500,061 10,292,051 495,932 183,610 13,471,654 2,502,910
Cash and cash equivalents, December 31 $ 3,085,782 $ 8,728,182 $ 608,851 $ 118,012 $12,540,827 $ 2,212,405
Cash and investments $ 3.085,782 $ 8,305,979 $ 608,851 $ 118.012 $12,118,624 $ 2,212.405
Restricted cash and investments 422.203 422.203
Total cash and cash equivalents $ 3.085,782 $ 8,728,182 $ 608,851 $ 118,012 $12.540,827 $ 2,212,405
The notes to the basic financial statements are an integral part of this statement.
23
CITY OF SALINA, KANSAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31,2003
Reconciliation of operating [loss] income to net cash
provided by [used in] operating activities
Operating income [loss]
Adjustments to reconcile operating income [loss] to
net cash provided by [used in] operating activities
Depreciation expense
[Increase] decrease in accounts receivable
[Increase] decrease in inventory
Increase [decrease] in accounts payable
Increase [decrease] in retainage payable
Increase [decrease] in accrued compensated absences
Increase [decrease] in claims payable
Increase [decrease] in meter deposits payable
Increase [decrease] in accrued landfill closure
and postclosure care costs
Net cash provided by [used in] operating activities
Business-Type Activities:
Enterprise Funds
Solid Waste
Disposal
Total
Enterprise
Sanitation Golf Course Funds
Water and
Sewer
Internal
Service
Funds
$ 146,121 $1,533,835 $ 112,269 $ 27,983 $1,820,208 $ [459,118]
The notes to the basic financial statements are an integral part of this statement.
24
CITY OF SALINA, KANSAS
STATEMENT OF ASSETS AND LIABILITIES
AGENCY FUNDS
December 31, 2003
ASSETS
Cash and investments $ 221,514
Interest receivable 634
Total assets $ 222,148
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable $ 222,148
Total liabilities $ 222,148
The notes to the basic financial statements are an integral part of this statement.
25
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CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31,2003
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 and 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 to emphasize that it is legally separated
from the government.
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, 2003.
Complete financial statements for each of the individual component units may be obtained at the entity's
administrative offices.
Salina Airport Authority
3237 Arnold Ave.
Salina, KS
Housing Authority of
the City of Salina
469 S. 5th
Salina, KS
Joint Ventures
The City of Salina also participates with Saline County in two joint ventures. The Salina-Saline County Board
of Health was organized by the City and County to promote public health. The 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 ventures. Separate financial statements are available from the governing boards of each joint venture.
Total net assets, December 31, 2003
Total revenues, year ended December 31, 2003
Total revenues from City of Salina
Board of
Health
(Unaudited)
$ 109,838
2,882,496
650,241
Building
Authority
(Audited)
$ 2,592,143
835,583
771,813
26
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2003
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
B. Government-wide and fund financial statements
The statement of net assets 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 and fiduciary fund financial statements.
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.
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.
27
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2003
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
The City applies all applicable Governmental Accounting Standards Board (GAS B) pronouncements as well
as the following pronouncements issued on or before November 30, 1989, unless those pronouncements
conflict with or contradict GASB pronouncements: FASB Statements and Interpretations, APB Opinions, and
ARBs.
Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in net
total assets. 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 fixed assets. All
revenue and expenses not meeting this definition are reported as nonoperating revenues and expenses.
The internal service funds account for operations that provide services to other departments or agencies of
the government, or to other governments, on a cost-reimbursement basis.
Agency funds are custodial in nature and do not measure results of operations or have a measurement
focus. Agency funds do, however, use the accrual basis of accounting.
The City reports the following major governmental funds:
The general fund is used to account for resources traditionally associated with government which are not
required legally or by sound financial management to be accounted for in another fund.
Employee benefit fund - To account for the costs of various benefits provided to governmental employees.
Flood and drainage improvement fund - To account for property tax revenues to be used for capital
improvements to the flood control and stormwater drainage systems.
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.
Bicentennial Center fund - To account for the activities of the City's convention center.
The debt service fund is used to account for the accumulation of resources and payment of general
obligation bond principal and interest from governmental resources and special assessment bond principal
and interest from special assessment levies when the City is obligated in some manner for the payment.
The capital project fund is used to account for the acquisition and construction of major capital facilities other
than those financed by proprietary funds and trust funds.
28
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31,2003
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
The City reports the following major proprietary funds:
Sanitation fund - To account for the operations of the City's refuse collection service.
Solid waste fund - To account for the activities of the City's landfill.
Golf course fund - To account for the operations of the municipal golf course.
Water and sewer fund - To account for the activities of the City's water and sewer operations.
D. Assets, Liabilities and Equity
1. Pooled cash and investments
The City maintains a cash and investment pool that is available for use by all funds managed by the city.
Each fund type's portion of this pool is displayed 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 Pavables
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" (Le., the current portion of interfund
loans) or "advances to/from other funds" (Le., 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 2004. 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.
29
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31,2003
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities and Equity (Continued)
2. Receivables and Pavables (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. Restricted Assets
Certain proceeds of the City's business-type fund revenue bonds, as well as certain resources set aside for
their repayment, are classified as restricted assets on the balance sheet because their use is limited by
applicable bond covenants. The "Water and Sewer Principal and Interest" account is used to segregate
resources accumulated for debt service payments over the next twelve months. The "Debt Service Reserve"
account is used to report resources set aside to make up potential future deficiencies in the "Water and
Sewer Principal and Interest Account".
5. Fixed Assets
Fixed 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.
Fixed 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. Fixed assets used in governmental fund types of the City are recorded at cost
or estimated historical cost if purchased or constructed. Donated fixed assets are recorded at their
estimated fair value at the date of donation.
30
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31,2003
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities, and Equity (Continued)
5. Fixed Assets (Continued)
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 fixed assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of fixed 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
Years
50
5 -15
6 -10
30 -50
6. 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 and
unused leave may accumulate without limit. Employees are paid for all accumulated vacation leave at their
current wage scale upon termination of employment.
Vested or accumulated vacation leave that is expected to be liquidated with expendable available financial
resources is reported as an expenditure and a fund liability in the government fund fund financial statements
that will pay it. 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.
7. 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. Maturity dates for the
Series 2003-2 and 2003-3 temporary notes outstanding extend beyond one year from the year ended
December 31, 2003.
31
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31,2003
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities and Equity (Continued)
8. Lonq-term Obliqations
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 assets. 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.
9. Fund Equitv
In the fund financial statements, governmental funds report reservations of fund balance amounts that are
not appropriable or are legally segregated for a specific purpose. Reservations of business-type net assets
are limited to outside third-party restrictions. Designations of fund balance represent tentative management
plans that are subject to change.
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 st.
2. Publication in local newspaper of the proposed budget and notice of public hearing on the budget on or
before August 5th.
3. Public hearing on or before August 15th, but at least ten days after publication of notice of hearing.
4. Adoption of the final budget on or before August 25th.
The statutes allow for the governing body to increase the originally adopted budget for previously
unbudgeted increases in revenue other than ad valorem property taxes. To do this, a notice of public hearing
to amend the budget must be published in the local newspaper. At least ten days after publication the
hearing may be held and the governing body may amend the budget at that time. The budget was amended,
from $82,000 to $89,914, for the Business Improvement District Fund.
32
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2003
Note 2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued)
A. Budgetary Information (Continued)
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 modified accrual basis of accounting, modified
further by the encumbrance method of accounting. Revenues are recognized when cash is received.
Expenditures include disbursements, accounts payable, and encumbrances. Encumbrances are
commitments by the municipality for future payments and are supported by a document evidencing the
commitment, such as a purchase order or contract. All unencumbered appropriations (legal budget
expenditure authority) lapse at year end.
A legal operating budget is not required for capital projects funds, trust funds, and the following special
revenue funds: Bicentennial Center Event, HUD Community Development, APWA Consortium, Community
Development Revolving, Heritage Commission, CDBG-ED, HOME IV, Special Law Enforcement, Fair
Housing Partnership, Police Grants, Dare Donations, and Large System Interface. A legal operating budget
is not required for the following Enterprise funds: Solid Waste Construction, Water and Sewer Principal and
Interest, Water and Sewer Bond Reserve, Water and Sewer Construction and Reserve funds. A legal
operating budget is also not required for the Internal Service funds. Actual to budget comparisons for these
funds that present budgets to the Commissioners are shown strictly for informational purposes.
Spending in funds which are not subject to the legal annual operating budget requirements are controlled by
federal regulations, other statutes, or by the use of internal spending limits established by the governing
body.
Compliance with Kansas Statutes. References made herein to the statutes are not intended as interpretation
of law, but are offered for consideration by the Director of Accounts and Reports and interpretation by the
County Attorney and legal representatives of the City. Management is not aware of any material violations of
Kansas statutes in the current year.
B. Deficit Fund Equity
The following fund had a deficit fund equity at December 31, 2003: CDBG Ed $[625] and Fair Housing
Partnership $[9,984]. These deficits will be recovered from reimbursements from grantor agencies, or in the
event certain costs are disallowed, from general funds. The Health Insurance fund had deficit fund equity of
$[133,808]. This deficit will be recovered with increased employee health insurance premiums.
33
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2003
Note 2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued)
C. Compliance With Bond Reserve Requirements
Water & Sewer Bond Reserve Requirements
The bond reserve requirement is to establish and maintain a reserve account. The Water & Sewer fund met
this requirement for 2003.
Reserve requirement
$
679,000
Actual reserves
Bond reserve account
Total actual reserves
$
$
688,849
688,849
The City was in compliance with the reserve account balance requirements at December 31, 2003.
D. 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, 2003, the statutory limit for the City was $112,581,905, providing a
debt margin of $81 ,409,557.
Note 3. CHANGES IN ACCOUNTING PRINCIPLES AND RESTATEMENT OF FUND BALANCE
A. Changes in Accounting Principles
For fiscal year ended December 31,2003 the City implemented Governmental Accounting Standards Board
(GASB) Statement No. 34, "Basic Financial Statements - and Management's Discussion and Analysis - for
State and Local Governments". GASB Statement 34 creates a new set of basic financial statements. GASB
Statement 34 requires cities to include government-wide financial statements that are prepared on an accrual
basis of accounting using the economic resources measurement focus. The previous requirement for fund
financial statements is modified to present information for individual major funds rather than by fund type.
Non-major funds are presented as a total in one column. Related GASB Statements 33, 37 and 38 were
also adopted.
34
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2003
Note 3. CHANGES IN ACCOUNTING PRINCIPLES AND RESTATEMENT OF FUND BALANCE (Continued)
B. Restatement of Fund Balance
The transition from governmental fund balances to net assets of the governmental activities and the various
adjustments to enterprise net assets, as well as miscellaneous adjustments to the General Fund, Capital
Projects Fund, Other Governmental Funds and the Internal Service Funds had the following effect on the
beginning balances.
Total
Governmental
Funds
Total
Enterprise
Funds
General
Fund
Capital
Projects
Fund
Other
Governmental
Funds
Internal
Service
Funds
Fund Balance/Net Assets
December 31, 2002
$ 12,296,712 $ 48,767,029 $ 7,017,910 $ 494,647 $ 1,161,959 $ 2,139,816
Miscellaneous Adjustments
Fixed Asset Prior Year Adjustments
General Obligation Bond Adjustment
GASB 34 Adjustments
Fixed Assets
Compensated Absences
Internal Service Fund
Interest Payable
Long-Term Liabilities
2,601
[26,952]
[725]
4,051
[725]
[42,234]
[980,000]
107,075,348
[2,181,721]
2,097,582
[278,017]
[22,593,189]
$ 95,439,316 $ 48,740,077 $ 7,017,185 $ 498,698 $ 1,161,234 $ 2,097,582
Net Assets
Note 4. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
A. Deposits and Investments
Deposits - At year end, the City's carrying amount of the deposits and cash on hand was $12,770,065 and
$14,493 respectively. The bank balance was $14,293,579. The difference between the carrying amount and
the bank balance is outstanding checks, deposits in transit and cash on hand. Of the bank balance $300,000
was covered by FDIC insurance and the remaining $13,993,579 was collateralized by pledged securities
held under joint custody receipts issued by a third-party bank in the City's name and by Bank Depository
Guaranty Bonds issued by Kansas Bankers Surety Company. The third-party bank holding the pledged
securities is independent of the pledging bank. The pledged securities are held under a tri-party custodial
agreement signed by all three parties; the City, the pledging bank and the independent third-party bank
holding the pledged securities. The Kansas State Treasurer's Fiscal Agency Department held an unsecured
and uncollateralized deposit of $21 ,212.
35
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2003
Note 4. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
A. Deposits and Investments (Continued)
The carrying amount of deposits and cash on hand for the Housing Authority of the City of Salina, a
discretely presented component unit, was $810,577 and $50, respectively, and the bank balance was
$831,929. Of the bank balance, $831,929 was covered by federal depository insurance or by collateral held
by the entity's agency in the Housing Authority's name.
The carrying amount of deposits and cash on hand, respectively for the Salina Airport Authority, a discretely
presented component unit, was $1,468,226 and $50 and the bank balance was $1,462,756. Of the bank
balance, $1,462,756 was covered by federal depository insurance or by collateral held by the entity's agency
in the Authority's name.
Investments - Kansas statutes authorize the City to invest in U.S. Treasury bills and notes, repurchase
agreements, the Kansas Municipal Investment Pool (KMIP), and certain other types of federal and Kansas
municipal obligations. All investments must be insured, registered, or held by the City or its agent in the
City's name. The City's investments are categorized to give an indication of the level of risk assumed by the
City at year-end. Category 1 includes investments that are insured or registered, or for which the securities
are held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered
investments for which the securities are held by the pledging bank's trust department or agent in the City's
name. Category 3 includes uninsured and unregistered investments for which the securities are held by the
pledging bank but not in the City's name. The carrying amount of investments approximates fair value.
At December 31, 2003, the City had invested $9,054,428 in the State's municipal investment pool. 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 US government or any agency thereof, with
maturities up to four years. No more than 10 percent of those funds may be invested in mortgage-backed
securities. In addition, the State pool may invest in repurchase agreements with Kansas banks or with
primary government securities dealers. The City's investment in the State Treasurer's municipal investment
pool is not subject to categorization as to risk, The fair value of the City's position in the municipal investment
pool is substantially the same as the value of the pool shares. The categories of the City's investments are
as follows:
Primary Government:
U.S. Treasury Bills
Category
Carrying
1 2 3 Amount
$ 6,008,842 $ - $ - $ 6,008,842
9,054,428
$ 15,063,270
$ 83,090
Pooled investment -
State of Kansas
Salina Housing Authority
Separate statutes regulate investment proceeds for most bond issues. Local units may invest bond
proceeds in direct obligations of the United States Government and its agencies or make investments as
36
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31,2003
Note 4. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
A. Deposits and Investments (Continued)
authorized for other idle funds. Under existing Attorney General opinions maturity and interest rates are
negotiable on such bonds.
The cash and investments by fund type at December 31, 2003 are as follows:
Primary government:
Statement of net assets - cash and investments $ 27,225,323
Statement of net assets - restricted cash 422,203
Statement of fiduciary net assets - cash and investments 221,514
Total $ 27,869,040
Cash and cash equivalents $ 12,770,065
Cash on hand 14,493
Cash held by fiscal agent 21,212
Investments 15,063,270
Total $ 27,869,040
Salina Housing Authority:
Statement of net assets - cash and investments $ 837,052
Statement of net assets - restricted cash 56,665
Total $ 893,717
Cash and cash equivalents $ 810,577
Cash on hand 50
Investments 83,090
Total $ 893,717
Salina Airport Authority:
Statement of net assets - cash and investments $ 1,383,276
Statement of net assets - restricted cash 85,000
Total $ 1,468,276
Cash and cash equivalents $ 1 ,468,226
Cash on hand 50
Total $ 1,468,276
37
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2003
Note 4. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
B. Receivables
Receivables as of year end, including the applicable allowances for doubtful accounts, are as follows:
Rood & Toulism
Employee Drainage and Special Bicentennial Debt
General Benefits Impr. Convention Gas Center Service Subtotal
Plimary Government
Receivables:
Accounts $ 1,143,903 $ - $ - $ 192,196 $ - $ 9,645 $ $ 1,345,744
Taxes 2,119,692 4,130,056 327,511 422,922 1,313,128 8,313,309
Interest 31 ,438 306 6,047 1,332 8,496 47,619
Gross receivables 3,295,033 4,130,056 327,511 192.502 428,969 10,977 1,321,624 9,706,672
Less: allOlNance for
uncolleclibles [84,247] [84,247]
Total $ 3,210,786 $ 4,130,056 $ 327,511 $ 192,502 $ 428,969 $ 10,977 $ 1,321,624 $ 9,622,425
Solid Golf Water
Capital Other Waste Course and Internal
Projects Governmental Sanitation Disposal Division Sewer Service Rduciary Total
Plimary Government
Receivables:
Accounts $ $ 32,327 $ 103,011 $ 149,679 $ - $ 716,702 $ $ - $ 2,347,463
Taxes 8,313,309
Interest 3,837 5,890 3,282 23,901 636 41,673 11,928 634 139,400
Noles 18,332 18,332
Gross receivables 3,837 56,549 106,293 173,580 636 758,375 11,928 634 10,818,504
Less: allOlNance for
uncolleclibles [8,364] [8,443] [58,743] [159,797]
Total $ 3,837 $ 48,185 $ 97,850 $ 173,580 $ 636 $ 699,632 $ 11,928 $ 634 $ 10,658,707
Component Units
Salina A rport Authority
Accounts $ 111.714
Less: allOlNance for uncolleclibles [1,718]
109,996
Taxes 1,023,355
Total Salina Arport Authority 1,133,351
Salina Housing Authority 837
Total $ 1,134,188
C. Interfund Receivables and Payables
The composition of interfund balances as of December 31,2003, is as follows:
Fund Types Due From Due To
General $ 10,609 $
Special Revenue
CDBG Ed 625
Fair Housing Partnership 9,984
Total $ 10,609 $ 10,609
38
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2003
Note 4. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
D. Fixed Assets
Fixed asset activity for the year ended December 31, 2003, was as follows:
Balance Adj. Bal, Balance
12131/2002 Adi ustments 12131/2002 Additions Retirements 12131/2003
City governmental activities:
Governmental activities:
Capital assets, not being depredated
Construction in progress $ 488,299 $ 2,563,499 $ 3,051,798 $ 2,932,056 $ [472,229] 5,511,625
Land 9,074,035 3,474,684 12,548,719 131,415 12,680,134
Capital assets, being depredated
Infrastructure 117,756,764 117,756,764 349,627 118,106,391
Buildings and improvements 12,475,451 6,342,458 18,817,909 84,889 18,902,798
Vehides 4,177,581 791,971 4,969,552 339,118 5,308,670
Equipment, furniture and fixtures 9,462,840 [6,538,045] 2,924,795 333,550 3,258,345
Total fixed assets 35,678,206 124,391,331 160,069,537 4,170,655 [472,2291 163,767,963
Less acaJmulated depredation for:
Infrastructure 40,034,360 40,034,360 2,463,920 42,498,280
Buildings and improvements 18,304 7,933,440 7,951,744 456,356 8,408,100
Vehides 11,536 3,175,859 3,187,395 433,688 3,621,083
Equipment, furniture and fixtures 1,256,904 341,126 1,598,030 276,062 1,874,092
Total accumulated depredation 1,286,744 51,484,785 52,771,529 3,630,026 56,401,555
Governmental activities fixed assets, net $ 34,391,462 $ 72,906,546 $ 107,298,008 $ 540,629 $ [472,229] $ 107,366,408
Business-type activities:
Capital assets, not being depredated
Construction in progress $ 5,255,187 $ 309,498 $ 5,564,685 $ 4,348,737 $ [1,696,650] 8,216,772
Land 3,552 3,552 3,552
Capital assets, being depredated
Land improvements 7,818,973 (7,818,973]
Infrastructure 48,247,695 48,247,695 1,696,650 49,944,345
Buildings and improvements 83,342,560 [60,913,064] 22,429,496 114,660 22,544,156
Vehides 1,635,022 323,900 1,958,922 104,422 2,063,344
Equipment, fumiture and fixtures 2,300,038 604,220 2,904,258 726,572 [272,952] 3,357,878
Total fixed assets 100,355,332 [19,246,724] 81,108,608 6,991,041 [1,969,602] 86,130,047
Less accumulated depreciation for.
Land improvements 3,520,647 [3,520,647]
Infrastructure 16,530,093 16,530,093 998,418 17,528,511
Buildings and improvements 37,509,591 [30,842,317] 6,667,274 453,435 7,120,709
Vehides 735,867 474,590 1,210,457 183,446 1,393,903
Equipment, fumiture and fixtures 1,035,167 361,008 1,396,175 214,425 [181,968] 1,428,632
Total accumulated depredation 42,801,272 [16,997,273] 25,803,999 1,849,724 [181,968] 27,471,755
Business-type activities fixed assets, net $ 57,554,060 $ [2,249,451] $ 55,304,609 $ 5,141,317 $ [1,787,634] $ 58,658,292
39
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2003
Note 4. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
D. Fixed Assets (Continued)
The City's depreciation expense was charges to governmental functions as follows:
Governmental Activities:
General government
Public safety
Public works
Public health
Culture and recreation
Planning and development
Total depreciation
$ 109,477
354,921
2,768,889
23,779
271,400
101,560
$ 3,630,026
Business-type Activities:
Solid Waste Disposal
Water and Sewer
Sanitation
Golf Course Division
Total depreciation
$ 184,492
1,537,161
85,794
42,277
$ 1,849,724
E. Long-Term Debt
Following is a summary of changes in long-term debt for fiscal year 2003:
Balance Balance Amounts
January 1 , Additions/ December 31, Due Within
2003 Adjustments Deletions 2003 One Year
Governmental activities:
General obligation bonds $ 17,728,189 $ 5,330,000 $ 2,313,880 $ 20,744,309 $ 2,568,792
Capital lease 60,000 60,000 18,850
Accrued compensation 2,181,721 186,691 2,368,412
Temporary notes 4,865,000 4,250,000 4,865,000 4,250,000
Total $ 24,774,910 $ 9,826,691 $ 7,178,880 $ 27,422,721 $ 2,587,642
Business-type activities:
General obligation bonds $ 7,187,753 $ - $ 1,959,356 $ 5,228,397 $ 861,208
Revenue bonds 6,790,000 575,000 6,215,000 600,000
Loans payable 7,574,256 724,337 216,394 8,082,199 303,766
Temporary notes 2,533,972 2,533,972
Accrued compensation 618,657 4,343 623,000
Total $ 22,170,666 $ 3,262,652 $ 2,750,750 $ 22,682,568 $ 1,764,974
Component Units:
General obligation bonds $ 7,160,000 $ - $ 895,000 $ 6,265,000 $ 830,000
Revenue bonds 315,000 70,000 245,000 75,000
Loans payable 270,620 51,991 218,629 53,036
Special assessment debt 536,563 29,759 506,804 30,886
Total component units $ 8,282,183 $ - $ 1,046,750 $ 7,235,433 $ 988,922
40
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2003
E. Long-Term Debt (Continued)
Note 4. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (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
Internal Improvements 1994, due 10/1/2004
Internal Improvements 1995, due 10/1/2005
Internal Improvements 1996, due 8/1/2006
Internal Improvements 1997, due 2/1/2012
Internal Improvements 1998, due 8/1/2003
Water/sewer refunding 1998, due 10/1/2008
Internal Improvements 1999, due 10/1/2014
Internal Improvements 2000, due 10/1/2015
Internal Improvements 2001, due 10/1/2016
Water/sewer refunding 2002A, due 10/1/2013
Internal Improvements 20028, due 10/1/2017
Internal Improvements 2003A, due 10/1/2018
Total general obligation bonds
Revenue Bonds
Revenue Refunding 2002A, due 9/1/2012
Total revenue bonds
Loans Payable
Kansas Public Water Supply, due 2/112020
Kansas Public Water Supply, due 2/112023
T otalloans payable
Temporary Notes
Series 2003-1 , due 8/112004
Series 2003-2, due 7/112007
Series 2003-3, due 8/112005
Total temporary notes
Capital Lease, due 6/112006
Original Interest Bonds
Issue Rates Outstanding
$ 1,175,000 4.70% to 6.50% $ 115,000
2,434,000 4.75% to 6.50% 480,000
1,847,000 4.65% to 5.00% 555,000
1,650,000 4.50% to 5.25% 660,000
3,900,000 4.10% to 5.00% 2,350,000
6,010,000 3.80% to 4.40% 2,977,706
5,465,000 4.30% to 5.50% 3,355,000
3,885,000 4.625% to 6.50% 2,885,000
5,350,000 4.00% to 4.90% 4,630,000
2,045,000 3.00% to 4.50% 1,805,000
1,980,000 2.70% to 4.50% 1,810,000
4,350,000 2.13% to 3.85% 4,350,000
$ 25,972,706
6,790,000 2.20% to 4.25% $ 6,215,000
$ 6,215,000
3,600,000
5,000,000
4.29%
4.13%
$ 3,168,692
4,913,507
$ 8,082,199
3,800,000 2.00% $ 3,833,972
1,200,000 2.00% 1,200,000
1,750,000 1.35% 1,750,000
$ 6,783,972
60,000 3.65 $ 60,000
41
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2003
Note 4. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
E. Long-Term Debt (Continued)
Original Interest Bonds
Issue Rates Outstandinq
Component Unit
Salina Airport Authority
General Obligation Bonds
General Obligation 1998, due 2008 $ 4,440,000 4.05% to 5.50% $ 2,215,000
General Obligation 1999B, due 2010 555,000 3.90% to 5.20% 360,000
General Obligation 2001A, due 2012 1,385,000 4.45% to 5.60% 1,280,000
General Obligation 2002A, due 2013 2,635,000 2.45% to 3.70% 2,410,000
Total general obligation bonds 6,265,000
Revenue Bonds
Leasehold revenue 1991, due 2006 850,000 5.00% to 7.25% 245,000
Loans Payable
Kansas Dept of Commerce & Housing, due 2007 468,543 2.00% 218,629
Special assessment debt 565,235 3.19% 506,804
Total $ 7,235,433
Annual debt service requirements to maturity for general obligation bonds to be paid with tax levies:
General Obligation - Primary Government
Bonds Interest
Year Outstandinq Due Total
2004 $ 3,430,000 $ 1,125,891 $ 4,555,891
2005 3,350,000 955,170 4,305,170
2006 3,145,000 816,191 3,961,191
2007 2,995,000 687,264 3,682,264
2008 2,615,000 563,906 3,178,906
2009-2013 7,637,706 1,552,057 9,189,763
2014-2018 2,800,000 282,000 3,082,000
Total $ 25,972,706 $ 5,982,479 $ 31,955,185
General Obligation - Component Units
Bonds Interest
Year Outstandinq Due Total
2004 $ 830,000 $ 253,762 $ 1,083,762
2005 850,000 220,434 1,070,434
2006 850,000 186,866 1,036,866
2007 885,000 154,858 1,039,858
2008 905,000 120,041 1,025,041
2009-2012 1,945,000 207,842 2,152,842
Total $ 6,265,000 $ 1,143,803 $ 7,408,803
42
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31,2003
Note 4. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
E. Long-Term Debt (Continued)
Annual debt service requirements to maturity for revenue bonds to be paid with utility revenues:
Revenue Bonds - Primary Government
Bonds Interest
Year Outstandinq Due Total
2004 $ 600,000 $ 206,810 $ 806,810
2005 625,000 191,810 816,810
2006 640,000 178,060 818,060
2007 640,000 162,060 802,060
2008 680,000 143,500 823,500
2009-2013 3,030,000 306,245 3,336,245
Total $ 6,215,000 $ 1,188,485 $ 7,403,485
Annual debt service requirements to maturity for revenue bonds to be paid with service revenues:
Revenue Bonds - Component Units
Bonds Interest
Year Outstandinq Due Total
2004 $ 75,000 $ 17,610 $ 92,610
2005 80,000 12,285 92,285
2006 90,000 6,525 96,525
Total $ 245,000 $ 36,420 $ 281 ,420
Annual debt service requirements to maturity for temporary notes - to be paid through the issuance of general
obligation bonds:
Year
2004
2005
2006
2007
Temporary Notes - Primary Government
Notes Interest
Outstandinq Due
$ 3,800,000 $ 79,378 $
1,750,000 38,456
Total
3,879,378
1,788,456
1,233,972
95,067
1,329,039
Total
$
6,783,972 $
212,901 $
6,996.873
43
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31,2003
E. General Long-Term Debt (Continued)
Note 4. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
The City has engaged in loans in which they have yet to receive all of the proceeds. The following displays
annual debt service requirements to maturity for loans payable to be paid from service revenues, for the full
proceeds amount:
Year
2004
2005
2006
2007
2008
2009-2013
2014-2018
2019-2023
Total
Year
2004
2005
2006
2007
Total
Loans - Primary Government
Loans Interest
Outstandinq Due Total
$ 303,766 $ 307,870 $ 611,636
316,661 296,049 612,710
330,105 283,725 613,830
344,120 270,878 614,998
358,731 257,484 616,215
2,035,474 1,065,743 3,101,217
2,505,896 634,503 3,140,399
1,887,446 161,427 2,048,873
$ 8,082,199 $ 3,277,679 $ 11,359,878
Loans - Component Unit
Loans Interest
Outstandinq Due Total
$ 53,036 $ 4,109 $ 57,145
54,109 3,043 57,152
55,184 1,955 57,139
56,300 846 57,146
$ 218,629 $ 9,953 $ 228,582
Annual debt service requirement to maturity for Special Assessment Debt to be paid from rental revenue:
Special Assessment Debt - Component Unit
Assessment Interest
Year Outstandinq Due Total
2004 $ 30,886 $ 19,209 $ 50,095
2005 32,056 18,038 50,094
2006 33,271 16,824 50,095
2007 34,533 15,562 50,095
2008 35,841 14,254 50,095
2009-2013 200,642 49,826 250,468
2014-2016 139,575 10,711 150,286
Total $ 506,804 $ 144,424 $ 651,228
44
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2003
Note 4. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
E. General 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 of the City to the extent of property owner defaults, which have historically been immaterial.
Conduit debt. The City has entered into several conduit debt arrangements wherein the City issues industrial
revenue bonds to finance a portion of the construction of facilities by private enterprises. In return, the private
enterprises have executed mortgage notes or leases with the City. The City is not responsible for payment of
the original bonds, but rather the debt is secured only by the cash payments agreed to be paid by the private
enterprises under the terms of the mortgage or lease agreements. Generally, the conduit debt is arranged so
that payments required by the private enterprises are equal to the mortgage payments schedule related to the
original debt. At December 31, 2003, total outstanding conduit debt was $83,229,960.
F. Capital Leases
The City has entered into a lease agreement as lessee for financing the acquisition of equipment. This lease
agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the
present value of the future minimum lease payments as of the date of inception.
Governmental
Activities
Assets
Other equipment $ 60,000
Minimum future lease payments under capital leases as of December 31, 2003 are:
2004
2005
2006
Governmental
Activities
$ 21,708
21,708
21 ,708
65,124
[5,124]
60,000
$
Total minimum lease payments
Less amount representing interest
Present value of future minimum lease payments
45
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2003
Note 4. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
G. Reconciliation of Transfers
A reconciliation of interfund transfers follows:
Major Funds:
General fund
Tourism and convention fund
Bicentennial center fund
Capital project fund
Water and se\l\ler fund
Golf course district fund
Internal service funds
Total Transfers
Note 5. OTHER INFORMATION
A. Defined Benefit Pension Plan
Plan description. The City participates in the Kansas Public Employees Retirement System (KPERS) and the
Kansas Police and Firemen's Retirement System (KP&F), Both are cost-sharing multiple-employer defined
benefit pension plans as provided by Kansas statutes (KSA 74-4901 et seq). KPERS and KP&F provide
retirement benefits, life insurance, disability income benefits and death benefits. Kansas law established and
amends benefit provisions. KPERS and KP&F issue a publicly available financial report that includes financial
statements and required supplementary information. Those reports may be obtained by writing to 611 South
Kansas, Suite 100; Topeka, Kansas 66603 or by calling 1-888-275-5737.
Funding Policy. K.S.A. 74-4919 establishes the KPERS member-employee contribution rate at 4% of covered
salary. K.S.A. 74-4975 establishes the KP&F member-employee contribution rate at 7% of covered salary.
The employer collects and remits member-employee contributions according to the provisions of section 414
(h) of the Internal Revenue Code. State law provides that the employer contribution rates be determined
annually based on the results of an annual actuarial valuation. KPERS and KP&F are funded on an actuarial
reserve basis. State law sets a limitation on annual increases in the employer contribution rates. The KPERS
employer rate was 3.67% from January 1 to March 31, 2003 and 3.07% from April 1 to December 31,2003.
The City employer contributions to KPERS for the years ending December 31, 2003, 2002 and 2001 were
$334,377, $347,505 and $259,645, respectively, equal to the required contributions for each year. The KP&F
employer rate established for fiscal years beginning in 2003 is 10.71%. Employers participating in KP&F also
make contributions to amortize the liability for past service costs, if any, which are determined separately for
each participating employer. The City's contributions to KP&F for the years ended December 31,2003,2002,
and 2001 were $781,320, $735,657 and $719,030, respectively, equal to the required contributions for each
year.
B. Deferred Compensation Plan
The City offers its employees a deferred compensation plan ("Plan") created in accordance with Internal
Revenue Code Section 457. The Plan, available to all City employees, permits them to defer a portion of their
salary until future years. The deferred compensation is not available to employees until termination,
retirement, death, or unforeseeable emergency. Plan assets are transferred to a plan agent in a custodial
trust and are not available to the claims of the City's general creditors.
46
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2003
Note 5. OTHER INFORMATION (Continued)
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 of 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 if reported in the Workers' Compensation
Reserve Fund because it is expected to be liquidated with expendable available financial resources.
Changes in the balances of claims liabilities during the past two years are as follows:
2003 2002
Unpaid claims, January 1 $ 144,964 $ 172,060
Incurred claims (including
IBNRs) 294,845 128,281
Claim payments [192,350] [155,377]
Unpaid claims, December 31 $ 247,459 $ 144,964
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 in the
Health Insurance Fund because it is expected to be liquidated with expendable available financial resources.
Changes in the balances of claims liabilities during the past two years are as follows:
2003 2002
Unpaid claims, January 1 $ 447,253 $ 271 ,446
Incurred claims (including
IBNRs) 3,492,899 3,338,877
Claim payments [3,565,806] [3,163,070]
Unpaid claims, December 31 $ 374,346 $ 447,253
47
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31,2003
Note 5. OTHER INFORMATION (Continued)
E. 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 31,2003.
Proiect
Water Treatment Plant Phase 1/
North Ohio Grade Separation
North Ohio Utility Extension
5th and Stimmel Sewer
Schilling/Centennial ED Project
South Ninth, Phase 1/1
Lakewood Bridge
Relocation of Lakewood Bridge
North Ninth Street Bridge
2002 Enhancements, NE Quad Markley and Magnolia Road
Open landfill Cell #4 and Closure, Cells 1 & 2
Municipal Court Addition
Traffic Signals, Crawford and Fron
2002 Subdivision Improvements--Woodland
Hunington Ditch
Soccer Complex
2003 Subdivision Improvements--Liberty Addition
F. Contingent Liabilities
The City receives significant financial assistance from numerous federal and state governmental agencies in
the form of grants and state pass-through aid. The disbursement of funds received under these programs
generally requires compliance with terms and conditions specified in the grant agreements and is subject to
audit. Any disallowed claims resulting from such audits could become a liability of the General Fund or other
applicable funds. However, in the opinion of management, any such disallowed claims would not have a
material effect on any of the financial statements of the City at December 31, 2003.
Authorization
$ 5,844,700
4,000,000
1,194,553
340,000
671,000
3,700,000
50,000
75,000
375,000
164,805
3,000,000
1,500,000
402,000
83,726
135,000
130,560
Expenditures
$ 5,471,787
880,238
625,604
313,341
64,422
2,461,267
79,584
39,127
84,240
95,780
2,029,272
1,391,628
65,038
64,108
650
5,734
118,046
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.
48
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31,2003
Note 5. OTHER INFORMATION (Continued)
G. 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 $1,600,956 reported as landfill closure and postclosure care liability at December 31 represents the
cumulative amount reported to date based on the use of 29.6% of the estimated capacity of the landfill. The
City's solid waste fund will recognize the remaining estimate cost of closure and postclosure care of
$3,058,832 as the remaining estimated capacity is filled over the remaining life expectancy of 84 years.
These amounts are based on what it would cost to perform all closure and postclosure care in 2003. 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.
H. Segment Information - Enterprise Funds
The City maintains four enterprise funds which are intended to be self-supporting through user fees charged
for services to the public. Financial segment information as of and for the year ended December 31, 2003 is
presented below.
Solid Water Golf
Waste and Course
Disposal Sewer Sanitation Division Total
Operating revenues $ 2,401,509 $ 12,216,560 $ 1,794,621 $ 810,717 $ 17,223,407
Depreciation expense 184,492 1,537,161 85,794 42,277 1,849,724
Transfers out 40,000 39,661 79,661
Operating income [loss] 146,121 1,533,835 112,269 27,983 1,820,208
Change in net assets 82,635 650,834 118,619 [14,441] 837,647
Property, plant and
equipment additions 2,567,025 2,552,984 104,423 69,960 5,294,392
Net working capital 3,074,409 8,266,364 706,396 121,362 12,168,531
Total assets 7,148,280 64,197,993 1,149,404 697,142 73,192,819
Bonds, loans and temporary
notes payable 2,678,875 19,320,712 59,981 22,059,568
Total net assets 2,700,540 44,029,053 1,009,325 569,355 48,308,273
49
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2003
Note 5. OTHER INFORMATION (Continued)
I. 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 Site). The City adopted a proactive Policy and Action Plan to remediate the groundwater contamination,
and on December 7, 1994, the City and KDHE entered into a Consent Order and Settlement Agreement
under which the City assumed primary responsibility for the further investigation and remediation of the
groundwater contamination. Field testing work has been completed. The necessary remediation work will be
conducted over the next several years at a yet undetermined cost to the City's Water and Sewer Fund.
The Salina Airport Authority has been involved in discussions with the Corps of Engineers, Environmental
Protection Agency, and the Kansas Department of Health and Environment relative to the former Schilling air
Force Base (the Base) in Salina, Kansas. The Base was operational from 1942 to 1965 when it was
decommissioned and became the current Salina Municipal Airport and Salina Airport Industrial Center.
During its period of operation, the Base was used for large aircraft including B-17s, B-29s, B-47s and the
refueling KC-97s and KC-135s. The Army Corps of Engineers did a removal of 107 former underground
storage tanks at the former Base in 1995. In addition to efforts by the Corps of Engineers, the Environmental
Protection Agency has conducted an Expanded Site Investigation (ESI) to determine all sources of potential
contamination at the Site. Once the additional information gathering effort has been conducted and all
parties know the nature and extent of contamination, it is anticipated that there will be a discussion with
respect to cleanup options and allocation of responsibility. At this time, the Authority does not know
specifically whether the City of Salina or the Authority will have cleanup obligations.
J. Subsequent Events
On April 28, 2004, the City issued general obligation refunding bonds in the amount of $5,585,000. The City
will make the first payment on August 1, 2004 and the last payment on August 1, 2015. The interest rate on
the bonds ranges from 2.10% to 4.00%.
50
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REQUIRED SUPPLEMENTARY INFORMATION
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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, 2003
Variance with
Final Budget
Budaeted Amounts Positive
Actual Oriqinal Final fNeqativel
Revenues
Taxes
Real estate taxes $ 2,299,570 $ 2,307,302 $ 2,307,302 $ [7,732]
Delinquent taxes 56,364 30,000 30,000 26,364
Motor vehicle taxes 399,871 291,283 366,283 33,588
General sales tax 9,913,121 10,260,384 9,933,000 [19,879]
Selective sales tax 2,113,593 2,174,436 2,116,500 [2,907]
Other taxes 1,932,928 1,895,000 1,940,000 [7,072]
Total taxes 16,715,447 16,958,405 16,693,085 22,362
Charges for Services
General charges 21,777 8,000 8,000 13,777
General government 9,388 9,000 9,000 388
Public safety 2,561,685 2,496,750 2,530,750 30,935
Public works 154,332 175,000 175,000 [20,668]
Health and sanitation 35,690 24,000 24,000 11,690
Culture and recreation 473,907 502,500 517,325 [43,418]
Community and economic development 8,784 10,500 10,500 [1,716]
Total charges for services 3,265,563 3,225,750 3,274,575 [9,012]
Operating grants, restricted
General grants 189,362 827,004 1,022,999 [833,637]
Public safety 640,000 640,000 640,000
Total operating grants, restricted 829,362 1,467,004 1,662,999 [833,637]
Operating grants, unrestricted
General grants 150 150
Public safety 550 550
Public works 1 ,400 1,000 1,000 400
Total operating grants, unrestricted 2,100 1,000 1,000 1,100
Interest income
General interest 127,667 300,000 150,000 [22,333]
Total interest income 127,667 300,000 150,000 [22,333]
Interfund services provided
General services 591,978 582,000 698,500 [106,522]
General government 1,161,611 1,055,094 1,055,094 106,517
Community and economic development 56,000 100,000 [100,000]
Total interfund services provided 1,753,589 1,693,094 1,853,594 [100,005]
Miscellaneous revenues
General miscellaneous revenues 49,391 57,500 57,500 [8,109]
Public safety 34,455 32,000 32,000 2,455
Public works 67 67
Community and economic development 1,868 1,868
Total miscellaneous revenues 85,781 89,500 89,500 [3,719]
Proceeds of fixed assets
General sales 10,132 20,000 30,000 [19,868]
Total proceeds of fixed assets 10,132 20,000 30,000 [19,868]
Total revenues 22,789,641 23,754,753 23,754,753 [965,112]
See independent auditor's report on the financial statements.
51
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, 2003
Variance with
Final Budget
Budaeted Amounts Positive
Actual Oriainal Final [Neaativel
Expenditures
General Government
City commission 88,400 110,950 110,950 22,550
City manager 362,337 393,200 393,200 30,863
Legal 171,963 112,000 132,000 [39,963]
Finance 407,989 385,756 395,856 [12,133]
Human resources 186,695 215,907 215,907 29,212
Other general government 708,798 705,280 655,280 [53,518]
Contingencies 62,594 350,000 100,000 37,406
Total general government 1,988,776 2,273,093 2,003,193 14,417
Public Safety
Police $ 4,601,127 $ 4,756,788 $ 4,747,148 $ 146,021
Municipal court 837,360 834,380 972,480 135,120
Fire 4,267,580 4,245,111 4,248,111 [19,469]
Total public safety 9,706,067 9,836,279 9,967,739 261,672
Public Works
Buildings and general improvements 661,542 662,887 679,787 18,245
Engineering 487,344 497,282 497,282 9,938
Streets 1,135,133 1,264,389 1,268,639 133,506
Flood works 117,769 145,523 145,523 27,754
Traffic control 535,965 543,904 568,904 32,939
Parks 949,481 981,156 964,156 14,675
ADA compliance 3,038 40,000 40,000 36,962
Total public works 3,890,272 4,135,141 4,164,291 274,019
Public Health and Sanitation
Cemetery 77,107 108,295 108,295 31,188
Health department 650,241 650,241 650,241
Total public health and sanitation 727,348 758,536 758,536 31,188
Culture and Recreation
Swimming pools 73,978 74,991 76,791 2,813
Neighborhood centers 52,284 56,879 59,879 7,595
Recreation 1,133,145 1,162,683 1,177,508 44,363
Arts and humanities 304,529 306,798 303,798 [731]
Smoky Hill museum 293,481 297,241 296,241 2,760
Total culture and recreation 1,857,417 1,898,592 1,914,217 56,800
Community Development
Human relations 176,894 175,504 175,504 [1,390]
Development services 861,652 937,445 924,545 62,893
Agency contracts 2,527,942 2,464,436 2,514,500 [13,442]
Total community development 3,566,488 3,577,385 3,614,549 48,061
Capital Outlay
Capital outlay 1,065,852 1,527,984 1,310,690 244,838
Cash Reserve 4,200,578 4,474,373 4,474,373
Total expenditures 22,802,220 28,207,588 28,207,588 5,405,368
Excess [deficiency] of revenues
over [under] expenditures [12,579] [4,452,835] [4,452,835] 4,440,256
See independent auditor's report on the financial statements.
52
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, 2003
Other financing sources [uses]
Transfer in
Transfer [out]
Variance with
Final Budget
Budaeted Amounts Positive
Actual Oriainal Final rNeaativel
$ 42,032 $ - $ - $ 42,032
[290,000] [165,000] [165,000] [125,000]
[247,968] [165,000] [165,000] [82,968]
Total other financing sources [uses]
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]
Prior year cancelled encumbrances
[260,547] [4,617,835] [4,617,835] 4,357,288
5,414,814 4,617,835 4,617,835 796,979
725 725
5,415,539 4,617,835 4,617,835 797,704
101,235 101,235
5,256,227 $ - $ - $ 5,256,227
31,438
1,059,656
119,501
308,721
$ 6,775,543
Unreserved fund balance, January 1
Prior period adjustment
Unreserved fund balance, January 1, restated
Unreserved fund balance, December 31
Reconciliation to GAAP
Interest receivable
Accounts receivable
Inventory
Encumbrances
GAAP Fund Balance, December 31
See independent auditor's report on the financial statements.
53
CITY OF SALINA, KANSAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
EMPLOYEE BENEFITS FUND
For the Year Ended December 31, 2003
Miscellaneous revenues
General miscellaneous revenues
Variance with
Final Budget
Budqeted Amounts Positive
Actual Oriqinal Final rNeqativel
$ 3,120,809 $ 3,133,460 $ 3,133,460 $ [12,651]
72,772 55,000 55,000 17,772
480,574 378,368 378,368 102,206
3,674,155 3,566,828 3,566,828 107,327
1,811 2,000 2,000 [189]
3,675,966 3,568,828 3,568,828 107,138
Revenues
Taxes
Real estate taxes
Delinquent taxes
Motor vehicle taxes
Total taxes
Total revenues
Expenditures
General Government
City commission
City manager
Finance
Human resources
Total general government
1 ,405 1,420 1,420 15
77 ,461 72,618 80,598 3,137
81,486 78,125 83,365 1,879
37,509 36,628 39,610 2,101
197,861 188,791 204,993 7,132
1,113,418 991,970 1,157,224 43,806
105,798 90,452 108,471 2,673
1,104,868 1,018,478 1,091,277 [13,591 ]
2,324,084 2,100,900 2,356,972 32,888
67,034 63,738 68,068 1,034
111 ,685 101,810 112,586 901
264,089 268,062 271,416 7,327
33,533 31,207 34,195 662
29,736 34,263 40,916 11 ,180
215,407 191,976 226,272 10,865
721,484 691,056 753,453 31,969
Public Safety
Police
Municipal court
Fire
Total public safety
Public Works
Buildings and general improvements
Engineering
Streets
Flood works
Traffic control
Parks
Total public works
See independent auditor's report on the financial statements.
54
CITY OF SALINA, KANSAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
EMPLOYEE BENEFITS FUND
For the Year Ended December 31, 2003
Variance with
Final Budget
Budqeted Amounts Positive
Actual Oriqinal Final [Neqativel
Expenditures - continued
Public Health and Sanitation
Cemetery $ 22,924 $ 33,780 $ 27,518 $ 4,594
Culture and Recreation
Swimming pools 4,088 4,608 4,608 520
Neighborhood centers 3,217 3,617 3,617 400
Recreation 142,193 134,282 140,690 [1,503]
Bi-Centennial Center 164,055 154,322 165,891 1,836
Arts and humanities 58,815 51,602 61,972 3,157
Smoky Hill museum 55,947 53,084 56,331 384
Total culture and recreation 428,315 401,515 433,109 4,794
Community Development
Human relations 37,105 36,664 36,664 [441 ]
Developmental services 184,111 187,127 198,609 14,498
Total community development 221,216 223,791 235,273 14,057
Other
Health insurance 7,872 12,000 12,000 4,128
Cash Reserve 496,304 124,819 124,819
Total expenditures 3,923,756 4,148,137 4,148,137 224,381
Excess [deficiency] of revenues
over [under] expenditures [247,790] [579,309] [579,309] 331,519
GAAP Fund balance, January 1 612,678 579,309 579,309 33,369
GAAP Fund balance, December 31 $ 364,888 $ - $ - $ 364,888
See independent auditor's report on the financial statements.
55
CITY OF SALINA, KANSAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
FLOOD AND DRAINAGE IMPROVEMENT FUND
For the Year Ended December 31,2003
Variance with
Final Budget
Budqeted Amounts Positive
Actual Oriqinal Final [Neqativel
Revenues
Taxes
Real estate taxes $ 305,420 $ 306,514 $ 306,514 $ [1,094]
Delinquent taxes 7,214 3,000 3,000 4,214
Motor vehicle taxes 49,497 37,890 37,890 11,607
Total taxes 362,131 347,404 347,404 14,727
Charges for services
General charges 5,657 5,657
Total revenues 367.788 347.404 347 .404 20.384
Expenditures
Capital Outlay
Capital outlay 255,861 300,000 230,000 [25,861]
Debt Service 100,000 100,000 100,000
Cash Reserve 107,099 177,099 177,099
Total expenditures 255,861 507,099 507,099 251,238
Excess [deficiency] of revenues
over [under] expenditures 111,927 [159,695] [159,695] 271,622
Unreserved fund balance, January 1 233,053 159,695 159,695 73,358
Prior year cancelled encumbrances 1,399 1,399
Unreserved fund balance, December 31 346,379 $ - $ - $ 346,379
Reconciliation to GAAP
Current Year Encumbrances 25,954
GAAP Fund Balance, December 31 $ 372,333
See independent auditor's report on the financial statements,
56
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, 2003
Interest income
General interest
Variance with
Final Budget
Budqeted Amounts Positive
Actual Oriqinal Final [Neqativel
$ 826,247 $ 775,000 $ 775,000 $ 51,247
332 332
826,579 775,000 775,000 51,579
Revenues
Taxes
Other taxes
Total revenues
Expenditures
Community Development
Tourism
465,000
465,000
465,000
Total expenditures
465,000
465,000
465,000
Excess [deficiency] of revenues
over [under] expenditures
361,579
310,000
310,000
51,579
Other financing sources [uses]
Transfer [out]
[310,000]
[310,000]
[310,000]
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]
51,579
51,579
Unreserved fund balance, January 1
5,075
406
406
4,669
Unreserved fund balance, December 31
56,654 $
406 $
406 $
56,248
Reconciliation to GAAP
Accounts receivable
I nterest receivable
192,196
306
GAAP Fund Balance, December 31
$ 249,156
See independent auditor's report on the financial statements.
57
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, 2003
Actual
Revenues
Operating grants, restricted
Public works
Budqeted Amounts
Oriqinal Final
Variance with
Final Budget
Positive
rNeqative 1
$ 1,416,767 $ 1,525,000 $ 1,525,000 $ [108,233]
Interest income
General interest
20,957
Interfund services provided
Public works
64,422
Total revenues
1,502,146
Expenditures
Public works
Streets
299,292
Capital Outlay
Capital outlay
Cash Reserve
1,090,653
Total expenditures
1,389,945
Excess [deficiency] of revenues
over [under] expenditures
112,201
Unreserved fund balance, January 1
590,124
Prior year cancelled encumbrances
42,035
Unreserved fund balance, December 31
744,360 $
Reconciliation to GAAP
Taxes receivable
Interest receivable
Current year encumbrances
422,922
6,047
368,893
GAAP Fund Balance, December 31
$ 1,542,222
25,002
25,002
1,550,002
1,550,002
351,708
351,708
1,290,000
303,739
1,296,000
297,739
1,945,447
1,945,447
[395,445]
[395,445]
395,445
395,445
- $
See independent auditor's report on the financial statements.
58
[4,045]
64,422
[47,856]
52,416
205,347
297,739
555,502
507,646
194,679
42,035
- $ 744,360
CITY OF SALINA, KANSAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
BICENTENNIAL CENTER FUND
For the Year Ended December 31,2003
Variance with
Final Budget
Budqeted Amounts Positive
Actual Oriqinal Final fNeqativel
Revenues
Charges for services
Culture and recreation $ 840,076 $ 823,000 $ 823,000 $ 17,076
Interest income
General interest 3,123 10,000 10,000 [6,877]
Interfund services provided
Culture and recreation 125,000
Miscellaneous revenues
General miscellaneous revenues 227 227
Total revenues 843,426 958,000 833,000 10,426
Expenditures
Culture and Recreation
Bi-Centennial Center 1,302,020 1,306,692 1,313,192 11,172
Capital Outlay
Capital outlay 9,741 23,125 21,125 11,384
Cash Reserve 204,274 199,774 199,774
Total expenditures 1,311,761 1,534,091 1,534,091 222,330
Excess [deficiency] of revenues
over [under] expenditures [468,335] [576,091 ] [701,091 ] 232,756
Other financing sources [uses]
Transfer in 435,000 310,000 435,000
Total other financing sources [uses] 435,000 310,000 435,000
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses] [33,335] [266,091 ] [266,091 ] 232,756
Unreserved fund balance, January 1 261 , 180 266,688 266,688 [5,508]
Prior year cancelled encumbrances 2,660 2,660
Unreserved fund balance, December 31 230,505 $ 597 $ 597 $ 229,908
Reconciliation to GAAP
Accounts receivable 9,645
Interest receivable 1,332
GAAP Fund Balance, December 31 $ 241 ,482
See independent auditor's report on the financial statements.
59
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COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
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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.
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.
Bicentennial center event fund - To account for the revenues and expenses associated with special events
(concerts, shows, etc.) at the City's convention center.
HUD community development fund - To account for grants received from the state to be used for housing or
economic development purposes.
APWA consortium fund - To pay for the APWA consortium.
Community development revolving fund - To account for funds which may be loaned for housing and economic
development purposes, to later be repaid and reused on a revolving basis.
Heritage commission fund - To account for revenues and expenses associated with heritage preservation activities.
Fair housing fund - To account for grants received from the federal government to be used to monitor and mediate
fair housing complaints.
CDBG ED fund- To account for grants received from the federal government to be used for economic development
loans to qualifying businesses.
HOME IV fund - To account for grants received from the state government to be used for housing rehabilitation.
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.
Fair housing partnership - To account for revenues and expenses associated with fair housing complaints.
Police grants fund - To account for revenues from grants which are to be used for special police activities, including
the DAR.E. program
DAR.E. donations fund - To account for donations to the DAR.E. program.
Large system interface fund - To account for grants received for the acquisition of computers and software used in
law enforcement activities,
War memorial maintenance fund - To account for monies to be used for maintenance of the local war memorial.
60
CITY OF SALINA, KANSAS
COMBINING STATEMENTS - NONMAJOR FUNDS
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..
Citizenship trust fund - To account for donated funds, the interest on which is to be used to provide "Good Citizen"
awards to deserving Salina citizens.
Cemetery endowment 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.
61
CITY OF SALINA, KANSAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2003
Total Total Total
Nonmajor Nonmajor Nonmajor
Special Revenue Permanent Governmental
Funds Funds Funds
ASSETS
Cash and investments $ 885,713 $ 313,501 $ 1,199,214
Receivables
Accounts 23,963 23,963
Interest 4,201 1,689 5,890
Notes 18,332 18,332
Total assets $ 932,209 $ 315,190 $ 1,247,399
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 34,143 $ - $ 34,143
Due to other funds 10,609 10,609
Total liabilities 44.752 44.752
Fund balances:
Reserved for notes receivable 18,332 18,332
Unreserved
Undesignated 869,125 315,190 1,184,315
Total fund balances 887,457 315,190 1,202,647
Total liabilities and fund balances $ 932,209 $ 315,190 $ 1,247,399
See independent auditor's report on the financial statements.
62
CITY OF SALINA, KANSAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31,2003
REVENUES:
Intergovernmental
Charges for services
Licenses and permits
Investment revenue
Miscellaneous
Total Total Total
Nonmajor Nonmajor Nonmajor
Special Revenue Permanent Governmental
Funds Funds Funds
$ 350,918 $ - $ 350,918
837,588 6,365 843,953
19,946 19,946
218,553 2,909 221,462
54,050 54.050
1.481.055 9.274 1.490.329
Total revenues
EXPENDITURES:
Current
Culture and recreation
Public health and sanitation
Planning and development
Miscellaneous
Capital outlay
Fund balance - Beginning of year
743,938 743,938
131,584 131,584
245,272 245,272
19,898 19,898
308,224 308,224
1.429,018 19.898 1.448.916
52,037 [10,624] 41,413
836,145 325,814 1,161,959
[725] [725]
835,420 325,814 1 , 161 ,234
$ 887,457 $ 315,190 $ 1,202,647
Total expenditures
Excess [deficiency] of revenues
over [under] expenditures
Prior period adjustment
Fund balance - Beginning of year, restated
Fund balance - End of year
See independent auditor's report on the financial statements.
63
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CITY OF SALINA, KANSAS
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31,2003
Business Special
Improvement Neighborhood Parks & Special
District Park Recreation Alcohol
ASSETS
Cash and investments $ 5,575 $ 132,312 $ 108,405 $ 32,856
Receivables
Accounts 23,963
Interest 30 713 584 177
Notes
Total assets $ 29,568 $ 133,025 $ 108,989 $ 33,033
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 5,567 $ - $ 7,635 $ 20,227
Due to other funds
Total liabilities 5,567 7,635 20,227
Fund balance:
Reserved for notes receivable
Unreserved
Undesignated [deficit] 24,001 133,025 101,354 12,806
Total fund balance [deficit] 24,001 133,025 101,354 12,806
Total liabilities and fund balances $ 29,568 $ 133,025 $ 108,989 $ 33,033
Bicentennial HUD Comm.
Center Community APWA Development. Heritage
Event Dev. Consortium Revolvinq Commission
$ 44,918 $ 59,514 $ - $ 170,703 $ 1,511
320 921 9
9,166 9,166
$ 44,918 $ 69,000 $ - $ 180,790 $ 1,520
$
- $
- $
- $
- $
9,166
9,166
171,624
180,790
1,520
1,520
44,918
44,918
59,834
69,000
$
44,918 $
69,000 $
- $ 180,790 $
1,520
See independent auditor's report on the financial statements.
64
CITY OF SALINA, KANSAS
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31,2003
Special
Fair CDBG HOME Law
Housinq ED IV Enforcement
ASSETS
Cash and investments $ 142,580 $ - $ 11 ,469 $ 12,105
Receivables
Accounts
Interest 769 65
Notes
Total assets $ 143,349 $ - $ 11 ,469 $ 12,170
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 689 $ - $ - $
Due to other funds 625
Total liabilities 689 625
Fund balance:
Reserved for notes receivable
Unreserved
Undesignated [deficit] 142,660 [625] 11,469 12,170
Total fund balance [deficit] 142,660 [625] 11,469 12,170
Total liabilities and fund balances $ 143,349 $ - $ 11 ,469 $ 12,170
Fair Large War
Housing Police DARE System Memorial
Part. Grants Donations Interface Maintenance Totals
$ - $ 86,949 $ 39,328 $ 4,245 $ 33,243 $ 885,713
23,963
198 212 23 180 4,201
18,332
$ - $ 87,147 $ 39,540 $ 4,268 $ 33,423 $ 932,209
$
- $
9,984
9,984
- $
- $
- $
25 $
34,143
10,609
44,752
25
18,332
[9,984]
[9,984]
87,147
87,147
39,540
39,540
4,268
4,268
33,398
33,398
869,125
887,457
$
- $
87,147 $
39,540 $
4,268 $
33,423 $ 932,209
See independent auditor's report on the financial statements.
65
CITY OF SALINA, KANSAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
For the Year Ended December 31, 2003
Business Special
Improvement Neighborhood Parks & Special
District Park Recreation Alcohol
Revenues
Intergovernmental $ - $ - $ 141,496 $ 141,496
Charges for services 92,295
Licenses and permits 19,946
Investment revenue 98 1,413 1,571
Miscellaneous 5.735
Total Revenues 92,393 21,359 148,802 141,496
Expenditures
Current
Culture and recreation
Public health and sanitation 131,584
Planning and development 89,641
Capital outlay 128,224
Total Expenditures 89,641 128,224 131,584
Excess [deficiency] of revenues over
[under] expenditures 2,752 21,359 20,578 9,912
Fund balance, beginning of year 21 ,249 111,666 80,776 2,894
Prior period adjustment
Fund balance, beginning of year, restated 21,249 111,666 80,776 2,894
Fund balance, end of year $ 24,001 $ 133,025 $ 101,354 $ 12,806
Bicentennial HUD Community
Center Community APWA Development Heritage
Event Develooment Consortium Revolvino Commission
$ - $ - $ - $ - $
744,666 627
873 180,000 1,731 14
7,917
744,666 1,500 180,000 9,648 14
743,153
743,153
180,000
180,000
1,513
1,500
9,648
14
43,405
67,500
171,142
1,506
43,405
67,500
171,142
1,506
$
44,918 $
69,000 $
- $ 180,790 $
1,520
See independent auditor's report on the financial statements.
66
CITY OF SALINA, KANSAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
For the Year Ended December 31, 2003
Revenues
I ntergovern mental
Charges for services
Licenses and permits
Investment revenue
Miscellaneous
Total Revenues
Special
Fair CDBG HOME Law
HousinQ ED IV Enforcement
$ - $ - $ - $
31,558 110
2,658 31 ,909
34,216 31 ,909 110
Expenditures
Current
Culture and recreation
Public health and sanitation
Planning and development
Capital outlay
Total Expenditures
Excess [deficiency] of revenues over
[under] expenditures
118,356 29,262
118,356 29,262
[84,140] 2,647 110
226,800 [2,547] 11 ,469 12,060
[725]
226,800 [3,272] 11 ,469 12,060
$ 142,660 $ [625] $ 11 ,469 $ 12,170
Fund balance, beginning of year
Prior period adjustment
Fund balance, beginning of year, restated
Fund balance, end of year
Fair Large War
Housing Police DARE System Memorial
Partnership Grants Donations Interface Maintenance Totals
$ - $ 67,926 $ - $ - $ - $ 350,918
837,588
19,946
346 430 109 300 218,553
5,831 54,050
68,272 6,261 109 300 1,481,055
785 743,938
131,584
8,013 245,272
308,224
8,013 785 1,429,018
[8,013] 68,272 6,261 109 [485] 52,037
[1,971] 18,875 33,279 4,159 33,883 836,145
[725]
[1,971] 18,875 33,279 4,159 33,883 835,420
$ [9,984] $ 87,147 $ 39,540 $ 4,268 $ 33,398 $ 887,457
See independent auditor's report on the financial statements.
67
CITY OF SALINA, KANSAS
COMBINING BALANCE SHEET
NON MAJOR PERMANENT FUNDS
December 31, 2003
Citizenship Cemetery Mausoleum Tricentennial
ASSETS Trust Endowment Endowment Commission Total
Cash and investments $ - $ 280,334 $ 28,444 $ 4,723 $ 313,501
Interest receivable 1,511 153 25 1,689
Total assets $ - $ 281,845 $ 28,597 $ 4,748 $ 315,190
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable $ - $ - $ - $ - $
Total liabilities
Fund balances
Unreserved
Undesignated 281,845 28,597 4,748 315,190
Total liabilities and fund balances $ - $ 281,845 $ 28,597 $ 4,748 $ 315,190
See independent auditor's report on the financial statements.
68
CITY OF SALINA, KANSAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NON MAJOR PERMANENT FUNDS
For the Year Ended December 31,2003
Citizenship Cemetery Mausoleum Tricentennial
Trust Endowment Endowment Commission Total
Revenues
Charges for services $ - $ 6,365 $ - $ - $ 6,365
Investment revenue 2,607 259 43 2,909
Total revenues 8,972 259 43 9,274
Expenditures
Miscellaneous 19,864 34 19,898
Total expenditures 19,864 34 19,898
Net change in fund balance [19,864] 8,938 259 43 [10,624]
Fund balances - beginning of year 19,864 272,907 28,338 4,705 325,814
Fund balances - end of year $ - $ 281,845 $ 28,597 $ 4,748 $ 315,190
See independent auditor's report on the financial statements.
69
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CITY OF SALINA, KANSAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
BUSINESS IMPROVEMENT DISTRICT FUND
For the Year Ended December 31,2003
Interest income
General interest
Variance with
Final Budget
Budoeted Amounts Positive
Actual Orioinal Final fNeoativel
$ 83,673 $ 82,000 $ 89,900 $ [6,227]
138 138
83,811 82,000 89,900 [6,089]
Revenues
Charges for services
Community and Economic Development
Total revenues
Expenditures
Community Development
Business Improvement District
83,817
82,000
89,914
6,097
Total expenditures
83,817
82,000
89,914
6,097
Excess [deficiency] of revenues
over [under] expenditures
[6]
[14]
8
Unreserved fund balance, January 1
14
14
Unreserved fund balance, December 31
8 $
- $
- $
8
Reconciliation to GAAP
Accounts receivable
I nterest receivable
23,963
30
GAAP Fund Balance, December 31
$
24,001
See independent auditor's report on the financial statements.
70
CITY OF SALINA, KANSAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
NEIGHBORHOOD PARK FUND
For the Year Ended December 31, 2003
Interest income
General interest
Variance with
Final Budget
BudQeted Amounts Positive
Actual OriQinal Final fNeQativel
$ 19,946 $ 20,000 $ 20,000 $ [54]
2,555 2,000 2,000 555
22,501 22,000 22,000 501
Revenues
Charges for services
Public works
Total revenues
Expenditures
Cash Reserve
139,410
139,410
139,410
Total expenditures
139,410
139,410
139,410
Excess [deficiency] of revenues
over [under] expenditures
22,501 [117,410] [117,410] 139,911
109,811 117,410 117,410 [7,599]
Unreserved fund balance, January 1
Unreserved fund balance, December 31
132,312 $ - $ - $ 132,312
Reconciliation to GAAP
Interest receivable
713
GAAP Fund Balance, December 31
$ 133,025
See independent auditor's report on the financial statements.
71
CITY OF SALINA, KANSAS
STATEMENT 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, 2003
Interest income
General interest
Variance with
Final Budget
BudQeted Amounts Positive
Actual OriQinal Final fNeoativel
$ 141,496 $ 131,424 $ 131,424 $ 10,072
2,335 3,000 2,000 335
5,735 12,000 13,000 [7,265]
149,566 146,424 146,424 3,142
Revenues
Operating grants, restricted
Culture and recreation
Miscellaneous revenues
General miscellaneous revenues
Total revenues
Expenditures
Public works
Contingency
4,914
50,000
45,086
Capital Outlay
Capital outlay
115,479
100,000
80,000
[35,479]
Cash Reserve
115,238
85,238
85,238
Total expenditures
120,393 215,238 215,238 94,845
Excess [deficiency] of revenues
over [under] expenditures
29,173 [68,814] [68,814] 97,987
Unreserved fund balance, January 1
71,597 68,814 68,814 2,783
Unreserved fund balance, December 31
100,770 $ - $ - $ 100,770
Reconciliation to GAAP
Interest receivable
584
GAAP Fund Balance, December 31
$ 101,354
See independent auditor's report on the financial statements.
72
CITY OF SALINA, KANSAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
SPECIAL ALCOHOL FUND
For the Year Ended December 31, 2003
Interest income
General interest
Variance with
Final Budget
Budoeted Amounts Positive
Actual OriQinal Final fNeoativel
$ 141,496 $ 131,424 $ 131,424 $ 10,072
237 500 500 [263]
141,733 131,924 131,924 9,809
Revenues
Operating grants, restricted
Health and sanitation
Total revenues
Expenditures
Public Health and Sanitation
Special alcohol
131,424
131,924
131,924
500
Total expenditures
131,424
131,924
131,924
500
Excess [deficiency] of revenues
over [under] expenditures
10,309
10,309
Unreserved fund balance, January 1
2,320
2,320
Unreserved fund balance, December 31
12,629 $
- $
- $
12,629
Reconciliation to GAAP
Interest receivable
177
GAAP Fund Balance, December 31
$
12,806
See independent auditor's report on the financial statements.
73
CITY OF SALINA, KANSAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
FAIR HOUSING FUND
For the Year Ended December 31, 2003
Interest income
General interest
Variance with
Final Budget
Budoeted Amounts Positive
Actual Orioinal Final fNeoativel
$ 32,657 $ 65,000 $ 65,000 $ [32,343]
4,558 1,000 1,000 3,558
37,215 66,000 66,000 [28,785]
Revenues
Operating grants, restricted
Health and sanitation
Total revenues
Expenditures
Community Development
Human relations
118,356
131,683 131,683 13,327
Total expenditures
118,356
131,683 131,683 13,327
Excess [deficiency] of revenues
over [under] expenditures
[81,141]
[65,683] [65,683] [15,458]
Unreserved fund balance, January 1
223,032
65,683 65,683 157,349
Unreserved fund balance, December 31
141,891 $
- $ - $ 141,891
Reconciliation to GAAP
Interest receivable
769
GAAP Fund Balance, December 31
$ 142,660
See independent auditor's report on the financial statements.
74
CITY OF SALINA, KANSAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
DEBT SERVICE FUND
For the Year Ended December 31,2003
Variance with
Final Budget
BudQeted Amounts Positive
Actual Oriqinal Final fNeQativel
Revenues
Taxes
Real estate taxes $ 1,691,628 $ 1,697,265 $ 1,697,265 $ [5,637]
Delinquent taxes 40,555 40,000 40,000 555
Motor vehicle taxes 278,283 215,648 215,648 62,635
Total taxes 2,010,466 1,952,913 1,952,913 57,553
Charges for services
Special assessments 1,315,816 1,193,000 1,193,000 122,816
Interest income
General interest 44,974 60,000 60,000 [15,026]
Miscellaneous revenues
General miscellaneous revenues 342,224 342,224
Other financing sources
General sources 11,307 11,307
Total revenues 3,724,787 3,205,913 3,205,913 518,874
Expenditures
Debt Service
Principal 2,313,833 2,310,532 2,313,866 33
Interest and other charges 865,947 911,994 865,905 [42]
Cash Reserve 917,181 959,936 959,936
Total expenditures 3,179,780 4,139,707 4,139,707 959,927
Excess [deficiency] of revenues
over [under] expenditures 545,007 [933,794] [933,794] 1,478,801
Other financing sources [uses]
Transfer in 47,413 47,413
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses] 592,420 [933,794] [933,794] 1,526,214
Unreserved fund balance,
January 1 983,414 933,794 933,794 49,620
Unreserved fund balance,
December 31 1,575,834 $ - $ - $ 1,575,834
Reconciliation to GAAP
Interest Receivable 8,496
GAAP Fund Balance, December 31 $ 1,584,330
See independent auditor's report on the financial statements.
75
CITY OF SALINA, KANSAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN NET ASSETS - BUDGET AND ACTUAL (NON - GAAP BASIS)
SOLID WASTE DISPOSAL FUND
For the Year Ended December 31, 2003
Actual
Budoeted Amounts
OriQinal Final
Variance with
Final Budget
Positive
fNeoativel
Revenues
Charges for services
Health and sanitation
$ 2,284,520 $ 2,250,000 $ 2,250,000 $
34,520
Interest income
General interest
45,045
35,000
35,000
10,045
Interfund services provided
Health and sanitation
61,109
61 , 1 09
Miscellaneous revenues
General miscellaneous revenues
40,058
20,000
20,000
20,058
Total revenues
2,430,732
2,305,000
2,305,000
125,732
Expenditures
Public Health and Sanitation
Solid waste
Hazardous waste disposal
Total public health and sanitation
1,497,015 2,768,711 2,768,711 1,271,696
69,467 95,413 95,413 25,946
1,566,482 2,864,124 2,864,124 1,297,642
235,902 235,890 235,890 [12]
18,034 18,033 18,033 [1]
253,936 253,923 253,923 [13]
469,009 470,000 470,000 991
2,289,427 3,588,047 3,588,047 1,298,620
Debt Service
Principal
Interest
Total debt service
Capital Outlay
Capital outlay
Total expenditures
Excess [deficiency] of revenues
over [under] expenditures
141,305
[1,283,047]
[1,283,047J
1,424,352
Unreserved fund balances, January 1
1,853,431
1,283,047
1,283,047
570,384
Unreserved fund balances, December 31
$ 1,994,736 $
- $
- $ 1,994,736
See independent auditor's report on the financial statements.
76
CITY OF SALINA, KANSAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN NET ASSETS - BUDGET AND ACTUAL (NON - GAAP BASIS)
WATER AND SEWER FUND
For the Year Ended December 31,2003
Revenues
Charges for services
Water and wastewater
Interest income
General interest
Interfund services provided
General services
Water and wastewater
Total interfund services
Miscellaneous revenues
General miscellaneous revenues
Water and wastewater
Total miscellaneous revenues
Total revenues
Expenditures
Water and Wastewater
Water
Sewer
Total water and wastewater
Capital Outlay
Capital outlay
Total expenditures
Excess [deficiency] of revenues
over [underJ expenditures
Other financing sources [uses]
Transfers [out]
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [usesJ
Unreserved fund balances, January 1
Prior year cancelled encumbrances
Unreserved fund balances, December 31
Variance with
Final Budget
Budqeted Amounts Positive
Actual Oriqinal Final fNeqativel
$ 11,841,014 $ 11,650,650 $ 11,650,650 $ 190,364
155,420 200,000 200,000 [44,580]
24,962 25,000 25,000 [38]
10,652 10,652
35,614 25,000 25,000 10,614
1,592 1,592
276,944 260,000 260,000 16,944
278,536 260,000 260,000 18,536
12,310,584 12,135,650 12,135,650 174,934
6,351,752 11,143,116 11,143,116 4,791,364
2,657,093 2,543,010 2,543,010 [114,083]
9,008,845 13,686,126 13,686,126 4,677,281
1,561,508 1,275,000 1,275,000 [286,508]
10,570,353 14,961,126 14,961,126 4,390,773
1,740,231 [2,825,476J [2,825,476J 4,565,707
[1,649,620J [2,236,940] [2,236,940] 587,320
90,611 [5,062,416] [5,062,416J 5,153,027
6,285,711 5,062,416 5,062,416 1,223,295
78,401 78,401
$ 6,454,723 $ - $ - $ 6,454,723
See independent auditor's report on the financial statements.
77
CITY OF SALINA, KANSAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN NET ASSETS - BUDGET AND ACTUAL (NON - GAAP BASIS)
SANITATION FUND
For the Year Ended December 31, 2003
Actual
Budqeted Amounts
Oriqinal Final
Variance with
Final Budget
Positive
fNeqative 1
Revenues
Charges for services
Health and sanitation
$ 1,688,430 $ 1,694,350 $ 1,694,350 $
[5,920J
Interest income
General interest
11 ,447 12,000 12,000 [553]
28 28
65 65
93 93
1,699,970 1,706,350 1,706,350 [6,380]
Miscellaneous revenues
General miscellaneous revenues
Health and sanitation
Total miscellaneous revenues
Total revenues
Expenditures
Public Health and Sanitation
Sanitation
1,556,990
2,031,347
2,031,347
474,357
Capital Outlay
Capital outlay
248,319
127,550
127,550
[120,769]
Total expenditures
1,805,309
2,158,897
2,158,897
353,588
Excess [deficiency] of revenues
over [under] expenditures
[105,339J
[452,547]
[452,547]
347,208
Other financing sources [uses]
Transfers in
113,933
113,933
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]
8,594
[452,547]
[452,547]
461,141
Unreserved fund balance, January 1
486,020
452,547
452,547
33,473
Unreserved fund balances, December 31
$ 494,614 $
- $
- $ 494,614
See independent auditor's report on the financial statements.
78
CITY OF SALINA, KANSAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN NET ASSETS - BUDGET AND ACTUAL (NON - GAAP BASIS)
GOLF COURSE DIVISION FUND
For the Year Ended December 31, 2003
Variance with
Final Budget
Budoeted Amounts Positive
Actual OriQinal Final fNeoativel
Revenues
Charges for services
Culture and recreation $ 772,868 $ 867,100 $ 867,100 $ [94,232]
Operating grants, unrestricted
General interest 11,500 11 ,500 [11,500]
Interest income
General interest 2,769 4,000 4,000 [1,231]
Miscellaneous revenues
General miscellaneous revenues 4,526 4,526
Culture and recreation 33,323 6,000 6,000 27,323
Total miscellaneous revenues 37,849 6,000 6,000 31,849
Total revenues 813,486 888,600 888,600 [75,114]
Expenditures
Culture and Recreation
Golf course 771,887 969,087 969,087 197,200
Debt Service
Principal 21,546 21,526 21,526 [20]
Interest 3,934 3,929 3,929 [5]
Total debt service 25,480 25,455 25,455 [25]
Capital Outlay
Capital outlay 36,699 10,000 10,000 [26,699]
Total expenditures 834,066 1,004,542 1,004,542 170,476
Excess [deficiency] of revenues
over [under] expenditures [20,580] [115,942] [115,942] 95,362
Unreserved fund balances, January 1 132,865 133,940 133,940 [1,075]
Unreserved fund balances, December 31 $ 112,285 $ 17,998 $ 17,998 $ 94,287
See independent auditor's report on the financial statements.
79
CITY OF SALINA, KANSAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
RISK MANAGEMENT FUND
For the Year Ended December 31, 2003
Variance with
Final Budget
BudQeted Amounts Positive
Actual Oriqinal Final fNeqativel
Revenues
Interest income
General interest $ 1,555 $ 4,000 $ 4,000 $ [2,445]
Interfund services provided
General services 221,791 221,972 221,972 [181]
Miscellaneous revenues
General miscellaneous revenues 54,436 40,000 40,000 14,436
Total revenues 277,782 265,972 265,972 11,810
Expenditures
Other
Risk management 321 ,446 387,101 387,101 65,655
Capital Outlay
Capital outlay 1,247 1,500 1,500 253
Total expenditures 322,693 388,601 388,601 65,908
Excess [deficiency] of revenues
over [under] expenditures [44,911 ] [122,629] [122,629] 77,718
Fund balance, January 1 193,423 122,629 122,629 70,794
Unreserved fund balance, December 31 $ 148,512 $ $ $ 148,512
See independent auditor's report on the financial statements.
80
CITY OF SALINA, KANSAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
WORKERS' COMPENSATION FUND
For the Year Ended December 31, 2003
Interfund services provided
General services
Variance with
Final Budget
Budqeted Amounts Positive
Actual Oriqinal Final fNeqativel
$ 15,368 $ 40,000 $ 40,000 $ [24,632]
192,350 182,350 182,350 10,000
207,718 222,350 222,350 [14,632]
Revenues
Interest income
General interest
Total revenues
Expenditures
Other
Worker's compensation
236,018
1,047,053
1,047,053
811,035
Total expenditures
236,018
1,047,053
1,047,053
811,035
Excess [deficiency] of revenues
over [under] expenditures
[28,300]
[824,703]
[824,703]
796,403
Unreserved fund balance, January 1
719,784
824,703
824,703
[104,919]
Unreserved fund balance, December 31
$ 691,484 $
- $
- $ 691,484
See independent auditor's report on the financial statements.
81
CITY OF SALINA, KANSAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
HEALTH INSURANCE FUND
For the Year Ended December 31,2003
Actual
BudQeted Amounts
OriQinal Final
Variance with
Final Budget
Positive
fNeoativel
Revenues
Charges for services
General charges
$ 4,461,734 $ 3,609,564 $ 3,609,564 $ 852,170
Interest income
General interest
5,075
15,000
15,000
[9,925]
Miscellaneous revenues
General miscellaneous revenues
25,663
25,663
Total revenues
4,492,472
3,624,564
3,624,564
867,908
Expenditures
Other
Health insurance
4,649,255 4,602,577 4,602,577 [46,678]
4,649,255 4,602,577 4,602,577 [46,678]
[156,783] [978,013] [978,013] 821,230
396,031 978,013 978,013 [581,982]
$ 239,248 $ - $ - $ 239,248
Total expenditures
Excess [deficiency] of revenues
over [under] expenditures
Unreserved fund balance, January 1
Unreserved fund balance, December 31
See independent auditor's report on the financial statements.
82
CITY OF SALINA, KANSAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
CENTRAL GARAGE FUND
For the Year Ended December 31, 2003
Variance with
Final Budget
Budoeted Amounts Positive
Actual Orioinal Final fNeoativel
Revenues
Interest income
General interest $ 2,615 $ 1,500 $ 1,500 $ 1,115
Interfund services provided
General services 924,325 878,000 878,000 46,325
Miscellaneous revenues
General miscellaneous revenues 3,224 2,998 2,998 226
Total revenues 930,164 882,498 882,498 47,666
Expenditures
Other
Central garage 1,028,312 1,133,836 1,113,836 85,524
Capital Outlay
Capital outlay 32,974 16,450 36,450 3,476
Total expenditures 1,061,286 1,150,286 1,150,286 89,000
Excess [deficiency] of revenues
over [under] expenditures [131,122] [267,788] [267,788] 136,666
Other financing sources [uses]
Transfers in 80,000 80,000 80,000
Excess [deficiency] of revenues
and other financing sources over [under]
expenditures and other financing [uses] [51,122] [187,788] [187,788] 136,666
Unreserved fund balance, January 1 209,153 187,788 187,788 21,365
Unreserved fund balance, December 31 $ 158,031 $ - $ - $ 158,031
See independent auditor's report on the financial statements.
83
CITY OF SALINA, KANSAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
COMPUTER TECHNOLOGY FUND
For the Year Ended December 31,2003
Interest income
General interest
Variance with
Final Budget
Budoeted Amounts Positive
Actual OriQinal Final fNeoativel
$ 94,525 $ 232,225 $ 105,000 $ [10,475]
12,135 12,000 12,000 135
554,045 537,044 558,045 [4,000]
98,993 2,250 108,474 [9,481 ]
759,698 783,519 783,519 [23,821]
Revenues
Charges for services
General charges
Interfund services provided
General services
Miscellaneous revenues
General miscellaneous revenues
Total revenues
Expenditures
Other
Information services
Capital Outlay
Capital outlay
631,665 1,025,555 1,125,555 493,890
96,594 252,500 152,500 55,906
728,259 1,278,055 1,278,055 549,796
31,439 [494,536] [494,536] 525,975
734,062 494,536 494,536 239,526
$ 765,501 $ - $ - $ 765,501
Total expenditures
Excess [deficiency] of revenues
over [under] expenditures
Unreserved fund balance, January 1
Unreserved fund balance, December 31
See independent auditor's report on the financial statements.
84
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CITY OF SALINA, KANSAS
INTERNAL SERVICE FUNDS
Internal service funds are used to account for the financing of goods or services provided by one agency to other
departments or agencies of the government and to other governmental units on a cost reimbursement basis.
Risk management fund - To account for the accumulation and allocation of costs associated with risk management
activities and the purchase of various forms of insurance.
Workers' compensation reserve fund - To account for the costs of providing a partially self-insured workers'
compensation plan and for accumulating the necessary reserve amounts.
Health insurance fund - To account for the costs of providing a partially self-insured health insurance and for
accumulating the necessary reserve amounts.
Central garage fund - To account for the accumulation and allocation for costs associated with the City's centralized
vehicle repair shop.
Information services fund - To account for the accumulation and allocation of costs associated with electronic data
processing.
85
CITY OF SALINA, KANSAS
STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
December 31, 2003
Workers' Total
Risk Compensation Health Central Information Internal
ASSETS Management Reserve Insurance Garage Systems Service Funds
Current assets:
Cash and investments $ 149,100 $ 820,471 $ 239,323 $178,194 $ 825,317 $ 2,212,405
Interest receivable 803 4,424 1,290 961 4,450 11,928
Inventory and prepaid supplies 64,467 64,467
Total current assets 149.903 824.895 240.613 243.622 829.767 2.288.800
Fixed assets:
Fixed assets 139,441 442,878 582,319
Less: accumulated depreciation 71,393 329,338 400,731
Total fixed assets 68,048 113,540 181,588
Total assets $ 149,903 $ 824,895 $ 240,613 $ 311,670 $ 943,307 $ 2,470,388
Liabilities:
Current liabilities (payable from current assets):
Accounts payable $ 587 $ - $ 75 $ 20,162 $ 59,818 $ 80,642
Total current liabilities (payable from current assets) 587 75 20.162 59.818 80.642
Noncurrent liabilities:
Compensated absences payable 15,043 24,939 39,982
Accrued claims payable 247,459 374,346 621,805
Total noncurrent liabilities 247,459 374,346 15,043 24,939 661,787
Total liabilities 587 247,459 374,421 35,205 84,757 742,429
Net Assets
Invested in capital assets, net of related debt 68,048 113,540 181,588
Unrestricted 149,316 577,436 [133,808] 208,417 745,010 1,546,371
Total net assets $ 149,316 $ 577,436 $ [133,808] $ 276,465 $ 858,550 $ 1,727,959
See independent auditor's report on the financial statements.
86
CITY OF SALINA, KANSAS
INTERNAL SERVICE FUND
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET ASSETS
For the Year Ended December 31,2003
Workers' Total
Risk Compensation Health Central Information Internal
Management Reserve Insurance Garage Systems Service Funds
Operating revenues
Charges for services $ 221,791 $ 192,350 $ 4,461,734 $ 924,325 $ 648,570 $ 6,448,770
Reimbursements 15,261 3,224 98,793 117,278
Miscellaneous 54,436 10,400 201 65,037
Total operating revenues 276,227 192,350 4,487,395 927,549 747,564 6,631,085
Operating expenses
General government 342,882 338,513 4,577,113 1,031,275 705,722 6,995,505
Depreciation 9,443 85,255 94,698
Total operating expenses 342,882 338,513 4,577,113 1,040,718 790,977 7,090,203
Operating income [loss] [66,655] [146,163] [89,718] [113,169] [43,413] [459,118]
Other operating revenues [expenses]
Investment income 5,451 4,044 9,495
Transfers in 80,000 80,000
Total other operating revenues [expenses] 5,451 80 , 000 4,044 89,495
Change in net assets [66,655] [140,712] [89,718] [33,169] [39,369] [369,623]
Net assets, January 1 215,971 718,148 [44,090] 327,210 922,577 2,139,816
Restatement [17,576] [24,658] [42,234]
Net assets, January 1, restated 215,971 718,148 [44,090] 309,634 897,919 2,097,582
Net assets, December 31 $ 149,316 $ 577 ,436 $ [133,808] $ 276,465 $ 858,550 $ 1,727,959
See independent auditor's report on the financial statements.
87
CITY OF SALINA, KANSAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
For the Year Ended December 31,2003
Total
Workers' Internal
Risk Compensation Health Central Information Service
Management Reserve Insurance Garage Services Funds
Cash flows from operating activities
Cash received from customers and users $ 221,791 $ 294,845 $4,388,827 $ 924,325 $ 648,570 $6,478,358
Cash paid to employees and suppliers of goods or services [345,888] [338,513] [4,603,124] [1,076,515] [653,368] [7,017,408]
Other operating receipts 54.436 25,661 3,224 98,994 182,315
Net cash provided by [used in] operating activities [69,661] [43,668] [188,636] [148,966] 94,196 [356,735]
Cash flows from capital and related financing activities
Purchase of fixed assets [30,401 ] [23,225] [53,626]
Net cash [used in] capital and related financing activities [30,401] [23,225] [53,626]
Cash flows from investing activities
Interest received 2,845 15,368 5,842 3,667 12,134 39,856
Cash flows from noncapital financing activities
Transfers in 80,000 80,000
Net increase [decrease] in cash and cash equivalents [66,816] [28,300] [182,794] [95,700] 83,105 [290,505]
Cash and cash equivalents, January 1 215,916 848,771 422,117 273,894 742,212 2,502,910
Cash and cash equivalents, December 31 $ 149,100 $ 820,471 $ 239,323 $ 178,194 $ 825,317 $2,212,405
See independent auditor's report on the financial statements.
88
CITY OF SALINA, KANSAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2003
Risk
Management
Workers'
Compensation
Reserve
Health
Insurance
Central
Garage
Information
Services
Total
Internal
Service
Funds
Reconciliation of operating [loss] income to net cash
provided by [used in] operating activities
Operating income [loss]
$ [66,655] $ [146,163] $ [89,718] $ [113,169] $ [43,413] $ [459,118]
Adjustments to reconcile operating income [loss] to
net cash provided by [used in] operating activities
Depreciation expense
[Increase] decrease in inventory
Increase [decrease] in accounts payable
Increase [decrease] in accrued compensated absences
Increase [decrease] in claims payable
Net cash provided by [used in] operating activities
9,443 85,255 94,698
[1,931] [1,931]
[3,006] [26,011 ] [44,578] 51,667 [21,928]
1,269 687 1,956
102,495 [72,907] 29,588
$ [69,661] $ [43,668] $ [188,636] $ [148,966] $ 94,196 $ [356,735]
See independent auditor's report on the financial statements.
89
CITY OF SALINA, KANSAS
AGENCY FUNDS
Agency funds are used to account for assets held by the government as an agent for individuals, private
organizations, other governments and/or other funds.
Special assessment escrow agency fund - To account for property owners' prepayment on outstanding special
assessments.
Fire insurance proceeds agency fund - To account for insurance proceeds received for severely damaged buildings
The insurance proceeds, plus interest, are returned to the property owners when the buildings are repaired or
demolished.
PEGS access agency fund - To account for revenues collected on behalf of the community access television system
for public, educational and governmental programming.
Payroll clearing agency fund - To account for interfund payroll receivables and payables for all City funds.
Court bond and restitution agency fund - To account for bonds and restitution remitted to the court and awaiting
court orders for distribution.
Police investigation account agency fund - To account for monies held by the police department for use in
investigations.
Fire cam fund - To account for donations received and used for fire equipment.
90
CITY OF SALINA, KANSAS
COMBINING BALANCE SHEET
AGENCY FUNDS
December 31,2003
Special Fire Court Police
Assessment Insurance PEGS Payroll Bond and Investigation
Escrow Proceeds Access Clearino Restitution Account
ASSETS:
Cash and investments $ 114,220 $ 1,723 $ 1,686 $ 64,432 $ 36,793 $
Interest receivable 616 9 9
Total assets
$ 114,836 $ 1,732 $1,695 $64,432 $ 36,793 $
LIABILITIES:
Accounts payable
$ 114,836 $ 1,732 $ 1,695 $ 64,432 $ 36,793 $
Total liabilities
$ 114,836 $ 1,732 $ 1,695 $ 64,432 $ 36,793 $
See independent auditor's report on the financial statements.
91
Fire
Cam
Fund
Totals
2,593 $ 67 $221,514
634
2,593 ~ $222,148
2,593 ~ $222,148
2,593 L.E $222,148
CITY OF SALINA, KANSAS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
For the Year Ended December 31,2003
Balance Balance
December 31, December 31,
2002 Additions Deductions 2003
Cash and investments
Special Assessment Escrow $ 113,861 $ 50,143 $ 49,784 $ 114,220
Fire Insurance Proceeds 1,717 6 1,723
PEGS Access 1 ,444 202,629 202,387 1,686
Payroll Clearing 843,830 779,398 64,432
Court Bond and Restitution 33,643 3,150 36,793
Police Investigation Account 2,253 340 2,593
Fire Cam Fund 67 67
Interest receivable
Special Assessment Escrow 616 616
Fire Insurance Proceeds 29 20 9
PEGS Access 53 44 9
Total Assets $ 996,897 $ 256,884 $ 1,031,633 $ 222,148
Accounts payable
$ 996,897 $ 256,884 $ 1,031,633 $ 222,148
$ 996,897 $ 256,884 $ 1,031,633 $ 222,148
Total liabilities
See independent auditor's report on the financial statements.
92
GOVERNMENTAL AUDIT SECTION
LOWENTHAL SINGLETON WEBB & WILSON
PROFESSIONAL ASSOCIATION
David A. Lowenthal, CPA
Thomas E. Singleton, CPA
Patricia L. Webb, CPA
Thomas G. Wilson, CPA
Audrey M. Odermann, CPA
CERTIFIED PUBLIC ACCOUNTANTS
900 Massachusetts, Suite 301
Lawrence, Kansas 66044-2868
Phone: (785) 749-5050
Fax: (785) 749-5061
E-mail: lswwcpa@lswwcpa.com
Paul M. Borchardt, CPA
Grant A. Huddin, CPA
Mary A. LeGresley, CPA
Members of American Institute
and Kansas Society of
Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE AND ON INTERNAL CONTROL
OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH "GOVERNMENT AUDITING STANDARDS"
Mayor and City Commission
City of Salina, Kansas
We have audited the basic financial statements of City of Salina, Kansas as of and for the year ended December 31,
2003, and have issued our report thereon dated May 14, 2004. We conducted our audit 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.
Compliance
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 grants,
noncompliance with which could have a direct and material effect on the determination of financial statement
amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and,
accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance
that are required to be reported under "Government Auditing Standards".
Internal Control Over Financial Reportino
In planning and performing our audit, we considered the City's internal control over financial reporting in order to
determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to
provide assurance on the internal control over financial reporting. Our consideration of the internal control over
financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might
be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the
internal control components does not reduce to a relatively low level the risk that misstatements in amounts that
would be material in relation to the financial statements being audited may occur and not be detected within a timely
period by employees in the normal course of performing their assigned functions. We noted no matters involving the
internal control over financial reporting and its operation that we consider to be material weaknesses.
However, we noted certain other matters involving the internal control over financial reporting and its operation that
we have reported to management in a separate letter dated May 14, 2004.
This report is intended for the information of the City Commission, management, and federal awarding agencies and
pass-through entities and should not be used by anyone other than these specified parties.
d~/.k~1 ~~kL~
Professional Association
May 14, 2004
93
STATISTICAL SECTION
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City of Salina
General Government Revenues by Source (1) Table 2
Last Ten Fiscal Years
Fiscal Fees and Special
Year Taxes Interqovernmental Charqes Assesments Other Revenues Total
1994 $ 16,153,904 $ 3,305,815 $ 3,089,651 $ 868,202 $ 2,402,460 $ 25,820,032
1995 17,138,776 3,170,244 3,585,877 1,012,596 2,708,038 27,615,531
1996 17,557,494 3,342,888 3,160,771 1,191,772 2,859,223 28,112,148
1997 18,416,347 3,197,436 3,197,039 1,127,400 2,153,460 28,091,682
1998 19,364,939 3,208,793 5,057,608 1,050,242 1,951,707 30,633,289
1998 (2) 19,364,939 4,050,492 2,137,769 974,648 3,899,387 30,427,235
1999 21,314,633 4,383,281 2,068,329 1,086,557 4,257,563 33,110,363
2000 22,459,765 4,114,704 2,104,897 1,228,683 4,622,510 34,530,559
2001 22,282,630 3,916,482 2,107,409 1,320,324 5,001,469 34,628,314
2002 23,388,799 3,601,543 2,127,904 1,288,961 4,294,010 34,701,217
2003 (3) 24,174,138 2,731,239 6,145,703 1,315,816 974,664 35,341,560
(1) Includes Only General, Special Revenue, and Debt Service
Funds. Capital Projects and Fiduciary funds are excluded.
(2) Restated to 1999 Classification. Difference in total is due to restatement of interfund transfers
(3) Reflects reclassifications required as a result of reporting model changes. For example Court Fines and Licenses and Permits
shift from "Other Revenue" to "Fees and Charges"
2003 Revenue By Source
Special
Assesments
4%
Other Revenues
3%
Fees and Charges
17%
Taxes
68%
I ntergovern mental
8%
95
City of Salina
General Government Tax Revenues by Source (1) Table 3
LastTen Fiscal Years
Fiscal Transient
Year Property Taxes Sales Tax Franchise Tax Guest Tax Total
1994 $ 6,065,013 $ 7,769,917 $ 1,756,528 $ 562,446 $16,153,904
1995 6,502,855 8,302,428 1,739,323 594,170 17,138,776
1996 6,690,485 8,446,809 1,836,694 583,506 17,557,494
1997 6,945,943 8,948,067 1,929,622 592,715 18,416,347
1998 6,995,943 9,687,988 1,950,520 730,488 19,364,939
1999 7,656,282 10,991,973 1,920,067 746,311 21,314,633
2000 7,576,973 12,032,797 2,141,736 708,259 22,459,765
2001 7,079,205 12,010,742 2,463,599 729,084 22,282,630
2002 8,085,665 12,257,819 2,275,737 769,578 23,388,799
2003 8,802,558 12,026,714 2,524,906 819,960 24,174,138
Tax Revenues by Source
$-
Sales Tax
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
Year
2002
(1) Includes General, special revenue and Debt Service Funds
(2) Property Taxes include Real Estate, Motor Vehicle and Payments in Lieu of Taxes
96
City of Salina
Property Tax Levies and Collections Table 4
Last 10 Fiscal Years
Percent of Delinquent Ratio of Total
Fiscal CurrentTax Current Taxes Tax Total Tax Tax Collections
Year Total Tax Levy Collections Collected Collections Collections to Tax Levy
1994 $ 4,858,543 $ 4,673,374 96.2% $ 227,331 $ 4,900,705 100.9%
1995 5,230,834 5,192,453 99.3% 97,615 5,290,068 101.1%
1996 5,534,222 5,411,474 97.8% 107,250 5,518,724 99.7%
1997 5,772,414 5,689,316 98.6% 133,171 5,822,487 100.9%
1998 6,081,748 5,976,840 98.3% 114,028 6,090,868 100.1%
1999 6,416,832 6,269,408 97.7% 140,976 6,410,384 99.9%
2000 6,694,612 6,490,693 97.0% 105,801 6,596,494 98.5%
2001 7,020,875 6,831,220 97.3% 147,819 6,979,039 99.4%
2002 7,289,916 7,108,013 97.5% 174,050 7,282,063 99.9%
2003 7,640,249 7,417,427 97.1% 176,906 7,594,333 99.4%
Percent of Property Taxes Collected
102.0%
99.0%
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1995
1996
1997
1998
1999
2000
2001
2002
-1
2003
. Percent of Current Taxes Collected - ~ - Ratio of Total Tax Collections to Tax Levy
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City of Salina
Principal Taxpayers
2003
Taxpayer
Type of Business
Schwan's Sales
Western Resources
Warmack, Salina Partnership
Southwestern Bell
Wal-Mart Stores, Inc.
Salina Regional Health Center
Lowe's Home Center
Kansas Gas Service
Great Plains Manufacturing
Dillon's
Pizza Manufacturing
Electric and Gas
Retail Shopping Mall
Telephone Utility
Discount Retail Stores
Hospital and Medical Offices
Building Supply Center
Utility
Manufacturing
Supermarket
Combined Valuation of the Ten Largest Taxpayers
Percent of Total City Assessed Valuation (1)
(1) Assessed value includes amount attributed to Motor Vehicles
99
Table 6
2003 Assessed % of Total
Valuation Valuation
$ 7,383,290 1.97%
6,892,106 1.84%
5,922,724 1.58%
4,951,865 1.32%
4,066,871 1.08%
3,698,229 0.99%
3,038,352 0.81%
2,515,059 0.67%
2,066,176 0.55%
1,956,466 0.52%
42,491,138
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$1,600,000
$1,400,000
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$800,000
$600,000
$400,000
$200,000
Fiscal Year
1994 $
1995
1996
1997
1998
1999
2000
2001
2002
2003
City of Salina
Special Assesment Billings and Collections
Last Ten Fiscal Years
Special
Assessment
Billings
697,015 $
919,364
1,139,672
985,885
983,383
1,122,307
1,266,760
1,298,468
1,284,864
1,385,056
Special Assessment
Collections
793,190
883,807
1,131,852
1,048,863
974,648
1,086,557
1,285,105
1,320,324
1,288,961
1,315,816
Ratio of Total Special
Assessments Collections to Total
Assessments Levied
1.14
0.96
0.99
1.06
0.99
0.97
1.01
1.02
1.00
0.95
Special Assessment Billings and Collections
$-
1994 1995 1996 1997 1998 1999 2000 2001
2002 2003
II Special Assessment Billings III Special Assessment Collections
1. Includes prepayments and delinquent collections.
101
Table 8
City of Salina
Computation of Legal Debt Margin
December 31,2003
Assessed Valuation (1)
Legal Debt Margin:
Debt Limit: 30% of Assessed Valuation (2)
Debt Applicable to Limitation:
Total Bonded Debt
Less: Revenue Bonds
Fund Balance Designated
for Debt Service
Total Debt Applicable to Limitation
Legal Debt Margin
Table 9
$ 375,273,018
112,581,905
38,971,678
6,215,000
1,584,330
31,172,348
81,409,557
1. Assessed valuation for the purposes of calculating the debt limitation includes the valuation attributable to
Motor Vehicles.
102
City of Salina
Ratio of Net General Obligation Bonded Debt
To Assessed Value and
Net General Obligation Bonded Debt Per Capita
Table 10
Fiscal
Year
Population
(1 )
Assessed Value
(2)
Less Debt
Gross Bonded Service Fund
Debt (3) (4)
Net Bonded
Debt
Ratio of Net
Bonded Debt to Net Bonded
Assessed Debt Per
Value Capita
1. 2000 population estimates are based on the 2000 federal census. Estimates for interim years are based on the 7/1 estimate
issued by Kansas State Division of the Budget.
2. Includes motor vehicles
3. Outstanding Debt amounts reftect portion of the outstanding debt for which general taxes will be required. This excludes revenue
bonds, GO obligations for which other revenue has been pledged, and obligations for which special assessments will be levied.
4. Amount available for repayment of General Obligation Bonds.
103
City of Salina
Ratio of Annual Debt Service Expenditures Table 11
For General Obligation Bonded Debt (1)
To Total General General Governmental Expenditures
Last Ten Fiscal Years
Total General Ratio of Debt Service to
Governmental General Governmental
Fiscal Year Principal Interest (2) Total Debt Service Expenditiures (3) Expenditures (3)
1994 $ 1,459,185 $ 368,250 $ 1,827,435 $ 24,028,391 7.61%
1995 1,530,037 386,943 1,916,980 27,815,221 6.89%
1996 1,229,378 305,808 1,535,186 28,176,844 5.45%
1997 2,549,984 443.461 2,993,445 30,066,773 9.96%
1998 1,563,421 320,010 1,883,431 29,167,170 6.46%
1999 1,044,187 361,209 1,405,396 31,419,821 4.47%
2000 1,277,861 447,025 1,724,886 34,833,093 4.95%
2001 1,406,725 498,772 1,905,497 34,964,295 5.45%
2002 1,365,330 564,355 1,929,685 35,348,137 5.46%
2003 1,356,352 507,613 1,863,965 34,684,235 5.37%
Ratio of General Debt Service to General Government Expenditures
12.00%
10.00% mu__________u____._m__u'uu.mumh.
8.00% ----- - - - - - u_ -- u _ _ UUh_.. _ _ U U _ _ _ _ _ u u_h__hu uu _ _.. u u ____, _ _ _ _ _ _. _ ___..huu___ _. _ _ _ _ _ U_h _u _ _ u _ _h._ UUUh.. U
6.00% umu
4.00% mum_mm______h__u_
~ - ~ - - - -.- - - - --. - - - - --____~_ _ _____ _~ ____ __ _ _~ N _ _ _ _ _ _ _____________ ___ _ _ _ _ _ _ _ __ ____ _ _ _ _ ______ ___ _____ _ ___
2.00% _h_ _h _ -- _ -- ---- _ _ _ _ h "hUU_" _ __ ... _ __ ___.. _ __ _ _ _ _. _ _ _ _. _ .___h_ _ u _ _ __ __ ,._ _ _ _.."___ U.U..h. U _ __
0.00%
1994
1995
1996
1997
1998
1999
2000
2001
2002
(1) Excludes special assessment debt with government commitment.
(2) Excludes bond issuance and other costs.
(3) Includes general, special revenue, and debt service funds.
104
City of Salina
Computation of Direct and Overlapping Bonded Debt
General Obligation Bonds
December 31, 2003
Table 12
Jurrisdiction
Net General
Obligation
Bonded Debt
Outstanding
Percentage Amount
Applicable to City Applicable to the
of Salina City of Salina
Direct:
City of Salina
$ 13,918,380
100% $ 13,918,380
Overlapping:
Salina Airport Authority
Saline County
USD 305
Total Overlapping Debt
6,625,000
1,080,000
87,565,000
95,270,000
100%
76%
100%
6,625,000
818,748
87,565,000
95,008,748
Total Direct and Overlapping Debt
109,188,380 108,927,128
Per Capita Direct and Overlapping debt
$ 2,370
USD 305
80%
Overlapping Debt, City of Salina
City of Salina
13%
Salina Airport
Authority
6%
Saline County
1%
105
City of Salina
Revenue Bond Coverage
Water and Sewer Fund
Last Ten Fiscal Years
Table 13
Debt Service Requirements
Net Hevenue
Fiscal Operatinq Operatinq Available for Debt
Year Revenues (1) Expenses(2) Service Principal Interest Total Coveraqe
1994 $ 9,402,506 $ 5,266,865 $ 4,135,641 $ 805,000 $ 1,614,122 $ 2,419,122 1.71
1995 9,993,020 5,879,776 4,113,244 880,000 1,588,797 2,468,797 1.67
1996 10,506,646 7,147,082 3,359,564 955,000 1,527,953 2,482,953 1.35
1997 10,442,409 6,714,541 3,727,868 1,015,000 1,483,493 2,498,493 1.49
1998 11,495,756 6,836,006 4,659,750 660,000 924,598 1,584,598 2.94
1999 10,753,843 7,399,094 3,354,749 700,000 876,793 1,576,793 2.13
2000 11,709,375 7,406,546 4,302,829 735,000 831,293 1,566,293 2.75
2001 11,886,131 8,461,367 3,424,764 835,000 688,515 1,523,515 2.25
2002 13,435,656 9,167,908 4,267,748 90,000 322,754 412,754 10.34
2003 12,216,580 10,682,725 1,533,855 575,000 234,018 809,018 1.90
(1) Excludes interest income
(2) Excludes Depreciation
(3) Coverage for 2002 appears to be excessive because of refinancing activity and very limited principal and interest payments.
106
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City of Salina Table 14
Property Value and Construction
Last Ten Fiscal Years
Value of
Total Property Value Permits Total Value of Permits Commercial Single Family
Fiscal Year (Thousands) Issued Issued Permits Home Permits
1994 $ 1,314,831 694 $ 38,667,261 NA NA
1995 1,482,502 759 34,156,955 NA 122
1996 1,551,794 832 55,369,816 NA 105
1997 1,716,987 725 41,528,712 $ 24,604,611 87
1998 1,850,244 757 42,830,543 22,162,767 80
1999 1,953,642 772 41,431,443 11,225,834 82
2000 2,096,803 771 99,462,211 75,141,289 88
2001 2,182,563 679 74,250,045 53,696,870 84
2002 2,296,901 776 62,416,514 47,809,924 74
2003 2,368,265 678 46,213,139 19,407,078 91
Number and Value of Building Permits Issued
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
I c:::J Permits Issued -+- Total Value of Permits Issued I
107
121,000,000
101,000,000
81,000,000
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41,000,000
21,000,000
1,000,000
Fiscal Year
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
50,000
Q)45,000
~
o
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,840,000
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25,000
Population (1)
43,304
43,304
44,167
44,510
44,176
44,022
45,679
45,629
45,729
45,969
City of Salina
Demographic Analysis
Last 10 Fiscal Years
Per Capita
Personal Income
Saline County (2)
$ 22,213
21,944
23,154
24,423
25,470
25,856
27,787
27,164
27,726
NA
Median Age (3)
33.5
33.5
33.5
33.5
33.5
33.5
36.1
36.1
36.1
36.1
School Enrolllment
(4)
Unemployment
Rate (5)
4.6%
4.4%
3.7%
3.6%
3.5%
3.6%
2.8%
3.5%
3.6%
4.0%
Population, Labor Force, and School Enrollment
.
. -----
7,243
7,229
7,316
7,307
7,257
7,347
7,418
7,329
7,289
7,204
.
.----
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Table 15
Labor Force,
Saline County
(5)
28,093
29,312
29,281
28,875
29,262
30,310
30,740
29,821
30,569
30,804
8,000
7,500
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7,000
6,500
· Population (1) --l:r-- Labor Force, Saline County (5) - .. - School Enrolllment (4~
1994 1995 1996 1997 1998 1999 2000 2001 2002
Data Sources:
1) 2000 Population estimates are based on the 2000 Census. Population in intervening years is based on the Kansas Division of
the Budget 7/1 estimate
(2) U.S. Department of Commerce, Bureau of Economic Analysis.
(3) Salina Chamber of Commerce. 2000 is the 2000 Census.
(4) U.S.D. 305, Full Time Equivelancy
(5) Kansas Department of Human Resources
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